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A Simple/Consistent Trading Strategy Using AnchorBars For AllI was talking with a friend today and he stated he just wanted something simple and consistent. He stated he was using Weekly, Daily, and 30 Min charts to try to confirm his trade setups. He did not want to swing for trades too often - only when the Weekly, Daily, 30 Min charts aligned. I've build multiple systems somewhat like the one I'm showing you in this video. The trick to managing this system is to avoid consolidation periods. When price settles into an extended sideways range - you want to cut your trading down to almost NOTHING and wait for a more defined trend. Here you go. Simple and easy. If you don't understand AnchorBars, you can learn more on my other TradingView videos. Go Get Some...
AMEX:DIAEducation
by BradMatheny
2
EUR/USD Heading towards 1.095?Current Situation EUR/USD has shown signs of losing traction but remains above the 1.0800 level after peaking above 1.0840, its highest in three weeks. Despite the US Nonfarm Payrolls (NFP) increasing more than expected in June, downward revisions for May and April have prevented the USD from gaining strength. Technical Indicators Relative Strength Index (RSI): On the 4-hour chart, RSI has risen above 70, indicating that EUR/USD is technically overbought. However, this overbought condition does not necessarily signal an imminent drop, as long as key support levels hold. Support Levels: The 1.0800 level, which coincides with the 100-day and 200-day Simple Moving Averages (SMA), is a crucial support. A drop below this level could see the next supports at 1.0760 and 1.0730-1.0740. Resistance Levels: On the upside, the 1.0840 level (Fibonacci 23.6% retracement) serves as interim resistance, followed by the psychological level of 1.0900. Economic Indicators and Market Sentiment Nonfarm Payrolls: The US NFP report exceeded expectations with a rise to 206K, higher than the forecasted 190K, but revisions for previous months and a rise in the unemployment rate to 4.1% have tempered the positive impact. Unemployment Rate: Increased to 4.1%, the highest since November 2021, slightly higher than the expected 4.0%. Average Hourly Earnings: Growth slowed to 3.9% YoY, matching expectations but down from the previous 4.1%. Market Expectations Fed Policy: The CME FedWatch Tool indicates a 25% probability that the Federal Reserve will leave the policy rate unchanged in September. Weak job data could push the USD down further, as markets may price in a September rate cut. Conversely, stronger-than-expected NFP data could lead to reassessments regarding the timing of the Fed’s policy adjustments, potentially triggering a downward correction in EUR/USD. Upcoming Economic Events Fed Chairman Jerome Powell’s Appearance: Traders will look for insights on monetary policy direction. EU and US Inflation Data: Final inflation figures will be released on Thursday, which could impact EUR/USD movements. German Retail Sales and US PPI: Scheduled for next Friday, these data points will provide additional market cues.
Long
by Forex48_TradingAcademy
4
Ultimate Trading Strategy: Reaction to Supply and Demand Levels!🔍 Identifying Potential Buy or Sell Zones: In this step, you need to identify the zones that are likely to react and wait for the price to potentially reach them. ⏳📊 🌟 With the reaction to the first area, a buy trade is activated. 🌟 📝 Confirmations: 📉 Reaction to the expected area – Watch for a price movement hitting our anticipated zone! 🛠️ Formation of a combined hammer pattern – Look out for this powerful reversal signal! 📈 Formation of a bullish engulfing pattern – A strong indicator of upward momentum! 🔍 Trading Tips: 💡 High-risk stop-loss location: 👉 Place it below the candlestick pattern. At least twice the spread to ensure you're covered! 📏🔒 💡 Lower-risk stop-loss location: 👉 Place it below the expected area. Again, at least twice the spread for extra safety! 📏🔒 💰 Take-profit strategy: 👉 Base it on risk management mathematics, such as risk-reward ratios of 2, 4, and 6. 👉 Alternatively, observe reactions to past market areas, especially near important market highs and lows. 📊📈 🎯 Entry point strategies: 👉 Enter at the close of the confirmation candle. 👉 Or, set a limit order around 50% of the confirmation candle for a bigger volume opportunity! 📉📈 🌟 Buying in Two Phases: A Smart and Exciting Strategy! 🌟 🔹 Phase One: When you reach a profit of twice the risk, exit the trade. Why? Because the Asian high has been hunted and the candlestick formed has a long upper shadow. 🌄💹 💡 Analysis: The price hasn’t reached other zones yet and has risen in reaction to the first expected zone. Therefore, we expect a pullback and continued upward movement. 💪📈 So, I’ll place a second buy trade. 🚀💵 🔍 Confirmations for the Second Buy Trade: A double bottom has formed, marked with an X. ❌❌ A small hammer candlestick has swept the double bottom. 🔨 A long positive shadow candlestick has swept the bottom and reacted to a small order block on the left. 🌟 💡 Tips for the Second Buy Trade: Enter at the close of the long-shadowed doji candlestick or place a stop limit order above the long-shadowed doji candlestick. 📉📈 The stop loss should be below this candlestick. 📏🔒 🔹 Phase Two: Next, the price has reached an expected reaction zone from where we expected a price drop. 🌐💡 🔍 Confirmations for the Sell Trade: Reaction to the expected zone. 🔍 An inverse hammer candlestick reacting to the zone. 🔨 💡 Tips for the Sell Trade: The entry point should be in a candlestick with a negative signal indicating a price drop. This hammer candlestick can indicate a decline. 📉🔻 The target can be a reward of 2 or the last price bottom. 🎯💰 The stop loss should preferably be behind the expected zone. 📏🔒 🔥 Important Points!!: Since the price hasn’t deeply penetrated the zones, there’s a chance it might go higher or even mitigate this zone twice, ultimately turning it into a pullback for a further price rise. 🚀📈 Continuing on, the price reached the upper zone area. We expected a price drop from this zone, but it reached at 03:15, which is outside our trading session. However, we could have traded on it. 🔍 Sell Confirmations: The price has reached the expected zone. An inverse hammer candlestick pattern. 💡 Interesting Fact: If you had placed a limit order around the midpoint of the previous two zones, you would have profited by now. So, for this zone, you can also place a limit order around 50% of it. Continuing further, other zones have formed below that could be useful for new trades. ✨ Successful Sell Trade Achieved, Reaching a Reward of 4 Times the Risk. 📉 During the session continuation, the trend line was broken, triggering an upward price pullback. 🔹 Now, at the beginning of the session, we have a new zone, likely a selling order placement area. We're taking the risk on this zone. This time, we can place the trade around 50% of it. 🚀💼 🔥 Alright, what's your take now? 🔥 🌟 Is the price reacting to this level or not? 🌟 🚀📈 or 📉💥 Where are the upper zones located? What do you think? 🤔💬
Education
by mohamadrezaKhorsand
Paper Trading Challenge: Which Strategy Did the Best, Winner is The winner has now been decided! In this thrilling paper trading battle, we put four powerful trading strategies to the test: Harmonics Trading Strategy, Sentiment Trading Strategy, RSAI Blueprint Strategy, and Market Structure Strategy. Throughout this episode, we: Explained the fundamentals of each strategy. Demonstrated real-time application of each trading approach. Tracked and analyzed trades executed by each strategy. Compared performance metrics including win/loss ratio, average return, and overall profitability. Whether you're a seasoned trader or just starting out, this video offers valuable insights into the practical application of these popular trading techniques. Watch till the end to see which strategy emerges victorious and to learn tips and tricks you can incorporate into your own trading practice. 🔔 Don't forget to like, comment, and subscribe for more trading strategy battles and tutorials!
Education
by TruthakaWallStreetakaCookie
USDJPY: Bullish Outlook USD/JPY Analysis 1. Recent Performance Current Trend: USD/JPY trades around 159.70 on Monday, maintaining a bullish bias. The pair is testing the upper boundary of an ascending channel pattern on the daily chart. Japanese Yen Stability: The Japanese Yen (JPY) holds its ground, likely due to verbal intervention by Japanese authorities. Masato Kanda, Japan's top currency diplomat, stated his readiness to intervene around the clock if necessary to prevent excessive movements in the forex market. 2. Technical Analysis Bullish Indicators: The 14-day Relative Strength Index (RSI) is above the 50 level, indicating upward momentum. Surpassing the upper threshold of the ascending channel pattern will reinforce the bullish sentiment, potentially pushing the pair toward 160.32, a major resistance level last seen in April, marking the highest level in over thirty years. Support Levels: Immediate support is at the nine-day Exponential Moving Average (EMA) at 158.42. A breach below this level could increase downward pressure on USD/JPY, targeting the lower boundary of the ascending channel around 155.60. Further support is at the throwback level of 152.80, which could be tested if the lower boundary is broken. 3. Fundamental Context US Dollar Dynamics: The US Dollar Index (DXY) has edged lower due to a decline in yields on US Treasury bonds. However, the downside for the USD may be limited as higher-than-expected US PMI data has delayed expectations for the first interest rate cut by the Federal Reserve (Fed) in 2024. According to the CME FedWatch Tool, the probability of a Fed rate cut in September is now priced at 65.9%, down from 70.2% a week earlier. Yield Differentials: Despite lower US Treasury yields, USD/JPY remains near 160, driven by the large yield differentials. Value investors are deterred by carry traders, suggesting that significant rate cuts by the Fed might be necessary to change this dynamic. The Bank of Japan (BoJ) faces a prolonged period of economic challenges, potentially extending through the summer and autumn. 4. Market Sentiment Verbal Intervention: The Japanese authorities, particularly Masato Kanda, have emphasized their readiness to intervene to prevent excessive volatility in the forex market. This stance provides some support to the JPY. Fed Rate Cut Speculation: Speculation around the timing of the Fed's interest rate cuts has a significant impact on USD/JPY. Delays in rate cuts support the USD, contributing to the pair's current bullish momentum. Conclusion USD/JPY is trading around 159.70 with a bullish outlook, reinforced by technical indicators and the current yield differential environment. Immediate resistance is at 160.32, while support is found at 158.42 and lower at 155.60. The pair's performance is influenced by verbal interventions from Japanese authorities and ongoing speculation regarding the Fed's interest rate policy. Market participants will continue to monitor these factors for further direction.
Long
by Forex48_TradingAcademy
1
GBP/USD: Bearish OutlookGBP/USD Analysis 1. Recent Performance Current Trend: GBP/USD trades in positive territory above 1.2650 in the second half of Monday. Following a strong performance due to upbeat PMI data on Friday, the US Dollar has weakened amid a positive shift in risk sentiment, allowing GBP/USD to extend its rebound. Previous Movements: GBP/USD fell below the 100-day Simple Moving Average (SMA) at 1.2640 on Friday but closed the week above this level, indicating sellers' hesitancy. The Relative Strength Index (RSI) on the 4-hour chart has recovered toward 50. 2. Technical Analysis Resistance Levels: Immediate resistance is at 1.2700 (200-period SMA on the 4-hour chart). Additional resistance is found at 1.2720-1.2730 (Fibonacci 23.6% retracement of the latest uptrend, 100-period SMA) and 1.2800 (psychological level, static level). Support Levels: If GBP/USD falls below 1.2640 and uses it as resistance, the next bearish targets are 1.2600 (psychological level, static level) and 1.2580 (Fibonacci 50% retracement). Market Indicators: Following Thursday's sharp decline, GBP/USD touched its weakest level since mid-May near 1.2620 on Friday. Despite ending the week in negative territory, GBP/USD stages a correction and trades above 1.2650 on Monday. 3. Fundamental Context US Dollar Dynamics: The USD gained strength heading into the weekend after the preliminary S&P Global Manufacturing and Services PMI for June showed robust expansion in the US private sector. Early Monday, the USD stays under modest bearish pressure amid an improving risk mood, helping GBP/USD hold its ground. Upcoming Data: The US economic docket will feature the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Business Index. These are unlikely to trigger significant market reactions, with investors likely remaining focused on risk perception. Market Sentiment: Mixed actions in Wall Street, with Dow Futures up 0.3% and Nasdaq Futures down 0.1%, could make it difficult for GBP/USD to continue stretching higher. 4. Pound Sterling Performance Current Position: The Pound Sterling gains ground against the US Dollar, trading around 1.2650 in early New York session on Monday, rebounding from last week’s sharp sell-off. The upside move in the US Dollar Index (DXY) has paused and struggles to extend above the immediate resistance of 106.00. Economic Indicators: The near-term outlook for the USD has strengthened after the S&P Global PMI report showed unexpected expansion in the manufacturing and service sectors, with the Composite PMI jumping to 51.7. Despite the improved PMI figures, inflation concerns have eased, aligning with the Fed's 2% inflation target. 5. Bank of England and Market Expectations Interest Rate Outlook: Market speculation for the Bank of England (BoE) to begin lowering its key borrowing rates in August has increased after a dovish monetary policy statement. The BoE’s decision to hold interest rates at 5.25% was “finely balanced,” signaling potential rate cuts. Annual headline inflation has returned to the desired rate of 2%, but officials remain cautious about persistent service inflation, which decelerated to 5.7% in May. UK Economic Outlook: The UK’s economic outlook faces uncertainty after the preliminary S&P Global/CIPS PMI report showed unexpected slowing in the service sector, though the Manufacturing PMI expanded faster than expected. The slowdown reflects business environment uncertainty ahead of the general election, causing a hiatus in decision-making. Conclusion The GBP/USD pair is currently trading above 1.2650, showing signs of recovery amid a weakened US Dollar and positive risk sentiment. Technically, the pair faces immediate resistance at 1.2700 and has support at 1.2640 and below. Fundamentally, the outlook is influenced by US PMI data and BoE's interest rate expectations. The market will continue to monitor risk sentiment and upcoming economic indicators for further direction.
Short
by Forex48_TradingAcademy
1
EUR/USD Recovery: Navigating Key Resistance Amid Mixed SignalsEUR/USD Analysis 1. Recent Trend Recovery Trend: EUR/USD is showing a recovery momentum, approaching 1.0750 after closing the previous week in negative territory. Improved Risk Sentiment: The improved risk sentiment hampers USD demand, aiding EUR/USD's rise. 2. Technical Analysis Moving Averages: On the daily chart, EUR/USD is below all its moving averages. The bearish 20 SMA crosses below the 100 and 200 SMAs, all in the 1.0780/90 price zone. Technical Indicators: The technical indicators are slightly higher, moving away from oversold levels but still far from their midlines. Short-Term Scenario: The short-term picture shows increasing buying pressure. The EUR/USD pair is above the 20 SMA, while the longer moving averages maintain their bearish slopes above the current level. Technical indicators aim higher around neutral levels but struggle to surpass their midlines. 3. Key Levels Support: 1.0705 1.0660 1.0615 Resistance: 1.0755 1.0805 1.0845 4. Fundamental Context USD Pressure: The US Dollar is under mild selling pressure ahead of Wall Street's opening, giving up modest intraday gains. EUR/USD trades around 1.0730, recovering from an intraday low of 1.0681. Inflation and Political Jitters: Focus is on political concerns and inflation, particularly the US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's (Fed) preferred inflation gauge. FOMC Minutes: The macroeconomic calendar will include the minutes of the Federal Open Market Committee (FOMC) meeting, with limited impact on financial markets due to the Fed's recent economic projections. 5. European Economic Data German IFO: Germany published the June IFO Business Climate Index, which unexpectedly fell to 88.6 from 89.3 in May, missing the estimate of 89.7. Expert Assessment: FX strategists at Societe Generale note that expectations are down. 6. Future Outlook Short-Term Scenario: The EUR/USD pair needs to surpass 1.0760 to confirm positive momentum and extend gains towards the 1.0810 price zone. Market Considerations: Despite lowered expectations, the Euro is advancing even with tepid local data and might face resistance in reaching higher levels like 1.08. Conclusion The technical and fundamental outlook for EUR/USD suggests that despite a recovery momentum, the pair remains under pressure with significant resistance around 1.0760 and beyond. Economic dynamics and market expectations will continue to play a crucial role in the pair's performance, with particular attention to US economic data and Fed decisions.
Short
by Forex48_TradingAcademy
1
WBA Walgreens Boots Alliance Options Ahead of EarningsIf you haven`t bought WBA before the previous earnings: Now analyzing the options chain and the chart patterns of WBA Walgreens Boots Alliance prior to the earnings report this week, I would consider purchasing the 17.50usd strike price Calls with an expiration date of 2024-7-19, for a premium of approximately $0.41. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NASDAQ:WBALong
by TopgOptions
1
Trading pullbacks and handling fearOur last trade was a pullback, I will share the M1 timeframe for more clarity on this. But it still went out on Exit 1. So how do we handle the fear of a reversal or mistakes? Even if volatility is huge and we have a direction but we see that for example there has been a bigger reversal against our trade, but of course do not know how long it will last. Having a checklist in these kind of situations is always THE orientation that you need. Trading is not about always knowing where the market is going, because no one knows it. We only have a mechanical list that helps us in our decision making, and sometimes the worst thing that can happen, if I do not enter too late or exit too early is to simply taking the pullback and be out (or at break even) fast. If you do not have a checklist for my strategy, take a look at my education. I provide you with everything you need for profitable trading here: beacons.ai Don't miss this one time chance, because this offer runs out on 1st of July and won't come back for at least the next year. Grab you chance now and get everything you will ever need on the charts today :)
VANTAGE:DJ30
by Heaven10
XAUUSD: Big Swing Buy Coming Up Worth 2200+ PIPS! Dear Traders, Gold rejected at $2450 and dropped more than 1200+ pips, indicating a strong bearish takeover. Still we expect the same to continue, as bearish momentum is so strong that price ranged between 2330-2340 area for a long period on Friday. Which suggested that bears large number of volume Is still there in the market. Going forward, we can expect price of Gold to drop around 2280-2290 this key level remain strong for buyers. That move will be worth thousands of pips we expecting around 2200 pips if not more targeting 2500$ which will be record high. **Please like and comment the idea, for more do follow us which will encourage us to bring more educational chart analysis** Do your own analysis, always follow risk management. Team SetupsFX_
OANDA:XAUUSDLong
by Setupsfx_
33
TRADING TIPS That SERIOUS Traders Know ( ͡° ͜ʖ ͡°)Trading can be like... following a diet🥨 You need a clear plan, but also some space for cheats. If you're prone to jump-in trading, have some funds available for it - trading should be fun! Take that risk. But plan for it. If you've spent your 10% high risk capitol for the month/quarter, then that's that. - Look for Fractals Fractals in higher timeframes such as the weekly are often reliable, as it points towards the cyclic nature of the market. How did I make +118% on SOL? By following a fractal from the previous bull market: - Learn Elliot Wave Theory From the DOGE chart, we can see that Point 5 is not going to happen. (not that it won't happen at all, but just that it won't happen for the short term). How do I know this? ...Elliot Wave Theory. The EWT tells us that if point 4 retraces beyond point 1, the bullish impulse is invalidated. We are now more likely to slow bleed down to Point 2. - Look for Reliable Patterns Sometimes, certain patterns can be seen moments before they are finally "finished" forming. It's important to know the rules of these patterns, and trade reactively. I knew where to short ETH. How did I know? The M-Pattern: Deep Dive guide on Pattern-Trading here: - Learn to Manage Risk with Leverage Let's not duck around - Trading is risky but crypto trading is VERY RISKY. Make sure you have a strategy. - Learn To Trade the Rotations There's a secret pattern in the relationship between Bitcoin, Bitcoin Dominance and altcoins by market cap. Make sure you understand it before you take a leveraged trade: - Pick a few Technical Indicators and STICK TO THEM It's tempting to use whatever new indicator is the flavor of the day... but how will you ever learn the secrets? Technical indicators have "secrets". They look different on different markets. For example, SOL can be "Extremely Overbought" without correcting much for an extended period of time, where as Bitcoin usually corrects when the "Extremely Overbought" signal flashes. (This is an observation from using one indicator on many charts). Personally, I love Bollinger Bands, Moving averages and Cryptocheck START V3.5 as my combo indicator. That's how I called the beginning of the new Bullish season in November 2023: It's important to note that none of these strategies are 100% fail proof. Even the best Wallstreet traders average on 58% per annum. Stop trying to follow people who claim to make +1000000....% per annum. Often, these guys have lots of money to lose, in other words it's more a fly-by-night than studying charts for consistent wins. As long as you're making more than interest rates from a fixed deposit at the bank - you're winning! ________________________
by CryptoCheck-
EURUSD is ready for a new lowEUR/USD has regained buying interest and reclaimed the 1.0700 level due to renewed weakness in the US Dollar and expectations of Fed rate cuts. A continued downtrend could see EUR/USD revisit the June low of 1.0667, the May low of 1.0649, and eventually the 2024 bottom of 1.0601. On the upside, the 200-day SMA appears at 1.0788, followed by the weekly high of 1.0852, the June high of 1.0916, and the March peak of 1.0981. The US Dollar started the week weak after a strong rebound last week, driven by expectations that the Fed will implement only one rate cut this year. In this environment, EUR/USD reversed from multi-week lows near 1.0670 despite ongoing political concerns in Europe, especially in France. Market participants are assessing the Fed's hawkish stance from the June 12 meeting and rising expectations for a December rate cut. Neel Kashkari, Minneapolis Fed President, stated it is a "reasonable prediction" for the Fed to lower rates once this year, likely in December. According to the CME Group's FedWatch Tool, there is now nearly a 65% chance of a rate cut by the September 18 meeting. In the short term, the ECB's recent rate cut versus the Fed's hold has widened the policy gap, potentially weakening EUR/USD further. However, the emerging economic recovery in the Eurozone and perceived US economic slowdowns should help mitigate this disparity in the longer term, providing some support to the pair. ECB Chief Economist Philip Lane mentioned that the full impact of earlier rate hikes on Eurozone inflation is yet to be seen and that current bond market upheaval, particularly in France, is not chaotic, implying no need for ECB action. He emphasized the importance of a decline in service inflation momentum this year in supporting the ECB's disinflation narrative, with minimal new material expected before the July meeting. Lane is confident inflation will return to the 2% target next year despite some "noisy" inflation.
Short
by Forex48_TradingAcademy
1
Exxon Mobile (XOM): Awaiting Long Term Entry at $65Our group has recently revisited Exxon Mobil Corporation (XOM), and while there hasn't been much change, it's worth reassessing. The stock has entered the zone between 100% and 138%, which we identify as the level for Wave A and has respected this level. Long-Term Outlook: We anticipate a significant downward movement over the long term, potentially reaching the $65 level. This is where we plan to make substantial long-term purchases. The range between $65.50 and $64.40 has been consistently respected, reinforcing our strategy to wait for these levels before entering the market heavily. Short-Term Outlook: In the short term, Exxon has been trading within a range for nearly a year and a half. It briefly broke below this range to complete the larger Wave (A)and then broke above it to finish the sub-wave A. We are now entering a potential Wave B zone. Current Strategy: - Long-Term: We are waiting for the price to drop to the $65 range before making significant purchases. - Short-Term: We are monitoring the $104 to $100 zone, which looks attractive for a potential reversal. However, given the risk, we are not placing any entries yet and will wait to observe the market's reaction.
NYSE:XOMLong
by freeguy_by_wmc
Top 3 Tips on How to Avoid FOMO Trading (Fear of Missing Out)Here you are, casually sipping your coffee and watching the clock go by while you wait for the market to open so you can buy a few shares of your new stock pick. Remember, you chose that one after deep research and careful planning. And then “ WHAM! ” Twitter notifications start flying. GameStop (ticker: GME ) is once again rocketing to the moon after some livestream on YouTube unleashes a huge buying spree. “MUST. GET. IN.” — you, probably, after you get your emotions shaken and stirred by something called FOMO. 🔔 What’s FOMO? FOMO is an abbreviation for Fear Of Missing Out. This little four-word phrase can throw your investment rationale, thesis and analysis out the window so it could settle in your prefrontal cortex where your brain goes to make life decisions. In this blog, we’ll talk about that little gremlin FOMO and what steps you can take to prevent it from overriding your emotions and decisions. And for the sake of your time, we’ll keep it short. Let’s go. 💡 Tip 1: Plan Your Trade Plan your trade in advance and don’t sink into the moment. Knowing your entry, take profit and stop loss before you move into your position will eliminate the urge to rush in when things get hot. 🔴 Problem: News Releases, Earnings Reports We all know how intense markets can get when there are news reports coming out. Company data such as earnings reports or some of America's top economic events , such as the widely anticipated nonfarm payrolls , or the Federal Reserve’s market-moving interest rate decisions can spur volatility and cause trading instruments to seesaw and fluctuate in both directions. And because these events are well-known in advance — the Fed only meets eight times a year — these moments can be an attractive invitation to make a profit. 🟢 Solution: Plan your trade and understand that news reports and earnings releases are a double-edge sword and even if the data supports a certain narrative, i.e. lower inflation = higher gold prices, this isn’t always the case. Take a step back, regulate your breathing and keep your emotions in check. Wait it out until the noise tones down. 💡 Tip 2: Avoid Revenge Trading Revenge trading is the trading you do when you want to get back at the market after getting smacked in the face with a loss. Next time you stare at a losing position, notice if you feel the urge to jump right back in and make up what you lost. That's revenge trading. 🔴 Problem: Losses and Missed Opportunities Taking a beating from Mr. Market can be a painful experience. Yet, not taking the loss the right way can lead to even more pain and wiped out funds. Whenever you’re staring at a losing position, you might be tempted to sell out and jump right back in an effort to make back what you lost. 🟢 Solution: Avoid revenge trading. Recognize that pesky feeling, which — whenever you lose money on a trade — makes you want to pare back your losses with one quick trade. That quick trade could be a) more aggressive (for more potential profit), and b) cost you even more money because you’ve been impatient. 💡 Tip 3: Don’t Chase the Pump Any pump usually has a strong pull, because it makes gains look easy. All you need to do is catch the speed train (or get onboard the rocket ship) and, boom, you're in profit. Although, it's not as easy as it looks. 🔴 Problem: Pump and Dump Schemes Quite often we see some little-known stock or a cryptocurrency with a small market capitalization perform some outstanding moves. It may shoot higher by 100% or more and that may trigger some FOMO in you, causing you to panic-buy and then watch your investment evaporate like snow in water. 🟢 Solution: Don’t chase the pump. It’s simple. A pump can play with your decision-making capabilities and cause you to make irrational choices out of the desire to join the volatility train. But many of those pumps end up as dumps. Pump and dump schemes are real — the gains go as quickly as they came and you don’t want any of that. Final Considerations Forming a deep emotional connection with the market isn’t a bad thing. This place is your passion and you’ve chosen to participate in it, together with its ups and down. What you should pay attention to is how you react to its changing moods and whether you behave logically or illogically to get what you want. Acting illogically can lead you to trip up so you want to distinguish that. Use your emotions to get rational inspiration and excitement about what you want to accomplish. 📣 Your Turn! Have you ever tripped up over a FOMO trade that hurt your account? What was your trigger and subsequent result? Let us know in the comment section below!
NYSE:GMEEducation
by TradingView
10
The Wick Phenomenon: How and Why Big Wicks Get FilledIn trading, wicks on candlestick charts represent the highest and lowest prices during a given time period. Long wicks can often be seen as a sign of market indecision, but they also tend to get filled by subsequent price action. This phenomenon occurs frequently and can provide valuable insights for traders looking to capitalize on price movements. In this article, we’ll explore how and why big wicks get filled through practical examples. Understanding Wicks and Their Significance Wicks, also known as shadows, appear on candlestick charts when the price moves significantly above or below the opening and closing prices within a specific time frame. A long upper wick indicates that prices were pushed up but then fell back down before the close, showing selling pressure. Conversely, a long lower wick suggests that prices were driven down but then recovered before the close, indicating buying pressure. Usually, at least 50% of the wick will be filled, and sometimes the entire wick will get filled before the reversal happens. Why Do Wicks Get Filled? 1️⃣Market Psychology: Traders often see long wicks as areas of interest. For instance, if the price reaches a high but then falls, traders might anticipate a retest of that high. 2️⃣Liquidity Zones: Long wicks indicate areas where a lot of trading activity took place. These areas are often revisited as the market seeks liquidity. 3️⃣Mean Reversion: Prices tend to revert to their mean over time. A wick can be seen as a deviation from the mean, and the subsequent filling of the wick is part of the reversion process. How To Trade It? It all depends on your trading plan. Here are some options: Aggressive traders can buy/sell immediately after the wick has been formed. Semi-conservative traders can look for a reversal pattern on a lower timeframe to confirm it. Extra conservative traders can wait for the candle with the wick to be broken from the other side before entering. Additionally, considering more confluences like key levels, market structure, and the overall trend will give you a better edge. Why Now? You might be wondering why I am posting this article now. As you may have noticed, we had a dip yesterday, giving us a practical example on many altcoins and stocks. For this example, I have chosen DOGE, 4H chart. I hope you like the content and found it useful. Are you taking wicks into consideration in your trading plan? If yes, how? If not, why? What would you like me to discuss next? Always remember: 📚 All Strategies Are Good; If Managed Properly! ~Richard Nasr
by TheSignalyst
28