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Supportandresistancezones

📊 Navigating The Trading Range📌What Is a Trading Range? A trading range is a period during which an asset consistently fluctuates between high and low prices. The upper limit of the range acts as a resistance level, meaning it tends to hinder further price increases. The lower limit of the range serves as a support level, providing a barrier against significant price declines. When an asset breaks through or falls below its trading range, it usually means there is momentum (positive or negative) building. A breakout occurs when the price of a security breaks above a trading range, while a breakdown happens when the price falls below a trading range. Typically, breakouts and breakdowns are more reliable when they are accompanied by a large volume, which suggests widespread participation by traders and investors. Many investors look at the duration of a trading range. Large trending moves often follow extended range-bound periods. 📌Support and Resistance If an asset is in a well-established trading range, traders can buy when the price approaches its support and sell when it reaches the level of resistance only if there is confluence and signs for it. Using volume is a good indication of spotting continuation or reversals. If the price is approaching a support level with high sell-side volume, its a good indication it might just break down and continue the downtrend to the next support zone. You can define major support/resistance zones where there was clear reaction in the past and use them as major pivots to guarantee safer entries. Always remember two key things about S/R. The first is, the more times a S/R zone is tested the higher the change a breakout/breakdown will occur. Once a S/R breaks, it will automatically turn into the opposite of what it was, the price break out of the resistance and range above. That previous resistance will act as a support level next time the price action touches it. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
⭐️ Support And Resistance | Definition & Strategies ⭐️Support and resistance levels are fundamental aspects of trading, holding significant importance in various financial markets, including the dynamic forex market. These critical levels signify specific price zones on a chart where buyers and sellers actively participate, exerting influence on market movements. Consequently, comprehending the impact of support and resistance levels is crucial for traders seeking to make well-informed decisions and capitalize on trading opportunities. This comprehensive article aims to explore the significance of support and resistance levels, delve into methods of correctly identifying and drawing them, outline effective trading strategies, and present techniques for filtering out false signals. Armed with a comprehensive understanding of these concepts, traders can elevate their trading proficiency, potentially leading to improved profitability and success in the forex market. Support and resistance levels act as psychological barriers, reflecting the collective behavior of market participants. Support represents a price level where buying pressure tends to overcome selling pressure, causing prices to reverse direction and rise. On the other hand, resistance signifies a price level where selling pressure typically surpasses buying pressure, leading to price reversals and declines. These levels are formed based on previous market reactions, such as historical highs and lows, trendlines, and chart patterns. Traders consider support and resistance levels as critical reference points, as they help identify potential entry and exit points, define risk and reward ratios, and anticipate market reversals or continuations. To accurately identify and draw support and resistance levels, traders employ various techniques and tools. One popular method is the swing high and swing low approach. Traders identify significant peaks (swing highs) and troughs (swing lows) on a price chart and draw horizontal lines connecting them. These lines act as reference levels, indicating potential areas of support and resistance. Additionally, trendlines can be utilized to identify dynamic support and resistance levels, providing insights into the overall market trend. Once support and resistance levels are identified, traders can implement effective trading strategies to capitalize on these market dynamics. One common approach is to buy at support and sell at resistance. When prices approach a support level, traders anticipate a price bounce and look for buying opportunities. Conversely, when prices approach a resistance level, traders expect a potential price reversal and consider selling or shorting the asset. This strategy allows traders to enter trades with favorable risk-reward ratios, aiming to capture price movements away from support or resistance levels. What is it exactly a Support and Resistance ? Support and resistance levels represent crucial price clusters where buyers and sellers engage in competition. A support level denotes a specific price point where the demand for an asset becomes sufficiently strong to halt further declines in its value. As the price approaches the support level, it is reasonable to expect an increase in buyer activity and a decrease in seller activity, resulting in higher buying volume and reduced selling volume. When the price reaches the support line, there is a high likelihood of a rebound occurring, as this line establishes a significant psychological low within the market. Support levels essentially "support" the price, preventing it from continuing its downward trajectory. It's important to note that support and resistance levels are not fixed points. Prices may approach these levels with slight deviations, either falling just short of reaching them or temporarily dipping slightly below the line. If the price successfully breaks through the support line and proceeds to decline, it undergoes a transformation and assumes the role of a resistance level. Use of the Resistances on Bearish trend. Use of The Supports on Bullish trend. Use of Support and Resistance on Sideways / Range market. Resistance levels are the opposite of support. These marks appear when supply becomes equal to demand. The logic here is that as the resistance level is approached, the volume of buyers decreases, while the volume of sellers gradually increases. At the point where the balance is reached, the price will stop, and further growth will stop. The resistance level is always above the price. The name also speaks for itself. This mark is as if restraining the price from further growth by resisting it. How To Trade On Support And Resistance Levels: Trading based on support and resistance levels is a popular approach within the forex trading community. These levels represent specific areas on a price chart where the market tends to reverse or consolidate, presenting potential opportunities for buying or selling. To effectively trade support and resistance levels, follow these steps: - Identify significant support and resistance levels: Analyze historical price data to locate areas where the price has previously reversed or encountered difficulty in breaking through. This can be done by observing swing highs and swing lows, trendlines, Fibonacci retracement levels, or horizontal price levels. - Mark the identified levels on your chart: Once you have identified key support and resistance levels, mark them on your chart. This visual representation helps you recognize the areas where potential trading opportunities may arise. - Monitor price reactions: Keep a close eye on the price as it approaches the support or resistance levels. Look for indications of a potential reversal or a breakout from the level. These indications can include candlestick patterns, chart patterns, or the signals from indicators that suggest a shift in market momentum. - Confirm with additional indicators: While support and resistance levels can be traded on their own, it can be beneficial to use supplementary indicators or tools to validate your trading decisions. For instance, you can employ oscillators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) to assess overbought or oversold conditions. - Define your entry and exit points: Once you have identified a potential trading opportunity based on support and resistance levels, establish your entry point, determine a suitable Stop Loss level (to limit potential losses), and set a take-profit level (to secure profits). Technical analysis, such as considering the distance between the entry point and the nearest support or resistance level, can help determine these levels. Manage your risk: Proper risk management is crucial when trading support and resistance levels. Consider implementing appropriate position sizing, setting Stop Loss orders to protect against excessive losses, and maintaining a favorable risk-to-reward ratio. This approach ensures that even if some trades are unsuccessful, your overall trading strategy remains profitable. Practice and refine your strategy: Mastery of support and resistance trading comes with practice and experience. Begin by testing your approach on a demo account or using backtesting software to evaluate its performance based on historical data. Refine your strategy based on your observations and gradually build your confidence. Support And Resistance Trading Strategies Support and resistance trading strategies offer various approaches to capitalize on price dynamics around these key levels. Here are several common strategies employed by traders: Breakout Strategy: This strategy involves trading the breakout of support and resistance levels. When the price surpasses a resistance level or falls below a support level, it indicates a potential continuation of the prevailing trend. Traders can initiate a long position after a resistance breakout or a short position following a support breakdown. Setting a Stop Loss order below the breakout level helps manage risk. Bounce Strategy: With the bounce strategy, traders anticipate price bounces off support and resistance levels. When the price approaches a support level, traders can enter long positions, placing a Stop Loss order below the support level. Conversely, when the price nears a resistance level, traders can go short, setting a Stop Loss order above the resistance level. The expectation is that the price will reverse from these levels, presenting profitable trading opportunities. Range Trading: Range trading occurs when the price fluctuates between a support and resistance level. Traders can exploit this by buying near the support level and selling near the resistance level. To enhance range trading, traders identify the range boundaries and employ technical indicators such as oscillators to assess overbought and oversold conditions within the range. Pullback Strategy: In this strategy, traders wait for the price to retrace to a support or resistance level after a breakout. The idea is to enter trades in the direction of the breakout once the pullback is complete. For instance, if the price breaks above a resistance level, traders wait for a pullback to the support-turned-resistance level before initiating a long position. Confluence Strategy: This strategy combines support and resistance levels with other technical indicators or chart patterns to increase trading probabilities. Traders search for instances where multiple factors align, such as a support level coinciding with a trendline or a Fibonacci retracement level. This convergence of factors strengthens the signal for potential trading opportunities. How To Filter False Signals ? Filtering out false signals when trading support and resistance levels can indeed be challenging. However, there are several strategies you can employ to increase your accuracy and minimize the impact of false signals. Here are some helpful tips: - Confirm with multiple indicators: Relying on a single indicator can lead to false readings. To enhance the reliability of your analysis, consider using multiple indicators that complement each other. Look for indicators that align with your support and resistance levels, such as trendlines, moving averages, or oscillators. When multiple indicators converge and provide consistent signals, it strengthens the confirmation for potential trading opportunities. - Analyze price action: Study how the price behaves around support and resistance levels. Look for clear and decisive price movements, such as strong breakouts or bounces, accompanied by significant volume. False signals often exhibit choppy or erratic price action, lacking conviction. By analyzing price action, you can gain insights into the strength or weakness of support and resistance levels. - Consider multiple time frames: Analyze support and resistance levels across different time frames. Levels that hold on higher time frames carry more significance. Focus on levels that align and hold on multiple time frames, as they are more likely to attract market participants and generate reliable signals. The confluence of levels across different time frames increases the validity of the signals. - Monitor the market context: Consider the broader market context, including the overall trend, market sentiment, and significant news or events. Support or resistance levels that align with the prevailing trend and market sentiment are more likely to generate valid signals. Conversely, levels that conflict with the trend or market sentiment may produce false signals or indicate potential reversal points. Understanding the market context can help you filter out false signals. - Be patient and selective: Avoid jumping into trades based on every touch of a support or resistance level. Exercise patience and wait for strong confirmation signals before entering a trade. Look for price rejections, candlestick patterns, or breaks with high volume and momentum. Being patient and selective in your trades increases the probability of accurate signals and minimizes the impact of false signals on your trading. - Implement proper risk management: Effective risk management is crucial to mitigating the impact of false signals. Set appropriate Stop Loss orders to limit potential losses if a trade goes against you. Consider using Trailing Stops to protect profits as the trade moves in your favor. By managing your risk properly, you can protect your trading capital and minimize the adverse effects of false signals on your overall trading performance. By incorporating these strategies into your trading approach, you can enhance your ability to filter out false signals and increase your accuracy when trading support and resistance levels. Remember to practice, adapt to changing market conditions, and continuously refine your trading strategy. Conclusion : Support and resistance levels are crucial elements in the forex market, exerting a significant influence on price movements and market dynamics. These levels represent areas where supply and demand imbalances occur, leading to trend reversals, consolidations, breakouts, and impacting market psychology. Correctly identifying and drawing support and resistance levels is vital for traders as it helps them identify potential buying and selling opportunities. Traders can utilize various trading strategies to capitalize on these levels. Breakout strategies involve trading the breakouts of support or resistance levels, while bounce strategies focus on trading price bounces off these levels. Range trading strategies take advantage of price oscillations within established support and resistance boundaries, while pullback strategies involve trading in the direction of the breakout after a price retracement. However, it's essential to filter out false signals to avoid erroneous trading decisions. This can be achieved by using multiple indicators that complement each other and provide confirmation signals. Analyzing price action helps in understanding the strength or weakness of support and resistance levels. Considering different time frames allows traders to identify levels that hold significance across various intervals. Assessing the broader market context, including the overall trend and market sentiment, helps to avoid false signals that conflict with the prevailing market conditions. Additionally, exercising patience and selectivity when entering trades ensures that traders wait for strong confirmation signals before taking action. Implementing proper risk management techniques, such as setting appropriate Stop Loss orders and employing position sizing strategies, protects traders from excessive losses and manages risk effectively. By incorporating these principles into their trading approach, traders can navigate the complexities of support and resistance levels and increase their chances of success in the forex market.
Education
by FOREXN1
18
Trading XAUUSD with Support and Resistance ZonesPicture this: the XAUUSD trading pair, Gold versus the US Dollar, is like a playground game of tug of war. On one side, you've got the bulls (buyers) yanking the rope, trying to pull the price up. On the other side, you've got the bears (sellers), doing their best to yank the price down. Now, imagine there are lines drawn in the sand on each side: these are your support and resistance zones. They're like the castle walls in a game of Capture the Flag. The resistance zone is the bear's castle, a fortress where they gather strength and beat back the bull's offensive. The support zone, that's the bull's stronghold, where they rally and make a stand against the bears. Now, we're going to zoom into our tug-of-war game with a telescope, getting a closer look at what's happening in the 15-minute intervals (the M15 time frame). Suddenly, we see the war isn't a continuous tug, but a series of fierce battles fought at the castles. When the rope (price) reaches the bear's castle (resistance zone), the bears often successfully repel the bulls, causing the rope to recoil towards the bull's side (price goes down). Likewise, when the rope gets yanked to the bull's castle (support zone), the bulls gather their strength and push back, sending the rope back to the bear's side (price goes up). But castles aren't impregnable. Sometimes, the attacking team (bulls at resistance, bears at support) breaches the castle walls, causing a chaotic scramble (price breakout). These breakouts are like the moments in a game when everyone gasps, drops their hotdogs, and scrambles to see what's going to happen next. And because our game of tug-of-war isn't happening in a vacuum, outside influences—like that obnoxious park squirrel (unexpected market news)—can change the rules or shift the battleground lines (alter support and resistance zones). Remember, this isn't a foolproof guide to winning the game—it's just one way to understand the strategies in play. And even though it's a game, we're playing with real money, so don't yank on that rope unless you can afford to fall in the mud. Always use your helmet (risk management strategies). And remember, sometimes, it's okay to let go of the rope and enjoy a sandwich (take breaks from trading).
FOREXCOM:XAUUSDEducation
by torricelly
1
Expert Tips for Successful Stocks, Futures, Fx, Crypto, Trading Price action technical analysis is a popular and effective approach to navigating the financial markets, including stocks, options, futures, Forex, Crypto, and Commodity trading. This article will provide expert tips and insights to help you successfully trade various financial instruments using price action technical analysis. By understanding and applying these concepts, you can improve your trading skills and potentially achieve greater profitability. 1. Understanding Price Action Technical Analysis Price action technical analysis is a method of analyzing financial markets by focusing on the price movements of assets, rather than relying on indicators or other external factors. This approach is based on the belief that historical price movements can provide valuable insights into future price trends and potential trading opportunities. Importance of Price Action Price action is the most direct and real-time reflection of the market's sentiment and the forces driving it. By studying price action, traders can gain a deeper understanding of the market dynamics and make more informed trading decisions. With practice, traders can develop an intuitive sense of the market's behavior, allowing them to quickly adapt to changing conditions and capitalize on opportunities. Key Concepts in Price Action Technical Analysis There are several key concepts in price action technical analysis that traders must understand to effectively navigate the markets. These include support, resistance, trend, and fibonacci levels. By mastering these concepts, traders can identify potential entry and exit points, manage risk, and maximize profits. 2. Analyzing Stocks with Price Action Technical Analysis Stocks are a popular financial instrument for traders, and price action technical analysis can be particularly useful for identifying potential opportunities in this market. By analyzing the price movements of stocks, traders can gain insights into the underlying forces driving the market and make more informed decisions about when to buy or sell. Identifying Support and Resistance Levels Support and resistance levels are critical concepts in price action technical analysis. These levels represent psychological barriers where the forces of supply and demand meet. When the price of a stock reaches a support or resistance level, it often experiences a reversal or a consolidation before continuing its trend. Support Support is a price level where the stock's downward movement is halted due to the presence of a strong buying interest. When a stock reaches a support level, it is likely to experience a bounce or a temporary pause in its downward trend. Resistance Resistance, on the other hand, is a price level where the stock's upward movement is halted due to the presence of strong selling interest. When a stock reaches a resistance level, it is likely to experience a pullback or a temporary pause in its upward trend. Identifying Trends Trends are an essential aspect of price action technical analysis, as they provide traders with a directional bias for their trades. A trend is a sustained movement in the price of a stock in a particular direction, either upward (bullish) or downward (bearish). Uptrends An uptrend is characterized by a series of higher highs and higher lows, indicating that the stock's price is consistently rising over time. In an uptrend, traders should generally look for buying opportunities, as the stock is likely to continue its upward trajectory. Downtrends A downtrend, on the other hand, is characterized by a series of lower highs and lower lows, indicating that the stock's price is consistently falling over time. In a downtrend, traders should generally look for selling opportunities, as the stock is likely to continue its downward trajectory. Using Fibonacci Levels Fibonacci levels are a powerful tool in price action technical analysis, as they can help traders identify potential support and resistance levels, as well as possible entry and exit points. The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding ones, starting from 0 and 1. In trading, Fibonacci retracement levels are derived from this sequence and are used to predict potential price reversals. 3. Trading Options with Price Action Technical Analysis Options are another popular financial instrument for traders, and price action technical analysis can be used to identify potential opportunities in this market as well. By analyzing the price movements of the underlying asset, traders can make more informed decisions about when to buy or sell options contracts. Understanding Options Options are financial instruments that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (called the "strike price") on or before a specified expiration date. There are two types of options: call options, which give the buyer the right to buy the underlying asset, and put options, which give the buyer the right to sell the underlying asset. Analyzing Options with Price Action Technical Analysis When trading options, price action technical analysis can be used to identify potential entry and exit points, as well as to manage risk. By analyzing the price movements of the underlying asset, traders can gain insights into the market dynamics and make more informed decisions about when to buy or sell options contracts. Identifying Support and Resistance Levels As with stocks, support and resistance levels are critical concepts in price action technical analysis for options. By identifying these levels, traders can determine potential entry and exit points for their options trades, as well as manage risk. Identifying Trends Trends are also essential when trading options, as they provide traders with a directional bias for their trades. By identifying the trend of the underlying asset, traders can make more informed decisions about which options contracts to buy or sell. 4. Analyzing Futures with Price Action Technical Analysis Futures are another popular financial instrument for traders, and price action technical analysis can be used to identify potential opportunities in this market as well. By analyzing the price movements of the underlying asset, traders can make more informed decisions about when to enter or exit futures positions. Understanding Futures Futures are financial contracts that obligate the buyer to purchase an asset (or the seller to sell an asset) at a predetermined future date and price. Futures contracts are standardized and traded on exchanges, allowing traders to speculate on the future price movements of various assets, such as commodities, currencies, and indices. Analyzing Futures with Price Action Technical Analysis When trading futures, price action technical analysis can be used to identify potential entry and exit points, as well as to manage risk. By analyzing the price movements of the underlying asset, traders can gain insights into the market dynamics and make more informed decisions about when to enter or exit futures positions. Identifying Support and Resistance Levels As with stocks and options, support and resistance levels are critical concepts in price action technical analysis for futures. By identifying these levels, traders can determine potential entry and exit points for their futures trades, as well as manage risk. Identifying Trends Trends are also essential when trading futures, as they provide traders with a directional bias for their trades. By identifying the trend of the underlying asset, traders can make more informed decisions about which futures contracts to buy or sell. 5. Trading Forex with Price Action Technical Analysis Forex, or foreign exchange, is the largest and most liquid financial market in the world, making it a popular choice for traders who want to capitalize on short-term price fluctuations. Price action technical analysis can be particularly useful for forex traders, as it allows them to identify potential trading opportunities based on the movements of currency pairs. Understanding Forex The Forex market is where currencies are traded, allowing traders and investors to speculate on the relative value of one currency against another. Forex trading involves the simultaneous buying of one currency and selling of another, with currency pairs representing the value of one currency relative to the other. Analyzing Forex with Price Action Technical Analysis When trading forex, price action technical analysis can be used to identify potential entry and exit points, as well as to manage risk. By analyzing the price movements of currency pairs, traders can gain insights into the market dynamics and make more informed decisions about when to enter or exit forex positions. Identifying Support and Resistance Levels As with other financial instruments, support and resistance levels are critical concepts in price action technical analysis for forex. By identifying these levels, traders can determine potential entry and exit points for their forex trades, as well as manage risk. Identifying Trends Trends are also essential when trading forex, as they provide traders with a directional bias for their trades. By identifying the trend of a currency pair, traders can make more informed decisions about which forex positions to take. 6. Trading Crypto with Price Action Technical Analysis Cryptocurrencies, such as Bitcoin and Ethereum, have gained significant popularity in recent years, offering traders another market to navigate using price action technical analysis. By analyzing the price movements of cryptocurrencies, traders can identify potential trading opportunities and make more informed decisions about when to enter or exit positions. Understanding Crypto Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on a decentralized network, such as a blockchain. These digital assets have gained popularity due to their potential for significant price appreciation, as well as their use as an alternative to traditional currencies. Analyzing Crypto with Price Action Technical Analysis When trading cryptocurrencies, price action technical analysis can be used to identify potential entry and exit points, as well as to manage risk. By analyzing the price movements of cryptocurrencies, traders can gain insights into the market dynamics and make more informed decisions about when to enter or exit crypto positions. Identifying Support and Resistance Levels As with other financial instruments, support and resistance levels are critical concepts in price action technical analysis for cryptocurrencies. By identifying these levels, traders can determine potential entry and exit points for their crypto trades, as well as manage risk. Identifying Trends Trends are also essential when trading cryptocurrencies, as they provide traders with a directional bias for their trades. By identifying the trend of a cryptocurrency, traders can make more informed decisions about which crypto positions to take. 7. Trading Commodities with Price Action Technical Analysis Commodities, such as gold, oil, and agricultural products, are another popular market for traders who want to utilize price action technical analysis. By analyzing the price movements of commodities, traders can identify potential trading opportunities and make more informed decisions about when to enter or exit positions. Understanding Commodities Commodities are basic goods that are either grown, mined, or otherwise produced, and are used as inputs in the production of other goods or services. Commodity markets allow traders and investors to speculate on the future price movements of these goods, as well as hedge against potential price fluctuations. Analyzing Commodities with Price Action Technical Analysis When trading commodities, price action technical analysis can be used to identify potential entry and exit points, as well as to manage risk. By analyzing the price movements of commodities, traders can gain insights into the market dynamics and make more informed decisions about when to enter or exit commodity positions. Identifying Support and Resistance Levels As with other financial instruments, support and resistance levels are critical concepts in price action technical analysis for commodities. By identifying these levels, traders can determine potential entry and exit points for their commodity trades, as well as manage risk. Identifying Trends Trends are also essential when trading commodities, as they provide traders with a directional bias for their trades. By identifying the trend of a commodity, traders can make more informed decisions about which commodity positions to take. 8. Risk Management in Price Action Technical Analysis Risk management is a crucial aspect of successful trading, regardless of the financial instrument being traded. By employing effective risk management strategies, traders can minimize potential losses and maximize their chances of success. Setting Stop Losses One of the most important risk management tools in price action technical analysis is the use of stop losses. A stop loss is an order to close a trade at a predetermined level if the market moves against the trader's position. By setting a stop loss, traders can limit their potential losses and prevent large drawdowns in their trading accounts. Position Sizing Another critical aspect of risk management is position sizing, which involves determining the appropriate size of a trade based on the trader's account size and risk tolerance. By using proper position sizing techniques, traders can avoid overexposure to any single trade and maintain a balanced portfolio. 9. Developing a Trading Plan A successful trading strategy requires a solid trading plan, which outlines the trader's goals, risk tolerance, and specific trading rules. By developing a comprehensive trading plan, traders can maintain discipline and consistency in their trading decisions, leading to improved results over time. Establishing Trading Goals The first step in developing a trading plan is to establish clear trading goals, which can include both short-term and long-term objectives. These goals should be realistic, achievable, and aligned with the trader's overall financial objectives. Defining Risk Tolerance Another essential aspect of a trading plan is defining the trader's risk tolerance, which involves determining the level of risk the trader is willing to accept in pursuit of their trading goals. By clearly defining their risk tolerance, traders can make more informed decisions about their trading strategies and ensure that they are not taking on excessive risk. Creating Trading Rules Finally, a well-developed trading plan should include specific trading rules that govern the trader's actions in the market. These rules should be based on the trader's analysis of price action and other relevant factors and should be consistently followed to ensure discipline and consistency in the trader's decision-making process. 10. Continuous Improvement and Education Successful trading requires continuous learning and improvement, as the financial markets are constantly evolving and presenting new challenges and opportunities. By staying informed about market developments and continually refining their trading skills, traders can adapt to changing conditions and enhance their overall trading performance. Reviewing and Analyzing Trades One of the most effective ways to improve as a trader is to regularly review and analyze past trades. By examining the trades that were successful, as well as those that resulted in losses, traders can identify areas for improvement and make adjustments to their trading strategies as needed. Seeking Educational Resources There are many educational resources available to traders from ChartPros, including eBooks, online courses, and webinars. By actively seeking out these resources and continuing to expand their knowledge of the markets and trading techniques, traders can stay ahead of the curve and improve their chances of success. In conclusion... Navigating the markets with price action technical analysis is a powerful approach to trading various financial instruments, including stocks, options, futures, Forex, Crypto, and Commodity trading. By mastering the key concepts of price action technical analysis, such as support, resistance, trends, and Fibonacci levels, traders can improve their trading skills and potentially achieve greater profitability. Continuous education and improvement are essential to staying ahead in the ever-changing financial markets.
CME_MINI:ES1!Education
by ChartPros
📈How to Day Trade with Trend: Accumulation📍The accumulation stage in trading refers to a period when market participants are accumulating a particular asset, typically with the expectation of a future price increase. During this phase, the price of the asset tends to range between two significant levels known as support and resistance. Traders closely observe these price levels as they provide valuable insights into the potential direction of the upcoming breakout. 📍Support and resistance levels are psychological and technical barriers that the price of an asset tends to respect. 🔹Support represents a price level where buying pressure is expected to outweigh selling pressure, causing the price to "bounce" or reverse its downward movement. 🔹Resistance represents a price level where selling pressure is expected to exceed buying pressure, causing the price to reverse its upward movement. 📍During the accumulation stage, the price of the asset oscillates within a range defined by these support and resistance levels. Market participants who believe in the potential upside of the asset accumulate it by buying at or near the support level. As the price approaches the resistance level, some traders start to take profits or sell their holdings, creating selling pressure that prevents the price from advancing further. This creates a cyclical pattern of price movement between the support and resistance levels, resulting in a range-bound market. It's important to note that the accumulation stage and subsequent breakout are not always easy to predict. False breakouts, where the price briefly moves beyond a support or resistance level but quickly reverse 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
When to Change Your Bias 🎯Welcome Back Traders! In this education idea, I explain how to improve your trading bias, by knowing when to change it based on the movement of price action. Please support this education with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like our trade ideas and education content delivered straight to your email in the future. Thanks for your support and help in building the TradingView community. Kind regards, BK Trading Academy
Education
by BKTradingAcademy
12
📊 6 Examples of Rejections at S/R Areas📍Support and Resistance 101 Support and resistance are two foundational concepts in technical analysis. Understanding what these terms mean and their practical application is essential to correctly reading price charts. Prices move because of supply and demand. When demand is greater than supply, prices rise. When supply is greater than demand, prices fall. Sometimes, prices will move sideways as both supply and demand are in equilibrium. Like many concepts in technical analysis, the explanation and rationale behind technical concepts are relatively easy, but mastery in their application often takes years of practice. S/R level areas can develop inside different candlestick patterns as well as trend trading patterns. The Resistance being the top of the pattern and the support being the bottom of it. 🔹Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause or reversal of a prevailing trend. 🔹Support occurs where a downtrend is expected to pause due to a concentration of demand. 🔹Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply. 🔹Market psychology plays a major role as traders and investors remember the past and react to changing conditions to anticipate future market movement. 🔹Support and resistance areas can be identified on charts using trendlines and moving averages as well as different types of patterns. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
A focus on the importance of support and resistance levelsSupport and resistance levels are the lost art of trading any market. In using support and resistance zones, I also use various MA's (Moving Averages) to assist me in finding the perfect entry. Now no trading strategy is completely waterproof. The market will act and react however it wants to, and a multitude of factors can drastically alter price action so take this advice at your own risk. I'm looking to provide a series of videos to assist me in providing this information in a more clear and more concise manner. Support is a zone at the bottom of a trend or series of trends that acts as a trampoline, or (support) to the upside. Resistance acts as a ceiling, or (resistance) that favors movements to the downside. Draw these zones using either a rectangle on higher timeframes or two horizontal lines. There's not a single price that can act as either support or resistance. To create a larger margin of error, we use these zones. These zones usually make up anywhere from 20-30 pips, depending on the symbol in question. Use the MA's to show you where the trend is heading. Bring in other factors such as market sentiment, geopolitics, economic statistics, news breaks, and anything else that can act as confluence in determining where the market may go next. I use anywhere from 3 to 5 levels of confluence before I even think about entering the market. NEVER impulse trade. I also suggest never trading pre-news. When a red folder news event occurs, the market can shake, or "whipsaw" causing price action to rubberband in either direction. These moves are aimed to close retail traders' accounts, and the market wants nothing more than to take your money. More to come in a future idea - stay tuned. Happy trading, and as always, use responsible risk management when trading any financial market. Swindle
Education
by Swindle
1
Why leverage size is not matterHello dear community. Each trader is a part of discussion about leverages. Some of them say that it's risky, another just playing in casino with 50x. But why leverages is not matter, and how do not lose all deposit? Read below. Firstly, you need to know about 2 things. Support line Risk management Support line I am confident that you know about support line a lot of info, but just reminder. Support line is a zone when price jump back multiply time and coin start growing again. Support line can be detected on each timeframe. But for our case we need to see on 1D and 4H timeframe. Risk management If you are trading without risk management, you will be bankrupt. However, what is that? Risk management is the amount of funds in cash or percentage that you can risk in some trade. For example: You trade BTCUSDT with deposit 1000 USDT. Before you make a trade, you need to decide how many USDT or % will be your risk. The funds that will be lost in the worst scenario of trade. It can be 3-5% for start. In USDT, it will be 30 - 50 USDT. What is next? Next, you should calculate your position size. I suggest using next formula: Position size = Risk /(Buy level - Stop loss). It means if closer to stop-loss you buy order the bigger position you have. Buy level Current chart has support zone on 22546-22261. I suggest split your buy order on few slices on this zone. Stop loss I usually set stop loss behind this zone, in current example my stop at 22222 In this case, the formula will be: 50/(22403,5 - 22222) = 0.276 BTC is your position with risk in 5%. In this example, will be ~6X leverage. But if increase risk until 10%, leverage will be 12X. Trading is not about casino, is about math. Good luck and have good trades!
Education
by JoFiBaTaL
👊 Support And Resistance Levels Explained 👊The fundamental concepts of technical analysis are support and resistance levels. Technical analysis strategies are based on psychological and mathematical patterns from previous periods. One such pattern is resistance and support levels, which determine the most likely price direction change or confirmation of trend continuation. They can be used by both new and experienced traders. In this article, we will learn what support and resistance lines are, how to draw them correctly, and how to apply this knowledge to real-world trading. Fundamental Concepts  You must first understand what support and resistance levels are before you can begin adding them to the chart. They are critical indicators of a collision between upwardly and downwardly oriented players, known as bulls and bears. Traders pushing prices up or down will eventually reach a point where the opposing group is equally opposed. Support is the price level that "defends," or prevents, the price from falling lower. Resistance is the line that prevents the price from rising and thus resists its rise. A resistance line can become a support line as a result of price fluctuations, and vice versa. Support is defined as two or more lows, and resistance is defined as two or more highs. Once the price reaches a point of extremum on the chart, you can begin outlining the line, and the second extremum allows you to completely draw the support or resistance line. Because extremes are rarely repeated, the line is roughly drawn in the middle of them if the difference between them is insignificant. If the price spread between the marked extrema is large, the price range between these points is marked for the line, and traders are guided by it when drawing lines. In a sideways trend, determining resistance and support levels is easier. With large price changes, the possibility of defining support and resistance lines incorrectly is very high. There can be both strong and weak opposition and support. The time frame and number of price touches on the line define the line's strength. The higher the time frame, the more touches there are, as well as the strength of the resistance or support line. The length of the time frame is more important than the number of touches. In general, the support and resistance lines indicate areas where the probability of a price correction increases. The Notion Of A Trend One of the indicators used to calculate support and resistance levels is trend strength. A trend is a price movement up or down over a long time period. The price of an asset can fluctuate, but if its minimums are consistently going up, the trend is upward, if the maximums are going lower, the trend is downward. On the stock market, a visually identifiable trend is used to assess long-term investments and the likelihood of success of short-term speculation. How to trade using trend? The following algorithm is used for this purpose. The trend line is determined by the price of the asset. The Ultimate Beginner’s Guide To Trend Trading How the trend line behaves when it contacts the support and resistance lines is examined. If the uptrend line breaks out a strong resistance line at the second or third try, then there is a considerable probability of further price growth. Conversely, the price of an asset is more likely to move down if it breaks out a strong support level. What Factors Affect Support and Resistance Levels You should consider psychological and fundamental factors when drawing support and resistance lines. In general, the price cannot constantly rise or fall. After breaking out at significant levels of support and resistance, the likelihood of a psychological phenomenon known as "traders' remorse" increases as many players reconsider the future trend of asset price development. This happens as a result of the following factors: Fundamental: market or security indicators do not provide a basis for further price movement; Psychological: as prices rise and fall, people begin to doubt the validity of future moves. Profit fixing: achieving certain price points gives players a reason to fix their profits by monitoring the situation's evolution. If a large enough number of traders "repent" and close their positions, the price will return to the support or resistance level, and the trend will reverse. Correct Levels of Support and Resistance Surprisingly, there is no widely held consensus on how support and resistance lines should be named, nor are there any clear, specific descriptions of the relationship between extremums and lines. Nonetheless, the majority of traders believe that resistance and support levels are horizontal lines drawn at the highest and lowest price levels. Resistance lines are drawn on the maximums of impulse movements during an uptrend, and supports are formed on the minimums of corrective movements. The next low overlaps the next maximum, converting the resistance level to a support level. On the downside, the previous high coincides with the previous low, and the support level becomes a resistance level. Some traders believe that oblique support and resistance lines drawn through highs and lows are trend lines. Support and resistance lines can also be drawn through supply-price pivot points, also known as TD-points, which are upper extrema surrounded by lower extrema. The maximum point is the one above which prices have not moved in a specific time period, and the minimum point is the one below which prices have not moved in a specific time period. Over time, each trader determines for themselves the best way to draw support and resistance lines for their specific purposes. Some traders are limited to identifying lines that are close to circular values, that is, lines that end in zero. Based on previously formed reversal levels, it is also used to determine resistance and support levels.It is expected that if the price has previously bounced from a certain level, it will do so again. In this case, the trader must carefully analyze price dynamics and draw the lines by hand. Each method can correctly determine support and resistance levels or it can lead to errors; it all depends on the trader's skills. How to Draw Levels of Support and Resistance: Consider the fundamental principles of drawing support and resistance lines. Finding at least two minimum (maximum) points for the support (resistance) line These points are frequently close to the significant round number of the traded asset. Such closeness can be explained by the work of trading algorithm authors and traders, who prefer to be guided by visual values. The drawing of lines from these points into the future They can be horizontal, with a positive or negative slope, or both. There may be several such lines on a single chart. an examination of the significance of the obtained lines of support and opposition. The third step is the most important. It considers the received charts from the following positions: The hourly line is more important than the minutely line, but it has less value when compared to the weekly line. Length: the longer the resistance and support lines on the chart, the more important they are as a signal of a trend reversal or trend development for the trader. A few finishing touches As the number of lows and highs on which the support and resistance lines are based grows, so does their credibility. Trading volume: If asset price areas of contact with support or resistance lines are accompanied by increased trading activity, it indicates that the lines are viewed as indicators by many traders. Only after analyzing the lines' significance in relation to the aforementioned points can you begin using them in trading strategies. How to Use Resistance and Support Levels in Live Trading There are numerous approaches to working with support and resistance lines. Even though there is a wealth of educational material available on the Internet, learning how to use support and resistance lines requires practice. To begin with, it is trading on a pullback and a breakout. This method assumes that if the price encounters significant support or resistance, it will most likely reverse. If the trend is strong, the price can cross any level and continue to rise. This strategy entails only placing orders in the direction of the current trend. Trading on support and resistance levels is possible in a horizontal price channel. In this case, trades are opened when the price approaches the upper boundary of the channel, with the expectation of a resistance line crossing or a price rebound and fall. Price support and resistance lines, rather than price points, are taken into account to a greater extent. Which trend will prevail must be determined by auxiliary tools on the chart, such as bar and candlestick behavior. Not all levels of opposition and support are equally strong. A level's "strength" refers to the accuracy of its signal: a breakout indicates the continuation of a strong trend, whereas a reversal indicates the start of a new movement in the opposite direction. In the market, false breakouts are common. Use the recommendations below to avoid them. Step 1: Keep an eye on the time frames. Look for extremes on a daily and weekly basis. They can be considered strong if they at least partially coincide with extrema in lower time frames. Market makers are frequently active in the M5-M15 time frame. The approximate accumulation zone for stop orders can be determined using the depth of the market and the logic of private traders. With large volumes and trigger stops, market makers pull the price to the required zone, obtaining an asset at the best price. Step 2: Count the number of touches. The finer the level touches, the better. Note that the line must be drawn on exact touches without "pulling wishful thinking." Support And Resistance Levels In Forex Trading In the forex market, strategies based on support and resistance lines may be considered basic. In particular, trading within the price corridor is applied in case of price bounces - buying on a bounce from the upper boundary and buying on the approach to the lower one. In this case, stop orders are set either above or below the boundaries. Trading along the lines is useful in distinctly determined trends. For instance, if you are in a downtrend, you should monitor the upward correction to the previous support level and the new resistance level. If we talk about uptrend, the correction to the previous resistance and the new support should be monitored. Still, breakout trading is one of the most popular strategies in the forex market. It requires defining support and resistance levels as precisely as possible. In this strategy pending orders are placed just above or just below resistance levels. Summary Support and resistance levels are essential when analyzing any chart, either currency pair or cryptocurrencies. The major problem in doing so is knowing how to identify levels and place lines correctly. This is a practical skill, as there is no unambiguous definition of how to determine the support and resistance lines accurately. The task of defining them can become easier due to the fact that there are numerous auxiliary tools on trading platforms to determine them. Many trading strategies are based on support and resistance lines, and their effectiveness, by the way, also depends on the trader's practical skills. By understanding the principles of levels application, you can not only improve your trading system but also learn to understand the market better and assess its prospects.
Education
by FOREXN1
9
Pre Market Levels are CRITICAL in Day Trading 10X Gains For MeCME_MINI:ES1! AMEX:SPY NASDAQ:QQQ CME_MINI:NQ1! NASDAQ:TSLA I wanted to share a basic strategy I've been using that has helped me increase my profitability almost 10X Most people don't know that when the regular trading hours (RTH) markets are closed, the futures markets are running Generally overnight action during the pre market will set a clear high and a clear low. Those key pivots are hidden support and resistance that you WILL NOT see on the normal chart. Strategy 1 - Draw the Pre Market High/Low 2 - Use the Fibonacci tool in the direction of the overnight action either Bullish or Bearish 3 - Use the 0.618 Level as the KEY Algo level where you BUY THE DIP or SELL THE RIP 4 - Rinse and repeat - Always have a stop loss at the last major pivot and scale out profits over 25% Here is a more complete video guide from a trade I took last week: www.youtube.com
CME_MINI:ES1!Education
by tradingwarzone
3
🟢Support🟢 & 🔴Resistance🔴 in TradingView Land !!!👨‍🏫Hello, guys🤪; I'm Pejman, and today we will change the regular TradingView to TradingView Disneyland🎡 . I want to tell the story of Snow White and the trader dwarfs. Once upon a time🌞, in the kingdom👑 of Stocktopia, there was a young princess👰‍♂️ named Snow White Charts. She was the heir to the realm of Stocktopia. Still, unlike her father, the King of Stocktopia, a successful businessman🧔‍, Princess needed help understanding the stock market. She often lost money💸. One day, while walking in the forest🌿🌲, Princess Snow White Charts stumbled upon an old house called Dwarf traders. She became curious and decided to visit this house🏠. Dwarves lived in this house🏠 whose job was to help the traders. They directed the price of different stocks by creating support and resistance lines or zones, and each dwarf was responsible for one of them. The Princess did not know anything about these lines. So she decided to stay to learn about these powerful lines. One of these dwarves, named Doc, looked older and wiser than the other dwarves. The Princess enlisted the help of Doc to learn how these lines worked. Doc was proficient in various methods of technical analysis and had an exceptional talent for simplifying complex issues😝. So he tried to teach these lines to the Princess👰‍♂️ in the simplest and best way possible. If you also want to master technical analysis like Doc before learning support and resistance lines/zones, read the following post to learn what technical analysis is. 🤓👇 Doc showed the following picture to the Princess. Can you tell what the role of support lines is before reading Doc's explanation❓👇 As you can see in the picture, the candles are placed in a downward trend, and they go down🔴 like playful children🧒🧒 playing on the slide. Doc explained that support lines are like a bouncy castle🕍 for price. When the candles reach these Lines, they'll push them up just like a trampoline; the price will grow. Remember that they prevent the price from moving too far down or falling.😅 The candles are safe on the support lines, so Sleepy sleeps peacefully. Doc believes that when a stock's price hits support lines, it can indicate a potential buying opportunity. Still, when it breaks down🔴 the support line, it can show a possible selling opportunity; but I will discuss this in the following. Now you may ask, what are resistance lines❓ The exact same question came up for Princess Snow White Charts😁. First, look at the chart below.👇 Resistance lines are like the roof of a bouncy castle. In an uptrend🟢, when the candles are happy and constantly jumping higher and higher, the resistance lines prevent them from going further. The resistance line is guarded by Goupy, who pushes the candles down🔴 like a bully, whenever the candles hit the resistance line. Let's suppose all these price lines & dwarfs want to lead candles in a particular direction. Now that you are familiar with support and resistance lines, you might have the same question as Princess👰‍♂️had again. How to recognize and find these lines❓ According to Doc, there are several ways to find these lines: Past Price Data: Sir John says: "Price data is like a roadmap, showing you where the market has been and where it might be heading." Looking at past price data is like checking the tracks of a criminal. It may be seen, but it is simply not correct. You can know how he behaved in the past because he may repeat the same behavior in the future. So, to better understand the price, you must also know its past. Even Philip Fisher also believes that: "Price data is the lens through which we can see the market's true nature." Previous Lines: By finding previous support and resistance lines, it's as if you've found a criminal's 🔫 recorded files. Price data is the story of the market, and those who ignore it are doomed to repeat their mistakes. You can't predict the future without understanding the past, and the market's past performance is the best indicator of its future performance. Wow, speak of the devil🤐, I forgot that indicators also have important points to say too. Indicators: Maybe price data is like a roadmap🚨 or past lines like a criminal recorded file. But indicators are like GPS. Indicators are the GPS of the financial markets, and they guide us to our destination and help us avoid getting lost. Indicators are the financial markets' fingerprints, revealing the underlying patterns and trends. Doc and I found some indicators helpful in identifying supply(resistance) and demand(support) zones, such as: Moving Average/Parabolic SAR/Bollinger Bands/Ichimoku Kinko Hyo/Fibonacci/Pivot point There are many ways to recognize these lines and even indicators that help you find them like an assistant, but you should still try to know and learn them yourself. For example, Doc says there are additional support and resistance lines. Like the slides in the game, they can be straight or sloping, going up🟢 or down🔴. I'm kidding, but they really have these types 🙂. In the previous pictures, I showed you only static lines. Now, look at the pictures below because I will show you all the types of these lines with examples. For example, if the support and resistance lines are like a road🛣 on the ground, they are called static support and resistance lines . Now, what if this road turns into steep ropes❓ Well, it is known that they are called dynamic support and resistance lines . For example, if you want to go mountain🗻 climbing, it is as if you are climbing with dynamic support. In general, in an upward🟢 trend, dynamic support lines like a ramp🚧 prevent the price from falling. Now that we are talking about climbing let's introduce another game🎲. The zipline🤐😄. The price decreases from the dynamic resistance lines like a zipline in downward🔴 trends. 😄 I must say that theoretically, the price will go down after hitting the dynamic resistance lines and these lines prevent price growth🟢. Dynamic resistance or support is also called a trend line. Trendlines are helpful in many parts of technical analysis, such as classical patterns. Just take a look at the below post. You will find that trend lines help us effectively identify these patterns or trade with them. That's how I am! COOL!😎😎.👇 Don't worry and don't rush because, as said: Patience is bitter, but its fruit is sweet. Soon I will teach all these patterns in future posts, but we have to go step by step together.😎😎😎 But I must add that the price is also very playful😛. The price may cross these lines, be above the resistance or below the support, and escape from them. "If price can make a credible breakout, this could be a good place to trade and make some sweet dollars," Doc whispered to Princess Snow White Charts. What is a valid breakout❗️❓ This was the question that arose in the Princess's 👰 mind, and I think it is your question as well. Imagine that the resistance line is like a prison that confines the candles. A diligent & playful candle needs the support of buyers to escape from this prison. If the buyers support it, it can get out of this prison. After escaping the breakout candle, if another candle, called the confirmation, escapes from this prison and jumps above the breakout candle, the way will be clear for other prisoners, and they can run. So a valid breakout will happen. A valid breakout is created with a strong candle called a breakout candle(such as the Marubozu candle); after that, a candle as a confirmation candle will confirm this breakout. Don't worry about selling below the Support line or buying above the resistance line. If a valid breakout has occurred, the target stock will decrease/rise further, and the trend will not stop or end anytime soon. Let's walk through an example of a valid breakout with Doc. As you can see, the price broke this line with a strong candle and made a confirmation candle. As a result, we consider this a valid breakout. If you have noticed, finally, the price went back to this line to greet the previous line. This movement is called Pullback . In general, to say that a breakout is valid, there are several conditions: Preferably, the breakout candle and the confirmation candle are the same color. The point where the breakout candle closes must be above resistance or below support. The breakout must have happened with the body of a candle, not with the candle's shadow. Even the closing point of the confirmation candle should be above the resistance breakout candle or below the support breakout candle. But I should mention that the trading volume increases when a valid breakout occurs. Now that you know a valid breakout, we can also check an invalid breakout, so dive down🔴 to the chart below. As you can see, the price tries to be playful😜😜 and break the support line. But there are no buyers to support the price for this movement, so this breakout will be temporary and short-lived. The price will soon return below the Support line. The invalid breakouts are sometimes known as bull traps or bear traps which I will explain in future posts. I advise you to only sometimes look for a straight line for support or resistance. I use support and resistance lines in my analysis to draw trend lines. But when I want to determine the support and resistance of a currency, I draw them as support and resistance zones. Using zones makes you no longer involved in each line's small & fake breaks, and you won't make mistakes with each break. Now that you have learned almost everything about these lines😎😎, it's time to start fishing and apply these tips to real trades. I have considered all the necessary items for trading with these lines in the chart below. You might understand the reason for trading by looking at the picture before reading the description. ( The First Method ) The picture shows the price below this resistance zone, and they tried to escape several times. Still, finally, when the trading volume and the number of buyers increased, it could cross its resistance zone with a strong candle(breakout candle), and then the confirmation candle formed. Now, as traders, we should place our Entry Point(EP) slightly higher than the confirmation candle. And also, be careful;😱 maybe this break is invalid, or it returns below its resistance. So we place our Stop Loss(SL) a little lower than the breakout candle. Now, look at this chart again. But I am going to teach you another method for trading. ( The Second Method ) You should only sometimes enter into a position at one point. For example, when the price returns to its resistance to greet(Pullback), it's a good time to divide your money into two parts & re-enter the position. With this, your average Entry Point will be lower, and the Risk/Reward(RR) ratio will increase. ( I know that the Risk/Reward(RR) is something that some of you are unfamiliar with, so don't worry cause I'm going to talk about it in future posts.) There is another way to trade with these lines. (The Third Method) You've got another way to trade with two Entry Points. You can enter the position when the pullback accrues; the other entry point is a little higher than the highest price before the pullback. In this method, you will be more confident about the position, but at the same time, the Risk/Reward (RR) is decreased compared to the previously mentioned methods. The Stop Loss is the same as the others. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Prince Snow White Charts learned all these tricks along with Doc and the other Dwarves. Excited to try this new knowledge, he immediately returned to Stocktopia😊and applied what he had learned to his trading. To his surprise, his trades became more profitable. The king was pleased with his daughter's improvement, & these lessons were taught to all the traders in the kingdom👑 of Stocktopia. From that day, Stocktopia was known as the kingdom with the most successful traders, thanks to the wisdom of Doc and Princess Snow White Charts.😊😊 Stocktopia's traders lived happily ever after, thanks to the protection and guidance provided by the Seven Dwarfs of Support.😇😇 I hope you enjoyed this story and use support and resistance lines/zones in your trading. But never forget that before using any new method, try it several times to master that method.😎😎😎. Now let's leave the world of stories and return to the real world of traders. Take advantage of the following posts. In the end, I wish you health and success.
Education
by pejman_zwin
80
Pure trendline breakout strategy; Manticore Investems Pure trendline break strategy is based on indicators: Tradelines with Breaks (FREE) - TwB Position entry signals, trendline breakout. We look for signals on the ~h4 interval. We take a position on lower intervals when we see entry signals there as well. Order block Detector (FREE) - ObD Generates us support and resistance for the price (red - sell, green - buy) Pivot Based Trailing Maxima & Minima (FREE) - Pbt Helps determine the current trend of the market on a given interval, serves as an add-on informing us about market trends. In the green zone - buy, red - sell. SuperOSC (FREE) - sOSC Informs us about the strength of the market at a given moment (on a specific candle) In addition: LuxAlgo Price Action Concept (PREMIUM). Strategy description: Basically we trade after large signals generated on h4/d1 intervals. When we take a position we look for the optimal place to enter from m15-h1. We use resistances and supports as SL/TPs. Trading style: scalping / daytrading. Ideal entry setup: 1) Signal generated on the h4/d1 TwB interval. 2) ObD secure our position / ObD do not interfere with a potential sell or buy 3) The trend set by Pbt agrees with the direction we are playing. (Green zone - buy / Red zone - sell). 4) The candle after which we enter is not drawn on the sOSC Examples below: H4 interval buy signal: 1) Pbt - Green buy zone 2) TwB - upward signal 3) sOSC - the candle that generated the buy signal did not cross the dashed lines When we take a position we go down to lower intervals to best estimate SL:TP H1 interval: H1 interval buy signal: 1) Pbt - Green buy zone 2) TwB - upward signal 3) sOSC - the candle that generated the buy signal did not cross the dashed lines Estimation of risk and timing of exit: Risk estimation: 1) We use ObD to determine the optimal risk, they serve as resistance to the price. 2) We set positions below the buy / sell zones from Pbt 3) We go to lower intervals, set SL under the TwB level of the opposite trendline Determining take profit: 1) We play out positions to supports or resistances generated by ObD 2) We close the position when we see that after the close of the h4/h1 candle the sOSC is drawn above or below the dashed line 3) We can close positions when we see that the movement is losing strength and there are opposition signals to our position on low intervals. It works best to close positions after reaching ObD supports/resistances in conjunction with a drawn-out sOSC. LuxAlgo Price Action Concept indicator (PREMIUM), serves as an aid in determining the strength of a given support or resistance (the higher the %, the stronger the resistance)
BITSTAMP:BTCUSDEducation
by Manticore_Investments
2
✅ 4 Methods to Confirm EntriesYou should make sure that your reward is bigger than your risk. It is up to you what your optimal risk to reward should be – ideally you should have a risk to reward of 1:2 or 1:3. ✔️Trendline Reversal & Break The trader should constantly monitor both the support and resistance trendlines and redraw them as the old ones break and new ones form. When an intersection of the projections happens, one of the trendlines must be broken and the other will most likely continue to hold the price. We trade in the direction of the trendline that remained unbroken with potential entries at the trendline breaks. ✔️Support & Resistance Look at the price chart and observe the support and resistance levels that you have drawn on the charts. You will look to place sell orders at the resistance levels and buy orders at the support levels. Stop loss below the support level or above the resistance level depending the call you’re on. ✔️Fibonacci Retracement Fibonacci retracement levels connect any two points that the trader views as relevant, typically a high point and a low point. The percentage levels provided are areas where the price could stall or reverse. These levels should not be relied on exclusively, so it is dangerous to assume that the price will reverse after hitting a specific Fibonacci level. ✔️Consolidations A price consolidation is a period when the price is moving sideways without any significant advancement in the upward or downward direction. A price consolidation can take any form. It could be a rectangular pattern (often called a range), any of the different types of triangle patterns, a rising or falling wedge, a pennant, or a flag. Depending the pattern that takes place, you’re gonna look for entries and stop loss bellow pattern’s invalidation. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
Wyckoff Phases in PracticeWe all know that market moves in Phases. The four most popular phases are – 1️⃣Accumulation 2️⃣Markup 3️⃣Distribution and 4️⃣Markdown Mr. Wyckoff analyzed these phases further, esp . Accumulation and Distribution, to understand the price behavior for potential opportunities to trade/invest in the market. In this tutorial I am going to have a brief discussion about Accumulation-sub-phases of the market with the help of an example that I came across today. ✅Phase A 🚩This phase is preceded by a major downtrend. 🚩Begins with a selling climax ( SC ) - Large down bars with abnormally high volume (see B). 🚩SC is followed by the largest rally in the major downtrend, associated with good buying volume . This Automatic Rally (AR) represents the change in character (ChoC) of the market - buyers taking over. 🚩Market retest the level B with a lower volume (supply) – Secondary Test (see D). ✅Phase B 🚩Usually the longest phase. 🚩Higher volume during rallies (eg. E) and lesser during retracements. 🚩Even if volume is high during retracements, price fails to make new lows. 🚩More secondary tests (see F) held at the support zone (B and D). 🚩Market consolidates testing supply and demand with no particular direction – Consolidation. ✅Phase C 🚩This phase is the smallest but the most important. 🚩Usually ends with a Spring (not in the above case). 🚩You would often see final shakeout of weak buyers in this phase. Price would dip underneath the support zone (B, D and F) and reverse sharply back above support. 🚩Perhaps the best time to enter for those who like to take low risk high probability trades. 🚩In the above case, point G was just another test of support Zone. ✅Phase D 🚩You would see swift action in this phase. Wide up bars (with high volume ) and small down bars (with low volume ) -Sign of Strength. 🚩This also represents the change in character, which now differs from the consolidation phase. 🚩ChoCh - Notice two blue rectangles and the price action in them. The action differs vehemently from the previous phases - wide bars with ease of movement. 🚩Price breaks the resistance zone (in most cases resistance would be the high of automatic rally). 🚩It again retests (after breakout) this resistance which now starts acting as support. This is called the Backup action. 🚩Further (re)accumulation can be seen here in many cases. 🚩This is perhaps the best time for those who like to enter after confirmation (A higher high; break of resistance; price jumping outside the range) ✅Phase E 🚀Accumulation is over and a trend is established - Markup phase Not all bear markets end up with these accumulation-sub-phases. You may often see V-shaped recoveries just like what we experienced after March 2020 lows. But you will surely find some stocks or markets that moved in line with Wyckoff phases. Thanks for reading. Do like and comment. 📣Disclaimer: The views are personal only. Apply your own due diligence before making your investment decisions.
NSE:MCXEducation
by Bravetotrade
3
Finding support and resistance zonesSupport and resistance levels are key concepts in technical analysis, which is a method of forecasting the direction of prices through the study of past market data, including price and volume. These levels are considered to be key points at which the price of a security is likely to either find support and be unable to fall further, or encounter resistance and be unable to rise further. Support and resistance levels are often based on historical data and the past behavior of market participants. For example, if a stock has consistently found support at a certain price level in the past, technical analysts would consider that level to be a key support level. Similarly, if a stock has consistently encountered resistance at a certain price level, that level would be considered a key resistance level. Support and resistance levels can be identified by looking at a stock's price chart, which plots the price of the stock over time. When the price of a stock is trending upwards, the support levels are typically found below the current price, and the resistance levels are found above the current price. Conversely, when the price of a stock is trending downwards, the support levels are typically found above the current price, and the resistance levels are found below the current price. Traders and investors often use support and resistance levels to make buy and sell decisions. For example, if a stock is approaching a key support level, an investor might consider buying the stock in anticipation that it will find support at that level and be unable to fall further. Similarly, if a stock is approaching a key resistance level, an investor might consider selling the stock in anticipation that it will encounter resistance at that level and be unable to rise further. Because the stock market operates on a schedule, with trading taking place during specific hours of the day, it is natural for support and resistance levels to also be centered around certain times of the day. For example, if a stock has consistently found support at a certain price level during the early morning hours, that level would be considered a key support level during that time of day. In conclusion, support and resistance levels are key levels at which the price of a security is likely to either find support and be unable to fall further, or encounter resistance and be unable to rise further. These levels are often based on historical data and the past behavior of market participants, and are commonly used by traders and investors to make buy and sell decisions. Because the stock market operates on a schedule, support and resistance levels are often centered around certain times of the day.
Education
by RobinhoodFX
How to Study Price and Wave volume RelationshipHi 👋 In this post I would try to throw some light on the Price & Wave Volume relationship (popularized by late David Weis). This method may help trades in two ways: 1️⃣Ride the trend 2️⃣Picking the end of a rally I came across this chart randomly and found that there are a few principles that I can discuss with the help of this chart. Before reading any further I want to disclose that this technique was not originally developed by me. However, different authors may have different interpretations when it comes to some techniques of discretionary trading. This is a small piece of what I have learnt as a big follower of price action trading. I don’t want to go for bar by bar analysis here due to time and space constraints, so I have marked a few important places (as numbers in green rectangles) that are important and need to be discussed. The numbers in white are the cumulative wave volume in crores. This means just keep on adding the volume of each up bar until there is a reversal. I have taken the reversal a 2points on closing basis. Which means I keep on adding the volume until the price closes 2points below the close of the previous bar. The opposite is true for down waves. 🚀Point1 If you look at the upwave preceding the downwave at point1, it is the sharpest of the rallies from March 2020 lows (scroll back the chart a bit). Also wave volume is the highest (37cr) compared to 10,19 and 18cr on previous upwaves. At point 1 there is 10cr volume on the downwave, which is the highest on any downwave in the rally from Mar2020 lows. This is an alarming signal that sellers are getting active. But this may not impress us to liquidate our trades as we need further evidence to confirm this weakness. 🚀Point2 Here we have very high volume accompanied by the widest bar (in the rally) but closing in the middle. These three things confirm here that sellers have stepped in and the stock is weakening. 🚀Point3 There is a rally back to the highs but this time with lesser volume (29cr compared to 37cr) than preceding rallies. This is our second confirmation that buyers are turning there back at this level, at least for now. This is a sure exit opportunity for investors who bought at the lows. 🚀Point4 There was a sharp reaction with huge volume of 31cr and very wide bar, closing off of its lows. At this point there is still confusion that the trend has reversed or not. If it was a reversal then there would have been a follow through of 31cr volume on the downside but it is not so. For the next 3 days price sustained above the low of this wide downbar. 🚀Point5 The sellers again tried to push to the stock down but look at the volume in this wave. Are you getting it now? Its just 13cr instead of 31cr on the last downwave. This infers here that seller are not interested. So if seller are not interested then what will happen? Buyers will take over. 🚀Point6 The sellers tested the level of 1, 4 and 5 a few more times, buyers holds it and that develops a support. There was a very strong rally (compared to rallies in the last one year) back to the highs and volume is again 23cr which is lesser than volume at previous highs. Lesser volume could have 2 interpretations – there are less sellers this time and/or buyers are not interested. 🚀Point7 The stock is back to the support again. But volume on downwaves is much lesser in relative terms. In fact, it decreasing from 13 to 4 and then 2cr (see chart). Where have the sellers gone? They don’t want to sell at the support. 🚀Point8 Lack of selling leads to buying and eventually to new highs. Notice that there in very less volume at point 8 (only 4cr). This time sellers attempt (5cr) was failed quickly (without hitting support) and new highs were made outside resistance (developed at 2, 3 and 6). At this stage, when the price is closing outside the resistance, I would expect more volume to come in. More volume at this stage would indicate that buyers are interested but that is not the case here. 🚀Point9 Point 8 looked like a failed breakout attempt. The price fell back into the trading range (between support and resistance ). If I look at volume here, it is 15cr on this downwave. In the immediately preceding fall with 17cr it touched the bottom end of the range but this time with 15cr it is just at the middle of the range. This signifies re-accumulation at point 9. 🚀Point10 Re-accumulation lead to a rally back into resistance. We have 13cr as of now. Its too early to say, before this upwave ends, but 13cr is less (for me at this point) to push it any further. It seems holding back in the range. 🚀🚀Final thoughts This is a very nice and rare example showing both distribution (by the seller at resistance level ) and accumulation (by the buyers at support level ). Normally the price peeps outside the range on both sides and fails to follow through, until there is a decisive break on either side. I hope you learnt something new in this post. Now you can do one thing, press 🚀 to encourage me to write more educational stuff. Thanks for reading.
NSE:ADANIPORTSEducation
by Bravetotrade
Patience is key - This video is to help a fellow trader on TVI can't say it enough that patience is key. I got a lot of messages over the past evening from fellow traders who are attempting to use strategies that they find or strategies that they are trying to develop and they're using the oscillator which I've created. Here is a link to it (click the image) One particular treasure found me on another community and wanted to be able to get in touch with me here on tradingview and as a result he sent me a message along with a bunch of screenshots. One of the messages described everything for me and in that moment I knew exactly what he was doing wrong and I was under the impression that he's simply entering way too early. sure enough I looked at the images and the screenshots that he sent and it played out exactly what I thought was going on. His entries are way too early. This brings up my key topic that patience is key. also you should always be setting your support and resistance levels because you don't really want to trade Beyond them. If you do not have them set up, if you do not have trendlines setup then you are simply trading to a blind area of a price point and you're just hoping that it's going to get there. to be honest with you the market is always hoping that you did not do your technical analysis and that you are going to fail. So in this video you can see how I am giving a breakdown of what this traitor did right and what he did wrong. So @harry_hunter on tradingview this is for you
Education
by CoffeeshopCrypto
8
A little peek into how I catch sniper trades with zero drawdownSorry guys, I didn't post today, but caught a cracker gold sell. I would like to give a small insight to how I look for sniper trades, especially in London open. If you look at the 2 red arrows, you will see that during New York yesterday, price made a high of the day at the 200ema, which acts as a resistance/support, in this case it is a resistance for obvious reasons. The Asian session High came up to test this same zone, as seen on the second red arrow. Effectively making a double top in the higher time frame, that is the 1hr chart. Price then broke below the 200ema, as well as the 50ema(red) in the Asian/London changeover, when price broke below the 50 ema, that ema became resistance and not support, price came back up to retest that resistance as indicated with the yellow arrow. When the price could not break that ema, and instead ended with an engulfing going short, that was my perfect entry for the morning. 140pips have never been easier. Patience and confirmation are key. This is the simplest form of my strategy, there are obviously more components to how I trade, but this is the simplest and most fundamental way for catching great entries. Boost if you like what you see. Safe Trading P.S. GJ is Bae!!
OANDA:XAUUSDEducation
by faddy