Understanding Buying Climax, Stop, and Spring in VSAMastering Institutional Trading: Understanding Buying Climax, Stop, and Spring in Volume Spread Analysis (VSA)
Observation – Understanding Buying Climax, Stop, and Spring in Market Structure
A buying climax (BC) occurs when price surges sharply alongside high trading volume, signaling strong buying activity. However, this aggressive move often exhausts demand, leading to a stop, where price movement either pauses or begins to reverse. At this point, the market assesses whether buyers can sustain the uptrend or if selling pressure will take over.
In Volume Spread Analysis (VSA), a classic sequence is:
1. Buying Climax (BC): A sharp move up with high volume.
2. Stop Bar: Price consolidation or minor pullback after the climax.
3. Spring Bar: A downward shakeout followed by a reversal, indicating the presence of renewed buying interest.
A spring bar after a stop is a bullish signal, suggesting that previous selling pressure has been absorbed and institutions may be accumulating positions. If confirmed by a strong up bar with high volume, this signals a potential breakout, as it demonstrates that buyers are stepping back into the market.
The strength of the bar following the spring is crucial. A wide-range bullish candle with rising volume confirms that buying pressure is resuming, increasing the probability of an uptrend continuation. However, weak volume or failure to clear key resistance levels can indicate a fakeout, leading to further downside.
🔥 XAUMO Institutional Analysis – Gold (XAU/USD) Tokyo Session (Feb 18, 2025)
Market Context – Tokyo Session vs. Prior Market Structure
📍 Current Price: $2,902.98
📍 Key Institutional Levels from Yesterday:
• Resistance Rejection: $2,906.30 (VSA Liquidity High)
• Support Zone: $2,891.67 - $2,888.11 (Institutional Demand Area)
• XAUMO 2RC/Black Swan Stop Zones: $2,892.92 (Key Bullish Trigger or Stop Hunt Zone)
Tokyo Session Key Observations
✅ Buying Climax (BC) → Strong price rally with high volume.
✅ Stop Bar Formation → Market paused following the aggressive buying.
✅ Spring Bar Emergence → Potential bullish reversal structure forming.
✅ VSA Condition: Neutral → The market is in transition; no clear trend yet.
✅ Volume Change: -10.7% (Slight decline, indicating caution among buyers).
✅ Spread Change: +23.27% (Wide price movements suggest liquidity testing by institutions).
📊 XAUMO Institutional Breakdown – Understanding Buying Climax & Spring
1️⃣ Buying Climax (BC) – Institutional Aggression & Liquidity Test
🔹 Yesterday, price reached resistance at $2,906.30 and pulled back.
🔹 A sharp rally (BC) on high volume suggested aggressive buying by institutions.
🔹 Liquidity was likely absorbed in the $2,892.92 - $2,891.67 range before the price pushed back up.
📌 XAUMO Key Takeaways:
• A buying climax signals strong demand, but the pause suggests Smart Money is evaluating the next move.
• The next confirmation move is crucial—continuation or reversal depends on volume and structure.
2️⃣ Stop Bar – Institutional Liquidity Testing
🔹 After the BC, price stalled and formed a stop bar (consolidation).
🔹 This stop represents either accumulation (buying) or distribution (selling).
📌 XAUMO Key Takeaways:
• Break below $2,892.92 → Indicates deeper liquidity absorption; potential downside continuation.
• Holding above $2,891.67 → Suggests institutions are accumulating for a bullish breakout.
3️⃣ Spring Bar – The Institutional Shakeout Before a Move?
🔹 Price dipped towards $2,891.67 before rebounding—forming a spring bar.
🔹 This can be a bullish signal, but confirmation is needed.
📌 XAUMO Key Takeaways:
• If the next candle is a strong up bar with increasing volume → Confirms bullish continuation.
• If the price struggles above $2,905+ or volume remains weak → Expect a fakeout and potential dump.
🚀 XAUMO Institutional Trade Plan – Tokyo Session Execution
📈 Scenario 1: Bullish Breakout (Spring Confirmation & Volume Increases)
💰 Buy XAU/USD @ $2,903.50 - $2,905
📍 Stop Loss: $2,892.92 (Institutional Stop Zone)
🎯 Target Levels:
1️⃣ $2,910
2️⃣ $2,916
3️⃣ $2,923
✅ Probability: 75%
📌 Why?
• The spring bar bounced from liquidity → Possible upside confirmation.
• If the next bar shows strength, buyers are stepping in → Expect breakout above $2,906.
📉 Scenario 2: Bearish Rejection (Failure at $2,905 - $2,906 Again)
💰 Sell XAU/USD @ $2,905
📍 Stop Loss: $2,910
🎯 Target Levels:
1️⃣ $2,895
2️⃣ $2,892
3️⃣ $2,888
✅ Probability: 70%
📌 Why?
• If price rejects resistance at $2,906.30, Smart Money is distributing positions.
• Volume drop (-10.7%) suggests buyers aren’t fully committed.
• Break below $2,892.92 could trigger more sell pressure towards $2,888.
📢 XAUMO Execution Strategy – Final Institutional Outlook
✅ Next hourly bar confirmation is critical → The spring must be followed by a strong up bar for a bullish breakout.
✅ If price holds $2,892 - $2,891.67, upside potential remains valid.
✅ If price fails at $2,906 and volume weakens, expect another rejection and potential downside move.
🔥 Smart Money moves strategically—wait for confirmation before entering! 🚀
📖 XAUMO Institutional Strategy – Simplified for Beginners
1️⃣ Buying Climax (BC): The price surges fast, attracting late buyers, but Smart Money is already planning their next move.
2️⃣ Stop Bar: The price pauses or reverses. This is where institutions test liquidity to see if there’s enough demand for a move higher.
3️⃣ Spring Bar: A small drop that shakes out weak traders before a possible reversal. If confirmed, it means Smart Money is accumulating.
🔹 Next Step?
• If buyers come back strong, price breaks higher (bullish).
• If volume remains weak, Smart Money sells into the rally, and price drops again (bearish).
💡 Tip: Don’t rush in! Institutions don’t reveal their moves immediately—wait for confirmation before entering a trade. 🚀
Community ideas
NVDA: FREMA Linear Extensions - Horizontal VS DirectionalFREMA bands offer a dynamic edge over traditional ATR-based volatility bands by adapting to real buying and selling pressure (bullish and bearish part of candles) rather than just price movement. Unlike ATR bands, which expand symmetrically based on historical volatility, FREMA bands widen asymmetrically — expanding more on the upside during strong buying pressure and on the downside when selling dominates. This makes them highly effective for identifying momentum early, spotting true breakouts, and distinguishing strong trends from choppy markets. By responding directly to market psychology, they provide superior trade entries and exits, minimizing noise in ranging conditions while highlighting areas of genuine demand and supply shifts. For traders seeking a more responsive, trend-sensitive tool, FREMA bands deliver a clearer picture of market dynamics compared to conventional volatility indicators.
RESEARCH
Testing how price behaves within 2 types of linear extensions:
Horizontal
While giving an impression of being static, they're actually based on FREMA which is dynamic.
Use Horizontal Levels when expecting price to respect historical support/resistance, especially in sideways or mean-reverting markets.
Directional
Gives an immediate clue of being adaptable to the general angle of trend.
Use Linear Extensions when trading with momentum or trend continuation, as they adapt to market directionality.
Will price respect the static balance of past support and resistance, or will momentum dictate its own path along the trajectory of directional expansion? By tracking price interactions with both projections, we’ll uncover which model best maps the market’s intentions, offering valuable insights for future setups.
Stay tuned as we register these behaviors in real-time because once the market chooses its guide, the next move could be crystal clear.
"Gann’s Secrets: Time Cycles, Square of 9 & Market Reversals"Gann’s Trading Secrets | Gann Time Cycles, Gann Square of 9, and Predicting Market Reversals
📌 Topics Covered in This Video:
- The Power of Gann 90 in Market Cycles
- Gann Time Cycles & Gann Market Timing
- Gann Fibonacci levels & Gann Price Levels
- Gann Fan & The Billion-Dollar Trade
- Gann Square of 9 & Price Movements
- The 90-Year Gann Market Cycle & Financial Crises
- How to Use Gann’s Methods in Modern Trading
📌 Why You Should Watch This Video:
- Learn how to forecast market tops and bottoms using W.D. Gann’s techniques.
- Understand how Gann time cycles and Gann price action align in market movements.
- See real-world examples of how Gann’s methods predicted historical market crashes and reversals.
- Discover how major traders, including George Soros, unknowingly used Gann's principles to execute billion-dollar trades.
📌 Timestamps: Gann’s Trading Secrets | Gann Time Cycles, Square of 9, and Predicting Market Reversals
00:00 ▶️ Introduction
00:43 ▶️ W.D.Gann
01:35 ▶️ His Contribution to Technical Analysis
02:19 ▶️ Core Principals
04:13 ▶️ Price and Market Cycles
04:52 ▶️ What is Swing Chart?
06:32 ▶️ Gann Square of 9
07:12 ▶️ Gann's Relentless Study of Markets
07:37 ▶️ The Role of Astrology in Market Cycle
08:13 ▶️ Key Natural Market Turning Points
09:12 ▶️ Gann's 50% Rule
09:58 ▶️ The Three Key factors in Gann Trading
10:13 ▶️ The Price
14:07 ▶️ Gann Fan
14:43 ▶️ The Core Concept of Time-Price Balance
19:02 ▶️ The Role of Geometry in Gann's Work
19:41 ▶️ The Power of the Number 3
24:37 ▶️ The 90-Time Cycle in the Market
27:40 ▶️ Famous Trader George Soros
29:52 ▶️ Historical Economic Depression
30:35 ▶️ 2019 as a Key Time Cycle
31:10 ▶️ Economic Conditions
Chart Patterns That Keep Showing Up (Are Traders Predictable?)In the grand theater of financial markets, traders often fancy themselves as rational actors, making decisions based on cold, hard data. Yet, time and again, their collective behavior etches familiar patterns onto price charts, as if choreographed by an unseen hand (the Invisible Hand?)
All across the world economy , markets trade in patterns. The trick is to spot those patterns before they unfold.
These recurring formations, known as chart patterns, are a testament to the predictability of human psychology in trading. Let's rediscover some of these enduring patterns, exploring why they persist and how you can leverage them.
🚿 The Head and Shoulders: More Than a Shampoo Brand
Imagine a market trend as a partygoer who's had one too many. Initially, they're lively (the left shoulder), then they reach peak status of euphoria (the head), but eventually, they slump with one last “let’s go party people” (the right shoulder). This sequence forms the Head and Shoulders pattern, signaling a trend reversal from bullish to bearish.
Traders spot this pattern by identifying three peaks: a central, higher peak flanked by two lower, similar-sized peaks on each side. The neckline, drawn by connecting the lows between these peaks, becomes the critical support level. A break below this line suggests the party's over, and it's time to exit or short the trading instrument.
Conversely, the Inverse Head and Shoulders indicates a reversal from bearish to bullish, resembling a person doing a headstand—a strong sign the market's ready to flip.
Ready to hunt down the charts for some Head and Shoulders? Try out the Head and Shoulders drawing tool .
⛰️ Double Tops and Bottoms: Déjà Vu in Trading
Ever experience déjà vu? The market does too, in the form of Double Tops and Bottoms. A Double Top resembles the letter "M," where the price hits a high, retreats, and then tests that high again before declining. It's the market's way of saying, "I've been here before, and I'm not going higher."
The Double Bottom, shaped like a "W," occurs when the price drops to a low, rebounds, and then retests that low before rising. It's akin to the market finding a sturdy trampoline at support levels, ready to bounce back.
These patterns reflect traders' reluctance to push prices beyond established highs or lows, leading to reversals.
⚠️ Triangles: The Market's Waiting Game
When traders are indecisive, prices often consolidate, forming Triangle patterns. These come in three flavors:
Ascending Triangle : Characterized by a flat upper resistance line and a rising lower support line. Buyers are gaining strength, repeatedly pushing prices up to a resistance level. A breakout above this resistance suggests bullish momentum.
Descending Triangle : Features a flat lower support line and a descending upper resistance line. Sellers are in control, and a break below support signals bearish continuation.
Symmetrical Triangle : Both support and resistance lines converge, indicating a standoff between buyers and sellers. The eventual breakout can go either way, and traders watch closely for directional cues.
Triangles epitomize the market's pause before a storm, as participants gather conviction for the next move.
Feel like looking for some triangles on charts? Jump straight to our easy-to-use Triangle Pattern drawing tool .
🏁 Flags and Pennants: The Market Takes a Breather
After a strong price movement, the market often needs a breather, leading to Flags and Pennants. These are short-term continuation patterns that indicate a brief consolidation before the trend resumes.
Flag : Resembles a parallelogram sloping against the prevailing trend. It's like the market catching its breath before sprinting again.
Pennant : Looks like a small symmetrical triangle that forms after a sharp move. Think of it as the market pitching a tent before continuing its journey.
Recognizing these patterns helps traders position themselves for the next leg of the trend.
🧠 The Psychology Behind Pattern Persistence
Why do these patterns keep appearing? The answer lies in human psychology. Traders, despite access to vast information, are influenced by emotions like fear and greed. This collective sentiment manifests in predictable ways, creating patterns on charts.
For instance, the Head and Shoulders pattern emerges because traders, after pushing prices to a peak, become cautious. Early sellers take profits, causing a dip. A second rally (the head) attracts more participants, but if it fails to sustain, confidence wanes, leading to a sell-off. The final attempt (right shoulder) lacks conviction, and once support breaks, the downtrend ensues.
Understanding the emotional drivers behind these patterns allows traders to anticipate moves and strategize accordingly.
🎯 Using Patterns to Your Advantage
While recognizing patterns is valuable, it's crucial to approach them with a discerning eye:
Confirmation is Key : Don't act on a pattern until it's confirmed. For example, in a Head and Shoulders, wait for a break below the neckline before taking a position.
Volume Matters : Volume often validates a pattern. A genuine breakout is usually accompanied by increased trading volume, indicating strong participation.
Contextual Awareness : Consider the broader market context. Patterns can yield false signals in volatile or news-driven environments.
Risk Management : Always set stop-loss orders to protect against unexpected moves. Patterns suggest probabilities, not certainties.
🧬 The Evolution of Patterns in Modern Markets
In today's algorithm-driven trading landscape, one might wonder if traditional chart patterns still hold relevance. Interestingly, even sophisticated trading algorithms (those used by hedge funds and investment managers) are programmed based on historical patterns and human behavior, perpetuating the cycle.
Moreover, as long as markets are driven by human participants, emotions will influence decisions, and patterns will emerge. The tools may evolve, but the underlying psychology remains constant.
🤗 Conclusion: Embrace the Predictability
In the volatile world of trading, chart patterns serve as a bridge between market psychology and price action. They offer insights into collective behavior, providing traders with a framework to anticipate movements.
By studying these recurring formations, traders can align their strategies with market sentiment, turning the predictability of human nature into a trading edge.
What’s your go-to technical analysis pattern? Are you and H&S trader or maybe you prefer to trade double tops? Share your approach in the comments!
Leap Ahead with a Dual Breakout Setup on ES and MESThe Leap Trading Competition: A Chance to Trade S&P 500 Futures
TradingView’s "The Leap" Trading Competition gives traders the opportunity to test their futures trading strategies in a competitive environment. Participants have access to select CME Group futures contracts, including E-mini S&P 500 Futures (ES) and Micro E-mini S&P 500 Futures (MES).
This article presents a dual breakout trade setup, analyzing both bullish and bearish scenarios based on key Fibonacci levels and low volatility price ranges. The goal is to trade the breakout of a well-defined range and target either a Fibonacci extension to the upside or a retracement level to the downside.
Understanding Breakouts and Fibonacci Levels
A breakout occurs when price moves beyond a defined support or resistance level, often leading to a strong trend continuation. In this case, the trading range between 6146.75 and 6121.25 is the key level to watch. A breakout above this range suggests bullish momentum, while a breakout below signals bearish pressure.
Fibonacci retracement levels are used to identify potential support or resistance zones based on past price movements. The 50% retracement level at 5985.75 aligns with a UFO support, making it a key downside target if price breaks lower.
Fibonacci extension levels project potential price targets beyond the most recent high or low. The 100% Fibonacci extension at 6288.75 serves as the projected upside target if price breaks higher.
The Dual Breakout Trade Setup
In a bullish scenario, a breakout above 6146.75 confirms entry to the upside. The target for this trade is the 100% Fibonacci extension at 6288.75. A stop loss is placed below the breakout level at a distance that ensures a minimum 3:1 reward-to-risk ratio.
In a bearish scenario, a breakdown below 6121.25 confirms entry to the downside. The target is the 50% Fibonacci retracement at 5985.75, which aligns with a UFO support zone. A stop loss is placed above the breakdown level, ensuring a minimum 3:1 reward-to-risk ratio.
Risk management considerations include adjusting stop losses based on a trader’s preferred risk-reward ratio. Scaling out at intermediate levels can help manage volatility and secure partial profits.
Contract Specifications and Margin Requirements
E-mini S&P 500 Futures (ES) details:
Full contract specs: ES Contract Specifications – CME Group
Contract size: $50 x S&P 500 Index
Tick size: 0.25 index points ($12.50 per tick)
Margin requirements depend on broker conditions and market volatility – Currently ≈$15,000 per contract.
Micro E-mini S&P 500 Futures (MES) details:
Full contract specs: MES Contract Specifications – CME Group
Contract size: $5 x S&P 500 Index (1/10th of ES)
Tick size: 0.25 index points ($1.25 per tick)
Lower margin requirements make it more accessible for smaller accounts – Currently ≈$1,500 per contract.
Leverage in ES and MES magnifies both potential gains and losses. Traders should consider margin requirements and market conditions when determining position sizes.
Execution and Market Conditions
Before executing a trade, a typical breakout trader would watch price confirm a breakout by sustaining above or below the key levels. Additional confirmation from volume trends and momentum indicators can improve trade accuracy.
If price does not break out, the setup remains invalid. If a false breakout occurs, traders may need to reassess conditions before re-entering.
Conclusion
A dual breakout setup provides both bullish and bearish opportunities depending on price movement. Fibonacci extensions provide upside targets, while retracement levels align with strong support zones for downside moves.
For participants in The Leap Trading Competition, this setup highlights the importance of disciplined execution, confirmation, and structured risk management.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
Breakdown Of My Personal Strategy On Dow Jones TutorialI will be giving a breakdown on my own personal strategy on how I trade the Dow Jones Futures. I am writing this post for two reasons. First and foremost, to help people. Secondly, to help myself in better understanding.
The way that I trade is using support and resistance, only I don't use the traditional sense of support and resistance that is taught. I use price levels that all traders have. The four price points of a candle stick. I also use major round numbers of 1000's and 500's.
The Open
The Low
The High
The Close
I start by looking at the monthly. When a new month opens, I.E. February 1st for example, I mark the opening price in Orange.
I use the 2 hour chart to look for buying and selling areas, using key price levels. I look for these key price areas and see how price behaves once they get there.
Low of Month trades
Low of the Week trades
Low of the Day trades
High of Month trades
High of the Week trades
High of the Day trades
Example 1:
The month of February opens at 44,444. I mark this with a horizontal trendline in Orange Level 4. I see price gapping down right into 44,000. A major round number of 1000.
I then drill down to my entry timeframe of the 15 minute to find the buy or sell trigger entry. In this case, I saw the creeping push down into the 1000 level followed by a bull 180 bar. I entered in on the close of that bar. I used a 75 tick stop per ATR and a 200 tick target.
This is an actual trade I took. I recently changed my target strategy. I will explain in a bit.
I use the same concept for the following three timeframes.
The Monthly candle
The Weekly candle
The Daily candle
The Monthly candle:
The Weekly candle:
The Daily candle:
Another example of a trade I took
This creeping layering into a level is one of my favorite ways to get into a trade.
What I am doing now is I will set my stop loss of 75 ticks and I will have no profit target. I will hold the trade until the end of the trading day and close it out before the market closes.
On this particular trade, I closed it out at 44,820 for a 343 tick profit.
The weekly template structure:
Some obvious points but worth repeating. Each Weekly candle has an opening price. Within each weekly candle, there are 5 trading days. Monday-Friday. There is a high and low of the week.
Within each trading day, there is also an open, high and a low. I find that when day trading, only to focus on the specific day itself and to not really worry about "multiple time frame analysis"
All you need is the major key levels I laid out up above.
Here is another trade that I took. I was looking for the Monthly open and 44,500 to be used as resistance for a continuation short trade back through the weekly open.
Of course you can see, I lost on this trade. No strategy is ever guaranteed, and I do routinely take losses. My job as a trader is to preserve my capital and to stay alive.
My money management strategy:
One trade per trading day MAX
If lose, DONE
Close out near end of day if in profits, DONE
75 tick stoploss on ALL day trades. DO NOT TOUCH. Do not move up or down. Sometimes to Break-even but only if trade is seeming to fail (more of an intuition thing)
Risk 0.75%-1.5% per trade
Only make slight adjustments to strategy after every 20-trade sample size.
By limiting my losses to only one trade per day, I can easily recover from a losing day with any winning day. Somedays I will either not see the market well, enter at a poor location or just overall, not be at my best. My statistics show that RARELY do I enter another trade after a losing trade, does that one succeed. This tells me that I am not seeing something that particular day. I will wrap it up and try again another day. Revenge trading does no good but to hurt yourself. I admit I am wrong on the day and come back again.
By limiting myself to one trade per day, I am also cutting down on slippage and commissions. Because of slippage and commissions, trading is NOT a zero-sum game, but in fact a NEGATIVE sum game. Your winners are smaller than they ought to be, and your losses are bigger than ought.
I know that I can have three losing days in a row and be right back to normal after one or two winning days. Therefore, who cares if I take a loss. I need to get through the losing trades to find the big, winning trades.
Understanding Buy The Dip In TradingBuying the dip is a trading strategy where you take advantage of temporary price drops in an overall uptrend. The goal is simple: enter the market at a lower price before it resumes its upward move. It sounds easy, but knowing when and how to do it makes all the difference. In this guide, we’ll explore key setups, ideal market conditions, and smart risk management techniques to help you trade dips like a pro. 🚀
1. Understanding Market Structure 🏗️
Before jumping into a trade, it’s crucial to understand how price moves. A strong uptrend is characterized by higher highs and higher lows—this is where buying dips can be very profitable. But beware: not every drop is a buying opportunity. Some dips are part of a pullback, a temporary retracement before the trend resumes, while others signal a complete reversal—the last thing you want to buy into.
Key levels to watch include support zones, Fibonacci retracement levels, and high-volume areas. These zones act as potential turning points where the price is likely to bounce.
2. Proven Setups for Buying the Dip 🎯
🔢 Fibonacci Retracement Support
When the price pulls back within a strong trend, it often lands on key Fibonacci levels like 38.2%, 50%, or 61.8%. These act as natural support points where buyers step in. If a strong bullish candle appears at one of these levels, it can signal a solid dip-buying opportunity.
Combine this with an oversold RSI and rising volume, and you have a strong case for entry.
🎭 Liquidity Grab (Stop Hunt)
Markets love to shake out weak hands. Sometimes, the price dips below a previous low, triggering stop-loss orders before reversing sharply. This is called a liquidity grab—smart money accumulates positions while retail traders panic.
If the price quickly reclaims the level it just broke, it’s a strong buy-the-dip signal. Look for big buy orders, a sharp recovery, and bullish candlesticks to confirm entry.
📊 Anchored VWAP Test
Institutions often base their trades around VWAP (Volume Weighted Average Price), especially when anchored from a significant swing low. When the price revisits this VWAP in a strong uptrend, it’s a potential dip-buying zone.
Watch for bounces off VWAP, rising volume, and confluence with other support levels for confirmation.
🔥 Point of Control (POC) Revisit
Markets move towards areas of high liquidity. If the price revisits the Point of Control (POC)—the price level where most volume is traded in a range—it often serves as strong support.
When price pulls back into the POC and finds buying interest, it’s a great spot to enter. Look for strong reactions, failed attempts to move lower, and confluence with Fibonacci levels.
📏 Previous Range Support
A breakout from a trading range is significant, but the price often returns to retest the range high as new support before continuing higher. If this happens on low selling pressure and aligns with moving averages or VWAP, it can be a golden buy-the-dip opportunity.
Look for bullish reactions, buying volume, and strong candles off the level.
3. When Buying the Dip Works Best ✅
Not all dips are worth buying. The best setups occur when:
The market is in a strong uptrend, making higher highs consistently. 📈
Volume is high, showing that buyers are stepping in. 🔥
Macro conditions support upside movement, like favorable economic news. 📰
4. Risk Management: Protecting Your Capital 🛡️
Even the best traders take losses. What matters is how you manage risk:
Set a Stop Loss 🎯: Always place a stop below key support levels.
Position Sizing 📊: Never risk more than a small portion of your capital per trade.
Have an Exit Plan 🚪: Know where you’ll take profits, whether it's at a resistance level or a trailing stop.
Scale In and Out 🎢: Enter gradually instead of all at once, and take profits along the way to lock in gains.
Key takeaways 🎤
Buying the dip can be a powerful strategy—when done correctly. The key is patience: wait for strong trends, allow price to reach significant levels, and confirm with volume and momentum. Combine technical analysis with solid risk management, and you’ll improve your chances of success in the markets. Happy trading! 🚀
TradingView Telegram Webhook Alert [TradingFinder] No Extra Code🔷 Introduction
In this tutorial, you will learn how to send TradingView alerts automatically and instantly to Telegram without the need for coding. This system is based on the TradingView webhook, which enables receiving trading signals in Telegram channels.
Using this method, you can receive buy and sell signals for Forex, Crypto, and Stocks without any delay. The Telegram alert bot supports real-time TradingView alerts and is compatible with all technical indicators, price-based signals, and Pine Script alerts.
This method allows you to establish a direct and fast connection between TradingView and Telegram without requiring any programming knowledge. Additionally, this tool is free and does not require registration.
In this tutorial, you will first create a Telegram bot to receive trading alerts, then connect the TradingView webhook to Telegram, and finally, learn how to manage trading signals automatically and without delay.
🔷 HOW TO SET UP TRADINGVIEW ALERT WEBHOOK FOR TELEGRAM WITHOUT CODING?
Now, let’s go through the step-by-step process of setting up TradingView alerts to be sent instantly to Telegram using a webhook, without any coding required.
🔶 Step 1: Find BotFather on Telegram
To create a new bot for receiving TradingView alerts, you first need to access BotFather on Telegram.
Open the Telegram app or go to Telegram Web.
In the search bar, type @ BotFather and select the verified BotFather account (as shown in the image).
Click on BotFather to start creating your bot.
This bot will help you generate an API token that is essential for setting up the webhook connection between TradingView and Telegram.
🔶 Step 2: Create a New Telegram Bot Using BotFather
Once you have opened BotFather on Telegram, follow these steps to create your bot :
Click the START button to activate BotFather.
Type /newbot and press Enter to create a new bot.
BotFather will ask you to choose a name for your bot. Enter a unique name (e.g.,Alert TV to Telegram).
Next, you need to choose a username for your bot. It must end with bot (e.g., Alert_TV_bot).
Once the bot is successfully created, BotFather will provide you with a unique API token. This token is essential for connecting your bot to TradingView Webhook. Keep it secure and do not share it with anyone.
🔶 Step 3: Add the Bot as an Admin to Your Telegram Channel
Now that you have created your bot, you need to add it as an admin to your Telegram channel where you want to receive TradingView alerts.
Follow these steps :
Search for your bot in Telegram by typing its username (e.g., @Alert_TV_bot) in the search bar.
Open your bot's profile and click "Start" to activate it.
Create a Telegram channel (or use an existing one) where you want the alerts to be sent.
Open the channel settings and go to Administrators > Add Admin.
Search for your bot using its username and select it.
Grant the necessary permissions :
Enable "Manage Messages" so the bot can send alerts.
(Optional) Enable "Change Channel Info" if you want the bot to update channel details automatically.
Click Save to confirm the changes.
🔶 Step 4: Generate the Webhook URL for TradingView (Public & Private Channels)
To send TradingView alerts to Telegram, you need to generate a Webhook URL. The format of this URL depends on whether you are sending alerts to a public channel or a private channel. Additionally, the message text must be URL Encoded to ensure it is processed correctly.
🔹 Webhook URL for Public Telegram Channels
If your Telegram channel is public, use the following format for your webhook URL :
api.telegram.org
Replace the placeholders with :
→ The API token from BotFather.
→ The username of your public Telegram channel (without the "@" symbol).
→ The URL Encoded alert message.
📌 Example :
If your bot token is 123456789:ABCDefGHIjklmnopQRSTuvwxYZ and your public channel username is TradingAlertsChannel, the webhook URL will be :
api.telegram.org
🔹 Webhook URL for Private Telegram Channels
If your Telegram channel is private, you cannot use a username (@channel_name). Instead, you must use the chat ID.
Follow these steps :
🔸 Step 1: Get the Chat ID of the Private Channel
There are two ways to get your private channel's chat_id :
Method 1: Using @ userinfobot
Forward any message from the private channel to @ userinfobot in Telegram.
The bot will reply with details, including the chat_id (which is a negative number, e.g., -1001234567890).
Method 2: Using Telegram API (getUpdates)
Open a browser and enter the following URL :
api.telegram.org
Replace with your bot’s API token from BotFather.
Press Enter, and you will see a response containing messages, including the chat_id of your private channel.
The chat_id will look something like -1009876543210.
🔸 Step 2: Use the Webhook URL Format for Private Channels
Once you have the chat_id, use the following webhook format :
api.telegram.org
Replace the placeholders with :
→ The API token from BotFather.
→ The numeric chat ID of your private channel (e.g., -1009876543210).
→ The URL Encoded alert message.
📌 Example :
If your bot token is 123456789:ABCDefGHIjklmnopQRSTuvwxYZ and your private channel ID is -1009876543210, the webhook URL will be :
api.telegram.org
🔶 Step 5: Configure Webhook in TradingView Alerts
Now that we have generated the Webhook URL, the next step is to configure TradingView alerts to send real-time notifications to Telegram.
Follow these steps to set up the webhook :
Open the TradingView Alert Settings
•Go to TradingView and open the chart for the asset you want to track (e.g., BTCUSD).
•Click on the Alert (⏰) button at the top of the screen.
•In the alert settings window, go to the "Notifications" tab.
Enable Webhook URL
•Check the box for "Webhook URL" to enable webhook notifications.
•Paste your Telegram Webhook URL into the box.
Example for a public channel :
api.telegram.org
Example for a private channel (with chat ID -1009876543210) :
api.telegram.org
Customize Your Alert Message
Make sure your alert message is URL Encoded (e.g., spaces should be %20).
Example message :
Hello, This is a test alert!
URL Encoded Format :
Hello%2C%20This%20is%20a%20test%20alert%21
Save the Alert
•Click "Save" to activate the TradingView alert.
•Now, whenever the alert condition is met, TradingView will send a message to Telegram via the webhook.
Is It Possible to Predict Market Direction with Certainty?Someone asked me about predicting market movements with certainty. In response to a question about detecting large orders and forecasting market direction, let’s explore how markets truly operate and how to grow as a trader.
The Nature of Market Movement
Markets move through collective behavior, not individual orders. Even when sentiment indicators show a near 50:50 split between short/long positions, markets can still trend strongly in one direction. Why? Because market movement depends on:
The aggressiveness of orders (market orders vs. limit orders)
Timing of trade execution
Position sizes and their distribution
Psychological factors affecting mass behavior
Example:
Imagine BITSTAMP:BTCUSD with apparently balanced sentiment. Yet, if long positions are primarily passive limit orders while shorts are aggressive market orders with tight stops, the price could trend down sharply despite the "balanced" ratio.
The Illusion of Certainty
There is no way to predict market direction with certainty. The market comprises millions of participants with:
Different analysis methods
Various timeframes (scalpers to long-term investors)
Diverse motivations (hedging, speculation, investment)
Unique reactions to the same news
Real-world Example:
During major news events like FOMC meetings, you'll often see prices swing violently in both directions. Why? Because even with the same information, traders interpret and react differently based on their:
Portfolio needs
Risk tolerance
Trading timeframe
Overall market view
Building Better Trading Habits
Instead of seeking certainty, focus on developing good trading habits:
1. Risk Management First
Use proper position sizing (never risk more than 1-2% per trade)
Set stops based on technical levels, not arbitrary numbers
Example: If trading support/resistance, place stops beyond the next significant level, not just at round numbers
2. Asymmetric Returns
Aim for trades where potential profit exceeds potential loss
Target 1:2 risk-reward at minimum
Example: If risking $100, your minimum target should be $200 profit
3. Consistency in Strategy
- Stick to your trading plan even when other strategies look attractive
- Document all trades and review regularly
- Example: Keep a trading journal with setup, entry, exit, and lessons learned
4. Building Good Habits
Start each day with market analysis
Review major news and potential impact
Set clear entry/exit rules before trading
Regular review of trading performance
Example Schedule:
- 8:00 AM: Market overview
- 8:30 AM: Review potential setups
- 9:00 AM: Check for news events
- 4:00 PM: End-of-day review
Common Pitfalls to Avoid
1. Strategy Hopping
Switching strategies frequently based on recent performance
Following multiple traders with different approaches
Solution: Commit to one approach for at least 3 months
2. Overtrading
Taking trades out of boredom or FOMO
Solution: Set daily/weekly trade limits
3. Revenge Trading
Trying to recover losses quickly
Solution: Take a break after losses, review what went wrong
Remember: The market doesn't care about what you want. It moves based on collective action, not individual desires. Focus on adapting to market conditions rather than trying to predict them.
Your success in trading isn't determined by how much you know, but by how well you apply what you know through consistent, disciplined habits.
Stepwise Distribution: How "Big Boys" Unload an Asset (Gold Ex.)In financial markets, price movements are not always the result of simple supply and demand dynamics. Large investors—hedge funds, market makers, and institutional traders—use advanced techniques to enter and exit positions without causing drastic market reactions. One such strategy is stepwise distribution, a method through which they gradually sell off assets while the price still appears to be rising.
What Is Stepwise Distribution?
Stepwise distribution is a process where large players liquidate their positions gradually, preventing panic or a sudden price drop. The goal is to attract retail buyers, maintaining the illusion of a bullish trend until all institutional positions are offloaded.
S tages of Stepwise Distribution
1. Markup Phase
- Institutions accumulate the asset at low prices.
- Retail traders are drawn in by the uptrend and start buying.
- The bullish trend is strong, supported by increasing volume.
2. Hidden Distribution
- The price continues rising, but large players begin selling in increments.
- Volume increases, yet price movements become smaller.
- Fake breakouts appear—price breaches a resistance level but quickly reverses.
3. The Final Trap (Bull Trap)
- One last price surge attracts even more retail buyers.
- Smart money finalizes unloading their positions.
- Retail traders get trapped in long positions, expecting the trend to continue.
4. Final Breakdown
- After institutions have fully exited, the price begins to fall.
- Liquidity dries up, leaving retail traders stuck in losing positions.
- The pattern confirms itself as lower highs and lower lows start forming.
________________________________________
Stepwise Distribution in Gold: A Recent Example
In recent days, Gold prices have shown an interesting example of stepwise distribution. While it does not meet every characteristic of a textbook distribution pattern, market dynamics suggest that large players are offloading their positions in a controlled manner.
1. Technical Structure and Market Perception Manipulation
During the last upward leg, support levels were strictly respected, creating the illusion of strong demand. At first glance, this seems like a bullish signal for retail traders. However, in reality:
• Big players temporarily halted selling to avoid triggering panic.
• They maintained the illusion of strong support to attract more buyers.
• Retail traders believed that “smart money” was buying, when in fact institutions were merely waiting for the right moment to finalize distribution.
2. Investor Psychology and How It’s Exploited
Human psychology plays a critical role in stepwise distribution. Here’s how different types of traders react:
• Retail FOMO traders (Fear of Missing Out) – Seeing Gold approach all-time highs, they aggressively enter long positions, ignoring subtle distribution signals.
• Pattern-based traders – Many traders use support levels as buying zones, unaware that these levels are being artificially maintained by institutional traders.
• “Buy the Dip” mentality – Each minor pullback is quickly bought up by retail traders, providing liquidity for large investors to sell more.
3. The Critical Moment: Support Break and Market Panic; Friday's drop
Eventually, after the distribution is complete, the “strong” support level suddenly breaks. What happens next?
• Retail traders’ stop-losses are triggered, accelerating the decline.
• A lack of real demand – All buyers have already been absorbed, leaving no liquidity to sustain the price.
• Widespread panic – Retail traders who bought during the final surge now start selling at a loss, reinforcing the downward move.
Conclusion:
Stepwise distribution is not just a technical pattern—it’s a psychological and strategic market operation. In the case of Gold, we observed a controlled distribution where smart money avoided causing panic until they had fully offloaded their positions.
If you learn to recognize these signals, you can avoid market traps and gain a better understanding of how large investors maximize their profits while retail traders are left with losing positions.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Can we enhance the most popular Indicator on TradingView?I describe my implementation of the TTM Squeeze indicator, first coded by Lazybear and that became the most popular indicator on TradingView.
There's gotta be a reason for that to be the most popular, right? I wanted to find out and make it much easier to navigate as well as adding to it with my own touch.
Hope you enjoy it.
How I am approching scaling my account to the next level💰 Introduction
I have been actively investing for over seven years. When I started in 2017, I had no idea what I was doing. My first trade was a short/mid-term win on an altcoin skyrocketing in a straight line—it felt unbelievable. But the truth was, I was completely clueless.
Still, I was hooked. I started reading everything I could and expanded my focus to stocks and Forex. Six months later, I had developed some ideas about Forex, though I was still lost when it came to stocks. I funded a Forex account with €8,000 to test my skills, using a simple 1:1 risk-to-reward 0.5% per trade system. A few months later, I was up about 15% - a solid start.
From there, my goal was clear: design a great strategy first, then scale it. But things didn’t go as planned.
I suffered a serious injury, which got progressively worse, making it impossible to hold a regular job. I spent everything I had on rent and medical bills. To make matters worse, I stubbornly clung to a terrible strategy for years - even after developing better ones. I ignored huge unrealized gains, constantly chasing the “holy grail” of investing. Ironically, today, I trade every single strategy (or a modified version to add to winners) I’ve ever designed since 2019 - except the one I stubbornly stuck with for years.
Through all this, I learned a crucial lesson:
💡 A strategy should work from day one. You backtest it to verify, then refine it, but you don’t trade it live until it’s ready.
Now, after years of experience, mistakes, and lessons learned, I have several proven strategies and a fresh perspective. The next step? Scaling up aggressively.
Of course, I can’t cover everything in one article, a full book wouldn’t even be enough. Some aspects of growing an account, like tax implications, aren’t discussed here.
But my goal is simple: to inspire investors to think creatively about scalability and strategy development. The process of building an investment strategy - including a scaling plan - is all about creativity.
💰 The Challenge of Scaling: Why Gains Lag Behind Losses
Your gains will always lag behind your losses - this is a fundamental reality in investing. If you scale too fast, your winners from months ago may not be enough to cover your new losses, even if you're performing well overall.
I am not talking about drawdowns, those makes things even worse. I am talking about how looking for asymmetric returns means the time it takes will be asymmetrical too. For mid-term strategies, traders typically risk 1 unit to gain 5, 10, or even 15. However, the time required for returns grows exponentially as reward targets increase. If you're aiming for 10x or more, your losing trades might last only 2–3 days, but your winners could take six months or longer to materialize.
I experienced this firsthand in 2024. I started the year strong, accelerating my risk after solid returns from trading the Yen. Then I hit the gas again, but things turned bad - primarily because I was experimenting with a new strategy alongside my proven ones. In November, I realized a 15x profit on gold, which could have significantly changed my situation. However, I had entered the position back in February, before I began scaling, so the gains didn’t have the impact I needed at the time.
💰 Scaling Only Works for the Few Who Are Ready
Most traders either stagnate or lose, and even the best often learn the hard way early on. You’ve probably heard the common statistic: only 10% of FX investors win, and only 10% of stock investors beat the market. But even within that elite group, only a third outperform significantly enough to consider trading as a full-time career rather than just a supplement for retirement.
From the data I've seen, only about 3% of investors should even consider aggressive scaling. Attempting to scale without a proven track record is a recipe for disaster. Even the most famous market wizards often had to learn the hard way early on.
A good analogy is chess - not everyone is a young prodigy, and even for those who are, it often takes 7–8 years to reach master level. The same applies to investing: skill and experience take time to develop, and rushing the process can lead to avoidable mistakes.
💰 No shortcut but there are ways to increase scalability
A path one might follow is the investment fund. However these are very restrictive, George Soros once said to make money you had to take risk. No matter how good you are you are still subject to the same laws and I know no one that has 100% win rate. If your max drawdown is 5% how much can you realistically risk per operation? Perhaps 0.25% So your 10X winner will be 2.5%. We know the returns, drawdowns and Sharpe ratios of the biggest (and supposedly best) funds, I never heard of a fund with a tiny max drawdown and huge returns except Medallion fund you got me.
The problem I personally have, or shall I say had, is that I can sometimes go 6-12 months without a winner, or with just 1-2. It is spread very non-homogeneously. In the last 3 months I have (finally!) designed a short term strategy that will smooth the curve, I risk 1 to make 5 and have opportunities in all market conditions. I was not even trying to, I just randomly felt creative and went "Eureka".
I am currently running my proven strategies on my main accounts, and the new one on a smaller account - of course I keep winning on these small amounts. This short term strategy might not be my best one, although it might be the second best, however it was exactly what I needed to help smooth the drawdowns and more boring market conditions.
💰 Balancing Creativity and Risk in Scaling Strategies
I believe designing a successful scaling strategy requires a combination of creativity and pessimism. From my experience, it's essential to explore different ways to scale while always keeping the worst-case scenario in mind.
To illustrate this, let’s consider an example - not necessarily the exact approach I will take, but a concept that reflects my thinking. Suppose I allocate €25,000 to a brokerage account and divide it into 25 "tokens" of €1,000 each. Every time the account grows, I would redistribute the balance into 25 equal parts, each representing 4% of the total.
This setup ensures that I always have capital available for new opportunities. Even if I lose 10 times in a row and have 5 tokens tied up in winning trades (or disappointing breakevens), I would still have 10 tokens left to reinvest. Based on my calculations, 25 is the minimum number required for this method to work efficiently. That said, 4% risk per trade is significantly higher than what I have ever risked, and I may adjust it downward.
💰 Risk Management and Personal Goals
If someone were able to triple a €25,000 account each year, they could theoretically reach €2 million in just four years. However, such exponential growth is rare and unsustainable over the long term. Jesse Livermore achieved extraordinary gains - but ultimately lost everything and took his own life. This is a stark reminder that extreme financial risk can have devastating consequences.
I would never attempt this kind of aggressive scaling with essential funds - certainly not with rent money, without a financial cushion, with large amounts, or without a clear Plan B.
My personal objectives:
If investing my own money: My goal is to build a €2M–€3M account while continuing my regular job - possibly reducing to part-time work.
If managing investor funds: I would aim to start with €10M AUM, with at least €500K of my own capital in the fund. My ultimate target is to grow AUM to €100M.
💰 The Crypto Factor : A Different Beast
The extreme volatility combined with long term aspect of crypto makes for a very different experience. In the past it has shown incredible returns, I know this first hand my brother started mining Ethereum I think in 2019 when the price was below $150 I guess and then he has been buying cryptos on the way up, in euros I might add, with the crypto/euro charts looking much better than the USD ones.
But there is no reason why it cannot all go to zero, or crash 95% and remain here for years. And even if the whole crypto market does not crash, several of them die each year. I am not a perma bear I do not wish my younger brother to lose everything, this is all he has, he got no diploma not interesting career.
For crypto to fit in a structured investment strategy I personally would only put small amounts. So it sort of follows the idea of a separate account with huge risk. An amount that one can afford to lose.
💰 Final words
I believe I have the experience, the rigor and the strategies to increase my risk and invest more aggressively. In a near future - maybe starting 2026 - I want to really grow my account.
My scaling will be gradual, I won't jump from an amount to 3 times that in 3 months, I will manage my risk strategically; And before even starting the battle I will have clearly defined objectives.
Harmonic Pattern Trading: Ultimate Guide for 2025Harmonic trading is a powerful price action-based strategy that uses Fibonacci ratios to identify high-probability reversal zones. These patterns fall under XABCD structure, meaning they have five key points (X, A, B, C, and D) and rely on Fibonacci retracements and extensions.
By mastering harmonic trading, you can identify trend reversals early and achieve higher win rates compared to traditional technical analysis methods.
🔹 Key Principles of Harmonic Trading
1️⃣ Structure of Harmonic Patterns (XABCD)
All harmonic patterns follow the same five-point structure:
X → A: The initial move.
A → B: The first retracement.
B → C: A counter move.
C → D: The final leg, forming the Potential Reversal Zone (PRZ).
2️⃣ Fibonacci Ratios in Harmonic Patterns
Harmonic trading is Fibonacci-driven, meaning each pattern is defined by specific retracement and extension levels:
Common Fibonacci Retracements: 38.2%, 50%, 61.8%, 78.6%, 88.6%
Common Fibonacci Extensions: 127.2%, 141.4%, 161.8%, 200%, 224%, 261.8%
3️⃣ Potential Reversal Zone (PRZ)
The D-point of the pattern is where price is expected to reverse.
This PRZ zone is validated by Fibonacci confluence, support/resistance, and other confirmation signals (RSI, MACD, divergence, etc.).
Entry: Around D-point reversal confirmation
Stop Loss: Beyond the PRZ invalidation zone
Take Profit: Based on Fibonacci extension levels (often 61.8%, 100%, or 161.8% retracements).
🔷 Primary Harmonic Patterns & Their Structure
1️⃣ Gartley Pattern 🦋
✅ Most popular & reliable harmonic pattern
✅ Predicts trend continuation or reversal
✅ Respects 61.8% Fibonacci retracement from XA
Gartley Pattern Structure:
AB = 61.8% retracement of XA
BC = 38.2% or 88.6% retracement of AB
CD = 78.6% retracement of XA
D-point PRZ → Strong reversal expected
🚀 Trading Tip: Look for confluence with trendlines, supply-demand zones, and RSI/MACD divergence.
2️⃣ Bat Pattern 🦇
✅ High-probability reversal setup
✅ Stronger deep retracement of XA compared to Gartley
✅ Ideal for trend continuation & reversal trades
Bat Pattern Structure:
AB = 38.2% or 50% retracement of XA
BC = 38.2% or 88.6% retracement of AB
CD = 88.6% retracement of XA
D-point PRZ → Expect strong reversal
🚀 Trading Tip: Bat patterns often provide low-risk entries with tight stop losses due to their deep XA retracement.
3️⃣ Butterfly Pattern 🦋
✅ Predicts deep trend reversals
✅ Used for aggressive counter-trend trades
Butterfly Pattern Structure:
AB = 78.6% retracement of XA
BC = 38.2% or 88.6% retracement of AB
CD = 127.2% or 161.8% extension of XA
D-point PRZ → Strong trend reversal expected
🚀 Trading Tip: Butterfly PRZ zones are more extended, so look for price exhaustion & divergence before entering.
4️⃣ Crab Pattern 🦀
✅ The most extended harmonic pattern
✅ Strong 161.8% XA extension creates powerful reversals
Crab Pattern Structure:
AB = 38.2% or 61.8% retracement of XA
BC = 38.2% or 88.6% retracement of AB
CD = 161.8% extension of XA
D-point PRZ → Extreme overextension, likely strong reversal
🚀 Trading Tip: Use confluence with key support/resistance levels & volume analysis to confirm reversals.
5️⃣ Deep Crab Pattern 🦀
✅ More reliable version of the Crab Pattern
✅ D-point extends further for deeper pullbacks
Deep Crab Pattern Structure:
AB = 38.2% or 61.8% retracement of XA
BC = 38.2% or 88.6% retracement of AB
CD = 224% - 261.8% extension of XA
D-point PRZ → Strong reversal expected
🚀 Trading Tip: Similar to the Crab, but requires stronger confirmation signals before entry.
6️⃣ Cypher Pattern 💠
✅ High accuracy harmonic pattern
✅ Faster entries compared to other patterns
Cypher Pattern Structure:
AB = 38.2% to 61.8% retracement of XA
BC = 127.2% to 141.4% extension of AB
CD = 78.6% retracement of XA
D-point PRZ → Price reversal likely
🚀 Trading Tip: Look for RSI/MACD divergence at the D-point for added confirmation.
7️⃣ Shark Pattern 🦈
✅ Newer harmonic pattern variation
✅ Similar to Crab but uses different Fibonacci rules
Shark Pattern Structure:
AB = 113% - 161.8% extension of XA
BC = 113% - 161.8% extension of AB
CD = 88.6% retracement of XA
D-point PRZ → Strong reversal expected
🚀 Trading Tip: Shark patterns often appear before larger trend reversals, so they work well for early trend detection.
🔷 Advanced Harmonic Patterns Overview
📌 3-Drives Pattern
Predicts the end of trends using 3 equal price movements
Each drive follows Fibonacci retracements/extensions
Strong reversal happens after the 3rd drive completes
📌 Alternate Bat Pattern
Similar to Bat but has a deeper B-point retracement (50% of XA instead of 38.2%)
More accurate for identifying trend continuation trades
📌 White Swan & Black Swan
Developed by harmonic trading expert Scott Carney
Similar to the Crab, but focuses on psychological market structure
🚀 How to Trade Harmonic Patterns Successfully
Step 1: Identify the Pattern & PRZ
Use harmonic pattern scanners or manual Fibonacci tools.
Step 2: Wait for Reversal Confirmation
Look for candlestick patterns (pin bars, engulfing candles).
Check RSI, MACD, and volume divergence.
Step 3: Place Your Trade
Entry: Once price reacts at PRZ.
Stop Loss: Beyond PRZ invalidation level.
Take Profit: Fibonacci retracement levels (38.2%, 61.8%, 100%, 161.8%).
🔥 Summary – Why Harmonic Trading Works
✅ High accuracy when Fibonacci ratios are respected
✅ Works across all timeframes (forex, stocks, crypto, indices)
✅ Combines price action, Fibonacci, and confluence factors
If you master these harmonic patterns, you'll consistently spot reversals early, maximize profits, and minimize risks! 🚀📈
How to Trade With Cookie's A.I. Engulfing ScreenerIn this video, I break down how to use **Cookie's Engulfing Band Screener**, a powerful tool designed to filter out false engulfing signals and improve trading accuracy.
🚀 **How It Works:**
✔️ **Trade signals inside the band are false.**
✔️ **Valid trade signals occur when price breaks or touches the upper/lower band.**
✔️ **Sell Entry** – When price touches or breaks above the upper band.
✔️ **Buy Entry** – When price touches or breaks below the lower band.
✔️ If price re-enters the band after breaking out, another entry signal is triggered.
🎯 **Key Features:**
✅ Works on any timeframe
✅ Automatically places buy/sell labels at the right spots
✅ Alerts for trade entries so you never miss an opportunity
✅ Helps you avoid bad trades and focus on high-probability setups
🔥 **Why Use This?**
I've found this to be extremely effective in improving my trading accuracy, cutting out noise, and refining my entries. If you're looking for a simple yet powerful way to trade engulfing patterns with confidence, this is for you!
📈 **Watch the full breakdown and start trading smarter today!**
🔔 **Don't forget to like, comment, and subscribe for more trading strategies!**
Best Fibonacci Retracement and Extension Levels for Trading
In this short article, you will learn the best Fibonacci extension and retracement levels for trading Forex and Gold.
I will share with you correct settings for Fibonacci tools and show you how to use & draw Fibonacci's properly on TradingView.
Best Fibonacci Retracement Levels
First, let's discuss Fibonacci retracement levels.
Here are the default settings for Fibonacci retracement tool on TradingView.
We will need to modify that a bit.
We should keep 0; 0,382; 0,5; 0,618; 0,786; 1 levels
0,382; 0,5; 0,618; 0,786 will be the best retracement levels for Forex & Gold trading.
How to Draw Fibonacci Retracement Levels Properly
In order to draw fib.retracement levels properly, you should correctly identify a price action leg.
You should underline that from its lowest low to its highest high, taking into consideration the wicks of the candlesticks.
Fibonacci Retracement of a bullish price action leg will be applied from its low to its high.
1.0 Fibonacci level should lie on the lowest lie, 0 - on the highest high.
Fibonacci Retracement of a bearish price action leg will be applied from its high to its low.
Best Fibonacci Extension Levels
Above, you can find default Fib.extension settings on TradingView.
We will need to remove all the retracement levels; 2,618; 3,618; 4,236 and add 1,272; 1,414 levels.
1,272; 1,414; 1,618 will be the best Fibonacci Extension levels for trading Gold and Forex.
How to Draw Fibonacci Extension Levels Properly
Start with correct identification of a price action leg.
Draw the Fib.Extension levels of a bearish price movement from its high to its low .
Draw the Fib.Extension levels of a bullish price movement from its low to its high.
I apply the fibonacci levels that we discussed for more than 9 years.
They proved its efficiency and strength in trading different financial markets. Learn to combine Fibonacci levels with other technical analysis tools to make nice money in trading.
❤️Please, support my work with like, thank you!❤️
CPI Data & Trend Rejection – Precision Trading on USDJPY🚀 High-Impact CPI Data Moves Markets – Smart Traders Win! 🚀
This trade was executed with precision using a clear downtrend, key rejection zone, and market reaction to CPI data. Combining technical confluence with fundamental catalysts, we secured a solid 1:5 RR setup.
📉 Expert analysis confirms trend strength after inflation data!
✅ Strong break of the downward trend – Clear technical confirmation of bearish momentum.
✅ CPI impact on the markets – High volatility creates golden opportunities!
🔍 Technical indicators confirmed the entry from the rejection zone (AOI).
✅ Price reacted perfectly to the analysis, securing a solid 1:5 RR!
📢 This is the power of combining technical and fundamental analysis – trading smart, not random!
💬 Drop your analysis in the comments & follow for more top-tier setups! 🚀📉
#Forex #GoldTrading #USDJPY #CPI #TechnicalAnalysis #TradingStrategy #FinancialMarkets #SmartTrading
Tips & Tricks by CandleStyxI was observing Dogecoin on the 1 HR and came up with all these observations and maybe you can learn some new ways to look at things if you can understand my scribbles.
Some clues I noticed:
1. possible cup n handle formation
2. The arrows are all copy pasta same lengths and time
3. Apart of the big breakout arrow which measures the size of the cup from top to bottom.
4. Look at the date ranges numbers
5. See the Fibonacc Golden Pocket has ideal level for a Handle
6. It would also retest the breakout from the ascending green triangle
7. Target of the Cup and Handle pattern is right into the resistance & liquidity and would be the first deep test of its strength
8. Interesting that the breakout is programmed to be exactly nearby the weekly and 2 week candle close
9. Keeping in Mind the Biweekly Bitcoin crossing macd to downside could it be a failing outbreak?
10. Also they say that if the handle comes deeper than 12% it will most likely fail.
11. Conclusion is to observe if we go lower than 12% as that could be a clue if the outbreak could be a trap or not.
12. Grab this Chartlayout and make it yours!
Tell me in the comments what YOU think will happen and explain why.
More updates might follow.
Buy and Sell buttonsHello Amazing TradingView team,
I have idea that I would think make things easier for traders. On the Buy and Sell buttons if you can change the size of the front and make bigger the price numbers for the two numbers that are the second and third from the end. It would really help the price that we are looking at really stand out. Some other platforms do this like meta trader 4, that's really the only thing I like better about meta trader 4.
Thanks so much for listening to my suggestion.
Brett
How Your Brain Tricks You Into Making Bad Trading Decisions!!!Hello everyone! Hope you’re doing well. Today, we’re diving into a crucial topic—how your brain can work against you in trading if it’s not trained properly. Many traders think they’re making logical decisions, but subconscious biases and emotions often take control.
Our brain operates in two modes: intuitive thinking (fast, emotional, automatic) and deliberative thinking (slow, logical, analytical). In trading, intuition can lead to impulsive mistakes—chasing price moves, hesitating on good setups, or exiting too early out of fear.
To improve, traders must shift from intuition to deliberation by following structured plans, back testing strategies, and practicing emotional discipline. In this discussion, we’ll explore how to overcome these mental biases and make smarter trading decisions. Let’s get started!
Most traders face common mistakes—exiting winners too early, letting profits turn into losses, holding onto bad trades, or making impulsive decisions. Why? Because our brain isn’t wired for trading. In everyday life, instincts help us, but in trading, they often lead to fear, greed, and denial.
Your Brain Operates in Two Modes
Just like in daily life, where we sometimes act on reflex and other times think things through carefully, our trading mind also operates in two distinct modes: intuitive thinking and deliberative thinking. Intuitive thinking is fast, automatic, and effortless. It helps us make quick decisions, like braking suddenly when a car stops in front of us. However, in trading, this rapid decision-making often leads to impulsive actions driven by emotions like fear and greed. This is why many traders enter or exit trades without a solid plan, reacting to market movements instead of following a strategy.
On the other hand, deliberative thinking is slow, effortful, and analytical. This is the part of the brain that carefully weighs options, follows rules, and makes logical decisions—like when solving a complex math problem or planning a trading strategy.
Our intuitive brain is designed to make quick and automatic decisions with minimal effort. This is the part of the brain that helps us react instantly to situations—like catching a falling object or braking suddenly while driving. It relies on patterns, emotions, and past experiences to make snap judgments. In everyday life, this ability is incredibly useful, saving us time and energy. However, when it comes to trading, this fast-thinking system can often lead us into trouble.
For example, a trader might see the market rising rapidly and instinctively think, “This can’t go any higher! I should short it now.” This reaction feels obvious in the moment, but it lacks deeper analysis. The market could continue rising, trapping the trader in a losing position. Because intuitive thinking is based on gut feelings rather than structured reasoning, it often leads to impulsive and emotionally driven trading decisions. In the next slides, we’ll explore how to counterbalance this instinct with deliberative thinking—the slow, logical approach that leads to better trading decisions.
Unlike intuitive thinking, which reacts quickly and emotionally, deliberative thinking is slow, effortful, and analytical. It requires conscious thought, logical reasoning, and careful consideration before making a decision. This is the part of the brain that helps traders analyze probabilities, assess risks, and make well-informed choices rather than acting on impulse. While it takes more time and effort, it leads to better trading outcomes because decisions are based on data and strategy rather than emotions.
For example, instead of immediately reacting to a fast-moving market, a deliberative trader might pause and think, “Let me check the higher time frame before deciding.” This approach helps traders avoid unnecessary risks and false signals by ensuring that every trade is well-planned. The most successful traders operate primarily in this mode, following a structured process that includes technical analysis, risk management, and reviewing past trades. In the next slides, we’ll discuss how to train our brains to rely more on deliberative thinking and reduce emotional reactions in trading.
Take a moment to answer these two questions:
A bat and a ball cost ₹150 in total. The bat costs ₹120 more than the ball. How much does the ball cost?
If 5 machines take 5 minutes to make 5 widgets, how long would 100 machines take to make 100 widgets?
At first glance, your brain might immediately jump to an answer. If you thought ₹30 for the first question or 100 minutes for the second, you’re relying on intuitive thinking. These answers feel right but are actually incorrect. The correct answers are ₹15 for the ball (since the bat costs ₹135) and 5 minutes for the second question (since each machine’s rate of production stays the same).
This exercise shows how intuitive thinking can mislead us when dealing with numbers and logic-based problems. The same happens in trading—snap decisions based on gut feelings often lead to costly mistakes. To improve as traders, we need to slow down, double-check our reasoning, and shift into deliberative thinking. In the next slides, we’ll explore how to strengthen this skill and apply it to trading decisions.
Did Your Intuition Trick You?
Let’s review the answers:
Answer 1: The ball costs ₹15, not ₹30! If the ball were ₹30, the bat would be ₹150 (₹120 more), making the total ₹180, which is incorrect. The correct way to solve it is by setting up an equation:
Let the ball cost x.
The bat costs x + 120.
So, x + (x + 120) = 150 → 2x + 120 = 150 → 2x = 30 → x = 15.
Answer 2: The correct answer is 5 minutes, not 100 minutes! Since 5 machines take 5 minutes to make 5 widgets, each machine produces 1 widget in 5 minutes. If we increase the number of machines to 100, each still takes 5 minutes to produce a widget, so 100 machines will still take 5 minutes to make 100 widgets.
Most people get these answers wrong because their intuitive brain jumps to conclusions without thinking through the logic. This is exactly how traders make impulsive mistakes—by relying on gut feelings instead of slowing down to analyze the situation properly. The key lesson here is that we must train ourselves to pause, question our first reaction, and shift into deliberative thinking when making trading decisions.
Why is Intuitive Thinking Dangerous in Trading?
Intuitive thinking is great for quick decisions in everyday life, like catching a falling object or reacting to danger. However, in trading, this fast-thinking system becomes a problem because it takes shortcuts, ignores probabilities, and acts on emotions rather than logic. When traders rely on intuition, they often react impulsively to price movements, overestimate their ability to predict the market, and make decisions based on fear or greed rather than strategy.
For example, a trader might see a market rapidly rising and instinctively think, “This can’t go any higher—I should short it!” without checking key levels or trends. Or, after a few losses, they may feel the urge to take revenge trades, hoping to recover quickly. These emotional reactions lead to poor risk management and inconsistent results. To succeed in trading, we must recognize these intuitive traps and learn to replace them with a structured, logical approach.
Let’s look at some common mistakes traders make due to intuitive thinking:
Shorting just because the market has risen too much: A trader might see a sharp price increase and feel like it’s too high to continue, instinctively thinking, “This can’t go any higher; it’s due for a drop.” However, the market doesn’t always follow logical patterns, and this emotional reaction can lead to premature trades that result in losses.
Buying just because the market is falling: Similarly, traders may feel compelled to buy when the market falls too much, thinking, “It’s too low to go any further.” This belief, without proper analysis, can lead to buying into a downtrend or even catching a falling knife, resulting in significant losses.
Taking tips from social media without analysis: Many traders fall into the trap of acting on market tips or rumors they see on social media or trading forums. These decisions are often made without proper research, relying purely on gut feelings or herd mentality.
If you've ever taken a trade just because it "felt right" without fully analyzing the situation, chances are your intuitive brain was in control. These emotional decisions are natural, but they often lead to costly mistakes. The key to improving your trading is learning to slow down, analyze the situation carefully, and avoid rushing into trades based on impulse.
Why Deliberative Thinking Matters
Deliberative thinking is the key to becoming a successful trader because it encourages us to assess probabilities, reduce impulsive trades, and ensure well-thought-out decisions. Instead of acting on gut feelings, traders who use deliberative thinking take the time to analyze market conditions, trends, and risks. By calculating probabilities, reviewing different scenarios, and sticking to a solid trading plan, they can make more rational decisions that are grounded in logic, not emotions.
This slow, methodical approach may seem counterintuitive in a fast-paced market, but it’s what separates successful traders from those who constantly chase the market. The best traders don’t act on impulse; they analyze, think critically, and then trade. This approach leads to consistency in trading, as decisions are based on a systematic process rather than emotional reactions. By training your brain to operate in this way, you’ll improve your decision-making and reduce the likelihood of impulsive, emotional mistakes.
Let’s look at a real-world example of how intuitive thinking can trap traders:
The market rallies from 26,800 to 28,800, and as the price starts to pull back, lower lows form on the hourly chart. Many traders, relying on the short-term price action, decide to short the market, thinking the rally is over. However, when you zoom out and check the daily chart, you notice that there’s no clear reversal signal—it's still showing an overall uptrend.
Despite this, many traders act impulsively based on what they see on the smaller time frames, only to watch the market rally another 500 points, trapping those who shorted the market.
This is exactly how intuitive traders get trapped—by making decisions based on the lower time frames without considering the bigger picture. Deliberative thinking would involve checking higher time frames, assessing the trend, and waiting for a proper confirmation before entering a trade. By training yourself to think this way, you’ll avoid getting caught in market traps like this one.
One of the best strategies for avoiding impulsive mistakes is to always check daily or weekly charts before taking a trade. While it’s tempting to act on short-term movements, smart traders zoom out to get a clearer picture of the market's overall trend. By analyzing higher time frames, you can see if the market is truly reversing or if it's simply a temporary pullback within a larger trend.
It’s important to look for confirmation of trends before acting. If the higher time frames show an uptrend, but the lower time frames show a temporary dip, it may be wise to wait for confirmation before making a trade. Don’t rush based on short-term movements; give yourself time to assess the bigger picture and make decisions based on a well-thought-out analysis rather than emotional reactions.
Remember, successful traders understand that the higher time frame offers critical insights into market direction. By incorporating this approach, you’ll make more informed, consistent trading decisions and avoid getting trapped by short-term fluctuations.
Shifting from intuitive to deliberative trading takes practice, but with consistent effort, you can train your mind to make better decisions. Here’s how you can start:
Review past trades – Were they intuitive or deliberate? Reflecting on your previous trades helps you identify whether your decisions were based on impulse or careful analysis. Understanding the reasoning behind your past trades can help you improve future ones.
Ask ‘Why?’ before every trade: Before entering any position, take a moment to ask yourself, “Why am I taking this trade?” This forces you to think critically and ensures that your decision is based on analysis rather than emotions.
Use probabilities, not gut feelings: Deliberative thinking is based on probability, so focus on statistical analysis and historical patterns rather than relying on your gut. This might include checking your risk-to-reward ratio or waiting for confirmation signals from multiple indicators.
Follow a structured trading plan: A solid trading plan with clearly defined rules and guidelines will help you make logical, consistent decisions. When you follow a plan, you’re less likely to make emotional, impulsive trades.
By implementing these steps, you’ll gradually train your mind to operate more deliberately, leading to more disciplined and profitable trading. Remember, trading is a skill that improves with practice, so take the time to develop your deliberative thinking.
A great historical example of intuitive thinking gone wrong is the Dot-Com Bubble of the late 1990s. During this time, many companies added “.com” to their names, capitalizing on the internet boom. Investors rushed in blindly, often buying shares of these companies based purely on the excitement of the market and the fear of missing out (FOMO).
However, many of these companies had no real business model or clear path to profitability. Investors, driven by emotional excitement and herd mentality, ignored the fundamentals—such as profitability, cash flow, and market demand. As a result, the market eventually collapsed, wiping out traders who didn’t take the time to analyze the companies' real value and business models.
This is a perfect example of intuitive investors acting on emotions and hype without real analysis—and losing big. To avoid this trap, it’s important to apply deliberative thinking, focusing on thorough research, fundamental analysis, and careful assessment of market conditions. This case study shows the importance of not jumping into investments based on emotional impulses but making decisions grounded in solid analysis.
To become a successful trader, you must shift from relying on intuitive thinking to embracing deliberative thinking. Here’s how you can start making that transition:
Avoid easy, obvious trades: If a trade feels too easy or too obvious, it’s often a trap. The market is complex, and quick decisions based on gut feelings usually lead to impulsive mistakes. Take the time to think through your trades, even if they seem like a “sure thing.”
Develop patience and discipline: Patience is key in trading. Instead of reacting immediately to market moves, wait for the right setups and confirmations. Discipline ensures you follow your plan and don’t get swept up in the moment.
Learn to think in probabilities: Trading is about probabilities, not certainty. Start thinking in terms of risk and reward, and assess the likelihood of different outcomes before entering a trade. This shift in mindset will help you make more rational, logical decisions.
Be skeptical of ‘obvious’ trade setups: If a trade seems too perfect or too easy, it’s worth questioning. Often, the most obvious setups are the ones that lead to losses. Always do your due diligence and question your assumptions before pulling the trigger.
By making these changes, you’ll develop a trading mindset that focuses on thoughtful analysis, patience, and probability, rather than emotional, impulsive decisions. The goal is to think deeper, be more strategic, and avoid rushing into trades based on intuition.
Now that we’ve covered the key principles, it’s time to take action.
Start by reviewing your past trades. This is crucial for identifying whether your decisions were based on intuition or deliberate thinking. By reflecting on your trades, you can spot patterns and areas where you may have made impulsive decisions.
Next, identify your intuitive mistakes. Think about trades where you acted quickly or without full analysis. Were you influenced by emotions like fear or greed? Understanding these mistakes helps you avoid repeating them in the future.
Finally, commit to making deliberate decisions going forward. Before you place your next trade, take a step back. Analyze the market, assess probabilities, and follow your trading plan. This shift to a more thoughtful, disciplined approach is what will help you become a more consistent and successful trader.
Your next trade is an opportunity to put these principles into practice. Let’s focus on making smarter, more deliberate decisions from here on out!
News TradingLet’s talk about news trading in Forex . While news trading is extremely lucrative it’s one of the most risky things a trader can do and experience. News and data cause extreme volatility in the market and as we always say “volatility can be your friend or your enemy” . Let’s take a deeper dive into news trading, which news and data affect the TVC:DXY precious metals such as OANDA:XAUUSD and other dollar related currency pairs. We will also cover having the right mindset for trading the news.
1. Understanding News Trading in Forex
News trading is based on the idea that significant economic data releases and geopolitical events can cause sharp price fluctuations in forex markets. We as traders, aim to profit from these sudden price movements by positioning ourselves before or immediately after the news hits the market. However, due to market unpredictability, it requires a strategic plan, risk management, and quick decision making.
2. What to Do in News Trading
1. Know the Key Economic Events – Monitor economic calendars to stay updated on high-impact news releases.
The most influential events include:
Non-Farm Payrolls (NFP) – A report on U.S. job growth that heavily influences the U.S. dollar.
Consumer Price Index (CPI) – Measures inflation, impacting interest rate decisions and currency valuation.
Federal Open Market Committee (FOMC) Meetings – Determines U.S. monetary policy and interest rates, affecting global markets.
Gross Domestic Product (GDP) – A key indicator of economic growth, influencing currency strength.
Central Bank Statements – Speeches by Fed Chair or ECB President can create large market moves.
2. Use an Economic Calendar – Websites like Forex Factory, Investing.com, or DailyFX provide real-time updates on economic events.
3. Understand Market Expectations vs. Reality – Markets often price in expectations before the news is released. If actual data deviates significantly from forecasts, a strong price movement may occur.
4. Trade with a Plan – Whether you are trading pre-news or post-news, have clear entry and exit strategies, stop-loss levels, and a defined risk-to-reward ratio.
5. Monitor Market Sentiment – Pay attention to how traders are reacting. Sentiment can drive price action more than the actual data.
6. Focus on Major Currency Pairs – News trading is most effective with liquid pairs like FX:EURUSD , FX:GBPUSD , FX:USDJPY , and OANDA:USDCAD because they have tighter spreads and high volatility.
3. What NOT to Do in News Trading
1. Don’t Trade Without a Stop-Loss – Extreme volatility can cause sudden reversals. A stop-loss helps prevent catastrophic losses.
2. Avoid Overleveraging – Leverage magnifies profits but also increases risk. Many traders blow accounts due to excessive leverage.
3. Don’t Chase the Market – Prices may spike and reverse within seconds. Jumping in late can lead to losses.
4. Avoid Trading Without Understanding News Impact – Not all economic releases cause the same level of volatility. Study past reactions before trading.
5. Don’t Rely Solely on News Trading – Long-term success requires a balanced strategy incorporating technical analysis and risk management.
4. The Unpredictability of News Trading
News trading is highly unpredictable. Even when a report meets expectations, market reactions can be erratic due to:
Market Sentiment Shifts – Traders might focus on different aspects of a report than expected.
Pre-Pricing Effects – If a news event was anticipated, the market might have already moved, causing a ‘buy the rumor, sell the news’ reaction.
Liquidity Issues – Spreads widen during major news events, increasing trading costs and slippage.
Unexpected Statements or Revisions – Central banks or government agencies can make last-minute statements that shake the market.
5. How News Affects Forex, Gold, and the U.S. Dollar
1. U.S. Dollar (USD) – The USD reacts strongly to NFP, CPI, FOMC statements, and GDP reports. Strong economic data strengthens the dollar, while weak data weakens it.
2. Gold (XAU/USD) – Gold is an inflation hedge and a safe-haven asset. It often moves inversely to the USD and rises during economic uncertainty.
3. Stock Market & Risk Sentiment – Positive economic news can boost stocks, while negative reports may trigger risk aversion, benefiting safe-haven currencies like JPY and CHF.
6. The Right Mindset for News Trading
1. Accept That Volatility is a Double-Edged Sword – Big moves can mean big profits, but also big losses.
2. Control Emotions – Fear and greed can lead to impulsive decisions. Stick to your strategy.
3. Risk Management is Key – Never risk more than a small percentage of your capital on a single trade.
4. Adaptability – Be prepared to change your approach if market conditions shift unexpectedly.
5. Patience and Experience Matter – The best traders wait for the right setups rather than forcing trades.
Thank you for your support!
FxPocket
Forex: Why and How to Use TradingView
Dear readers, I am Trader Andrea Russo and today I want to talk to you about the reason why I use TradingView.
The Forex (Foreign Exchange) market is one of the largest and most dynamic in the world, with over 6 trillion dollars traded every day.
TradingView is one of the most popular platforms for technical analysis and chart viewing, particularly appreciated by Forex traders. In this guide, we will explore how to use TradingView to trade Forex, taking advantage of the tools and features offered by the platform.
What is TradingView?
TradingView is a technical analysis platform that offers advanced charts, drawing tools, customizable indicators, and an active community of traders. Among its main features:
Real-time charts on any timeframe, from 1 minute to daily or weekly.
Technical indicators such as RSI, MACD, moving averages, and much more.
Social trading to share ideas with other traders and learn from their analysis.
Drawing tools to plot trends, channels, and Fibonacci.
With its user-friendly interface, TradingView is ideal for beginner traders and those looking for advanced analysis.
How to Trade Forex with TradingView
1. Choose a Currency Pair
The first step to start trading Forex is to choose a currency pair to analyze, such as EUR/USD or GBP/JPY. Each pair represents the value relationship between two currencies. For example, in the case of EUR/USD, the base currency is the Euro and the counter currency is the US Dollar.
2. Use Charts
TradingView offers several views:
Candlestick Chart: Shows price movements in specific time frames. It is the most used chart in Forex.
Line Chart: Shows only closing prices, useful for observing general trends.
Bar Chart: Shows the open, close, high and low for each period.
These visualizations help you better understand the market trend.
3. Set Indicators
Indicators are essential tools in technical trading. On TradingView, you can use:
RSI (Relative Strength Index): Shows whether a currency pair is overbought or oversold (levels above 70 indicate overbought, below 30 oversold).
MACD (Moving Average Convergence Divergence): Provides trend reversal signals and can be used to confirm the market direction.
Moving Averages (MA): Helps identify the market direction and filter trading signals.
4. Customize Drawing Tools
TradingView offers powerful drawing tools such as:
Trend Lines: To plot support and resistance levels.
Fibonacci Retracement: To identify key price reversal levels.
Channels: To analyze price movements within a defined range.
These tools allow you to precisely track market entry and exit points.
5. Create Alerts
TradingView allows you to set custom alerts. You can receive notifications via email or directly on the platform when the price reaches certain levels. This is particularly useful for not missing important trading opportunities.
Forex Trading Strategies
1. Trend Trading
One of the most common strategies is trend following. When the market is in an uptrend (bullish trend), buy; when it is in a downtrend (bearish trend), sell. Use moving averages or the MACD indicator to identify the direction of the trend.
2. Retracement Trading
Retracements are corrective movements within a trend. You can use Fibonacci Retracement to identify support and resistance levels, and wait for the price to retrace before entering the market in the direction of the main trend.
3. Scalping
Scalping is a short-term strategy that aims to make small profits from rapid price movements. Use short timeframes (for example 1 minute or 5 minutes) and take advantage of spikes in volatility.
4. Breakout Trading
Breakout trading is based on breaking key support or resistance levels. When the price breaks these levels, a strong move in one direction is expected. Indicators such as ATR (Average True Range) help you monitor volatility and choose the right times to enter the market.
Forex Trading Tips
Risk Management: Forex is a highly leveraged market, so protecting your capital is key. Use stop losses and take profits to limit losses and protect gains.
Conclusions
TradingView is an excellent tool for Forex trading, thanks to its wide range of advanced features, ease of use and the ability to analyze charts accurately.