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The Art of Candlestick Trading: How to Spot Market Turns EarlyBuckle up, TradingViewers! It's time to unravel the ancient secrets of candlestick patterns. Originating from an 18th-century Japanese rice trader, these patterns aren't simply red and green elements on your trading charts—they are the Rosetta Stone of market sentiment, offering insights into the highs and lows and the middle ground of buyers and sellers’ dealmaking. If you’re ready to crack the code of the market from a technical standpoint and go inside the minds of bulls and bears, let’s light this candle! Understanding the Basics: The Candlestick Construction First things first, let’s get the basics hammered out. A candlestick (or Candle in your TradingView Supercharts panel) displays four key pieces of information: the open, close, high, and low prices for a particular trading period. It might be 1 minute, 4 hours, a day or a week — candlesticks are available on every time frame. Here’s the breakdown: The Body : This is the chunky part of the candle. If the close is above the open, the body is usually colored in white or green, representing a bullish session. If the close is below the open, the color is usually black or red, indicating a bearish session. The Wicks (or Shadows) : These are the thin lines poking out of the body, showing the high and low prices during the session. They tell tales of price extremes and rejections. Understanding the interplay between the body and the wicks will give you insight into market dynamics. It’s like watching a mini-drama play out over the trading day. Key Candlestick Patterns and What They Mean Now onto the fun part — candlestick formations and patterns may help you spot market turns (or continuations) early in the cycle. The Doji : This little guy is like the market’s way of throwing up its hands and declaring a truce between buyers and sellers. The open and close are virtually the same, painting a cross or plus sign shape. It signals indecision, which could mean a reversal or a continuation, depending on the context. See a Doji after a long uptrend? Might be time to brace for a downturn. The Hammer and the Hanging Man : These candles have small bodies, little to no upper wick, and long lower wicks. A Hammer usually forms during a downtrend, suggesting a potential reversal to the upside. The Hanging Man, its evil twin, appears during an uptrend and warns of a potential drop. Bullish and Bearish Engulfing: These are the bullies of candlestick patterns. A Bullish Engulfing pattern happens when a small bearish candle is followed by a large bullish candle that completely engulfs the prior candle's body — suggesting a strong turn to the bulls. Bearish Engulfing is the opposite, with a small bullish candle followed by a big bearish one, hinting that bears might be taking control of the wheel. The Morning Star and the Evening Star : These are three-candle patterns signaling major shifts. The Morning Star — a bullish reversal pattern — consists of a bearish candle, a small-bodied middle candle, and a long bullish candle. Think the dawn of new bullish momentum. The Evening Star, the bearish counterpart, indicates the onset of bearish momentum, as if the sun is setting on bullish prices. The Shooting Star and the Inverted Hammer : Last but not least, these candles indicate rejection of higher prices (Shooting Star) or lower prices (Inverted Hammer). Both feature small bodies, long upper wicks, and little to no lower wick. They flag price exhaustion and potential reversals. Trading Candlestick Patterns: Tips for Profitable Entries Context is King : Always interpret candlestick patterns within the larger market context. A Bullish Engulfing pattern at a key support level is more likely to pan out than one in no-man’s-land. Volume Validates : A candlestick pattern with high trading volume gives a stronger signal. It’s like the market shouting, “Hey, I really mean this move!” Confirm with Other Indicators : Don’t rely solely on candlesticks, though. Use them in conjunction with other technical tools like RSI, MACD, or moving averages to confirm signals. Wrapping It Up Candlestick patterns give you a sense for the market’s pulse and offer insights into its moment-to-moment sentiment — is it overreacting or staying too tight-lipped. Mastering candlesticks can elevate your trading by helping you spot trend reversals and continuations. These patterns aren’t foolproof — they are powerful tools in your trading toolkit but require additional work, knowledge and context to give them a higher probability of confirmation. It’s time to light up those charts and let the candlesticks illuminate your trading path to some good profits!
Education
by TradingView
6
The BEST Shortcut to Consistent Trades: Multi-Timeframe Magic!Here’s a **top-down analysis** of the **XAUUSD (Gold Spot)** based on the charts and liquidity zones (LQZ) , starting from the **higher timeframes** to the **lower timeframes**. This approach helps to align trade decisions with the broader market context. 1. Weekly Timeframe: - Weekly Flag Trendline: The price is testing the upper boundary of a long-term flag pattern. This flag could be seen as a **continuation pattern** in a larger bullish market structure. - Scenario: A breakout above this weekly flag would suggest the resumption of the broader **uptrend**, targeting significant levels around **$2,600 and higher**. - Bearish Risk: A strong rejection from this trendline could signal a larger pullback, potentially targeting support around **$2,470** (Daily LQZ) or lower. 2. Daily Timeframe: - Trend: The daily structure shows price building towards testing resistance at the **4-hour LQZ** of **$2,532.144**. If momentum continues, a breakout could confirm a larger bullish push. - Daily LQZ: Located at **$2,470.804**, this is a critical support level. A break below it would signal a change in the market structure towards more bearish conditions. 3. 4-Hour Timeframe: - **4-Hour LQZ**: Key resistance at **$2,532.144**. If this is breached, it confirms a breakout of the flag on higher timeframes, leading to a stronger bullish move. A failure to break this level could trigger a reversal back to lower support zones. - Pattern: The current price action is consolidating near the top of the wedge, indicating indecision but with potential to resolve upwards if the breakout sustains. 4. 1-Hour Timeframe: - Support: **1-hour LQZ** at **$2,513.704** acts as immediate support. It’s vital to monitor how price reacts around this area. A hold above this level suggests bulls remain in control. - Entry Considerations: Watch for a clean breakout above the **weekly flag trendline** with price closing above the **4-hour LQZ** and respecting the **1-hour LQZ** during pullbacks. A break of this support may invalidate the bullish scenario, leading to downside risks. Key Scenarios: 1. Bullish (Preferred): - A breakout above the weekly flag pattern, supported by a breakout of the **4-hour LQZ** at **$2,532.144**, would signal a continuation of the bullish trend. - Target higher levels around **$2,560** initially, with potential further upside towards **$2,600** if momentum remains strong. 2. Bearish (Risk Scenario): - A failure to break the **4-hour LQZ** or a rejection at the weekly flag trendline, coupled with a break below the **1-hour LQZ** at **$2,513.704**, could lead to a move lower. - Targets for shorts would include the **Daily LQZ** at **$2,470.804**, with further downside to **$2,420** and **$2,402** if bearish momentum builds. Confluence Factors: - The alignment between the **weekly flag breakout** and price respecting **lower timeframe LQZ** levels will be crucial for confirming a sustained trend. - Conversely, any rejection and failure to hold these levels could shift bias towards downside risks. Conclusion: This **top-down analysis** favors a **bullish breakout**, but careful monitoring is required at critical resistance levels. Risk should be managed tightly around the **1-hour and 4-hour LQZs** to confirm trend direction.
OANDA:XAUUSDEducation
by Adlercon333
Understanding Order Block Trading StrategyOrder block trading is a technical analysis strategy that identifies potential support or resistance levels based on the accumulation or distribution of orders within a specific price range. These areas are often referred to as "order blocks." Key Concepts: Order Block: A price range where a significant number of buy or sell orders have been placed. Support: A price level where demand is strong enough to prevent the price from falling further. Resistance: A price level where supply is strong enough to prevent the price from rising further. Identifying Order Blocks: Price Action: Look for areas where the price has consolidated or paused for a significant period, indicating a potential accumulation or distribution of orders. Volume: Analyze the volume profile to confirm the presence of an order block. High volume during consolidation can indicate a larger accumulation or distribution. Structure: Consider the overall market structure and trend direction. Order blocks are more likely to be effective in a trending market. Trading Strategies: Buying at Support: If the price approaches a confirmed support level (an order block where accumulation has occurred), consider buying with the expectation that the price will bounce off the support. Selling at Resistance: If the price approaches a confirmed resistance level (an order block where distribution has occurred), consider selling with the expectation that the price will reverse downward. Using Order Blocks as Targets: Once a trade is initiated, use the order block as a potential profit target. If the price reaches the order block level, consider taking profits. Stop-Loss Placement: Place a stop-loss below the support level for long positions and above the resistance level for short positions to manage risk. Example: In this example, the shaded area represents an order block where a significant number of buy orders were likely placed. If the price approaches this level from below, traders might consider buying with the expectation that the price will bounce off the support. Note: Order block trading is not a foolproof strategy and requires practice and experience to master. It's essential to combine this technique with other forms of technical analysis and risk management strategies.
NSE:NIFTYEducation
by Trade_With_Prakash
Forex Trader or Forex Gambler: Which One Are You?In Forex trading, it’s crucial to distinguish between a professional approach and a gambling mindset. Often, new traders unintentionally approach the market like gamblers, driven by emotion or the desire for fast profits. However, success in Forex is about being methodical and disciplined, rather than relying on chance. Let’s explore the key differences between a Forex trader and a Forex gambler: 1. Mindset: Strategy vs. Chance The Trader: A Forex trader works with a clear strategy, rooted in research and planning. They know that short-term market fluctuations are unpredictable, but over time, a sound strategy can generate positive results. Their approach is logical and systematic, focusing on probability and risk management. The Gambler: A Forex gambler, by contrast, takes trades impulsively, without a clear plan. They rely on luck or gut feelings, hoping for quick profits. Their actions are often driven by emotion rather than analysis, leading to inconsistent and risky trades. 2. Risk Management: Controlled vs. Reckless The Trader: Proper risk management is a defining trait of a successful trader. They always know how much they are willing to risk on a trade and use tools like stop-loss orders to limit their downside. They never gamble their entire capital on a single trade, aiming for sustainable, long-term growth. The Gambler: A gambler often overexposes themselves to risk, betting large portions of their account on a single trade in hopes of a big win. They may also chase losses by increasing their trade sizes, which can result in large losses and a wiped-out account. 3. Emotion: Discipline vs. Impulsiveness The Trader: Emotional discipline is key to a trader’s success. They stick to their plan and don’t let emotions like fear or greed dictate their actions. They understand that not every trade will be a winner and accept losses as part of the process. The Gambler: A gambler is highly emotional, letting wins and losses affect their judgment. When they lose, they may become desperate and make rash decisions in an attempt to recover. When they win, they might get overconfident, taking riskier trades. This emotional rollercoaster leads to poor decision-making. 4. Time Horizon: Long-Term Growth vs. Quick Wins The Trader: Traders focus on the long-term growth of their capital, understanding that consistent profits come with time. They aim for steady returns and have the patience to wait for the right trade setups. The Gambler: A gambler is in it for quick wins. They’re often driven by the desire to get rich quickly, taking high-risk trades with no regard for long-term consequences. They don’t think about sustainability, and when things go wrong, they often face big losses. 5. Preparation: Research vs. Guesswork The Trader: Traders spend significant time studying the market, using both technical and fundamental analysis. They understand the factors driving price movements and enter trades based on sound research. The Gambler: A gambler doesn’t bother with in-depth research. Instead, they rely on guesswork, tips, or simply hope that the market will move in their favor. They don’t consider economic data or market trends, which leaves them exposed to high risks. 6. Patience: Waiting for Setups vs. Overtrading The Trader: Successful traders know that not every market condition is ideal for trading. They wait for their strategy to signal a high-probability setup and don’t feel the need to be in the market at all times. The Gambler: Gamblers tend to overtrade, feeling the need to always have an open position. They frequently chase market movements without a clear plan, leading to erratic and impulsive trades. Overtrading increases transaction costs and can erode their capital over time. Moving Beyond the Gambler's Mentality Now that you understand the key differences between a trader and a gambler, how can you ensure you’re approaching the Forex market as a trader? 1. Develop a Clear Strategy A trader follows a well-defined plan based on technical or fundamental analysis. If you’re trading without a system, take the time to develop a strategy that suits your trading style. Your plan should include entry and exit points, risk management, and a clear set of rules to follow. 2. Embrace Risk Management Risk management is not optional; it’s the foundation of long-term success. Always know how much you’re willing to risk on a trade and use stop-loss orders to protect your capital. As a rule of thumb, never risk more than 1-2% of your account on a single trade. 3. Keep Your Emotions in Check One of the most challenging aspects of trading is controlling your emotions. Avoid emotional decision-making by sticking to your plan. If you find yourself making impulsive trades out of fear or greed, take a step back and reevaluate. 4. Focus on Long-Term Success It’s easy to get caught up in the excitement of short-term wins, but remember, successful trading is a marathon, not a sprint. Focus on consistent, incremental gains over time rather than chasing quick profits. 5. Educate Yourself Continuously The markets are always changing, and as a trader, you should be committed to continuous learning. Read books, follow market news, and study other successful traders. The more you know, the better equipped you’ll be to navigate the markets with confidence. Conclusion: Which One Are You? The main difference between a Forex trader and a gambler lies in discipline, preparation, and mindset. While a trader uses strategy, patience, and risk management to grow their capital sustainably, a gambler relies on luck, emotion, and impulsiveness, which leads to inconsistent and often damaging results. If you find yourself trading on gut feelings, overtrading, or taking on too much risk, it might be time to reassess your approach and shift your mindset toward that of a disciplined trader.
FOREXCOM:XAUUSDEducation
by Mihai_Iacob
4
Drop Base Drop Pattern: A Technical Analysis PerspectiveDefinition: The Drop Base Drop pattern is a technical chart pattern that indicates a potential continuation of a downtrend. It consists of a sharp decline in price, followed by a period of consolidation or sideways movement (the base), and then a resumption of the downtrend. Formation: First Drop: A significant price decline. Base Formation: A period of consolidation or sideways movement, often below the 0.5 Fibonacci retracement level of the previous decline. Second Drop: A continuation of the downtrend, breaking below the base's low. Trading Implications: Sell Signal: If the Drop Base Drop forms below the 0.5 Fibonacci retracement level in a downtrend, it suggests a potential continuation of the bearish trend. Risk Management: Employ stop-loss orders to mitigate potential losses. Confirmation: Seek additional technical indicators or chart patterns to reinforce the bearish signal. Key Considerations: False Breakouts: Be cautious of false breakouts, where the price temporarily breaks below the base's low but then reverses. Market Conditions: The effectiveness of the pattern may vary depending on overall market conditions and the specific characteristics of the underlying asset. Individual Stocks: The pattern's reliability can differ between stocks. Analyze multiple timeframes and technical indicators for a more comprehensive assessment. Conclusion: The Drop Base Drop pattern can be a valuable tool for identifying potential downtrend continuations. However, it's essential to use it in conjunction with other technical analysis techniques and risk management strategies.
TVC:USOILEducation
by Trade_With_Prakash
The SAFEST Entry Technique - 18 Period Moving Average MethodA great deal of viewers have contacted me asking how I "time" the market. In other words, once I've identified a market as "set up" (via COT strategy or Valuation Strategy), how do I get into a trade. This video is the first in a series that will outline the entry techniques that I use. 18 PERIOD MOVING AVERAGE ENTRY METHOD: By far, this method is the safest change of trend confirmation that you will find. There are other entry techniques that will get you into the market sooner, sure. But those other entry techniques come with greater risk, and could be called "bottom picking" to some degree. The 18 Period MA Entry Method is simple. STEP 1: Plot the 18 period SMA on your chart based on the closing price. STEP 2: For LONGS , you need to see two full range candles form ABOVE the MA. From there, mark out the highest high of those 2 candles. When price trades up into that high, the trend has officially changed to bullish. For SHORTS , you need to see to full range candles form BELOW the MA. From there, mark out the lowest low of those 2 candles. When price trades down into that low, the trend has officially changed to bearish. CAVEAT: We do not count inside bars (bars that form within the range of the previous candle). If you see inside bars, skip them and continue your 2 bar count. STEP 3: Enter at market when high/low is breached. Risk management is something I will review in another video, but generally, I add/subtract 120%-150% of the 3 bar ATR. CLARIFICATION: To be clear, this entry technique should not be traded blindly. You need to have a REASON to take the trade (for example, COT strategy suggests a market is setup for a trade, or the Valuation/Ducks in a Barrel setup suggests a market is setup for a trade). CREDIT: I credit Larry Williams, Tom DeMark, Brian Schad & Jake Bernstein for their influence in these ideas. If you have any questions about this entry technique, feel free to shoot me a message. Good Luck & Good Trading.
Education
by Tradius_Trades
2
Trading EURUSD | Judas Swing Strategy 05/09/2024At 08:25 EST, we were at our trading desk, eager for opportunities the trading session might offer. We began our session by marking out our trading zones. After an hour and a half, we observed a sweep of liquidity at the high of the zone, signaling potential selling opportunities in this trading session. Shortly after the liquidity sweep, there was a structural break to the downside, bolstering our confidence in the emerging setup. The next step was to wait for a retracement into the freshly formed Fair Value Gap (FVG). We have finally seen price trade back into the Fair Value Gap (FVG). After the closure of the candle that retraced into the FVG, we can execute our trade since all the criteria on our checklist for trade entry have been fulfilled. This trade experienced a drawdown for just five minutes before price began to move favorably in our anticipated direction. Patience is key as we await the trade's result. Whether it results in a win or a loss, we are prepared for either outcome since we have risked only 1% of our account, targeting a 2% return. Upon reviewing the position, we found it had returned to our entry point. At such a juncture, traders who have risked more than they can afford may panic. However, our comprehensive backtesting data on this strategy reinforces our confidence in the strategy, risk management approach and the importance of trusting the process. We were unlucky this time as the trade hit our stop loss and we lost 1% on this trade. The Judas Swing strategy is a simple strategy any trader can add to their arsenal. A trader simply needs to be present between 08:30 and 11:00 EST to look for trading setups. While not the "holy grail", this strategy boasts a win rate of approximately 50% and a risk-reward ratio of 1:2
Education
by CleoFinance
1
Emerging markets (EEM) - Bear Flag targets $18Back in 2021, I posted about Emerging markets with a title "EEM. Emerging markets could drop within the last leg down" The plan plays out well so far and I found another educational pattern for you on it today. The Bear Flag appears in the chart as I spotted it on time. The price is still within the Flag and breakdown below the downside of the pattern would trigger the continuation of the downtrend after this consolidation. The target is located at the distance of the Pole subtracted from the downside of the Flag. $18 is the bottom of the large range and the aim for the Bear Flag. This is the beauty of the patterns as they match with other type of analysis.
AMEX:EEMEducation
by aibek
Forex: Money Management MattersForex: Money Management Matters Forex trading management is of paramount importance. Currency trading is not a game of chance, so a trader can and should control risk, monitor cash flow, and regularly review their strategies. In forex trading, where prices change rapidly, money management becomes the most useful tool. This FXOpen article discusses some popular forex money management strategies you need to know about. What Is Money Management in Forex? Forex money management refers to a set of principles, strategies, and techniques used by traders to effectively manage capital when working on the foreign exchange market. Money management in trading is interconnected with risk management. Money management for traders is not just about preserving your capital; it’s about the possibility to maximise your returns and minimise risks. It’s the framework that separates successful traders from the rest. Money Management in Trading Without money and risk management, a trader is like a sailor navigating dangerous waters without a compass. To help you find a way to preserve capital, below there’s a list of the most widely used strategies. Calculating Position Sizes One of the most popular forex money management strategies is determining position sizes. This involves sizing each trade according to your trading capital and risk tolerance. It helps ensure that a single losing trade does not significantly drain your trading account. Let’s take a look at the most common methods. Fixed lot sizes. With this approach, you trade a set number of lots or units for every position. This provides consistency, as each trade carries the same position size. Fixed lot sizes also allow for precise control over the monetary risk. However, this model may not adapt well to changes in market conditions and your capital. Percentage-based position sizing. This approach allows you to adjust your position size depending on the size of your trading account or the amount you are willing to risk on each trade. The position size can grow with the account and shrink during drawdowns. This helps you maintain a constant level of risk in different trades. However, the calculations require more mathematical effort than with fixed lot sizes. Volatility-based position sizing. Here, the size of positions is adjusted depending on the level of volatility in the market. If volatility is high, a trader might trade smaller positions, and if it is low, a trader might trade larger positions. This model aims to limit risk during times of elevated market uncertainty. However, the approach is complex and requires the monitoring and analysis of market changes. Risk-based position sizing models. Such models are designed to match the position size to your defined risk tolerance. You specify the maximum amount you are willing to risk on a trade, and the model calculates the position size accordingly. This approach prevents trades from having a disproportionate impact on the overall account balance. However, in risk-based models, the position size may not adapt to different levels of market volatility. Setting Stop-Loss Orders A stop-loss order is a predefined price level at which you decide to exit a trade. It helps you maintain discipline and avoid emotionally driven decisions. By setting a stop-loss order, you protect your trading capital — it acts as a safety net, ensuring that you don’t incur losses beyond the predetermined level. Placing stop-loss orders at the right levels is a skill that can significantly impact trading results. Here are some techniques: 1. You can use technical analysis tools , such as support and resistance levels, trend lines, and chart patterns, to identify logical places for stop-loss orders. 2. You can adjust your stop-loss levels based on the volatility of the currency pair you’re trading. In highly volatile markets, wider stops help to account for price fluctuations, while in calmer markets, tighter stops may be appropriate. 3. You can analyse multiple time frames to gain a comprehensive view of the market. This helps identify both short-term and long-term support and resistance levels for placing stop-loss orders. 4. You can consider using trailing stop-loss orders , which automatically adjust as the trade moves in your favour. They allow you to lock in profits while letting a winning trade run, reducing the risk of prematurely exiting a profitable trade. Thanks to technical advancement, there are now many online tools that can help you in trading. For example, using a forex true money management calculator, traders can accurately determine their position sizes and risk levels and enhance their trading strategies. Diversifying Assets In forex, diversification is a key money management strategy that involves spreading your investments across different currency pairs. The goal is to reduce the impact of a poor-performing asset on your overall portfolio and increase the chances of achieving consistent returns. Traders combine major, minor, and exotic currency pairs to spread risk. Majors are known for their liquidity and stability, while minors and exotics often offer unique opportunities. You can also explore other asset classes, for instance, stocks, indices, cryptocurrencies*, or commodities and trade their CFDs at FXOpen. Analysing Correlation Understanding how different assets are correlated with one another is crucial for effective diversification. Asset correlations indicate how two or more assets move against each other. There are positive and negative correlations. - A positive correlation is when two assets move in the same direction. For example, if EUR/USD and GBP/USD have a positive correlation, they tend to move up and down together. - A negative correlation is when two assets move in opposite directions. If USD/JPY and AUD/CAD have a negative correlation, when USD/JPY rises, AUD/CAD tends to fall, and vice versa. Correlation coefficients range from -1 to 1, indicating the strength and direction of correlation. It’s a good idea to use historical data and statistical tools to measure correlations between currency pairs and other assets. On the TickTrader platform, you can find useful charts with historical currency pair quotes. Final Thoughts Your performance in the forex market is not only determined by forecasting price movements. It largely depends on the ability to manage money, reduce risks, and preserve capital. By applying the strategies and principles discussed above, you will be able to confidently and competently navigate the forex market. You can open an FXOpen account to test these strategies and techniques. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
What makes a good business plan for your trading?Some insights into my experience building a solid business plan for my FX/Indices/Commodities trading portfolio: 1️⃣ Define clear objectives: I set specific, measurable, achievable, relevant, and time-bound (SMART) goals for my forex trading. Having a clear vision helps me stay focused and track progress. 2️⃣ Risk management is paramount: I prioritize risk management above all. I define my risk tolerance, mark circuit breaker protection levels, drawdown thresholds, set damage control levels, and use proper position sizing to protect my capital. Preserving my trading capital is key to longevity. 3️⃣ Choose a trading style: I identify a trading style that suits my personality, schedule, and risk appetite. Whether it's day trading, swing trading, or scalping, consistency in execution is vital but I usually end up with a mix. 4️⃣ Strategy & analysis: I develop a robust trading and portfolio balance strategy based on technical analysis, fundamental factors, sentiment or a combination. Regularly reviewing and fine-tuning my approach ensures adaptability to changing market conditions. 5️⃣ Monitor & review performance: I keep a detailed trading journal to track trades, analyze patterns, and identify strengths and weaknesses. Reviewing my performance on a bi-annual basis helps me make data-driven improvements. 6️⃣ Stay disciplined & patient: Emotions can sway decisions. I cultivate discipline and patience to stick to my plan, avoid impulsive moves, and always apply my edge consistently regardless of emotional state. 7️⃣ Continuous learning: Forex markets evolve, and so do I. I invest time in learning and reading market insights. Staying informed is crucial for staying ahead. My trading business plan is not rigid but adapts as I grow and gain experience. It keeps me focused, accountable, and resilient amidst the market's uncertainties. 🚀📈
FX:BUNDEducation
by AlexSoro
1
Head & Shoulders pattern: 10 year yield could drop to 2.87%The series of tops shaped notorious Head & Shoulders pattern on 10-Year Treasury yield (TNX). The tallest peak is the Head and Shoulders are on both sides. The Neckline is the support that is built through valleys of the Head. The price has breached the Neckline this summer triggering the pattern bullish scenario. The target is calculated by subtracting the height of the Head (from top to Neckline) from breakdown point on the Neckline. It is located around 2.87%. Almost 1% down from the current level
TVC:TNXEducation
by aibek
ADX — Or The 1-Minute Hack For Better Trading ResultsEvery trader dreams about that magic trick that delivers better trading results—this one little thing that miraculously turns their strategy into a bullet-proof winner, striking a 100% success rate. Unfortunately, this article doesn't provide that magic trick. If you are looking for it, you must continue searching (but remember to hit me up if you find it). However, this article provides a simple trick to improve your trading results. They won't hit a success rate of 100% but should definitely improve. The best part is that it is a super easy trick to implement or utilize within minutes. You may already expect what this trick is about: It's about a technical indicator. Drum-roll: Introducing the Average Directional Index (ADX). What Is The ADX About? I know it's boring, but let's do some theory first! It will help you understand the indicators and why using them will improve your trading results. The Average Directional Index (ADX) is an indicator used to measure the trend strength. The indicator was developed by J. Welles Wilder in 1978. Over the years, the ADX has become a reliable tool for traders looking to identify strong market trends. Here's the part you should understand: The power of the ADX lies in its ability to filter out noise. Subsequently, it provides a clear view of whether a market is trending or ranging. Here's How The ADX Helps To Achieve Better Trading Results Here's what I experienced when using the ADX in my trading strategies. 1—The ADX Helped Me To Understand Trends (Easily) The ADX has really simplified how I analyze trends by quantifying their strength. It's been a game changer for me, helping to gauge market momentum and enabling me to make more informed decisions. 2—Versatile Usage Especially recently, I trade different timeframes. In this context, the ADX fits into my diverse trading strategies. It's versatile across various markets and timeframes. 3—Making More Confident Decisions Incorporating the ADX into my trading approach has added a crucial layer of confirmation. This boost in confidence has significantly improved my decision-making process, making me feel more secure about the trades I place. By integrating the ADX into your trading strategy (we will discuss how to do that in a second), you can filter out "false alerts." In other words, you filter out trade signals unsupported or driven by a trending market. Ultimately, the number of entry signals you get is lower; however, the quality will be significantly better. How To Use The ADX? Integrating the ADX into your trading strategy is easier than easy. Here's how I use it: I always turn to the ADX for that extra assurance before making any trades. Therefore, in my trading strategy, an ADX value above 30 is my green light for a strong trend. Even reading around 25 catches my eye, signaling a trend building up and potentially worth my investment. Whenever the ADX is below 25, it's my cue to hit the brakes. It usually means the trend is weak or the market's just moving sideways. I've learned patience pays off here, waiting for clearer signs of a solid trend before jumping back in. Putting The 1-Minute Hack To Test Here's what you can do: Integrate the ADX into your trading strategy for at least a month. This period allows you enough time to see how the ADX can change your approach to identifying trade opportunities and avoiding potential pitfalls. Alternatively, you can backtest your strategies after including the ADX to check how they would have performed. Wrapping It Up The ADX is a powerful yet straightforward tool that can clarify trend strength, helping you make more confident trading decisions. By incorporating it into your trading strategy, you're not just adding another indicator but adopting a strategy for more precise, more informed trading. Give it a go, and you may find that the ADX becomes an indispensable part of your trading arsenal.
BITSTAMP:BTCUSDEducation
by ben_walther
Why WAITING on XAU Will pay BIG TIME The charts cover different timeframes of the XAU/USD (Gold/US Dollar) pair, and they reveal several key technical structures and patterns that are useful for trading analysis. 1. Flag Pattern and Breakout (5-Minute and 15-Minute Charts) - On the 5-minute and 15-minute charts, there is a visible **flag pattern** following a strong upward move (bullish flag). This pattern typically indicates a continuation of the prevailing trend after a consolidation phase. - The flag's lower trendline (support) and upper trendline (resistance) are marked in yellow. The price consolidated between these lines, and the breakout occurred upwards, confirming the bullish continuation. This breakout could be a potential entry point for a long position, with the stop loss below the flag's lower trendline and a target based on the flagpole's length (the initial strong upward move preceding the flag). 2. Descending Channel and Potential Reversal (1-Hour and 4-Hour Charts) - The 1-hour and 4-hour charts display a **descending channel** (marked with yellow trendlines). The price recently touched the lower trendline and bounced back, showing signs of a potential reversal. - If the price continues to break above the upper trendline of the descending channel, it could signal a bullish reversal, providing a possible entry for a long trade. The risk management strategy should include placing a stop loss below the recent low (or the channel's lower trendline) and targeting previous resistance levels or the channel's upper boundary. 3. Broadening Wedge Formation (4-Hour Chart) - The broader view on the 4-hour chart shows a **broadening wedge pattern**, where the price has been making higher highs and lower lows. This pattern is generally considered a sign of increasing volatility and potential trend reversal. - If the price breaks above the broadening wedge's upper trendline, this could further confirm a bullish reversal. Conversely, a break below the lower trendline would suggest further downside potential. 4. Support and Resistance Zones (Highlighted on All Charts) - Several horizontal lines mark significant **support and resistance levels** around $2,507 and $2,532.144, respectively. These levels could serve as potential entry or exit points based on how the price reacts when approaching them. - Observing how the price interacts with these levels can provide clues for future price action. For example, a sustained move above $2,507 could confirm a bullish sentiment, whereas a rejection or false breakout might suggest the continuation of the bearish trend. Trading Strategy Recommendations: 1. Flag Pattern (Short-Term Bullish) If looking for short-term trades, consider entering a long position on a confirmed breakout of the flag pattern, with a stop loss below the flag's lower trendline. Target a move equal to the height of the flagpole added to the breakout point. 2. Descending Channel (Potential Reversal):If trading based on the descending channel, a break above the upper trendline could signal a reversal and a potential buying opportunity. In contrast, if the price rejects the upper trendline, consider shorting with a stop above the recent highs and target the lower boundary. 3. Broadening Wedge (Cautious Approach): For traders cautious about volatility, wait for a confirmed breakout from the broadening wedge to determine the trend direction. Enter long if it breaks upwards and short if it breaks downwards, setting stop losses just beyond the breakout points. 4. Support and Resistance Levels (Decision Zones): Use the marked support and resistance zones as decision points. Enter trades based on confirmation signals near these levels, and manage risk by adjusting stop-loss orders accordingly. By combining these observations with confluence factors such as higher time frame trends, candlestick patterns, and multi-touch confirmations, you can refine your entry and exit points and enhance your trading strategy.
OANDA:XAUUSDEducation
by Adlercon333
7
What I Wish I Knew as a Beginner: Daily ATR + Daily Open PriceIn this video, I dive into the crucial lessons I wish I knew when I first started trading, focusing on the Daily ATR and daily open price. Many U.S. traders believe they're getting an early start by waking up at 4-6 AM, but in reality, the New York session is the final session in the Forex market. By the time we hit our screens, the market might already be 'gassed,' with the ATR nearly maxed out. I explain why understanding this can save you from chasing trades that have already exhausted their potential. I'll also discuss the importance of the daily candle open, when the ATR value 'resets,' providing fresh opportunities for day traders. Learn how to time your entries better and avoid the common pitfalls that can trap even experienced traders
Education
by trader9224
22
Minimal Complimentary Aesthetic No analysis but wanted to share this color scheme I have concocted. It's nice to look at a beautiful chart if you're going to be staring at it for hours on end. I like to avoid very bright or jarring colors on my charts. I also avoid red as much as possible because it's not ideal for keeping a calm collected mind required for trading (IMO). I went for a cool modern look with complimentary oranges and steel blues. Here's the details: Canvas: Background Gradient Top: 1d2c3a Bottom: 29485b Text: d1e6ff -- Candles: Up (color, opacity) Body: b2b5be, 0 Border: b2b5be, 100 Wick: b2b5be, 100 Down (color, opacity) Body: f9a26c, 100 Border: f26627, 100 Wick: f26627, 100 Vert/ Horizontal grid lines optional but if you decide to use them I personally like to use a very low opacity dark grey. And I use yellow for the price line but you can use whatever tbh. Here are the indicators used: Enjoy the theme and share any you have made you really like.
Education
by bhx10
4
BREAKDOWN & FREE TIPS FROM A PRO FOR ALL *TOWARDS BOTTOM* Simple trade I flowed with market structure based on a transition that occured on july 8th 2024 that is evident per daily and weekly timeframe which is the momentum timeframe. (thats huge) After this occured I utilized fibs and my understanding of candlestick structure and supp/res zones and awaited a certain area to break and retest and a beautiful lower high was created and we flowed to tp! brought sl into profit after 20 pips as usual to ensure this would be risk free but not too deep into profit to get stopped out and miss the overall move. IF YOU HAVE ANY QUESTIONS ABOUT ANYTHING ASK BELOW I GOT U! NOW FOR THE TIPS: * THE MOST CONSISTENT ISSUE I'VE SEEN FROM TRADERS ARE THE FOLLOWING: 1. MARRYING PARTICULARLY TIMEFRAMES (ROBBING URSELF OF THE WHOLE PICTURE) 2. NOT BEING DETAILED AND LAZY. LAZY EFFORT = LAZY RESULTS. 3. NOT UNDERSTANDING WHERE THEY ARE IN MARKET STRUCTURE OR KNOWING PROPER BIAS AT ANY GIVEN POINT 4. TRADING MORE THAN (1 OR 2) PAIRS. 5. BEING UNADAPTABLE TO WHAT HAPPENS AND/OR ALWAYS GUESSING INSTEAD OF USING ACTUAL DATA PRESENTED IN REAL TIME
Education
by PipSniperJ
Forex Day Trading: Setting a Bias for the DayWhen day trading forex, it’s easy for traders to get caught up in the ebb and flow of intraday volatility. This is where setting a daily bias becomes crucial. Having a clear directional bias forms the bedrock of your trading plan, providing a compass to guide your trading decisions throughout the day. It helps maintain focus, reduce emotional trading, and improve consistency. However, it's essential to remember that no bias is infallible. There will be times when the market defies expectations, and recognising when your bias may be wrong is a critical skill for successful trading. In this article, we’ll explore how to set a bullish or bearish bias for the day, particularly for traders focusing on European trading hours. We’ll use the 5-minute candle chart at 7 a.m. (GMT) as our reference point. By considering factors like prior day's price action, Asian session dynamics, and other technical indicators, you can form a well-rounded view of the market and make more informed trading decisions. The Importance of Having a Daily Bias A daily bias provides a structured approach to trading. It acts as a filter, helping you focus only on setups that align with your bias, thus avoiding unnecessary trades. For instance, if your bias is bullish, you’ll primarily look for buying opportunities and vice versa for a bearish bias. This focused approach not only helps in capitalising on the most promising trades but also minimizes losses by avoiding trades that go against your established bias. Having a bias doesn’t mean sticking to it rigidly. Markets are dynamic, and price action can change quickly. The key is to have systems and checkpoints in place that help you recognise when your bias might be wrong, allowing you to adjust your strategy accordingly. Reassessing your bias before the start of key trading sessions, such as the US open, can also be a good practice to ensure you're aligned with the latest market developments. Factors to Consider When Setting a Bias 1. Prior Day’s Price Action Understanding the previous day’s price action provides context for today’s trading. Analyse the following factors: • Predominant Trend: Was the trend bullish, bearish, or sideways? Identifying the trend helps you align your bias with the existing market momentum. • Close in Relation to High and Low: Did the market close near the high or low of the day? A close near the high suggests buying strength, while a close near the low indicates selling pressure. • Point of Control (POC): Using tools like the SVP HD indicator, observe the POC (the price level with the highest traded volume) of the prior day. Is it higher or lower than the previous day’s POC? A higher POC suggests bullish sentiment, while a lower POC indicates bearish sentiment. 2. Asian Session Price Action The Asian trading session often sets the tone for the early European session. Monitoring the overnight price action provides insights into how market sentiment may have shifted. Consider the following: • Price Relation to Prior Day’s High/Low: Did the price defend the prior day’s low (bullish) or break above the prior day’s high (bullish)? Conversely, did it reject the prior day’s high or break below the prior day’s low (bearish)? • Asian Session Range: Identify the high and low of the Asian session. Has a range formed, and if so, is the current price above, below, or within this range? A price above the Asian range suggests bullish momentum, while below suggests bearish momentum. • VWAP Position: The Volume Weighted Average Price (VWAP) is a key indicator for intraday bias. If the price is holding above the VWAP, it’s a bullish signal. If below, it’s bearish. 3. Bigger Picture Context While day trading focuses on the short-term, it’s important to consider the broader market context: • Daily Trend: Is there an established uptrend, downtrend, or sideways market in the daily time frame? While your intraday bias doesn’t need to align with the bigger picture, being aware of the overall market structure helps in making informed decisions. • Market Structure: Are there key support and resistance levels nearby? Is the market in a breakout or consolidation phase? Examples of Setting a Bias Bullish Bias: If, at the start of the European trading session, the EUR/USD shows a clear bullish trend from the prior day—holding above VWAP and closing near the intraday highs—this can suggest a bullish bias. Further confirmation might come from the Asian session price action showing prices holding above the prior day's high and maintaining a position above VWAP. EUR/USD 5min Candle Chart Past performance is not a reliable indicator of future results Bearish Bias: Conversely, if the EUR/USD exhibited a consistent bearish trend during the prior day—remaining below VWAP and closing near the lows—this indicates bearish sentiment. If the Asian session showed a brief retracement followed by a break below a key retracement line and VWAP, it would further reinforce a bearish bias. EUR/USD 5min Candle Chart Past performance is not a reliable indicator of future results News Events and Economic Calendar News events can dramatically affect market sentiment and price action, often causing volatility spikes. Always check the economic calendar before forming your bias. High-impact news, such as central bank announcements, employment data, or geopolitical events, can override technical signals. Be prepared for increased volatility around these times, and consider adjusting your bias or staying on the sidelines to avoid unnecessary risk. Reassessing Your Bias During the Trading Day Markets are continuously evolving, and a bias set early in the day may not hold as new information becomes available. It’s a good idea to reassess your bias before the start of the US trading session. The US session often brings a fresh wave of liquidity and can change the market’s direction. By reviewing price action, key levels, and any news events that have occurred, you can decide whether to stick with your initial bias or make adjustments to your trading plan. Balancing Creativity and Discipline Setting a daily bias is not an exact science; it’s a blend of art and strategy. Over time, experience will improve your ability to interpret market signals and adjust your bias. Thinking creatively within a structured framework and remaining flexible is a great mindset for day trading. Use your bias as a guide, but be ready to adapt when the market tells you otherwise. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.51% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Education
by Capitalcom
Pareidolia in Trading; or seeing what we want to seeIn trading, as in many areas of life, our perceptions are often shaped by our desires and expectations. This phenomenon, where we see patterns or signals that align with our preconceived notions, can be likened to pareidolia—a psychological tendency to perceive familiar shapes or patterns in random or ambiguous stimuli, like seeing faces in clouds or animals in rock formations. In the context of trading, pareidolia can manifest as the tendency to identify market patterns that confirm our biases, regardless of the objective data. Understanding Pareidolia in Trading: Pareidolia occurs when traders project their biases onto market charts, interpreting random price movements as meaningful patterns that align with their desired outcomes. For example, a trader might: - See Patterns That Aren't There: A trader with a bullish outlook might interpret a random series of higher lows as an emerging uptrend, even if the overall market context doesn't support this view. Similarly, a trader expecting a downturn might see every minor pullback as the start of a major reversal. - Misinterpret Neutral Data: In the desire to confirm a specific outlook, traders may interpret neutral or ambiguous data as supporting their position. This can lead to overconfidence and misguided trading decisions. - Ignore Contradictory Evidence: Just as pareidolia in everyday life causes us to ignore the randomness of what we see, in trading, it can lead to ignoring data or signals that contradict our desired market outlook. This selective perception can be dangerous, as it prevents traders from making balanced, informed decisions. The Importance of Objectivity The key to successful trading is maintaining objectivity. While it's natural to have a market outlook—bullish, bearish, or otherwise—it's essential to base your decisions on the full spectrum of available data, not just the signals that support your bias. Objectivity in trading involves: - Comprehensive Analysis: Always analyze the market from multiple angles. Use a variety of technical and fundamental tools to get a well-rounded view of the market. Avoid relying on a single indicator or pattern. - Risk Management: Incorporate strict risk management practices. This includes setting stop-loss orders, managing position sizes, and not allowing one biased interpretation to dictate your entire strategy. - Journaling and Reflection: Keep a trading journal to document your trades, including your reasoning for entering and exiting positions. Regularly review your journal to identify patterns in your thinking, particularly any tendencies to see what you want to see rather than what is actually there. - Seeking Alternative Perspectives: Engage with other traders or seek out market analysis that challenges your view. This helps in broadening your perspective and reducing the influence of personal bias. Overcoming Pareidolia in Trading To counteract pareidolia and its effects on your trading, consider the following steps: - Awareness: The first step in overcoming pareidolia is recognizing that it exists. Be aware of your own biases and how they might influence your interpretation of market data. - Diversification of Analysis: Use multiple sources of information and different types of analysis (technical, fundamental, sentiment analysis) to form a more balanced view of the market. - Challenge Your Assumptions: Regularly question your assumptions and consider alternative scenarios. This practice can help you remain flexible and adapt to changing market conditions rather than clinging to a biased perspective. - Adopt a Skeptical Mindset: Be skeptical of patterns that seem too good to be true or that perfectly align with your expectations. This skepticism can protect you from falling into the trap of seeing what you want to see. Conclusion: In trading, the tendency to see what we want to see—much like pareidolia—can cloud our judgment and lead to poor decision-making. By acknowledging this bias and actively working to maintain objectivity, traders can improve their ability to make sound, evidence-based decisions. The market is a complex and often unpredictable environment, and the best way to navigate it is with a clear, unbiased perspective that prioritizes facts over wishful thinking. P.S: I didn't randomly choose to post this educational piece under the BTC/USD chart on TradingView. In the case of Bitcoin, pareidolia is something I've encountered quite frequently. I vividly remember in 2021, when everyone was eagerly expecting BTC to surpass $100k, but instead, it began to decline. The majority of analyses were along the lines of: "BTC has dropped to the 50-day moving average, it’s a great buying opportunity," or "BTC has reached the 100-day moving average, an incredible moment to buy." And then, "It's at some horizontal support, that didn’t work out, so let’s count Elliott waves—whatever it takes to justify that it will reach $100k, $500k, or whatever." I don't claim to know whether BTC will hit $1 million in the long or very long term. All I know for sure is what the father of modern economics once said: "In the long run, we are all dead." And no, I have nothing against BTC or the crypto market. To keep things objective, I also have something to say to those who have been predicting BTC at $0 for over ten years, or to those who have been forecasting a market crash for five years straight and then finally shout they were right when the market does drop: "The last person to predict the end of the world will eventually be right." Have a nice day, Mihai Iacob
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
How to Trade with Hybrid StrategiesHow to Trade with Hybrid Strategies In today's intricate financial landscape, traders have an array of strategies at their disposal. This article delves into the core methods—technical, fundamental, and algorithmic/quantitative analysis—and introduces the concept of hybrid strategies. Learn how combining these techniques can offer a balanced approach to trading, enhancing decision-making and risk mitigation. Creating Hybrid Trading Strategies In the world of trading, there are primarily two schools of thought: fundamental analysis (FA) and technical analysis (TA). Fundamental analysis delves deep into economic indicators such as GDP, inflation rates, and earnings reports, aiming to assess an asset's intrinsic value. On the other hand, technical analysis focuses on studying past price movements and trading volumes, often through charts, to predict future activity. You can find all the charts and tools necessary for technical trading strategies over in FXOpen’s free TickTrader platform. While both approaches have their merits, a growing number of traders are blending these methodologies to create what are known as hybrid strategies. Creating a hybrid strategy involves integrating the predictive elements of both FA and TA. For example, a trader might consider an asset's economic indicators to gauge its inherent value and then use technical tools like Moving Averages or Bollinger Bands to time their entries or exits. The aim is to capitalise on the strengths of each approach while mitigating their individual weaknesses. Beyond traditional financial markets, the principles of hybrid strategies have been used for cryptocurrencies*. Given the highly volatile and dynamic nature of crypto* assets, a well-crafted crypto* trading strategy often incorporates both fundamental and technical elements. While fundamental analysis in crypto* trading might involve studying the utility and adoption rates of a specific digital asset, technical analysis frequently employs chart patterns and indicators to gauge market sentiment. Combining the two in crypto* trading methods can offer a more comprehensive understanding of market conditions, allowing traders to better position themselves for potential opportunities while managing risks effectively. Strategy 1: Overbought/Oversold after News Release The overbought/oversold after news release strategy capitalises on short-term market fluctuations that occur as a reaction to major economic announcements, using the Relative Strength Index (RSI) to determine whether the price is overbought or oversold. This approach is particularly effective on lower timeframe charts, where quick reversals are more pronounced. Entry Traders often wait for a significant economic news release that could impact the market. Once the RSI indicator crosses back below 70 or above 30, an entry point is typically considered. Stop Loss Stop losses are commonly set at the most recent swing high or low to protect against adverse market moves. Take Profit Traders usually aim for a risk-reward ratio of at least 1:2. Profits are often taken at established support or resistance levels, depending on the direction of the trade. In this example, we see the EUR/USD currency pair immediately after the release of US GDP data. The news caused a spike in the pair's price, pushing the RSI above 70, indicating an overbought condition. After the initial excitement, the RSI crossed back below 70, and a retracement followed. Traders using this strategy could have considered this an opportune point for a short position, expecting the price to revert to a mean or proceed downward. Strategy 2: Interest Rate Differential Pullback The interest rate differential pullback strategy leverages the disparity in interest rates between two currencies to predict long-term directional bias. By combining this fundamental factor with a technical setup involving 50-period and 200-period EMAs, traders can pinpoint high-probability entry and exit points. This strategy is often most effective on higher timeframe charts such as the 4-hour or daily. Entry Traders usually identify a currency pair with a substantial interest rate differential. After a pullback in the prevailing trend, entry is typically considered when a crossover between the 50-period and 200-period EMA appears in the direction of the trend. Stop Loss Stop losses are commonly set below recent swing highs or lows. Alternatively, they can be set below or above either of the EMAs, depending on the trade direction. Take Profit Traders may choose to exit positions at predetermined support or resistance areas. Another approach is to wait for an opposite crossover of the 50-period and 200-period EMA to signal a trade exit. Above is a chart of the USD/JPY currency pair when the US interest rate was 2.5% and Japan's rate was -0.1%. Given this rate differential, a long-term appreciation of the pair was expected. On a 4-hour chart, a pullback occurred, and a subsequent crossover of the 50-period and 200-period EMA confirmed the long-term bullish bias. An entry would typically be considered at this point. Algorithmic Trading and Quantitative Analysis The advent of sophisticated algorithms has given rise to various automated trading strategies, including those that leverage hybrid approaches. Algorithmic trading strategies can execute a range of actions, from simple buy and sell triggers to complex portfolio rebalancing, all based on predefined criteria that could involve both FA and TA. For traders who seek a statistical edge, quantitative trading strategies employ complex mathematical models to scrutinise numerous variables, often incorporating elements from both FA and TA. Moreover, advancements in AI algorithmic trading have enabled the creation of self-learning models that adapt to market conditions, further optimising trade execution and risk management. These algorithmic solutions offer a level of efficiency and precision that is difficult to achieve manually. The Bottom Line In summary, mastering multiple forms of analysis offers traders a holistic approach to navigating financial markets. No matter what trading approach you follow, be it scalping, swing trading, or trend following, a hybrid strategy is a worthy consideration. To take the first step in implementing these comprehensive trading methods, consider opening an FXOpen account to gain access to a wealth of resources and tools. Happy trading! *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Stock Market Logic Series #10Do you think the above is a coincidence? There are no coincidences in life - only cause and effect. You are where you are because of a cause that is bound to physical and natural laws. The same pressure of physics that works on the airplane wing, or the balloon that wants to push its way up when pressed into water (pool), also works in the stock market. You just have to KNOW how to SEE it. follow my explanation. If you follow the price action, you can see clearly where the high-pressure volume comes in, you can't miss it. It is obviously seen. Then you need to wait for the correction, and you want to see that the correction is demonstrating a low-volume pressure behavior. When you see this low volume pressure behavior, the stock has DRIED UP. This DRYING-UP effect is a key indicator of a probable future LIFT and stock movement. You want to ask yourself the question: Why the stock is not falling down anymore? The question of "WHY" is searching for the cause BEHIND the stock movement. The stock movement is only the effect! In previous posts, I explained the other LOGIC behind this pattern, and explained why the price should not fall down and with a high probability of going up. If you read any of the books of Jesse Livermore, he clearly states that you need to "KNOW" that the stock will move your way, first let the market "SHOW YOU" exactly what will happen, and only then you put in a trade. The KEY CONCEPT in this idea is the DRYING UP OF VOLUME. When you understand the WHY behind the stock movement, buying and selling are emotionless. The focus should be only a trading setups that you "KNOW" it is highly probable to move in your expected trade direction. You "KNOW" because you have stock market LOGIC to back it up. If you want a specific post about Jesse Livermore's trading rules, let me know in the comments. It is always important to make sure that you have the correct perspective on the stock market, otherwise, you get confused. There is only at every given time only ONE side to the market as Jesse Livermore said, "The RIGHT SIDE". This goes back to my idea, that at every given time the puppet master ONLY buys or sells but NOT BOTH.
NASDAQ:POETEducation
by ZoharCho
Unlock Winning Strategies: Spot High-Probability Trades!Chart Analysis: XAU/USD (Gold Spot vs. USD) Based on the two charts you have provided, here is a detailed technical analysis of XAU/USD using price action and chart pattern observations: 1. Weekly Flag Trendline (Higher Time Frame Context) The upper and lower yellow trendlines represent a possible flag pattern on the weekly chart. This suggests a consolidation phase after a strong impulsive move. A flag pattern typically signals a continuation of the previous trend, which, if the context is bullish, indicates that after consolidation, there may be a continuation to the upside. On both charts, we can observe that price action is contained within this broader structure, indicating that price is in a correction phase rather than an impulsive phase. 2. Key Horizontal Levels 2,532.144 and 2,506.245: These levels act as strong resistance zones. The price has struggled to break above these levels multiple times, indicating significant selling pressure or profit-taking at these points. 2,471.313: This is a key support level. The price has reacted to this level before and, most recently, has bounced back after testing this support zone. This suggests that buyers are willing to step in at this level, providing a floor for the price. 3. Descending Channel and Price Action Patterns Descending Triangle/Channel Pattern: On the 15-minute chart, the price seems to be forming a descending triangle pattern (lower highs and a flat support at 2,471.313). This pattern is typically bearish, suggesting a potential breakdown if the support does not hold. Potential Reversal Patterns: After testing the lower trendline of the weekly flag pattern and finding support at the 2,471.313 level, there was a notable bullish reaction. This can imply a short-term reversal, especially if confirmed by a break above the minor resistance level of 2,494.370. 4. Consolidation Zone and Lower Time Frame Patterns The 15-minute chart shows a clear consolidation pattern after the sharp decline, with price action currently moving sideways between 2,494 and 2,506. A break above this consolidation range could signal a short-term bullish continuation towards the upper resistance levels, while a break below would imply a continuation of the bearish trend observed previously. 5. Breakout and Pullback Zones The yellow dotted lines on the 15-minute chart indicate key areas where the price broke out from consolidation phases. These areas are crucial for identifying potential entry points in a trending market. If the price retests these zones and finds resistance or support, they could act as triggers for either continuation or reversal trades. Trading Strategy Considerations Bullish Bias: Traders with a bullish bias might consider waiting for a breakout above the 2,506.245 resistance, looking for a confirmation with a pullback to this level as support. The target could be the upper boundary of the flag around 2,532.144 or higher, depending on momentum and broader market conditions. Bearish Bias: A trader with a bearish outlook might wait for the price to break below the 2,471.313 support level, looking for short positions targeting lower levels aligned with the descending channel's trajectory. Range Trading: Given the current consolidation between 2,494.370 and 2,506.245, range traders could look for entries at the edges of this range with tight stops and defined profit targets within the range. Conclusion Given the price action analysis and current chart patterns, the XAU/USD market appears to be in a consolidation phase within a broader flag pattern. This suggests that while the immediate outlook may be neutral to bearish, there is potential for a bullish breakout if key resistance levels are breached. Traders should watch for confirmed breakouts or breakdowns from these levels to guide their trading decisions, keeping in mind the broader market trend and any fundamental drivers influencing gold prices.
OANDA:XAUUSDEducation
by Adlercon333