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Beginner's Charting Attempt 1: COSTFirst: Any constructive criticism is very much appreciated and helpful! :) So here I am, an absolute beginner with a couple crayons of knowledge: I just drew in what I observed to be wedges. The first a rising bullish wedge that continued to a bullish trend. That wedge was followed by a falling bearish(?) wedge. I thought a continuation pattern (bearish) was more likely than a reversal (bullish) because of resistance (COST had previously hit that high before and didn't break through). I might've used some of the terminology wrong, honestly. But I'm just trying to journal out my thought process to be able to communicate and work through my own ideas and opinions.
NASDAQ:COSTShort
by bexlua
CADJPY(UPDATE)After being stopped out in the previous trade, I've taken another short on CadJpy 4H time frame. There is a slight divergence and a 1H OB on the left, probably this is to grab liquidity as to why my previous trade was a lost.There is an reaction on the 1H OB, its as to why i've taken this trade. Any kind of strategy still face losses, include SMC, nothing has a win rate of 100%, we face lost all the time. For those who are taking trades on CADJPY, please risk on your own risk management, I'm just showing my analysis and I'm not a financial expert advisor.
Short
by Student_of_Forex
MATIC/USDTMATIC/BTC MATIC/BTC has discovered solid help at $1.44 Since the May crash Matic has been on a slow descending pattern from the top at $2.85 and reached as far down as possible at $0.64. Presently Matic/btc is exchanging at $1.47 and if Matic can flip this vital obstruction over the 38.20% Triangle level into help above $1.77, Matic looks ready for a major move (95% back to ATH ) from this help zone . 185% Gain to the 161.80% Triangle target at $4.22. See past examination beneath. Cheerful Trading :) MATIC/BTC Script Buy Signal set off EMA Crossover SMA Confirms the Bottom and Reversal in Price back to May Highs close to the ATH (145% Gain). See past investigation beneath. Glad Trading :) Polygon (Matic) has discovered solid help @ $1. Since the May crash Matic has been on a lethargic descending pattern from the top @ $2.85 and the base at $0.64, as of now Matic is exchanging at $1.04. Matic looks ready for a major move (175% back to ATH ) from this help zone . Glad Trading
M
by DeclanBrock
4
Technical Formula for Understanding MARKET PSYCHOLOGYI lost a lot of money in Tehran Stock Exchange. Because simply I arrived too late. I read a lot in past year and now I can say why I lost a lot of money and how can prevent it in future. It's simply the psychology of the market. Retailers like me get in when everybody says that something is good and profitable; Seriously Everybody! Tonight I was thinking about a technical formula of analyzing market psychology to find better entries in markets and I came up with this. There is 4 waves in every market/stock/digital coin/etc. Wave Zero: Smart money come here. It happen in things that are very cheap and nobody talks about them. Wealthy investors never buy expensive thing, remember! On the chart you can se a slight rise in overall volume but price do not show a big rise. It respect the resistance. Price don't break it's prior resistance but the bottom price rises. You can see higher lows in the chart but no higher high. Smart money controls the price and didn't buy a lot in one week. Because they don't want people get noticed yet. So they keep buying a long period but their positions sizes are low. After buying 75% of their desired volume, they but the other 25% faster. So you can see a rise in price, higher highs and higher low and finally the breakout happens and first wave starts. Wave One: Obvious rise in price and volume but still not everybody knows. News agencies don't talk about it yet. The only group who find out are seasoned traders. They are going to buy in the pullback of this wave. So this wave has the shortest retracement. Because there is not a lot of rise in price and experienced traders have bigger money than retailers. Wave Two: This wave has the longest candles and biggest gain. Everybody is happy now and enjoy the profits. At the end of this wave news agencies start to talk about it. Gurus publish some analysis and say that it can go even higher. Slowly retailers getting noticed. But they are not confident about it yet. Smart money starts to sell about 50% of it's positions. Because retailers don't have a lot of money it takes time for them to buy the pullback so we have a longer retracement than Wave One. Notice, smarter retailers come here and others just come when the Wave Three starts. Wave Three: This is Euphoria. People are exaggerating about the stock. They think it worth a lot higher and they think it can go to the moon. Here we see lower volumes than prior waves because in this stage retailers move price higher and they don't have a lot of money. Slowly sells rise. Volume keep rising but the price lose it's momentum and the candles getting short until red candles and dojis show up. BOOM! Smart money and the experienced traders start selling all of their stocks. From here you can see price getting down and people get nervous. This is the real sign of down trend. So summary: How to find out where is smart money? Go search cheap things in weekly timeframes. Find something that is consolidated and you can see a slight rise in overall volume. Price shows higher lows but no higher high; inside consolidation. It's not a good entry for retailers because price can stays here for months. There is no sound about this stock in market. How to recognize first wave? Obvious rise in price and volume. Price broke from a consolidation lately. Nobody noticed it yet; it's very important! Don't look in news and guru groups for good stocks/digital coins/etc because if they know we are not in first wave. A few knows about it and they are hopeful. It's Optimism phase. The last sign is that retracement doesn't last longer than 4-5 weeks. After breakout from top of wave one, buy the pullback to the broken resistance. It's the best entry for retailers. When to sell? When news start talking about your stock sell 50%. Highest candles, highest volume, longer pullback, people who have it are joyful and excited and non experts look for opportunities to buy the stock. These are signs of second wave. It's the excitement phase. After another breakout from top the last wave starts. You can see retailers are super optimist about the stock. No bad News about the stock but you can see decreased volume. You can sell other 50% here. It's the Euphoria. People who invest in long term can benefit from above explanation. One last tip: traders who work with Elliott waves, the first wave is the first Elliott wave, the second one is the third Elliott wave and the last wave in my explanation is the fifth wave in Elliott theory. Tell me if it helped you or you have other ways to recognize market psychology by technical analysis.
Education
by aasgarib
13
Why most people fail as retail traders?I see two main reasons which complement each other for the high rate of failure. First and foremost, the media and the industry promote this idea that it’s easy to become a profitable trader and anybody can go it. This is, of course, not true. Theoretically, anybody can do it if willing to put the effort and approach it as a business. Practically almost nobody approaches trading with the same rigorousness as any other professional endeavor. Let’s put aside the first reason, about which there is not much we can do. A big chunk of the industry relies on peoples being naive and we’re not going to change that. On top of the first reason, we have a second reason related to people themselves. Most of those who try trading financial markets simply don’t manage their emotions and risk well enough to survive the learning curve. Managing your own emotions turns out to be a complex endeavor and constantly changing market conditions lengthen the learning curve. One of the things that makes this business so attractive is also the main thing that makes it so difficult to master. The direct and sometimes violent feedback you receive from the market, after each trading decision, has an astonishing impact on a human’s ability to keep his psychological well being in check and control his own reactions. It has the potential to disrupt executive functions and trigger instinctual “fight or flight” responses. This leads to emotional trading or trading on tilt which quickly generates more losses than any other mistake you could make in this business. Most other jobs have a protective buffer zone between usual day to day work decisions and the ultimate feedback — end of the month paycheck. This profession doesn’t. Every little call you make has an immediate impact on your capital. Every little mistake can take a portion of your capital away and every good decision can bring it all back and more. This kind of psychological exposure is heavily distressful and being aware of its mechanisms makes a huge difference. So … psychology differentiates the pro. Don’t get me wrong … professional discretionary traders are not emotionless but are much more aware and in control of their reactions. The successful pro deeply understands that trading is mainly about people's perceptions and the rest are just details. You may ask yourself how can such a level be reached? A starting point is to stay away from any market, financial instrument, time frame, trading technique, or any combination of those that doesn’t fit who you are deep inside. The least the exposure to triggers that can awake the demons within, the best. Always seek strategies that you understand and match your inner self. For example … if you are impatient trade shorter time frames, if you are very risk-averse don’t use huge margin, if you are risk-averse but you don’t have enough capital use margin with a tight risk management (maybe options), if you have a statistical mind try quantitative approaches etc. There are infinite possibilities to adapt to yourself and is a must to do it if you want to have a chance. It always amuses me to see the vast majority of educational resources geared towards what market does when most of the success in this business is knowing how you adapt to the market, whatever it may do. And, of course, the market is, more or less, the other traders.
COINBASE:BTCUSDEducation
by Mihai_Iacob
1
XAUUSD in route for a nice retracement? Watching this retracement closely as we embark on another voyage with gold this year.... how low can we go? (1860-1830's would be ideal) Like this chart if it brought a smile to your face in this stressful day :D OANDA:XAUUSD I am having a bit of fun while doing my analysis with this chart, it is good for the heart. I will be posting more thorough analysis from here on Gold overall trend is bullish(Monthly chart), I believe there won't be a correction until a Vaccine for Covid is passed or around elections. This chart is for educational purposes, this is not an investment advice.
FOREXCOM:XAUUSDLong
by Cangaceiro
2