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EURAUD: Technical Outlook & Your Trading Plan Explained🇪🇺 🇦🇺 EURAUD is currently retesting a recently broken horizontal support. To sell the market with a confirmation, pay attention to a bearish flag pattern formation on a 4H time frame. Bearish breakout of a support of the flag and a 4H candle close below that will give you a strong bearish signal. A bearish continuation will be expected at least to 1.6465 level then. ❤️Please, support my work with like, thank you!❤️
Short
by VasilyTrader
1
Highs and Lows Move Together: A Key Insight for Retail Traders█ Understanding Daily Highs and Lows in Trading When it comes to trading, understanding the dynamics of daily price movements is essential. Daily highs and lows, which represent the highest and lowest prices of an asset within a single trading day, are more than just numbers—they provide valuable insights into market behavior, volatility, and potential trading opportunities. █ What Are Daily Highs and Lows? Daily Highs: The highest price an asset reaches during a trading day. Daily Lows: The lowest price an asset hits during the same period. Price Range: The difference between the daily high and low, which gives a measure of the day's volatility. These metrics are crucial for traders because they not only reflect the volatility but also highlight the turning points in the market. A wide price range indicates high volatility, while a narrow range suggests the opposite. █ Insights from Research Research shows that daily highs and lows are not just random occurrences—they are statistically significant and can be forecasted with reasonable accuracy. For example, models that analyze the relationship between daily highs, lows, and the price range can outperform simple predictions based on past prices alone. ⚪ Highs and Lows as Important Levels: The daily high is the highest price that an assets reaches in a day, and the daily low is the lowest price. These points are important because they often act like barriers in the market. If the price approaches the daily high, it might struggle to go higher, like hitting a ceiling. If it can’t break through, it might start to fall back down. Similarly, when the price gets close to the daily low, it might find support, like hitting a floor, and start rising again. ⚪ Market Reactions: When the price reaches these highs or lows, it often reacts strongly. For instance, if the price hits a high but then drops, it suggests that traders think the price shouldn’t go higher, leading to a possible reversal. On the other hand, if the price keeps pushing against a high and finally breaks through, it could signal the start of a new upward trend. In simple terms, the highs and lows act like important checkpoints in the market. Watching how prices behave around these levels can give traders clues about what might happen next. █ Key Findings ⚪ Daily Highs and Lows Move Together: The study found that the highest and lowest prices of oil each day are connected and tend to move together over time. This connection means that if one changes, the other usually does too. For retail traders, this suggests that tracking these levels can provide important clues about where the market might be heading next. ⚪ Price Ranges Indicate Volatility: The difference between the daily high and low (known as the price range) is a strong indicator of how volatile the market is. A large range means the market is very active and prices are swinging widely. For traders, this could mean more opportunities to profit, but also more risk. Conversely, a small range indicates a calmer market with less movement. ⚪ Better Forecasting Models: The study shows that by understanding the relationship between daily highs, lows, and the price range, traders can use more accurate models to predict future prices. These models outperform simpler methods that many traders might be using. For retail traders, this means there are better tools available that can help them make more informed decisions and potentially increase their chances of success. █ Daily Highs and Lows Move Together Daily highs and lows are connected and influence each other. This means that the highest and lowest prices of an asset during a trading day tend to move in relation to one another. Imagine you're tracking the price of crude oil. On Monday, the highest price of the day was $80 per barrel, and the lowest was $75 per barrel. On Tuesday, the price went up, with the high being $88 and the low being $79. What the research found is that these daily highs and lows tend to follow a pattern or move in sync with each other over time. The increase in both the high and low suggests that overall market sentiment is positive, and traders are willing to pay more, even at the lowest prices of the day. █ What It Actually Means ⚪ Connection Between Highs and Lows: If the daily high price increases, the daily low price often increases too, and vice versa. This doesn’t mean they are the same price, but rather that they tend to trend in the same direction. For instance, if the market is generally moving up (bullish), both the daily high and low prices will usually increase from one day to the next. ⚪ Why They Move Together: This movement happens because the factors driving the price up or down (like supply and demand, market sentiment, or external news) impact both the high and low of the day. If there’s strong buying pressure, it will push the daily high up and also raise the floor, or daily low, as sellers adjust their expectations. █ What It Means for Retail Traders For new traders, understanding and using daily highs and lows can be a game-changer. These metrics offer a glimpse into market sentiment, help identify trading opportunities, and can form the foundation of robust trading strategies. By incorporating the analysis of daily highs and lows into your trading routine, you can make more informed decisions and improve your chances of success in the markets. Understanding that daily highs and lows move together can help you predict market trends. If you see a pattern where both the highs and lows are steadily rising, it’s a sign that the market is in an uptrend, and you might decide to buy, expecting prices to keep climbing. Conversely, if both are falling, it might indicate a downtrend, suggesting it’s a good time to sell or avoid buying. █ Reference He, A.W.W., Kwok, J.T.K., & Wan, A.T.K. (2010). An empirical model of daily highs and lows of West Texas Intermediate crude oil prices. Energy Economics, 32(6), 1499–1506. ----------------- Disclaimer This is an educational study for entertainment purposes only. The information in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell securities. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on evaluating their financial circumstances, investment objectives, risk tolerance, and liquidity needs. My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
OANDA:BCOUSDEducation
by Zeiierman
1
USDCHF: Your Trading Plan Explained 🇺🇸🇨🇭 USDCHF looks quite oversold after the yesterday's bearish rally. The price is stuck on a key daily support at the moment. My confirmation to buy the pair will be a bullish breakout of a neckline of a double bottom formation on a 4H time frame. A 4H candle close above 0.885 will confirm a violation. A bullish continuation will be expected at least to 0.8874 then. If the price sets a new lower low lower close on a 4H, the trading setup will become invalid. ❤️Please, support my work with like, thank you!❤️
Short
by VasilyTrader
3
Best Price Action Pattern For Beginners to Start FOREX Trading There are a lot of price action patterns: wedges, channels, flags, cup & handle, etc. If you're just starting out your Forex journey, it's natural to wonder which one to trade and focus on. In this article, I will show you the best price action pattern for beginner s that you need to start forex trading. I will share a complete trading strategy with entry, stop and target, real market examples and useful trading tips. High accuracy and big profits guaranteed. The pattern that we will discuss is a reversal pattern. Depending on the shape of the pattern, it can be applied to predict a bearish or a bullish reversal. Its bearish variation has a very particular shape. It has 4 essential elements that make this pattern so unique: A strong bullish impulse, A pullback and a formation of a higher low, One more bullish impulse with a formation of an equal high, A pullback to the level of the last higher low. Such a pattern will be called a double top pattern. 2 equal highs will be called the tops , the level of the higher low will be called a neckline . Remember that the formation of a double top pattern is not a signal to sell. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Its violation is an important sign of strength of the sellers and increases the probabilities that the market will drop. Once you spotted a breakout of a neckline of a double top pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest support. Stop loss will lie above the tops. A bullish variation of a double top pattern is called a double bottom. It is also based on 4 main elements: A strong bearish impulse, A pullback and a formation of a lower high, One more bearish impulse with a formation of an equal low, A pullback to the level of the last lower high. 2 equal lows will be called the bottoms , the level of the lower high will be called a neckline . The formation of a double bottom pattern is not a signal to buy. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Once you spotted a breakout of a neckline of a double bottom pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest resistance. Stop loss will lie below the bottoms. Double top & bottom is a classic price action pattern that everyone knows. Being very simple to recognize, its neckline violation provides a very accurate trading signal. Moreover, once you learn to recognize and trade this pattern, it will be very easy for you to master more advanced price action patterns like head and shoulders or triangle. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
How to pick trades in different market conditionsIn the video I look at two different markets and the resultant setups which yielded the prime trades. The two markets had to be approached in different ways, especially early in the session. I look through the price action on the DOW and then the Nasdaq. The DOW proved to be more clear cut and a trend style approach while the Nasdaq was very choppy and warranted a range or reversion style approach to the trades. Still, both were tradable and produced some good scalps although the action had to be recognised early. ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !! ** If you like the content then take a look at the profile to get more ideas and learning material ** ** Any Comments and likes are greatly appreciated **
CBOT_MINI:YM1!Education
by TradeTheStructure
2
USDCHF: Your Trading Plan Explained 🇺🇸🇨🇭 USDCHF is currently testing a key daily horizontal support. To buy this structure with a confirmation, pay attention to an expanding wedge pattern on a 4H time frame. Your confirmation to buy the pair will be a bullish breakout of the resistance line of the wedge. A bullish continuation will be expected at least to 0.9155 then. If the price drops below the underlined green area, the setup will become invalid. ❤️Please, support my work with like, thank you!❤️
Long
by VasilyTrader
1
Great Short Trades on the DOW as price dumped on FOMCThe DOW was sold lower as traders looked to lock in some profit. By planning ahead and assessing recent price action, you were able to steer clear of the early rally and focus on Sell Setups to take advantage of the selloff. In the video review, I talk through the previous sessions price action and why I was looking for selling opportunities. I then discuss the Price Action on the trading charts and the momentum plays that led to the Sell Entry setups!! ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !! ** If you like the content then take a look at the profile to get more ideas and learning material ** ** Any Comments and likes are greatly appreciated **
CBOT_MINI:YM1!
by TradeTheStructure
Winning Trades thanks to a clear Price Action readIn the video I talk through my trades on the DOW and reasoning for the executions. I aim to take some trades early in the session if they setup and we had a few good setups in a generally range bound market. I like to initially plan out the key levels using higher timeframe charts and then trade using the 5 min and 1min charts. By using a fast and slow MACD, I can define the short term momentum moves and then trade around them using the price action setups. ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !! ** If you like the content then take a look at the profile to get more ideas and learning material ** ** Any Comments and likes are greatly appreciated **
CBOT_MINI:YM1!
by TradeTheStructure