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Psychology

Price Action & Psychology - Pullback, MTFAHello ! Key points : Pullback after over-extension Fading volume, downtrend losing steam Engulfing on higher volume Wide-range candles defining a strong upward movement I like pointing out the fact that stocks hold on to certain historical support zones. Traders and investors tend to remember them well, as you can see below : The general trend is "bullish", meanwhile the temporary trend is "bearish" (correction/pullback). The fact that we saw the volume fade means that the downtrend is running out of steam. In fact, the engulfing pattern we see, coupled with a higher volume on the green day, confirms the theory that buyers are taking control back, i.e. the primary trend might be about to resume. Now, on the weekly chart, we spotted that old support zone. And this is what the hourly chart looks like : Pullbacks can be seen on any timeframe. It seems like that support we defined previously, still matters. Because stocks never move straight to the upside, we can expect a pullback on the hourly chart. This will be the signal we're waiting for. Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer. ***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***
NASDAQ:VVPRLong
by UnknownUnicorn6734025
Can a Strategy be bought?To be successful as a trader, you have to understand that this activity is a continuous battle for survival. If you don't think like a warrior, you will have a very short life as a trader. More than eighty percent of retail and intraday traders will kill their accounts in their first three months. The most successful traders learn the painful and costly rules of survival in the markets through trial and error. The word "strategy" comes from the ancient Greek term stratēgía ("office of the general, command, generalate"), from stratēgós ("the leader or commander of an army, a general"), from stratós ("army") + ágō ("I lead, I conduct"). In other words, it is a matter of "thinking like a general". The most important book on this subject, the Sunzi Bingfa , poorly translated as "The Art of War", deals with planning and strategic analysis. The fact that this book deals with strategy, not war, explains why its methods are perfectly applicable to the planning of market operations and to any other activity that requires foresight and analysis. According to its author, the Chinese general and philosopher Sun Wu , known as Sunzi (Master Sun) or Sun tzu, success is not for the strongest or the most aggressive, but for those who best understand their situation and what their alternatives really are. By studying and understanding the strategic framework proposed by Sunzi, you will be able to analyze almost instantaneously any competitive situation in the markets, detect opportunities and make appropriate decisions. This contribution and the following ones are a tribute to the millenary wisdom of this classic work and a gift to those novice or expert traders who, like me, were defeated before the markets for not having a Strategist mentality. Dario van Krauser Strategists Trader
CME_MINI:NQU2020Education
by SunziTrader
4
RUB / USD Symmetrical triangle. Coronavirus. Manipulation On a global scale, after a pulse of 140%, a symmetrical triangle began to form for 6 years. Which on a very symbolic date was broken up. Below I will describe and in the screenshots I will show what's what. On the chart, I showed areas of potential price halt. The stop or continuation of the upward movement will depend on the reaction of the price to these zones. Fixing the price above a certain zone will contribute to the continuation of the uptrend and the collapse of the Russian economy. The situation that is developing with the "crown" and the measures that are planned to be implemented will not affect the ruble exchange rate properly. What did not seem to be reality yesterday, tomorrow may become a reality that must be accepted for what it is. The target of working out the triangle in the global is about 64%, but you need to understand that if the price is fixed in this zone, then the probability of continuing the upward movement and working out the goals of the flagpole 666 pennant is 140%. Fantasy? Yes, but in 2014, no one believed that in such a short time, the ruble / dollar exchange rate would rise by 140%. You need to be prepared for everything. Also, the target zone 104-113 of the triangle can act as a strong resistance, which can stop the further depreciation of the ruble. Everything very much depends on how the situation in the world will develop further on a global scale and what measures will be taken to achieve their target. Unfortunately, at the moment Russia is a completely led territory with an imitation like in all countries of freedom of choice and action. The financial scam that has been happening in Russia since the default of 1998, of an unimaginable scale and impudence, can very painfully hit the well-being of ordinary citizens of the country again. What disappeared, in one moment, may turn from the ghost of the past into the present. And it turns out the dead was always alive, only alive for the masters. This can greatly affect the ruble exchange rate in the picture, but very negatively on the welfare of ordinary citizens as always. Because while the cow brings milk and the villagers are sleeping, they milk it to exhaustion. But this is not customary to talk about and notice. All because of the inertia and "darkness" of society. Potential target. Triangle target 64% Ascending Pennant 140% 1) Naturally, as expected on 01/13/2020 (18), the price touched the support of the global symmetrical triangle, which took 6 years to form and showed a price of 60.891 (6.18). The process has begun. Thinking will understand. Money is not the main value in life. Sometimes a time comes when they have no meaning. 2) 6 03 2020 (13) the price approached the resistance of the triangle. 67.4 22 (13.6) 13 01 2020 - 9 03 2020 40 days (22 (13) .4) 2) On 9.03.20, an impulse of 10.22% (1.22) was committed. 9 03 2020 - 4 04 2020 20 days (13.7.2) 3) This is for working in a local trend. Outlined very important dates, which are very likely to affect the ruble to the dollar and not only. Pay attention to the numbers. Money at some points cease to be relevant. Entrance to the long at the breakthrough of the resistance line of the local canvas of the symmetric triangle (red line). Entering the short at a large percentage in my opinion in such a difficult time for Russia should not be considered, unless of course you are a scalper. 4 04 2020 - 18 04 2020 - 22 04 2020 18 days (666) - 4 + 18 + 22 = 44 !!! -12! I warned about what is happening in the world many months ago. The Internet is not a place for free information. Soon your “anonymity” will knock on every home. But many really wanted this, well, it was not long to wait. "New money" against which the "states" fought so "and the banks will become a reality for you too." The "crown" and some other factors will help this happen in a forced manner. Do not experience the illusion, you were led to think in black and white. You were bought by greed, freebie and inertness to what is happening around you. Everyone is used to talking, complaining, but doing nothing. Many people have lowered their intelligence. People stopped thinking on their own. Open your eyes and wake up finally. The world is different. As it turned out, people got the informational virus of mental disorder. There were very few healthy people. Also, many play the role of "patients" so that they are not touched and so as not to differ from the crowd. Mass psychosis in order to keep the peak of the wave confirmed by reality locally in one of the closed sectors. It was a European country, not some kind of Africa. So that there is an association among Europeans and Americans with a human disease in a civilized society. Italy - Crown - Rome - World - Rome - World - New Rome (world). They showed how quickly China dealt with the problem. And how Italy does not cope. Wait for the introduction of new technologies in China, so as not to "get sick". There they have long been tested and approved. Code-6-19 is primarily a background for promoting a new world order and adopting laws that could not have been promoted in a calm time. You, with your hysterical herd behavior, help this to happen. This is just the beginning. Nothing really happened yet, we are in the very first soft stage, and society has already turned into a controlled, selfish herd, thanks to the manipulation of the self-preservation instinct for our own sake. The meaning of the “crown”, as I think, is not only in the collapse of markets, but in the change of the financial system and the world order itself. Dividing countries into sectors, stopping the production of goods, the movement of raw materials and goods, printing money and distributing them in the future as “resting people” will bring down markets even more. As recent events in the world have shown there is no concept of statehood, the world has long been global. Nationality will be destroyed, the world needs an average digital slave, not a person’s individuality. Everywhere everything happens on symbolic dates and according to one algorithm of action. He who does not obey on time will receive gifts rather. The division of countries into sectors, the closure of large problem cities and restrictions on movement in them will prevent people from joining in who disagree with what seemed impossible to translate into reality in an adequate, mentally healthy society. Divide and rule. Will oppose the crown - will come to you. The city will close, curfews will be introduced in connection with the disease. It will not be legal to protest. Unwanted "get sick" when testing for the disease. With many overly dangerous infectious diseases, the body is not given to relatives due to the possibility of the spread of a dangerous infection. 1720- The bubonic plague. 1821 - Cholera. 1920 - Spanish. Coincidence? Thanks to selfishness, greed, inertness to events, the “importance of the person”, self-preservation for my own sake, “I am like everyone else” and most importantly - the absence of thinking independently, such events occur in the world. This is controlled chaos 11. This is only the beginning, and the crowd is already in the stage of psychosis. This is all thanks to information technology and the replacement of human values ​​in the direction of animal instincts. In the later phases when everything will be real, your psyche will not stand the "show" and you will really go crazy or eat each other for your own sake. It is said figuratively, but the essence of this does not change. _________________________________________________ EUR / RUB Feb 23 I also did the EUR / RUB trading idea several days before the price increase at the lowest entry point when confirming support and the zone, I think this is also relevant. Symmetric triangle. Trends Reversal zones. The situation is now. 2 target achieved + 32% Money is not the meaning of life! There are more important values. Do not turn into controlled animals for money! A system13 is a complete manipulation of those who are in the system and do not understand this. Your unconscious and conscious behavior is the conscious planning of your behavior by other personalities. And this is not philosophy, this is reality. It has always been, is and will be.
by SpartaBTC
5
The Art of Zen Trading1. Create an awareness of your body. 2. Pour happiness into everything you do. 3. Detach. "Connected to everything, attached to nothing." 4. Set process-based goals. 5. Breathe, be aware of the present v the illusion. 6. Everything is temporary. 7. Trading is skillset building. 8. Mistakes and failures are a requirement. 9. The fight is the real reward. 10. You yourself have to engineer your own peace, happiness, and success--moment by moment, action by action.
Editors' picks
Education
by IAmTheDisciplinedTrader
19
Price Action & Psychology - Pullback after breakout, TrendHello ! Key points : Significant support Pullback after breakout Wide-range candles in the direction of the trend Indecision + volume increasing As I pretty much always do, I went back in time looking for major support and resistance zones. To do that, I switch to a line chart and I take a look at the 1-year timeframe, it's way easier to define the major zones. This is what it looks like : Getting back to our candlestick daily chart, we can see that we've had a breakout : very wide-range candle and spike in volume. Stocks never go straight "to the moon" and after breaking out that much, they usually need to "rest" or "breath". It started by declining quite fast (see the wider red candles below resistance). Then it started slowing down, we can ultimately say that the counter-(down)trend is losing power. In other words, sellers were in control, but buyers are coming back in, since the major trend is an uptrend, as the trendline shows. We saw some more "fights" between buyers and sellers during the last 3 trading session. What tells us that the uptrend is pretty strong, are the wide-range candles we see going in the direction of the trend. Finally, on the last trading session, we have a clear price rejection, with increasing volume. My entry will be around the last close and I'm using the ATR (based on 9 days) indicator to get an idea of the average volatility of the stock. This helps me defining a stop loss. I'm using the previous resistance as the first target for my trade. Considering the setup here, I can imagine the stock price breaking that resistance and making a higher high, but because I can't predict it, I'm going to take some profits at my first target, and then I'll work out what to do with what I've got left from there. Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer. ***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***
NYSE:WOWLong
by UnknownUnicorn6734025
Psychology of OTHER People in the Market Matters More Than YoursMorning Traders - The next in our series of education posts is going to focus solely on Psychology. specifically regarding the psychology of OTHER people in the market. Once you nail this topic its going to give you a huge edge on the market. Any trader is always looking whether the next few price swings are going to be bullish or are they going to be bearish? That is the essence of trading - If you know the next few price swings are going to be bullish then it makes it easy to make money right?! Once you have this identified then you simply just need to time your entry, the safest way to do that would be to be watching for a short term pullback against your bias of where the price swings will be headed. Its important that when looking at these price swings, you watch HOW the price moves, don't need to concern yourself with any chart patterns or candlesticks, but ask yourself as you watch the price move, is the price moving with strength or weakness? If price is pulling back from your bias with weakness then this is an opportunity to place your entries and wait for the price swings you have anticipated. If price pulls bask with strength then it could be time to consider you bias again and stay on the sidelines. The real key when analysing price action both in the long term price swings you see and in each movement within those price swings is the psychology of everybody else that is trading in that market with you. Much has been written and spoken about regarding making sure you own mindset and psychology is right within trading but I personally feel understanding how other people are feeling within the market is worth so much more. Once you understand how other people are feeling, their emotions etc then its becomes easier you predict their actions. One of the most powerful emotions we feel that affects our decision making is fear. Im sure everyone can easily anticipate the actions of a fearful person, so we just need to translate that into the chart. So start watching where are people getting trapped into bad positions? When are they feeling fearful that they made the wrong trade? When are they praying for the market to turn around? These are the traders you want to target because by their nature these are weak traders and likely unprofitable ones, you want to watch for points in the market where these traders know they have got it wrong.. So you should be looking to take the other side of their trades and profit from their mistakes. The other major aspect of fear you should look for in markets is FOMO. Fear of Missing Out. You see this type of emotion ALL the time in markets, its essentially the market equivalent as when you see people run for the tube / underground as the warning beeps have started and doors are closing... People who have been sat watching the market for a while suddenly see it moving in one direction and start running to enter the trade as quickly as they can... the psychology of this is that they will likely enter with the wrong position size, they haven't analysed the new market conditions that were different from when they were watching the market before, and most importantly their risk management has now gotten out of control. When you see after an already strong price movement that it starts to slow down momentarily and then rockets again in the same original direction - This is typical of FOMO trading. Its wise when you see this to start thinking about places some trades opposite to these traders. So when people say you should analyse price action - this is the most powerful way to do that. Its not about head and shoulders patterns, its not about doji candles or anything else you hear spoken about... Its simply about human emotions and how they are expressed within the charts. To be successful you need to start identifying the moments and points in the chart where you know people will buy after you have already brought, or where they will sell after you have already sold.
Education
by JoelWarby