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Your ULTIMATE Guide For Time Frames in Trading If you just started trading, you are probably wondering what time frames to trade. In the today's post, I will reveal the difference between mainstream time frames like daily, 4h, 1h, 15m. Firstly, you should know that the selection of a time frame primarily depends on your goals in trading. If you are interested in swing trading strategies, of course, you should concentrate on higher time frames analysis while for scalping the main focus should be on lower time frames. Daily time frame shows a bigger picture. It can be applied for the analysis of a price action for the last weeks, months, and even years. It reveals the historical key levels that can be relevant for swing traders, day traders and scalpers. The patterns that are formed on a daily time frame may predict long-term movements. In the picture above, you can see how the daily time frame can show the price action for the last years, months and weeks. In contrast, hourly time frame reflects intraweek & intraday perspectives. The patterns and key levels that are spotted there, will be important for day traders and scalpers. The setups that are spotted on an hourly time frame, will be useful for predicting the intraday moves and occasionally the moves within a trading week. Take a look at the 2 charts above, the hourly time frame perfectly shows the market moves within a week and within a single day. 4H time frame is somewhere in between. For both swing trader and day trader, it may provide some useful confirmations. 4H t.f shows intraweek and week to week perspectives. Above, you can see how nicely 4H time frame shows the price action on EURUSD within a week and for the last several weeks. 15 minutes time frame is a scalping time frame. The setups and levels that are spotted there can be used to predict the market moves within hours or within a trading session. Check the charts above: 15 minutes time frame shows both the price action within a London session and the price action for the last couple of hours. It is also critical to mention, that lower is the time frame, lower is the accuracy of the patterns and lower is the strength of key levels that are identified there. It makes higher time frame analysis more simple and reliable. The thing is that higher is the time frame, more important it is for the market participants. While lower time frames can help to predict short term moves, higher time frames are aimed for predicting long-term trends.
OANDA:XAUUSDEducation
by VasilyTrader
12
Trading Lesson 👨‍🏫#2 - Understanding Consolidations in CryptoIn today's lesson I will explain the difference in consolidations. Some of you are new to the market and are probably wondering what's happening exactly when it's not moving in price and when it's moving down more than up but would later return to the last price it was. Well to best answer that question. It's called consolidation: It's a thing that happens in the crypto market where waves of prices fluctuate up and down calculating the sells and buys of the market until it meets a point of exit - after consolidating the actual price of the market you're in, and only has two places it can go. There are two types of consolidation. The first is where it does a price correction where you have rapid 📉drops or rapid 📈rises. An lastly is a repeated wave🏄🏼‍♀️ that can run in the same location for a few hours, sometimes days, give or take how many orders were made within the past few minutes - hours - days - weeks or months. Consider it like a balloon🎈 being blown into until it 💥pops!💥 Now this is where the problem begins - we don't know where it may go once it's done, could go up or down and when that balloon has popped it's rapidly going there. We could see the 0.00002000 - range within a few hours or just see 0.00000900 range within a few minutes, depending on the orders made for shib and the rest of the market as a whole, this can last for days, weeks depending on the amount of buys or sells. Also note these are when you get the same surprise jumps like we did in 2021. It started off from the 850's and jumped to the 0.00001300 within a day. However; right behind it, is a price correction waiting for a peak in the returns to meet its end. Once that happens it'll just fall or rise back to where the price actually suppose to be and starting the process all over again. You may not know it but there are all forms of consolidations on ever chart from 1 minute to 4 hours to 1 day to 12 months. You're in a consolidation right now and you don't even know it. Like the ones that occur on a weekly chart, This is what I call "a Seasonal Trend" the day, week, or month, is in a seasonal consolidation and is trending high or low. But note anything can stop a seasonal trend and disrupt the flow of it, but it will continue the process as long as the damage done was not to bad such as major crashes in a seasonal up trend due to outside interferences such as massive sell-offs, regardless it'll still attempt to rise back because it's in a wave that's trending up-word, if the wave was trending down then it would do way more damage than expected. But the worst thing to do in a consolidation day - is to sell while it's consolidating, the price may not go no higher or no lower, and if you sell while at a low price in a consolidation you will likely lost position and will have to wait for it to finish to get more shares let alone the original shares, that's if it drops, so best to hold while in a consolidation day, at least until closing. So I hope this answers anyone question as to why your crypto stock of choice is not moving anywhere, it may not move for hours or even days. you'll just have to wait for closing hour to see if it will pop - hopefully on a positive outcome. So Happy Trading Everyone
Education
by Grandmaster_Oz
Poker + Trading = Winning HandHello dear @TradingView community! Today let’s focus on how Poker game enhances trading excellence. In the sports, athletes often engage in cross-training to prevent injuries and boost performance. For instance, football players explore swimming and weight trainings, while runners embrace activities like hiking and cycling. But have you ever considered a form of mental cross-training that could significantly improve your trading skills? Enter the arena of virtual poker. Picture this: Poker and trading, both sedentary pursuits where your mind takes center stage. In the same way athletes focus on honing specific muscle groups, traders must nurture their mental agility. In this realm, poker emerges as potent tool for refining skills that transcend the trading landscape. 1. Risk Management: A Calculated Gamble In the world of poker, going "all in" can swiftly lead to losing everything on a weak hand, much akin to the risks of trading. Strategic players understand the value of managing risks. Just as traders avoid recklessly investing their entire capital, poker players refrain from putting all their chips on the line. The lesson is clear: prudent risk management is the bedrock of success. When trading, the rule of never jeopardizing more than 1% of your account on a single trade reigns supreme. This practice mimics poker's ante system, where even a $100 buy-in allows you to engage in up to 100 hands, each risking only 1%. By staying in control and considering odds, both poker players and traders minimize the chances of "blowing up" their hard-earned gains. 2. Emotional Mastery: The Art of the Poker Face A trader's prowess lies in following set rules and staying emotionally neutral. In trading, think "Spock-like" focus, or the legendary "poker face." Concealing emotions and making calculated moves regardless of the hand you're dealt defines success. Just as a poker player keeps a straight face to prevent opponents from reading their hand, traders curb emotional impulses that can lead to hasty decisions. 3. Probabilities and Persistence Ever heard the phrase "You gotta be in it to win it"? While it may apply to lotteries, poker and trading echo a more nuanced sentiment. In both arenas, it's about understanding the odds and playing consistently. Just as a skilled poker player capitalizes on favorable odds to raise the stakes, traders must recognize high-probability patterns and seize opportunities. 4. Humility: Staying Grounded in a Fickle Realm In poker, overconfidence can be fatal. The same rings true in trading. A winning streak can inflate one's ego, leading to rash decisions. A humbling poker loss teaches the crucial lesson of respecting probabilities and staying vigilant. By acknowledging that the market, like the poker table, is unpredictable, traders guard against costly mistakes borne from hubris. 5. Setting Financial Goals: Knowing When to Fold Casinos shower players with perks, knowing the allure of winning often overshadows rationality. Similarly, traders who've experienced an early-session surge often squander gains through overtrading. Establishing a financial target and having the discipline to "fold" when achieved prevents pitfalls fueled by greed. Just as a poker player may walk away after doubling their money, traders secure profits by adhering to predefined goals. 6. Community and Learning: The Power of Like-Minded Allies Thriving in a community of dedicated individuals fuels growth. Poker players and traders alike benefit from shared insights and experiences. Engaging in online poker communities or joining global poker circles offers a haven for mutual learning. As traders refine their craft, they unlock not only poker prowess but also a deeper understanding of market dynamics. Intriguingly, virtual poker emerges as an unexpected but valuable ally for traders seeking to enhance their skills. It's more than a game; it's a training ground for honing the mental acuity vital for success in trading's challenging realm. So, are you ready to deal your hand and sharpen your trading edge? Remember, whether you're at the poker table or the trading desk, calculated moves, emotional control, strategic thinking, and community engagement are your aces in the hole. Best of luck, and who knows, maybe we'll even cross paths at the poker table one day!
INDEX:BTCUSDEducation
by Vestinda
Trading Exposed: The Hard-Hitting Truth Behind the 99% Who Fail The picture above completely represents the real nature of trading: We all came here because we all wanted easy money. Being attracted by catchy ads, portraying the guys on lambos, wearing guccies and living fancy lives, we jump into the game with high hopes of doubling our tiny initial trading accounts. However, the reality quickly kicks in and losing trades become the norm. The first trading account will most likely be blown. In just one single month, 40% of traders will be discouraged and abandon this game forever. The rest will realize the fact that the things are not that simple as they seemed to be and decide to start learning. The primary obstacle with trading education though is the fact that there are so much data out there , so many different materials, so many strategies and techniques to try, so the one feels completely lost . And on that stage, one plays the roulette: in the pile of dirt, he must find the approach that works. 80% of the traders, who stay after the first month, will leave in the next 2 years. Unfortunately, the majority won't be able to find a valid strategy and will quit believing that the entire system is the scam. After 5 years, the strongest will remain. The ones that are motivated and strong enough to face the failures. With such an experience, the majority of the traders already realize how the things work. They usually stuck around breakeven and winning trades start covering the losing ones. However, some minor, tiny component is still missing in their system. They should find something that prevents them from becoming consistently profitable. Only 1% of those who came in this game will finally discover the way to make money. These individuals will build a solid strategy, an approach that will work and that will let them become independent. That path is hard and long. And unfortunately, most of the people are not disciplined and motivated enough to keep going . Only the strongest ones will stay. I wish you to be the one with the iron discipline, titanic patience and nerves of steel.
OANDA:XAUUSDEducation
by VasilyTrader
12
Attention Traders. DON'T Make This MISTAKE in Top-Down Analysis Most of the traders apply multiple time frame analysis completely wrong. In the today's article, we will discuss how to properly use it and how to build the correct thinking process with that trading approach. The problem is that many traders start their analysis with lower time frames first. They build the opinion and the directional bias analyzing hourly or even lower time frames and look for bullish / bearish signals there. Once some solid setup is spotted, they start looking for confirmations , analyzing higher time frames. They are trying to find the clues that support their observations. However, the pro traders do the opposite . The fact is that higher is the time frame, more significant it is for the analysis. The key structures and the patterns that are spotted on an hourly time frame most of the time will be completely irrelevant on a daily time frame. In the picture above, I underlined the key levels on USDJPY on an hourly time frame on the left. On the right, I opened a daily time frame. You can see that on a higher time frame, the structures went completely lost . BUT the structures that are identified on a daily, will be extremely important on any lower time frame. In the example above, I have underlined key levels on a daily. On an hourly time frame, we simply see in detail how important are these structures and how the market reacts to them. The correct way to apply the top-down approach is to start with the higher time frame first: daily or weekly. Identify the market trend there, spot the important key levels. Make prediction on these time frames and let the analysis on lower time frames be your confirmation. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
15
Trading RSI Divergence: Unveiling Potential Opportunities In the world of technical analysis, the Relative Strength Index (RSI) serves as a valuable tool for traders seeking to identify potential trend shifts and entry points. RSI divergence, a divergence between the RSI indicator and the price movement, is a powerful signal that can offer insights into upcoming price reversals. This article provides an in-depth exploration of how to identify RSI divergences and the different types that traders encounter. Understanding RSI Divergence: RSI divergence occurs when the movement of the RSI indicator diverges from the movement of the price chart. It can signal a change in momentum and a possible upcoming trend reversal. There are two main types of RSI divergence: bullish and bearish. Bullish Divergence: Bullish divergence happens when the price forms lower lows while the RSI forms higher lows. This suggests that although the price is trending downward, the RSI is showing potential upward momentum. Bullish divergence can indicate that a downtrend might be losing steam and a bullish reversal could be imminent. Example of Bullish Divergence : Bearish Divergence: Bearish divergence occurs when the price forms higher highs while the RSI forms lower highs. In this scenario, the price is moving upward while the RSI indicates a potential loss of upward momentum. Bearish divergence can signal that an uptrend might be weakening and a bearish reversal could be on the horizon. Example of Bearish Divergence : Identifying RSI Divergence: To spot RSI divergence, follow these steps: Analyze Price and RSI Trends: Examine the price chart and the RSI indicator. Pay attention to the highs and lows on both the price chart and the RSI line. Look for Discrepancies: In bullish divergence, when the price forms lower lows, check if the RSI forms higher lows. In bearish divergence, when the price forms higher highs, check if the RSI forms lower highs. Confirm with Other Indicators: Utilize other technical indicators or chart patterns to confirm the divergence signal. These indicators can strengthen the validity of your divergence findings. Consider the Trend: Evaluate the prevailing trend on higher timeframes. Divergence signals are more significant when they align with the broader trend direction. Be Mindful of Timeframes: RSI divergence signals can occur on various timeframes. Consider using multiple timeframes to validate and refine your divergence analysis. Conclusion: RSI divergence is a potent tool that traders can use to identify potential trend reversals and entry points. By understanding the different types of RSI divergence and following a systematic approach to identification, traders can gain valuable insights into the underlying momentum of an asset's price movement. Remember that while RSI divergence can provide powerful signals, it's essential to use it in conjunction with other technical analysis tools for a comprehensive trading strategy. 🚀🔍
Education
by Yaroslav_Krasko
Magic of Fibonacci Levels ✨In the realm of technical analysis, few tools capture the imagination of traders as effectively as Fibonacci retracements and extensions. Derived from the famous Fibonacci sequence, these levels offer insights into potential price reversals, extensions, and trend continuation points. In this article, we'll delve into the world of Fibonacci levels and explore how to use them to enhance your trading decisions. Understanding Fibonacci Retracements: Fibonacci retracement levels are like hidden treasures ✨ along a price trend. These levels, calculated from a swing high to a swing low, create horizontal lines that indicate potential support and resistance levels. The most common retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. How to Use Fibonacci Retracements: Identify a Trend: 📈📉 Begin by spotting a clear trend, either upward or downward. Select Swing Points: 🏞️ Locate the pivotal swing high and swing low within the trend. Plot Fibonacci Levels: 📏 Put those retracement levels on your chart, and watch as they highlight potential support or resistance areas. The Application: Support Levels: 💪🛡️ During an uptrend, traders often see retracement levels as potential buying zones. Resistance Levels: ☔ In a downtrend, these levels can be seen as possible areas to consider short trades. Understanding Fibonacci Extensions: Fibonacci extensions act like a crystal ball 🔮 projecting potential price targets or levels where the trend might extend. Extension levels include 161.8%, 261.8%, and 423.6%. How to Use Fibonacci Extensions: Identify a Trend: 📈📉 As with retracements, spot a well-defined trend. Select Swing Points: 🏞️ Determine the significant swing low and swing high within the trend. Plot Fibonacci Extension Levels: 📏 Add those extension levels to your chart, projecting potential price targets. Few examples : The Application: Projection of Trend Continuation: 🚀 Fibonacci extensions hint at where a trend might continue in its existing direction. Price Targets: 🎯 Traders often utilize extension levels to pinpoint potential price areas before a reversal might occur. Conclusion: Fibonacci retracements and extensions are like wizardry in the trader's toolkit. By grasping these levels and their applications, traders can create more informed strategies for entry, exit, and target levels. Remember, while Fibonacci levels are magical, they work best when combined with other technical indicators and chart patterns. As with any trading strategy, practice, experience, and risk management remain essential. With careful consideration and diligent analysis, Fibonacci levels can sprinkle a touch of enchantment to your trading endeavors. 📊✨
Education
by Yaroslav_Krasko
Analyzing Confirmation Bias in Forex and Gold Trading Psychological biases play a significant role in shaping trading decisions, and one such bias that demands scrutiny is confirmation bias. Confirmation bias refers to the tendency of individuals to seek out, interpret, and emphasize information that supports their existing beliefs or preconceptions while ignoring contradictory evidence. In the forex and gold trading , confirmation bias can have profound implications for traders, influencing their decision-making processes and potentially leading to suboptimal outcomes. This article aims to provide an in-depth understanding of confirmation bias and its impact on forex and gold trading, along with strategies to mitigate its negative effects. Impact of Confirmation Bias on Forex Trading: 1. Selection and Interpretation of Information: Traders under the influence of confirmation bias tend to cherry-pick information that supports their existing beliefs and ignore or downplay evidence that contradicts them. This can result in an incomplete and biased assessment of the market's true conditions. 2. Overconfidence and Undue Risk-Taking: Confirmation bias can breed overconfidence, leading traders to overlook potential risks. Traders may take excessive risks by holding onto losing trades in the hope that the market will eventually validate their initial belief. 3. Missed Trading Opportunities: By focusing solely on information that confirms their existing beliefs, traders may overlook potential trading opportunities that could have been profitable. This bias restricts their ability to adapt to changing market conditions and identifying alternate trade setups. Identifying Confirmation Bias: 1. Selective Information Gathering: Traders may exhibit a tendency to seek out sources of information that align with their existing beliefs while ignoring or avoiding contradictory viewpoints. 2. Narrow Framing: Traders might frame and interpret market information in ways that support their pre-existing assumptions, inadvertently excluding alternative perspectives. 3. Dismissing Contradictory Evidence: When presented with evidence that contradicts their beliefs, traders may either reject it outright or rationalize why it is irrelevant or unreliable. Overcoming Confirmation Bias: 1. Seek Diverse Perspectives: Encourage a broad range of viewpoints by actively seeking out perspectives that challenge your existing beliefs. Engage in discussions with other traders, join forums, or seek professional opinions to diversify your understanding. 2. Consistent Record-Keeping: Maintain a trading journal that accurately documents your trades, rationale, and outcomes. Regularly review this journal to identify any patterns or biases that might be influencing your decision-making process. Confirmation bias represents a significant cognitive obstacle for traders in forex and gold trading. Understanding its nature and recognizing its impact are crucial steps towards minimizing its negative effects. By adopting strategies focused on self-awareness, diversification, and collaboration, traders can enhance their decision-making processes and improve their overall profitability while navigating the complexities of the forex and gold markets. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Full-Time Job vs. Full-Time Trading Deciding between a full-time job and full-time trading is a crucial career choice that many individuals grapple with. Both options offer potential financial benefits, but it is essential to thoroughly evaluate the income comparison and stability provided by each path. This article aims to provide an in-depth analysis of the income potential and stability associated with full-time jobs and full-time trading, helping readers make an informed decision based on their individual circumstances and preferences. 1. Full-Time Job: Income and Stability 1.1. Salary Structure: Full-time jobs typically offer a stable income stream, with salaries negotiated between the employer and employee. It provides a fixed amount earned on a regular basis, such as monthly or bi-weekly. 1.2. Growth Potential: Most full-time jobs present incremental growth opportunities through salary hikes, promotions, and bonuses. 1.3. Benefits and Perks: Besides a steady income, full-time jobs often provide additional benefits, such as health insurance, retirement plans, paid leaves, and various employee perks. These benefits contribute to overall financial security. 2. Full-Time Trading: Income and Stability 2.1. Income Potential: Full-time trading offers a potentially higher income ceiling compared to a regular job. Successful traders can earn substantial sums of money, sometimes exponentially higher than what a typical full-time job might offer. However, it is important to recognize that trading income can vary significantly based on market conditions, individual skill, and experience. 2.2. Volatility and Risk: Trading, particularly in financial markets, involves inherent risks. The income generated from full-time trading can be highly volatile and subject to market fluctuations. 2.3. Continuous Learning and Adaptability: Full-time trading requires continuous education and staying up-to-date with market trends. Adapting to market changes and acquiring necessary skills is crucial to maintain a sustainable income level. Traders must be prepared for ongoing learning and to adjust their strategies accordingly. 3. Comparing Income and Stability 3.1. Income Comparison: Full-time trading has the potential to yield higher income compared to traditional full-time employment. However, the profitability of trading is dependent on various factors such as market conditions, trading strategy, experience, and discipline. 3.2. Stability Comparison: Full-time jobs offer a more stable income and financial security, with regular paychecks and additional benefits. In contrast, full-time trading is inherently more volatile and subject to market risks, making it less predictable and potentially less stable. Choosing between a full-time job and full-time trading necessitates a thorough understanding of income potential and stability associated with each option. Full-time jobs provide a stable income stream, incremental growth prospects, and additional benefits, whereas full-time trading offers the potential for higher income but entails greater volatility and market risks. The decision ultimately depends on an individual's risk tolerance, financial goals, trading skills, and willingness to continuously learn and adapt to market conditions. It is crucial to weigh these factors carefully to make an informed choice that aligns with personal circumstances and aspirations. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
5
Are You Taking the Right Risks in Trading? Best RISK Per Trade What portion of your equity should you risk for your trading positions? In the today's article, I will reveal the types of risks related to your position sizing. Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size. 🟢Risking 1-2% of your trading account per trade will be considered a low risk. With such a risk, one can expect low returns but a high level of safety of the total equity. Such a risk is optimal for conservative and newbie traders. With limited account drawdowns, one will remain psychologically stable during the negative trading periods. 🟡2-5% risk per trade is a medium risk. With such a risk, one can expect medium returns but a moderate level of safety of the total equity. Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks. 🔴5%+ risk per trade is a high risk. With such a risk, one can expect high returns but a low level of safety of the total equity. Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome. That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital. 🛑15%+ risk per trade is considered to be a stupid risk. With such a risk, one can blow the entire trading account with 4-5 trades losing streak. Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken. The problem is that most of the traders does not measure the % risk per trade and use the fixed lot. Never make such a mistake and plan your risks according to the scale that I shared with you. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
15
THIS IS THE REASON YOUR STRATEGY DOESN'T WORKThe title is brash, I know. But before you click away, answer these two questions: 1) How many strategies have you tried? 2) How many strategies have you backtested through several years and thousands of trades? If you have tried more strategies than you've backtested rigorously, then stick around because that's probably the reason why you're losing money. Imagine this. Florence is a novice trader. He's seen the thousands of dollars in profit a kid 10 years younger than him can generate. He's seen the kid flexing his Lambo on Instagram. The kid mentions RSI a few times, so Florence assumes the RSI indicator is the secret to insane profits. Florence is chomping at the bits and loads up a fresh Webull account with $3,000. Every time the RSI is above 70 on a stock, he shorts that stock. Lo and behold, after 5 trades, Florence's account now sits at $2,300. He concludes the indicator does not work. Florence perseveres and is determined to find the secret strategy to quick profits. He scraps the RSI and studies "support and resistance" trading from a few youtube mentors. He reloads his Webull account back up to $3,000. With a refreshed vision, he shorts anytime a stock is at resistance and longs anytime a stock hits support. Sadly, after 10 trades, his account is down again, this time to $2,600. Florence is flabbergasted. The story goes on. He attempts implementing strategy after strategy and continues to lose money. Unfortunately, many of us are Florence. We did what he did. We got into the game without a blueprint or game plan. And this is why my title is brashly stated, "If you don't read this you are going to lose money," because it's true. If you resemble Florence even in the slightest, basing the success of your trading strategy on a handful of trades, then how do you expect to know what strategy is actually successful? I don't blame you for approaching trading like Florence. In today's age, we are seeing the market oversaturated with traders and trading coaches, or even worse, "trading influencers". As with any influx of the masses, we are going to get the scumbags trying to get you to buy their image and product by falsifying the simplicity and ease of trading. If you are jumping between strategies without quantifying its success and failure rates over thousands of scenarios, then stop trading right now because you are going to continue losing money. Find a backtesting service or at the least log every single trade you take. Whatever it is, slow down and find proof of failure before declaring failure. I don't want you to fall into a never-ending hole of searching for the "right" indicator/strategy. The truth is, most of the strategies you've thrown away probably work and you don't even know it.
CME_MINI:ES1!Education
by thetradedoc
3 Best Market Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance. Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend. In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. Good luck!
OANDA:XAUUSDEducation
by VasilyTrader
34
Learn 4 Proven Methods of Applying Moving Average Indicator Hey traders, The moving average is one of the most popular technical indicators. It is applied in stocks/forex/crypto trading and proved its high level of efficiency. There are hundreds of trading strategies based on MA. In this post, we will discuss the 4 most popular ways to apply the moving average. 1️⃣The first method is applied to identify the market trend. While the price keeps trading above the MA, one considers the trend to be bullish and looks for buying opportunities. Once the price starts trading below the MA, the trend is considered to be bearish and a trader is looking for shorting opportunities. In the example above, Moving Average is applied for showing the identification of the market trend. Its upward climb signifies that the market is trading in a strong bullish trend. 2️⃣The second method applies the combination of 2 MA's: preferably a long-term one and a short-term one. The point is that once a short-term moving average crosses above a long-term MA, with high probability, it signifies the initiation of a bullish trend. Alternatively, a crossover of short-term and long-term MA's to the downside indicates a start of a bearish trend. In the example above, there are 2 Moving Averages: short term and long term ones. Their cross signifies the bullish trend violation and initiation of a bearish trend. 3️⃣The third method applies MA as a structure. While the moving average is lying above the price, it is considered to be a dynamic resistance. Staying below the price, it serves as a strong dynamic support. Perceiving MA as the structure, one applies that for trade entries. In the picture above, Moving Average is applied as support on GBPJPY and the price starts growing after its test. 4️⃣The fourth method is aimed to track the crossover of the moving average and the price. The idea is that a bullish violation of the MA by the price gives an early signal for a possible trend reversal. While a bearish breakout of the MA by the market indicates a highly probable bullish trend violation. In the example above, the crossover of the moving average and the price is a perfect indicator of coming bullish and bearish movements. Backtest different MA's inputs and learn to apply that for predicting the future direction of the market and for trading it. Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
14
Learn Why You Should Study Multiple Time Frame Analysis In my daily posts, I quite frequently use multiple time frame analysis. If you want to enhance your predictions and make more accurate decisions, this is the technique you need to master. In the today's post, we will discuss the crucial importance of multiple time frames analysis in trading the financial markets. 1️⃣ Trading on a single time frame, you may miss the important key levels that can be recognized on other time frames. Take a look at the chart above. Analyzing a daily time frame, we can spot a confirmed bullish breakout of a key daily resistance. That looks like a perfect buying opportunity. However, a weekly time frame analysis changes the entire picture, just a little bit above the daily resistance, there is a solid weekly resistance. From such a perspective, buying GBPUSD looks very risky. 2️⃣ The market trend on higher and lower time frames can be absolutely different. In the example above, Gold is trading in a bullish trend on a 4h time frame. It may appear for a newbie trader that buyers are dominating on the market. While a daily time frame analysis shows a completely different picture: the trend on a daily is bearish, and a bullish movement on a 4H is simply a local correctional move. 3️⃣ It may appear that the market has a big growth potential on one time frame while being heavily over-extended on other time frames. Take a look at GBPJPY: on a weekly time frame, the market is trading in a strong bullish trend. Checking a daily time frame, however, we can see that the bullish momentum is weakening: the double top pattern is formed and the market is consolidating. The sentiment is even changing to a bearish once we analyze a 4H time frame. We can spot a rising wedge pattern there and its support breakout - very bearish signal. 4️⃣ Higher time frame analysis may help you to set a safe stop loss. In the picture above, you can see that stop loss placement above a key daily resistance could help you to avoid stop hunting shorting the Dollar Index. Analyzing the market solely on 1H time frame, stop loss would have been placed lower and the position would have closed in a loss. Always check multiple time frame when you analyze the market. It is highly recommendable to apply the combination of at least 2 time frames to make your trading safer and more accurate. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Psychology and Trading: Conquering FOMO 🔥 Do you ever feel the Fear of Missing Out (FOMO) when trading? 🔥 It's a common struggle, but fear not! In this post, I'll share five crucial points that have been instrumental in helping me gain control over my psychology throughout my trading journey. 😎 Embrace the Unpredictability: The market is a wild ride, and it can change direction in the blink of an eye. Even the best setups can turn into losses within seconds. So, keep a neutral mindset! Recognize that prices can move in any direction, and be ready to adjust your bias as market structures develop. By staying neutral, you can reduce your emotions and build a strong trading psychology. 💪 Master Risk Management: Risk management is the holy grail of trading. Without it, you're just gambling. Losses are inevitable, but by limiting your risk to a small percentage (e.g., 1%), you can protect your capital and keep trading. Consistently managing risk and maximizing your reward-to-risk ratio will compound your profits and overshadow any losses. ⏳ Patience Pays Off: Don't chase after every trade. If you miss an entry, don't panic! There will always be new opportunities that fit your trading plan. Impulsively chasing volatility leads to revenge trading, greed, and unnecessary losses. Stay disciplined and wait for confirmation before jumping into a trade. 🚫 Leave Your Ego Behind: Your ego has no place in trading. Just because you think the price will hit your target doesn't mean it will. Profitability comes from taking what the market offers. Be humble and flexible, adjusting your trades according to the market's behavior. This mindset shift will help you avoid costly mistakes. 📝 Craft a Solid Trading Plan: Want to succeed? Have a well-defined trading plan! It's your compass in the chaotic market. Identify profit targets, stop levels, and entry/exit points. Stick to your plan with unwavering discipline. Consistency and emotional control are key to achieving your trading goals. 📈 Remember, there's no one-size-fits-all approach in trading. Each trader has their own style, plan, and mindset. As long as you follow your plan and your decisions align with your criteria, you're on the right track. At @Vestinda we hope you found these tips helpful! Trading is a journey of self-improvement and constant learning. By applying these principles, you'll gain better control over your psychology and increase your chances of success. Keep exploring, stay curious, and never stop honing your trading skills! 🤗
BITSTAMP:BTCUSDEducation
by Vestinda
Learn the ONLY REASON Why You Should Try on RETEST!Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed, we can either open a trading position aggressively once the candle closes above/below the structure, or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally, not letting the price return back to the broken structure. Take a look at that triangle pattern on Bitcoin. The price broke its support BUT did not retest it, so trading only the retest, the opportunity would be missed. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
7
The Dangers of Giving Up Too Soon on a Trading Strategy There are hundreds of different strategies to trade. Some of them are losing ones, some provide modest results and some strategies are very profitable. Novice traders often struggle to find the right strategy that suits their personality, financial goals and risk appetite. Unfortunately, they also tend to make some common mistakes that can undermine their performance and confidence. ❌ One of the biggest mistakes that they make in their search is that they give a strategy a very short trial period. It simply means that they are trying to assess the validity of the strategy, trading that for a very short time span (usually a day to a week). Please, realize the fact that the performance of the strategy can be measured only with extended backtesting - meaning that the strategy should be tested on multiple financial instruments and for a long period of time and applying multiple evaluation metrics. Moreover, if the strategy proves its efficiency on backtesting, it should be traded on a demo account at least 2 months before the valid performance can be calculated. ❌ Another common mistake is that many traders drop the strategy once it starts losing. And by losing, I mean just 2–3 trades in a row. Newbies are searching for the approach that never loses. They may even abandon a trading strategy once they catch JUST ONE bad trade. ✅ In contrast, a smart trader realizes that one bad trade does not define the performance of the strategy. Moreover, such a trader calmly faces the losing streaks and sticks to the strategy. Take a look at that picture. On the top, we have the traits of a newbie trader and his equity curve. He abandons the strategy after he faces the loss, not giving the strategy a chance to recover. When he changes the strategy, he starts recovering a little bit and a losing period follows. He drops a strategy again, and he keeps following this vicious cycle till his entire account is blown. On the bottom of the picture, we see the equity curve of a smart trader. Even though he faces losses occasionally, his strategy always gives him a chance to recover and with time his trading account steadily grows. Please, realize the fact that a perfect strategy does not exist. You will lose the money occasionally anyway. What distinguishes a smart trader from a dumb one is his discipline and trust to his trading system and willingness to face losses. ❤️Please, support this video with like and comment!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
9
Real Example of a TRADING PLAN Revealed Hey traders, In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment. 1️⃣ - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels. Here on WTI Crude Oil I have analyzed key levels and came to the conclusion that the market is trading in sideways. 2️⃣ - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand). You should patiently wait until one of these zones is tested. Back to our example. The support that the market is approaching is a safe area to buy from. 3️⃣ - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy. In our example, the confirmation pattern - the ascending triangle is spotted on lower time frames. 4️⃣ - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level. Trading Oil, the perfect entry point will be on a retest of a broken neckline of a triangle. 5️⃣ - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations. Back to our example - our safe stop loss will be below the lows. 6️⃣ - Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene. Returning to our trade, the Perfect target level is based on a closes strong resistance. Only then a trading position is opened. No matter what will be the end result of your trade, you should assess it: 1️⃣- You should journal the trade outlining its end result, trading instrument, and your entry reason. 2️⃣ - Note any peculiar thing about this trade that you noticed. 3️⃣ - Record your gain/loss percentage. 4️⃣ - Identify whether any mistake was made and if so, learn from that. Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated. Do not underestimate its importance and treat it as the main element of your trading routine. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
8
Dow Jonex Index (US30): Top-Down Analysis & Trading Plan Dow Jones Index is testing a peculiar zone of confluence on a daily: we see a perfect intersection between a horizontal support and 382 retracement of the last bullish impulse. Analyzing 4H time frame, I see a falling wedge pattern. To catch a pullback with a confirmation, I suggest looking for a bullish breakout of the resistance of the wedge. 4H candle close above will confirm a violation. A bullish continuation will be expected to 33970 / 34040 levels then. Alternatively, a bearish breakout of the underlined blue zone will push the price lower. ❤️Please, support my work with like, thank you!❤️
BLACKBULL:US30Long
by VasilyTrader
5