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Key Levels and US Market Review for the Asian session open 30/03European markets rallied from the open which led to a strong open to the USD and a very bullish session. All indexes were up as stock traders went bargain hunting as they brush aside banking woes. For me inflation still needs to cool a lot further before bulls can take control and US consumers are not in a good way which may eventually weigh on markets again. Bond yields are also hinting at inflation concerns as they go higher while the USD is showing signs of basing for a leg up. The US was generally supported by a handful of big Tech stocks and banking shares. Asian markets are expected to open higher with the ASX set to open up 45pts. It will be interesting to see if the HSI has another squeeze lower or fires up the rockets again for a big move up. I remain of the view that sticky inflation is the big issue but it remains a balancing act for the Fed as they potentially come to the end of a rate rise cycle. The Fed will need to see hard evidence that inflation is coming under control first. A review of the price action from the European session and the US session where I look at some key levels to watch and the price action setups I expect to see play out on the major markets below. Markets covered :- DOW Nasdaq DAX FTSE ASX200 Hang Seng USD Index Gold Oil Copper
NYMEX:CL1!
by TradeTheStructure
Scalper, Day Trader & Swing Trader | Choose Your Path There are thousands of different ways to trade the market. During the last 100 years, various trading strategies and techniques were invented. One of the ways to categorize them is to split them by types of traders. Such a category type will lean on 2 main elements: trading frequency and time frame selection. 1️⃣ - Scalper I guess 99% of newbie traders start from scalping. Trying to catch quick market moves and become rich quick, newbies are practicing different scalping strategies. What is funny about scalping is the fact that such a trading style is considered to be the easiest by the majority while remaining one of the hardest in the view of pros. The main obstacle with scalping is a constant focus and rapid decision-making. Scalpers usually open dozens of trading positions during the trading session, most of the time being in front of the screen constantly. Paying huge commissions to the broker and dealing with complete chaos on lower time frames, the majority simply can't survive the pressure and drop, leaving the pie to true gurus. 2️⃣ - Day Trader Day trading or intraday trading is the most appealing to me. Staying relatively active, the market gives some time for the trader for reflection & thinking. Opening and managing on average 1-2 trades per trading session, the intraday trader is granted a certain degree of freedom. However, with declining volatility , quite ofter intraday traders get a relatively low risk/reward ratio for their trades, 3️⃣ - Swing Trader Swing trading is the best choice for traders having a full-time job. Primarily being focused on daily/weekly time frames, swing trading is not demanding for a daily routine and aims at catching mid-term/long-term market moves. With an average holding period being around 2 weeks and opening 1-2 trading positions per week, swing trading is considered to be the least emotional and involves low risk. The main problem with swing trading is patience. Correctly identifying the market trend and opening a trading position, the majority tends to close their positions preliminary not being patient enough to let the price reach their target. Which trading type do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
5
GOLD : What Should Be Ideal Risk Reward Ratio OANDA:XAUUSD A good risk/reward ratio could be seen as greater than 1:3, where you would risk 1/4 of the overall potential profit. For trading to prove profitable in the long term, a trader should not typically risk their capital for a lower risk/reward ratio, as this will mean that half or more of their investment could be lost. The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. A lower risk/return ratio is often preferable as it signals less risk for an equivalent potential gain. Consider the following example: an investment with a risk-reward ratio of 1:7 suggests that an investor is willing to risk $1, for the prospect of earning $7. Alternatively, a risk/reward ratio of 1:3 signals that an investor should expect to invest $1, for the prospect of earning $3 on their investment. Traders often use this approach to plan which trades to take, and the ratio is calculated by dividing the amount a trader stands to lose if the price of an asset moves in an unexpected direction (the risk) by the amount of profit the trader expects to have made when the position is closed (the reward). KEY TAKEAWAYS The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. The ratio helps assess the expected return and risk of a given trade. In general, the greater the risk, the greater the expected return demanded. An appropriate risk reward ratio tends to be anything greater than 1:3.
OANDA:XAUUSDEducation
by INVESTRONE
Learn What is Confirmation Bias | Trading Psychology 🧠 In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from 50.000 level, expecting the exponential growth. Instead of growing, however, the market starts falling rapidly. Rather than closing your position in loss, you decide to do a new research and execute the analysis, you start looking for the proof of your pre-existing beliefs. You completely neglect the voices of Bitcoin sceptics and ignore bearish clues on the price chart. You consider only the facts that support a bullish outlook, not letting you accept the other point of view. You become a victim of a confirmation bias. Unfortunately, such a psychological trap frequently prevents a closing of a trading position in time, leading to substantial losses. Confirmation bias is a common psychological error that makes a subject overvalue the information that upholds his existing beliefs and undervalue the opposing one. Here are the most common symptoms of that trap: 1️⃣One is neglecting the objective facts. 2️⃣One is interpreting information in a way to support the existing beliefs. 3️⃣One is considering only the facts that conform with his point of view. 4️⃣One is completely ignoring the information that challenges his beliefs. The only way to beat a confirmation bias in trading, is to learn to analyze the market from sellers' and from buyers' perspective. Your task is to compare the view of the 2 sides, and pick the one that is stronger, holding in mind the fact that everything can change. You should always remember of the changing nature of financial markets and be ready to always reassess your views. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
13
The Story Behind Bulls and BearsHello @TradingView family , this is @Vestinda, and let's have some fun and enjoy the markets together. Vestinda is driven to offer our knowledge in developing winning strategies and make traders tasks easier. This is The Story About Bulls and Bears. Bulls can lift things up, Bears can eat you for lunch. Who Are The "Bulls" And The "Bears" In The Market The terms "bulls" and "bears" are included in the trader's slang as the main categories of players in the market. Understanding the technique of the game will help you to understand the intricacies of how the market works. "Bulls" are buying investors. Like their totem, they lift the enemy up on the horns. "Bulls" buy, wait for the rising rate and sell at a higher price. They dream of a prosperous economy: the lower the unemployment rate, the higher the GDP, the faster markets grow. Warren Buffett - the most famous representative of the bulls . The Bears play on the opposite side. They earn on the depreciation, in a fading economy. Their ideal world is high unemployment, low GDP and large-scale crises. It all starts long before the collapse of the market: the “bears” buy on credit and immediately resell, artificially creating a drop in prices. After the price becomes cheaper, they are purchased again, but at a lower price, and the debt is repaid. The difference between the first and second purchases is the profit of the bears. 💲 How Bulls Make Money On The Market 💲 "Bulls" buy, when they are sure that the market will go up. Examples of situations where this is possible: 🟣 the shareholder enterprise has published a financial report, and the figures exceeded forecasts; 🟣 the new reform allows to pay less taxes, thereby increasing profits; 🟣 the company has introduced a new product, which, according to analysts, will be in great demand; 🟣 the level of well-being, salary and solvency of the population are growing, which has a beneficial effect on the company's profit. Bullish trades take time – you have to wait to make money. "Bears" are distinguished by shorter trades and the prospect of quick earnings. A red flag for the bulls is an increase in prices by 20% from the lows and the presence of strong prerequisites for further growth. The most favorable moment comes when there are more buyers than sellers on the market. 📍 There Are 4 Key Phases Of A Bull Market:📍 1️⃣ "bearish" trends are gradually fading; 2️⃣ the backdrop of negative news has ended, but there is no confidence in future growth yet, the market is moving sideways, the growth of prices alternates with a fall; 3️⃣ the economy is going up, volatility is decreasing, investors are optimistic; 4️⃣ the peak of growth, traders make easy profits. The market trends are cyclical, a bull market becomes overbought over time and inevitably turns into a bear market. The move up can be uneven, with periods of pullbacks and corrections, that provide an opportunity to profit on counter-trend trades. As a rule, prices didn't rise as quickly and unpredictably as they fall. Therefore, transactions in the "bullish" market are characterized by a longer period, the so-called "long positions". Both own and borrowed money, shares and other assets, which are returned after closing, act as collateral. Long positions are considered more stable, predictable and calm. Therefore the majority of market participants are "bulls" (or consider themselves so). In an uptrend, it's easy to choose an investment because almost everything goes up. However, the "bulls" need to be careful and remember, that there is no eternal growth, the market can be oversaturated at any moment, turning in the opposite direction. It is important for conservative traders to exit the game on time. 💲 How Bears Make Money On The Market 💲 The bears enter the arena during a downturn in the economy and prices. Their tactic is to sell at the beginning of a downtrend and then buy at the end of a downtrend. If they guess the high and low points of the bear market, they will receive the maximum margin. Examples of situations, that will play into the hands of this category of traders: 🟣 there were large-scale economic crises, force majeure situations, natural disasters, epidemics, wars; 🟣 the shareholder enterprise found itself in the center of a scandal or changed its general director; 🟣 sales of the new product failed. A "bear" market comes into its own, when prices fall by 20% from the maximum. There are 4 main stages of the trend: 1️⃣ the bull market is oversaturated and goes into overbought phase; 2️⃣ against the backdrop of negative sentiment, prices fall sharply, and trading activity decreases, panic arises on the market; 3️⃣ prices fell quite strongly, but continue to gradually decline, at this time “bears” enter the market en masse; 4️⃣ seduced by cheaper prices, conservative investors become more active, due to which the market gradually turns in the opposite direction. Thus, the "bear" market is gradually replaced by a "bullish" one. Can a Bull become a Bear? In fact, these divisions are rather arbitrary, they were created by exchange slang. Officially, in the market, you do not need to indicate yourself in which category you belong, so no need to be a bull or a bear all your life. Traders' strategies are good because they can be adapted or completely changed to specific conditions on the exchange. It's not always possible to sell shares at the maximum or buy at the minimum price, so you have to adjust to the average attitude. Therefore, a “bull” can become a “bear”, just like a “bear” can become a “bull”. Conclusion: What are Bulls and Bears in Trading? Bulls and Bears are two sides of the stock market. Bulls are traders who believe that the stock prices will go up, while bears are traders who think that the stock prices will go down. In trading, these two forces are constantly at work, and understanding their roles can help you make better decisions when it comes to investing. Bulls and Bears play an important role in trading as they provide insight on the direction of a particular security or market trend. By understanding their roles in trading, investors can more accurately predict future price movements and make more profitable trades. Dear friends, this is our first post. 😊 If you liked it, press <> 👍, share it on your social networks, groups - it will allow more people get interesting information, and we'll be able to delight you with new posts even more!♥️
INDEX:BTCUSDEducation
by Vestinda
4
Learning Plan: 13 Essential Topics to Study in Trading Hey traders, I receive dozens of questions each and every day concerning the topics to study to become an expert in technical analysis . Here I have collected the main subjects that, in my view, are essential for successful trading. *the order of the topics is spontaneous and there is no logical sequence 1️⃣ - Candlestick patterns To me, candlesticks are very important for understanding market behavior. A single wick quite often can tell you a story. Mastering different candle stick patterns, you will be impressed by how much data and information you may derive from analyzing them. 2️⃣ - Price action patterns At first glance price chart is complete chaos. The market looks irrational and it feels like there is no way to read it. Price action patterns are the language of the market. With them, the price fluctuations start to make sense. 3️⃣ - Support & resistance All my predictions, all my trades & signals are always based on support & resistance levels. These are the levels that make the market change its direction, they influence the market so much, therefore you should learn to identify them and constantly hold them on focus. 4️⃣ - Supply & demand zones The only difference between support & resistance and supply & demand zones is the fact that the first ones are represented as levels while the second ones are represented as the zones. The identification of these zones is very important for proper market analysis. 5️⃣ - Key levels Key levels are the strongest supports and resistances. Of course, spotting various supports and resistances on the chart, we can not say that they all are equal in their significance. There is a strong (however subjective) hierarchy of them. The most significant are called key levels and from them, the most significant moves are always expected. 6️⃣ - Trend analysis When I teach my students how to analyze the price chart, I always start with a trend analysis topic. Knowing where exactly the market is going, having specific and objective rules for the trend identification are necessary for successful trading. 7️⃣ - Top-Down analysis Multi-time frame analysis is my passion. I am constantly combining the signals & observations from different time frames to make my trading decision and predict future market moves. It proved to be a very efficient method of trading various markets. 8️⃣ - Financial instruments Though to many it may sound obvious, in practice I know that a lot of people are struggling with a simple question "What to trade?". You must learn to properly build your watchlist and you should have strong reasoning behind the selection of each unite that is inside. 9️⃣ - Trend following trading As we know, the trend is our friend. And even though the phrase itself is very simple and straightforward, it takes so much effort and time to learn to follow the trend properly. 1️⃣0️⃣ - Counter trend trading Occasionally the market reverses. Properly identifying early reversal signs and then catching a sharp counter-trend move, huge profits can be made. Even though such a style of trading is considered to be extremely risky, being applied properly will generate a lot of cash. 1️⃣1️⃣ - Risk management Losses are inevitable. They are part of the game and we can do nothing about that. The only thing that we can do, however, is to control the losses. Calculating the risk for every single transaction is essential to avoid a margin call. 1️⃣2️⃣ - Leverage trading Leverage selection, margin are the things that are tightly connected with risk management topic. These are the terms that you must know how to operate with. 1️⃣3️⃣ - Trading psychology Playing with real money, occasionally losing significant portions of your trading account can be a tough game. It takes time to build a strong psyche to deal with the irrationality of the market. Which topic to start with? Pick any, learn it, study it. They all are equally important so at the end of the day you need to cover them all in order to become successful. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
16
How to Trade the Markets - Step 2 - Develop the Mega TrendHello, In this video series i will be walking you through my new approach on how i am currently trading the markets. Step 2 - Develop the Mega Trend Once you have entered your position and set your stop loss, you will then want to align the Trend Meters with your current lifeline candle. Ultimately we want to see the next day candle break below the previous day of support and start to create space from our position. We align the 7,14 and 21 Trend Meters to confirm the development for a Mega Trend winning position. Let it run and work for you! We will exit and rotate the position once we have a confirmation from the Trend Meters. Follow up videos will come in the future to show you how this has performed for the year. Simplicity is key. Tight stops are key. Mega Trend is WINNING. Take care.
BITSTAMP:BTCUSDEducation
by UnknownUnicorn2319099
This Is How GBPUSD Will Likely Move In Coming Months | Be Ready!I have published this idea to give you a general view of how to look at GBPUSD in the meantime .. Please do consider that this is an estimation of how price might move, given the current conditions and market outlook and that may change and it's not stable.. A confirmation must occur before determining every leg of the moves shown on chart, and confirmations of lower timeframes is obligatory.. This is the general view of what we might expect price to do.. make sure to hit a FOLLOW to get updates and confirmations right away💥 What's your view on this pair and DXY in general?
Long
by MST_Trader
How Leverage Really Works | Margin Trading Explained Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD , the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
10
When Your Trading Journey Begins... Hey traders, In this article, we will discuss your first steps in trading. Being interested in financial markets and being attracted by an idea to become a full time trader, you decide to learn how to trade. The first obstacle that you will most likely face with is a tremendous range of topics and strategies to study: key levels, price action, technical indicators, fundamental analysis... The problem is that there is no one single way to learn how to trade. Each educational article, each guru on YouTube dictates their own specific path. You will most likely feel lost, not being able to grasp what even to start with. You will chaotically jump from one topic to another, not being able to understand which concepts do actually work. The situation will even worsen once you decide to try to trade on real money. I do not know any trade who would not blow his first trading deposit. Not only you will be paralyzed by the complexity of the subject, but you will also lose money simultaneously. There will be a lot of times when you will think about leaving this game. Many times, you will consider the entire trading industry to be a scam. That is the moment where most of the traders quit. I am telling you all that simply because I want to show you that we all have the same path. We go through the same obstacles and we think the same way. The only difference between a true winner and a loser, however, is that winners never give up. Winners keep working hard and stay patient. And at the end of the day, magic things happen to them. After years of practicing and suffering, one day you will certainly realize how the things work. One day you will become a full time trade. Just don't give up, always remember, “The nearer the dawn the darker the night.” ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
The U.S. Dollar Index | Everything You Need to Know The U.S. Dollar Index is a measure of the value of the U.S. dollar against six other foreign currencies. Just as a stock index measures the value of a basket of securities relative to one another, the U.S. Dollar Index expresses the value of the dollar in relation to a “basket” of currencies. As the dollar gains strength, the index goes up and vice versa. The strength of the dollar can be considered a temperature read of U.S. economic performance, especially regarding exports. The greater the number of exports, the higher the demand for U.S. dollars to purchase American goods. The index is a geometric weighted average of six foreign currencies. Since the economy of each country (or group of countries) is of different size, each weighting is different. The countries included and their weights are as follows: Euro (EUR): 57.6 percent Japanese Yen (JPY): 13.6 percent British Pound (GBP): 11.9 percent Canadian Dollar (CAD): 9.1 percent Swedish Krona (SEK): 4.2 percent Swiss Franc (CHF): 3.6 percent The index is calculated using the following formula: USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036 When the U.S. dollar is used as the base currency, as in the example above, the value is positive. When the U.S. dollar is the quoted currency, the value will be negative. We constantly monitor the performance of DXY because very often it gives us great trading opportunities. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
Learn Best Price Action Pattern For Trend-Following Trading 📚 In this educational articles, I will teach you the best price action patterns for Trend-Following Trading. 📍Ascending & Descending Triangles The ascending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish. The pattern consist of 2 main elements: a horizontal neckline based on the equal highs, a rising trend line based on the higher lows. ❗️The trigger is a bullish breakout of a neckline of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying at least below the level of the last higher low. 🎯Take profit is the next historical resistance. —————— 📍The descending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish. The pattern consist of 2 main elements: a horizontal neckline based on the equal lows, a falling trend line based on the lower highs. ❗️The trigger is a bearish breakout of a neckline of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying at least above the level of the last lower high. 🎯Take profit is the next historical support. 📍Bullish & Bearish Wedges The bullish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside. The pattern consist of 2 contracting falling trend lines based on the lower lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying below the low of the pattern. 🎯Take profit is the high of the pattern. —————— The bearish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside. The pattern consist of 2 contracting rising trend lines based on the higher highs and higher lows. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying above the high of the pattern. 🎯Take profit is the low of the pattern. 📍Bullish & Bearish Flags The bullish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside. The pattern consist of 2 parallel falling trend lines based on the lower lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying below the low of the pattern. 🎯Take profit is the high of the pattern. —————— The bearish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside. The pattern consist of 2 parallel rising trend lines based on the higher highs and higher lows. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying above the high of the pattern. 🎯Take profit is the low of the pattern. 📍Bullish & Bearish Symmetrical Triangles The bullish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish. The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying at least below the last higher low of the pattern. 🎯Take profit is the high of the pattern. —————— The bearish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish. The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying at least above the last lower high of the pattern. 🎯Take profit is the low of the pattern. The main difficulty related to trading these patterns is their recognition. You should train your eyes to recognize them on a price chart. Once you learn to do that, I guarantee you that you will make tons of money trading them. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
What News to Follow | Top 5 Forex Fundamentals Economic indicators and announcements are an essential part of fundamental analysis. Even if you’re not planning on finding trades using fundamentals, it’s a good idea to pay attention to how the overall economy is performing. Here’s a cheat sheet covering six key indicators and announcements to watch out for. 1. Non-farm payrolls (NFP) The non-farm payrolls report estimates the net number of jobs gained in the US in the previous month – excluding those in farms, private households and non-profit organisations. 2. Consumer price index (CPI) The chief measure of inflation is the consumer price index, which measures the changing prices of a group of consumer goods and services. 3. Central bank meetings As we’ve seen, most traders follow economic figures so they can anticipate what a central bank might do next. So, it only makes sense that we pay attention to what happens when they actually meet and make decisions. 4. Consumer and business sentiment reports Multiple organisations are constantly surveying consumers and business leaders to create sentiment reports. While the number of reports they produce is staggering, they all play their part in shaping the markets’ expectation for the future. 5. Purchasing manager index (PMI) Purchasing manager indices measure the prevailing direction of economic trends in a given industry, according to the view of its purchasing managers. They are used as an indicator of the overall health of a sector. Pay close attention to these fundamentals. They play a crutial role in trading. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
8
What is Gap in Trading | Ultimate Guide Gaps are important parts of the financial market, especially in stocks and currencies. They happen when an asset opens at a significantly lower or higher price than where it closed at. Gap is a situation where a currency or any other asset opens sharply lower or higher than where it closed the previous day. Such a gap happens when there is a major event or news when the markets are closed. It usually represents an area where there is no trading taking place. There are three main scenarios that happen after a gap in the market forms. First, an asset price can continue moving in the direction of the gap. For example, when a bullish gap forms, an asset’s price can continue with that trend. Second, a gap can be filled within a few days or months. Finally, a gap can be followed by a long period of consolidation as traders focus on the next major moves. In all these, it is always good to focus on the asset’s volume. The most common strategy of gap trading is when you decide to enter a trade in the opposite direction of the gap. In this case, you will be betting that the asset will reverse after forming a gap. Ideally, one way of doing this is to check the trends of volume after the gap happens. Still, the risk of doing this is that the asset will either consolidate or resume the gap trend. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
1
How to Spot the Confluence Zone | Pro Fibonacci Technique If you are struggling with the identification of accurate trading entries, you definitely should try confluence zones. Note: there are hundreds of variations of confluence elements. In this example, we will discuss trend lines and fibonnachi. ❗️To identify a confluence zone, the price must follow a trend line (it should match higher lows if the market is bullish ; it should match lower highs if the market is bearish ). Once the trend line is confirmed by at least two touches and consequent reactions, you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line . 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish , swing high to swing low in case if the market is bearish ). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line . In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
9
Learn Why Most of the Traders Fail The evidence suggests that only a very small proportion of day traders makes money year over year. There are certain patterns which may separate profitable traders from those who ultimately lose money. And indeed, there is one particular mistake that in our experience gets repeated time and time again. What is the single most important mistake that led to traders losing money? Here is a hint – it has to do with how we as humans relate to winning and losing. Our own human psychology makes it difficult to navigate financial markets, which are filled with uncertainty and risk, and as a result the most common mistakes traders make have to do with poor risk management strategies. Traders are often correct on the direction of a market, but where the problem lies is in how much profit is made when they are right versus how much they lose when wrong. Bottom line, traders tend to make less on winning trades than they lose on losing trades. Humans aren’t machines, and working against our natural biases requires effort. Once you have a trading plan that uses a proper reward/risk ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. That will help you to be a consistently profitable trader. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
12
10 Common Lies and Misconceptions About Trading 🥺🤮1. People are born traders. While it is true that certain personal characteristics make it easier to trade, no one is born a trader. One of the main themes of the Market Wizards books written by Jack Schwager is that almost none of the market wizards was successful from the start. They all worked hard at it. 2. You have to have a high IQ to trade. Just not true. In some ways, an above average IQ may be a hindrance. Trading is a human performance activity where strong intellectual abilities are unnecessary. 3. Top traders are successful because they have the "right trading personality." There is no such thing as the "right trading personality." Researches have been unable to find a strong correlation between personality type and trading success. It is important, however, to understand your personal characteristics and how they may help and hinder your trading. 4. Trading is easy. It sure looks that way, doesn't it? Just draw a few lines on the chart, watch your indicators, and follow the price bars. The truth is that trading is a difficult business to master. It involves different skill sets and abilities from what are needed in most other professions and careers. The trader must understand his or her personal strengths and limitations and develop specific skills to deal with the mental and emotional demands of trading. The later skills are the most difficult to develop and the most overlooked. 5. You must be tough, hard charging, and fearless to be successful. That's more media hype than anything else. It glorifies a strong ego, which is a detriment in trading. The most successful traders I know quietly do their research, study the charts, and patiently wait for the right moment. They strive to keep their ego out of their trading. 6. You must trade without emotions. If you are human, that's impossible. More importantly, when you understand your emotions you will realize they are assets, not liabilities. The real keys are: To be aware of how your emotions interact with and influence your trading, and To develop the skills needed to trade with them. 7. Top traders are usually right about the market. Top traders have many, many scratch and losing trades. Top traders are at the top because they exercise good risk control, limit the amount of loss from any given trade, and have developed a psychological edge that allows them to be unfazed by small losing trades. Most of their trading consists of modest profits and very small losses. When conditions are right, they step up size and let the profitable trades run. 8. Paper trading is useless - it's not a real trade without money behind it. If you aren't paper trading,you are doing yourself a disservice. You should always be paper trading your trading ideas. Why limit your education and experience by the amount of capital you have? Paper trading keeps you sharp ; you learn the conditions under which your trading ideas work best. Where else can you get such vital education at so little cost? 9. Master the technical skills and you will be successful. This is where most traders spend the vast majority of their time, but it's only part of the picture. You also have to learn important performance skills. Traders should spend as much-if not more-time learning to develop their psychological edge as they do in developing their technical trading edge. 10. Trading is stressful. It certainly can be stressful, and it certainly is stressful for many. It doesn't have to be. Successful traders have a certain mindset. They put little importance on any given trade. Their focus is on the long haul. They know that if they attend to the aspects of trading that are within their control (i.e., trade selection, entry, risk control, and trade management) the profits will take care of themselves. source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
46
The 5 Outcomes Of a Trade | How not to blow your account Successful traders know there are 5 outcomes that can come out of a trading position. When managed well these outcomes can lead to great success. However, when manage badly can cause disaster to a trader’s account. Below I’ll highlight and discuss the possible 5 outcomes of a trade and how you can manage them. 1. Small Profit This is when a position ends in a very small profit, for trend traders, this is usually the case. However, in this situation, there is no loss. 2. Small Loss This is when you lose a small amount at the close of your position. This is part of normal and good trading. In fact, you should cut your losses early. Taking small losses or cutting your losses early will help you stay in this business long term. 3. Breakeven This is a position where you really didn’t make or lose any money. They’ll come too, they are not necessarily bad trades. These types of trades may just mean you should find re-entry to the position or may just be a quick exit without a loss or profit. 4. Big Profit This is when a position ends in a very big profit. This type of trade does not come too often but when they do come they are the trades that move your general account return for the period to the next level. As a trader, these are the type of trades you should look forward to. 5. Big Loss This is when a position ends up closing at a very big loss. This type of trade should never happen on your trading account as a pro-trader. This is the type of trade that can blow your trading account. It’s why you should know how to cut your losses quickly and take a small loss. I’m glad I’ve been able to share with you the possible outcomes of a trade and how you can manage them properly. A simple knowledge like this can suddenly turn your trading account to become profitable. Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
7
Factor Forex Spread into Trades: A Guide to Bid & Ask PricesHave you ever found yourself in a situation where trade was closed out before reaching your intended stop loss level, or where the market reaches your profit target but the trade never closes in your favour? It can be frustrating and confusing, leaving you wondering what went wrong. You may even start to blame your broker or the market itself, thinking they are conspiring against you. But the truth is, it's not the market or your broker - it's you. The key issue is that you're not taking the market spread into account when setting your trade levels. A professional trader must always factor in the spread to avoid inconsistencies and mishaps in their trades. In this post, we will discuss the difference between the BID and ASK price, understand what the market spread is and show you how to factor it into your trade levels for a smoother and more successful trading experience. As a professional trader, it is crucial to understand the BID and ASK prices. Failure to do so can result in costly mistakes when setting up trades. When placing a trade, these two prices are crucial to consider. The BID Price The BID price is something that every trader should have a good understanding of. The BID price is the price that is displayed on the charts, for example, if the USD/JPY pair was displaying 110.00 on your chart, then the BID price is 110.00. The BID price is the price that you deal with every time you press the sell button. This is because it is the price at which your broker is willing to purchase the currency from you. In other words, you are selling the currency to your broker at the BID price. The ASK Price The ASK price can be a little more complex, as it is often the cause of unexpected outcomes in trade orders. Typically, you do not see the ASK price when you have your charts open, it is only visible when you open your trade order window or enable that option in your trading software. The ASK price is the price at which your broker is willing to sell you the currency, and it is a completely different price than what you see on the charts. The ASK price is what you deal with every time the BUY button is pressed and it is typically more expensive than the BID price you are viewing on the chart. Therefore, the ASK price is the price your broker is "asking" for to sell the currency. The BID price may be 1.45000 on the charts but your broker's ASK price may be something like 1.45030. This is where the concept of calculated Forex spread comes into play. How to Incorporate Spread into Trade Planning When placing trade orders, it is important to remember two key principles. These principles must be applied every time you enter and exit a trade, so it is essential to memorize them or keep them in a visible place for reference. ~ When going long, the market is entered at the ASK price and exited at the BID price. ~ When going short, the market is entered at the BID price and exited at the ASK price. For instance, let's say you want to set a pending order to go long when USD/CAD reaches 1.30000 on the chart, you don’t simply place the pending order entry price at 1.30000. Remember the rule for long trades, you ‘enter the market at the ASK price because the ASK price is what your broker is willing to sell you the currency for. Whenever you are the buyer – the ASK price is quoted. If your broker's spread is roughly 2 pips for USD/CAD, when the market reaches 1.30000 your broker will be "asking" for 1.30020. So when the price on the chart reaches 1.30000 (this is the BID price), your broker will be willing to sell the currency for 1.30020 (when the spread is 2 pips). Therefore, if you place your pending order with an entry price of 1.30000, your trade will not be triggered because your broker is not willing to sell you the currency for that price at that point in time. In this case, you would have to wait for the BID price to reach 1.29980, at which point the broker's ASK price would be 1.30000 and your trade will be filled. In order to ensure that the trade is triggered when the BID price reaches 1.30000, you must factor in the market spread and set your entry order at 1.30020. Determining Stop Loss and Exit Prices for Long Positions Determining stop loss and exit levels for long positions is made relatively simple by utilizing the BID price. The BID price, which is the price at which your broker is willing to buy the currency back from you, reflects the prices that are commonly obtainable from the Interbank Market. When exiting a trade, the currency is sold back to the broker at the BID price. The BID price is the one that is visible on the charts, and there is no additional commission to be taken into account. Therefore, stop and target levels can be set directly off the BID prices displayed on the charts, making the process straightforward. Setting Up Short Trades When executing short trades, the process is reversed. Short trades are entered at the BID price, so the price displayed on the chart is used for the short entry order. However, the stop loss and target prices for short trades must take into account the Forex spread, as the trade will be exited at the ASK price, which is typically higher than the BID price due to the broker's commission. To ensure that stop loss levels are not triggered prematurely, the Forex spread must be calculated and added to the stop loss value. This will allow the trade to move freely to its stop-loss level before being closed. Additionally, the Forex spread must also be factored in for the target price levels of short trades. The target price should be found on the chart, the spread added, and that value should be used as the target price level for every short trade order. By following the proper procedures for calculating and factoring in the Forex spread, you can now confidently place trade orders and enter the Forex market in an effective manner. This will prevent frustration and disappointment by ensuring that pending orders are executed correctly and that trades exit at the intended price levels.
COINBASE:BTCUSDEducation
by TradingEdgeHQ