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Harmonic Patterns

How To Use Time Frame Combination For Swing Trading OANDA:NZDUSD OANDA:EURUSD Hello Traders, This video will show you how to use time frames and combine them for swing trading from a higher time frame to a lower time frame. I use recent NZDUSD and EURUSD move to frame swing trade opportunities from a higher time frame to a lower time frame. I hope this video helps you. Don't forget to give me a like and a follow for future updates. If there is anything you want me to cover, drop a comment on it.
Education
by Elijahenoch7
Target reached! Crude Oil ReviewPrice bounced strongly above the 67.31 support level towards our take profit target - but how did we do it? Join Desmond in this analysis review where he covers the reason why this setup worked nicely. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:USOILEducation
by FXCM
Target Reached! XAGUSD ReviewPrice reversed strongly from our resistance level to the support level at 22.20. But how did it happen? Join Desmond in today's analysis review to have a quick recap on the elements that led to this strong reversal. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:XAGUSDEducation
by FXCM
Target Reached! EURAUD ReviewPrice bounced perfectly from our confluence support level and reached our target. But how did it happen? Join Desmond as he reviews how we managed to forecast the reversal with such a high degree of accuracy. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
Rising wedgeA rising wedge in an up trend is usually considered a reversal pattern. This pattern is at the end of a bullish wave, by creating close price tops, shows us that the supply has intensified and there is a possibility of a trend change. Of course, nothing is certain and if the buyers are more willing and strong, this pattern may be broken in the direction of the market rise. A rising wedge in the middle of a downtrend, is considered a corrective move and is known as a continuing pattern. For example, take a look at the above chart of Ethereum on the weekly time frame
Education
by Dealerify_HUNTER
Target reached! GBPUSD ReviewPrice bounced off the 1.2683 support we identified and rose nicely to our take profit target at the 1.2832 level. In this review, we touch on why we used the 1.2832 level and not the swing high at 1.2850 - a lot of this is down to trade management and take profit placement. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
Target Reached! USDCHF ReviewPrice reversed beautifully from the sell entry level we forecasted at 0.8988 and has reached the take profit target of 0.8908. The important lesson here is to place your take profit before a key level (vs right at the key level). As you can see in this video, price touched the TP level and took off in the other direction - just missing this crucial bit of information would have been potentially costly. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
What is the EMA? How to use EMA most effectively!What is EMA? EMA or Exponential Moving Average (EMA) – An exponential moving average (EMA) is a type of moving average (MA) that is based on a weighted exponential formula that is more responsive to changes recent prices, compared to a simple moving average (SMA) that only applies equal weight to all periods, helping the EMA to smooth the price line more than the SMA. What signals does the EMA provide to traders? Moving averages offer a significant benefit by offering clear insight into price trends. In other words, the Exponential Moving Average (EMA) cannot exceed or remain above the price line unless the price is increasing. Similarly, it cannot be below the price line if the price is not actually decreasing. This is crucial for traders as it provides a distinct and reliable indication of the price trend, avoiding any ambiguity. The trend is essential in helping traders identify entry points. The EMA will become a dynamic resistance, because it moves in the direction of the price, which means where the price goes, the EMA will follow. Become dynamic support and resistance levels (these resistance levels can be used to compare the trendline, support and static resistance lines). From here will look for entry points, stop loss and take profit points. Identify price trends. Which EMA should be used most appropriately? EMA 9 or EMA 10: This number represents a two-week period of trading, making EMA9/EMA10 commonly used for short-term transactions. EMA 34/EMA 89 are used to align with the primary waves as per the Elliott wave theory. EMA 20, EMA 50, EMA 200 are closely associated with trading sessions. Over the course of a year, we can typically trade for around 200 days, accounting for holidays and breaks. EMA50 represents the medium term, corresponding to the four seasons in a year, with each season having approximately 50 trading sessions. Similarly, EMA 20 represents the month. Some traders also utilize the 250 EMA in addition to the 200 EMA, believing that 250 represents the number of trading days in a year. EMA100 is a commonly chosen EMA due to its round number value. Round numbers are often seen as psychological barriers in trading. Compare trendline with EMA: As mentioned earlier, EMA is another way to identify trends, just like the trendline. To better understand this concept, the trendline can be seen as a fixed resistance. Once you draw a trendline, it will act as a reference point for the price. On the other hand, EMA is a dynamic resistance. It moves along with the price line. Unlike the trendline, EMA closely follows the price line because it is calculated based on the price itself. This makes EMA more accurate in showing the trend. It can clearly indicate whether the price is above or below the EMA. Some notes with EMA: - When the price surpasses or falls below the EMA, but then retreats below it again, it indicates a strong downtrend or uptrend. - If the price strays too far from the EMA, it is advisable to wait for it to correct itself and return to the EMA before considering any trading actions. - Fast EMAs or short period EMAs are more sensitive to price movements compared to slow EMAs, but they are also more prone to breakdowns. This can be advantageous as it allows for early trend identification compared to the SMA. However, the EMA is likely to experience more frequent short-term fluctuations compared to the corresponding SMA. - EMAs act as dynamic resistance levels that consistently track the price line. - The EMA is not primarily used for pinpointing exact tops or bottoms. Instead, it assists traders in aligning their trades with the prevailing trend. - The EMA always has a delay, making the SMA more useful in sideways markets, while the EMA is more effective in clearly trending markets. Thank you @TradingView !
TVC:GOLDEducation
by Sphyn-Trader
19
Educational: Quick, What are Fractals?You've probably heard before "The markets are fractal" and you probably was not sure what that meant What is a fractal? Fractals are complex geometric patterns that exhibit self-similarity at different scales. In other words, they are intricate shapes that contain smaller copies of themselves, regardless of the level of magnification. Fractal in financial markets are often mistaken for Williams fractal indicator. They are not the same . Fractals have applications in various fields, including mathematics, physics, computer graphics, and art. They have also been used to model and study complex natural phenomena, such as the branching patterns of trees, the distribution of galaxies, the structure of coastlines, and even the behavior of financial markets.Fractals are utilized in financial markets to illustrate the notion that patterns observed in the market transcend timeframes and remain consistent. In essence, the behavior exhibited on a 1-minute chart is also on a daily chart. Below is a good example of a fractal pattern at different scales. Lets bring this back to the financial markets. Without cheating. I want you to go ahead and try to guess which of these charts is a daily chart. Have your answer ? Okay good. Well as it turns out they are all the same chart at different scales. They are all actually a 1Hr chart of US30. See image below. Once I removed the scale and price there was no way for you to tell what chart or timeframe you were viewing. In fact I could have provided you with any data plotted as a candlestick and you would not know what data it is. Because the same patterns exist on all timeframes regardless of scale. So the next time someone says. The daily timeframe is more smooth and less choppy, understand that there is "some" truth to that but only in the sense of the daily timeframe is less prone to anomalies such as news events that might cause a sudden spike on the chart but on a long enough timeframe that spike can also occur on the daily timeframe. Now the next time you hear someone say "The markets are fractal" you will understand. Note that this is a far more complex topic but this is just a quick summary
PEPPERSTONE:US30Education
by ChristopherDownie
WHY TRADERS LOSE MONEYhello traders, today we will talk about WHY TRADERS LOSE MONEY TVC:DXY TVC:DXY BIAS WHAT IT MEANS… HOW IT INFLUENCES TRADERS Availability People estimate the likelihood of an event based on how easily it can be recalled. Traders put too much emphasis on their most recent trades and let recent results interfere with their trading decisions. After a loss, traders often get scared or try to get back to break even. Both mental states lead to bad trading quickly. After a win, many traders get over-confident and trade loosely. You must be aware of how you react to recent results and trade with a high level of awareness. Dilution effect Irrelevant data weakens other more relevant data. Using too many tools and trading concepts to analyze price could weaken the importance of the core decision drivers. I wrote about redundant signals and how to combine the right tools here: click here Gambler’s fallacy People believe that probabilities have to even each other out in the short term. Traders misinterpret randomness and believe that after three losing trades, a winning trade is more likely. The probabilities don’t change based on past results. Even after 10 losses in a row, the next trade does not have a higher chance of being a winner. Anchoring Overestimating the importance of the first available piece of information. Upon entering a trade, people set their whole chart and analysis in reference to their entry price and don’t see the whole picture objectively anymore. You must always have a plan BEFORE you enter a trade. Insensitivity to sample size Underestimating the variance for large and small sample sizes. Traders too often make assumptions about the accuracy of their system based on just a few trades, or even change parameters after only a few losers. A decent sample size is 30 – 50 trades. Do not alter anything about your approach before you have reached this number. And make sure that you follow the same rules to get an accurate picture of your trading within the sample size. Contagion heuristic Avoiding contact with objects people see as “contaminated” by previous contact. Traders avoid markets/instruments after having a large loss in that instrument, even when the loss was the fault of the trader. Hindsight We see things that have already occurred as more probable than they were before they took place. Looking back on your trades and fishing for explanations why the trade has failed, even though those signals weren’t obvious at the time. Do not change your indicator or setting after a loss to come up with explanations or excuses. Accept that losses are normal and always follow your plan. Hot-hand fallacy After a successful outcome on a random event, another success is more likely. Traders believe that once they are in a winning streak, things become easier and they can “feel” what the market is going to do next. I wrote about the hot-dand-fallacy in trading before: click here Peak–end rule People judge an event based on how they felt at the peak of the event. Traders look at a losing trade and only see how much they were in profit at the maximum, but don’t look at what went wrong afterwards. Do not change your reference point when in a trade and have a plan for your trade management and when to exit before entering a trade. Simulation heuristic People feel more regret if they miss an event only by a little. Price that missed your target only by a little bit, or a trade where you got stopped out just by a few points can be more painful than other trades. The outcome is out of your control and you cannot influence the price movements. The only thing you can do is manage your trade within your rules. Social proof If unsure what to do, people look for what other people did. Traders too often ask for advice from other traders when they are not sure what to do – even when other traders have a completely different trading strategy. You must take responsibility for your actions and results. And not rely on someone else. Framing People make decisions based on how it is presented; a gain is more valuable than a loss and a sure gain is more valuable than a probabilistic greater gain. Traders close profitable trades too early because they value current profits more than a potentially larger profit in the future. Cutting winners too soon is a huge problem. If this is an issue for you, reducing screen time can be helpful. Do not watch your trades tick by tick. Sunk cost We will invest in something just because we have already invested in it. before Adding to losing trades because you are already invested, even though no objective reason to add exists. You must define your stop loss in advance and then execute it without hesitation when it has been reached. Confirmation Only looking for information that confirms your beliefs, ideas and actions. Blanking out reasons and signals that don’t support your trade and just looking for confirmation. Especially when traders are in a loss, they only look for supportive information. Stay objective! Overconfidence People have a higher confidence than what their level of skill actually suggests. Traders misjudge their level of expertise and skill. Consistently losing traders don’t see that it’s their fault. Analyze your results objectively and get a trading journal to add even more accountability. Selective perception Forgetting those things that caused discomfort. Traders forget easily that their own mistakes and wrong trading decisions caused the majority of their losses. Do not blame the marjets, unfair circumnstances, your broker or any other outside event. You are the one who is responsible for making it work. It’s totally up to you and blaming others won’t help you make progress. Which bias is the one that is causing you the greatest troubles? What are you workin on right now? Let me know in the comments below and I will answer with tips and ideas on how to overcome your struggles. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by moneyhacksrwanda
3
How To Use The XABXD Pattern ?The term "xabcd pattern" is commonly used in technical analysis, specifically in the field of harmonic trading. It refers to a specific price pattern that is believed to have predictive value in identifying potential market reversals. The xabcd pattern is based on the Fibonacci retracement and extension levels, which are ratios derived from the Fibonacci sequence (a sequence of numbers in which each number is the sum of the two preceding ones). The pattern consists of four key points labeled as x, a, b, and c, forming specific ratios between these points. Here's a breakdown of each point in the pattern: 1. Point X: This is the starting point of the pattern and represents the beginning of a significant price move. 2. Point A: This marks the end of the initial price move and is usually a retracement of the XA move. Point A is typically at the 0.618 or 0.786 Fibonacci retracement level of the XA move. 3. Point B: This represents a retracement of the AB move. Point B is typically at the 0.382 or 0.618 Fibonacci retracement level of the AB move. 4. Point C: This marks the completion of the pattern. Point C is usually at the 1.272 or 1.618 Fibonacci extension of the AB move. The xabcd pattern suggests that once point C is reached, there is a higher probability of a market reversal in the opposite direction. Traders who use harmonic patterns like the xabcd pattern look for these formations on price charts and use them to anticipate potential trend reversals. They may enter trades based on the completion of the pattern, placing stop-loss orders below or above the pattern's points to manage risk. It's important to note that while harmonic patterns can be a part of a trader's toolkit, they are not foolproof and should be used in conjunction with other technical analysis tools and risk management strategies. It's recommended to study and practice extensively before relying solely on any specific pattern for trading decisions.
TVC:GOLDEducation
by pratikratadia
2
The ABCD Pattern: from A to DHello dear @TradingView community! Are you familiar with the ABCD pattern? The ABCD pattern is a highly effective tool utilized in trading to identify potential opportunities across diverse markets, including forex, stocks, cryptocurrencies, and futures. This pattern takes the form of a visual and geometric arrangement, characterized by three consecutive price swings or trends. When observed on a price chart, the ABCD pattern exhibits a striking resemblance to a lightning bolt or a distinctive zig-zag pattern. Importance of the ABCD Pattern The significance of the ABCD pattern lies in its ability to identify trading opportunities across different markets, timeframes, and market conditions. Whether the market is bullish, bearish, or range-bound, the ABCD pattern remains a reliable tool. By recognizing the completion of the pattern at point D, you can get a perspective trade entries. Furthermore, the ABCD pattern helps you determine the risk-to-reward ratio before initiating a trade. When multiple patterns converge within the same timeframe or across different timeframes, it strengthens the trade signal and increases the likelihood of a profitable outcome. Finding an ABCD Pattern The ABCD pattern has both a bullish and bearish version. Bullish patterns indicate higher probability opportunities to buy or go long, while bearish patterns suggest opportunities to sell or go short. To identify an ABCD pattern, it is essential to locate significant highs or lows on a price chart, represented by points A, B, C, and D. These points define the three consecutive price swings or legs of the pattern: the AB leg, the BC leg, and the CD leg. Trading is not an exact science, so traders often employ Fibonacci ratios to determine the relationship between the AB and CD legs in terms of both time and price. This approximation assists in locating the potential completion of the ABCD pattern. When patterns converge, it increases the probability of successful trades and enables you to make more accurate decisions regarding entries and exits. Types of ABCD Patterns There are three types of ABCD patterns, each having both a bullish and bearish version. To validate an ABCD pattern, specific criteria and characteristics must be met. Here are the characteristics of the bullish and bearish ABCD patterns: 📈 Bullish ABCD Pattern Characteristics (buy at point D): To effectively trade the bullish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant high and point B as a significant low. During the move from A to B, ensure that there are no highs above point A and no lows below point B. 2. After AB, then find BC: Point C should be lower than point A. In the move from B up to C, there should be no lows below point B and no highs above point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be lower than point B, indicating that the market has successfully achieved a new low. During the move from C down to D, there should be no highs above point C. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 📉 Bearish ABCD Pattern Characteristics (sell at point D): To effectively trade the bearish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant low and point B as a significant high. During the move from A up to B, ensure that there are no lows below point A and no highs above point B. 2. After AB, then find BC: Point C should be higher than point A. In the move from B down to C, there should be no highs above point B and no lows below point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be higher than point B, indicating that the market has successfully achieved a new high. During the move from C up to D, there should be no lows below point C and no highs above point D. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging bars/candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging bars/candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 💜 We would love to hear your feedback! Did you find the article on the ABCD pattern helpful? We strive to provide valuable and informative content for traders like you. Your feedback is important to us as it helps us improve our articles and better serve our readers. Please take a moment to share your thoughts and suggestions. Did the article cover the topic comprehensively? Were the explanations clear and easy to understand? Is there anything you would like us to add or elaborate on? We appreciate your time and input. Thank you for being a valued reader, and we look forward to hearing your feedback!
Education
by Vestinda
11
Samuel Benner Cycles, Stroke of Genuis?I'm not going to say much here, the chart speaks volumes in my opinion and is a stroke of genius. It begs the question, is it a self fulfilling prophecy? Possibly, but then you would have to find out, how many people know about this chart? My initial guess would be less than 1% of the population. The next question would be, who are they? are very wealthy? can they influence markets ? Honestly it doesn't matter, non of it does. The important thing is to take the information as it is and add it to your knowledge base. Note, He even signed the document in 1875. Kind regards WeAreSat0shi
TVC:DJIEducation
by WeAreSat0shi
3
Trading With the Three Drives PatternHarmonic patterns are known for their ability to provide effective trade setups. The Three Drives pattern is no different, and in this FXOpen article, we’ll delve into what this pattern is, how to identify it, and explore some of the best strategies for trading it. Introduction to the Three Drives The Three Drives pattern, sometimes referred to as the 3 Drives pattern, is a technical analysis tool used to identify potential reversal points in price movements. Traders look for three consecutive, symmetrical bullish or bearish legs, known as drives, with the third point marking the completion of the formation. The Three Drives is classified as a harmonic pattern and is closely related to the ABCD pattern. However, whereas the ABCD is made up of two legs and one pullback, the Three Drives consists of three legs and two pullbacks. As a result, it can be slightly trickier to find than the regular ABCD chart formation. Still, many traders consider it to have a higher degree of accuracy when predicting trend reversals, so it’s worth learning how to recognise this pattern. Identifying the Three Drives At its most basic, the pattern is identified by a series of higher highs and higher lows (bearish) or lower highs and lower lows (bullish). Specifically, it features three consecutive, symmetrical drives and two retracements. The drives are typically marked 1, 2, and 3, and the retracements are noted as A and B. Like other harmonic patterns, the Three Drives is confirmed using Fibonacci ratios. Thankfully, its rules are fairly simple. They are: - A retraces drive 1 by 61.8% or 78.6% - B retraces drive 2 by 61.8% or 78.6% - Drive 2 is a 127.2% to 161.8% extension of retracement A - Drive 3 is a 127.2% to 161.8% extension of retracement B Additionally, for best results, the pattern calls for the time each drive takes to form to be roughly the same. This also applies to the corrective phases. As with many harmonics, being flexible with the rules may help you distinguish more opportunities. Often, the Three Drives will work without perfect symmetry or the ratios lining up exactly. That’s not to say you shouldn’t aim for it to meet the rules as precisely as possible, but you can allow a bit of leeway if the overall formation looks correct. If you want to try your hand at finding the Three Drives, you can use the TickTrader platform. It’s free to use, and you’ll find built-in Three Drives and Fibonacci retracement tools that’ll help you plot the formation, just like we’ve used in the bearish Three Drives forex example above. Using the Three Drives Pattern for Trading Once you have identified the pattern, it’s time to put it into action. Note that these steps don’t just apply to forex trading; you can use them with whatever asset you prefer to trade. Entries You have two options for making an entry here: with a market order or a limit order. Some traders set a limit order at the 127.2% or 161.8% extension of B, where the third drive is expected to begin reversing. However, while this strategy may result in pinpoint entries, it also makes setting stop losses difficult, as you’re entering before the price has started to reverse. Waiting for price action confirmation might make setting stops much easier but can result in a worse risk/reward ratio. You could try waiting for signs of reversal with candlestick patterns like shooting stars, hammers, or engulfing candles before entering with a market order. Stop Loss If you choose to wait for confirmation, you can just set your stop above the highest point for a bearish Three Drives or beneath the lowest point for a bullish setup. If you’re using a limit order at 161.8%, you could try setting a stop beyond the 170% or 175% extension of B, which would invalidate the setup. You could do something similar if entering at 127.2%. Take Profits Your profit target here is quite flexible. You could choose to exit at a specific risk/reward ratio, like 1:2 or 1:3. Some look to take profit at the 61.8% retracement of the whole pattern, i.e., using the Fibonacci retracement tool from the start of the first drive and the end of the third drive. Alternatively, you could also use the Fibonacci extension tool to find the 127.2% or 161.8% extensions of the entire formation and set a profit target at either level. Bullish Example Here, we can see the roughly symmetrical 3 Drives pattern in the forex market that prompted a significant reversal. Following the massive engulfing candle, a market order would’ve gotten traders into a decent trade. Bearish Example In this example, we see a much larger pattern. While the final drive ended up slightly beyond the 161.8% area, the symmetry and almost perfect retracements to the 61.8% levels indicate that the pattern was likely to play out as expected. Traders could’ve entered at the projected 161.8% extension of the second retracement with a stop above the 170% level to secure an excellent risk/reward ratio. Your Next Steps By now, you should have an understanding of the Three Drives pattern and how to recognise it. If you’re wondering what to do next, you can try following these steps: 1. Practice identifying the formation on historical charts. You can use TickTrader to help with this. 2. Once you become more familiar with the pattern, start formulating a strategy. You could try backtesting a few setups to see how well your system works. 3. You can open an FXOpen account and test your strategy in live markets to refine your approach. 4. Read up on related topics, like harmonic patterns and Fibonacci retracements, to expand your knowledge. These four steps may put you in good stead when it comes to trading the Three Drives chart formation for real. Happy trading! 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
6
🌲 How Music Truly Influences Traders 🌲 Hello TradingView Family In This Post we will talk about Music Analysis in Trading, unraveling its potential to enhance trading experiences. Whether you're a Seasoned Trader in need of fresh Insights or a Trading Newbie aiming to fine-tune your game, we'll uncover how music can groove with your day trading activities. *Some Tips : Having a Good Diet is Really Helping you, Especially Eat some Banana & Broccoli 🍌 🥦 Before Trading. `LET'S GET STARTED ` ⛵🎶 FIRST SESSION : HARMONIC EMOTIONAL RESILIENCE. 🌲🌷🎶 Emotions and trading go hand in hand, but did you know that music can be a secret weapon? It's true! By harnessing the power of catchy tunes, traders can level up their emotional intelligence and keep their cool even when the market gets wild. Picture this: you're in the midst of a rollercoaster ride with your trades, and suddenly, a melody starts playing. It's a feel-good tune that instantly lifts your spirits and brings a smile to your face. That's the magic of music! By creating a playlist full of uplifting and calming tracks, you can create your personal sanctuary in the world of trading. When things get tough, and stress is at its peak, music becomes your anchor. Those soothing melodies gently wash away anxiety and stress, giving your mind the clarity it needs to make rational decisions. And if you need an extra boost, energizing and motivational tracks can pump up your mood, boost confidence, and ignite your inspiration. So, remember, in the world of trading, don't underestimate the Power of Music. Adding a little rhythm to your trading routine can work wonders! By grooving to some tunes, you can tap into your Inner Zen and keep their emotions in check. No more impulsive actions driven by fear or greed – just disciplined and strategic moves. And hey, music isn't just for the soul, it's for the portfolio too! Positive vibes make for a more enjoyable and fulfilling trading experience. So crank up the volume and let the melodies boost your Emotional Intelligence. Create an atmosphere of emotional well-being and Mental Resilience, leading to better trading performance. Who knew Trading could be so Harmonious? SECOND SESSION : UNDERSTANDING PSYCHOLOGY OF MUSIC 🧙🏻‍♂️ Music wields a profound sway over the human psychology. The selection of music exerts a tangible influence on a trader's mindset and emotional state,. Diverse genres like melodies, and rhythms evoke a plethora of emotional reactions. Consider, for instance, that lively and dynamic compositions can instill motivation and positivity, while tranquil and soothing Harmonies induce Relaxation and Sharpened Focus. By astutely handpicking music that aligns with the desired trading mindset, you can exploit the psychological impact of sound to your advantage. During periods of intense market volatility when Scalping or Day Trading, Calming Melodies can Reduce Anxiety. Conversely, during Backtesting in the Market Reading News, Reviewing Trades Invigorating Melodies can Invigorate Attentiveness and Reduce Boredom. Moreover, music has the ability to create a sense of familiarity and comfort. By consistently incorporating specific tracks or playlists into the trading routine, you can develop a conditioned response, signaling the brain that it is time to enter a focused and alert state for trading activities. Ambient Sounds or Instrumental Tracks can also be Beneficial in Creating an Immersive Trading Environment. Nature sounds, or Instrumental Music without lyrics can help drown out distractions and enhance concentration, enabling traders to maintain a deep level of focus on Market Analysis, Backtesting and Decision-making. Understanding the Psychology of Music allows you to use music as a tool to Manage Emotions, Reduce Stress, Boost Confidence, and Maintain a Disciplined Mindset Throughout your Trading Sessions. 🧙🏻‍♂️ FINAL SESSION : TOP DOWN IN MUSICAL ANALYSIS 🌲🌷🎶🎶🦜🌲 Just like conducting a Top-Down Analysis in trading, you can apply a similar approach to Musical Analysis. Intrigued? Let's groove on! Start your trading day by shaking off that sleepiness with an energizing track that kicks your motivation into high gear. Let the beats and melodies set a Positive tone, preparing your mind to tackle the challenges and opportunities that lie ahead. And hey, this strategy works for real-life challenges too! When it's time for Analysis and Backtesting, instrumental music or tracks with minimal lyrics are your go-to jams. These tunes help you concentrate and keep distractions at bay. They create the perfect soundtrack for diving deep into market data and making those well-informed decisions that can lead to success. But what about After Take Profit or Stop Loss, Reviewing Trades or Reading Some Data & News? Well, it's time to switch gears and select calming melodies or ambient sounds. These soothing tunes create a serene atmosphere that promotes clear thinking. Take a mindful approach to evaluating your trading performance, reducing stress, and gaining a fresh perspective on areas for improvement. Now, here's where the real fun begins: experimenting with different genres, styles, and rhythms! Classical music might strike a chord with some, while others groove to electronic or ambient tunes. Find the music that resonates with your trading style and preferences, enhancing your overall trading experience. So, embrace the beat, let the music be your guide, Remember, it's not just about numbers; it's about finding harmony in your trades and enjoying the process along the way. CONCLUSION 🧙🏻‍♂️🌲 By choosing the perfect tunes that sync with your trading style and personal taste, you can create a Zen Trading Atmosphere that boosts Focus, Concentration, and your overall Mood. The Rhythm and Genre of the Music can influence your energy Levels and establish a groove that complements your Trading activities. Don't be afraid to explore various music genres, styles, and rhythms to discover the melodic landscape that clicks with your trading goals. Adapt your musical selection to different phases of your trading routine, leveraging its power to cultivate the right mindset for each activity. Just remember, music is more than just background melody—it's the secret ingredient to your trading experience. And Wishyou Good and Profitable Weeks, I Love Writing this Post, If You Care Please Drop A Boost Button!! 🚀 Happy trading, and may the rhythm be with you!! See You - 🦜🌷🌲 Amazing Free to Use Image By : Indigo Blackwood
NASDAQ:MULNEducation
by Zestiria
1
Strategy 10: Reversal or Continuation ChannelReversal or continuation channel Channels are part of the pattern strategy but will be explained separately because of its specific requirements. • It begins a trend reversal if successful or becomes a continuation pattern if invalidated. E.g. link1, link2, link3 • Points ABCD make an harmonic pattern and point C is the minimum target for this and at point C the decision to successfully breakout of invalidate is made • Identify a channel first then, the ABCD harmonic pattern within it. • After point D is made, it must maintain its trendline to be successful or else it invalidates and goes lower.
BINANCE:SOLUSDEducation
by Trader408
How to Use a Crab Pattern for TradingAre you looking to add harmonic patterns to your trading arsenal? You can try the Crab pattern. In this article, we’ll explore the basics of Crab patterns, the key rules and requirements you should be aware of, and learn how to use this versatile tool across all markets. About the Crab Pattern The Crab pattern is a harmonic pattern used in technical analysis to identify potential reversal points in financial assets. While harmonic patterns date back decades to H. M. Gartley’s 1935 book, Profits in the Stock Market, the Crab is a relatively new innovation developed by Scott M. Carney in 2000. The Crab pattern is identified by specific Fibonacci ratios and consists of five distinct swings that are labelled as points X, A, B, C, and D. Point X is the starting position of the pattern, while point D is the potential reversal area. Notably, one of the hallmarks of the Crab is its long CD leg, as you’ll see shortly. Despite being one of the rarer harmonic patterns, many traders successfully apply the Crab to markets, like stocks, commodities, forex, and crypto*, to create high-risk/reward setups. Traders typically use the pattern in combination with other forms of technical analysis, like trendlines, chart patterns, and indicators, to confirm potential reversal points. How to Identify the Crab Pattern When Trading Like other harmonic patterns, the Crab requires that a specific set of rules are met before being considered valid to trade. The essential Crab pattern rules are: - X forms at a high or low. - A is formed at an opposing high or low, i.e., if X is a high, then A is a low, and vice versa. This movement is known as the XA leg. - The price retraces XA between 0.382 and 0.618 to produce B, creating the AB leg. - C retraces 0.382 to 0.886 of the AB leg and generates a BC leg. - D forms at a 1.618 extension of the XA leg, creating the final CD leg, and should ideally be a 2.24 to 3.618 extension of the BC leg. - Traders enter at D. Note that the ratios won’t always line up perfectly, so use your judgement to determine whether the pattern is valid. The ratios are simply guidelines to identify potential Crabs. It’s always best practice to use your discretion and consider other technical factors to decide whether you want to enter a trade based on your observations of the Crab formation. As you dive deeper into the world of harmonic patterns, you might notice that the Crab and Butterfly look very similar. The difference is in their internal retracements and, most importantly, the depth of D. The Butterfly requires that D be a 127% to 161.8% extension of XA, while the Crab will always be a 161.8% extension of XA. Trading the Crab Pattern Now that we understand how to identify Crabs, it’s time to start looking at how traders typically employ the Crab to enter trades. We’ll be using the TickTrader platform to demonstrate how you can use this pattern, and if you’d like to follow along, feel free to use it as well. There’s no need to sign up to FXOpen , and you’ll be able to start honing your Crab identification skills within seconds. You can also open an FXOpen account if you want to practise the Crab in live markets. The Bullish Crab Harmonic Pattern Strategy Let’s briefly cover the exact rules for a bullish Crab pattern in the forex, stock, commodities, and currency markets. They are: - XA Leg: The XA leg comprises a low X and a high A. - AB Leg: B is a bearish move that retraces between 0.382 and 0.618 of XA. - BC Leg: Another high, C, forms, which is a 0.382 to 0.886 retracement of AB. - CD Leg: A sharp move down creates D, which is a 1.618 extension of XA and, ideally, a 2.24 to 3.618 extension of BC. Traders will either set a limit order at a projected point D or wait for the price to show signs of reversal before entering with a market order. It can be tricky to know at which point the Crab becomes invalid if D continues past the 1.618 mark, so you may try setting a hard limit, like 1.7, at which point you consider it untradeable. Stop losses are typically placed just below D. Traders often use a set number of pips or a volatility-based indicator, like Average True Range or Bollinger Bands, to find an appropriate point. Alternatively, you could try using a set limit that would invalidate the entire pattern for your stop loss. Profit targets depend on how conservative your trading style is. Some traders prefer to begin banking profits once A is reached, while others start taking partials at B. For longer-term targets, a 1.618 extension of A and D is also commonly utilised. The Bearish Crab Harmonic Pattern Strategy The principles for a bearish Crab pattern are primarily the same, just flipped. As such: - XA Leg: The XA leg features a high X and low A. - AB Leg: A bullish move creates B, retracing 0.382 and 0.618 of XA. - BC Leg: The price falls to produce C, a 0.382 to 0.886 retracement of AB. - CD Leg: A spike upward generates D, which extends XA by 1.618 and should extend BC by 2.24 to 3.618. Similarly, traders enter at D, either with a limit order prior to the point forming or with a market order once bearish price action confirms the formation. Stop losses are usually placed just above D, although it’s up to you how you choose to determine the precise point. Just be wary of using a stop loss that’s too wide. Likewise, traders often begin taking profits at A or B, with the 1.618 extension of A and D offering a suitable target beyond the range of the pattern. What to Do Next All that’s left to do is to keep practising and training your eyes to recognise potential Crab patterns. You can follow these steps if you want to improve your ability to spot Crab formations while forex trading, and start incorporating them into your strategy: 1. Practise identifying Crabs on historical charts. 2. Try using software that automatically identifies and labels Crab patterns for you, so you can focus on analysing their formation. 3. Open an FXOpen account and try trading the patterns as you see them occurring. 4. Experiment with indicators and other forms of technical analysis to create a viable strategy. At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. 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
From A to D:How to Use the ABCD Pattern to Forecast Market MovesAre you familiar with the ABCD trading pattern? In this article, I will provide a comprehensive explanation of the ABCD trading pattern, including its characteristics, how to identify it, and how to use it in trading. So, sit back, relax, and enjoy the information provided in this article. The ABCD ( AB=CD ) pattern , It's a harmonic pattern that is easily recognizable on a price chart and is composed of four points. This pattern follows a specific sequence of market movements that traders can use to predict potential price swings in the future. The ABCD pattern can be applied in various market conditions, including both bullish and bearish markets, and can be used to speculate on the movement of different forex pairs by simultaneously selling one currency and buying another. However, it's important to keep in mind that the ABCD pattern should not be the sole basis for making trading decisions. It should be used as a tool to inform your decisions. The first step in opening a position using the ABCD pattern is to identify the pattern on a price chart. Multiday charts can provide insight into the behavior of forex markets over an extended period. You can use daily, hourly, or minute-by-minute charts to spot the pattern, but it's crucial to choose a time horizon that aligns with your goals. For instance, traders looking to hold positions for days or weeks may prefer daily charts instead of minute charts. Once you have selected the appropriate chart type, you can search for the ABCD pattern to identify bullish or bearish signals. Let's now take a closer look at how the AB=CD pattern forms and how to spot it: When identifying the ABCD pattern, traders focus on the legs or moves between points. The moves in the direction of the overall trend are denoted as AB and CD, while BC represents the retracement. Once you think you have identified an ABCD pattern on a price chart, the next step is to use Fibonacci ratios to validate it. This process can also help you pinpoint where the pattern may complete and where to consider opening your position. The "classic" ABCD pattern follows a specific sequence of market movements, with the following rules: In a "classic" ABCD pattern, the BC line should ideally be 61.8% or 78.6% of AB. To determine this, traders often use the Fibonacci retracement tool on the initial move from point A to point B. The BC line should end at either the 61.8% or 78.6% Fibonacci retracement level of AB. This helps confirm the validity of the ABCD pattern and gives an idea of where to potentially open a position. Once the BC leg of the pattern is complete, traders would typically look for the CD leg to reach the 127.2% or 161.8% extension of the BC leg. At this point, traders might consider entering a sell position if the pattern is bearish or a buy position if the pattern is bullish. The ABCD pattern extension occurs when the CD leg extends beyond the typical 127.2% and reaches 161.8%. This indicates that the price trend may continue in the same direction for a longer period, providing a potentially profitable trading opportunity for traders who have correctly identified the pattern. It's important to note that this extension is not always reliable and should be used in conjunction with other technical analysis tools to confirm the validity of the trade. Note: In strongly trending markets, the retracement (BC) may not reach the usual 61.8% or 78.6% of AB, but only 38.2% or 50%. It's important to adapt to market conditions and adjust your analysis accordingly. Moreover: During the move from A to B, the market should not exceed either A or B. During the move from B to C, the market should not exceed either B or C. During the move from C to D, the market should not exceed either C or D. For a bullish ABCD, point C must be lower than A, and D must be lower than B. For a bearish ABCD, point C must be higher than A, and D must be higher than B. To identify an ABCD pattern on your TradingView trading chart, follow these six steps: 1 ) Log in to your TradingView trading account and open a market chart. 2 ) Locate the AB line. Remember that this move should be completely contained within points A and B. 3 ) Locate the BC retracement. This should reach either the 61.8% or 78.6% level of the move from A to B. 4 ) Draw the CD line. Using the AB and BC lines, you should be able to predict where point D will fall. CD will generally be equivalent to AB and either 127.8% or 161.8% of BC in both price and time. 5 ) Keep an eye out for price gaps and wide-ranging bars in the CD leg. These can indicate that an extension is forming, implying that CD may be longer than AB. 6 ) Trade the possible retracement at point D. If you've identified a bearish ABCD pattern, consider opening a sell position. On the other hand, if you've found a bullish one, consider buying. And here are a couple of examples: I hope you found this guide on identifying the ABCD pattern useful. Let me know your thoughts in the comments section below, and don't forget to like and follow me if you found this guide helpful.
FX_IDC:XAUUSDEducation
by FOREXN1
44
"Tag, You're It: Understanding Forex Correlations in Simple TermForex correlation is like a game of tag. You know how when you're playing tag with your friends, you all run in different directions and some of you end up running together while others run in opposite directions? Well, in forex trading, currency pairs are like friends running around in different directions. Sometimes, two currency pairs move in the same direction, like when you and your friend are both running towards the same goal. This is called a positive correlation. Other times, two currency pairs move in opposite directions, like when you and your friend are running in opposite directions. This is called a negative correlation. Just like how you can tag your friend to switch positions, forex traders can use correlations to help them trade better. If two currency pairs have a positive correlation, a trader might buy one currency pair and sell the other, hoping to make a profit when both pairs go up. If two currency pairs have a negative correlation, a trader might buy one and sell the other to manage their risk. Remember, just like in tag, the way currency pairs move around can change depending on what's going on. So traders need to keep an eye on the news and be ready to change their strategies if needed.
Education
by glorias3972