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Riskreward

I want to share with you some points about Risk ManagementThis topic is so important, that´s why I wanted to share it with you and hope I can reach as much people as possible. Hope it will help some :) I saw in the last years many who crashed their accounts very hard, they lost a lot of money and for some it was very dreadful! It is hard to watch this people how they burn money and bring even his own family in financial danger. That´s why risk management in trading is so heavily important, to keep yourself and your life in balance. May be some will find very helpful, or some will remember this rules again :) I will keep it a bit shorter here as in my book, but the main points are still mentioned! I can´t say it often enough, always keep your rules during trading. Trading is not the way to get rich quick, it is a serious and hard business! It take a lot of time to learn, it requires a lot of patience and it will happen a lot of failures. This failures are even more important than your success! Success will not open up how it will not work, failures will. But let´s talk about risk management! For each investment you have to consider you take for each trade the risk to lose money, that´s why it is mandatory to handle each investment with a good risk/reward distribution. You have to keep in mind, the determined risk/reward is only theoretically and can result complete different. But with knowledge you can dedicate a good entry for your trades to keep your risk as low as possible. Determine important support and resistance levels and think about all situations what could happen and what will you do, if you are going into the red or into the green? Which levels are the best entries and exits? This all will help you to determine your riks/reward ratio. What is the Risk/Reward Ratio? Successful day traders are generally aware of both, the potential risk and potential reward before entering a trade. The goal of a day trader is to place trades where the potential reward outweighs the potential risk. These trades would be considered to have a good risk/reward ratio. A risk/reward ratio is simply the amount of money you plan to risk, compared to the amount of money you believe you can gain. For example, if you think a potential trade may result in either a $400 profit or $100 loss, the trade would have a risk/reward ratio of 1:4, making it a favorable setup. Contrarily, if you risk $100 to make $100, the trade has a risk/reward ratio of 1:1, giving you the same type of unfavorable odds that you can find in a casino. Which ratio should you desire? Like described above, finding trades with high risk/reward ratios (1:2 or higher), will help you maintain higher average profits and lower average losses, making your trading strategy more sustainable. The common suggestion between traders is a distribution of minimum 1:2 ratio. In reality there are often even better ratios available, if you do your technical chart analysis or financial stock analysis. But what should you do if you have to cut losses? We have to place our stop loss right below our support or other important levels we determined before. The purpose is to cut losses before they grow too large. Stopping out of a losing trade can be one of the hardest things for traders to do consistently. However, failing to take stops can result in margin calls, unnecessarily large losses, and ultimately account blowouts. How big should I enter a position? To lower your risk I recommend to think about your size to enter a position. Overall you shouldn´t risk money you need, only deposit money in your broker you can afford. Entering small can be the smartest way to safe your account. I suggest that because of four reasons: 1. You don´t risk to much of your funds and your stop loss should be tight anyway. 2. You can average down if the price is going in the other direction, but consider this option only if you are sure what you are doing. 3. You can buy the dips/pullbacks if the trend is strong and still heading in your desired direction. 4. Your emotional control is stronger if the price movement is heading in the wrong direction. This brings us to the next topic. Should you use leverage? Yes I know, big leverage will give you big gains...but as a beginner you will not have the experience to know which trade has a very big potential or not. Even experienced traders use only a small amount to enter a position and not the whole fund. If you use leverage the losses can be much higher and the problem with that is, if you lose money, your leverage will also decrease significantly and the losses are harder to recover after each loss. So what is the answer of the question, should you use leverage? For beginners we can easily answer: Take your hands of a big leverage! You can so hardly blow up yourself with that tool, it is ridiculous. Your way back into the profit zone will probably take years. But you have to save yourself and after a period of time, a period of taking profits and cutting losses you will gain knowledge until you feel much more comfortable on the market and you understand how trading really works, then you can consider to use leverage. Conclusion: As I said, I want to share only some big points about this topic, simple and understandable, because I think many new investors don´t understand how important that topic is! Safe yourself and have fun in trading and learning! Sincerely, TradeandGrow Trade safe!
Education
by TradeandGrow
3
USDJPY | H1 | UpdateUSDJPY update, looking at USDJPY now based on my initial analysis we can see that the USDJPY tanked as per the initial forecast, there was some volatility during the course of the week due to fundamental events surrounding the USD which also acted as a catalyst towards increasing the overall momentum as we would’ve noticed with today’s NFP announcement. But looking back we can take note that USDJPY created a short term trading range between 144.19x and 144.68x before breaking out of our minor support level at 144.19x then came back to retest that level and confirm it as our new resistance after the announcement of the US ADP Employment Change yesterday before tumbling further down. Today’s NFP announcement acted as a further catalyst pushing USDJPY to break through our initial target and support at 142.8xx & 142.6xx now we’re looking forward to it pushing further down to 141.2xx
Short
by mosa_moshka
🔥 Is Bitcoin Finally Breaking Out? High Volatility SignalBTC is seeing very start of the day, bring it all the way to the top of the range that we've been trading in for weeks now. Every time we broke above 31k, BTC sold off shortly after, so wait for the 4H candle to close above the range to confirm the break out. With all the ETF announcments I'm expecting strong volatility. For the best risk-reward I'm looking at a 39k target, would be surprised if we can break above it. I chose for 39k because it's around the middle of my Elliot Waves analysis range, see below. Stop below the most recent swing low. For higher risk-reward you could place the stop around 30,5k. For a lower risk trade, consider taking (partial) profits around 33k and 35k.
COINBASE:BTCUSDLong
by FieryTrading
13
Educational: The issue with high risk to reward🔶 Introduction A high win rate—that is, the proportion of trades that result in profits—is appealing to many traders. They might believe that being lucrative requires a high win rate, or that it will increase their self-assurance and lessen their tension. A trader's performance may be negatively impacted over time if they have a high win rate, which is not a guarantee that they will be profitable. We will discuss the problem with high risk to reward and win rates in trading in this publication and why they are not the best measures of success. 🔶 Risk to reward and win rate Two ideas that are frequently used to gauge the effectiveness of a trading system or strategy are the risk to reward ratio and win rate. The risk to reward ratio calculates how much a trader is prepared to lose in exchange for a possible gain. A trader's risk to reward ratio, for instance, is 1:2 if they stake $100 in order to gain $200. The win rate calculates the percentage of trades that a trader wins out of all the trades they place. For instance, a trader's win rate is 80% if they win 80 out of every 100 trades. 🔶 Inverse Relationship between Risk to Reward Ratio and Win Rate One would believe that a successful trader should have a high win rate together with a high risk to reward ratio. This isn't always the case, though. In fact, the risk to reward ratio and win rate have an inverse connection, which means that when one goes up, the other goes down. This is due to the fact that the likelihood of achieving a reward decreases as it increases in potential, and vice versa. For example, if a trader aims for a 10:1 risk to reward ratio, they will have to find a very rare opportunity where they can risk $100 to make $1000, which is unlikely to happen often. On the other hand, if a trader aims for a 1:1 risk to reward ratio, they will have more chances of finding trades where they can risk $100 to make $100, but they will also have to win more than half of their trades to be profitable. 🔶 Importance of Positive Expectation Therefore, unless a trader also has a positive expectation, which is the average amount of money they gain or lose every deal, having a high win rate does not necessarily indicate that they are a profitable trader. The risk to reward ratio is multiplied by the win rate, and the loss rate—which equals 1 less than the win rate—is subtracted to determine the expectation. For instance, a trader's expectation is as follows if they have a 2:1 risk to reward ratio and a 60% win rate: Expectancy = (2 x 0.6) - (1 x 0.4) = 0.8 This indicates that they profit by $0.8 every trade on average. However, if their win rate remains at 60% and their risk to reward ratio falls to 1:1, their anticipation changes to: Expectancy = (1 x 0.6) - (1 x 0.4) = 0.2 This means that on average, they make only $0.2 per trade. As you can see, having a high win rate does not guarantee profitability, unless it is accompanied by a high enough risk to reward ratio. 🔶 The Limitations of High Risk-to-Reward Ratio and Win Rate High win rates can also be problematic because they might make traders overconfident and complacent. They might neglect the risks and uncertainties associated with trading because they believe they have discovered a perfect technique or plan that will always work in their favor. A second possibility is that they grow emotionally attached to their winning streaks and worry about losing them, which can lead them to stray from their trading strategy or take unwarranted risks. Furthermore, a high success rate may make traders more susceptible to cognitive errors like confirmation bias and hindsight bias, which can skew their judgment. 🔶 Conclusion It may not be as desirable as it may seem to have a high risk-to-reward ratio and win rate when trading. It does not necessarily imply that a trader is successful or profitable, and it may also have some negatives that adversely impact their performance. For long-term trading success, traders should pay more attention to other elements than only these indicators, such as expectancy, consistency, risk management, and emotional control.
COINBASE:ETHUSDEducation
by ChristopherDownie
3
🔥 ID Breaking Out Of Bear Trend: Huge Potential!ID has been trading bearish for 2.5 months, losing over 75% of its total value in the process. However, it seems that there might be an end to the selling. ID is currently underway of breaking out through the dotted diagonal resistance line. Wait for the 8H candle to close above the line to confirm the break out and scout an entry. Target placed at 1.00, stop below the recent swing low. This trade gives us an amazing 11.6 risk-reward. For a less risky trade you could take (partial) profits around 0.50 or 0.75
Long
by FieryTrading
7
⚖️ How Much You Need To Recover LossesWhen an investment's value fluctuates, the amount of money required to bring it back to its initial value is equal to the amount of change, but with the opposite sign. When expressed as a percentage, the gain and loss percentages will be different. This is because the same dollar amount is being calculated as a percentage of two different initial amounts. 📌The formula is expressed as a change from the initial value to the final value. Percentage change = ( Final value − Initial value ) / Initial value ∗ 100 Examples: 🔹 With a loss of 10%, one needs a gain of about 11% to recover. (A market correction) 🔹 With a loss of 20%, one needs a gain of 25% to recover. (A bear market) 🔹 With a loss of 30%, one needs a gain of about 43% to recover. 🔹 With a loss of 40%, one needs a gain of about 67% to recover. 🔹 With a loss of 50%, one needs a gain of 100% to recover. (If you lose half your money you need to double what you have left to get back to even.) 🔹 With a loss of 100%, you are starting over from zero. And remember, anything multiplied by zero is still zero. As the plot graph showcased on the idea, after a percentage loss, the plot shows that you always need a larger percentage increase to come back to the same value To understand this, we can look at the following example: $1,000 = starting value $ 900 = $1,000 - (10% of $1,000), a drop of 10% $ 990 = $ 900 + (10% of $900), followed by a gain of 10% The ending value of $990 is less than the starting value of $1,000. 🧠 Psychological Aspect: Investors should be able to mentally admit that they have incurred a loss, which is expected in trading. The investor should give some time to heal the process and only keep a close watch on the market situation. Huge losses incurred might disrupt the decision-making skill and stop trading for a few days until the confidence is regained. There should be the right focus to approach the right opportunities, and there should not be any regrets of any loss during trading. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
How to do ration of win/loss in option trading? The ratio of win/loss in trading is an important metric that helps evaluate the effectiveness of your trading strategy. Here's a step-by-step guide on how to calculate and improve your win/loss ratio: 1| Keep meticulous records: Start by maintaining a comprehensive trading journal where you record every trade you make. Include details such as entry and exit points, trade size, and the outcome (win or loss). 2| Determine the number of winning trades: Review your trading journal and count the total number of trades that resulted in a profit. This will be your "number of winning trades." 3| Calculate the number of losing trades: Similarly, determine the total number of trades that ended in a loss. This will be your "number of losing trades." 4| Calculate the win/loss ratio: Divide the number of winning trades by the number of losing trades. For example, if you had 40 winning trades and 20 losing trades, your win/loss ratio would be 2:1 (40/20). 5| Analyze and improve: Once you have your win/loss ratio, assess your trading strategy and identify areas for improvement. Focus on enhancing your risk management techniques, refining your entry and exit strategies, and ensuring proper trade selection. 6| Set realistic expectations: It's crucial to understand that a high win/loss ratio alone does not guarantee profitability. Consider other metrics like the average size of your winning and losing trades, as well as the overall risk-to-reward ratio. Remember, trading is a dynamic process, and ratios can fluctuate over time. Strive for continuous improvement, adapt to changing market conditions, and always prioritize risk management to achieve long-term success in trading.
AMEX:SPY
by A1TradingHub
📊 7 Steps To Plan Your TradingHere are 7 steps to consider before entering a trade. Pick one or multiple options for each step to incorporate into your plan. 🔷 Timeframe: This step involves determining the desired timeframe for the trade, which can vary from day trading on shorter timeframes (m15 to h1), swing trading on intermediate timeframes (h4 to d1), or position trading on longer timeframes (d1 to w1). Choosing the appropriate timeframe helps establish the trade duration and the level of monitoring required. 🔷 Risk Management: This step focuses on determining the level of risk to allocate to each trade. It is recommended to risk a certain percentage of capital per trade, typically ranging from 1% to 3%. This ensures that losses are limited and helps maintain consistent risk across trades. 🔷 Conditions: Identifying market conditions is crucial for trade planning. Traders need to assess whether the market is ranging (moving within a defined price range) or trending (showing a clear upward or downward direction). Understanding the prevailing market conditions helps in selecting appropriate trading strategies and indicators. 🔷 Markets: This step involves selecting the specific financial markets or instruments in which to trade. Traders can choose from a wide range of options, such as equities (stocks), options, bonds, futures or Crypto. The choice depends on individual preferences, market knowledge, and the availability of suitable trading opportunities. 🔷 Entries: Determining entry points is essential for initiating a trade. This step involves selecting entry strategies based on the identified market conditions. Common entry methods include taking advantage of pullbacks (temporary price retracements within a trend), breakouts (entering when price surpasses a key level), or trading news events that can cause significant price movements. 🔷 Stops: Placing stop-loss orders is crucial for managing risk and protecting capital. Traders need to determine stop levels that are strategically placed away from market structures, such as support and resistance levels. This helps minimize the chances of premature stop-outs due to normal market fluctuations while still ensuring that losses are controlled. 🔷 Targets: Setting profit targets is essential for determining when to exit a trade. Traders can choose between fixed targets, where a predetermined price level is identified to take profits, or trailing stops, where the stop-loss order is adjusted as the trade moves in the trader's favor. Both approaches aim to capture gains and lock in profits while allowing the trade to run if the market continues to move favorably. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
🔥 FET Bullish Reversal Trade: Patience!FET has been trading bearish for months. As of a couple of days ago, BTC saw a huge break out which will likely take alts with it. This trade assumes that FET, an early 2023 winner, will move up together with BTC. I'm waiting for the break out through the top diagonal resistance. Once a daily candle has closed above said resistance, we're entering from around that level. Target at the 2023 top for the highest risk-reward. If you're more risk averse, consider taking (partial) profits around 0.30 or 0.40
Long
by FieryTrading
5
Risk Reward Ratio ExpainedThe key to becoming successful as a Forex trader is to find the right balance between how much you risk per trade to achieve the desired profit you are aiming for. This balance needs to be realistic and relevant to the technical strategy you are applying. You need to combine risk reward with your strategy. The risk-reward ratio is simply a calculation of how much you are willing to risk in a trade, versus how much you plan to aim for as a profit target. To keep it simple, if you were making a trade and you only wanted to set your stop loss at five pips and set your take profit at 20 pips, your risk reward ratio would be 5:20 or 1:4. You are risking five pips for the chance to gain 20 pips. The basic theory for the risk-reward ratio is to look for opportunities where the reward outweighs the risk. The greater the possible rewards, the more failed trades your account can withstand at a time. When it comes down to it, it is up to you as a trader to figure out what type of risk-reward ratio you want to use. You should try to avoid having your risk be bigger than your reward, particularly if you are a beginner, but there is no particular ratio that works for all traders. The important thing is that you use a ratio that makes sense for your trading style and for market conditions! I recommend to use 1:2 risk reward ratio. Have a great day 📊
FOREXCOM:XAUUSDEducation
by SanShone
The Power of Risk Management 💪 How Can Being an Average Analyst Lead to Profits? The Power of Risk Management and Risk Percentage Introduction : In the world of finance, where exceptional skills and expertise are often sought after, it may seem unlikely that being an average analyst could lead to profits. However, there is a simple formula that can help you achieve good results despite your average performance. This formula revolves around the concept of risk management, which many of us fail to implement effectively or understand correctly. Moreover, risk percentage plays a vital role in this equation, shaping the number of opportunities available to traders. The Importance of Risk Management and Risk Percentage: In our current field, there are individuals who possess the skills to read charts and build analyses but struggle to use them effectively. On the other hand, some people have the financial means but lack the ability to distinguish between bullish and bearish trends. Somewhere in between is the average individual, whose accuracy may not exceed 50%, but they may still perform better than both of the aforementioned groups. However, it's important to note that having the necessary skills, money, and proper application is a requirement for everyone in this field. Applying the Risk-to-Reward Ratio and Risk Percentage: The key lies in implementing risk management, a concept often overlooked. Let's consider a scenario where you execute 10 trades, with 5 trades reaching their targets and the other 5 hitting the stop-loss. Without proper risk management, you find yourself back at the starting point or, worse, your account shrinks. This highlights the problem that needs to be addressed. Now, let's examine the same performance but with the application of risk management, including the risk-to-reward ratio and risk percentage. By determining the risk-to-reward ratio for each trade and defining a risk percentage, we can significantly impact our results. Understanding the Risk-to-Reward Ratio: The risk-to-reward ratio plays a significant role in determining the potential profitability of your trades. A ratio of 1.5:1 or 2:1 is often considered favorable, but it's important to understand how different ratios can affect your overall trading outcomes. To grasp this concept, let's consider a risk-to-reward ratio of 1.5:1. This means you are risking $1 to potentially gain $1.5. With a 50% accuracy rate, even if you lose 5 trades out of 10, your net gains will exceed your losses. This is because the profits from the winning trades will surpass the losses from the losing trades. Similarly, a risk-to-reward ratio of 2:1 implies that you are risking $1 to potentially gain $2. With a 50% accuracy rate, even if you lose 6 trades out of 10, your net gains will still be positive. The profits from the winning trades will outweigh the losses from the losing trades. Higher risk-to-reward ratios, such as 3:1, offer even greater potential for profits. Even with a lower accuracy rate of less than 40%, you can still achieve overall profitability by allowing your winning trades to compensate for the losses. The Role of Risk Percentage: Risk percentage, on the other hand, determines the amount of capital you are willing to risk on each trade relative to your account size. By defining a specific risk percentage, such as risking 2% of your account on each trade, you establish a predetermined limit on potential losses. This ensures that your losses are controlled and do not exceed a predefined threshold, protecting your overall trading capital. Additionally, the right risk percentage opens up opportunities for multiple trades, increasing your chances of finding profitable opportunities while mitigating the impact of any individual trade that may result in a loss. For instance, imagine you have a trading account with $1,000 and decide to risk 1% on each trade. This means you are willing to risk $10 on any given trade, allowing you to potentially take 100 trades. Alternatively, if you choose to risk 0.5% per trade, you can potentially take 200 trades. It's important to strike a balance between the quantity and quality of trades when implementing the appropriate risk percentage. While having more opportunities can be beneficial, maintaining a disciplined approach and executing trades that meet your predefined criteria and align with your trading strategy is essential. Conclusion: In conclusion, being an average analyst or trader doesn't mean you can't achieve profits in the financial field. By implementing proper risk management, specifically by utilizing the risk-to-reward ratio and risk percentage, you can enhance your results significantly. Learning and understanding risk management is crucial for success in the market. So, embrace this simple formula and take charge of your trading journey, regardless of your initial performance level. Good luck to all. 🙏we ask Allah reconcile and repay🙏
BITSTAMP:BTCUSDEducation
by HamadaMark
3
Gold pennant potentialTrade Idea: Buying Gold Reasoning: • Weekly – Potentially forming a Morning Doji Formation (Bullish) • Daily – Bullish engulfing candle yesterday (Bullish) • 4hr - Price action above downward trend resistance and Ichimoku cloud (Bullish) • 1hr – Forming Bullish Pennant (Bullish) Entry Level: 1964.745 Take Profit Level: 1983.725 Stop Loss: 1959.139 Risk/Reward: 3.39:1 Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis, as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
OANDA:XAUUSDLong
by Signal_Centre
1
Radix XRD/BTCThe only crypto project which I did accumulate during bear market. In time I think Radix has a good change to be bigger than Polkadot and Cardano. I'd suggest you do your own research about them. 31st of july Radix Public Network upgrade from Olympia to Babylon will occur and ready build DEFI apps can move from "tech mode" to the main net, among other things. Noticeable about the weekly chart. 25EMA (yellow ema) which worked as resistance 5 times was flipped, tested and showed some support. 70/30 I'd guess this would hold. Time will tell Let's analyse few things from daily timeframe
Long
by PalenTrade
3
🔥 ONE Bullish Divergence: Local Bottom Set?Like most other tokens, ONE has been selling off for a couple of weeks now. With BTC appearing neutral, it's time to look at these weaker tokens for potential upside. I'm waiting for ONE to break through the 0.01465 local resistance. Once above, we can make an entry from that resistance, targeting the most recent local top of 0.025, with a stop below the most recent lows. This trade that we just constructed has a very respectable risk-reward of 12+, which is very good considering we take a wider stop. You could take partial profits around 0.017 and 0.02 if you prefer a more defensive setup.
Long
by FieryTrading
13
🔥 LUNC Start Of Bull-Run: This Trade Can Make You Rich!LUNC has been trading bearish ever since the September 2021 top, which means that we've been going down over 1.5 years. This perpetual bearish pressure has to end at some point, and this trade is based on exactly that. Since LUNC has finally broken through the diagonal resistance, the bulls have the overhand in the short-term. We are going to assume that the bulls will also regain control in the long-term and that the bottom for the current bear market is finally in. With a target at the current all-time high, we're able to construct a trade with a mind-blowing risk-reward of over 185, which means that for every dollar you risk, you can potentially make 185x amount if this trade will hit it's target, without leverage! Entry placed at previous 4H local top. If you're a more defensive trader, consider moving the stop down to 8300. Also, partial profit targets of 13000 and 21000 will make this trade less risky.
LLong
by FieryTrading
18
🔥 APE Crazy Bullish Divergence: Best Trade Of The Summer!APE has been roughly selling off since the start of the year. This trade anticipates that the selling is over and that the bottom is in for the time being. The idea is that the massive bullish divergence on the price vs RSI will cause a huge uptick in bullish pressure, further reassured by a bullish long-term BTC and stock market. When we place the stop below the current daily low of 2.99 and a target of 6.40 (the year to date high), we can create a trade with an insane risk-reward of almost 26. This can potentially be one of the best trades of the summer. Based on your preference you can take partial profits around 3.50 and 4.60
Long
by FieryTrading
11
Key Levels are Magic 🪄 Create only the Best Risk/Reward Ideas!Someone recently asked me if the zones I draw on the chart is an indicator. This speaks to the amount of experience and level of competence that is easy to forget about. My ability to spot key level's and price areas on the chart is not something that is acquired overnight. It's a culmination of trial and error over the years and a loss of a significant amount of cash. It came at a large cost. The Latter is not necessary to understand the best key level's and price areas to trade off. Something that I recall over the years is the fact that I was never Self-Conscious about looking like a fool. We are all fools when we begin a new endeavor. I never hesitated to share my analysis with my mentors. Feedback can be quite painful but if you make it a habit, then it will return unto you by the tenfold. Take this zone (27,136$ ) which was our 4Hr Support zone. I Say "was" because there was once a time when the 4Hr timeframe respected it as a Support area on May 28th. It is now characterized as a 4Hr S/R Zone because we have seen multiple candles clearly close below it.. and it could, and I say could because there is no guarantee in the markets. It could act as a Resistance zone now and facilitate the distribution of orders as we continue our short term descent down to our next Key Level -- Weekly Level 26,770 $. If we arrive at the weekly level we will most likely have a reaction. A general rule of thumb to go by in the markets as a Price Action Trader - The Higher Timeframe the key level, the more probable it is that price will offer a good Risk/Reward trading idea off that level. The only guarantee is that there are good Risk - Reward Ideas and bad RR Ideas. So I might as well use my knowledge of the best price areas to create only the best Risk/Reward Ideas. For example, I will only trade off the 4Hr timeframe and Timeframes above that ( I have found this to be a good rule in the Forex market). I will only take trades that in which I Risk 1 to earn 3. In that way my win percentage may only be as good as 30%, yet after paying commissions/spreads to the intermediary, I earn a profit. It is important to note that the monthly candle is closing in 2.5 Hours. Th Monthly candle is closing bearish and this may cause volatile price swings as position traders and Institutions manage their trades. It seems that we have accumulated a significant amount of liquidity after the market was pushed up to 28.5K because look at the daily timeframe. The market didn't hesitate all that much to quickly drop back and retrace a majority of the gains. As we move into the next monthly candle, we may very well go to create a bottom wick first as the current monthly candle is closing bearish. This is reasonable argument. Idk what are your thoughts? Please comment below.
COINBASE:BTCUSDShort
by ShrewdCatfx
Fantom Faces Potential 60-80% Summer Price Drop Based on HistoryRepeating Patterns Signal Potential for the Cryptocurrency "Fantom" to Experience Rapid Price Drops Again: A Shorting Opportunity with Short-Term Profit Potential. This article displays the observed recurrence of significant price dumps in FTM, presenting a potential golden opportunity for shorting. Traders may consider capitalizing on the anticipated price decline to strategically buy FTM at the bottom for short-term gains. Please note that this analysis does not constitute financial advice but reflects the author's current trade strategy. **The Foundation has been selling FTM in the past several days, adding up to the millions. This could also be an indicator.** Legend Horizontal Lines: Red: Represents potential support that is highly likely to be breached. Orange: Indicates support that is still likely to be breached, but with lower probability than red. Yellow: Suggests a probable bottom. Green: Suggests a buying opportunity for FTM if the price falls below the Yellow horizontal line. Trend Lines: White: Refers to repeated Descending Triangle patterns observed after significant price pumps. If these patterns break downward, historical data suggests a potential freefall, resulting in a potential downside ranging from 60% to 80%. Yellow channel: The Yellow channel, established in 2021, may offer support for FTM in the near future, potentially leading to a return to the channel. Yellow Trend line: Beginning in 2020, this trend line could potentially act as support for FTM if the trend continues to unfold.
BINANCE:FTMUSDShort
by marcusnft
2