Riskreward
EURUSD IDEA LONG/SHORTEurusd is currently on the bull side of the table,but as we see a hs pattern forming we could possibly see a reverse down,lets see how its going to play out this time,risk menagment,risk to reward are the things u should always keep in mind,and also how to enter and exit the trade,whats the way u entered the trade,its end of March so it could be volatility increasing for any pair,good luck to all traders!
Diamond Bottom | 27% move possibleDirexion Daily CSI China Internet Index Bull 2X Shares forms bullish "Diamond Bottom" chart pattern
"Diamond Bottom" chart pattern formed on Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB:NYSE). This bullish signal indicates that the stock price may rise from the close of $50.19 to the range of $61.00 - $64.00. The pattern formed over 25 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation.
The Diamond Bottom pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks a significant reversal to a new uptrend.
Continuation Wedge (Bullish) | 30% move possibleInvesco Dynamic Oil & Gas Services ETF forms bullish "Continuation Wedge" chart pattern
"Continuation Wedge (Bullish)" chart pattern formed on Invesco Dynamic Oil & Gas Services ETF (PXJ:NYSE). This bullish signal indicates that the stock price may rise from the close of $4.85 to the range of $6.00 - $6.30. The pattern formed over 16 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: After a temporary interruption, the prior uptrend is set to continue.
A Continuation Wedge (Bullish) represents a temporary interruption to an uptrend, taking the shape of two converging trendlines both slanted downward against the trend. During this time the bears attempt to win over the bulls, but in the end the bulls triumph as the break above the upper trendline signals a continuation of the prior uptrend.
XAUUSD : Trading Gold with Harmonic butterfly patternOANDA:XAUUSD
Hi trader's .. i Hope you all are winning good profit from ,market and if not than no worry i am available for you help and assistance
As you can see perfect Harmonic pattern visible on chart
it's a bearish butterfly pattern , after completion of D leg market gives an 61.8 % retracement
Our target fully Hit , it's a 70 % accurate pattern , I have done 5 year's back testing on it
Market now on side way's breakout any side will tell the movement of gold
OIL SHORT RE-ENTERAfter being stopped out by a marginal higher high I've now re-entered a short with SL just above 74. Looking to profit from this one as I am confident that OIL will pull back.
Pennant (Bullish) | 27% move possibleDirexion Daily 20+ Year Treasury Bull 3X Shares (based on the NYSE 20 Year Plus Treasury forms bullish "Pennant" chart pattern
"Pennant (Bullish)" chart pattern formed on Direxion Daily 20+ Year Treasury Bull 3X Shares (based on the NYSE 20 Year Plus Treasury (TMF:NYSE). This bullish signal indicates that the stock price may rise from the close of $9.02 to the range of $11.00 - $11.50. The pattern formed over 9 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to be resuming a sharp rally after taking a brief pause.
A bullish Pennant pattern occurs during a dynamic market rally, representing a brief period of indecision before running off again in the same direction. The pattern consists of two converging trend lines with diminishing volume, and is confirmed when the price breaks through the upper boundary to resume the advance.
Pennant (Bullish) | 10% move possible"Pennant (Bullish)" chart pattern formed on iShares 20 Year Treasury (TLT:NASDAQ). This bullish signal indicates that the stock price may rise from the close of $106.40 to the range of $115.00 - $117.00. The pattern formed over 8 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to be resuming a sharp rally after taking a brief pause.
A bullish Pennant pattern occurs during a dynamic market rally, representing a brief period of indecision before running off again in the same direction. The pattern consists of two converging trend lines with diminishing volume, and is confirmed when the price breaks through the upper boundary to resume the advance.
gold analysis - 27 mar 2023salut salut, comment allez vous? ;)
my analysis is a follows...
- on higher timeframes such the daily and the weekly market has been in a range and has formed a double top on those time frames
- from last week thursday market respected a level of major resistance and was then bearish ever since
- the bearish move has broken out my upward trendline and market is currently at the support of the range
- what i will be doing now is waiting for a break of that support/neckline of double top then a restest for me to go short
- my stop will be above the breakout candlestick then take profit at the next major level of structure
and lastly if my edge happens i am taking the trade and then wait to see what happens
RISKOMETER Based on Your Trading Style ⚠️
Hey traders,
In this educational post, we will discuss the relation of risk to your trading style.
1️⃣ High Frequency Trading (HFT)
It is a complex algorithmic approach that is used to operate on second(s) time frames.
Such a style is considered to be the riskiest one.
With a very high frequency of order execution and sophisticated strategies, it requires a very high level of experience and proper software and hardware for successful operations.
2️⃣ Scalping
It is a manual trading style with operations on minutes time frames.
With the average holding period ranging from minutes to hours, scalping requires a high degree of attention and constant charts monitoring.
Being one of the most profitable trading styles for retail traders, scalping involves an extremely high risk and mental load.
3️⃣ Day trading
The form of speculation in which the traders attempt to make profits within a single trading day.
Occasionally, however, day traders may hold their positions overnight.
Day trading is considered to be slower than scalping, with the trade execution on hourly time frames.
Slower pace drastically reduces risks also limiting the potential gains.
4️⃣ Swing trading
It is a style of trading that is aimed to make profits on swing moves, with an average holding period ranging from days to weeks.
4H time frame is the lowest time frame where swing traders usually operate, and a daily time frame is usually the highest one.
The operations on higher time frame dramatically reduces the noise and degree of manipulations, making that style of trading relatively safe.
5️⃣Investing (Position Trading)
Trading / investing style aiming to make long-term profits.
The average holding time of a position trader may expand to years.
In comparison to other trading styles, investing generally produces the smallest gain. That is, however, compensated by extremely low risks.
Correct understanding of relations between trading styles and potential risks is crucially important for a selection of an appropriate style for you.
Shorter is the holding period and operational time frames, higher is the risk, but higher are the potential gains.
You should pick the style that fits your risk-tolerance and expectation.
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Building Your First Trading Plan | Step By Step Guide
📖What is a trading plan?
A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours.
📚Why do you need a trading plan?
You need a trading plan because it can help you make logical trading decisions and define the parameters of your ideal trade. A good trading plan will help you to avoid making emotional decisions in the heat of the moment.
✳️TRADING PLAN CREATION STEPS:
1️⃣Outline your motivation
Figuring out your motivation for trading and the time you’re willing to commit is an important step in creating your trading plan. Ask yourself why you want to become a trader and then write down what you want to achieve from trading.
2️⃣Decide how much time you can commit to trading
Work out how much time you can commit to your trading activities. Can you trade while you’re at work, or do you have to manage your trades early in the mornings or late at night?
If you want to make a lot of trades a day, you’ll need more time. If you’re going long on assets that will mature over a significant period of time – and plan to use stops, limits and alerts to manage your risk – you may not need many hours a day.
It's also important to spend enough time preparing yourself for trading, which includes education, practising your strategies and analysing the markets.
3️⃣Define your goals
Any trading goal shouldn’t just be a simple statement, it should be specific, measurable, attainable, relevant and time-bound (SMART). For example, ‘I want to increase the value of my entire portfolio by 15% in the next 12 months’. This goal is SMART because the figures are specific, you can measure your success, it’s attainable, it’s about trading, and there’s a time-frame attached to it.You should also decide what type of trader you are. Your trading style should be based on your personality, your attitude to risk, as well as the amount of time you’re willing to commit to trading.
4️⃣Choose a risk-reward ratio
Before you start trading, work out how much risk you're prepared to take on – both for individual trades and your trading strategy as a whole. Deciding your risk limit is very important. Market prices are always changing and even the safest financial instruments carry some degree of risk. Some new traders prefer to take on a lower risk to test the waters, while some take on more risk in the hopes of making larger profits – this is completely up to you.
It is possible to lose more times than you win and still be consistently profitable. It's all down to risk vs reward.
5️⃣Decide how much capital you have for trading
Look at how much money you can afford to dedicate to trading. You should never risk more than you can afford to lose. Trading involves plenty of risk, and you could end up losing all your trading capital (or more, if you are a professional trader).
Do the maths before you start and make sure you can afford the maximum potential loss on every trade. If you don't have enough trading capital to start right now, practise trading on a demo account until you do.
6️⃣Start a trading diary
For a trading plan to work it needs to be backed up by a trading diary. You should use your trading diary to document your trades as this can help you find out what’s working and what isn’t.You don’t only have to include the technical details, such as the entry and exit points of the trade, but also the rationale behind your trading decisions and emotions. If you deviate from your plan, write down why you did it and what the outcome was. The more detail in your diary, the better.
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What do you want to learn in the next post?
nas100 analysis - 24 mar 2023- on the weekly we are bullish due to market breaking out of major resistance earlier this year around jan 23rd
- and then the market went on to form a new higher low point around the previous lower high point which was broken
- now we are currently at the high high point and market showed signs of respecting that level during the last week but has held it's bullish momentum this week and i see it breaking out the higher high
- down onto the daily market has been in a range for 3 days but today's daily shows some buying pressure
- currently waiting for the range on the H1 to breakout to the upside to go long, i am leaning more towards being bullish also because on lower timeframes market is forming HH'S and HL's
- if it breaks to the downside i'll revisit my analysis and make a decision from there
- tp and sl are as shown on the chart
God bless :)
Megaphone Bottom | 20% move possibleDirexion Daily Semiconductor Bull 3X Shares forms bullish "Megaphone Bottom" chart pattern
"Megaphone Bottom" chart pattern formed on Direxion Daily Semiconductor Bull 3X Shares (SOXL:NYSE). This bullish signal indicates that the stock price may rise from the close of $16.61 to the range of $19.60 - $20.30. The pattern formed over 16 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The recent broadening action tells us that trading has been out of control, but a breakout on the upside suggests we're starting a more decisive uptrend.
With its broadening price swings, the Megaphone represents a market that's unstable and out of control. It typically consists of two successively higher highs between three lower lows, and the reversal signal occurs when the price breaks up above the second peak (the highest high) as a sign of a more decisive bullish move.
RISK MANAGEMENT STRATEGIES There are several risk management strategies that can be used to help mitigate potential losses and increase the chances of success in any investment or trading endeavor. Here are a few common risk management strategies:
Diversification is an essential risk management strategy that involves spreading your investments across different markets, asset classes, and securities. The goal of diversification is to reduce the overall risk in your portfolio by minimizing the impact of any single investment or market on your portfolio.
When you diversify your portfolio, you spread your investments across different asset classes such as stocks, bonds, and commodities. You also diversify across different markets, such as domestic and international markets, and across different sectors, such as healthcare, technology, and consumer goods.
By diversifying across different asset classes, markets, and sectors, you can help balance out potential losses in any one area. For example, if you have all of your investments in the stock market, you are vulnerable to a significant loss if the stock market experiences a downturn. However, if you have some investments in bonds or commodities, those investments may perform well during a market downturn, helping to offset your losses in the stock market.
Additionally, diversification can help you take advantage of opportunities in different markets and sectors. For example, if the stock market is experiencing a downturn, other markets, such as commodities or international markets, may be performing well. By diversifying your investments, you can take advantage of these opportunities and potentially improve your overall returns.
It's important to note that diversification does not guarantee a profit or protect against loss, but it can help reduce the overall risk in your portfolio. However, diversification requires careful planning and ongoing management. You should regularly review your portfolio and make adjustments to ensure that your investments remain diversified and aligned with your goals and risk tolerance.
Diversification is a critical risk management strategy that can help reduce the impact of any single investment or market on your portfolio. By spreading your investments across different markets, asset classes, and securities, you can help balance out potential losses and take advantage of opportunities in different areas.
Setting stop losses is a vital risk management strategy that involves setting a predetermined price point at which you will sell a security to limit potential losses on any given trade. Stop losses are commonly used by day traders and other active investors to protect their portfolio from large drawdowns and minimize potential losses.
The concept of a stop loss is relatively simple. When you buy a security, you set a price point at which you are willing to sell the security if the price drops to a certain level. This level is known as the stop loss level. If the security's price reaches the stop loss level, the security is sold automatically, limiting your potential losses.
The main benefit of using stop losses is that they allow you to manage risk effectively. By setting a stop loss, you limit the amount of money you can potentially lose on any given trade. This can help prevent large drawdowns and protect your portfolio from significant losses.
Stop losses are also valuable because they help you avoid emotional trading decisions. When you have a predetermined stop loss level, you can take the emotion out of trading decisions. This can help prevent you from holding onto losing trades for too long, which can result in even greater losses.
However, it's important to note that setting stop losses is not foolproof. In fast-moving markets or markets with low liquidity, a stop loss order may not execute at the desired price, resulting in losses greater than expected. Additionally, setting stop losses too close to the market price may result in the order executing prematurely, potentially missing out on gains.
Setting stop losses is an important risk management strategy that can help protect your portfolio from significant losses. By setting a predetermined price point at which you are willing to sell a security, you can limit potential losses and avoid emotional trading decisions. However, it's essential to use stop losses carefully and adjust them as needed to ensure that they are aligned with your goals and risk tolerance.
Position sizing is an important risk management strategy that involves determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. Position sizing is critical because it helps you manage the risk in your portfolio and avoid overexposure to high-risk positions.
The idea behind position sizing is to ensure that the amount of capital you allocate to each trade is proportionate to the level of risk involved. For example, if you're taking on a high-risk trade, you'll want to allocate less capital to that trade to limit the potential losses. Conversely, if you're taking on a low-risk trade, you may allocate more capital to that trade.
Position sizing can be calculated in various ways, but the most common method is to use a percentage of your account balance for each trade. For example, if you have a $100,000 account and you decide to risk 2% of your account on each trade, you would allocate $2,000 to each trade.
By carefully managing position sizing, you can limit the impact of any single trade on your portfolio. If you allocate too much capital to a single trade, you run the risk of losing a significant portion of your portfolio if that trade goes wrong. On the other hand, if you allocate too little capital to a trade, you may miss out on potential gains.
Position sizing is also essential for avoiding overexposure to high-risk positions. If you have too much capital allocated to high-risk trades, you run the risk of suffering significant losses if those trades go wrong. By carefully managing position sizing, you can ensure that you have a well-diversified portfolio with appropriate levels of risk.
Position sizing is a critical risk management strategy that helps you manage the risk in your portfolio by determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. By carefully managing position sizing, you can limit the impact of any single trade on your portfolio and avoid overexposure to high-risk positions.
The risk-reward ratio is an important risk management tool that can help you make more informed trading decisions. The ratio measures the potential return on investment against the amount of risk involved in a particular trade. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses.
The risk-reward ratio is typically expressed as a ratio of the potential reward to the potential risk. For example, if you're considering a trade where the potential reward is $2,000 and the potential risk is $1,000, the risk-reward ratio would be 2:1. A favorable risk-reward ratio means that the potential reward is greater than the potential risk.
By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success. This is because you're only taking on trades where the potential reward outweighs the potential risk. This means that even if some trades don't work out, you can still make a profit if the majority of your trades have a favorable risk-reward ratio.
One of the benefits of the risk-reward ratio is that it helps you avoid emotional trading decisions. By focusing on the potential reward relative to the potential risk, you can take the emotion out of trading decisions. This can help prevent you from taking on trades with too much risk or holding onto losing trades for too long.
It's important to note that a favorable risk-reward ratio doesn't guarantee success. Even trades with a high potential reward relative to the potential risk can still result in losses. However, by focusing on trades with a favorable risk-reward ratio, you can limit potential losses and increase your chances of success over the long run.
The risk-reward ratio is an essential risk management tool that measures the potential return on investment against the amount of risk involved. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses. It's important to use the risk-reward ratio in conjunction with other risk management strategies to ensure that you have a well-diversified and balanced portfolio.
Staying informed is an essential risk management strategy for day traders. It involves keeping up-to-date with the latest news and developments in the market, both on a macroeconomic level and for individual securities. By staying informed, traders can identify potential risks and opportunities and adjust their trading strategies accordingly.
There are many ways to stay informed as a day trader. One of the most important is to keep an eye on financial news sources, such as Bloomberg, CNBC, and The Wall Street Journal. These sources can provide valuable insights into market trends, company news, and other factors that can impact your trades. Many day traders also use social media, such as Twitter and Reddit, to stay informed about the latest news and trends in the market.
Staying informed also means staying up-to-date on changes in regulations, economic indicators, and other macroeconomic factors that can impact the market. For example, changes in interest rates, trade policies, or fiscal policy can have a significant impact on market performance. By staying informed about these factors, traders can adjust their trading strategies accordingly and make more informed trading decisions.
In addition to staying informed about the market, traders should also stay informed about their individual securities. This means monitoring earnings reports, company news, and other developments that can impact the price of a particular security. By staying informed about individual securities, traders can make more informed decisions about when to buy, sell, or hold a particular security.
Staying informed is an essential risk management strategy for day traders. By staying up-to-date on the latest news and developments in the market, traders can identify potential risks and opportunities and adjust their trading strategies accordingly. Staying informed involves monitoring financial news sources, social media, macroeconomic factors, and individual securities to make more informed trading decisions.
Overall, effective risk management involves a combination of these and other strategies, as well as careful planning, discipline, and a commitment to a sound trading strategy. By using these techniques and remaining focused on your goals, you can better manage risk and increase your chances of success in any investment or trading endeavor.
STAY GREEN
Alot of evidence to be Fearful. [ 1.05479 ] 🔊With price action evidence showing us of great sell pressure on risk assets. With Evidence of a renewed bullish strength on safe haven assets..
With evidence of institutions exhibiting bouts of worry and uncertainty. When the Enemy flinches, you have already won the battle. I like buying safe haven assets during this
time of higher than average inflation. The Financial system showing signs of weakness. Everyone doubting crypto. Countries and Groups releasing plans of creating a digital currency. Creating their own currency.
I struggle to be optimistic on the economy. GDP and production seeing sacrificed at the alter , firsthand. Anyways enough said, looking lower here.
Potential Fakeout on EURUSD at 1.074 Daily Zone 🤖 EU. Still favoring sells on Daily/Weekly timeframe. My bias will change if Daily/Weekly Closes solid above this zone 1.074. This is a Fakeout Setup Bearish. Trading off Daily Zone 1.074.
Big Breakdown on FTSE 100/ UK 100After ATH for the FTSE100, the development of bearish divergence within a rising wedge has occurred.
This bearish pattern has broken down now and I AM SHORT at the current levels.
I am looking for the price to come down to 7700 where I will take some profits. Followed by 7600, 7400, and finally 7000
I don't have a stop loss in place as I think it could put in another confirmation high just sub 8100, which would still keep me bearish. I will close the position if a bullish edge develops
gold analysis - 13 mar 2023i hope all you great traders are doing well!
here are my observations on gold...
- at the market open of this new week, a gap was formed and since open price has been around the 1887 resistance zone
- on the H4 we can see 4 candlesticks respecting that zone and showing signs of a bearish move
- a consolidation zone was formed so a break of this zone will show us the direction in which the market will move but i am strongly bearish at the moment but we will see what happens
- currently waiting for a break of a intraday support zone on the M15 and a retest for me to short gold
- my tp will be at the 1866 price level but i will monitor how market reacts to the support of the consolidation zone
- like with every other trade there is no 100% guarantee that it will play out accordingly
USDCAD LONGWe are currently looking for buying opportunities on USDCAD. This is because the pair has become bullish on multiple time frames.
We also see a breakout of a daily time frame trendline. When we look left, we can see the pair has been largely bullish
but in recent weeks and months we have seen a lot of correction and sideways movements. Could this be the trendline
breakout that might send USDCAD higher? Only time will tell. We will be looking to enter this trade and hold the position
for the next 3 to 4 weeks at 2% risk per trade.
BAJAJAUTO bullish move possible..
BAJAJAUTO bullish move continuation possible..
Multiple Confluence Points:
1. Demand Zone Reversal
2. Channel Continuation
3. Double Bottom Breakout & Retest Done
4. Break of Market Structure (Trend Changed)
How to survive in the market for the long-term?
In the market, regret is a frequent word. Many people face the complex investment market and often feel fear, hesitation, and regret, whether it's before buying, after buying, after selling, or just watching without buying. How to avoid this phenomenon? The fear, hesitation, and regret are largely due to not knowing how to manage positions and follow the crowd. Often pursuing high probability profits results in the opposite.
Risk management is an unavoidable issue when it comes to this. Whether you are a financial master or an individual investor, the importance of risk management is paramount. To relax and operate in the market, you need to face your current situation, make correct judgments on the profit and loss ratio, determine your operating frequency and position management, and give yourself correct psychological guidance.
Everyone's personality is different, and their risk tolerance and trading styles are also different. There is no strategy that is 100% accurate, but if you want to survive in the market for a long time, you need to control risk. Don't be afraid of losses. Losses are inevitable, but the key is how much loss you can tolerate. This is the core of risk management. For small losses, we need to prepare ourselves psychologically. This is a link in risk management. Don't rely on luck. The losses brought about by a lucky mentality are incalculable.
About 70% of the time in market fluctuations is in oscillation, and only about 30% of the time is in a unilateral surge or decline. Therefore, accumulating small victories is the magic weapon for long-term success. Always wanting to go all-in and make a big move at once may result in missed profits due to not exiting in time. No matter what state you are in now, I hope I can bring you a little bit of help!
s&p 500 analysis - 03 mar 2023hope all you traders are doing great! here are my observations of the s&p...
- so for two days (thursday and wednesday) the market was at a level of support, and price tried to breakout of this support level (on lower time frames) but broke back in to show that it has been respected
- the rejection of yesterdays daily candle are seen as an inverse head and shoulders on the H1
- yesterdays candle closed off bullish, and with a lot of momentum seen by the long body
- and it broke through an intraday level of resistance 3968.71 which is now our support, but price has already retested that level on the london open
- so now i am currently waiting for my peach resistance to get broken and i will go long on the retest of that zone
- but i could be wrong this is just what I THINK WILL HAPPEN ;)
