Quarter Theory: Mastering Algorithmic Price Movements!Greetings Traders, and welcome back!
In today's video, we’ll dive deep into Quarter Theory—a powerful concept that can take your trading to the next level. We’ll break it down step-by-step, explain how it works, and show you how to implement it into your strategy.
Quarter Theory is all about studying the algorithmic price delivery within the markets. It’s grounded in Time and Price Theory, which suggests that significant market moves often occur at specific price levels and times. This foundational idea will help us predict price movements more effectively.
If you haven’t already, be sure to check out the previous videos in the High Probability Trading Zones playlist for the key concepts you’ll need to fully grasp today’s content. For those watching on TradingView, links to previous videos will be included to help you catch up.
Mastering Institutional Order Flow & Price Delivery:
Premium & Discount Price Delivery in Institutional Trading:
We’re kicking off a weekly series on Quarter Theory, with the goal of helping you build a robust trading model by the end. Stay tuned!
Best Regards,
The_Architect
Liquidity
Gold Spot (XAU/USD) Nears Key Resistance: Major Move Ahead?Gold Spot (XAU/USD) Market Analysis - August 13, 2024
Daily Chart Overview
- Broadening Wedge Pattern: The daily chart reveals a broadening wedge pattern, often associated with market indecision and potential reversal signals. This pattern, characterized by expanding volatility, suggests that the market is at a critical juncture, with the possibility of either continuing its uptrend or facing a significant correction.
- Ascending Channel (Bullish Flag): Within this broader wedge, a smaller ascending channel (bullish flag) has formed. While typically a continuation pattern, the flag is currently struggling to maintain its structure as price action approaches a significant resistance zone.
- Key Resistance Levels (Daily Liquidity Zone):
- The price is hovering just below the Daily Liquidity Zone (LQZ), ranging between 2,477.654 and 2,484.053. This area also aligns with the previous higher high, marking it as a critical resistance zone.
- A failure to break above this zone could lead to a reversal, while a successful breakout would open the path for continued bullish momentum.
- Support Levels:
- The Lower boundary of the ascending channel around 2,454.606 (which aligns with the 15M Liquidity Zone) serves as immediate support.
- A breakdown from this level could trigger a deeper correction towards the lower trendline of the broadening wedge, likely around the 2,420 - 2,430area.
4-Hour and 1-Hour Chart Insights
- Broadening Top Formation (4H): Echoing the daily pattern, the 4H chart displays a broadening top, indicating increased market volatility and a potential battle between buyers and sellers.
- Descending Channel (1H): A descending channel has formed within the broadening top on the 1H chart, suggesting a short-term bearish bias. This descending channel is pressing against the 4H and Daily LQZ, increasing the likelihood of a significant price movement soon.
15-Minute Chart Considerations
- Bear Flag Formation: The 15M chart shows a bear flag, a continuation pattern that could signal further downside. This pattern is forming near the 15M LQZ, reinforcing the importance of this support level.
- Potential Breakdown: The price is testing the lower boundary of this bear flag. A breakdown here could lead to a continuation of the downtrend, particularly if the 15M LQZ fails to hold.
Mass Psychology & Market Sentiment
- Indecision and Volatility: The broadening patterns across multiple time frames reflect growing market indecision and volatility. Traders should be cautious as this setup often leads to sharp and unpredictable price movements.
- Watch for Divergences: Keep an eye on potential bearish divergences on momentum indicators like RSI or MACD, particularly around the key resistance levels. These could provide early signals of a market reversal.
Trading Strategy Recommendations
- Wait for Confirmation: Given the critical resistance at the Daily LQZ, it’s prudent to wait for clear confirmation of either a breakout or a reversal. A strong daily close above the LQZ would be more convincing for bullish continuation.
- Short-Term Bias: On the lower time frames (15M and 1H), the bias remains bearish. Caution is advised for long positions until there's a definitive break above resistance.
- Risk Management: Considering the broadening patterns and associated volatility, tighter stop losses or reduced position sizes are recommended to manage risk effectively.
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Summary: Gold Spot (XAU/USD) is at a crucial inflection point, with significant resistance at the Daily LQZ and potential support at the 15M LQZ. Traders should closely monitor price action in the coming sessions, as a decisive move in either direction could set the tone for the next major trend.
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GBPUSDGood morning traders, today the market is moving because we have fundamentals both in the pound now at 7:00 and in the afternoon NY we are going to look for a window of opportunity to take advantage of the day. For today's first leg in London, it presents a bullish scenario. Once I get my psychological point and everyone is induced to buy, we will look for sales.
XRP/USD at a Crossroads: Major Move Imminent!Welcome to another Wolf of Block Street analysis, where we dive into the latest market trends and chart the potential paths ahead!
XRP/USD is at a pivotal juncture, with indicators pointing to a potential significant move in either direction. After years of consolidation, XRP has established strong support at key levels, suggesting that a breakout above recent resistance could trigger a major bullish move. Howewer on the bearish side, XRP is contending with resistance from a downtrend line and declining volume, which eventually could lead to the liq grab to the downside before further upside.
The coming trading sessions will be crucial in determining whether XRP breaks higher or dips lower, making this a critical moment for traders.
Fundamentally, I still believe XRP is the best crypto coin, thanks to Ripple’s extensive work in building a robust payment network and continue their work despite the SEC lawsuit. XRP is faster and more efficient than Bitcoin in every way, offering quicker transaction times and lower fees. An NFT platform is also being built on the XRP-Ledger and we can finally say that Bitcoin and XRP are the only digital assets that have achieved any regulatory clarity!
On that note, thanks for reading!
Make sure to follow me on X for weekly updates: @PuppyNakamoto
Bitcoin - The dump before the massive pump !!!By now a lot of traders and investors are very nervous about Bitcoin's next move, and justifiably, I don't think many people saw this particular setup coming, although it is normal for Bitcoin to have such volatility.
However, In the above chart, we see a particular situation which could present itself with various moves and targets. This is combined with a possible Black Swan event (meaning large scale military conflict) or even significant loss of confidence in the petro dollar, due to external influence such as BRICS and the mere fact that the USA is printing more $$$ into their way into oblivion and hyper-inflation. Why does it matter if the USD takes a hit? Unfortunately at this current point in time, Bitcoin seems to be +80% correlated with the S&P500.
Thus, we are at a critical point in the market where, based on previous price action (chart history) and some issues that have affected and/or will affect the market, we now have 5x Potential targets as follows:
Target #1 = Daily FVG+OB: Range between $57,736.05 to $59,535.00
Target #2 = Daily Gap: Range between $45,288.65 to $46,800.00
Target #3 = Daily Gap: Range between $44,396.50 to $45,242.12
Target #4 = Daily FVG+OB: Range between $43,399.98 to $44,331.10
Target #5 = Daily FVG+OB: Range between $40,300.24 to 41,394.34
Target #1 is where the current price is centered inside a DAILY FVG + OB. This would be the optimal reversal point, however going by my Level count, we are still in Level 2 which means an inevitable drop again to a lower price point, either within the Lower FVG+OB range between $52,088.00 to $54,476.47 or to one of the lower targets #2 through to 5. My guess is there will be another dump, either due to some financial issue or possible military action in the Middle East or Ukraine. I labelled this as Possibility #1 in the chart above.
Target #2 is where price action could come down to one of the Daily Gaps and then reverse. I see this as a low probability move, especially due to the fact that Bitcoin has an irritating habit of retracing back to 98% of it's previous high.
Target #3, again, could come down to one of the Daily Gaps and then reverse.
Target #4, is a high probability reversal point where due to the Daily FVG + OB being where most of the liquidity would be held, seems the most logical target before a solid reversal. I have labelled this as Possibility #2.
Target #5, is a high probability reversal point due to the Daily FVG+OB as well as it being at the 98% retracement point that Bitcoin seems to so often follow. I have labelled this as Possibility #3.
Therefore at this point in time, due to the many issues currently under the microscope together with potential conflict escalation in the Middle East and/or Ukraine, and the level count showing a level 2, I see it highly probable that the current boxed reversal zone will be invalidated and we will achieve a much lower reversal point more than likely between Possibility #2 and Possibility #3.
Note that I am still very bullish on this, even though the DAILY EMA shows BEARISH trend, it is only temporary as the WEEKLY EMA is still very much BULLISH !
I shall update when price action reveals more useful information.
SUPPORT AND RESISTANCEIn this analysis we are focusing on (1H) time frame for XAUUSD. In this analysis we are using support and resistance along with PDH and PDL concept. If price break this middle area towards upside then we look for buy and the target is set at least PDH. But if price reject the middle area toward downside then we look for sell and the target is set at least the candle wick. after confirmation we execute our trade. Let's delve deeper into these levels and potential out comes.
Always use stoploss for your trade.
This is just my prediction or analysis.
This was a MOVIE! Prepare to be entertained.. To say the least!This video is as real and transparent as it gets in the trading world. Hope you appreciate it as much as I learned from it.
Final profit on this trade/video as we got cut off right at the drop - $560 and counting.
This was legit a movie - For anyone who watches this whole thing, I hope you enjoyed and learned some important lessons about the nature of the market, human psychology, and the importance of having a trading plan. Probably the most up & down wild hour of trading i've had in a long time. I will be rewatching this one for years to come. Lots of lessons learned in 1 video.
Happy Trading to everyone.
Flag Pattern Alert: Gold's Big Decision!Now that the title got your attention! Take some time to fully digest the market breakdown below where we cover this further in depth!
1. Price Structure:
- Downtrend: The chart shows a significant downtrend from the left side, leading to a series of lower highs and lower lows, which is a classic bearish structure.
- Consolidation/Flag Formation: After a strong bearish move, the price appears to be consolidating within a flag pattern, as indicated by the 15-minute and 1-hour flag formations.
This is typically a continuation pattern, suggesting that the market might continue in the direction of the previous trend (downwards).
2. Key Levels:
- Daily LQZ (2,474.774): This is a higher time frame liquidity zone. Price is currently below this level, indicating that there might be significant resistance here.
- 4HR LQZ (2,459.094): This zone is also above the current price, acting as potential resistance. A move towards this zone might face selling pressure.
- 1HR LQZ (2,445.648): This is a closer resistance level, just above the current price action, within the range of the flag pattern. A breakout above the flag might target this LQZ.
- 15M LQZ (2,415.863): Price is currently hovering around this level, indicating that the market is at a critical point where it could either bounce or break lower.
- 1HR LQZ (2,402.417): If the price breaks down from the current flag, this level could act as the next target/support.
3. Potential Scenarios:
- Bullish Scenario (Green Arrow):
- Breakout of the Flag: If the price breaks out upwards from the flag formation, it could signal a reversal or a correction within the larger downtrend.
- Target Levels: The price might aim for the 1HR LQZ at 2,445.648 first, with potential further movement towards the 4HR LQZ at 2,459.094, and eventually towards the Daily LQZ at 2,474.774 if bullish momentum continues.
- Bearish Scenario (Orange Arrow):
- Breakdown from the Flag: If the price breaks down from the flag pattern, it would confirm the continuation of the bearish trend.
- Target Levels: The immediate target would be the 1HR LQZ at 2,402.417, followed by the next lower Daily LQZ at 2,355.819.
4. Market Phases:
- Impulsive and Corrective Phases:The downtrend before the flag can be considered an impulsive phase, while the flag pattern itself represents a corrective phase. Understanding these phases can help anticipate the next move.
5. Lower High Formation:
- The chart also marks a “Lower High” within the flag formation. This suggests that the bulls are struggling to push the price higher, which is a bearish signal, reinforcing the likelihood of a breakdown.
6. Volume Analysis:
- Volume Support: The volume seems to be lower during the flag formation compared to the preceding downtrend, which is typical in a consolidation phase. A breakout with strong volume would give more validity to the direction.
7. Conclusion:
- Bullish Bias: If the price breaks out of the flag with strong momentum and volume, a short-term bullish move towards the higher LQZs can be expected.
- Bearish Bias: The overall trend and the formation of a lower high suggest a bearish continuation. If the price breaks down from the flag, the bearish scenario could play out with targets towards the lower LQZs.
This breakdown gives you a structured view of the current market conditions on this chart. As always, consider combining this technical analysis with other factors like market sentiment, fundamental analysis, and your risk management strategies.
GBPUSDLast day of the week, the truth is it has been a very beautiful week despite the difficulty, today Friday presents a very interesting day since it is the end of the week and there is always interesting movement, we also have a high impact news in the Canadian currency at 1:30 p.m. London time which can give a strong movement, since it indirectly affects the American currency and therefore our pair, so we will be aware of what the price presents. This morning I bring you two scenarios that present the price at this moment depending on how its movement reacts in one way or another. Remember that we react to what the price tells us we do not predict anything we are not witches hehehe have a great day trader a hug and greetings from your.
HanderBanksFX service
BTCUSD: The Rally Is Just Beginning, Probability Confirms6M: BITSTAMP:BTCUSD
3M: BITSTAMP:BTCUSD
1M: BITSTAMP:BTCUSD
2W: BITSTAMP:BTCUSD
1W: BITSTAMP:BTCUSD
3D: BITSTAMP:BTCUSD
1D: BITSTAMP:BTCUSD
If you have any questions, need further clarification, or would like to share your own insights, feel free to leave a comment below!
The information provided is for educational purposes only and should not be considered financial advice. Trading involves risk, and you may lose some or all of your investment. Always conduct your own research and consult a licensed financial advisor before making any trading decisions.
GBPUSDYesterday the price never gave us a confirmation which behaved very harshly I understood that underneath there was a lot of liquidity pending to think about going up today the market presents a calm but safe day with opportunities, at this moment I am looking for a sale to that closest liquidity, to look for a purchase up to my point of interest at which I will wait for my confirmation to be able to enter the market with a sale up to 1.26451
Can Gold Surpass Its Recent Highs? Expert Analysis Inside!Key Levels:
Higher High (HH): Marked near the top at around 2460.
Lower High (LH): Slightly lower high indicating a possible trend change.
Support/Resistance Zones: Key support/resistance levels are identified on the chart.
Lower Time Frame (LTF) Lower High: Indicated by a yellow line, suggesting a lower high on a smaller timeframe within the larger trend.
Liquidity Zones (LQZ): Marked on the 4-hour, 1-hour, and daily timeframes indicating potential areas of liquidity.
Market Structure:
Shorter Time Frame Higher Low: A higher low is indicated on a smaller timeframe, suggesting potential bullish continuation.
Barley Missed HH and then pushed down: Indicates a failure to achieve a higher high, followed by a downward movement.
Support Rejection: The market rejects off support, suggesting a possible formation of a new higher low (HL).
Observations:
The market is reacting to support and resistance levels, showing signs of potential trend continuation or reversal.
The presence of multiple liquidity zones suggests areas where price might seek liquidity, influencing future price movements.
Why $EU is Melting Down and Here's How You Can Capitalize on It12M: OANDA:EURUSD
6M: OANDA:EURUSD
3M: OANDA:EURUSD
1M: OANDA:EURUSD
2W: OANDA:EURUSD
1W: OANDA:EURUSD
2H: OANDA:EURUSD
If you have any questions, need further clarification, or would like to share your own insights, please feel free to leave a comment below.
Gold Price Explosion? Key Patterns Indicating Major Moves Ahead!Technical Breakdown of XAUUSD
Overview
The chart presents the price action of Gold Spot (XAUUSD). Key technical patterns and significant support/resistance levels are highlighted to provide insights into potential price movements.
Key Patterns and Levels
Descending Channel:
The price previously moved within a descending channel, marked by lower highs (LH) and lower lows (LL), indicating a downtrend.
The breakout from the descending channel suggests a potential shift in momentum from bearish to bullish.
Support/Resistance Levels:
HTF (Higher Time Frame) Support/Resistance: A crucial level providing a foundation for significant price movements, shown with blue lines.
LTF (Lower Time Frame) Support/Resistance: A lower time frame level within the channel, highlighting short-term price actions.
1HR Double Top: A resistance level around 2458.3 where the price is currently facing a decision point.
Bullish Patterns:
3 Touch Flag: A bullish flag pattern with three touches indicating potential continuation if the price breaks above the resistance.
Daily Bull Flag: A larger time frame bull flag pattern suggests a bullish continuation if the price breaks above the upper boundary.
Liquidity Zones:
Weekly LQZ: A liquidity zone around 2484, which acts as a significant resistance level.
Daily LQZ: A zone around 2348.8 providing a major support level.
Current Market Conditions:
The price is currently testing the 1HR double top resistance. A rejection at this level could indicate a potential short position, while a clear break above could confirm a long position.
Trading Strategy:
Wait for Confirmation: Traders should wait for a clear rejection or break above the 1HR double top to determine the direction of their positions.
Monitor Key Levels: Keep an eye on the support/resistance levels and liquidity zones to gauge potential price movements and market sentiment.
Conclusion:
Gold is at a critical juncture with significant patterns indicating possible major moves ahead. Traders should closely monitor the 1HR double top and key support/resistance levels to make informed trading decisions.
GBPUSDIn general terms, I can see that the price is in a bearish channel, accumulating a large part of the supply and inducing it to continue selling. I stick with my plan to sell until my psychological point of 1.27772 since in a week that is my breakout of the BOS. Once I get that liquidity point I will be very attentive since it is a greater induction therefore I will take advantage of all that offer and I will join the sharks to buy and take my part. But since the market is present today, it is giving me a beautiful sales opportunity.
This Simple Error Cost Me Big on XAUUSD! Learn From My Mistakes!Key Levels and Zones
Highs and Lows:
HH (Higher High) and LH (Lower High) are marked on the chart.
The chart shows a recent HH and LH indicating a bullish trend with a potential pullback.
Liquidity Zones (LQZ):
4HR LQZ at 2474.891: This zone might act as a significant resistance level.
4HR LQZ at 2432.126 - 2432.046: This zone was previously a resistance level that may now act as support.
4HR LQZ at 2348.453: Another support zone lower on the chart.
Daily Bull Flag:
A daily bull flag is drawn, suggesting a potential continuation of the bullish trend if the price breaks out upwards.
Trading Plan
Identify Key Zones:
Mark key support and resistance levels on your trading platform.
Wait for Confirmation:
Look for confirmation signals (candlestick patterns, volume spikes) before entering a trade.
Set Alerts:
Use trading alerts to get notified when the price reaches key levels.
Risk Management:
Always use a stop loss to protect your capital.
Ensure your risk-reward ratio is at least 1:2.
Review and Adjust:
Regularly review your trades and adjust your strategy based on market conditions.