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Priceaction

PRICE ACTION TRADING | THREE TYPES OF TRIANGLES YOU MUST KNOW 📐 Hey traders, In this post, we will discuss 3 simple and profitable types of a triangle pattern. 1️⃣The first type of triangle is called a descending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bullish trend. Setting a new higher high the market retraces and sets a higher low, then bulls start pushing again but are not able to retest a current high and instead the price sets a lower high and drops to the level of the last higher low setting an equal low. The price keeps trading in such a manner setting lower highs and equal lows till the price sets a new lower low. Most of the time it gives a very accurate signal of a coming bearish move. Please, note that a triangle formation by itself does not give an accurate short signal. The trigger that you should wait for is a formation of a new lower low. 2️⃣The second type of triangle is called a symmetrical triangle. It is a classic indecision pattern. It can be formed in a bullish, bearish trend, or sideways market. The price action starts contracting within a narrowing range setting lower highs and higher lows. Based on them, two trend lines can be drawn. Breakout of one of the trend lines with a quite high probability indicates a future direction of the market. 3️⃣The third type of triangle is called an ascending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bearish trend. Setting a new lower low the market retraces and sets a lower high, then bears start pushing again but are not able to retest a current low and instead the price sets a higher low and bounces to the level of the last lower high setting an equal high. The price keeps trading in such a manner setting higher lows and equal highs till the price sets a new higher high. Most of the time it gives a very accurate signal of a coming bullish move. 📍Please, note that a triangle formation by itself does not give an accurate long signal. The trigger that you should wait for is a formation of a new higher high. Learn to recognize such triangles and you will see how accurate they are. Let me know what pattern do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Understanding the Story of a Currency Pair When trading price action, it's crucial that you understand the story of the currency pair you are trading.For what current price is doing is only valuable in the overall context of what a currency pair has been doing.Just like reading a book or watching a movie, watching it from the half-way point won't allow you to understand what's happening; for current dialogue only has meaning with a context.So here's 2 things you can do to know the story of a currency pair: 1.) Analyze new price everyday to build the story. Ask yourself, " is current price confirming your perspective of the direction of a currency pair?Or is current price showing signs of a changing story? 2.) Use multiple time frames.The higher and lower time frame's stories should compliment eachother.Ask yourself " is current price on the lower time frames confirming the story on the higher time frames?" Moreover, understanding the story of a currency pair gives the trader an understanding of the tendancies of that pair.Each pair has very different characteristics.Just like how a music composer has tendancies when composing music.Each pair has identifiable, or rather, "trademark" tendancies.For example, the Eur/Usd pair tends to be very accurate in terms of price levels.So if there's a well repected trendline and you expect price to bounce off of it, it will do so with accuracy right down to the last decimal.Moreover the Gbp/Usd tends to have many pullbacks before an extended move in a direction takes off.Having this knowledge allows for great position building as well as the understanding that there are further opportunities to enter a trade even if you missed the initial entry. In this way, understanding the story of a currency pair and keeping this story up to date, gives a trader a general sense of "unison" with that pair.Allowing them to notice slight changes in the over-arching trend and therefore have the ability to be one step ahead of the market at all times. That's it! I hope this helps! Have a great day guys! Ken
Education
by TradingForexPriceAction
4
How the higher time frames help you to avoid unnecessary losses Hello everyone: Today I want to discuss the importance of higher time frame analysis. Doesn't matter what type of trading strategy, method or style you use, the higher time frame often will help us to strengthen our bias overall and give us a good perspective of the possible direction for the price to go. In addition, it helps traders to avoid unnecessary losses and mediocre entries that will eat up your profits. More often I hear traders will execute trades on the lower time frames, and not factor the overall higher time frame bias and perspective. Although entering on the smaller time frame can potentially give you more Risk:Reward, it's often more risky and trades can easily reverse, then hit the stop loss. This often creates stress, negativity, and revenge trading psychology for traders which ended up blowing accounts. I want to give a few examples of higher time frame analysis, how they can help traders to avoid “traps” on the lower time frames, avoid unnecessary losses, and keep the emotion at bay to trade another day. When having a bullish bias on the HTFs, its good risk management to not consider any short term, bearish sell setups. These sell setups may form on the LTFs, but they can easily not continue to your desired target, and reverse up before you have time to react. In addition, traders hate to see profit come and go. So if a trader has a short position running in some profit, but decides to hold onto the trade, and once the position reverses, traders don't want to exit, and then end up holding a losing position to its SL. Examples: AUDUSD: HTF: Overall bias and perspective in bullish LTF: Many LTF bearish setups/development, but due to going against the HTF, they ended up with losses NZDUSD: HTF: Overall bias and perspective in bullish LTF: Many LTF bearish setups/development, but due to going against the HTF, they ended up with losses AUDCHF: HTF: Overall bias and perspective in bullish LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss NZDCHF: HTF: Overall bias and perspective in bullish LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss NZDCAD: HTF: Overall bias and perspective in bullish LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss SILVER: HTF: Overall bias and perspective in bullish LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss
Education
by jojofang0901
19
How To Analyze Any Chart From Scratch - Episode 3Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on SILVER, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. You can find the previous two episodes below "Related Ideas" Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
FOREXCOM:XAGUSDEducation
by TheSignalyst
27
How To Analyze Any Chart From Scratch - Episode 2Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on XRP, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BITSTAMP:XRPUSDEducation
by TheSignalyst
77
Price Action Ranges| Range High/Low| Deviations In this segment we will discuss the concept behind Price Action Ranges; they are periods of oscillation in the market where supply and demand is balanced. Once this occurs, there is a high probability of a price expansion out of the range. The basic concepts in price action ranges are the following: - Range High Resistance - Range Low Support - Range –Mid - Deviations Range High Resistance - This is an area on the chart where resistance is present, price action tests this area before reversing back down Range Low Support - This is an area on the chart where support is present, price action visits this area for a test before reversing back up Deviations - Deviations occur out of the region to generate liquidity, it is designed to trap trader before reversing in the opposite direction.
Education
by AzizKhanZamani
ow to Apply Trailing Stop | PRICE ACTION TRADING 📚 Hey traders, In this post, I will share with you my strategy to apply a trailing stop. Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are strictly on a retest. 1️⃣ Spotting a price action pattern I am always waiting for its neckline breakout. (if we talk about different channels, then by a neckline we mean its trend line) Once I see a candle close below/above the neckline, I set my sell/buy limit order on a retest. Stop loss will strictly lie below the lows of the pattern if we buy and above the highs of the pattern if we sell. 2️⃣ Once we are in a trade, you should measure the pattern's range (distance from its high to its low based on wicks) and then project that range from the entry to the direction of the trade. In the picture, the pattern range and its projection are the underlined blue areas. Once the price reaches the projection of the pattern's range, you should move your stop loss to entry and make your position risk-free. Move stop to breakeven in traders' slang. 3️⃣ Then you should let the market go. 📈If you are holding a long position you should let the market retrace and set a higher low and then a new higher high or AT LEAST an equal high. Once these conditions are met you can trail your stop and set it below the last higher low. 📉If you are holding a short position you should let the market retrace and set a lower high and then a new lower low or AT LEAST an equal low. Once these conditions are met you can trail your stop and set it above the last lower high. Catching a trending market you should trail your stop based on new higher lows / lower highs that the price sets. Occasionally you will catch big winners. How do you apply a trailing stop? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
5
How To Analyze Any Chart From Scratch - Episode 1Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on USDCHF, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
49
What makes trading different from gambling? [No Trading Zone]#Notradingzone #Tocademy #PrincipleTrading #Confluence Hello traders from all over the world. Observing thousands of retail traders during my lessons, lectures, and consulting, I realized that a lot of novice traders in contemporary market have some bad trading habits. Especially if you are a daily trader or scalper who usually take small and many short-term trades, please pay attention! Someday in the future, hopefully, you will eventually realize that the best and most ideal position in the world is to take neutral position. What I mean here doesn't imply that you should not trade at all and rest the whole time. After entering this world of trading, within the process of becoming a mature trader there is a time when you realize the power of the TA(Technical Analysis). Once you start to practically utilize what you have studied and even see how the numbers on your account grow, you literally become mesmerized. This magical thing called ‘Trading’ would feel like the ONE you have been searching for the whole life. I know, calm down! It feels great when the price reacts to the lines and indicators you have drawn and put on the chart by yourself. In this particular stage, I see many traders sit in front of the monitors or watch their smartphones all day long, being addicted to trading. Well, here’s a truth that I deducted through years of my trading career and the data that I have researched; addictive traders hardly become successfully. Always remember that our ultimate purpose of trading is to solely make money, not just for fun. Of course, making money would be fun but for some of you, the priorities of these two are switched. Before you even notice, you might find yourself gambling rather than trading. Now put your hands down, close your eyes, and think for a minute. Are you anxious when you are not in a position? Do you frequently regret that you closed your position too early? Do you become angry when you miss big long or short? Are you so urgent to recover your loss as soon as possible? Does trading disturb your primary work? (Hard to focus both, isn’t it?) Does trading masses up your lifestyle and relationship with people? If you replied ‘Yes’ to majority of the questions, please cancel all of the pending orders right now, turn off the chart, get some rest, and forget about trading just for a while. I understand more than anyone that you are full of desire to chase all these micro trends or minor waves in 1 minute chart. Especially those who are trying to recover all the losses you made this week ASAP, before you encounter a bigger loss, trust me, take some time, and cool your head. I am sorry to say but you might be more of a gambler than a trader right now. Sure, there would be few that still do fine with all those conditions but if you eventually keep ending up bad due to excessive entries or lose entire seed at one cue after series of consecutive wins, your addiction might be interfering your judgment. Irrational trading decisions are the biggest risk that human traders have to face and restraining our emotions during trading is integral. (Please click the image/link below for details) As the image below indicates, since we humans cannot perfectly control our emotions every single day, the total number of trades and the net performance are not always proportional in a short-term period. In other words, spotting thousands of entries in a single day does not always lead to daily accumulative profit. Not only you pay high transaction fees, but your physical and mental exhaustion can lower your concentration seducing your irrationalized perceptions to break your trading principles. Accordingly, the more excessive amount of time spent looking into the chart, the more likely our logical sense becomes numb and vague which can easily cause FUD and FOMO. Researches have shown that the relationship between the entry rates and the performance (per certain period of time) of retail traders is averaged out as a curved shape with a local maximum coordinate. This peak point implies the ideal amount of profit and entries of a trader. It would be different for each trader depending on their preferences, capabilities, and other circumstances. For instance, 3~4 entries and $10,000 profit per day might be ideal set or oriented goals for some traders, while 10~15 entries and $100 profit per day might be those for other traders. Hence it is important for us to figure out each of our own boundary and refer to it when designing strategies and PnL first of all. Therefore, a well systematically designed strategy that can effectively weigh and quantify technical signals based on the scientific and reliable evidences must be adapted. Once validities of each are scaled, we would be able to comprehend which signals are relatively more reliable than others. Shown on the main image above, even though entering a 80% credibility zone will provide low entry rate, higher RR ratio and win-rate can be achieved. We need to train ourselves to be able to call “No Trading Zone” when the identified trends and derived price action zones do not meet the minimum standards of our own. Some of the talented and successful daily traders I’ve met are not very much different from most of us here. They analyze the market and design trading setups just like we do. If anything, that made them superior, they have a proficient sense for spotting the “No Trading Zone”. They are amazingly good at consistently stepping aside if the signals are not reliable enough or do not meet their standards. They know time is on their side and they wait in patient. It's just simply deciding whether to take certain trades or not, filtering out some of less potential entries and maintaining no position when they are less convinced about the signals, but these tiny differences ultimately result in a huge difference in performances. Investors who trade with technical charts like us can measure the credibility of signals based on the confluency of technical signs and indicators. Here are two traders: trader A and B. Trader A considers eight signals (techniques, indicators, and theories). For example, trader A observes volumes, trendline, Fibonacci levels, moving averages, Bollinger band, Ichimoku cloud, RSI, Stochastic, and Elliott wave theory. Trader A won’t enter position unless majority of those signals are giving signs simultaneously relatively at the same price and time. On the other hand, trader B only considers trendline and moving averages. If only one of the two gives a signal, trader B enters immediately. Which trader would be more successful? Even though entry rate is low, trader A would be able to secure higher RR ratio and win-rates because the trends and price action zones that trader A has deducted through TA are more reliable than those deducted by trader B. As mentioned, Confluence Zone is an area where multiple technical evidences overlap at the same price or time period. In TA world which is 2-dimensional, a price action zone would be expressed with a dot, a line or a box. When multiple indicators signal certain trends and PRZs both in price and time wise, we need to keep our eyes on those coordinates. We as a trader, need to utilize these confluence zones which indicate major price range within certain time period, to design trading setups. The more overlapping elements there are, the higher RR ratio and win-rate we can secure. And this is what makes gambling different from trading. Both of us fight with numbers, but we can control that numbers while gambler cannot manipulate the RR ratios and the win-rates they are given. Thanks for reading my post. I will see you guys next time! Your subscriptions, likes, and comments are the greatest motivations for me to write more posts!
Education
by Tommy_Trader
4
BTCUSDT High Time Frame Oder Block In this section we will discuss what a price action order block is and how it is currently relevant to Bitcoin’s price action. An Order Block is a trade location that has a cluster of price action, creating a liquidity pool. Once price action expands from the region, it automatically becomes support or resistance – hence a block, This area once penetrated will act as a range, causing a period of price action oscillation. The Order Block can be dissected into three sections, the high (resistance), the low (support) and the middle (equilibrium). Whichever region price action breaks from will lead to a continuation or a reversal in the overall trend. In essence, Bitcoin can remain trading in the Order Block before until decisive bottoming or continuation structures are developed. Hope this educational peace helps!
Education
by AzizKhanZamani
The PIK Trading Strategy & Key Lessons for Day Traders!Hey Traders! Happy Sunday! In this video, which ends a little earlier as I didn't know videos have a limit, we go over a few key points, starting from the PIK trading strategy which you guys will hear about much more over the next few days, mindset, motivation and guidance is covered too! When it comes to the PIK trading strategy, we go over the indicators that are used, price action and key levels! The video isn't our best one, but it does have plenty of value and we hope you enjoy it! Thanks and all the best!
OANDA:DE30EUREducation
by PrimedGroup
How to analyze any market from scratch #3Hello everyone: Many of you have asked me to continue making more of these analysing from scratch video, so I have prepared another one here for you today. Not only will we refresh the previous 2 educational videos on this topic, I will go into a bit more details on the confirmation on the lower time frames with multiple examples in the chart. Recall from the previous videos I made, when we want to analyze the chart from scratch, we always start: 1. From the higher time frames (HTF) to identify the impulse/correction phases of the market conditions so we can come up with a possible bias and direction of the current price. 2. Once we have a possible direction and bias, then we go down to the lower time frames (LTF) to also identify the impulse/correction phases which will lead to your confirmation and entry. These are simple steps to follow, based on multi-time frame analysis, top down approach. Many have told me it's not hard to identify the HTF’s impulse and correction, but what can be classified as a LTF confirmation before entry? Let's take a detail look into a few examples: A LTF confirmation is when the price is developing a few more price action structures/patterns that align with your HTF direction and bias. These can be continuation/reversal corrections on the LTF; impulse phases on the LTF that go with your bias on the HTF; multiple corrections within the larger corrections (patterns within patterns)...etc. The more of these LTF price actions you can identify, the more it strengthens your analysis and forecast on the HTF. Thank you Do check out my previous educational contents on this same topic to better learn my approach to analyse any market from scratch. How to analyze any market from scratch #1 How to analyze any market from scratch #2
Education
by jojofang0901
18
What is a breakout? #breakout #Candlestick #TA #Tocademy Hello. This is Tommy. The lecture material I prepared today is a concept that must be well informed by TA(Technical Analysis) traders, especially in recent market where untraditional patterns, price actions and trends, as we call ‘scam moves’ occur all the time. I bet you are familiar seeing retail traders or chart analysts shouting “breakout!”. In order to derive market trends and price action/momentum, we find millions of technical variables such as trendline, channel, Fibonacci retracements, pivot levels, and other indicators, etc. Then we seek for behavior of price action by observing whether these variables are kept valid (not broken) or become invalid as soon as they are broken. Understanding and utilizing this behavior, we make trading decisions by deducting optimal zones to enter position(support/resistance), set stoploss/target price(bottom/top), and statistically giving weights on particular scenarios. In TA world, breakout means that the price has pierced through certain variables. It is commonly known that when the technical factors are broken, additional price momentum is expected towards the direction of the breakout. As the example above, let’s say that we found a falling trendline that are being formed, meaning that at certain point or area, trendline keeps pushing the price down forming LH(Lower High)s. As soon as the price pierce through the trendline, meaning that the trendline failed rejection, we say “trendline is broken above” and can expect more bullish rally. The direction of the trend would be vice versa when trendline under the price is broken below. So, we buy when PA is broken above and sell when PA is broken below. That sounds so simple huh? If it was that easy, everyone would be rich right now. I'm sure most of you reading this post are already aware that it's never easy. Why? It’s simple. In this world, there is no such thing as 100% “breakout”. To put it simply, everything we do based on the technical chart is somewhat relative, abstract, and subjective concept. It’s not like breakout has 100% succeeded, or failed but rather is more like breakout has succeeded in 60~70% chance. In other words, there are more than two possible future cases when we search and utilize breakout behavior. So, we traders need a reliable standard to statistically quantify the ‘degree of breakout’. The most basic way according to the ‘textbook’ is to consider closing price of candlestick firstly crossing the variable. As the price of the candlestick closes above the trendline as case 3, we give a decent weight on breakout scenario. However, case 2 is the one that confuses us every time. This is when the price did pierce through the trendline but closes below, usually leaving a long tail as a trace which sometimes is interpreted as a whipsaw. As soon as this happens, we have to admit that the chances and reliability is definitely lower than the case 3. It might be regarded as a false breakout or a noise if the trend continues afterwards and it might not actually. It’s a 50:50 call I would say. When you encounter case 2, to give you a little tip, try waiting a little more to observe next following candles. If the next following candlesticks keep closing prices below, I would raise the probability that the breakout is a false one. In fact, it is best to just not give any meaning on breakout in case 2. It itself is a risk to confirm whether the breakout is successful, not successfully, or false and thus try not take aggressive trades in this very case. Thank you for reading my posts. Trade Well! Your likes, comments, and subscriptions are the greatest motivations for me to upload more posts.
BITMEX:BTCUSD.PEducation
by Tommy_Trader
192
IMPORTANT ABOUT PRICE ACTIONThe market is constantly in motion and constantly changing. Every new day is different from the previous one. At some point, the market movement stops, the sideways movement begins and people start losing money because they do not know how to switch from one market structure to another. At such moments, newcomers begin to doubt their strategy and blame it for losses, eventually abandoning it altogether. Such actions do not lead to good results. If a trader cannot keep his composure during a loss streak, then the market will beat him every new week again and again. At such moments, you should keep in mind the four truths related to Price Action and Forex trading. These truths can keep you afloat and keep you from going crazy. 1. Price Action is not a "system" Price Action is not a complete trading "system". This should not be forgotten. You cannot mindlessly believe every Price Action signal that appears, as it seems to you, on the chart. You have to think and choose the best entry opportunities. You should be careful, start trusting your intuition, which will start working correctly only when you get enough bumps, that is, gain experience. 2. Does Price Action work? Price Action appeared back in the 18th century, and it worked then, it works now and will work in the future. The thing is that Price Action is based on logical principles that work outside the market. At the same time, do not forget about the losses that are inevitable. Price Action is not the holy Grail. You must be disciplined, be able to correctly understand and use the signals that Price Action gives. Even the best traders have unprofitable positions, while professionals do not allow losses to destroy the entire account. Moreover, profitable positions cover losses, after which there is still money for life! 3. Candles and Price Action Many beginners, having studied the Price Action patterns a little, having learned the candlestick formations, run to trade and lose money. Price Action is not only candle formations, the main strength of Price Action is reading the entire chart and understanding the situation, understanding how the price moved before, how it is moving now and what is likely to happen in the future. You must learn to feel the mood of the market, not be afraid to look at the older timeframes, be able not to lose sight of the big picture. It is the poet who advises trading on higher timeframes in order not to lose sight of the movement of the main trend. 4. Persistence in trading Forex trading is not the easiest activity that requires you to improve yourself every day. If you decide to really become a profitable trader, you will inevitably begin to develop the best in yourself and destroy the worst. Trading will make you a disciplined, stressful person. You will treat losses correctly so that they do not lead you astray. You will take the time to plan not only your transactions in the market, but also your life in general. You will have to start doing all this, because otherwise you will not be successful in this business. Trading is a test of your stamina and mental capabilities. YOU should not go crazy with losses and should not lose your head when making a profit. You should not doubt your strategy at losses, you should analyze. Without all of the above, trading can destroy you and your account. Do work on mistakes, rest when you feel that you are losing control of the situation, develop and analyze removing harmful emotions away. You have to treat trading as a real job – seriously and responsibly, and then you will stop losing and start getting. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
14
PRICE ACTION TRADING | INVERTED HEAD & SHOULDERS PATTERN 🔰 Hey traders, Inverted head and shoulders pattern is a classic reversal pattern. It signifies the weakness of buyers in a bearish trend and a bullish accumulation. ⭐️The pattern has a very peculiar price action structure: Trading in a bearish trend the price sets a lower low and retraces setting a lower high (left shoulder), then the market goes lower setting a new low but instead of setting a new lower high, the price returns back to the level of a previous lower high setting an equal high (head). After that bears start pushing again but with an amplifying bullish pressure, the market sets a higher low and returns back to equal highs setting a new one (right shoulder). 🔔Equal highs form a horizontal structure called a neckline. Once the pattern is formed it is still not a trend reversal predictor though. The trigger that is applied to confirm a trend reversal is a bullish breakout of a neckline of the pattern. 📈Then a long position can be opened. For conservative trading, a retest entry is suggested. Safest stop is lying at least below the right shoulder. However, in case the heights of the right shoulder and head are almost equal it is highly recommendable to set a stop loss below the head level. 🎯For targets look for the closest strong structure resistances. What pattern do you want to learn in the next post? ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
7
What is Flag pattern and how to trade with that?Flag Pattern (Bullish) * One of the most common patterns of price trend continuation is the FLAG pattern. How to identify this pattern? How to use it in trading most effectively?I will cover it all through this post. * The Flag pattern is a type of price pattern in bullish trends. This pattern consists of a strong increase (called a flagpole), followed by a countertrend with two levels of Resistance and Support (called flags). The price forms this pattern after a strong increase. It then breaks out of the Resistance and continues rising, marking the end of the pattern. This is a very common behavior of prices during an uptrend. * After breaking out of the Resistance, the price can retest this new Support. How to open an order : Entry Point : Right after the candlestick breaks out of the Resistance. Stop-Loss : At the bottom of the price channel (the lowest point of the support). Target : At the price whose, from the entry point, the length is equal to the length of the flagpole. * In the future, we will publish other patterns such as Triangle, head and shoulders, wedge and other educational materials 📚 . Please follow our page to be informed as soon as the materials are published. Thank you all for supporting our activity with Likes 👍 and Comments ❤️
Education
by NamchaTa
How to Stay One Step Ahead of the MarketHey Guys! As traders, we always want the sense of being one step ahead of the market. In other words, what's happening with current price should not be of consequence to your trading. It's just another bit of information that's added into your analysis of what will happen next. Now the polar opposite of this situation is chasing the market. Where a trader is reacting to what price is doing currently. After years of trading, one thing I can state with confidence, is that if you're chasing the market and reacting to current price, you won't make it in trading in the long-term. I mean, you may get lucky from time to time, but ultimately you're luck will run out. So the question becomes how does a trader stay one step ahead of the market? At the basic level, if a trader can stop focusing on price "direction", and instead begin focusing how price travels from point A to B, they have a shot at being one step ahead of the market. Let me explain. As you guys know, on the Eur/Jpy pair during the month of February 2022, I was consistently taking short trades as price pulled back to the 132.80 levels. Now this is even if price at the moment of entry was moving up. ( I wasn't focusing on price direction) Instead, I was focusing on "how" price moved from point A(on the chart) to point B.(on the chart) Initially, there was 1 minute strong long strength sparking the explosive move up however, there was even stronger 1h strong short strength confirmed on the lower time frames in the beginning of the 1st range. At this point I was already viewing this pair to be short biased,(I was one step ahead of the market) and even if price continued up, as long as there was no confirmation of further long strength I will continue entering short positions. I was able to confidently take multiple short entries because "how" price was moving from point A to point B was not indicative of a long market. Or like I always say, " The lower time frame's price action wasn't complimenting the higher time frames move up." Then finally, there was further 5 minute confirmation of strong short strength and price began its descent. However, if a trader at this point was basing their trades on "current price direction", they're likely to take long positions on this pullback for a possible next move up. A devasting outcome as you can see. So if you always find yourself on the wrong side of the market, firstly, stop putting value onto current price direction. It is just a result of previous price action. Begin asking yourself, "What is the context of the current price direction". Or even better, learn how to read price to know how price traveled from point A to point B and begin staying one step ahead market. For if you a can do this, perhaps you will have a shot at staying in this game for the long haul. I'm sure you guys have questions! Don't hesitate to ask! I'll gladly help! Have a great day guys! Ken
Education
by TradingForexPriceAction
6
Things you should consider in trading to make it as a career Hello everyone: 6 points I like to share on what you should consider in trading to make it as a career. 1. Trading is not a get rich quick scheme Contrary to what social media, scammers, fakers and fake trading gurus want you to believe, trading is NOT a get rich quick scheme. Those who believe such usually end up over trading, over leverage, blow accounts and give up. (Trading is actually a reasonable method to yield money return. It is how consistent traders make a return on their original investment/deposit with proper risk management, strategies and methods. ) 2. Technical/Fundamental Analysis dont work all the time. Trading ANY sort of strategy, method or style will always have a percentage of failure and losses. Its probability, not right or wrong. The main goal in trading is to make sure you have proper risk management, good Risk:Reward ratio, and look for consistency, sustainability in the long run. (Sometimes traders blame their strategies, method, style, mentor and other things due to their trades not working out. Not trading strategies can yield 100% strike rate, if there is, there will not need any risk management, and anyone trader should get rich) 3.Limit your risk per trade Proper risk management is super crucial to a trader’s success. Many traders often risk way more than their accounts can handle, after all what's 10%-20% of a $100 to many people ? But would you risk 10-20% on a $100,000 account ? and lose $10,000-$20,000 in one trade ? (Too many new traders deposit a small amount of money hoping it can double and double and double. But they often over risk, over leverage the account. The result is it only take a few trades to totally blow the account up.) 4.Must use stop loss It may have worked out for you a few times where you remove your SL, and the price reverses and you close with profits. But what if the price goes against you more and more? Can you stay mentally sharp enough and continue to hold the trade when the losses pile up more and more ? You more likely can not, which will end up resulting in a margin call and/or blow the account. (In the past I had a trader who approached me and showed me his losses on OIL where he removed his SL and price continued to go against him. IT has come to a point where he reaches margin call, and the broker actually open opposite positions to “hedge” his losses) 5. Don’t over analysis and combine multiple trading strategies, methods and style Over analysis and complicating your charts may lead to confusion and is not necessarily efficient. Most trading strategies do work on their own, but when combined with so many other strategies, it creates conflicts, contradiction and confusion for traders. (Often traders combine too many random indicators, S/R, trendlines…etc all on one chart. It makes it hard to analyze, and have a bias of the direction of the market) 6.Always use a top-down analysis approach. Multi-time frame analysis is key. Always start from the higher time frame to the lower time frame. The higher the time frame the stronger and noticeable the price action it is. Understanding a higher time frame can give you a possible direction and bias. While the lower time frame will be your confirmation and entry. (Have seen many new traders jump onto the 1 min chart to trade. While there are successful scalpers with proper years of experiences, good trading psychology and emotion, most newcomers will not be able to handle the stress and pressure from it. ) Don’t give up
OANDA:XAUUSDEducation
by jojofang0901
35
Learn Trend Analysis | Impulse & Retracement Legs 📈 Hey traders, As you asked me, in this educational post we will discuss some price action basics. No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis. You should always know where the market is going; if it is bullish or bearish. One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements. ➖The impulse leg is a trend-following move. It is characterized by heightened movement dynamics and speed. Usually the completion point of the impulse: sets a new lower low in a bearish trend, sets a new higher high in a bullish trend. ➖A retracement leg is a correctional movement within the trend. Its’ initial point is the completion point of the impulse or retracement leg and its completion point might be an initial point of a new retracement leg or of a new impulse leg. Usually, a retracement leg is characterized by a slow zig-zag movement. Usually the completion point of the impulse leg: sets a lower high in a bearish trend, sets a higher low in a bullish trend. Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns. What do you want to learn in the next educational articles? ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9