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How To Read Structure (Charts) Tutorial. Charts 1-5By the time you are done with this tutorial, You will understand Structure, Trends, Reversals & much more! This tutorial will teach you how to dig deep into the charts & analyze where price is likely to go next! Reading Structure can be difficult when you first start trading, however most professional traders (if not all) understand structure very well and it is definitely a skill that will dramatically help you on your journey to becoming a professional trader. I tried to make this as clear & simple as possible for anyone to understand but do not worry if this is complicated or a little confusing at first. If you are new to trading, you will benefit by studying and looking over these charts multiple times. I have found that it is also helpful if you grab a piece of paper and a pencil so you can draw the chart that you are looking at. Draw a very simple line chart and mark the highs & lows as shown in the tutorial with support & resistance lines.. You will learn much faster by doing this while training your eyes to identify trends & reversals. After you do this enough, it will start to become 2nd nature & you will spot these crucial moments in structure with a quick glance at the charts. This is the first section of the Reading Structure Tutorial. This section will consist of 6 Charts total: Chart 1- An Easy and effective way to determine trend. Chart 2- Following The Trend with Support & Resistance (Highs & Lows) Chart 3- Continuation of Chart 2 Chart 4- Identifying Possible Trend Reversals Chart 5 - When Structure Doesn't Make Sense, Do Not Trade! Chart 6- Another Reversal I have put a lot of time & effort into this tutorial so feel free to ask any questions you may have.. I will be publishing section 2 of the "How To Read Structure" tutorial next week. Please leave a comment below or message me with your thoughts regarding this lesson. I am happy to continue publishing them if they are helpful to you. We are going to scroll through this chart & follow structure. This is a 60 Minute Chart of GBP-USD. Chart 1 Chart 2, In this Chart we are going to look at the highs & lows shown on Chart 1. Chart 2 Continued, (Continuation of Chart 2.) Chart 3, Identifying Possible Trend Reversals. Chart 4, In depth Analysis of Chart 3. Chart 5, Another Example of a trend reversal Section 2 of "How To Read Structure" will be published next week & I will be sure to update this tutorial with the new charts as well as publish a separate idea. Take your time & really study these charts. There is a ton of valuable information in this tutorial & by the time you get through all the sections, you will have a much easier time reading structure. Please be sure to give this tutorial a thumbs up if it was helpful & you would like me to continue posting them. Thanks Traders & I hope you enjoyed the 1st section of this tutorial!
Education
by Alec40
110
Spot The Trend & Trade It On Lower Time FramesOne of the strongest setups are the ones that are being formed by the dual time frame momentum. By using multiple time frames you will be able to create a high probability setup. Key rule is: Large/High time frame for trend and Small/Low time frame for your entry. Personally I mostly I like to hold short term positions, so I use the daily time frame for the trend and then the 4 hour for my entry. For the purpose of this educational post I will use the weekly time frame so that we can spot the long term trend and over the course of the next 2-3 months I will update this post and you will see how very well this strategy works (for the purpose of this guide I will assume it has broken the upper range, so it isn't a trading advice or prediction of what will happen) Part 1 Spot The Trend (I use the weekly time frame, but you can apply the same principles to the daily time frame) Currently the weekly time frame is trading in a nice triangle that is narrowing. At the moment it isn't possible to spot a clear trend due to this. So we have some patience and we will wait till the price has broken out of the triangle. Now it's important to remember that a range is only considered to be broken when the candle has closed outside of it. Since we now use the weekly candle we wait till the market close on Friday, if you use the daily time frame you wait till the daily close of the market which will close the current candle and start a new one. Lets jump a bit forward in time and assume the upper range has broken when the weekly candle closed. Now we know that the weekly time frame will show a nice wave up as is often the case with a range break out. So there we have had, we had some patience, we waited till the weekly would close outside of the range and now we know that the weekly time frame trend will be up the next weeks. Now this doesn't mean straight away that on Monday the next trading day the price will jump up. Maybe the lower time frame will have a correction first because it just had a strong wave up. An indication of this on the weekly time frame can be the Stoch Rsi, Rsi or just Stoch indicator. If the price has broken out of the range but one of these indicators is already in the overbought or oversold area a retracement can be very likely. To confirm this we take a look at the lower time frames, because we want to make sure that your buy position wont drown first be a retracement on the 4 hour or daily time frame before going back up and following the weekly trend. This is the next step. Find Your Entry To avoid getting caught up in a lower time frame is very simple. You make sure that the lower time frame is pointing up in the same direction as the higher time frame. For example I use the daily for the trend and then I wait till the 4 hour points in the same direction as the daily trend and I have my entry. In our example it goes the same. Except now we use the daily and 4 hour time frames for our entry. Why not only the daily? If the daily points like the weekly time frame, you can still get caught up in the 4 hour retracement. Why not skip the daily and jump to the 4 hour Well if the 4 hour points up like the weekly time frame in our example,the daily time frame can still point down. So basically you're trading a retracement of a retracement. Which can make your position go up first based on the 4 hour, but once that retracement is done it will go down first till the retracement on the daily time frame is done. To avoid getting caught up in all these retracements we wait till the daily and 4 hour time frames will both point in the same direction as the weekly. Which will be up in our example since we assumed that the upper range has been broken. The following situation can indicate that the daily or 4 hour time frame are going up: Range has been broken to the upside Price has touched the lower range and the Stoch Rsi, Rsi, Stoch indicator made a bullish cross over
Education
by JoshFX1
2
Sell GBPJPY (educational)Sell GBPJPY (educational) "kalbotical retracement confluence 1" 1. Up Trend line broken 2. down Trend line formed 3. second leg has a strongest momentum so possible third leg for some kind of 1-2-3-4-5 structure ) You can catch momentu e.g with Squeeze Momentum Indicator 4. Look left for S/R zone 5 perfect Fib level - .618 6. Kalbot RSI shows the fastRSI line in the overbought area, so there is a possible end of retracement 7. Top predictor (or your mentor) loves this structure too 8. Plan your trade trade with one of possible strategies . e.g countertrendline break ( 9 ) strategy StopLoss 30 pips above U-turn Take profit :- 100 pips (3:1 trade) :- or -0.25 Fibs extension (10) :- or Look left for S/R level (11) 12 trade your plan
Education
by quql
1
Why 90% of Retail Traders Fail - "Fear of Missing Out!"There are so many reasons why 90% of retail traders fail. One of the main reasons is because retail traders over trade. They fear missing an opportunity and because of this they think there is always an opportunity when in reality there isn't. As traders, it is our job to find high probable setups. Probable setups are limited though... so you need to have patience to wait for them to unfold. All too often I see traders here chasing price , and this EURUSD today is a perfect example of this. I can't even imagine how many traders got short on the break out of this short term up trend line. Many probably waited for the hourly candle to close to enter, but what happened? Immediately after they entered price reversed sharply and is on the way to stopping those traders out who most likely have their stop loss just above the high around 1.047. If we look at the price action over the month of December on this pair, we can clearly see the 1.05-1.052 area have been strong support where buyers continuously stepped in every time price approached it. Once that support was broken you can see that the role of the level reversed and it became resistance. Sellers came in on the back side of the level, however only intraday did it retest the level. It is likely that there will be an official retest of the figure and another major attempt to the downside, even if it is just to the previous low. IF price comes back to a major area that was support it will VERY LIKELY become resistance. A setup like this is a high probable setup, but it takes a while to unfold. It has been 6 days so far since the level has been broken. Maybe it will hit the level today... maybe not. Maybe it will hit the level tomorrow... maybe not. Maybe it will hit the level next week. Maybe it will NEVER come back to the level... Who knows... but as traders we must be patient if we want to get the most probable setups. It is better to miss a trade than to take a poor trade! If you want to get setups that have low odds of working out, that is fine. You do you, but if this resonates with even one trader and helps them trade better than my job here is done.
Education
by UnknownUnicorn261897
11
How To: Trade Support & Resistance Like the ProfessionalsHello traders. It is a statistical fact that upwards of 90% of retail traders lose money in the Forex market. There are many reasons for this, but perhaps the most important reason is entry. Retail traders often get terrible entries. Even if they are right, their entry may be so poor that their opportunity for profit is not enough to make them consistently profitable. If 90% of retail traders are losing, then that must mean 90% of institutions are profiting. Why is this? What makes institutional traders better than retail traders? Well the main reason why institutional traders are better is because they have access to research that retail traders simply don't have access to. The institutions that employ these traders also employ teams of analysts whose sole responsibility is to analyze the market to ensure the profitability of the institution's traders. However, another very important aspect of their success is that they do NOT wait for confirmation, trend line breaks, patterns, and signals from indicators when trying to enter the market. Institutional traders look for specific prices to buy and sell at and they place their orders at those levels. In a trending market for example, such as this USDJPY over the last month, institutional traders will be looking to buy dips. They won't be waiting for price to form a low and then enter the market because that would be chasing price... that would be retail. Institutions let the market come to them, they find specific prices that reflect good value for buying given the market condition. You can see on the chart all the points at which major higher lows formed throughout this uptrend. As you can also see those lows in just about every instance match up perfectly with the previously broken high. That is no coincidence. For a market to form a major swing high in an uptrend, there must be a lot of money selling the market at that price to push it lower. Only institutions have enough buying/selling power to move price and form such a top so if a high is formed it is because it was at a price level where institutions were previously selling. If price then breaks out to the upside and forms new highs, institutional buyers will then look to buy that same price that they previously sold at. It seems very basic... and that is because it is. Institutional traders only look at price action. Retail traders are the only traders who complicate things by using patterns and indicators and that is precisely why so many of them fail. Keep your charts simple... don't wait for confirmation or signals... let price come to you. Think like an institutional trader now like a retail trader!
Education
by UnknownUnicorn261897
22
Learn how to do a trend continuation trade, with Benny Manieri!Hello again friends, Deciding what kind of trader you want to be is important, so you're not bouncing all over the place. Having said that, learning different ways to trade can add an important weapon in your arsenal against the markets. I'm a counter trend trader at my core, but my trading plan has a provision when the maximum profit vs risk presents itself in the form of a trend continuation trade, a specific filter allows me to attack the market in this fashion. What this may look like in your trading plan may be different. Every trading plan is personal. Personal as the Preparation H on my fingertips now sticking the keyboard as I type. Here, we see that NZDUSD has been in a well-established downtrend on the hourly, my trading time frame. I bounced out to a four hour, my higher time frame, and drew in some thin red horizontal support lines. These are places that price has touched at least 3 times on that higher time frame. We see that we are sitting on a spongy area of support at this time, and it will be important to see how the market behaves heading into the Sunday open. Unfortunately around that time, I will be too intoxicated after Sunday afternoon football to pay attention to this, but have at it guys. We will look for a retracement from current price action, up into the .382 at least for us to begin to be interested. We see a fib confluence area consisting of fibs from the current and last swings lining up with structure. (Pink zone) Nice nice. One price action does something interesting up there, such as RSI overbought with a lower low lower close candle, kangaroo tail, something to indicate it will reverse, a market buy with two contracts is probable. Stops go at least 1 ATR above the most recent swing high. Target one is back down at previous structure. Once it's hit, stops on the second contract are rolled to break even. The second target is at the 1.27 extension, if you've got the balls to hang onto it. Benny Manieri
Education
by BennyManieri
Moving Average - Educational StudyHi guys, I would like to present to you this educational trading method that was adopted by Rayner Teo-1.72% . ( search him up , he is a great trader and mentor ) Basically the moving averages act as a support and resistance levels and can indicate an ongoing trend , you can use them to time your entries and ride the trend. Keep your SL trailed alongside with the trend. You can keep adding positions every time the price hits the EMA's and shows that it respects them as a valid support/resistance area! You collect your profit only when you think the trend has ended and and it's time to close the trades. Update status
Education
by vladisavage
1