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Psychology

EURJPY| STILL BULLISH FOR MEAfternoon Traders, We have clear uptrend momentum, Id be very interested in seeing how price action responds to the last quarterly highs, (dark blue ray line) At the moment price action is clearly indicating to me further moves to the upside, signified by the large buying that is coming in every time price action tries to push lower, I've highlighted my area of interest this is where i will be setting my order long if price action confirms it. if we start showing signs of trend reversal this will usually be significant by large bearish candles, I will of course flip my bias and I will seek an entry to short this pair. do you agree? let me know. Thank you.
Long
by NK008
EURUSD| GO LONG OR GO SHORTGood morning Traders, price action is proving resilient and is suggesting it may create a deeper channel, will it complete the channel and push out with a strong bearish close or will it just continue ascending upwards, is the main question I will be asking. In my view of price action, I see further upside because we still have some buying power within the markets, until we have a real sell off and push away, I have highlighted areas of interest but we just may continue in this corrective range. nonetheless I will be waiting for price action to confirm. let me know your thoughts.
by NK008
2
AUDSUD| GOING FOR THE WIN?Good morning Traders, this pair is an interesting one, Price action is clearly pushing up but I seeing wicks at the tops of the candles indicated by the red arrows, this too me suggests the push up is not sustainable and we may likely see a reversal from a higher level. alternatively we could have some very strong bullish candle closes over the next few hours therefore suggesting to me that we have good momentum to the upside and if we do i will be onlooking for a potential entry, given that price action confirms it. let me know your thoughts.
by NK008
Price Action & Psychology - Double bottom reversalHello ! Key points : Double bottom, cluster of candlesticks on first bottom Narrow range + low (relative) volume Buying pressure on downtrend I'm defining the resistance (previous support) based on the second gap (Gap2), on the distribution area and on the clear 3-candle swing high. To clarify, above the drawed resistance (previous support) we had a distribution period, followed by a move to the downside (see the spike in volume and the wide-range candles). The selling formed a cluster of 3 candlesticks, defining a pretty strong support. The last selling wave, that formed the second bottom, is pretty indecisive, the volume is low, there's always some buying pressure and the candles are narrow, it's following the path of least resistance, i.e falling from it's own weight. Weekly chart : From a weekly perspective, the rejection and the gap up stress the irrationality of the move. PS : I'm defining my stop loss based on the gap up (Gap1) that happened after the move to the downside from March. 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:GDYNLong
by UnknownUnicorn6734025
NVAX Long - $150 Target?I've been following NVAX since price was at $12. Fundamentally they have one of the most promising COVID vaccines and their Nano Flu shot beat Sanify's flu shot, whos been a market majority holder in that aspect. Technically, we've tapped that $150+ zone 8 out of the last 9 fast rises over since the company IPO'd in 1996. Each of the rises have been driven by pandemic viruses..ie, swine flu, bird flu, H1N1, etc. We have 4 days until the quarterly candle closes. If we close strong, we'd of closed above the coral, and momentum and RSI are correlating. I think we will see a short term sell off at the psychological $100 level. How much? I could see $80-$85 be a good rebuy zone to push price up to t $125 then $150. Buyers at $80, will probably be looking for a double on their investment which would put price at $160. Let me know what you think!
NASDAQ:NVAXLong
by allout06
7
Price Action & Psychology - Pullback, accumulationHello ! Key points : Accumulation zone Halfway retracement Volume uptrend > volume downtrend Currently, I feel like there's an accumulation going on. In fact, we have some clues that buyers were strong : 1) we see several spikes in volume 2) the bodies of the candlesticks grew wider the more the trend advanced As you can see, we've had a little 1-candle pullback at first. Then, the trend resumed, the stock encountered a resistance (previous support on the left side) and pulled back halfway before accumulating. Obviously, from a realistic point of view, the stock could go any way from here. But, as always, we're trying to stack the probabilities in our favor. During the accumulation, the volume was relatively "normal", except for that spike I highlighted. The thing is, despite the high volume, the price didn't move. This tells us that sellers are not able to win the fight against buyers (since we're pulling back from an uptrend movement, buyers are still dominating). 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:MODLong
by UnknownUnicorn6734025
Price Action & Psychology - Trend following, pullbackHello ! Key points : Wide range candles in the direction of the trend Pulling back after over-extension Significant support area After a period of consolidation, the double bottom ignites the new trend. We notice how the wide range candles support the trend. On the hourly chart, there's a break of the trendline, a retest and a failed attempt to push prices down. 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.***
ALong
by UnknownUnicorn6734025
Price Action & Psychology - TAZ, Relative StrengthHello ! Key points : Pullback in Traders Action Zone Significant support zone Volume increasing Buyers threatening downtrend ("inverted hammer") For more information about the Traders Action Zone, please take a look at my previous analysis ("Related ideas"). The correction yesterday provided us with quite some opportunities. Just as on the idea I linked, we can assume that this stock is pretty solid. By comparing yesterday's overall market correction (near -7% on the Dow Jones) with the price action on individual stocks we find out which stocks are "strong" and which ones are "weak". The stock pulled back into the TAZ and formed an "inverted hammer". In other words, buyers are threatening sellers. The stock gapped down, got bought up and came back down before consolidating (on high volume ) around the opening point (hourly chart). 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.***
QLong
by UnknownUnicorn6734025
Price Action & Psychology - Traders Action Zone, Relat. StrengthHello ! Key points : Significant support zone : That zone has been significant since the stock market crash in March. It acted as resistance, aswell as a small consolidation area (02/06 - 03/06). It is showing relative strength : Considering yesterday's correction of the overall market, the behavior of individual stocks tell us how strong they are. Price rejection + volume : They day before yesterday, the stock gaps down a lot, triggers stop-losses and panic selling, but eventually, it got bought up (5 or 15 min chart). Traders Action Zone : To define that zone, I'm using the 30 EMA and the 10 SMA . Basically, the TAZ is pretty useful when stocks are trending. It defines a zone where the general trend resumes after a "breath-taking" pullback. Traders Action Zone As you can see on the left side of the chart, it is considered that whenever the 10 SMA is above the 30 EMA , we look for opportunities to go long and vice-versa. After some time, the price over-extends and retraces in the TAZ. Obviously, it should be combined with other signals, in this case what gives us a signal is the relative strength of the stock, aswell as the signficant zone. Here's an example on SPY : 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:EBLong
by UnknownUnicorn6734025
I find it funny how big moves get always called manipulation 🤑Yesterday, there was a big dump 📉. Who would have expected that? Well --- you could say that after the battle, everyone is a general. But in this case, there were some decent clues which were, perhaps, ignored? I looked at the situation retrospectively. After the rally, a small retracement hasn't managed to establish strong bottom support yet to bounce even further. Below was a long area of low volume - who would put buy orders there? Stop-loss squeeze enabled ✅✅✅. So it burst through some levels which were weak anyway and was put to an end near another. I am strongly against excusing loses with "manipulation", evil 😈 Wall Street or whatever. It is always better to take responsibility for any loses you might have and ask yourself what you could have done better . Blaming events outside of your control won't make you a better trader. A retrospective analysis, on the other hand, does possess such a chance. Good luck!
BYBIT:BTCUSD.PEducation
by OrcChieftain
Price Action & Psychology - Breakout, pullbackHello ! Key points : Double bottom ignites the breakout Breakout from the significant confluence area on high volume Pullback halfway Low volume + indecision As you can see on the chart, that 3.00 zone is important. The stock made a new low and encountered that old level (circled on the left side) as a resistance a few times. The breakout from that zone, considering the spike in volume indicates a psychological shift. The stock retraces halfway, due to profit-taking. That is reinforced by the fact that the volume shrinks a lot. 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.***
FLong
by UnknownUnicorn6734025
Price action & Psychology - Ascending channel,breakout,pullbackHello, Key points : Ascending channel : clear uptrend ignited by the double bottom Breakaway gap + breakout : psychological shift causing the breakaway gap, buyers still strong Halfway retracement : after a breakout stocks tend to pullback halfway Previous resistance = support The double bottom ignites a new trend and creates the ascending channel. The stocks makes higher highs, higher lows. Everytime it pulled back from there on, it always retraced halfway (didn't draw it in because the chart would look messy). It makes up for a decent swing up to the swing high where I'll start scaling out. Make sure you keep an eye on the gap on the left side if the stock breaks the resistance. 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.***
TLong
by UnknownUnicorn6734025
5
Price action & Psychology - MTFA, counter-trendHello ! Key points : Significant zone : that confluence area around 7.00 seems to be kind of special, as you see on the left side of the chart, everything prices dipped below, buyers started getting aggressive and eventually caught up. Bearish momentum fading : the downward movement seemed to be pretty strong, but again, it lost all it's momentum once that 7.00 area reached Trendline break on the hourly chart : on the hourly chart, we see a trendline break after some consolidation, prices might retest The stock makes lower highs. Selling pressure is building up. It is very unlikely that we're going to break through that confluence zone considering how fast sellers lost control here. I'm going to monitor this area for an entry (on the hourly chart), either after the stock retests the trendline break or once it breaks the resistance around 7.50. 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.***
ALong
by UnknownUnicorn6734025
2
Price action & Psychology - Possible first pullb. after breakoutHello ! Key points : The double bottom ignites the breakout Strong breakout, wide candles + high volume to confirm it Breakaway gap, psychological shift Significant support zone (left side of the chart in light blue) Here we are trading another first pullback after breakout pattern. I personally do not short, but this could be a decent short setup from here. The focus here, is on the pullback. As we can see, the double bottom ignites the breakout from the that trading range. On the left side of the chart, we see that confluence zone, which kept being an important level while the stock was trading in a range the last few weeks. The breakout is strong, it is made of the 2 wide range candles. Notice on the second candle, the rejection, considering the lower wick, we can assume that some people sold, but clearly got caught up because the momentum was way too important. Also, the breakaway gap, signals a shift in people's conviction about the stock. If people are willing to bid higher in pre-market, they must have the conviction that the stock is cheap. Now, we know that whenever a stock breaks out of a trading range with such a momentum, it must retrace. What causes this retracement are breakout and momentum traders taking profits. On the left side, circled in orange, you can see that "unsignificant" gap. What I started noticing is that often times stocks get rejected from such gaps, i.e they act as a resistance. What I expect the stock to do within the next few days : Maybe some upside today caused by too optimistic people (PS : It's already up a few points pre-market) A drastic decrease in volume A move to the downside Usually, such pullbacks retrace halfway from the breakout. I'll start monitoring lower timeframes once prices come down around the 61.8% or 50% Fibonacci. I'll swing the leg up and start scaling out at the swing high. Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer. PLEASE , if you got any VALUE out of this analysis, make sure you hit the LIKE BUTTON . Thank you ! ***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.***
M
by UnknownUnicorn6734025
⚡Trader's psychological stages in the market⚡👋🏻👋🏻👋🏻Hello, dear dear friends! 💓 Today I would like to share with you ⚡ Trader's psychological stages in the market ⚡ 💥 OPTIMISM. It all starts with a positive outlook on the market situation, which leads the trader to open a deal. Trader in anticipation of future success. 💥EXCITATION. The market begins to move in the predicted direction. The trader anticipates events and hopes that success is ensured. 💥TREMBLING. The market continues to move in the direction the trader needs, this is a moment of joyful fading. At this stage, the trader is fully confident in his trading system. 💥EUPHORIA. Point of maximum financial risk. Investments turn into quick and easy returns. Trader completely ignores risk. 💥ANXIETY. Oh no, the market is turning around! The first signs of movement appear not in favor of the trader. But he does not notice this and believes that the market will recover and the trend will continue. 💥NEGATION. The expected market recovery did not happen. The trader does not accept what is happening and remains in position. 💥FEAR. Reality dictates its own rules, and the trader begins to realize that he is not as smart as he previously thought. Instead of confidence in success, thoughts begin to get confused. 💥HOPELESSNESS. At this point, all profits are lost. The trader had a chance to take profits, but he missed it. Not knowing how to proceed further, he is trying to do everything to return at least to the breakeven point. 💥PANIC. The most emotional period. At this stage, the trader feels his ignorance and helplessness and is wholly in the grip of the market. The mind is paralyzed, which sometimes leads to meaningless actions in the market. 💥CAPITULATION. The trader has reached the limit of patience and closes the position so as not to increase losses anymore. 💥DISAPPOINTED. After exiting the market, the trader no longer has the slightest desire to enter into transactions. 💥DEPRESSION. The trader begins to blame himself for the stupidity of why he did not close the deal on time. Some choose the right path and begin to analyze what went wrong. Real traders are born precisely at this stage, studying past mistakes and drawing conclusions. 💥HOPE. “I can still do it!” In the end, the trader returns to the realization that there really are cycles in the market. He begins to analyze new opportunities. 💥FAITH. At this stage, the trader restores faith in his future in the market and starts trading again. The stages considered by us well demonstrate how psychology influences trading. 80% of success in the market directly depends on the correct psychological state of the trader. 😉😉And at what stage are you now?🧐 Share in the comments✍🏻 Stay with me💋 Your Rocket Bomb🚀💣 Other my psychological idea👇🏻👇🏻👇🏻
BITSTAMP:BTCUSDEducation
by RocketBomb
33