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Learn to Read Candlestick Strength | Trading Basics Hey traders, In this educational article, we will discuss how to objectively measure the market momentum with candlesticks. Please, note that the concepts that will be covered in this article can be applied on any time frame, however, higher is the time frame, more trustworthy are the candles. Also, remember, that each individual candle is assessed in relation to other candles on the chart. There are three types of candles depending on its direction: 🟢Bullish candle Such a candle has a closing price higher than the opening price. 🔴Bearish candle Such a candle has a closing price lower than the opening price. 🟡Neutral candle Such a candle has equal or close to equal opening and closing price. There are three categories of the strength of the candle. Please, note, the measurement of the strength of the candle is applicable only to bullish/bearish candles. Neutral candle has no strength by definition. It signifies the absolute equilibrium between buyers and sellers. 1️⃣Strong candle Strong bullish candle signifies strong buying volumes and dominance of buyers without sellers resistance. Strong bearish candle means significant selling volumes and high bearish pressure without buyers resistance. Usually, a strong bullish/bearish candle has a relatively big body and tiny wicks. 2️⃣Medium candle Medium bullish candle signifies a dominance of buyers with a rising resistance of sellers. Medium bearish candle means a prevailing strength of sellers with a growing pressure of bulls. Usually, a medium bullish/bearish candle has its range (based on a wick) 2 times bigger than the body of the candle. 3️⃣Weak candle Weak bullish candle signifies the exhaustion of buyers and a substantial resistance of sellers. Weak bearish candle signifies the exhaustion of sellers and a considerable bullish pressure. Usually, such a candle has a relatively small body and a big wick. Knowing how to read the strength of the candlestick, one can quite accurately spot the initiate of new waves, market reversals and consolidations. Watch how the price acts, follow the candlesticks and try to spot the change of momentum by yourself. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
7
According to the scenario maybe this will be the last dip!Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Let’s get to the chart! I have tried my best to bring the best possible outcome to this chart, Do not consider financial advice. In the daily time frame, BTC is forming this falling wedge pattern. Falling Wedge When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may breakout above the upper trend line. BTC drops after the FOMC meeting as expected, according to the pattern we are expecting some more drops up to 15k and then we can expect a bounce. But as we all know to confirm this pattern, we need a breakout. Stay tuned I will keep updating BTC in every timeframe below the chat. So read the full chart carefully This chart is likely to help you make better trade decisions if it does consider upvoting it. I would also love to know your charts and views in the comment section. Thank you
Long
by CRYPTOMOJO_TA
2
4 Signs that Say You’re Ready for Full-Time Trading For forex traders, nothing embodies freedom more than those who trade full-time. After all, full-time traders enjoy freedom from their box-type offices, freedom of time, and freedom to choose which trading opportunities to take. Unfortunately, this brand of independence isn’t for everyone. Just like too much freedom can do more harm than good for some economies, not all traders are ready to trade full-time. So how do you know when you’re ready for full-time trading? From what we’ve seen from online forex communities, we can narrow it down to four signs: 1. You have enough capital Trading full time means that you’ll be quitting your job, your primary source of income. And, because you’re realistic, you know that you probably won’t be making any serious trading money in your first few months. 2. You have tried and tested other methods and strategies Not only do you need to have a strategy that has proven to be profitable for you, but you also have to have other equally qualified methods that would work for other trading conditions. After all, you never know when and for how long the market trends will shift! 3. You have spent a considerable amount of time trading LIVE Trading a live account brings forth trading psychology hurdles that you wouldn’t get from trading demo accounts. In addition, you have to have a fairly good grasp of your trading strengths and weaknesses, and, more importantly, you should know how to stick to a trading plan before you make trading your full-time job. 4. Trading is your passion Trading currencies is what motivates you to get up and get busy every morning. Remember that while full-time trading would provide you more opportunities to catch market movements, you don’t need to be a full-time trader to be consistently profitable. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
5 IMPORTANT INDICATORS FOR BEGINNERSHi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Moving Average A moving average is a technical indicator that combines price points of an instrument over a specified time frame, and divides by the number of data points, to give you a single trend line. It is popular amongst traders because it can help to determine the direction of the current trend, while lessening the impact of random price spikes. A moving average will enable you to examine the levels of support and resistance, by analysing the previous movement of an asset’s price. It is a measure of change that trails the previous price action of an asset, assessing the history of market movements to determine possible future patterns. A moving average is primarily a lagging indicator, which makes it one of the most popular tools for technical analysis. Calculating an MA requires a certain amount of data, which can be a large quantity depending on the length of the moving average. For instance, a ten-day MA will require ten days of data, while a one-year MA will require 365 days’ worth. A 200-day period is a very commonly used timeframe for MA. The indicator is described as ‘moving’ because the introduction of new figures will replace old data points and ‘move’ the line on the chart. Bollinger Bands Bollinger Bands are typically plotted as three lines: An upper band A middle line A lower band The middle line of the indicator is a simple moving average (SMA). Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands. The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average). If you’re freaking out because you’re not familiar with standard deviations. Have no fear. The concept of standard deviation (SD) is just a measure of how spread out numbers are. If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands. If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands. Relative Strength Index ( RSI ) RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80. Note: During strong trends, the RSI may remain in overbought or oversold for extended periods. RSI also often forms chart patterns that may not show on the underlying price chart, such as double tops and bottoms and trend lines. Also, look for support or resistance on the RSI. In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance. These ranges will vary depending on the RSI settings and the strength of the security’s or market’s underlying trend. If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred. MACD(Moving Average Convergence Divergence) Moving average convergence divergence, or MACD, is one of the most popular tools or momentum indicators used in technical analysis. This was developed by Gerald Appel towards the end of 1970s. This indicator is used to understand the momentum and its directional strength by calculating the difference between two time period intervals, which are a collection of historical time series. In MACD, ‘moving averages’ of two separate time intervals are used (most often done on historical closing prices of a security), and a momentum oscillator line is arrived at by taking the difference of the two moving averages, which is also denoted as ‘divergence’. The simple rule for taking the two moving average is that one should be of shorter time period and the other longer time period. Generally, exponential moving averages (EMA) are considered for this purpose. Description: The main points for an MACD indicator are: a) Time period or interval – which the user can define. Commonly used time periods are: Short-term intervals – 3, 5, 7, 9, 11, 12, 14, 15-day intervals, but 9-day and 12-day durations are more popular Long-term intervals – 21, 26, 30, 45, 50, 90, 200-day intervals; 26-day & 50-day intervals are more popular b) Momentum oscillator line or divergence or MACD line – which can be simple plotting of ‘divergence’ or difference between two interval moving averages c) Signal Line – which is exponential moving average of divergence data e.g. 9-day EMA d) Normally a combination of 12-day and 26-day EMA of prices and 9-day EMA of divergence data is used, but these values can be changed depending on the trading goal and factors e) The above data is then plotted on a chart, where the X- axis is for time and Y-axis is price, to get MACD line, signal line and histogram for the difference between the MACD and signal line, which is shown below the X-axis Volume Volume, or trading volume, is the number of units traded in a market during a given time. It is a measurement of the number of individual units of an asset that changed hands during that period. Each transaction involves a buyer and a seller. When they reach an agreement at a specific price, the transaction is recorded by the facilitating exchange. This data is then used to calculate the trading volume. Trading volume can be denominated in any trading asset, such as stocks, bonds, fiat currencies or cryptocurrencies. For example, if Alice sells Bob 5 BNB for 20 USD each, the volume of that transaction can be either 100 USD, or 5 BNB, depending on what the trading volume is denominated in. This also means that for a stock, for example, the trading volume refers to the number of individual stocks that were traded during the measured period. So if 100 shares are traded in one trading day, the daily volume of the stock is 100 shares. Traders tend to use the volume indicator as an attempt to gain a better understanding of the strength of a given trend. If volatility in price is accompanied by high trading volume, it may be said that the price move has more validity. Conversely, if a price move is accompanied by low trading volume, it may indicate weakness of the underlying trend. Price levels with historically high volume can also give traders an indication regarding where the best entry and exit points could be located for a specific trade setup. Typically, a rising market should see increasing volume, indicating continuous buyer interest to keep pushing prices higher. Increasing volume in a downtrend may indicate increasing sell pressure. Reversals, exhaustion moves, and sharp changes in price direction are often accompanied by a high volume spike, as these tend to be the times when the highest amount of buyers and sellers are active in the market. Volume indicators often also incorporate a moving average, measuring the volume of the candles in a given period and producing an average. This gives traders an additional tool to gauge the strength of the current market trend. If you like our content, please feel free to support our page with a like, comment & follow for future educational ideas and trading setups.
Education
by CRYPTOMOJO_TA
2
✅UNDERSTAND THE RISING WEDGE PATTERN✅ ☑️WHAT IS THE RISING WEDGE PATTERN? The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish). A rising wedge can be both a continuation and reversal pattern, although the former is more common and more efficient as it follows the direction of an overall trend. The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. ☑️KEY FEATURES • The price action temporarily trades in an uptrend (the higher highs and higher lows) • Two trend lines (support and resistance) that are converging • The decrease in volume as the wedge progresses towards the breakout The third point is seen more as a boost to the validity and effectiveness of the pattern, rather than a mandatory element. And it is applicable either for stocks trading mostly. ☑️SPOTTING THE RISING WEDGE Identifying a rising wedge is not so difficult. As a first step, you should eliminate all types of wedges that are present in the sideways-trading environment. The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. ☑️TRADING THE RISING WEDGE Trading the rising wedge pattern is pretty easy. After we correctly identified the pattern all we need to do is wait patiently for the breakout of the wedge to the downside. After the breakout is confirmed(usually at least a 4H candle needs to close below the broken level) we can place a limit order to short the pair on a pullback giving us a better risk to reward ratio. The correct Stop Loss should be placed above the last higher high established by the wedge before the breakout. What concerns the Take Profit level, it must be based on the technical levels below( If there are any). If not, then we might use Trailing Stop or just choose a minimal acceptable RR of 1:1,5 I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
11
Learn How Candlesticks Are Formed A candlestick chart reflects a given time period and provides information on the price's open, high, low, and close during that time. Each candlestick symbolizes a different period. Here are the main 4 elements of a candlestick: Body The body is the major component of a candlestick, and it's easy to spot because it's usually large and colored. Within the interval, the body informs you of the opening and closing prices of the market. The open will be below on a green candle. The reverse is true for a red candle. The market declined during the time, thus the open is the top of the body and the close refers to the bottom of a candle. Wick The wick is the line that extends from the top to the bottom of the body of a candlestick. The upper wick emerges from the body's top and indicates the greatest price achieved throughout the time. The lower wick commonly referred to as the tail, is at the body's bottom, marking the lowest price. Open Price The initial price exchanged during the development of a new candle is represented as the open price. If the price begins to rise, the candle will become green and the candle will turn red if the price falls. Close Price The closing price is the most recent price exchanged during the trading phase. In most charting systems, if the closing price is lower than the open price, the candle will turn red by default. The candle will be green if the close price is higher than the open price. High Price The highest price exchanged throughout the time is shown by the upper wick or top shadow. Its absence indicates that the price at which the asset opened or closed is the highest traded price. Low Price The lowest price exchanged throughout the time is shown by the lower wick or low shadow. When there is no such lower wick or shadow, this indicates that the price at which the asset opened or closed is the lowest traded price. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
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. Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
Forex Market: Who Trades Currencies & Why The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion. The forex market not only has many players but many types of players. Here we go through some of the major types of institutions and traders in forex markets: Commercial & Investment Banks The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades. Central Banks Central banks, which represent their nation's government, are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent. A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types. Investment Managers and Hedge Funds Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds and foundations. Multinational Corporations Firms engaged in importing and exporting conduct forex transactions to pay for goods and services. Individual Investors The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity. There is a reason why forex is the largest market in the world: It empowers everyone from central banks to retail investors to potentially see profits from currency fluctuations related to the global economy. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
7
🕵️‍♂️BASICS: WHAT IS A PIP❓ 👉What is a Pip? The unit of measurement to express the change in value between two currencies is called a “pip.” If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP. A pip is usually the last decimal place of a price quote. Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out to two decimal places). For example, for EUR/USD, it is 0.0001, and for USD/JPY, it is 0.01. 👉What is a Pipette? There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places. They are quoting FRACTIONAL PIPS, also called “points” or “pipettes” which equal a 10th of a pip. 👉How to Calculate Pip Value: 👉The value of pip depends on the following three factors: ✔️The quoted currency ✔️The volume of the trade ✔️And the exchange rate Based on these factors the fluctuation of even a single pip can have a significant impact on the value of the open position. The value of 1 pip is calculated by the following formula: The value of 1 pip = (Pip in decimal places * Trade Volume) 👉Example: 1 pip volume in EUR/USD is equal to 0.0001 Then 1 PIP VALUE equals: 100,000 EUR—> 100,000*0.0001= 10 USD 10,000 EUR—> 10,000*0.0001= 1 USD 1,000 EUR—> 1,000*0.0001= 0.1 USD 100 EUR—> 100*0.0001= 0.01 USD ✅Tell us about issues you had with pips value calculation/understanding in the beginning of your trader’s journey in the comments✅ 😊And See you next time😊 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
7 Stages to Financial Freedom and How You Can Get There Today we will discuss the stages you go through to reach freedom and how you can achieve it with awesome thinking models. The journey to financial freedom includes seven stages. 1. Clarity This is the stage where you are clear about your current financial position and where you want to be. 2. Self-sufficiency This is the stage where you can bear all your expenses by yourself. You are not dependent on anyone for your survival. This also means you earn enough to sustain your expenses. 3. Breathing room This is the stage where you have saved enough to sustain yourself for a couple of months, even if you lose your source of income right now. 4. Stability This is the stage where you have paid off all your debts and you also have a saving to sustain you for at least 6 months in advance. 5. Flexibility This is the stage where you have saved enough money to sustain yourself for two years in advance. 6. Financial independence This is the stage where your money earns more for you. It’s when you have enough investments and savings that the return you get is enough to sustain your expenses without working. At this point, you work on something because it’s your hobby, and not to earn money. 7. Abundant wealth This is the stage where you have accumulated so much money that you would not be able to spend all in your lifetime. But how do you progress through these stages and achieve financial freedom? Here are some awesome thinking models you can use to head towards financial freedom. 1. Time is more valuable than money. 2. Compounding can help you achieve it earlier 3. Make money with a side business 4. Learn to sell stuff As it should be your ultimate financial goal, it is never enough to talk about achieving financial freedom. I wish you luck, dear traders. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
7
DEMONS OF TRADING | Don't Think Like This Have you ever wondered what helped all those professionals of Wall Street become successful? You will be surprised, but the key to their reached heights is hidden in their mistakes. Yes, that is right. Most professional and successful traders made many mistakes before they got to the top. Making mistakes is ordinary and sometimes even necessary because you learn when you make them. The crucial point of this idea is never to repeat those mistakes because some errors may cost us a fortune. That is why we gathered 10 most common trading mistakes to prevent you from faults and losses. Little preparation Entry to the Forex market is relatively easy, so people have a light-minded attitude towards trading knowledge. Beginner traders, especially, think that theory is not a big deal, and they will be able to build it up without a peep. However, it does not work this way. Miscalculating the risk/reward ratio For some reason, many traders believe that higher win trades are more profitable than lower ones. Sometimes, this idea even gets paid off, and due to blind luck, trades, where the potential risk exceeds the reward, benefit. However, in most cases, such trades are a sure way to lose money in the longer term. Avoiding risk management Risk management should be the core of your trading because it helps cut down losses. Trading without risk management is like skydiving without a parachute. Neglecting market events Relevant market news is essential as economic events influence the direction of trading during the day. So, if you are not aware of the financial reports or earnings, you might skip the volatility. To win the game, you need to develop your thinking and how you participate in the game. You are in a market trading against professional traders. Your goal is to think like a professional. That is the only way to survive in this game. Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
Learn How to Trade Descending Triangle Pattern Descending triangle formation is a classic reversal pattern. It signifies the weakness of buyers in a bullish trend and bearish accumulation. ⭐️The pattern has a very peculiar price action structure: Trading in a bullish trend the price sets a higher high and retraces setting a higher low. Then the market starts growing again but does not manage to set a new high, setting a lower high instead. Then the price drops again perfectly respecting the level of the last higher low setting an equal low. After that one more bullish movement and one more consequent lower high, bearish move, and equal low. Based on the last three highs a trend line can be drawn. Based on the equal lows a horizontal neckline is spotted. ❗What is peculiar about such price action is the fact that a set of lower highs signifies a weakening bullish momentum: fewer and fewer buyers are willing to buy from horizontal support based on equal lows. 🔔 Such price action is called a bearish accumulation. Once the pattern is formed it is still not a trend reversal predictor though. Remember that the price may set many lower highs and equal lows within the pattern. The trigger that is applied to confirm a trend reversal is a bearish breakout of the neckline of the pattern. 📉Then a short position can be opened. For conservative trading, a retest entry is suggested. Safest stop is lying at least above the level of the last lower high. However, in case the levels of the lower highs are almost equal it is highly recommendable to set a stop loss above them all. 🎯For targets look for the closest strong structure support. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
5
Apt usdt short sell idea Greetings from Team : Trading The Tides. lets discuss a short sell oportunity on (APt usdt ) Target area for initiating short :5.4 DCA Limits : 5.5 TP :5,4.8,4.3 SL : 5.63 Hold Time : short- medium term Technical Chart Pattern: Almost at distribution zone , divergence on 30 min tf Posible liquidity area : 5.55-5.6 Exchange:Binance Rules : We use big capital with less leverage . Max leverage : 3x Better take trades with 1x. We only post the exact setup we are following for the trades . But DYOR . Not a Financial Advice ! From Team : Trading The Tides Like , Share ,Follow Thanks a lot and see you soon on the next trade .
Short
by xairuq
The Iceberg Illusion: The hidden logic of success We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success. This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’. You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success. We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running. There are no shortcuts. There are no overnight successes. The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
4
🟢STOP AND LIMIT ORDERS EXPLAINED🟢 ✴️Types of orders in trading There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level. ✴️Stops vs limits A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price. On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price. ✴️Stop orders explained You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order. ✴️Stop-loss orders A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price. ✴️Stop-entry orders A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price. If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price. Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum. ✴️Limit orders explained Like stop orders, limit orders can be used to open and close trades. ✴️Limit-entry orders A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above. ✴️Limit-close orders A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position. The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically. 😊Thank you for reading, guys😊 ✅Like and Subscribe for more education✅ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
36
EXPECTANCY: The Golden Key StatisticWhat is Expectancy? Expectancy is the one of the most important statistics in trading. Expectancy is how much you expect to make per trade. If you have an expectancy of 0.3 that means you make 30% of your average risk per trade. If you risk $1000 per trade, then you would receive $300 on average for EVERY time you took a trade. The baseline for a worthwhile & profitable strategy for most traders is an expectancy of 0.25 or higher. Anything more than 0.5 is outstanding. How do you calculate expectancy? A few different ways: (gross profit/# of trades)/Avg. Risk or ((Win%*Avg. Win)-(1-Win%*Avg. Loss))/Avg. Risk The table on the chart breaks down the required Win% and Profit/Loss ratio needed for an expectancy greater than 0.25. As you can see there are multiple ways to build a profitable strategy. What does Expectancy tell you? Expectancy is a crucial stat for traders because it lets them know if their strategy is valuable. The only way to know your expectancy is to track your trades! Tracking your trades is an essential part of the job as a trader yet many fail to do so. It can be done for free with some simple spreadsheet formulas and a bit of time. Track your trades, review your stats, improves your trades. Rinse & repeat. Thanks for reading, follow @Jlaing for more educational post about Money Management, Trading Stats, and more. I also stream a stock day trading chat room every morning at 9:15 EST right here on TradingView, come check it out and say what's up.
BITSTAMP:BTCUSDEducation
by JLaing
BTC - Practical Descending Triangle Example! 🖋Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. I find BTC chart interesting as it is forming a textbook Descending Triangle, so I thought it would be a practical example to highlight it now. 📌 First, let's start with the definition of a Descending Triangle: 🗒 What is a Descending Triangle? A descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of equal lows. 📉 Traditionally, a regular descending triangle pattern is considered to be a bearish chart pattern. However, in my opinion, even thought a bearish continuation is more probable, all triangles are bilateral patterns. Means they can be broken either side. 📌 How to trade a Descending Triangle pattern? 🗒 Remember: A pattern would be an idea, until activated. In our case, for the descending triangle pattern to get activated, we need an H4 candle close below the lower bound. (around 15500 in red) In parallel, for the bulls to kick in, and invalidate the bearish scenario, we need an H4 candle close above the upper bound. (around 17100 in blue) 📌 Trade / Risk Management: 🗒 When the pattern is activated, you can enter immediately after the candle closes, or wait for it to retest the trendline first. Regarding the stop loss, it goes above/below the last high/low from the other side. Regarding the take profit, the project would be the biggest distance between the highs and lows inside the triangle. Hope you find this post useful. Let me know if you have any questions. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
38
Learn How to Apply Multiple Time Frame Analysis Hey traders, In this article, we will discuss Multiple Time Frame Analysis. I will teach you how to apply different time frames and will share with you some useful tips. Firstly, let's briefly define the classification of time frames that we will discuss: There are 3 main categories of time frames: 1️⃣Higher time frames 2️⃣Trading time frames 3️⃣Lower time frames 1️⃣Higher time frames are used for identification of the market trend and global picture. Weekly and daily time frames belong to this category. The analysis of these time frames is the most important. On these time frames, we make predictions and forecast the future direction of the market with trend analysis and we identify the levels, the areas from where we will trade our predictions with structure analysis. 2️⃣Trading time frames are the time frames where the positions are opened. The analysis of these time frames initiates only after the market reaches the underlined trading levels, the areas on higher time frames. My trading time frames are 4h/1h. There I am looking for a confirmation of the strength of the structures that I spotted on higher time frames. There are multiple ways to confirm that. My confirmations are the reversal price action patterns. Once the confirmation is spotted, the position is opened. 3️⃣Lower time frames are 30/15 minutes charts. Even though these time frames are NOT applied for trading, occasionally they provide some extra clues. Also, these time frames can be applied by riskier traders for opening trading positions before the confirmation is spotted on trading time frames. Learn to apply these 3 categories of time frames in a combination. Start your analysis with the highest time frame and steadily go lower, identifying more and more clues. You will be impressed how efficient that strategy is. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
73
The risk-to-reward ratio is one of the most important thingsHi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. DEFINITION The risk/reward ratio, sometimes known as the R/R ratio, is a measure that compares the potential profit of a trade to its potential loss. It is calculated by dividing the difference between the entry point of a trade and the stop-loss order (the risk) by the difference between the profit target and the entry point (the reward). Limiting Risk and Stop Losses Unless you're an inexperienced stock investor, you would never let that $500 go all the way to zero. Your actual risk isn't the entire $500. Every good investor has a stop-loss or a price on the downside that limits their risk. If you set a $29 sell limit price as the upside, maybe you set $20 as the maximum downside. Once your stop-loss order reaches $20, you sell it and look for the next opportunity. Because we limited our downside, we can now change our numbers a bit. Your new profit stays the same at $80, but your risk is now only $100 ($5 maximum loss multiplied by the 20 shares that you own), or 80/100 = 0.8:1. This is still not ideal. What if we raised our stop-loss price to $23, risking only $2 per share or $40 loss in total? Remember, 80/40 is 2:1, which is acceptable. Some investors won't commit their money to any investment that isn't at least 4:1, but 2:1 is considered the minimum by most. Of course, you have to decide for yourself what the acceptable ratio is for you. Notice that to achieve the risk/reward profile of 2:1, we didn't change the top number. When you did your research and concluded that the maximum upside was $29, that was based on technical analysis and fundamental research. If we were to change the top number, in order to achieve an acceptable risk/reward, we're now relying on hope instead of good research. The risk-to-reward ratio is one of the most important things that traders and investors should watch out for before placing a trade. Once you’ve calculated the R/R ratio for a trade, you can place your stop-loss order to limit the losses. Similarly, you can also place the book profit order to exit the position at your preferred price. If you are new to stock trading, then a 1:2 R/R ratio should be ideal. You can start experimenting after gaining some experience. But as stock trading is risky, do your own research before you start investing. You can also consult an investment advisor if your goal is to build a long-term stock portfolio. Trade with care. If you like our content, please feel free to support our page with a like, comment & follow for future educational ideas and trading setups.
by CRYPTOMOJO_TA
11
Cognitive Biases in Forex Trading This article explores the cognitive biases in forex trading. The biases discussed in this article can play a significant role in any form of speculative trading and investing, not just forex trading. A cognitive bias is a systematic flaw in how we think. Cognitive biases are present in every decision we face. Anchoring Bias. People rely too much on reference points from the past when making a decision for the future - they are "anchored" to the past. Loss Aversion. This is when people go to great lengths to avoid losses because the pain of loss is twice as impactful as the pleasure received from a win. Confirmation Bias. The confirmation trap is when traders seek out information that validates their opinions and ignore any theories that invalidate them. Superiority Trap. Many traders in the past have lost large sums of money simply because they have fallen prey to the mentality of overconfidence. Herding. Many traders in the past have lost large sums of money simply because they have fallen prey to the mentality of overconfidence. Pay close attention to your decision making to spot the fallacies. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
12