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Trading Strategies and Style - Price Action Analysis Hello everyone: Recently I have many newcomers/subscribers/followers on my various channels and platforms, so I want to make this video to summarize what exactly are my strategies and style in trading. It's important to understand everyone trades differently, and different styles and strategies. What's more important is to understand if the strategies and style work for you and you only as a trader. Does a typical style/strategy satisfy your vision in trading ? Does the risk/reward make sense to you as a trader ? Does the trading plan and management sound feasible and realistic to you ? Do you have the right mindset and emotion when it comes to trading these types of strategies and style ? These are the questions to think about when you are serious about trading. So, let's take a look into how I trade and what are the key important aspects that I look for in trading. -Price Action Analysis -Impulse VS Correction -Continuation VS Reversal Correction/Structure -Multi time frame analysis (top down approach) -Risk Management (3:1 RR) -Trading Psychology (Mindset and emotion) (FOMO, Revenge Trading, Over Leverage Trading) As always, any questions, comments or feedback welcome to let me know. Thank you Jojo
Education
by jojofang0901
25
Macroeconomics 101: inflation, bonds, interest rates, stocksHello fellow traders and dear padawans. The equities market has been hit very hard the past 3 weeks or so, specially growth stocks. I think it is important to address what is happening behind the scenes that caused the selloff in the equities market so that many of you can better understand what is going on. This is a very basic explanation of macroeconomics and by no means thorough but I know that many of my followers would benefit from it at times like these. To establish a common ground I will start with some definitions of terms. I wanted to keep things straight forward so I am getting these definitions from investopedia.com because they did a much better job than I would, defining terms thoroughly yet concisely. Keep in mind these are short definitions of concepts that deserve in-depth study if you want to understand them fully. However, for the purpose of this discussion what follows is enough (you can always read full articles on investopedia.com or somewhere else). If you are well versed on those you can certainly skip ahead (or use this as a refresher). DEFINITIONS Inflation : Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed a a percentage means that a unit of currency effectively buys less than it did in prior periods. Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline. Bonds : A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments made by the borrower. Treasury Notes : A Treasury note (T-note for short) is a marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. Issued in maturities of two, three, five, seven and 10 years, Treasury notes are extremely popular investments, as there is a large secondary market that adds to their liquidity. Interest payments on the notes are made every six months until maturity. Treasury notes, bonds, and bills are all types of debt obligations issued by the U.S. Treasury. The key difference between them is their length of maturity. For example, a Treasury bond’s maturity exceeds 10 years and goes up to 30 years, making Treasury bonds the longest-dated, sovereign fixed-income security. Federal Fund Rates : The federal funds rate refers to the interest rate that banks charge other banks for lending to them excess cash from their reserve balances on an overnight basis. By law, banks must maintain a reserve equal to a certain percentage of their deposits in an account at a Federal Reserve bank. The amount of money a bank must keep in its Fed account is known as a reserve requirement and is based on a percentage of the bank's total deposits. They are required to maintain non-interest-bearing accounts at Federal Reserve banks to ensure that they will have enough money to cover depositors' withdrawals and other obligations. Any money in their reserve that exceeds the required level is available for lending to other banks that might have a shortfall. Note: although the Federal Fund Rates are charged to banks, banks pass them down to clients' personal/auto/student/mortgage loans and credit card interest rates so these interest rates cascade down to society as a whole. With those out of the way we can start discussing the relationship they have with one another as well as the equities market and understand what is happening with the stock markets. RELATIONSHIP BETWEEN INFLATION AND INTEREST RATES In general they have inverse correlation, meaning when one goes up the other goes down. The inverse correlation happens because when interest rates are low people feel encouraged to borrow money, which leads to more spending thus creating more demand of goods and services than supply. When demand is bigger than supply prices will increase to both slow down demand and also (perhaps more importantly) to increase profit margins, which leads to inflation. Because the Fed can manipulate short-term interest rates via the Federal Fund Rates they are able to somewhat control inflation. When interest rates are high the process is inverse to the one described above: people feel discouraged to borrow and spend money; instead they prefer to invest in a fixed income instrument such as high yield savings accounts, CD, or bonds to take advantage of the high yields. It is therefore the job of the Fed to keep inflation and interest rates in balance. Although not everybody agrees, it is understood by economists in general that some inflation is good for economy because it encourages consumers to spend their money and debtors to pay their debt with money that is less valuable than when they borrowed it. Thus some inflation drives economic growth. One of these economists is John Maynard Keynes, who believed that if prices of consumer goods are continuously falling people hold off on their purchases because they think they will get a better deal later on (who doesn't like a good discount?). Another important element that factors into inflation is how much liquidity is injected in the economy (cash, or money supply). More money would translate into more demand and rise in prices. RELATIONSHIP BETWEEN BOND PRICES, BOND YIELDS (or INTEREST RATES), and INFLATION Bond prices and yields also have an inverse correlation: if the bond certificate price (AKA face value , or what the bond certificate is worth) increases the yield decreases and vice-versa. To make things simple and to better illustrate how bond prices and yields are related the example below uses what is known as ZERO-COUPON BOND, where the yield is derived from the relationship between the coupon payout and the bond face value (back in the day the bond certificate--a piece of paper--had small coupons that investors would rip off and present to the borrower to redeem their yields. That terminology is still used to this day although these coupons are not used anymore). Example: if the bond price is $1,000 and the borrower receives $1,100 back at the end of one year, the so-called coupon rate (the yield paid for each bond certificate throughout the lifetime of the bond) is 10% . So the formula to find the coupon rate is: COUPON RATE = ANNUALIZED COUPON VALUE/BOND FACE VALUE; in this case, 100/1000, or 0.1. That formula helps to understand why the bond price and bond yield (coupon rate) have an inverse correlation. It is important to keep in mind that bond yields reflect genereal interest rates. Like interest rates they can move up or down Like other asset classes such as options, a bond certificate holder can sell that certificate back to the market (known as secondary market). If the current bond yield is lower than when the bond holder "bought" their bond it may be interesting for them to consider selling it because it is now more valuable than when they bought it due to the inverse correlation discussed above. So for bond holders, decrease in interest rates is beneficial. Hopefully it is also clear that a rise in inflation that results in higher interest rates affects bond holders negatively. Who would want to sell a bond that is now less valuable than when they bought it? However, higher bond yields are attractive to new bond investors because it gives them more return for their investment overtime. THE IMPORTANCE OF THE 10-YEAR TREASURY NOTES AND ITS YIELD The government sells Treasury Bills/Notes/Bonds via auction. The yield of bonds is determined by investors' bids. The 10-year-yield's importance goes beyond the rate of return for investors; mortgage interest rates are derived from the 10-year yield for instance. But for the purpose of this text, it is important to understand that the market relies on the 10-year to gauge investors's confidence. Here we see another inverse correlation: if confidence is high, the 10-year yield rises and bond prices drop and vice-versa. Any change in the 10-year yield is closely watched by the markets and has enormous impact in other asset classes. PUTTING IT ALL TOGETHER: BOND YIELDS, STIMULUS, EMPLOYMENT NUMBERS, STOCKS, AND THE FED When Treasury bond yields rise bonds become an attractive investment because it is a safer than stocks--specially growth stocks where investors are placing their money on future success as opposed to present profits--since it is backed by the US government and provides fixed returns. While bond investors don't enjoy the big rallies of the stock market they also don't expose their capital to volatility and crashes. With the reopening of the economy in clear sight due to vaccination, and the better than expected job reports investors started fearing higher inflation. That is a simple math: more people making money and out on the streets will boost consumption, which will lead to rise in prices. As explained before, higher inflation causes the Fed to adjustment interest rates, which causes bond prices to fall and yield to rise. Despite what Jerome Powell has said last week--that inflation rise is going to be temporary--investors didn't feel much confidence, which caused the recent sharp rise in the 10-year yield Treasury. With that, bonds became a good alternative to the stock market, causing investors to reallocate some of their capital into bonds. That and the fear caused by falling prices and the media (most of the media fuels panic--one month later everything is green again) resulted in the huge selloff we have seen the past weeks. CONCLUSION Phew, that was a lot. As I wrote on the preface of this text this is an overview of the subject matter so you can always read up on each one of the areas covered here to get more in-depth knowledge. However, I think this provides a good summary of what is going on on the markets right now. Hopefully you will have filled some gaps on your knowledge and will start making more sense of the interrelationship of the many aspects of economy covered here. This is a difficult subject to write about so I apologize if any idea is unclear. I can always clarify anything on the comments. Bottom line: when things are clearer (inflation + interest rates) the markets will most likely stabilize and follow its due course. Growth stocks will continue growing (perhaps at a slower pace) and you will continue making good returns on good companies. I am using this selloff as an opportunity to lower my cost basis and enter positions in stocks that were too expensive before. Sometimes a pullback is all you were looking for even if you lose money in the short term. And hey, one can always buy put options to hedge against their long positions. Good luck and safe trades! ===If you get anything out of this text, please hit the like button and/or follow for updates and new publications.=== ***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
FRED:WM2NSEducation
by Safe_Trades
6
Crypto backtesting and chart work in price action analysis Hello everyone: Today let's do some backtesting and chart work on the crypto market. I have done similar videos on Forex and Indices’ market, and I want to do one as well for crypto to showcase price action that will happen in any market, any time frame. Make sure to check out the below videos on why I backtest and do chart work. This is to help us to get better at trading as a whole, and remove emotional decisions. I will dig back some crypto pairs and look at the bullish impulse on the HTF, and go down to the LTF for confirmation and entries. Any questions, comments, or feedback please let me know :) Thank you Jojo Backtesting & Chartwork on Forex Market Backtesting & Chartwork on Indices Market How & Why I backtest: Prevent Blowing an account by backtesting:
BINANCE:ADAUSDEducation
by jojofang0901
39
Equity Curve - A Reflection of Your Trading PerformanceHi Traders, today's topic is regarding 'Equity Curve' as the best reflection of your trading performance. Personally, when I was new into this business It was uneasy for myself to put aside the monetary aspect and truly trust the process. In trading, money comes and goes in a blink. To be consistently profitable, you MUST learn how to protect your existing capital, and your profits. Money will follow once you have consistent execution and action plan. "In trading/ investing, It is not about how much you make but rather how much you don't lose." - Bernard Baruch Equity Curve A - Reasonable Risk-to-Reward - Emotional detachment - Shallow drawdown - Consistent execution (Back-tested strategies) - Comply to trading plan Equity Curve B - Constantly search for the 'best' trade (Gambling behaviour) - Steep drawdown (Impulsive decision) - Over-trading & Revenge trading - No clear trading plan - Inconsistent action plan (Bad performance) Emotion acts like a two-edge sword, It is about when to trust your gut-feeling/ intuition. Understand your personality, make adjustments from there. Comment down below how's your current equity curve looks like? Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
4
Reversal Impulse Price Action - Trend Change Confirmation Hello everyone: Welcome back to another price action structures/patterns video. Today let's take a look into the reversal Impulse price action from the market. I have back tested and seen these types of price action happen very often in any market, any time frame. Its signaling a very strong trend change and reversal momentum from the price. Let's take a look into what it looks like usually, and how to effectively take advantage of these types of price action in the market. Seeing them on the HTF, giving us strong bias for a reversal trend change coming. Seeing them on the LTF, signs of reversal from the LTF first, and leading towards the beginning of the HTF reversal move. Remember, Multi-time frame analysis is key. If we spot a potential HTF reversal impulse, then likely LTF price action is also showing reversal price action structures/patterns. We want to pair as many positive confluences as we can together to give us an edge entering the trades. As always, any questions, comments or feedback please let me know. Thank you Jojo
OANDA:US30USDEducation
by jojofang0901
39
A clean trading routine [Advanced/Professional]Prepare your environment > Build your watchlists on Tradingview, keep a few clean charts and 1-2 for think-drawing on > Have your log, strategies, noting table (for setups) and watchlist in excel > Have an accessible database (numbers, comments, and screenshots) Weekend > Clean up your charts, alerts, Tradingview tags. > Review your excel watchlist notes, and look at your Tradingview watchlists on D1. > If you want to, look at economic calendars and high impact information, do some research. Sunday 10 pm (London Time) > Get ready to micro-manage any trade close to SL if spreads widen. > Check where everything opens and what happened over the weekend in the world you might have missed, especially if there is a big gap somewhere (Oil, NatGas, EURUSD during french elections...) *** Weekdays *** Morning (8 am, or later if you sleep late it's ok we aren't day traders) > Check your positions (should be a tag on TV) and trail, get out, or don't. Manage them. > Check all watchlists charts on H4/H1 with your excel notes on screen 2, or half of your only screen. TV also has "headlines" news on the right banner, below the alarm symbol. > When stumbling on an interesting pair/commodity, update its entry in excel, place an alert, and in some cases tag it. Mid-Afternoon (3 pm) > Check all watchlists charts on D1, remember what's going on, get a global view of everything. > Get into anything out of the ordinary, take a closer look at any missed alert. Evening (10 pm) > Get ready to micro-manage any trade close to SL if spreads widen. > Check your entire watchlists just like in the morning. > Tag and set an alarm on interesting setups, if they are close to entry set an order or stay late. In between the 3 daily full scans > When an alarm goes off or you just notice by yourself a forex pair or commodity doing what you want, enter it in your "noting table" in excel, and see if it fills enough criteria. Make sure to also compare the setup with past similar setups you got in your database. If it does fill enough criterias look for entries, and when close to entries with all necessary conditions filled: set an order with your broker. > Log your trades as you get filled, then update the log when you get out, or when it went to target and you missed. > Do research & go out during free time and during the weekend. In the week never be away more than 8 hours in extreme cases. A lot can happen in 8 hours. > Make sure to tag and pay attention to anything even something not great, a lot can happen in 8 hours. Better to waste a few minutes a day on mediocre setups (that you don't take!) than miss a monster and listen to sad songs for a week. > No point looking at your positions & potential positions every 5 minutes if you have alarms & check 3 times a day there should be no need to be OCD.
Education
by MrRenev
Flag Pattern - How To Trade It?Hi Traders. Today's topic is regarding one of the most traded patterns of all time. One thing about trading patterns, is that they are very context-based. Imagine you're taking a head & shoulder setup within a wide range, does it makes sense? The answer is no, most likely you'll stuck in a chugging condition draining your mental capital. Pattern trading is something requires good understanding of the pattern itself, knowing when to not use it, is as equally important as when to use it. In this post, we'll assume the scenario is an uptrend. Scenarios: Pending order above the flag - This is the typical textbook entry, where a pending order is placed above the top band of the flag, anticipating a break & flush higher. One big problem with a pending order, if that you'd sometimes get tapped into some low quality setup due to probes or spikes. Taking the re-test of the bottom band - This is a rather aggressive way to trade the flag pattern. But it's good way to trade it if you've enough experience and confidence in the continuation of the trend. By entering at the bottom band, you're setting yourself in an advantage due to your wider SL and better Risk-to-Reward. Where should I place my SL? - This may seem easy, but believe or not that majority is always having their SL way too tight, usually just a few pips below the flag. Even though majority know its not the right thing to do, but that tend to be the case. SL signals an invalidation of a particular setup, if it is triggered. If you're constantly getting stopped out with your thesis still intact, watching market going into your intended direction is a big slap in your self-confidence. Best way to manage your emotion is to use an ATR-based SL (systematic), or back-test it. Where should I place my TP? - This is a tricky one. Some utilize Risk-to Reward based target (Eg. 1:3RR), while some prefer using trailing stops. Personally, having your targets at key technical zones make more sense. There's no right or wrong! It all depends on what suits you the most! How can I maximize my profit? - The only way to maximize your profit, is to find out the MAE (Maximum Adverse Excursion) & MFE (Maximum Favourable Excursion) of the strategy. How far did the price run after the TP is met (MFE)? How far did the market goes against you before moving into your favour (MAE)? Eg. If 90% of the valid flag pattern has a MAE of 10 pips, why should you set your SL 25 pips away? Do your due diligence to find out what works best. What's the current phase of the trend? (1st, 2nd OR 3rd) - From my experience, I always split a trend into 3 different sections. 1. The first phase is where the momentum is fresh and piping hot, strong impulse with clean price action. 2. The second phase is where price is slowing down with spikes. The logic is simple, for any market to move higher it requires sellers, due to the zero-sum game. What causes a trend is the logic of supply & demand imbalance. This phase is where market is trying to consume more opposite directions' players, to have further continuation in the initial trend. 3. The third phase is where new players and late joiners chasing the market, without knowing the momentum is dying out. Usually it is very choppy with grinding sort of condition. This type of market condition gets people frustrated and its mentally exhausting. Majority are entering and exiting as the market goes nowhere, causing it to chug back and forth. "Trading is a lonely business, have faith in how far you can go." - Neoh Let us know in the comment section what's your favourite continuation pattern! Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
26
5 Tools For Dips, Crashes, and VolatilityVolatility is challenging. But it can also be exciting if you're ready for it. In this idea we're going to show you five tools to make better decisions for when markets are volatile, choppy or bearish. 1. Invert Chart Your Chart 📉 Invert your chart to see how it looks turned upside down. Open a chart and type ALT + I on your keyboard. On a Mac, type ⌥ + I. This keyboard shortcut flips your chart upside down. Now ask yourself: would you buy or sell? Selling an inverted chart = bullish. Buying an inverted chart = bearish. Challenge your bias. 2. Regression Trend, Pitchforks, and Fib Retracements 📐 Certain drawing tools work better than others in volatile markets. That's because they are designed to measure dips, bounces, and statistical anomalies. For example, the Regression Trend tool shows upper and lower bands representing a number of standard deviations away from a trend line. Pitchfork drawing tools help you see trends or channels while having standard deviations plotted at the same time. You have access to four different Pitchfork drawing tools. Finally, there's Fibonacci Retracements . Harness the golden ratio to plan for bounces and possible levels of support. 3. Pine Script Public Library 👨‍💻 Seek help from others, especially the coders. Head over to the Pine Script Public Library and start exploring the scripts coded by other traders and investors. There are custom tools, strategies, and indicators for all market conditions. Remember, Pine Script is also how you can automate your strategy and create your own indicator. Remove emotion from your decision-making. Write your trading or investing rules in code. 4. The Long and Short Position Tool 🗺 Plan your trades before you make your trades. The Long and Short Position Tools are how you map out your trade ideas directly on the chart. Set an entry, an exit, and a take profit target. See your trade on the chart and visualize it. Planning your trades with these tools will save you a headache or two. Learn how to use the Long and Short Position tools here. 5. Education on TradingView 🎓 The Education section on TradingView is free and open to all. Here you will find thousands of publicly available guides to trading and investing. Each guide was made by a TradingViewer just like you. Learn about their strategy, how they approach markets, and what their processes are. You can also follow the authors, ask questions in the comments, and reach out for additional help. Thanks for reading this guide! We hope you enjoyed it and please leave any questions or comments below. Also, please share your favorite tools for managing trades in a choppy market.
Editors' picks
TVC:VIXEducation
by TradingView
62
The Ultimate Stop Loss GuideHi Traders. Today's topic is requested some of the followers, wondering why they're constantly getting stopped out OR misled by the "stop-hunt" concept. Have you ever questioned what's the purpose of a stop loss (SL) in the first place? Majority is taking SL as a tool to maximize their position sizing rather than an emergency break preventing yourself from a heavy collision. SL is nothing, but the final defense that determines the validity of the setup. Once it is being triggered, admit that you're wrong, close out the position and move on. Either way, if you're constantly moving your SL OR having it too tight, you've clearly misunderstood the purpose of SL all the while. Above illustration is solely for demonstration purposes, not a general indication of all. Questions before you determine a SL location: 1. Is my SL obvious? Is it sensible? 2. Where's the majority placing their SL? 3. If it is triggered, is the setup still valid? 4. Should I re-enter? 5. Is the Risk-to-Reward reasonable? 6. Re-assessment (Does my strategy fits well into the current market context?) Solutions: - Emotional control (Constantly remind yourself the purpose of a SL) - Use an ATR-based SL (Eg. 1 ATR below the swing low) - Determine the volume/ volatility of the market (Eg. If the volatility is high, give it more room and expect some spikes) - Back-test (How to improve your expectancy? Prove it through statistics) - Ensure the Risk-to-Reward is favorable before you even consider placing a trade - Forward-testing with smaller sizing to identify the performance in the live market condition - Wider SL does not mean it is better! No matter how good you are, there will be times where the markets prove you wrong. Keep learning and practicing! Stop the blame, the only person in charge of your decision and success is you. "Losses are necessary, as long as they are associated with a technique to help you learn from them" - David Sikhosana Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
17
Is there stop loss hunting in trading ? How to deal with it ?Hello everyone: Today I want to discuss a common discussion about new and experienced traders. “Is there stop loss hunting in trading?” Many wonder, since they can all recall the moment where price just hits their SL on a trade, and then the market quickly turns around towards their desired profit direction. I want to dig deeper into this and explain it with different viewpoints, from a technical and psychological view. The vision I am trying to provide is that, thinking about is there stop loss from the brokers won't help you to get better in trading. It's a mindset thing we need to understand. For example, whether there is or isn't a stop loss hunting, it's nothing you or I can change or control. It is what it is. However, if you understand this, then it's about adjusting your plan, strategies and trading style to these types of volatility moves and come up with the correct mindset to work around it. Technical part: More often, people set their SL and see their trades get taken out just a few pips above before reversing the opposite way. Dig deeper into this. Is it a fake breakout, is it just being impatient and jumping the gun? Is there LTF continuation/reversal correction that gives you bias to enter a long/short ? Is your analysis aligned with the higher time frames ? Many factors on why a trade is at a loss, no need to jump right into a conclusion that it's the broker who is stop hunting you. This is why we always look for confirmation and confluence when we enter trades. Just because the price breaks the support and resistance line people often use, it's not an automatic buy or sell. Same goes with trend lines and other indicators people use. We need to confirm it with price action. After an impulse phrase, was there a continuation correction phrase? If not, then it doesn't justify a buy entry. This is also why we backtest so we see these types of price action often, and acknowledge what we need to do in order to work our ways around it. Psychological part: When traders take a loss in this way, hitting the SL and reverse, this creates a negative emotion in them. They often get frustrated and upset, hence in human nature, we tend to blame others. But take a step back and understand this: The market can do whatever it wants to do. Most beginner and newcomer traders think the market MUST follow their strategies and style. If it doesn't, then something is wrong with the market, the brokers, their mentor/coach, their strategies...etc. This negative mindset needs to change. First of all no strategies and style will promise you 100% strike rate and profit. Any strategies you take will incur a loss, it's how you deal and manage it that will show you as a consistent or inconsistent trader. Second, if you have experienced several losses due to the “Stop hunt” in your own mind, then instead of blaming the brokers or the markets, start looking into your trading plan and management. Are you experiencing FOMO ? Are you over leverage trading, and revenge trading ? Are you taking into consideration your risk management ? Entry, SL/TP, how much to risk ? Is it consistent with your plan ? These are the things you can control, rather than external factors which you can not. Adjust yourself. Third, remove your negative emotion from your losses. Take it as a learning curve and experiences earned. Then the next time you enter a trade, you will remember the lessons that were taught to you by the market. This is why we journal our trades so we can look back at them and understand what we did. I hope these few pointers will help some of you to get back on the positive direction of trading. No need to think and get upset if there is a stop hunting of your trades. Instead, use that towards your advantages. If you consistently see a false breakout and reverse, then come up with a strategy and plan to capture that reversal move. No need to blame the market or the broker, that is something you can not control. Jumping brokers to brothers simply won't help you to eliminate that psychological mindset of a stop hunting. I will put below several other educational videos on the topic we discussed today. As always, any questions, comments or feedback welcome to let me know :) Trading Plan: Risk Management: Trading Psychology: FOMO: Revenge Trading: Over Leverage:
Editors' picks
BITSTAMP:BTCUSDEducation
by jojofang0901
68
How Much Should You Deposit / Invest?Hello TradingView Family, this is Richard, and today I am going to answer a question that I get asked a lot. Question: How Much Should I Deposit / Invest? The answer to that question is very subjective. Some say that "a minimum balance of 10 000$ is required", some others say "start small and then deposit more on the go". In my opinion, to know how much to invest, you have to start the other way around. How much risk per trade do you feel most comfortable with? Is it 20$? 50$ or 100$... Those who know me, know that I enter with a fixed risk per trade and always target double. For some of you, 20$ is nothing, and the 40$ reward isn’t worth it. While for others 20$ may be too much, and thus can’t handle the loss. Find that 1% risk per trade that suits you best. Your 1% risk should not be too much for you, so you won’t get emotional. In parallel, it shouldn't be too small, as then you won't take your trading seriously. Find that 1%, then make it x100, that’s how much should deposit. All Strategies Are Good; If Managed Properly! ~Rich
COINBASE:BTCUSDEducation
by TheSignalyst
86
Meet Our New Drawing Tool: Price NoteWe created Price Note to make it even easier to attach notes at specific prices. We know how important it is to keep detailed notes on your favorite charts and our new drawing tool will help. How to create your first price note 📝 1. Select the tool from the Annotation Tools panel. This is the same place where you find the Text tool. 2. Place two anchor points. The first point sets the price, and the second one is the coordinates of the price label. 3. Add text to appear along the Price Note by opening the settings dialog by double-clicking on the note. You can also change the line and text colors from the settings dialog. Use keyboard shortcuts when working with Price Note! 1. Press Ctrl (Windows) or command ⌘ (Mac) while placing a point so that the point is drawn to the nearest symbol value. This keyboard shortcut turns on your Magnet. 2. Press the Shift key while placing a point to set the slope of the line in multiples of 45 degrees. Pro tip: this is especially helpful for placing Price Notes at perfect angles. Perfect angles = beautiful chart. 🎨 We hope you enjoy this new drawing tool. By the way, the chart above shows Bitcoin Dominance, S&P 500, and Tesla. We've placed price notes as examples for each symbol. Feel free share to share any charts you make with a Price Note below in the comments. Please also share any questions or feedback below. Thanks for reading.
Editors' picks
NASDAQ:TSLAEducation
by TradingView
55
Manipulation Scenario : 1. Support was tested several times and finally (looks) a breakdown. Maybe some traders will sell on break support. And put SL a little above the candle that breaks the support. But the price made a pinbar / hammer, went back up and touched SL. 2. After the SL is touched, the price finally breaks the trendline and closes above it. Traders will think this is a false break with the trendline breakout confirmation and become a best time to buy with SL just below the previous low. However, prices fell back and touched SL for the second time. 3. After the SL has been touched, the price create a pinbar which is an indication of buyer's pressure. Traders might think not to be fooled once again and think that the support is really broken and decide to sell in the SBR area with SL above the previous high. But again, the price was not friendly and touched SL once again. 4. The price finally made an upside impulse and formed a bullish pennant which became a continuation pattern. With this pattern the trader should take a long position. However, due to doubt and don't want to become a victim of SL for another time, trader decided not to open a position. And the result is price actually goes up without being able to get some profit. After being hit by SL several times it does disturb our emotions as traders, but if we have calculated each risk of SL before jump into trade and put SL which suitable with our risk tolerance, it shouldn't be a problem. JUST ENJOY THIS PROCESS
Education
by tom_mok
3
5 Tips For Faster ChartingHere are 5 tips that will speed up your charting. Each tip in this idea involves a simple keyboard shortcut: hold the command key on a Mac or Ctrl key on your PC. Mastering this keyboard shortcut will improve the way you select multiple drawings, apply bulk edits, and ultimately speed up your research process. 1. Select multiple drawings in an area by holding down the command key on a Mac or Ctrl key on a PC and then dragging the mouse over the area you want to select. This is one of the fastest ways to select multiple drawings at once. Hold command/Ctrl and then drag your mouse over a specific area. 2. You can also select multiple drawings one at a time. To get started, press and hold the command key (Mac) or Ctrl key (PC) and then click each drawing one by one. This is a helpful for selecting specific drawings that are spread out around the chart or hard to find. 3. Once you've learned to select multiple drawings on your chart, did you know you can apply bulk changes to them? For example, you can select multiple drawings on your chart and then change the color for each one with one click. Hold command/Ctrl, select each drawing, and then change the color in the floating toolbar that appears. 4. You can change more than just the color... You can also apply bulk changes to the line thickness, border, visual order, and font color. Select each drawing using command/Ctrl and use the floating toolbar to apply any necessary changes. 5. The command and Ctrl keys can also be used to clone a drawing. Hold command on a Mac or Ctrl on a PC and then drag the selected drawing. It will instantly clone. 🕺🕺 We hope you enjoyed these five quick tips. The key is to master the power of the command and Ctrl keys. With this keyboard shortcut you can select multiple drawings, apply bulk changes, and instantly clone drawings. Please let us know if you have any questions or comments about these tips! Our team reads the comments and will help you the best they can. You can also write feedback and suggestions. P.S. We use the #TradingViewTips hashtag to share other helpful tips about using the platform. 🙌
Editors' picks
NYSE:TWTREducation
by TradingView
41
Risk Management: How to set a Take Profit (TP) for your trades Hello everyone: Today let's dig into an important topic of setting a Take Profit (TP). While many traders will often have different strategies and methods on a TP, let's take a look on my approach and style on this. ITs important to understand there is no right or wrong when it comes to setting a TP. ITs what you have in your plan and what makes sense to you as a trader. It should align with your strategies and trading style also. Some may take profit quicker and move on, while others hold for longer term. Understand that both methods can have drawbacks, it's what trading is, double edge. So, make sure we follow our plan and executive accordingly to our management. Otherwise we are just making emotional decisions again. Let's look at a few scenarios on how I would set a TP. Directly tie in TP is a SL. I usually will only enter a trade if I have 3:1 RR. Meaning risking 1% to gain 3% or more. Therefore my TP will almost always be 3 times of initial SL amount or room. Few TP scenarios: -Beginning of the the previous correctional structure -Double Bottoms/swings low area, watch for LTF reversal price action and correction When price breaks ATH, monitor the price action on the LTF for bearish reversal. I would want to see a trend change, rather than a pullback. Few things to consider: -Understand you will never enter at the lowest point, and exit at the highest point Make sure you have a plan before so you will not get into an emotional decision. Always know what you plan to do before it happens. No Right or wrong as long as you follow your original plan. You can of course in time modify your plan based on market conditions. Any questions, comments or feedback please let me know :) Thank you
OANDA:XAUUSDEducation
by jojofang0901
27
Fear of Missing Out (FOMO) - Solutions?Hi Traders. Today's I'm going to discuss about "Fear of Missing Out (FOMO)". It is a very common trait among new and experienced traders. Till present, I still have this 'evil' occasionally popping out leading to unnecessary loss. One thing to remind yourself is that, emotion isn't something you can eliminate completely. Human beings were made with emotions, what you can do is to organize your mind to control its performance. "Chains of habits are too light to be felt until they are too heavy to be broken" - Warren Buffett Constantly learning and practicing, put knowledge as the priority is what you can do to improve your performance and ensure your mind is at its peak. Do the right thing. The illustration above isn't a general representation of all, but for someone who's regularly over-trading and revenge trading, this post is worth a read. Below I've concluded several points if you're having FOMO. 1. Emotionally triggered/ attached - During my early phase of trading, I was always emotionally triggered or shock by the market movement. Eg. "Why is it going up? Why is it going down? Why is it doing this? Why is it not doing this?". First and foremost, the market movement is created by millions of traders (randomness). In the short-term it is mostly driven by technicals, long-term mostly driven by fundamentals. No one has any control over the market movement or its direction (Unless you're doing insiders' trading). Do not try to impose your personal will or expectations in the market, because it simply doesn't care. Trade what you see, conduct your due diligence, that's it. If you're always having that stubbornness thinking you must be right, it's just the matter of time where reality hits and you'll get hurt pretty badly. 2. Not following your initial plan - To be consistently profitable, you need to tackle the market everyday in the same perspective. You cannot allow yourself to constantly switch from one strategy to another. Consistent action plan generates consistent result, put more attention into the process not the outcome. "The eagerness to control the outcome is illusional" - Rande Howell 3. Constant re-assessment (Overthinking) - If you're a FOMO person, you'd tend to overthink a lot. "What If I don't sell now It goes down? What If I don't buy now It goes up?" You simply do not need to get involved in the market all the time to make money, profit comes when you're doing the right thing over a long period of time. 4. Jump from one bias to another - From the illustration above, have you ever switch from long bias to short bias so quickly just because you "think" you're wrong? Because of some sudden market movement, you unconsciously throw your initial plan out of the window then make some impulsive decisions. If yes, then from now onwards you MUST remind yourself that there are only 3 general directions in the market (Up/ Down/ Sideway). Stick to your initial plan or bias, unless you're an experienced trader with great flexibility on spotting short-term momentum shift. Or else, simply allow the market reveal whether you're right or wrong. Avoid rotational market condition especially when you're new into trading, because it is usually where majority tend to give back their hard earned profits. 5. No strategy/ game plan - Trading is not a get-rich-quick game. Work hard, study, and practice to improve your knowledge. It is a marathon not a sprint, to succeed in this business you will experience failure. Never give up, and learn to make peace with your losses. As long as you stay in the business long enough, you will succeed. Put in the effort to back-test, it gives you the confidence to execute the same setup repeatedly as you have the data to back-up your mental capital when you're having some terrible drawdown. Yes, I've seen traders who succeed without back-testing, but trust me it is very unlikely. Knowledge is power. 6. Nervous/ panic - This is one of the common texts I receive regularly. "What should I do? I am currently down xxx $ amount". Discipline is the toughest yet the strongest tool in trading. If you're uncertain about your decision or the outcome, simply avoid them. Hesitation comes from fear, If you're uncertain about a position, don't take them. It makes no sense putting your money at risk on something that you don't even know. Quality over quantity, focus on high probability setups. How do you assess the quality of a setup? Simply back-test them, then find out the long-term expectancy of the strategy. "The market is a device for transferring money from the impatient to the patient." - Warren Buffett Comment down below what's your worst losing streaks and what's the underlying cause? Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
Editors' picks
KRAKEN:BTCUSDEducation
by TraderNeoh
448
US Indices Backtesting and Charting Session On Price Action Hello everyone: As promised I will periodically make these backtesting/chart work videos on different markets, pairs and timeframes. This is for me to present the importance of backtesting in trading consistency. Not only it will help traders to not have emotional decisions such as FOMO or fear of losing, it will give traders confidence at identifying trade opportunities and execute them when the time comes. The more we do backtesting, the easier we spot an entry, setting a SL/TP, and remove any emotional decisions. Today I want to go into the US Indices, specifically the SPY, NASDAQ, DOW. I will pick a few market crashed examples and dig deeper into them. Few educational videos below on the topic of backtesting, and why it will help you in your trading journey. How & Why I backtest: Prevent Blowing an account by backtesting: Backtesting & Chartwork on USDCAD: Any questions, comments, or feedback please let me know :) Thank you Jojo
OANDA:SPX500USDEducation
by jojofang0901
20
Education: Why you should NOT buy or trade signals!" Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime " - unknown origin * 🔴 What does this quote mean, and how does it related to trading (signals)? The quote means that you can indeed resolve an issue by providing a hungry man a fish, serving his immediate need, but if you really want to help him you should teach him to become self-sufficient. Similarly, while providing a signal, you can provide the signal to a winning trade to someone, but if you really want to help him, you teach him how to analyze the market and become self-sufficient in trading. 🔴 DISCLAIMER This post will probably get some backlash from users who provide signals, be it paid or not, because it goes against their "business model" and might reduce their revenues in one way or the other. But that is fine by me, this is my personal opinion, and I advise every single reader of this publication to draw his own conclusions. 🔴 What are trading signals? Trading signals at a minimum constitute of an entry price and a direction. Example : buy $Gold at 1825 USD. Some (but not all) signal providers also give you a Profit Target and/or a Stop Loss . They give you actionable information on where to open a trade, which direction you should trade and sometimes when you should close the trade. 🔴 That's easy! Nothing wrong with that, it can make me money, right! Right??? Yes, it can, you are absolutely right that you can make money off a trading signal. However, there are a couple of questions that you need to ask yourself : How many trades, what percentage, can you expect to win? If not provided, where should you take profit or cut your losses? What is the reason for entering the trade? What confidence do you have in the trade if you're just following someone elses instructions? What if you lose 10 trades in a row, was this expected? Who is responsible for your losses? You, or the signal provider? What do you learn from trading signals? What are the emotions you have to go through during the trade? What if your signal provider stops? 🤔 Additionally the question arises why the signals are provided. Is it altruism? Or is it conceivable that the provider does not make enough by trading and wants to top-up his gains(?) by selling signals. Income from trading is not guaranteed, when you sell signal you make your profit the moment the transaction takes place, independent of the outcome of the trade. That's guaranteed 💰. And yes, people will be unhappy and no longer order the providers' services, but there are always new "potential buyers" coming to the financial markets. 💡 " Trading signals does not guarantee your income, it guarantees the signal providers' income. " 🔴 OK, fair enough, but what should I do if I don't know how to trade? Allow me to be blunt here, if you don't know how to trade, you should either learn how to trade, either keep your money in your pockets. Ask yourself why you want to trade? What is the end goal? ► If you say that you just want to make some extra money, then taking up a 2nd job is a much more reliable source of income than throwing your money at the markets based on something someone else said, don't you agree? Other than that, as said earlier, if you depend on a signal provider, that income (if any) will disappear the moment the signals do. ► If you want to become a trader, become financially independent, get rid of your daytime job, get out of that hamster wheel, I strongly suggest you invest the time and effort to learn how to trade for yourself. 🔴 MY ADVICE Don't be lazy Don't trade signals and Learn how to trade Hustle Grind Fail Learn from your mistakes Fail again Don't give up Don't expect to become rich overnight Keep learning Do your own research and analysis Rinse and repeat until you succeed .... That, imho is the only way you will achieve the financial goals you have set for yourself and feel good about it... So, let's take our initial proverb and give it a trader twist: 👉🏻👉🏻👉🏻 " Give a Man a Signal, and You Could Feed Him for a Day. Teach a Man To Trade, and You Feed Him for a Lifetime " - Nico Muselle 💥The decision is all yours, if you want it bad enough, you can do it!💥 🔴 Useful information This TradingView article gives you some additional information on the things you shouldn't do ... Give it a read before you hand out your hard earned money. www.tradingview.com Do you agree? What is your view on signals? Let's open the discussion in the comments below ... ✌🏻 PEACE OUT Liked this post ? "Smash that like button!" 👍 - follow for more educational posts and alerts 🔔 when a new one is published. Oh, and maybe you'll like the related ideas linked below as well? Thank you for your visit! 🙏
Editors' picks
Education
by Nico.Muselle
292
Make profitable trading decisionsHi Fellow Traders The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable. Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria. You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities. The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision. I hope you enjoy the video and that I have been able to contribute to your potential success as a trader. Please feel free to comment and reach out if you help. Regards Wayne_G
Education
by Wayne_G
1
Trading Psychology - State of MindHi Traders. Today's topic is something I've been highlighting all the time which is trading psychology. Bare in mind, you can have or given the best strategies but still not being consistently profitable due to an unhealthy psychological state. The other day, there was one relatively new trader, 1 month into the business asking for my help, as he was involved in a EU short without any Stop Loss with over 100pips negative. Pray & hope is a common mistake of new traders, if you are watching this post It is likely that you're trying to improve yourself. In this educational post I will be uncovering some of the emotions that we all go through as a trader. Winning Ask yourself, how many times when you have an amazing plan, but it got thrown out of the window just because your account was in a huge unrealized profit? Greediness (Euphoria) kicks in, you begin doing things that's not included in your initial plan, you scale-in and over-leverage thinking that this MUST be "that" winning trade. Ego and arrogant starts kicking in, result in irrational behaviour. Always remind yourself that, no matter how good you are at predicting the market, the probability of outcome of each trade remains 50/50. The only way that you can have an edge in the market is by back-testing, and utilize the past data into your advantage to develop strategies that give you positive expectancy overtime. Constantly imprint your initial plan into your brain regardless of how well the position is moving into your favour, have an exit plan beforehand, and stick to it. Things can always go wrong, stay focused. Losing Fear comes from hesitation. For majority of novice traders, they're always hesitating clicking that buy & sell button. simply because they're not willing to put in the work to back-test, practice, and learn. Believe or not, I've seen plenty of confident traders telling me that they are going to be "the one". Imagining that they can master the craft within months, but that's simply not the ugly reality. Market decides wherever direction it wants to go, if you're thinking that you can beat the market, you're putting yourself into some self-sabotaging mentality. Usually what happen when traders' in drawdown, is that they'll begin overthinking. Being denial that they 'cant' be wrong, which is a huge warning sign of indiscipline. Result in moving their stops, not cutting their losers quickly, or at worst not having any SL. As mentioned earlier, the probability of outcome of each trade is always 50/50, regardless of how "market genius" you are. If you're wrong on particular position, cut it and move on. Believe in your intuition, when things go wrong, it really does. There's always another trading day, there's always more opportunities, get a break and come back stronger. Imagine your account balance as your bullets, you can't fire a gun without it, do not make unrecoverable mistakes just because of that moment of irrationality. Emotional Control (Balanced) This is what every successful trader striving for, which is understanding their own emotions and pull the hand brake when necessary. Every successful trader I've met have one common trait, which is having little opinion in the market. Novice traders always think that to make huge profit, you 'must' know which direction its going. By having little opinion in the market, it allows you to have a peaceful state of mind, allowing the markets to do whatever it wants and stay reactive. "Trade what you see not what you think", stay humble, and be an observant. You do not need to be involved in positions all the time to make profit, successful traders know when to step back and remains rational all the time. Do get it right, being a successful trader does not mean you need to get it right 100% of the time, it is about how fast you are able to recover yourself during a drawdown period, and avoid being sucked into the emotional vortex. Personally, long long time ago when I first started trading, I got involved in an AUDUSD short position, I was down over 120 pips ended up receive a margin call, blew up 75% of my account. But hey, It was a great experience! Comment down below what's your worst trading nightmare, and share your experience! Knowledge is power. Know how to make peace with your losses and profits will come. "The outcome of a trade cannot be controlled, but the mind can be organized to control its performance" - Rande Howell Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
Editors' picks
KRAKEN:BTCUSDEducation
by TraderNeoh
220
Detail look into “M” & “W” Structures/Patterns in Price Action Hello everyone: Welcome back to another price action structures/patterns video. Today let's take a look into the “M” and “W” style structures/patterns. Many traders may use these types of structures/patterns in their trading plan/strategies. Let me show you guys my interpretation of them, and how I utilize them in my trading as well. It's important to understand many of my previous price action analysis, structures/patterns videos all tie into this one as well, I will put those links below. Essentially, a “M” or “W” style pattern is a double tops/bottoms pattern that appears mostly towards an end of a run of the current price. They are “reversal” price action structures/patterns. They are most effective when we tie in other price action structures/patterns with it. Let me give multiple examples of these structures/patterns in different markets and time frames. “M” Style Pattern -Double tops structure after price failed to continue the first initial push down. -Top of the Right M, needs to have a reversal structure on the LTF or smaller time frames (ascending channel, H and S pattern..etc) -Can either enter at the breakout of the reversal structure or the first correction after the impulse down “W” Style Pattern -Double Bottoms after price failed to continue the first initial push up. -bottom of the Right W, needs to have a reversal structure on the LTF or smaller time frames (descending channel, Inverse H and S pattern..etc) -Can either enter at the breakout of the reversal structure or the first correction after the impulse up Double Top/Bottoms: Ascending/Descending channel: Head and Shoulder Pattern: Continuation/Reversal Correction: Multi-Time Frame Analysis: As always, any questions, comments or feedback please let me know. Thank you Jojo
BITSTAMP:ETHUSDEducation
by jojofang0901
35
Who Are Your Favorite Follows?Share the names of your favorite follows in the comments below. Together, we can build a list of the most interesting traders, investors, and market thinkers. We'll also give out TradingView Coins to those who uncover new and interesting names on TradingView. Just tag their @ username and we'll tip you Coins if we agree. 🎉 To get started, head to the comments below and write the usernames of your favorite follows. Please refrain from linking to any outside sources. All you have to do is write their username or name. You can share your favorite follows for any and all asset classes. Equities, crypto, forex, futures, and more are all welcome. In-fact, the more diverse we make this list the better. Let's uncover new and interesting follows across the financial market landscape. Here are some characteristics to consider BEFORE following someone: • Experience 💪 • Trustworthiness 🤝 • Clarity of ideas 📚 • Authenticity 🧙‍♂️ • Titles, spelling, and grammar ✍️ • Actionable analysis 💰 • Thoughtful research 📈 • Beautiful charts 🎨 • Completed profile 👨‍🚀 • Track record 💸 • Realistic claims and humility 🧘‍♂️ • Transparency P.S. Please refrain from sharing any spam. Please also remember to be nice! Our moderation team will immediately remove spam to ensure we are working together to build a stronger social network. Let's see how this goes! Get started in the comments below 👇👇👇
Editors' picks
CRYPTOCAP:TOTALEducation
by TradingView
665
How to Identify & Trade Double Tops and Double Bottoms in 2021Hello Traders, Here is some of my Favorite and Most simple Educational Chart Patterns that you should know in 2021. In this Lesson I will Show you how to Identify & Trade These Patterns! These patterns are seen daily in Stocks, Forex and different markets across the Globe. I hope you will find this information educational & informative . Your support is appreciated with a like & Comment Lets dive Right Into it!! What Is Double Top and Bottom? Double top and bottom patterns are chart patterns that occur when the underlying market moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used in technical analysis to explain movements in the Market, and can be used as part of a trading strategy to exploit recurring patterns. KEY TAKEAWAYS A double top has an 'M' shape and indicates a bearish reversal in trend. A double bottom has a 'W' shape and is a signal for a bullish price movement . Understanding Double Tops and Bottoms Double top and bottom patterns typically evolve over a longer period of time, and do not always present an ideal visual of a pattern because the shifts in prices don't necessarily resemble a clear "M" or "W". When reviewing the chart pattern, it is important for traders to note that the peaks and troughs do not have to reach the same points in order for the "M" or "W" pattern to appear. Double top and bottom patterns are formed from consecutive rounding tops and bottoms. These patterns are often used in conjunction with other indicators since rounding patterns in general can easily lead to fakeouts or mistaking reversal trends. Double Top Pattern (M Formation) A double top pattern is formed from two consecutive rounding tops. Rounding tops can often be an indicator for a bearish reversal as they often occur after an extended bullish rally. Double tops will have similar inferences. If a double top occurs, the second rounded top will usually be slightly below the first rounded tops peak indicating resistance and exhaustion. Double tops can be rare occurrences with their formation often indicating that investors are seeking to obtain final profits from a bullish trend. Double tops often lead to a bearish reversal in which traders can profit from selling at the neckline (with confirmation) to form a downtrend. Double Bottom Pattern Double bottom patterns are essentially the opposite of double top patterns. Results from this pattern have the opposite inferences. A double bottom is formed following a single rounding bottom pattern which can also be the first sign of a potential reversal. Rounding bottom patterns will typically occur at the end of an extended bearish trend. The double bottom formation constructed from two consecutive rounding bottoms can also infer that traders are following the Market to capitalize on its last push lower toward a support level. A double bottom will typically indicate a bullish reversal which provides an opportunity for Traders to obtain profits from a bullish rally. After a double bottom, common trading strategies include long positions that will profit from a rising Market price. Limitations of Double Tops and Bottoms Double top and bottom formations are highly effective when identified correctly. However, they can be extremely detrimental when they are interpreted incorrectly. Therefore, one must be extremely careful and patient before jumping to conclusions. For example, there is a significant difference between a double top and one that has failed. A real double top is an extremely bearish technical pattern which can lead to an extremely sharp decline in the market. However, it is essential to be patient and identify the critical support level to confirm a double top's identity. Basing a double top solely on the formation of two consecutive peaks could lead to a false reading and cause an early exit from a position. How to Trade these Patterns Correctly using the information i have given above 1. Identify The Double Top or Double Bottom 2. Wait for the market to break the previous support or previous resistance to confirm this pattern " M or W" ( as show in my chart above) 3. Be Patient & wait for the market to come back to the "Neckline" (Previous support or Previous Resistance) (as shown in the chart above) 4. When the market will reach the "Neckline area aka support/resistance" monitor the "PRICE ACTION" (in the notes on chart) 5. Monitor the PRICE ACTION for a "Change" in the Market Environment "example" ----- (HL/HH,LH/LL). 6. It is Important to monitor the "Price Action" in the neckline area for some confirmation ( Break of structure or Candlestick confirmation) 7. Always wait for proper confirmation ( at least 2-3 different types of confirmation before Entry) 8. Always Use risk Management & Practise Safe trading. 9. Patience is always the Key to Success! 10. Enjoy The profit when you finally get to ride these Patterns :) Thanks for Reading this article, I hope that it was informative and educational As always, If you have any questions / Comment or Concern Please feel free to leave them below. Hope to see you in the next Educational Post! Global Fx Education
TVC:DXYEducation
by Global_Fx
23