Get started

Fvg_strategy

Fair Value Gaps vs Liquidity Voids in TradingFair Value Gaps vs Liquidity Voids in Trading Understanding fair value gaps and liquidity voids is essential for traders seeking to navigate the complexities of the financial markets. These concepts, deeply rooted in the Smart Money Concept (SMC), provide valuable insights into the dynamics of supply and demand, helping to identify potential price movements. In this article, we’ll delve into both ideas, exploring their characteristics, differences, and use in trading. Fair Value Gap (FVG) Meaning in Trading A fair value gap, also known as an imbalance or FVG, is a crucial idea in Smart Money Concept that sheds light on the dynamics of supply and demand for a particular asset. This phenomenon occurs when there is a significant disparity between the number of buy and sell orders for an asset. They occur across all asset types, from forex and commodities to stocks and crypto*. Essentially, a fair value gap in trading highlights a moment where the market consensus leans heavily towards either buying or selling but finds insufficient counter orders to match this enthusiasm. On a chart, this typically looks like a large candle that hasn’t yet been traded back through. Specifically, a fair value gap is a three-candle pattern; the middle candle, or second candle, features a strong move in a given direction and is the most important, while the first and third candles represent the boundaries of the pattern. Once the third candle closes, the fair value gap is formed. There should be a distance between the wicks of the first and third candles. Fair value gaps, like gaps in stocks, are often “filled” or traded back through at some point in the future. They represent areas of minimal resistance; there is little trading activity in these areas (compared to a horizontal range). Therefore, they are likely to be traded through with relative ease as price gravitates towards an area of support or resistance. Liquidity Void Meaning in Trading Liquidity voids in trading represent significant, abrupt price movements between two levels on a chart without the usual gradual trading activity in between. These are essentially larger and more substantial versions of fair value gaps, often encompassing multiple candles and FVGs, indicating a more pronounced imbalance between buy and sell orders. While FVGs occur frequently and reflect the day-to-day shifts in market sentiment, liquidity voids signal a rapid repricing of an asset, typically following significant market events (though not always). These voids are visual representations of moments when the market experiences a temporary absence of balance between buyers and sellers. This imbalance leads to a sharp move as the market seeks a new equilibrium price level. Such occurrences are not limited to specific times; they can happen after major news releases, during off-market hours, or following large institutional trades that significantly move the market with a single order. Liquidity voids are especially noteworthy on trading charts due to their appearance as particularly sharp moves. Though they appear across all timeframes, they’re most obvious following major news events when the market rapidly adjusts to new information, creating opportunities and challenges for traders navigating these shifts. Fair Value Gap vs Liquidity Void Fair value gaps and liquidity voids are effectively the same thing in practice; a fair value gap is simply a shorter-term liquidity void. Both indicate moments of significant imbalance between supply and demand. At the heart of both phenomena is a situation where one significantly outweighs the other, leading to strong market movements with minimal consolidation. The distinction between them often comes down to scale and timeframe. An FVG is typically identified by a specific three-candle pattern on a chart, signalling a discrete imbalance in order volume that prompts a quick price adjustment. These gaps reflect moments where the market sentiment strongly leans towards buying or selling yet lacks the opposite orders to maintain price stability. Liquidity voids, on the other hand, represent more pronounced movements in a given direction, often visible as substantial price jumps or drops. They can encompass multiple FVGs and extend over larger portions of the chart, showcasing a significant repricing of an asset. This distinction becomes particularly relevant when considering the timeframe of analysis; what appears as a series of FVGs on a lower timeframe can be interpreted as a liquidity void. On a higher timeframe, this liquidity void may appear as a singular fair value gap. This can be seen in the fair value gap example above. For traders, it’s more practical to realise that both FVGs and liquidity voids highlight a key market phenomenon: when a notable supply and demand imbalance occurs, it tends to create a vacuum that the market is likely to fill at some future point. Therefore, it’s important to recognise that both these types of imbalances can act as potential indicators of future price movement back towards these unfilled spaces. Trading Fair Value Gaps and Liquidity Voids Trading strategies that leverage fair value gaps and liquidity voids require a nuanced approach, as these concepts alone may not suffice for a robust trading strategy. However, when integrated with other aspects of the Smart Money Concept, such as order blocks and breaks of structure, they can contribute significantly to a comprehensive market analysis framework. Primarily, both FVGs and liquidity voids signal potential areas through which the price is likely to move rapidly to reach more significant zones of trading activity, such as order blocks or key levels of support and resistance. This insight suggests that initiating positions directly within an FVG or a liquidity void may not be effective due to the high likelihood of the price moving swiftly through these areas. Instead, traders might find it more strategic to wait for the price to reach areas where historical trading activity reflects stronger levels of buy or sell interest. Additionally, these market phenomena can inform the setting of price targets. If there is an FVG or liquidity void situated before a key area of interest, targeting the zone beyond the gap—where substantial trading activity is expected—could prove more effective than aiming for a point within the gap itself. It's also useful to note the relative significance of these features when they appear on the same timeframe. An FVG, being generally smaller and indicating a discrete order imbalance, is more likely to be filled before a liquidity void. This is because liquidity voids represent more considerable and pronounced market movements that can set market direction, marking them as less likely to be filled within a short space of time. Limitations of Fair Value Gaps and Liquidity Voids While fair value gap trading strategies and the analysis of liquidity voids offer insightful approaches to understanding market dynamics, they come with inherent limitations that traders need to consider: - Market Volatility: High volatility can unpredictably affect the filling of fair value gaps and liquidity voids, sometimes leading to incorrect analysis or false signals. - Timeframe Relativity: The significance and potential impact of gaps and voids can vary greatly across different timeframes, complicating analysis. - Incomplete Picture: Relying solely on these phenomena for trading decisions may result in an incomplete market analysis, as they do not account for all influencing factors. - Expectations: There is no guarantee that a FVG/void will be filled soon or at any point in the near future. The Bottom Line As we conclude, it's essential to remember that while fair value gap and liquidity void strategies provide valuable insights, they’re part of a broader spectrum of SMC tools available to traders. They’re best combined with other analytical techniques to form a comprehensive approach to trading. For those looking to delve deeper into trading strategies and enhance their market understanding, opening an FXOpen account can be a step toward accessing a wide array of resources and tools designed to support your trading journey. FAQs What Is a Fair Value Gap? A fair value gap occurs when there's a significant difference between the buy and sell orders for an asset, indicating an imbalance that can influence market prices. What Are Fair Value Gaps in Trading? In trading, fair value gaps reflect moments where market sentiment strongly favours either buying or selling, creating potential price movement opportunities. What Is the Difference Between a Fair Value Gap and a Liquidity Void? The main difference lies in their scale: a fair value gap is typically a smaller, discrete occurrence, while a liquidity void represents a larger, more pronounced price movement. How to Find Fair Value Gaps? Traders identify fair value gaps by analysing trading charts for areas where rapid price movements have occurred. A FVG consists of three candles, where the second one is the largest and the first and third serve as barriers. The idea of the FVG is that it leads to a potential retracement to fill the gap in the future. Is a Fair Value Gap the Same as an Imbalance? Yes, a fair value gap is the same as an imbalance in the Smart Money Concept. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Bitcoin’s Fair Value Gap Filling – Will Trendline Hold?Bitcoin is currently trading at its rising trendline support, which has been a key level for price action. On the 5D timeframe, BTC is respecting this strong upward trendline, indicating that buyers are stepping in to defend it. The previous resistance has now turned into support, adding confluence to this critical level. If BTC holds here, it could signal a bullish continuation, while a breakdown may trigger further downside. On the 1D timeframe, BTC is filling the Fair Value Gap (FVG), a liquidity zone where price typically seeks balance before making the next move. The Stoch RSI is in the oversold region, suggesting that a bounce could be on the horizon if demand picks up. Bullish Scenario : Holding above the trendline and reclaiming $81,500+ could trigger another leg up. Bearish Scenario : Losing the trendline support and breaking below $76,000 could lead to deeper correction. Key Levels to Watch: ✅ Bounce from $76,000-$78,000 → Potential bullish reversal ⚠️ Break below $76,000 → Risk of further downside
Long
by unichartz
2
Trading AUDUSD | Judas Swing Strategy 26/02/2025Last week the Judas Swing strategy had another action-packed week! As we took four trades across our selected currency pairs ( FX:GBPUSD , FX:AUDUSD , FX:EURUSD , OANDA:NZDUSD ), securing two wins and two losses, but still closing the week with a solid 2% gain. Given the strategy’s consistency over the past few weeks and months, we were eager to see how it would perform this week. On Monday, we waited for a setup on FX:EURUSD , but it fell just a few pipettes short of meeting all the criteria on our checklist. Since one key requirement wasn’t met, we stayed disciplined and skipped the trade. Now, here’s the important part—although that trade ended up being a winner, it didn’t bother us. Why? Because it didn’t align with our strategy, and we don’t risk our hard-earned money on trades that don’t check all the boxes. If you find yourself entering random trades, it’s time to create a checklist and stick to it. Discipline is what separates consistent traders from gamblers. Fast forward to Wednesday, we spotted a promising setup on FX:AUDUSD and we were eager to see how the session would unfold. After a sweep of liquidity at the lows, our focus immediately shifted to potential buying opportunities. Once we got a break of structure to the upside, all that was left was a retrace into the FVG before executing the trade. But patience was key—we reminded ourselves of Monday’s setup, where a similar scenario played out, yet the retrace never came. That trade had to be left behind, and we weren’t about to force an entry this time either Finally, price retraced into the FVG, and as soon as that candle closed, we were ready to execute the trade. We risk 1% per trade with the goal of securing a 2% return ensuring our wins outweigh our losses over time. With this strategy’s win rate hovering around 50%, sticking to our rules keeps us on the path to long-term profitability After entering the trade, we experienced a slight drawdown for less than five minutes, dipping just 2 pips nothing out of the ordinary. Our entry candle had closed in our intended direction, so we stayed patient. Soon after, price moved decisively in our favor, hitting our target in just 1 hour and 10 minutes. Our patience paid off this time with a solid 2% return on a trade where we had only risked 1%.
by CleoFinance
Trading EURUSD and AUDUSD | Judas Swing Strategy 18/02/2025The previous trading week wrapped up on a profitable note, delivering solid gains. We had the opportunity to take four trades on GBPUSD, NZDUSD, and AUDUSD, while EURUSD was the only pair that didn’t present any setups. Out of these four trades, three were winners, and only one resulted in a loss, allowing us to close the week with a 5% return. With such strong results, we were eager to see what opportunities this trading week would bring. By Tuesday, we had already taken two trades, and in this post, we’ll walk you through how they played out At 08:55 EST, both EURUSD and AUDUSD experienced a liquidity sweep, clearing out liquidity resting at the lows of their respective zones. This sweep on the lows directed our focus toward potential buying opportunities for the session on both pairs After patiently waiting, all our trade entry requirements aligned for both currency pairs, giving us the green light to execute. If you're wondering what our entry criteria are, here’s our checklist: 1. Break of structure to the upside 2. A Fair Value Gap (FVG) must be formed 3. Price must retrace into the FVG We don’t take trades unless all three conditions are met—no exceptions. Even if two out of three align, we stay on the sidelines. This disciplined approach helps us focus only on high-probability setups, increasing our edge in the market After execution, EURUSD wasted no time, hitting our take profit in just 1 hour and 25 minutes. AUDUSD had barely reached 1R within the same timeframe, signaling that this trade would require more patience. We were completely fine with this because we always risk only what we can afford to lose, which helps us stay detached from the outcome—win or lose. Plus, with EURUSD already securing a 2% gain, even a 1% loss on AUDUSD wouldn’t significantly impact our overall performance. Now, it’s just a matter of staying patient and letting the trade play out. This trade truly tested our patience. After a period of consolidation, it finally moved in our favor, allowing us to lock in a 2% gain after 15 hours and 15 minutes. Our total gain for the day reached 4%, making the session a solid success
by CleoFinance
Trading AUDUSD and NZDUSD | Judas Swing Strategy 12/02/2025Last week was a slow one for the Judas Swing strategy, as we didn’t get any trades on the four currency pairs we trade (GBPUSD, AUDUSD, EURUSD, NZDUSD). We stayed disciplined and didn’t deviate from our plan and avoided chasing trades that didn’t align with our checklist. To reach a point in your trading journey where you no longer chase trades is a significant milestone traders need to take note of. It helps prevent overtrading and unnecessary losses outside your system. After that slow week, we were eager to see what opportunities this week would bring. By Wednesday, two promising setups emerged on AUDUSD and NZDUSD. Now, let’s walk you through how these trades played out We usually get to our trading desk 5 minutes before our trading session begins. By 08:30 EST, our trading session had started, and we were on the lookout for potential opportunities. By 09:00 EST, we saw a sweep of liquidity at the lows of both NZDUSD and AUDUSD, this was our signal to start watching for potential buying setups. But before we take any buy positions we need wait for these conditions to be met: 1. Break of structure to the buy side 2. A Fair Value Gap (FVG) must be left behind 3. Price must retrace into the FVG Until all three conditions align, no trade is taken. Even if two out of three are met, we stay on the sidelines. Following this plan ensures we only take high-probability setups. At this stage, we were waiting for price to break structure to the upside our key confirmation to enter the trades. After waiting patiently, all the conditions on our checklist aligned, giving us the green light to execute while managing our risk. We risk 1% per trade with a target reward of 2%, meaning our total risk across both trades was 2%, with an expected return of 4%. Sticking to this structured approach ensures we maintain consistency and discipline in our trading These trades felt like the kind of sniper entries most traders dream of, minimal to no drawdown, with price moving directly to our targets. NZDUSD hit our target at 0.56292 in just 55 minutes, and AUDUSD mirrored this precision, reaching 0.62647 in the same timeframe. Given their strong correlation, it’s no surprise that both pairs moved in sync, reinforcing the power of well-planned setups. Our patience paid off, as these trades delivered a solid 4% return.
by CleoFinance
EURUSD DETAILED ANALYSISFollowing up on the guide that I posted on the weekly timeframe, internal price action on the 2H is bullish and we are currently at the OB which supports the first outcome. Price could continue down without giving us a bearish choch which is a 50/50 trade IMO. I would prefer to see a bearish choch first to increase its probability of holding. If we break above the strong week high I will try to go long with the 2H internal aiming for short term targets until I see a bearish choch to target the weekly low. The least probably but still possible outcome is for price to go above the December high if the 2H internal price action continues bullish. We also have some very important news releases with Services PMI and NFP being the major ones so be sure to manage your risk this week like every week.
Short
by Keyserfx
EURUSD DETAILED ANALYSISFollowing up on the guide that I posted on the weekly timeframe, internal price action on the 2H is bullish and we are currently at the OB which supports the first outcome. Price could continue down without giving us a bearish choch which is a 50/50 trade IMO. I would prefer to see a bearish choch first to increase its probability of holding. If we break above the strong week high I will try to go long with the 2H internal aiming for short term targets until I see a bearish choch to target the weekly low. There are several areas where we could see a choch but keep in mind they could just give a reaction (no choch) to then just continue going higher. The least probably but still possible outcome is for price to go above the December high if the 2H internal price action continues bullish. We also have some very important news releases with Services PMI and NFP being the major ones so be sure to manage your risk this week like every week.
Short
by Keyserfx
Silver Bullet Strategy EURUSD AUDUSD | 03/12/2024Trading the Silver Bullet strategy was tough yesterday. While many may only discuss the wins associated with their trading strategies, we encountered some losses yesterday. We entered two trades on two major currency pairs (EURUSD, AUDUSD) and aim to walk you through what happened during our trading session using the Silver Bullet strategy. At 10:00 EST, we began scouting for potential trading setups, as this marks the beginning of the Silver Bullet window, which concludes at 11:00 EST. By 10:20 EST, a Fair Value Gap (FVG) had formed on the EURUSD currency pair, presenting us with a sell bias and directing our attention to potential selling opportunities in EURUSD for the current trading session. Upon reviewing AUDUSD, we observed that an FVG had also formed at 10:20 EST, further indicating a sell bias for the currency pair. Once we establish a bias, we typically wait for a retracement into the formed FVG and only execute the trade after the candle that enters the FVG has closed. This step is crucial on our checklist because our backtesting revealed scenarios where the candle entering the FVG could proceed to hit the stop loss. This check helps us avoid entering trades under such conditions. Meanwhile, those who use limit orders may find themselves at a disadvantage in these situations. After a 20-minute wait following the formation of the FVG, we identified a trade on EURUSD that satisfied all the criteria on our checklist, and without hesitation, we proceeded to execute the trade. In this trade, since the high of candle number 1 from the entry price is approximately 7 pips, which does not satisfy the minimum stop loss requirement, we adjust it to a 10 pips stop loss, our minimum threshold. This rule ensures the trade has sufficient room to fluctuate. Immediately after executing the EURUSD trade, we identified another opportunity with AUDUSD that met all the criteria on our checklist. As it fulfilled the necessary requirements, we proceeded without hesitation to execute the trade. Please be aware that we risk 1% of our trading account on each trade. This level of risk is acceptable for us, as it's an amount we're comfortable with potentially losing, thus preventing emotional attachment to the trades. Ten minutes after initiating a sell position on EURUSD, our trade reached the stop loss, resulting in a 1% loss for the day. Consequently, we are left with our sell position on AUDUSD. After incurring a loss on EURUSD, we examined the AUDUSD position and found that this trade was also facing a drawdown. Did we experience any emotions upon realizing we might lose 2% that day? No, because we had already accepted the risk and were prepared for any outcome, whether it was a win or a loss. We were aware that the strategy's win rate was around 48%, indicating that losses are a part of the process. However, with a positive risk-to-reward ratio, our wins are expected to outweigh the losses. While awaiting the outcome of the AUDUSD trade, we noticed a setup on USDCAD where a Fair Value Gap (FVG) had formed. However, upon closer inspection, we realized it materialized exactly at 11:00 EST. This timing meant we couldn't engage in the trade, as our checklist mandates that trades must be executed before 11:00 EST, thus invalidating this setup. It's important to note our discipline here; despite the temptation, we didn't enter another trade out of revenge. Instead, we let it pass because it failed to meet certain criteria on our checklist. Discipline is a crucial quality of a successful trader and should never be underestimated. Upon reviewing the AUDUSD trade once more, we observed that it was no longer in a drawdown; instead, the trade had returned to our entry price. Consequently, there was no action required other than to allow the trade to proceed as it will After being in the trade for an hour and 10 minutes, the AUDUSD position hit the stop loss, putting us down 2% for the day. Indeed, we took two losses and it's likely we'll face more, as that is the nature of trading. It's normal to encounter multiple losses throughout your trading career, and it's crucial not to let them discourage you. Ensure that any strategy you use has been thoroughly backtested and has the data to support its long-term profitability. Also, make certain that your wins consistently exceed your losses, so that during a losing streak, just a few wins can compensate for the losses.
Education
by CleoFinance
1
GOLD HIGHT PROBABILITY SETUP!!According to Candle Range Theory (CRT), GOLD price swept the previous week high (CRT LOW), and this daily candle (today's candle (22/11/2024)) must close below the previous week high (CRT HIGH). If this daily candlestick closes below, the whole week next week (25/11/2024) gold will be selling (bearish). The target will be Previous week low (CRT LOW). Another thing, on weekly timeframe you will see gold has touched the bearish fair value gap (FVG) which was our internal range liquidity (IRL) but on Daily timeframe we still have to touch the bearish FVG with a rejection, then we can sell. “I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.” - Jim Rogers
OANDA:XAUUSDShort
by Siphesihle_Brian_Thusi
Trading EURUSD | Judas Swing Strategy 19/11/2024The Judas Swing strategy experienced a downturn for the first time in several weeks. After consistently delivering good returns, its streak ended last week. It was a slow week, yielding just one trade despite checking four currency pairs for potential trading setups. Unfortunately, the trade on EURUSD ended with a loss. So this week we wanted to see if things will turn around taking us into winning ways again with the strategy. On Tuesday, we observed a setup on EURUSD that piqued our interest. There was a sweep of liquidity at the zone's high at 1.05964, which shifted our focus to looking for selling opportunities during this trading session. Shortly after, a break of structure to the sell side occurred, indicating the need to wait for a retrace into the created FVG for an entry point. Our entry price was at 1.05894 SL: 1.05944 TP: 1.05694 Shortly after initiating the trade, we experienced a drawdown of approximately 6 pips. However, having set our stop loss (SL) at 10 pips, the trade had sufficient room to fluctuate. This underscores the crucial lesson of avoiding overly tight stop losses. To understand this better, one should dedicate time to backtesting, which assists in determining the optimal invalidation point for one's trading strategy. After 50 minutes in this trade, our patience was rewarded with a 2% gain on our trading account, from a trade where we risked only 1%
by CleoFinance
Trading USDCAD and AUDUSD | Silver Bullet Strategy 18/11/2024The Silver Bullet strategy, introduced by the Inner Circle Trader (ICT), aims to exploit certain market conditions within specific time frames. It involves strategically placing entries at the initial fair value gap that emerges within these periods. Yesterday, we executed trades using this strategy and we plan to show you how to incorporate this strategy into your trading toolkit. Firstly, it's crucial to understand what a Fair Value Gap (FVG) is and recognize the optimal time to look for these trades, which is between 10:00 and 11:00 EST. In order to get into the groove of trading we got to our trading desk at 09:55 and with the help of the sessions indicator we have the our trading zones mapped out for us. It should be noted that the initial candle marking the start of a trading session cannot constitute the Fair Value Gap (FVG), but it can serve as the first candle in the formation of an FVG. The trading session began, and we were scouting for setups to trade using the silver bullet strategy. After 15 minutes, we noticed a Fair Value Gap (FVG) had formed on the USDCAD pair, which drew our attention to it. This development indicates that we should be on the lookout for potential selling opportunities this trading session. We must wait for price to retrace back to the FVG and only execute a trade after the candle that enters the FVG has closed. This approach helps us avoid trades that enter the FVG and immediately hit our stop-loss. After 10-minutes we got a retracement into the Fair Value Gap (FVG), and given that price did not surpass the high of the first candle in the FVG formation, we can enter this trade. A 10 pip stop loss will be set to provide sufficient room for the trade to develop. After initiating the trade, our USDCAD position experienced minimal drawdown, and by 10:35, it was progressing favorably in our desired direction. Simultaneously, we were evaluating potential setups on other currency pairs and observed the formation of a Fair Value Gap (FVG) on AUDUSD. The next candle retraced into the Fair Value Gap (FVG) created on the AUDUSD pair, indicating that upon its close, we could execute a trade on this pair. The USDCAD position swiftly hit the take profit (TP) target. Within just 25 minutes, we completed this trade and shifted our focus to the other open position, AUDUSD. The AUDUSD position was also moving favorably in the direction we anticipated. After a period of waiting, we checked the position and found that it had reached the Take Profit (TP) after two hours. We succeeded in both trades we entered yesterday, risking 1% on each and aiming for a total gain of 4%. As observed, both trades experienced minimal drawdown, but this does not guarantee similar entries in the future. It is advisable to backtest this strategy and collect sufficient data to reinforce your confidence should you choose to trade using this strategy.
Education
by CleoFinance
HUM Long 11/10/24Asset Class: Stocks Income Type: Weekly Symbol: HUM Trade Type: Long Trends: Short Term: Up Long Term: Down Set-Up Parameters: Entry: 251.55 Stop: 227.76 TP1 321.05 (3:1) Trade idea: Daily DZ DBR at breakout, with a FVG above it at 1:1 RRR. Possible trend reversal at the daily DZ !!Be aware of pending Economic Reports. If price is within 20 pips of proximal value at time of major impact report, then Confirmation entry. Trade management: **When price hits 1:1 or T1, consider moving stop to entry in case of pullback. **Disclaimer**: The trading strategies, ideas, and information shared are for educational and informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any securities, currencies, or financial instruments. You should do your own research or consult with a licensed financial advisor before making any trading decisions. The author assumes no responsibility for any losses incurred from following these trading ideas.
NYSE:HUMLong
by MESHANL
1
ASPI LONG 11/10/2024Asset Class: Stocks Income Type: Daily Symbol: ASPI Trade Type: Long Trends: Short Term: Up Long Term: Up Set-Up Parameters: Entry: 2.82 Stop: 2.67 TP1 3.26 (3:1) Trade idea: 1h RBR at breakout, and within a FVG Uptrend continued !!Be aware of pending Economic Reports. If price is within 20 pips of proximal value at time of major impact report, then Confirmation entry. Trade management: **When price hits 1:1 or T1, consider moving stop to entry in case of pullback. **Disclaimer**: The trading strategies, ideas, and information shared are for educational and informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any securities, currencies, or financial instruments. You should do your own research or consult with a licensed financial advisor before making any trading decisions. The author assumes no responsibility for any losses incurred from following these trading ideas.
NASDAQ:ASPILong
by MESHANL
1
Alikze »» XAUUSD| Descending channel - 1H🔍 Technical analysis: Descending channel - 1H - It is moving in a descending channel in the 1H time frame. - It is shaded in the area of ​​the bottom of the downward channel that there is an OB in the liquidity area. - There is an FVG gap in the 30MIN time frame. - Therefore, it can have a correction by filling the gap up to the liquidity area. In the FVG area, in case of selling pressure and confirmation, it can have a return to the liquidity area and after that it will grow again up to the channel ceiling. »»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« OANDA:XAUUSD
OANDA:XAUUSDShort
by alikze
Alikze »» XAUUSD| Descending channel - 1H🔍 Technical analysis: Descending channel - 1H - It is moving in a descending channel in the 1H time frame. - It is shaded in the area of ​​the bottom of the downward channel that there is an OB in the liquidity area. - There is an FVG gap in the 30MIN time frame. - Therefore, it can have a correction by filling the gap up to the liquidity area. In the FVG area, in case of selling pressure and confirmation, it can have a return to the liquidity area and after that it will grow again up to the channel ceiling. »»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« OANDA:XAUUSD
OANDA:XAUUSDShort
by alikze
Trading EURUSD | Judas Swing Strategy 08/10/2024Traders become enthusiastic with the start of a new week, as it presents an opportunity to capitalize on the market's offerings, and we were hopeful of entering into profitable trades this week. We arrived at our desks at 08:25 EST, energized and prepared to trade. With five minutes remaining before our trading session begins, we prepared by delineating our trading zones. After defining our zones, we wait for price to sweep the high or low of the trading zone, as this will help us establish a bias for the trading session. After five minutes, a sweep of the trading zone's low occurred, indicating that we should look for buying opportunities during this trading session. Shortly after the low sweep, we observed a Break of Structure (BOS) to the buy side, leaving behind a Fair Value Gap (FVG). This means that all that remains before we can initiate a trade is to wait for the price to retrace back into the FVG. Once the next candle enters the Fair Value Gap (FVG), we can initiate the trade after the candle closes. We should verify that the entry price and low of the price leg that broke structure is at least 10 pips. If it's not, we'll set our stop loss at 10 pips and place our Take Profit (TP) at twice that amount. To minimize emotional attachment to trades, we risk only 1% of our trading account and target a return of twice that amount if the trade moves in our favor. After a short while, we reviewed our position and discovered we were in a drawdown, which was acceptable to us since we had only risked what we were prepared to lose. Subsequently, we received an alert indicating that our position had reached our stop loss. It's crucial to understand that incurring losses is a normal part of trading, particularly when you have data supporting your strategy's long-term profitability. The best course of action is to learn from these losses to improve your trading skills.
by CleoFinance
Trading EURUSD | Judas Swing Strategy 01/10/2024The Judas Swing strategy is straightforward and can be incorporated into any trader's toolkit. It is a well-tested approach that has shown effectiveness when its guidelines are adhered to. The strategy offers a favorable risk-reward ratio, risking 1% to potentially achieve a 2% return. In this post we intend to walk you through a recent trade we took on EURUSD using this strategy. We arrived at our trading desk at 08:25 EST, where we began by demarcating the zones for the trading period. This involves drawing vertical lines on the 00:00 and 08:30 EST candles. Following this, we mark the highs and lows within these zones, as they will serve as the liquidity pools for our trading session. The subsequent step on the checklist is to observe whether the high or the low of this trading zone is breached, as it will guide our bias for the trading session. Five minutes later, the low of the zone was breached, indicating that we should be on the lookout for potential buying opportunities during this session. Even with a bias for the session, we don't execute the trade blindly. The next step on our checklist is to wait for a break of structure to the buy side. This break of structure must leave a Fair Value Gap (FVG) behind. Once the structure is broken and the fair value gap (FVG) conditions are met, the next step is to wait for the price to retrace back into the FVG. A trade should only be entered after the candle that moves into the FVG has closed. After 10 minutes, price retraced and closed within the Fair Value Gap, fulfilling all the conditions on our entry checklist, allowing us to execute our trade. For stop placement, we use the lowest point of the price leg that broke the structure, provided it satisfies specific conditions. The minimum stop loss applied is 10 pips because a tight stop loss is not desirable, as it doesn't allow the trade sufficient room. In this instance, using the low would have resulted in a 4 pips stop; therefore, we extended it to a 10 pips stop loss with a 20 pips take profit and executed the trade. It's important to note that we risked only 1% of our trading account, an amount we're comfortable with losing, thereby eliminating any emotional attachment to this trade. Consequently, we are at peace with the outcome of this trade, be it a win or a loss. The result of this trade was a loss, which we accepted because we understand that the win rate for this strategy on EURUSD is around 50%, indicating that losses are inevitable with this strategy. However, as our winning trades typically outweigh our losses over time, this strategy should yield positive returns, making it unnecessary to focus on a single loss. Moreover, this post serves as a tutorial on how to trade using the Judas swing strategy and emphasizes that incurring losses is a normal aspect of trading.
by CleoFinance
Trading EURUSD | Judas Swing Strategy 05/09/2024At 08:25 EST, we were at our trading desk, eager for opportunities the trading session might offer. We began our session by marking out our trading zones. After an hour and a half, we observed a sweep of liquidity at the high of the zone, signaling potential selling opportunities in this trading session. Shortly after the liquidity sweep, there was a structural break to the downside, bolstering our confidence in the emerging setup. The next step was to wait for a retracement into the freshly formed Fair Value Gap (FVG). We have finally seen price trade back into the Fair Value Gap (FVG). After the closure of the candle that retraced into the FVG, we can execute our trade since all the criteria on our checklist for trade entry have been fulfilled. This trade experienced a drawdown for just five minutes before price began to move favorably in our anticipated direction. Patience is key as we await the trade's result. Whether it results in a win or a loss, we are prepared for either outcome since we have risked only 1% of our account, targeting a 2% return. Upon reviewing the position, we found it had returned to our entry point. At such a juncture, traders who have risked more than they can afford may panic. However, our comprehensive backtesting data on this strategy reinforces our confidence in the strategy, risk management approach and the importance of trusting the process. We were unlucky this time as the trade hit our stop loss and we lost 1% on this trade. The Judas Swing strategy is a simple strategy any trader can add to their arsenal. A trader simply needs to be present between 08:30 and 11:00 EST to look for trading setups. While not the "holy grail", this strategy boasts a win rate of approximately 50% and a risk-reward ratio of 1:2
Education
by CleoFinance
1