Start adjusting before April tariff policy ! XAU ✍️ NOVA hello everyone, Let's comment on gold price next week from 03/24/2025 - 03/28/2025
🔥 World situation:
Gold prices decline for the second consecutive day but remain on track to close the week in positive territory, despite a stronger US Dollar (USD) and profit-taking ahead of the weekend. XAU/USD is currently trading at $3,019, down 0.81%.
Market sentiment remains cautious, though US equities are paring earlier losses. Meanwhile, bullion stays on the defensive as the USD regains momentum, with the US Dollar Index (DXY) edging up to 104.05, marking a 0.24% increase.
🔥 Identify:
Gold prices are in a short-term downtrend in the H4 frame, adjusting at the end of March, accumulating before tax policies in early April 2025.
🔥 Technically:
Based on the resistance and support areas of the gold price according to the H4 frame, NOVA identifies the important key areas as follows:
Resistance: $3057, $3080
Support : $2982, $2910
🔥 NOTE:
Note: Nova wishes traders to manage their capital well
- take the number of lots that match your capital
- Takeprofit equal to 4-6% of capital account
- Stoplose equal to 2-3% of capital account
- The winner is the one who sticks with the market the longest
Longterm
GOOGL: Bullish Bounce Before a Bigger Drop? Here's My RoadmapGoogle NASDAQ:GOOG NASDAQ:GOOGL is shaping up to look bullish in the short term, and I believe that in the next few weeks to months, we could see a solid upside move - before things could turn ugly again later on. Let me explain why.
Big picture: we’re currently in a Wave (2) corrective structure, which is playing out as a complex WXY correction (marked in orange). This type of correction follows a 3-3-3 wave pattern, and everything we’ve seen so far fits that structure. Since the top in February, NASDAQ:GOOGL has dropped around 24% , which is significant - but also not unexpected within this context.
What’s interesting now is that we’ve just printed a bullish divergence on the RSI for the first time in this move down. That’s the first green flag. The second? The lower wick, which I currently mark as sub-wave ((a)) has been very well respected so far. That’s the second sign that this could be the turning point - at least temporarily.
I’m expecting a move up in the coming weeks toward the 2024 VAH, around $178, where we could see a first rejection. From there, the price should continue higher in a 3-wave structure toward Wave ((b)), likely reaching between $187.80 and $196.30 (the 61.8% to 78.6% retracement zone).
But let’s be clear: this is not the start of a new bullish trend. After Wave ((b)), I expect a 5-wave move to the downside, completing Wave ((c)) - and that means lower prices ahead , potentially in Q3, Q4 2025 or even into 2026.
Until then, I’m keeping a close eye on this structure. As long as the current Wave ((a)) low holds, this short-term bullish scenario remains valid. If we get a strong breakout in the coming days / weeks, I’ll be looking to enter on a retest, targeting that $187.80–$196.28 zone.
Let’s see if the market plays it my way.
Make sure to follow me for future updates on this scenario and other setups !
GOLD(XAUUSD) -Weekly Forecast,Technical Analysis & Trading Ideas💡 OANDA:XAUUSD Daily Timeframe:
As forecasted by 4CastMachine AI last week, gold started its decline when it hit the red channel line.
This decline will continue, but the support area of 2955 could trigger a rebound.
At the support area of 2955, the up trend line will also prevent further declines.
If this area is broken, the price will decline to the support area of 2789.95.
This area, which was previously a major resistance, will become a major support, creating a good buying opportunity.
So, given the long-term uptrend, we can use this area as a long-term BUY ZONE.
💡 TVC:GOLD H4 Timeframe:
The price is in a Corrective wave.
Given the break of the ascending trend line in the RSI, the corrective wave is expected to continue to a depth of 2955.
💡 H1 Timeframe:
A Head and Shoulder Reversal Pattern has formed and the neckline has also been broken. Price is touching the neckline again. It is very likely that the downward wave will start from this area.
3027.83 support is broken now. It will act as a Resistance now!
Forecast:
Correction wave toward the Sell Zone
Another Downward Impulse wave toward Lower TPs
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NZDJPY - Shifting Trends Soon!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📉NZDJPY has been overall bearish , trading within the falling channel marked in red.
However, it is currently retesting the lower bound of the channel which lines up perfectly with the support zone marked in blue.
📈As per my trading style , as long as the support zone holds, I will be looking for buy setups on lower timeframes.
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
XAU/USD - Head and shoulders pattern appears ?🔔🔔🔔 Gold news:
👉The price of gold (XAU/USD) remains firm around $2,985 after pulling back from its record high of $3,005 during the early Asian session on Monday. The weaker US Dollar and concerns about global economic uncertainty amid a potential trade war continue to support the precious metal. Investors are now focused on the upcoming US February Retail Sales data, set to be released later on Monday.
Personal opinion:
👉Gold prices remain in a long-term uptrend due to economic, political and war information in many regions
👉However, in the short term, gold prices will have a correction to gain momentum for the next main trend
👉Technically, gold is forming a head and shoulders pattern when it cannot break the old peak of 3005. Therefore, in the short term, there will be a decline. But gold will find it difficult to fall deeply, so be careful to limit selling.
Analysis:
👉Based on important resistance - support levels combined with trend lines and price action to come up with a suitable strategy
Resistance zone: 2994 -3005-3020
Support zone: 2980 - 2971 - 2956
Plan:
🔆 Price Zone Setup:
👉Buy Gold 2,970 - 2,973 (Scalping)
❌SL: 2,975 | ✅TP: 2,983 - 2,986 - 2,990
👉Buy Gold 2,955 - 2,957
❌SL: 2,950 | ✅TP: 2,962 – 2,967 – 2,980
👉Sell Gold 3,010 – 3,012 (Scalping)
❌SL: 3,016 | ✅TP: 3,007 – 3,004 – 3,000
👉Sell Gold 3,019 – 3,021
❌SL: 3,025 | ✅TP: 3,015 – 3,0010 – 3,005
FM wishes you a successful trading day 💰💰💰
(USD/CHF) - Is SNB Rate Cut Bullish or Bearish?🔔🔔🔔 USD/CHF news:
👉Switzerland’s inflation outlook remains highly uncertain, with downside risks being the primary concern. Inflation in Switzerland has evolved in line with expectations and continues to be driven mainly by domestic services.
👉The situation will be closely monitored, and policy adjustments will be made if necessary. Assessing the impact of current tariffs and trade policies remains challenging.
👉Europe’s financial stimulus package is expected to benefit the Swiss economy. With this measure, monetary conditions are now appropriate, and there are no comments on the value of the Swiss franc.
👉Economic uncertainty remains high, both in positive and negative directions. This rate cut is designed to proactively address deflationary pressures.
Personal opinion:
👉Based on the interest rate policies of both central banks, in the short term, CHF is weaker than USD in many aspects, so USD/CHF may increase during this period.
👉Technically, RSI (1H) is entering the extreme overbought zone (near 80), so there will be a slight decline to adjust for the next increase. Consider strong support zones to get the best price
👉Analyze based on resistance - support levels combined with EMA and RSI to come up with a suitable strategy
Plan:
🔆 Price Zone Setup:
👉Buy USD/CHF 0.8810- 0.8800
❌SL: 0.8775 | ✅TP: 0.8850 – 0.8890 – 0.8930
FM wishes you a successful trading day 💰💰💰
3074 ! Next price zone, gold ATH reached⭐️GOLDEN INFORMATION:
Gold prices (XAU/USD) continue their consolidation phase into the European session on Thursday, as traders exercise caution amid slightly overbought conditions. Additionally, a prevailing risk-on sentiment limits the metal’s intraday advance to a new record high. However, downside risks remain contained due to lingering uncertainty surrounding US President Donald Trump’s aggressive trade policies and their potential ramifications for the global economic outlook.
⭐️Personal comments NOVA:
Bulls continue their excitement, pushing prices higher, amid global trade tensions.
⭐️SET UP GOLD PRICE:
🔥SELL GOLD zone: $3062 - $3064 SL $3067 scalping
TP1: $3058
TP2: $3050
TP3: $3040
🔥SELL GOLD zone: $3073 - $3075 SL $3080
TP1: $3065
TP2: $3050
TP3: $3040
🔥BUY GOLD zone: $3003 - $3001 SL $2996
TP1: $3009
TP2: $3015
TP3: $3023
⭐️Technical analysis:
Based on technical indicators EMA 34, EMA89 and support resistance areas to set up a reasonable BUY order.
⭐️NOTE:
Note: Nova wishes traders to manage their capital well
- take the number of lots that match your capital
- Takeprofit equal to 4-6% of capital account
- Stoplose equal to 2-3% of capital account
Gold Trend in European and US Sessions Today - New ATH?🔔🔔🔔 Gold news:
➡️Gold prices have surged past $3,000, reaching record highs early Tuesday as geopolitical tensions in the Middle East escalate. Israel has resumed military operations in Gaza after Hamas rejected US-backed ceasefire proposals. Additionally, growing friction between the US and Iran is further fueling demand for gold as a safe-haven asset.
Personal opinion:
➡️There are too many drivers to push the gold price up from economics - politics - war. Therefore, the uptrend is almost certain to continue
➡️However, there will be a slight pullback, because:
🔆 DXY's RSI (1D) is entering the oversold zone and showing signs of slight convergence, so this will be a sign for DXY to rebound
🔆XAU/USD's RSI (1H) is also entering the overbought zone and showing signs of divergence, so gold may decline in the short term.
Analysis:
➡️ Based on important resistance - support and Fibonacci levels combined with Pivot points to come up with a suitable strategy
Plan:
🔆 Price Zone Setup:
👉Sell Gold 3021- 3023 (European session)
❌SL: 3028 | ✅TP: 3017 – 3012 – 3007
👉Sell Gold 3033- 3035
❌SL: 3038 | ✅TP: 3028 – 3023 – 3018
👉Buy Gold 3001- 3003
❌SL: 2997 | ✅TP: 3008 – 3013 – 3018
FM wishes you a successful trading day 💰💰💰
GBP/USD Trend in US Session🔔🔔 🔔GBP/USD news:
👉According to the CME FedWatch tool, the Federal Reserve (Fed) is almost certain to keep interest rates unchanged in the 4.25%-4.50% range for the second consecutive time. As a result, the key driver for the US dollar will be the Fed's dot plot, which reflects' expectations for the federal funds rate in the medium and long term, along with the Federal Open Market Committee's (FOMC) Summary of Economic Projections (SEP).
👉Analysts at Fitch estimate that the tariff shock could “increase inflationary pressure by one percentage point” in the near term. This scenario would likely prevent Fed officials from cutting interest rates before the final quarter of the year. However, the CME FedWatch tool still indicates that the Fed may implement a rate cut in its June meeting.
👉Meanwhile, the Bank of England (BoE) is expected to maintain its interest rate at 4.5%, with a voting split of 7-2. BoE Monetary Policy Committee (MPC) members Catherine Mann and Swati Dhingra are likely to support a rate cut, while the other seven policymakers are expected to vote to keep rates unchanged. Investors will also closely monitor comments from BoE Governor Andrew Bailey regarding the UK’s economic outlook, particularly in light of US President Donald Trump’s tariff policies.
Personal opinion:
👉GBP/USD will trade in a range while awaiting the FOMC
👉Currently, the pair’s RSI is approaching oversold territory and strong support at 1.2942, so a rebound is likely. Everyone pay attention to trading to be able to buy at a bargain price for yourself
Analysis:
👉Based on resistance - support levels and Pivot points combined with trend lines and SMA to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Buy GBP/USD 1.2945 – 1.2930
❌SL: 1.2895 | ✅TP: 1.2990 – 1.3020
FM wishes you a successful trading day 💰💰💰
USD/CAD Trend During US Trading Session - Further Upward?🔔🔔🔔 USD/CAD news:
👉The U.S. central bank decided to keep its benchmark interest rate unchanged for the second consecutive meeting on Wednesday, amid growing concerns about an economic slowdown and the possibility of persistently high inflation. Federal Reserve Chair Jerome Powell emphasized the high level of uncertainty stemming from President Donald Trump's major policy shifts, adding that Fed officials may wait for more clarity on their economic impact before taking action.
👉New economic forecasts indicate that Fed officials have lowered their growth projections for this year but still anticipate an additional half-percentage-point rate cut by 2025. Meanwhile, the more hawkish tone on interest rates from Fed officials since December has provided some support for the U.S. dollars (USD).
👉On the other hand, crude oil prices have rebounded due to escalating geopolitical tensions in the Middle East, which could strengthen the commodity-linked Canadian dollar (CAD) and weigh on the USD/CAD pair. It is worth noting that Canada is the largest oil exporter to the United States, and higher crude oil prices typically have a positive impact on the value of the CAD.
Personal analysis:
👉In the short term, this pair is still maintaining its upward momentum due to economic data
👉However, RSI (1H) is in the extreme overbought zone near 80, so the buyers are showing signs of slowing down and the market is likely to reverse in the short term.
👉Consider strong support zones to buy at the best price for you
👉Analyze based on resistance - support levels and Fibonacci combined with trend lines and EMA to come up with a suitable strategy
Plan:
🔆 Price Zone Setup:
👉Buy USD/CAD 1.4350 - 1.4340
❌SL: 1.4315 | ✅TP: 1.4390 - 1.4430 - 1.4470
FM wishes you a successful trading day 💰💰💰
Too much news to support gold price increase - reaching new ATH?🔔🔔🔔 Gold news:
👉Gold prices surged to a new record high of $3,056 on Thursday as Federal Reserve Chair Jerome Powell spoke following the Fed's decision to keep interest rates unchanged. The Fed maintains rates at 4.25%-4.50% and announced adjustments to its balance sheet, expected to resume in April. While accelerating that labor market conditions remain solid, the Fed noted that inflation is still "somewhat" elevated and reaffirmed its commitment to monitoring risks on both sides of its dual mandate.
👉Meanwhile, the U.S. economy is projected to slow below the 2% threshold, indicating increased vulnerability amid President Donald Trump’s trade policies.
👉After the central bank's decision, Powell addressed the public, stating that "uncertainty surrounding the economic outlook has risen" and adding that some tariff-related inflation has been passed on to consumers. He emphasized that "our current policy stance is well-positioned to address the risks and uncertainties we are facing."
Personal analysis:
👉There is too much news supporting the uptrend of gold, so consider buying rather than selling.
👉XAU/USD RSI is showing signs of divergence after entering the extreme overbought zone, so wait for a technical pullback and buy at a cheaper price
👉EMA34(1H) is doing well its support level and this is a strong support level
👉Based on important resistance - support levels and Fibonacci combined with EMA to come up with a suitable strategy
Resistance zone: 3056 - 3070
Support zone: 3037 - 3025 - 3000
Plan:
🔆 Price Zone Setup:
👉Sell Gold 3068- 3070
❌SL: 3075 | ✅TP: 3063 – 3058 – 3050
👉Sell Gold 3057- 3055 (Scalping)
❌SL: 3060 | ✅TP: 3052 – 3049 – 3045
👉Buy Gold 3037- 3039
❌SL: 3032 | ✅TP: 3044 – 3049 – 3055
FM wishes you a successful trading day 💰💰💰
GBP/USD European and US Sessions - Uptrend Continued?🔔🔔🔔 GBP/USD news:
➡️The GBP/USD pair remains in positive territory for the fourth consecutive trading session, hovering around the 1.3000 level during Asian trading hours on Thursday. Daily chart technical analysis indicates a continued uptrend, with the pair moving higher within an ascending channel pattern.
➡️The 14-day Relative Strength Index (RSI) is slightly above 70, signaling strong bullish momentum but also suggesting that GBP/USD is overbought, which could lead to a potential downside correction.
➡️Additionally, the pair continues to trade above the nine-day Exponential Moving Average (EMA), reinforcing strong short-term price momentum and confirming the ongoing bullish trend.
Personal analysis:
➡️GBP/USD remains in an uptrend on the back of more dovish news from the US FOMC meeting.
➡️Technically, the SMA(100) plus the support zone and trendline in this area act as strong support to maintain the uptrend of GBP/USD. So consider this zone to Buy at a good price for you
➡️Analyze based on resistance - support levels combined with SMA and trend lines to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Buy GBP/USD 1.2965 - 1.2950
❌SL: 1.2920 | ✅TP: 1.3010 – 1.3050 – 1.3095
FM wishes you a successful trading day 💰💰💰
EUR/USD Trend in US Session Today🔔🔔🔔 EUR/GBP news:
👉The EUR/GBP pair remains stable after gaining in the previous session, trading around 0.8420 during Asian market hours on Wednesday. The Euro (EUR) strengthens as demand for increased deficit spending grew among the Eurozone’s largest economies. In Germany, key political parties—including the CDU/CSU bloc, SPD, and Greens—approved a landmark €500 billion spending plan for defense and infrastructure, leading to a substantial rise in national debt.
👉Additionally, the Euro may receive further support from improved risk sentiment, driven by optimism over a potential ceasefire between Russia and Ukraine. On Tuesday, US President Donald Trump and Russian President Vladimir Putin agreed to an immediate halt to strikes on energy infrastructure. However, Putin declined to approve a wider, month-long ceasefire negotiated between Trump’s team and Ukrainian officials in Saudi Arabia.
Personal opinion:
👉EUR/GBP will maintain its upward momentum in the near future due to the impact of good news supporting EUR.
👉RSI (2H) is currently below the buy zone and there is no sign of reversal, this is a retest of the trend line and the support zone of 0.8380. So consider this area to be able to buy at a good price for you
Analysis:
👉Based on important resistance - support and Fibonacci levels combined with the trend line to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Sell EUR/GBP 0.8370 - 0.8385
❌SL: 0.8345 | ✅TP: 0.8410 - 0.8450 - 0.8480
FM wishes you a successful trading day 💰💰💰
AUD/USD continues uptrend - waiting for FOMC🔔🔔🔔 AUD/USD news:
👉The US dollar is expected to trade cautiously ahead of the Federal Reserve’s (Fed) second interest rate decision of the year on Wednesday. The Fed is widely anticipated to keep interest rates unchanged in the 4.25%-4.50% range for the second consecutive time.
👉Meanwhile, the Australian Dollar (AUD) has shown strong performance in the last two trading sessions, driven by renewed optimism about China's economic prospects. Over the weekend, China introduced a comprehensive “special action plan” aimed at boosting domestic consumption by increasing household income. This development supports the Australian Dollar, as Australia's economy is heavily dependent on exports to China.
👉Domestically, the Reserve Bank of Australia (RBA) is likely to maintain a cautious stance on interest rate policy, given concerns that US President Donald Trump's tariff policies could heighten inflationary pressures in the Australian economy.
Personal opinion:
👉AUD/USD will still maintain its upward momentum due to the different policies of RBA and FED
👉However, this pair may correct a decline after RSI (4H) enters the overbought zone, which may be a good condition for you to buy at a good price
Analysis:
👉Based on important resistance - support levels and Fibonacci combined with trend lines and EMA to come up with a suitable strategy
Plan:
🔆 Price Zone Setup:
👉Buy AUD/USD 0.6340 – 0.6325
❌SL: 0.6295 | ✅TP: 0.6380 – 0.6430 – 0.6480
FM wishes you a successful trading day 💰💰💰
ETHEREUM -Weekly forecast,Technical Analysis & Trading IdeasMidterm forecast:
While the price is above the support 1521.00, beginning of uptrend is expected.
We make sure when the resistance at 2090.33 breaks.
If the support at 1521.00 is broken, the short-term forecast -beginning of uptrend- will be invalid.
BITSTAMP:ETHUSD MARKETSCOM:ETHEREUM
Technical analysis:
A trough is formed in daily chart at 1750.30 on 03/11/2025, so more gains maximum to Major Resistance (2090.33) is expected.
Take Profits:
2362.31
2546.73
2801.10
3042.75
3516.43
3741.60
4107.80
4500.00
4868.00
__________________________________________________________________
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Have a successful week,
ForecastCity Support Team
When will the gold price adjust down?⭐️GOLDEN INFORMATION:
Gold prices (XAU/USD) enter a phase of bullish consolidation near their record high, as traders take a cautious stance ahead of the highly anticipated Federal Open Market Committee (FOMC) policy decision on Wednesday. The consensus widely expects the Federal Reserve (Fed) to maintain the federal funds rate within its current range of 4.25% to 4.50%. Consequently, market attention will be centered on the Fed’s updated economic projections and Chair Jerome Powell’s post-meeting remarks, which could offer crucial insights into the future trajectory of interest rate cuts. These developments will be instrumental in shaping US Dollar (USD) movements and influencing gold’s next directional move.
⭐️Personal comments NOVA:
continue to grow, long term uptrend
⭐️SET UP GOLD PRICE:
🔥SELL GOLD zone: $3058 - $3060 SL $3065
TP1: $3050
TP2: $3040
TP3: $3030
🔥SELL GOLD zone: $3044 - $3046 SL $3049
TP1: $3040
TP2: $3030
TP3: $3020
🔥BUY GOLD zone: $3004 - $3002 SL $2997
TP1: $3010
TP2: $3020
TP3: $3030
⭐️Technical analysis:
Based on technical indicators EMA 34, EMA89 and support resistance areas to set up a reasonable BUY order.
⭐️NOTE:
Note: Nova wishes traders to manage their capital well
- take the number of lots that match your capital
- Takeprofit equal to 4-6% of capital account
- Stoplose equal to 2-3% of capital account
SWING IDEA - ANGELONE
ANGELONE
's stock price has been retesting around the 2000 resistance level for approximately two and half years. Following multiple retest, the stock finally broke out above this level in October 2023 and has since established it as a key support.
The stock subsequently surged to a peak of 3895, representing a 87% increase. However, it then experienced a sharp correction, plummeting 45% to revisit the 2000 support level again. This pivotal point, formerly a resistance, has now become a robust support.
Currently, ANGELONE is exhibiting an upward momentum, poised to retest its swing high at 3895. The weekly MACD crossover, occurring after the establishment of support at 2000, indicates a bullish trend reversal.
KEY OBSERVATIONS:
- Two-year resistance level of 2000 broken in October 2023
- Stock surged 87% to 3895 before correcting 45%
- 2000 level now serves as robust support
- Weekly MACD crossover indicates bullish momentum
- Upward momentum poised to retest swing high at 3895
RECOMMENDATION:
Based on this technical analysis, I would recommend holding ANGELONE for a Long Term horizon. This could potentially yield:
- 35% returns from the current price (as of writing)
- 87% returns from the support point (2000)
This analysis highlights a compelling buying opportunity in ANGELONE, driven by its breakout and momentum reversal.
IMPORTANT NOTE: Investors should be aware that there is a possibility that the stock may revisit this Support level at 2000 in the near future before resuming its upward momentum towards the swing high at 3895. This potential pullback should be monitored closely, and investors may consider adjusting their strategies accordingly.
DISCLAIMER: This IDEA is for informational/educational purposes only and should not be considered as investment advice. The analysis presented is based on technical indicators and historical data but does not guarantee future performance. Please conduct thorough research based on financial goals and risk tolerance, and consult with a financial advisor before making any investment decisions.
Will THETA return to an upward trend?Hello everyone, I invite you to review the current situation on Theta Token. When we enter the one-day interval, we can see how the price moved in the formed downtrend channel. What's more, we can see here the movement at the lower border of the channel and how the price maintains a strong support at the level of $ 0.90, however, if we go lower, just below the channel border, a very strong support zone for the price from $ 0.69 to $ 0.42 is visible.
We can also see how the price enters a slight sideways trend in which it can approach the downtrend line lasting inside the downtrend channel, such consolidation and gathering of energy can have a positive impact on the movement in the coming weeks, which can lead to growth. When such a scenario works, we can see a nice upward movement around $ 1.36, another significant resistance can be seen at $ 1.75, and then we have strong resistance around $ 2.36.
It is worth paying attention to the MACD indicator here, which shows how we are staying in the lower range and the ongoing movement is visible here, which may also indicate a potential attempt to rebound the price.
Behind the DCA Strategy: What It Is and How It WorksWho invented the Dollar Cost Averaging (DCA) investment strategy?
The concept of Dollar Cost Averaging (DCA) was formalized and popularized by economists and investors throughout the 20th century, particularly with the growth of the U.S. stock market. One of the first to promote this strategy was Benjamin Graham , considered the father of value investing and author of the famous book The Intelligent Investor (published in 1949). Graham highlighted how DCA could help reduce the risk of buying assets at excessively high prices and improve investor discipline.
When and How Did Dollar Cost Averaging Originate?
The concept of DCA began to take shape in the early decades of the 20th century when financial institutions introduced automatic purchase programs for savers. However, it gained popularity among retail investors in the 1950s and 1960s with the rise of mutual funds.
Overview
The core principle of DCA involves investing a fixed amount of money at regular intervals (e.g., every month. This approach allows investors to purchase more units when prices are low and fewer units when prices are high, thereby reducing the impact of market volatility.
Why Was DCA Developed?
The strategy was developed to address key challenges faced by investors, including:
1. Reducing Market Timing Risk
Investing a fixed amount periodically eliminates the need to predict the perfect market entry point, reducing the risk of buying at peaks.
2. Discipline and Financial Planning
DCA helps investors maintain financial discipline, making investments more consistent and predictable.
3. Mitigating Volatility
Spreading trades over a long period reduces the impact of market fluctuations and minimizes the risk of experiencing a significant drop immediately after a large investment.
4. Ease of Implementation
The strategy is simple to apply and does not require constant market monitoring, making it accessible to all types of investors.
Types of DCA
Dollar Cost Averaging (DCA) is an investment strategy that can be implemented in two main ways:
Time-Based DCA → Entries occur at regular intervals regardless of price.
Price-Based DCA → Entries occur only when the price meets specific criteria.
1. Time-Based DCA
How It Works: The investor buys a fixed amount of an asset at regular intervals (e.g., weekly, monthly). Entries occur regardless of market price.
Example: An investor decides to buy $200 worth of Bitcoin every month, without worrying whether the price has gone up or down.
2. Price-Based DCA
How It Works: Purchases occur only when the price drops below a predefined threshold. The investor sets price levels at which purchases will be executed (e.g., every -5%). This approach is more selective and allows for buying at a “discount” compared to the market trend.
Example: An investor decides to buy $200 worth of Bitcoin only when the price drops by at least 5% compared to the last entry.
Challenges and Limitations
1. DCA May Reduce Profits in Bull Markets
If the market is in an bullish trend, a single trade may be more profitable than spreading purchases over time or price dips.
2. Does Not Fully Remove Loss Risk
DCA helps mitigate volatility but does not protect against long-term bearish trends. If an asset continues to decline for an extended period, positions will accumulate at lower values with no guarantee of recovery.
3. May Be Inefficient for Active Investors
If an investor has the skills to identify better entry points (e.g., using technical or macroeconomic analysis), DCA might be less effective. Those who can spot market opportunities may achieve a better average entry price than an automatic DCA approach.
4. Does Not Take Full Advantage of Price Drops
DCA does not allow aggressive buying during market dips since purchases are fixed at regular intervals. If the market temporarily crashes, an investor with available funds could benefit more by buying larger amounts at that moment.
5. Higher Transaction Costs
Frequent small investments can lead to higher trading fees, which may reduce net returns. This is especially relevant in markets with fixed commissions or high spreads.
6. Risk of Overconfidence and False Security
DCA is often seen as a “fail-proof” strategy, but it is not always effective. If an asset has weak fundamentals or belongs to a declining sector, DCA may only slow down losses rather than ensure future gains.
7. Requires Discipline and Patience
DCA is only effective if applied consistently over a long period. Some investors may lose patience and leave the strategy at the wrong time, especially during market crashes.
#1000CHEEMSUSDT is setting up for a breakout Long BINANCE:1000CHEEMSUSDT.P from $0,0014000
🛡 Stop loss $0,0013740
1h Timeframe
⚡ Plan:
➡️ POC is 0,0013254
➡️ Waiting for consolidation near resistance and increased buying activity before the breakout.
➡️ Expecting an impulsive upward move as buy orders accumulate.
🎯 TP Targets:
💎 TP 1: $0.0014380
💎 TP 2: $0.0014700
🚀 BINANCE:1000CHEEMSUSDT.P is setting up for a breakout—preparing for an upward move!
#API3USDT is setting up for a breakout📉 Long BYBIT:API3USDT.P from $0,8985
🛡 Stop loss $0,8543
1h Timeframe
⚡ Plan:
➡️ POC is 0,8185
➡️ Waiting for consolidation near resistance and increased buying activity before the breakout.
➡️ Expecting an impulsive upward move as buy orders accumulate.
🎯 TP Targets:
💎 TP 1: $0,9300
💎 TP 2: $0,9630
💎 TP 2: $0,9900
🚀 BYBIT:API3USDT.P is setting up for a breakout—preparing for an upward move!
BTC - Bullish SOON!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
BTC has been in a correction phase, and it feels like it's taking forever! ⏳
As long as the blue trendline holds, the overall bias remains bullish. 📈
As BTC approaches the blue trendline—perfectly aligning with a demand zone and support—we'll be watching for trend-following longs to catch the next big impulse move upward. 🚀
For now, we wait! ⏳
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich