Gaps and How Markets Move In Contraction and ExpansionThere are several ways to trade gaps but first, there should be a solid understanding of what Gaps are and how they show up. Markets aren't that hard to read if we have some simple ways to see them that adhere to the principles of movement.
All markets move in contraction and expansion. A Gap is the sudden supply/demand imbalance that comes out of the contraction and shows up as the expansion. These expansions can even be used to measure how far the next expansion will go.
Start with a simple bar chart and erase everything else off the chart. Look and simply see the dense areas of contraction (Range). Then see the expansion (Gap), followed by another contraction.
Look for same-size contractions and expansion and you will start to see how organized price flow can be. It's no different than swings in that minor contractions and expansions make up the major contractions and expansions.
Shane
Community ideas
HOW TO SET *** TRAILING *** STOP LOSSES ON TRADINGVIEWThis one is a bit of a hack but follows on from my video on how to set STOP LOSSES on TradingView for Connected Brokers.
To set a TRAILLING STOP LOSS you need to open your broker account, set the trade there and it will then be reflected on the TradingView interface.
Basically a set and forget type approach.
How to confirm Buy/Sell recommendations?As a trader, I meticulously review recommendations from brokerage firms regarding potential stock purchases daily. Despite this, I am frequently confronted with the challenge of accurately predicting profit probabilities, as well as determining precise entry, exit, and stop-loss points.
My preference for the Ichimoku strategy means I conduct extensive analyses on my portfolio, a process that, while thorough, is also notably time-consuming. Moreover, in the midst of trading, I find myself eager to predict the characteristics of the forthcoming bar. To address these challenges, I integrate a variety of indicators into my strategy, including VWAP, Stochastic RSI, MACD, OBV, RedK Everex, SVP, and, crucially, volume analysis. Yet, even with these tools, predicting the next price level—as a target price within my Ichimoku trading framework—remains elusive.
In my quest for a more comprehensive understanding, I discovered a user-friendly and exceptionally effective indicator that enhances my VWAP framework: the BREAKOUT PROBABILITY (EXPO) by ZEIIRMAN. It offers a nuanced perspective that could markedly improve trade decision-making.
I highly recommend watching the educational video provided by ZEIIRMAN. It has the potential to add significant value to your portfolio.
Best of luck in your trading endeavors.
Mohamed Mahmoud
This Completing Transformed My Trading (RESPECT & DISRESPECT)The idea of RESPECT and DISRESPECT completely transformed my ability to effectively read price action and trade profitably.
ICT teaches about Premium/Discount (PD) Arrays. There is a lot of bickering and debate as to which of these PD Arrays are better.
I'm here to build a case for the idea that they are all equally effective, and are just reference points on a chart to build a trade idea around.
To me, it boils down to: Which levels are being RESPECTED or DISRESPECTED?
That's it for me, that's what made it all click. That is what helped me stop worrying about every little level on the chart.
Once you have a high time frame (HTF) narrative and draw on liquidity (DOL), you know which PD arrays you want to see respected and disrespected. Coming up with your HTF Narrative is also based around what levels are being RESPECTED or DISRESPECTED.
I hope this video can give you an a-ha moment like it did for me.
💰The #1 Commodity Market Watch📉🎢--
What you will hear in this video:
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1-Learning how to trade commodities
2-Trend analysis
3-Support levels
4-Resistance levels
5-Market psychology
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And more...
Watch this video to learn more
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**Disclaimer:**
The information provided above or below is for educational and informational purposes only.
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It does not constitute financial advice, and trading always involves
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a risk of substantial losses, regardless of the margin levels
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used. Before engaging in any trading activities, it is crucial to
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conduct thorough research, consider your financial situation,
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and, if necessary, consult with a qualified financial advisor. Past
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performance is not indicative of future results, and market
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conditions can change rapidly. Trading decisions should be made
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based on careful analysis and consideration of individual
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circumstances. The user is solely responsible for any decisions made
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and should be aware of the inherent risks associated with trading in
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financial markets.
Trend Trading Strategy for the Heiken Ashi Algo v6Knowing when the RSI and price are in a ranging phase even in the short term can be a difficult process.
You are either #Ranging #bullish or #bearish. At least in the Algo v6 you can get a clear vision of exactly whats happening.
In this video im going to give you a VERY simple strategy on:
1. How to know if the RSI and price are ranging
2. When do i break away from Ranges
3. Am I trending
4. Im trending but whats my confluence to take a long or short
5. Is my range getting bigger or smaller
Enjoy this quick vid and ask questions below.
Thanks everyone.
Trading Rules Are Not a Suggestion or an OptionWhen you make a trading rule, it's not a suggestion or an option. Mostly, when we want to be flexible with our rules, it's an emotional impulse pulling us to make some unbalanced trading decision. Make sure to keep closing every escape route you have. If you are not ready to commit to rules then don't make them, you will just be setting yourself up. Wait until you are ready, then have a go at it.
In my posts, I have been doing an exercise of trade planning for 30 trades. This is a complete plan covering every aspect of the trade. Today I will do a review of the trades done so far.
Components of a Trade Plan:
1. Objective method
2. Trade entry, stop, and exit
3. Position sizing and risk management
4. Documentation and review
The review is simple, I ask 2 basic questions.
1. Did I make a clear plan ahead of time?
2. Did I follow that plan?
These questions demand honest, yes-or-no answers. They force me to confront my trading discipline head-on, without room for excuses or escape. At first, the rules may seem confining, but after a while, you will see that trading can be very relaxed.
I understand that rules for every aspect can be overwhelming. You can do it in steps tackling one thing at a time. For instance, you can work on only entries, stops, or management until you master that one thing. Setting the foundations of discipline and consistency won't offer immediate gratification but it will serve you in the long run. What's important is that you keep moving forward toward your objectives with awareness.
Shane
RSI as a Trend ToolMost people use the RSI as a momentum indicator,
trying to find Overbought/Oversold (OBOS) conditions,
and/or divergences.
However there is also a way to use it as a Trend Tool.
There is a mathematical relationship that connects the RSI and EMA's.
The formula is RSI(x) cross-over 50-line = Close cross-over EMA(2x)
i.e. RSI(14) cross-over 50 line = Close cross-over EMA(28)
This one of the properties of the RSI,
which I discovered when taking a more indept look into momentum indicators,
which ultimately led to the discovery of the MACD-v in 2014/2015
The MACD-v was then publicly disclosed in 2022,
in the form of a a paper called
"MACD-v: Volatility Normalised Momentum",
which was awarded:
It has won 2 International Awards:
1. The “Founders Award” (2022),
for advances in Active Investment Management
from the National Association of Active Investment Managars (NAAIM)
2. The “Charles H. Dow Award” (2022)
for outstanding research in Technical Analysis,
from the Chartered Market Technicians Association (CMTA)
Mastering High Probability Trading EnvironmentsIn this educational video, we'll delve into High Probability Trading Environments and introduce a simple yet effective concept to confirm their presence . Understanding these environments will empower you to confidently navigate the market with consistency and success.
For a comprehensive understanding, I recommend watching my previous video on Understanding Trend Analysis, SMT, and ICT Concepts below.
If you have any questions, feel free to leave them in the comments section.
Happy trading!
The_Architect
TradingView Masterclass: Create your perfect chartDive into this video for a hands-on masterclass on TradingView's chart settings, created just for you! From the general themes to the smallest details, you'll learn how to fully customize your charts to match your unique trading style and preferences.
Discover how to access and adjust every aspect of your charts, making sure they look, present data, and integrate trading features exactly how you want. Here is what we'll cover in the video:
Make your data beautiful : Tweak symbol settings, particularly candlesticks, learning to modify colors, borders, and wicks for clarity in how you see the data.
Status Line Insights : Adjust the status line to display the information you need at a glance, keeping your charts clean and focused.
Scales and Lines : Adjust scales and lines for a clearer understanding of price movements and timelines.
Canvas Customization : Learn how to set the perfect background for your charts, adjusting colors, grid lines, and visibility of indicators for a personalized analysis space.
Integrate Trading and Events : Enhance your charts by integrating trading features and real-time events like news, earnings, and dividends, offering a complete market view directly on your chart.
Create Your Perfect Chart: Now it's your turn. Experiment with settings to find your perfect chart setup and learn how to save and access your preferred layouts and templates efficiently.
Let's unlock the full potential of your charts together!
💡Tip:
Discover additional tutorials on our YouTube channel , and keep an eye out for new video content we're incorporating into articles in our Help Center .
HOW TO SET TAKE PROFIT AND STOP LOSSES ON CONNECTED BROKERSOne of the best features of TradingView is all the connected brokers and how you can not only place, but also move any take profit and stop losses around on the screen to match what you are seeing on your various indicators or support levels.
Video also covers a way to gracefully exit out of a trade bit by bit if you are already up a long way and want to protect your profit by selling a little bit at a time instead of the whole lot if the price starts coming down.
It's very cool.
Let's Talk Liquidity! ⚒️At first, Liquidity may seem like an abstract and confusing concept reserved for only those Finance nerds and geeks to tackle. Turns out it's really not too sophisticated after all and can be though of in terms of Fomo. Fomo if you are not aware already is simply a concept related to chasing the market because of a Fear of missing out. Any action out of fear is typically not the best choice. In trading, this is especially true.
Liquidity is what the market needs prior to a big move. Liquidity doesn't necessarily mean that the market needs to pin an extreme low or high from the previous session. Liquidity is also gathered when the market ranges/consolidates for awhile. If you go back and backtest, you will observe that preceding a large move, the market usually consolidates first. Liquidity also dries up during Asian session. You can observe that the volatility is much smaller than London/Ny session as the market moves alot less # of pips. Liquidity dries up prior to news annoucnemnts becuase of uncertainty obviously. This is the very reason why the market moves so much during news is because of lower participation from larger market participants, therefore an increased chance of wild and random price movements.
This is explained more in depth in this concept video, Let's talk Liquidity.
Backtesting strategies using TradingView's replay featureBacktesting trading strategies using TradingView's replay feature is a valuable tool to evaluate the effectiveness of your strategy in different market conditions and timeframes. Here's a step-by-step guide on how to backtest strategies using TradingView's replay feature:
**1. Define Your Strategy:**
- Clearly define the rules and parameters of your trading strategy, including entry and exit conditions, stop-loss and take-profit levels, and any other relevant criteria.
**2. Access the Replay Feature:**
- Open the chart for the GBP/USD pair on TradingView.
- Click on the "Replay" button located at the bottom of the chart. This will activate the replay feature, allowing you to scroll back and forth through historical price data.
**3. Set the Timeframe and Date Range:**
- Choose the timeframe (e.g., 1-hour, 4-hour, daily) that matches the trading frequency of your strategy.
- Select the specific date range you want to backtest your strategy on. You can adjust the date range using the timeline at the bottom of the chart.
**4. Apply Indicators and Drawing Tools:**
- Apply any indicators, drawing tools, or overlays that are part of your trading strategy to the chart.
- Ensure that the parameters of your indicators are set according to your strategy's rules.
**5. Start the Replay:**
- Begin the replay by clicking on the play button in the replay control panel.
- You can adjust the playback speed using the speed slider to simulate different market conditions and trading environments.
**6. Execute Trades:**
- As the replay progresses, identify potential trade setups according to your strategy's rules.
- Manually execute trades (open, close, or modify positions) based on your predefined entry and exit conditions.
**7. Record Results and Observations:**
- Keep track of the performance of each trade, including entry and exit prices, profit or loss, and any deviations from your strategy's rules.
- Take note of any observations or insights gained during the backtesting process, such as areas of strength or weakness in your strategy.
**8. Analyze Results and Refine Strategy:**
- Analyze the overall performance of your strategy, including profitability, win rate, maximum drawdown, and risk-adjusted returns.
- Identify areas for improvement or optimization based on the results of your backtesting.
- Consider making adjustments to your strategy's parameters, entry/exit rules, or risk management techniques to enhance its effectiveness.
**9. Repeat and Iterate:**
- Repeat the backtesting process on different timeframes, market conditions, and historical periods to validate the robustness of your strategy.
- Continuously iterate and refine your strategy based on feedback from backtesting results and real-time trading experience.
By utilizing TradingView's replay feature for backtesting, you can gain valuable insights into the performance of your trading strategy and make informed decisions about its suitability for live trading.
Trading with a trend: basics and strategyIn this video I explain how to indentify trends on the chart and how to use this knowledge to make trading decisions. At the end of the video we'll create a simple yet profitable trading strategy
Waves Light indicator:
Disclaimer
I don't give trading or investing advices, just sharing my thoughts