XAU/USD - advanced technical analysis - 09.07hello, I would like to keep things as simple and clear as possible without too many stories!
blue zone = demand zone - from where I expect it to grow or at least to have a reaction
purple area - supply area - from where I expect the price to decrease or at least to have a reaction
liquidation point = for the order flow to be respected, the price must take over that point
protected point = if the price touches that point, it is possible to see a trend change
liquidity = the price will take that liquidity (do not transact there)
MARKET STRUCTURE at the finest level
Money
Blueprint to Success: How to Master Trading Sessions & Planning👑 Pre-Trading Sessions & Planning:
🔥 Key Details + Concepts
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(Psychological, Technical & Concepts):
🟠 Psychological:
- Don’t trade if your emotions aren’t aligning with what is on the screen.
- If you’re not super happy about entering, and you don’t fully accept the loss, don’t take the trade.
- Don’t ‘force’ something to work because it won’t.
- Trade as if you are looking for buys and sells in your markup. This removes mental bias, and effectively emotion in trading.
🟠 Technical:
- Cause is the most important factor in trading – find what caused the injection of volume (‘follow the money’). Did it get effectively mitigated? Did it leave imbalance? … Find that block of orders and don’t get liquidated
- The more inducement respected, the more liquidity to take out, the bigger the move
- Zones to trade from must have resting orders to mitigate. Make sure they have inducement above/below (or create it), and they are the cause of structural breaks, demand/supply fails etc
- Start analysing on the daily first! Find the intention of price and follow it
- Mark out S/R – (support becomes resistance levels vice versa) as that level will be liquidated to usually meet our orderblock above/below it
- Previous daily/weekly highs/lows can act as strong structural inducement points
- Price needs reason to move to certain levels – imbalance
- Often when we have a low Phase 2 inducement, we will sweep it’s orderblock as a SMT because of the zone’s large imbalance = lack of inducement
- If you don’t spot the buyers/sellers who got swept before entering, you’ll become liquidated
- Mark out pullback zones too
- If we break our LPOD/S, we are effectively going to run through all mitigated price until the next valid orderblock
- Ensure you wait for your respective time-frame reaction (e.g., don’t look for a 1m reversal from a 4h zone)
- If price taps the outside of a zone but doesn’t enter it, it can still be used as inducement
- We don’t recommend stacking countertrend trades
- A mitigation can be confirmed when price sweeps into its previous range over another small-range inducement.
🟠 Concepts
- The demand/supply that took out the Phase 1 inducement then gets broken confirms a shift in market structure. If it is respected, we can trade a continuation.
- A ‘slight mitigation’ is when price sweeps liquidity into a range, but doesn’t properly mitigate the orderblock where the high-volume orders lie. Even though we may react from there, we can come back to this orderblock and properly mitigate it, using the ‘slight mitigation’ level as a point of inducement.
- It is important for the AR (automatic rally) to ‘fail’ in a reversal range after the B/SC (Buyers/sellers climax) as it often grabs the LPOD/S (the last point of demand & supply), so it is successfully mitigated
- News candles can be targeted high/lows as they don’t have inducement
- Price works with momentum. You will never see something shoot up or down randomly
- Refine zones by excluding the inducement it swept before it
– draw a line through the orderblock from the inducement it swept. This will refine your orderblock to the pure manipulation *has exceptions*
- If an inducement phase isn’t very clean or only sweeps a small range, there will be another opportunity as more manipulation is needed to fuel a larger move
- Weak highs and lows are determined after a leg has been properly mitigated; the 5-15m TF is best to determine an active zone
- A high/low is likely to be targeted when it wicks the other side’s high/low (to sweep) instead of having a candle closing over (BoS)
- The first part of a ChoCh is often formed from Phase 1 inducement getting swept, creating a slight pullback, then breaking it again to hit the refinement
Used Word Definitions:
- LPOD/S – Last point of demand/supply
- ChoCh – Change of character (a sweep of liquidity then a break of structure)
- BoS – Break of structure (a failure of supply or demand creating a price leg break)
- OB – Orderblock (a valid zone to trade from)
- FVG – Fair value gap (a form of inefficiency/price gaps in the market)
- IMB – Imbalance (a form of inefficiency/price gaps in the market)
- IPA – Inefficient price action (imbalance)
- S&D – Supply and demand (the levels of buying and selling)
- IFC – Institutionally funded candle (a candle created by institutions to push price to a certain area)
- IPB – Inducement Pullback (The level where price pullbacks before a continuation)
- PA – Price action (how price is moving)
- B2S – Buy to sell (often seen as a wick to mitigate or sweep)
- S2B – Sell to buy (often seen as a wick to mitigate or sweep)
- AOI – Area of interest (an area of price that is reactive or tradable)
- POI – Point of interest (a specific point where price is reactive or tradable)
- IND – Inducement (placement of liquidity that is used to manipulate traders)
- EQH/L’s – Equal highs/lows
- SMT – Smart money trap (a zone that doesn’t have liquidity under/above it, and gets run, trapping SMC traders)
- MSS - Market Structure Shift (a confirmed shift in the markets direction towards the next reversal zone)
- Vectors – Large-bodied, impulsive candles that are to push price to its purposeful target
- V-SR – V-Shaped Recovery (quick movement of price to enter and exit a zone)
- TF – Time frame
- FR – Failed Reaction (Internal supply/demand failure)
- OF – Order-flow (the movement of money through the market)
- True Zone – The actual orderblock that will be used which holds the high volume or orders
- PDH/PWH or PDL/PWL – Previous daily/weekly high/low
🟠 Colour Codes:
🟠 Time and Price (Times in AEST):
ASIA > FRANKFURT > LONDON > NEW YORK
- Asia: – Asia is important to analyse as it can create the model for New York and London its purpose is to create liquidity above and below its session. Mark the bottom and top to create a range, as well as the midline. Often, price will aim to take a high/low or both (AWS) starting with Frankfurt + London Open. If Asia takes a form of liquidity and is impulsive, a continuation trade can be played.
- Frankfurt: - Frankfurt often prepares London for its main movement of the day. It often does this by taking out the high or low of Asia to create an orderblock mitigation for London, creates more Phase 1 inducement for London to take out, or helps to move price to an already-made valid orderblock.
- London: - When London opens, there is a volatility spike in price. London’s purpose is to attack the liquidity created during Asia. Often, London creates a continuation mitigation after 1.5 hours, but can also contribute to a larger liquidity build-up for New York. Entries that induce + mitigate can be taken at the open (sometimes +30). After 2 hours of opening, we often see a shift in direction.
- Pre-NY: - Before New York opens, we often see an impulsive move that directly contributes to the New York session. Sometimes, we can create a valid zone for New York to play from by mitigating high-volume orders. Most often, we see an impulse in price to move into a higher timeframe orderblock to then become targeted liquidity, or we create more low timeframe reversal inducement to then be swept.
- New York: –We open with a volatile shift of momentum. New York’s purpose is to attack the liquidity created during the London session, or to create a continuation from London. The New York trap usually starts 1 hour after opening and reverses. After 1.5 hours of opening (MMM), we often see a clean mitigation of the ‘correct’ orderblock and liquidate the opening move. Sometimes, New York Open can mitigate the high-volume orders and continue in the correct direction of the day.
- London Close – mitigates the peak of NY open / Reversal for a continuation in NY open direction. Sometimes there is a mitigation-inducement before London Close.
- Magic Minute Mitigations (MMM) - refer to high probability trading times that mitigate active continuation orderblocks. We can best see these 1.5 hours after London and New York Opens – rarely, we can see these 3.5 hours after these opens instead.
In the next post I will continue with my 8-step daily markup process and my Asian session manipulation formulas.
If you found this article helpful, please share it with your friends and leave a comment!
Cheers!
$CNIRYY - Deflationary CPI- While ECONOMICS:USIRYY numbers remain inflationary,
having the latest increase to 3.2% on August 10th,
on the other side of the World from the second Global Superpower,
ECONOMICS:CNIRYY came Deflationary at negative 0.3% on 9'th of August,
just a day prior to numbers of ECONOMICS:USIRYY .
Note that The Head of Federal Reserve,
our pal Jerome Powell,
stated that Feds do not see Inflation ECONOMICS:USIRYY coming down to their norm target of 2% CPI
by 2025.
Jerome still believes on a 'Soft Landing'..
How about another Joke, Powell !?
Bearish Gartley PatternLooking at this analysis, just like with the rest of my post. We trade using Technical Tools. Using and measuring Price action with influences from news.
In this Analysis... I was very reserved sending this one out like a long time ago because price was way off chart for me but, in news. I looked back at this markup to find to my surprise the prediction coming true so with that said :
Good luck with this trade, please use respectable lot sizes with this information.
Using the Amber Rectangles.. They signify support and resistance zones. Using information from the past, as you can tell these price zones are highly respectable turning points.
Using specific Fibonacci retracement measurements made this pattern appear, and I am the eye you will use to see into the market using Harmonic Patterns so give me a follow if you've read this far. Because you're hooked.
Looking at the selling pressure that formed after the bullish momentum is wonderful. At the moment the trade can start and be on its way to TP. Please use Stop loss. and if you don't know what a STOP LOSS is.. Please message me #StopLoss.
Timing is wonderful to post. Please use my analysis as a guideline while doing your own research.
Good Luck and Happy Trading!
Navigating Volatile Markets Navigating Volatile Markets: Strategies for Turbulent Times
Introduction
Financial markets are no stranger to volatility, with unpredictable twists and turns that can test even the most seasoned investors. However, turbulent times need not be daunting. In this blog post, we will explore strategies to help you navigate volatile markets with confidence, turn uncertainty into opportunity, and make informed investment decisions during challenging times.
1. Stay Informed, Not Overwhelmed
During periods of market volatility, it's essential to stay informed about market developments and economic indicators. However, avoid becoming overwhelmed by constant news updates and opinions. Focus on reliable sources and maintain a balanced perspective.
2. Diversify Your Portfolio
Diversification is a time-tested risk management technique. Spread your investments across different asset classes, industries, and geographic regions. A well-diversified portfolio can cushion the impact of volatility on your overall holdings.
3. Set Clear Goals and Stick to Your Plan
Define clear financial goals and create an investment plan tailored to your objectives and risk tolerance. During turbulent times, emotions may tempt you to deviate from your plan. Stay disciplined and trust in the strategy you have set forth.
4. Consider Defensive Investments
Explore defensive investments, such as bonds, dividend-paying stocks, and precious metals. These assets may provide stability during market downturns and act as a hedge against heightened volatility.
5. Focus on Quality
In uncertain times, prioritize quality over speculative bets. Look for companies with solid fundamentals, stable cash flows, and strong balance sheets. Quality assets are better equipped to weather economic storms.
6. Assess Long-Term Value
Volatility can create buying opportunities. Look for high-quality assets that have been oversold due to market sentiment rather than inherent flaws. Assess their long-term value and potential for recovery.
7. Implement Stop-Loss Orders
Use stop-loss orders to protect your capital from significant losses. Set stop-loss levels that align with your risk tolerance and allow you to exit positions if the market moves against you.
8. Avoid Panic Selling
Resist the urge to panic sell during market downturns. Selling low locks in losses and may hinder your ability to benefit from potential market rebounds.
9. Focus on Risk Management
Adopt prudent risk management practices. Only allocate a portion of your portfolio to higher-risk assets and avoid overexposing yourself to individual positions.
10. Seek Professional Advice
If navigating volatile markets feels overwhelming, consider seeking advice from a financial advisor. A professional can help you assess your financial goals, devise a tailored strategy, and stay on track during turbulent times.
Conclusion
Volatility is an inherent part of financial markets, but with the right strategies and a disciplined approach, you can navigate turbulent times with confidence. Stay informed, diversify your portfolio, and focus on long-term value rather than short-term fluctuations.
Remember, every market cycle presents opportunities. Embrace volatility as a chance to refine your investment approach, grow your wealth, and turn uncertain times into prosperous outcomes.
Happy investing, and may your journey through volatile markets lead you to a more secure financial future!
The Power of Dollar-Cost AveragingThe Power of Dollar-Cost Averaging: Building Wealth Gradually
Introduction
In the world of investing, there's a powerful strategy that enables individuals to build wealth over time without the need for market-timing skills or significant capital: dollar-cost averaging (DCA). This method involves investing a fixed amount of money at regular intervals, regardless of market conditions. In this blog post, we will explore the concept of dollar-cost averaging and how it can be a valuable tool for building wealth gradually and with discipline.
Understanding Dollar-Cost Averaging
Dollar-cost averaging is a disciplined investment approach that involves investing a fixed dollar amount in a particular asset or investment vehicle on a scheduled basis, such as weekly, monthly, or quarterly. The key feature of DCA is that the same amount is invested consistently, regardless of whether the asset's price is high or low.
The Power of Consistency
Reducing Market Timing Risk: Dollar-cost averaging eliminates the need to time the market, which is notoriously difficult even for seasoned investors. By investing regularly, you spread your purchases over different market conditions, reducing the risk of making ill-timed investments.
Taking Advantage of Market Volatility: DCA allows you to purchase more shares when prices are lower and fewer shares when prices are higher. Over time, this strategy can lead to a lower average cost per share.
Embracing Disciplined Investing: Dollar-cost averaging promotes disciplined investing habits. It encourages you to stay committed to your investment plan regardless of short-term market fluctuations.
Building Wealth Gradually
Regular Contributions: Set a consistent schedule for investing, such as monthly or quarterly contributions. This habit ensures that you continually add to your investments over time.
Automate Your Investments: Automate the investment process by setting up automatic transfers from your bank account to your investment account. This reduces the temptation to deviate from your plan.
Stay the Course: Remain patient and steadfast during market ups and downs. Stick to your dollar-cost averaging plan, as its true power lies in its long-term impact.
The Magic of Compounding
Dollar-cost averaging harnesses the magic of compounding, where reinvested returns generate additional returns over time. The longer you maintain your dollar-cost averaging plan, the more significant the compounding effect on your wealth.
Conclusion
Dollar-cost averaging is a time-tested and straightforward strategy for building wealth gradually and with consistency. By investing regularly and without the need to time the market, you can overcome the pitfalls of emotional decision-making and take advantage of market volatility.
Embrace the power of dollar-cost averaging as your ally in wealth-building, and watch your investments grow steadily over the years. Remember, the key to success is to start early, stay committed, and let the power of compounding work its magic on your journey toward financial prosperity.
Happy investing, and may your disciplined efforts lead to a brighter financial future!
Dividend Growth InvestingDividend Growth Investing - Building Wealth One Payout at a Time
Introduction
In a world of volatile markets and uncertain returns, dividend growth investing has emerged as a popular strategy for investors seeking steady income and long-term wealth accumulation. This approach focuses on investing in companies with a history of consistent dividend payments and a commitment to increasing those payouts over time. In this blog post, we will delve into the art of dividend growth investing and how it can be a powerful tool for building wealth, one payout at a time.
Understanding Dividend Growth Investing
Dividend growth investing involves selecting and holding shares of companies that not only pay dividends but also have a track record of regularly increasing those dividend payments. These companies typically exhibit financial stability, strong cash flows, and a commitment to rewarding shareholders with a share of their profits.
The Principles of Dividend Growth Investing
Dividend Yield: Dividend yield measures the annual dividend payment as a percentage of the stock's current price. Dividend growth investors often seek companies with reasonable dividend yields, balancing income with growth potential.
Dividend Growth Rate: The dividend growth rate measures the annual percentage increase in a company's dividend payments. Investors look for companies with a history of steadily growing dividends, signaling financial health and shareholder-friendly management.
Long-Term Horizon: Dividend growth investing is a long-term strategy. Investors aim to benefit from the compounding effect of increasing dividends over time.
Benefits of Dividend Growth Investing
Steady Income Stream: Dividend growth investing provides a reliable income stream for investors, which can be especially beneficial during market downturns.
Inflation Hedge: As companies increase their dividends over time, investors can potentially beat inflation and preserve the purchasing power of their income.
Potential for Capital Appreciation: Companies that consistently grow their dividends often attract investors, leading to potential capital appreciation in the stock price.
Key Strategies for Dividend Growth Investing
Research and Analysis: Conduct thorough research on companies' dividend histories, financials, and future growth prospects. Look for companies with sustainable dividend growth potential.
Diversification: Diversify your dividend growth portfolio across different sectors and industries to reduce risks associated with individual company performance.
Reinvestment: Consider reinvesting dividends back into the same dividend growth stocks or other investments to maximize the compounding effect.
Dividend Aristocrats: Explore companies that are part of the "Dividend Aristocrats" or similar lists, which consist of companies with a history of consistently increasing dividends for many years.
Conclusion
Dividend growth investing is a disciplined approach that rewards patient investors with a growing income stream and potential capital appreciation. By selecting companies with a commitment to increasing dividends over time and holding them for the long haul, investors can build wealth, one payout at a time.
Embrace the principles of dividend growth investing, do your due diligence, and let the power of compounding dividends work its magic on your investment journey. With the right mix of dividend growth stocks, you can create a robust and resilient portfolio that supports your financial goals for years to come.
Here's to the journey of building wealth through the steady flow of dividends, and may your investment endeavors be filled with prosperity and success!