How to Trade the Head & Shouders Top and Bottom Chart PatternHey Traders so In my last video we discussed what is the 123 top and 123 bottom formation and how it can benefit you in your trading. Today I want to go over one of my favorite chart formations in technical analysis called the Head & Shoulders top and bottom.
Enjoy!
Trade Well,
Clifford
Learntotrade
The Art of Technical Analysis for Beginners 123 Top & BottomsHey Traders so In my last video we discussed what are Fibonacci Retracements and how they can benefit you in your trading. Today I want to go over one of the most powerful chart formations in technical analysis called the 123 top and 123 bottom.
Enjoy!
Trade Well,
Clifford
History of Forex | From Ancient to the Modern Day
We have come a long way from the previously practiced barter system to the modern-day system of trading currency. Following is a brief summary of the evolution of currency and how it gave rise to Forex Trading.
Here are the main stages that are illustrated on the chart:
1️⃣The Ancient system of Trading - Trading with Gold
As early as 6th century BC, the first gold coins were produced, and they acted as a currency because they had critical characteristics like portability, durability, divisibility, uniformity, limited supply and acceptability.
2️⃣Bank Notes Originated - Deposited Gold in banks in exchange for banknotes
3️⃣Role of Geography - Various banks of different regions printed different currencies
Gold Standard - Currency pegged to gold
In the 1800s countries adopted the gold standard. The gold standard guaranteed that the government would redeem any amount of paper money for its value in gold. This worked fine until World War I where European countries had to suspend the gold standard to print more money to pay for the war.
4️⃣Bretton Woods System - Currency pegged to USD
The first major transformation of the foreign exchange market, the Bretton Woods System, occurred toward the end of World War II.
The Bretton Woods Accord was established to create a stable environment by which global economies could restore themselves. It attempted this by creating an adjustable pegged foreign exchange market. An adjustable pegged exchange rate is an exchange rate policy whereby a currency is fixed to another currency. In this case, foreign countries would 'fix' their exchange rate to the US Dollar.
5️⃣Birth of Floating Currency - Currency that is not pegged to any assets or other currencies is known as a 'floating currency'.
And what will be next?
Very hard to say but blockchain technologies will make the system change again.
❤️Please, support this educational post with a like and lovely comment❤️
TYPES OF TRADING ORDERS AND HOW TO USE THEMPending orders
Somewhere you can find the term as "Deferred orders".
These are orders that will be filled in the future, once a certain condition is met.
Most often this condition is reaching a certain market price.
The most popular pending orders are Stop and Limit!
Both types of orders become market orders when the initially set price is reached.
The difference between them is that Stop Orders can be activated at a worse price than the set price, depending on market conditions.
Limit orders cannot be activated at a price lower than the set price, the price must be either equal to the set price or even more advantageous.
Depending on the purposes of the trade, different deferred orders are used.
A breakout of a level is traded with a Stop order
A pullback from a level is traded with Limit order.
The types of Pending Orders are:
Buy Limit;
Sell Limit;
Buy Stop;
Sell Stop;
OTO;
OCO;
and other.
Market order
This is an order where you enter a trade, regardless of buy or sell, which is executed at the current best price.
For example, if you want to buy GBP/USD, you click directly on the corresponding button and the trading platform automatically places the deal on the market.
When you click on the "Sell" or "Buy" button, you actually place a market order.
Keep in mind that depending on market conditions, there may be some difference between the price you see and the price at which the order will be executed.
Stop Forex orders - Buy Stop and Sell Stop
The Stop orders to enter a deal are different from the Stop Loss order to limit the loss!
Buy Stop order is used when you want to buy at a level higher than the current market price.
It is placed higher than the level at which the price is currently.
Sell Stop order is used when you want to sell at a level lower than the current market price.
It is set lower than the current price level.
For example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will continue to move in an uptrend.
In this situation you have two options:
To sit in front of the screen waiting for price to reach 1,1960 so you can buy, or;
To place a Buy Stop order at the 1,1960 level.
However, if you think that the price will fall in the coming periods, instead of staying at the computer and wait for a convenient time to sell, you can place a Sell Stop order at a level lower than the current market price - on the chart 1.1760.
Limit Forex orders / Buy limit and Sell Limit
Buy Limit order is used when you want to buy at a level lower than the current market price.
It is set lower than the current price level.
Sell Limit order is used when you want to sell at a level higher than the current market price.
It is placed higher than the level at which the price is currently.
For example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will bounce off the level and go into a downtrend.
In this situation you have two options:
To sit in front of the screen waiting for price to reach 1,1960 so you can sell, or;
To place a Sell Limit order at the 1,1960 level.
However, if you think that the price will fall in the following periods and then rise, instead of you sitting at the computer and wait for a convenient time to buy, you can place an order to buy a limit below the current market price - on chart 1,1760.
Above is a summary chart of the orders and where they are placed.
Let’s summarise:
Buy Limit - pending buy order placed at a price lower than the current one;
Buy Stop - pending buy order placed at a price higher than the current one;
Sell Limit - pending sell order placed at a price higher than the current one;
Sell Stop - pending sale order placed at a price higher than the current one;
OCO orders / One Cancels The Other
The OCO order is a combination of two orders to enter into a trade.
One order is placed above the current market price and the other below the current market price.
When one of the orders is reached, it is executed and the other one is automatically deleted from the trading platform.
For example, EUR/USD is currently trading at 1.1850.
You expect great volatility in the market and you do not want to miss the movement.
In this case you place an OCO Forex order at the level of 1.1880 (above the market price) in anticipation of an upside move and at the level of 1.1820 (below the market price) in case the price goes down.
When the market reaches 1.1880, you will buy EUR/USD at this level, and the order placed at 1.1820 will be deleted from the trading platform.
OTO orders / One Triggers The Other
OTO allows the trader to place two orders simultaneously, the second one being activated after the first one.
This type of order allows many different combinations.
For example, a buy order can be placed at a pre-set price, above the current one (Buy Stop) and a second order can be placed together with it to limit the loss from the buy order, in case the price goes in the opposite direction.
In this case, the loss limit order will only be activated if the buy order is activated.
The orders described so far are for entering into a trade, but you must also exit the trades.
This is done by using “Stop Loss” and “Take Profit”.
Trailing stop
Trailing stop is an order to limit the loss, which moves along with the market price.
It can be said that this is a moving Stop Loss.
And here is how to do it!
Suppose you want to buy GBP/USD at a price of 1.2820.
You place a trailing stop at a distance of 20 pips at a price of 1.2800.
When the price goes in your direction and reaches the level of 1.2840, then the trailing stop will move by 20 pips or at the level of the entrance to the transaction.
Then if the price reaches the level of 1.2860, then the trailing stop will move to the level of 1.2840.
Keep in mind that if the price returns from 1.2860 to 1.2850, the trailing stop will NOT go down to 1.2830, but it will remain at 1.2840.
If it was to move down back with the price, it makes no sense, because it will never be reached and will not be able to limit the loss of the deal.
And then you will find out first hand what Margin Call and Stop Out is!
Another important feature to keep in mind is that the trailing stop is only active if the trading platform is active.
If the platform is closed, then you do not have a Stop Loss order at all!
Conclusion
These are the most frequently used orders on the Forex market and they are totally enough, there is no need to complicate trading.
Before you start trading live, get familiar with the conditions of the broker regarding the orders.
Make sure that you understand them and that you can use them correctly.
The best teacher remains the practice, therefore, open a demo account and test the capabilities of the platform.
👍 Please support this tutorial with like and comment so we can help more people together.
Thank you in advance! 🙏
History of Forex | From Ancient to the Modern Day
We have come a long way from the previously practiced barter system to the modern-day system of trading currency. Following is a brief summary of the evolution of currency and how it gave rise to Forex Trading.
Here are the main stages that are illustrated on the chart:
1️⃣The Ancient system of Trading - Trading with Gold
As early as 6th century BC, the first gold coins were produced, and they acted as a currency because they had critical characteristics like portability, durability, divisibility, uniformity, limited supply and acceptability.
2️⃣Bank Notes Originated - Deposited Gold in banks in exchange for banknotes
3️⃣Role of Geography - Various banks of different regions printed different currencies
Gold Standard - Currency pegged to gold
In the 1800s countries adopted the gold standard. The gold standard guaranteed that the government would redeem any amount of paper money for its value in gold. This worked fine until World War I where European countries had to suspend the gold standard to print more money to pay for the war.
4️⃣Bretton Woods System - Currency pegged to USD
The first major transformation of the foreign exchange market, the Bretton Woods System, occurred toward the end of World War II.
The Bretton Woods Accord was established to create a stable environment by which global economies could restore themselves. It attempted this by creating an adjustable pegged foreign exchange market. An adjustable pegged exchange rate is an exchange rate policy whereby a currency is fixed to another currency. In this case, foreign countries would 'fix' their exchange rate to the US Dollar.
5️⃣Birth of Floating Currency - Currency that is not pegged to any assets or other currencies is known as a 'floating currency'.
And what will be next?
Very hard to say but blockchain technologies will make the system change again.
❤️Please, support this educational post with a like and lovely comment❤️
The Art of Technical Analysis for Beginners part 3Hey Traders so In my last video we discussed what is support and resistance and why it is the most important concept in trading. Today I want to go over of the best tools we can use to find better trades called Fibonacci Retracements.
Enjoy!
Trade Well,
Clifford
PSYCHOLOGY OF A TRADER | MASTER EMOTIONS & MASTER THE MARKET
The market is driven by people.
The crowds are always behind strong market rallies.
What the majority fails to recognize is the fact, that being chaotics in its nature, the markets are always trading in predictable patterns.
Believe it or now, but the market participants are driven by the same emotional impulses. It does not really depend on how wealthy is the person.
With the core motive being to make a ton of money with a little risk possible, we can derive a universal archetype.
Every asset, every financial instrument has an element of a "potential value". Being 100% subjective, an attempt to calculate the future value drives the market.
Depending on the current expectation of the crowd and its emotions it is necessary for a professional trader to learn to play with its behavior.
With many years of constant observations, the cyclic psychological curve was derived to explain the relationships between our emotions and market cycles.
On the chart, I have drawn 9 main stages of trader's psychology:
😶INDIFFERENCE - No opportunities are spotted, searching for the right pick.
🙂OPTIMISM – Positive outlook leading us to buy a certain asset
😃EXCITEMENT – Being initially right in our pick, we feel excited as bulls push the market to the new highs
The moment of happiness and feeling of being "a true investor"
🤑GREED – Being thrilled we start to ignore warning signs and add more and more cash to the market believing that the market will never stop.
😕ANXIETY – The market starts taking our gains back. Being biased and nihilistic we keep holding the position, thinking that it is just a pullback.
😩PANIC – Tremor. We are frozen. Emotions are draining our power. We are clueless and helpless. We totally lose the sense of control.
😭DEPRESSION – Position is closed. Money is lost. Considering trading & investment industry to be a scam.
🤔HOPE – The dawn. The market returns back to its normal state. Aspiration & desire to start again.
😆RELIEF – Again we start to believe in our strength. We return and the cycle repeats.
Do you recognize yourself in these stages?
Please, support our work with like and comment. It really helps.
📚13 Topics You MUST 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.
❤️Please, support this idea with a like and comment!❤️
Is it possible for token ALICE to cost $ 100? Yes!If the developers of the game My Neighbor Alice follow the set plan, the price of the pair ALICE / USD could reach the limit of 100 USD at the end of this year!
If you don't just wait. You can try Trading and speculate on price fluctuations. It's just a matter of finding out how. It won't be that hard...
Trading is our specialty! Your UCT.
The Art of Technical Analysis for Beginners part 2Hey Traders so In my last video we discussed what is technical analysis and how the markets move in 3 ways. Today I want to go over some more basics about price action and one of the most important concepts in all of trading support and resistance.
Enjoy!
Trade Well,
Clifford
Break & Retest using fibonacci!The fibonacci tool can be a great asset to your trading arsenal when looking for potential entry and take profit areas!
This trade we saw a clear break in structure followed by a retest of prior resistance with a 38.2 fibonacci level to use as added confluence. Fibonacci extensions were also used to identify take profit areas!
How I Use TradingView's Tools to Analyse Stock FundamentalsA short insight into the tools I use to check whether I am investing into a good company fundamentally. Here we look at EBITDA, Free Cash Flow, Price-Earning Ratio & Total Debt.
Please Like / Comment / Share this video with anyone that you think may find it useful.
Continuation Patterns GBPNZDRecent move executed on GBPNZD. An impulsive move upwards breaking structure to form a flag pole followed by a corrective pattern to form a flag.
Always look for multiple confluences to enter your trades. In this case we had the pattern itself at play as well as a potential order block and the 50% fibonacci level. A perfect scaling oppurtunity also presented itself on break of the pattern. Our take profit target was set using the previous price range of the last impulsive move up. (flag pole) Once the area of interest was reached we notice multiple rejection candles and close the trade.
Possible Sell Coming ?Points to Consider -
The death cross preceded the economic downturns in 1929, 1938, 1974, and 2008. There have been many times when a death cross appeared, such as in the summer of 2016, when it proved to be a false indicator.
Analysts also watch for the crossover occurring on lower time frame charts as confirmation of a strong, ongoing trend. Regardless of variations in the precise definition or the time frame applied, the term always refers to a short-term moving average crossing over a major long-term moving average.
Hidden divergences signal a possible trend continuation.
FIB Confluence zone acting as Resistance.
This is just an idea for Analysis.
Please do not SELL based just on this :)
The Art of Technical Analysis for Beginners part 1Hey Traders so today I wanted to make a brief tutorial on technical analysis for those who are new to trading. This will be a short series that gives you the tools to understand the charts without any indicators ever needed. This analysis can be applied to all markets Stocks, Forex, Commodities, Crypto etc...
Be on the lookout for future videos in the series and I hope it helps those who are new to trading!
Enjoy!
Trade Well,
Clifford
EURGBP SHORT No nonsense approach simple clean price action trading all info in picture apart from the strategy (use your own SL according to your OWN risk management
THIS IS NOT FINANCIAL ADVICE, MY OWN ANALYSIS FOR PERSONAL USE)
Direct Message me for info.
FOLLOW SHARE LIKE IF YOU WANT MORE clean ideas
looking to make a change in all this guess work, want to make money and grow confidence when trading, let me know.
82fx
short GBPCHF to 1.2650No nonsense approach simple clean price action trading all info in picture apart from the strategy (use your own SL according to your OWN risk management
THIS IS NOT FINANCIAL ADVICE, MY OWN ANALYSIS FOR PERSONAL USE)
Direct Message me for info.
FOLLOW SHARE LIKE IF YOU WANT MORE clean ideas
looking to make a change in all this guess work, want to make money and grow confidence when trading, let me know.
82fx
LONG GBPUSD TO 1.4555No nonsense approach simple clean price action trading all info in picture apart from the strategy (use your own SL according to your OWN risk management
THIS IS NOT FINANCIAL ADVICE, MY OWN ANALYSIS FOR PERSONAL USE)
Direct Message me for info. FOLLOW SHARE LIKE IF YOU WANT MORE
Follow and share for more clean ideas looking to make a change in all this guess work, want to make money and grow confidence when trading let me know.
82fx
EURGBP SHORT to 0.8559No nonsense approach simple clean price action trading all info in picture apart from the strategy (use your own SL according to your OWN risk management
THIS IS NOT FINANCIAL ADVICE, MY OWN ANALYSIS FOR PERSONAL USE)
Direct Message me for info. FOLLOW SHARE LIKE IF YOU WANT MORE
Follow and share for more clean ideas looking to make a change in all this guess work, want to make money and grow confidence when trading let me know.
82fx