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What is FLAT in the markets, practical tips☝️Do not act based on my analysis, do your own research!! The main purpose of my resources is free, actionable education for anyone who wants to learn trading and improve mental and technical trading skills. Learn from hundreds of videos and the real story of a particular trader, with all the mistakes and pain on the way to consistency. I'm always glad to discuss and answer questions. 🙌 ☝️ALL videos here are for sharing my experience purposes only, not financial advice, NOT A SIGNAL. YOUR TRADES ARE YOUR COMPLETE RESPONSIBILITY. Everything here should be treated as a simulated, educational environment. Important disclaimer - this idea is just a possibility and my extremely subjective opinion. Do not act based on my analysis, do your own research!!
Education
by Yelli_trades
How to use Williams Alligator Indicator in crypto trading?You have probably heard about Alligator, indicator which is used by top crypto traders. This powerful tool can increase performance of every cryptocurrency trading strategy and help you to make money on the market. Alligator gives us the precise answer if now price is in impulsive or reactive wave. This knowledge is very useful in building your own crypto trading strategies or even in automated trading bot strategies. Even if you use grid bot strategy Alligator can increase your return on investment because it’s vital to set up grid bot in reactive wave and sideways movements. What is the beast Alligator, let’s have a deep dive into this topic today! What is Alligator? Alligator is the best indicator for trend detection. It consist of three moving averages which are called jaw, teeth and lips. Moving averages are frequently used in algorithmic trading bots. They can be exponential, smoothed or weighted depending on particular crypto trading algorithm, but we will use smoothed moving averages (SMA). Jaw (blue line) - 13 period SMA shifted 8 bars is the future. This is the balance lie of the current time frame, for example 1D Teeth (red line) - 8 period SMA shifted 5 bars in the future. This is balance line of lower degree time frame, for example 4h Lips (green line) - 5 period SMA shifted 3 bars in the future. This is balance line of two times lower degree time frame, for example 1h Please, be careful when you use Alligator on different cryptocurrency trading platforms. Check the correct settings and moving average type. On TradingView it’s correct, don’t worry! Trend detection with Alligator. 
The main Alligator’s feature is the detection the trending markets and markets which are about to explode in any side. This powerful tool can enhance your crypto trading algorithm if you use it in the correct way. On the ATOM price chart you can see the example of an Alligator. As you can see it has two conditions: sleeping and hungry. Sleeping Alligator is when all lines are crossing each other and the price. This period of time can takes up to 80% of time. This is the market cycle stage where you shall avoid any trading and be prepared for the trending market Hungry Alligator is when after a long period of consolidation price chose the trend direction. It’s an impulsive move. Alligator’s mouth is widely opened and do not crosses the price. It’s very important to distinguish the trending market because only this type of a market gives you opportunity for the fast and huge profit. Otherwise, in the range bounded market you don’t have enough space for price to make profit for you. Most of stop losses occur while Alligator is sleeping. Another one very useful hint for you. If you use Elliott waves analysis. You don’t need to understand in which wave market is now. You just jump into the impulses and avoid corrections. How to trade with Alligator Here is the most interesting part. How to start crypto trading using Alligator? Our basic strategy is to wait when the price will create the first fractal above the Alligator’s mouth and place conditional order to buy one tick above the fractal’s top. We will discuss fractals in details next time. Now you have to understand how to use Alligator. Another one hint from our experience is to use fractals only when Alligator has been sleeping for a long time, like you see on the BTC chart. After long sleep and fractal breakout Bitcoin showed the greatest bull run in the history. Let’s notice where we should close trade. Almost at the top! When price started showing weakness we don’t need to be in the market anymore. Using this strategy on 1W time frame you can hold assets during entire bull run and sell then before bear market. Fantastic! Isn’t it? Conclusion In this article we discussed how you can implement Alligator indicator in your trading routine. This indicator will help you to avoid boring market when you can only lose money and catch every big move. Moreover you can use even sideways market detection if you use cryptocurrency trading bot which earns money in range bounded market. For sure this in not the only one strategy using Alligator. Next time we enhance our approach with other tools and see in details how Alligator improve their profitability. Moreover, soon we will live stream where practice trading with Alligator. See you next time!

 Best regards, Skyrex Team
Education
by Skyrexio
17
RSI as a Trend ToolMost people use the RSI as a momentum indicator, trying to find Overbought/Oversold (OBOS) conditions, and/or divergences. However there is also a way to use it as a Trend Tool. There is a mathematical relationship that connects the RSI and EMA's. The formula is RSI(x) cross-over 50-line = Close cross-over EMA(2x) i.e. RSI(14) cross-over 50 line = Close cross-over EMA(28) This one of the properties of the RSI, which I discovered when taking a more indept look into momentum indicators, which ultimately led to the discovery of the MACD-v in 2014/2015 The MACD-v was then publicly disclosed in 2022, in the form of a a paper called "MACD-v: Volatility Normalised Momentum", which was awarded: It has won 2 International Awards: 1. The “Founders Award” (2022), for advances in Active Investment Management from the National Association of Active Investment Managars (NAAIM) 2. The “Charles H. Dow Award” (2022) for outstanding research in Technical Analysis, from the Chartered Market Technicians Association (CMTA)
CME_MINI:ES1!Education
by AlexSpiroglou
Following the trend with support and resistance• It is always important to understand who is in control at the moment, buyers or sellers, and be aware that the trend can change very quick so its key to adapt and don’t have a bias. After you know what the trend is, then you can mark a high probability support or resistance level in different time frames. • In an up trending currency, a support will always have a higher probability of holding and the resistance will not be too reliable, the opposite happens in a down trending currency. Also notice that when a resistance level in a uptrending move works, the pullback has low probability of creating new lows (lower lows) meaning it is not a strong move down, it could just be testing lower prices for liquidity and to continue the move up. • It is common to see that a resistance once broken tends to be support and a support once broken tends to be resistance. This is a good spot to have a continuation of the trend (see example below). • Support and resistance levels in high time frames like 6hr, daily and weekly that are strong pivot points can be known as key levels. These levels act as historical levels which means that have been relevant since months even years ago. These levels can change the trend. • Price action around support and resistance levels can be similar to the price action at supply/demand zones (read "How to identify high quality Supply and Demand zones" link below), where price reaches the level with strength and then rejects, volume increases with no follow through and the candle closes with a wick but never below/above the support/resistance level. • Also it is common to observe that price gets near a support/resistance area and breaks below/above, grabs liquidity and then comes back above/below the area. In this cases, enter the trade after it regains the level.
Education
by FTWTraders
indicators used to measure main factors surrounding pricethere are 4 main key elements in market price action that i have come across. these help traders/investors determine many crucial factors of price like strength, direction, motion, even speed. these are : momentum, trend, volume and volatility. in this idea I will be explaining these price forces and the different types of indicators/tools used to measure them. 1. MOMENTUM - this is the strength /intensity behind price movement or simply the speed at which price is changing. this helps traders/investors capitalize on market volatility. this is a very important price factor for breakout traders. types of momentum indicators : - THE RELATIVE STRENGTH INDEX, this indicator is used it bear and bull markets by measuring recent price changes with levels from 0-100. levels below 30 indicate oversold market conditions indicating bullish strength, and levels above 70 signal overbought market conditions indicating sell bias and 50 is a balance between the two. - AVERAGE DIRECTIONAL INDEX, this unlike other momentum indicators measures the strength of current market direction rather than determining whether the market strength is bullish/bearish. it is measured between 0 to 100 with level below 25 indicating weak trend, 25-50 strong trend, 50-75 very strong, 75-100 very strong trend. other momentum indicators include - stochastic oscillator, MACD, commodity channel index 2.TREND - this is the overall direction of an asset price, either up, down and sideways. types of trend indicators -moving average, this is the average closing price of an asset over a certain period of time, when price is trading above the moving average price is said to be in an uptrend and if trend is trading below it is in a downtrend. -trendline, this is a price line that is formed by connecting price highs and lows, if price is forms a full OHLC candlestick above bearish trendline connecting lower lows and lower highs it indicated change in trend from bearish to bullish and vice-versa. 3. VOLATILITY - this is the the degree of variation in relation to an average price level or rate at how price fluctuates. it provides market opportunities as the more price changes the more investors/traders can capitalize on these price changes. types of volatility indicators -average true range, this indicator measure volatility over a certain period of time by moving up and down based on significant noticeable price changes calculated by subtracting previous close from current high, previous close from current low and current low from current high. do this continuously to get average of true ranges. -bollinger bands- this consists of 3 lines, a simple moving average , upper band and lower band. when the market becomes more volatile the bands widens and low levels of volatility the bands loosen or contract. other volatility indicators include : relative volatility index, average directional movement index. 4.VOLUME - this is the number of contracts exchanged or trades for a certain asset in a period of time, this can help traders/investors determine strength and direction of trend. types of volume indicators -MONEY FLOW INDEX, this indicator measures the flow/direction of money in and out of a particular asset class over a specified period of time. positive money flow is the total of positive numbers , if today's price is greater than yesterday's price it indicates positive money flow and vice versa, this is to measure volume of rising and falling periods. -ON BALANCE VOLUME, this measures bearish and bullish pressure by adding volume of bull days and subtracting volume of bearish days it can be calculated in a simple formula : if today's closing price is higher than yesterday's closing price it goes like, Current OBV = PREVIOUS DAY + today's volume and subtract today's volume if today's closing price is lower than yesterdays' price. hope this information helps/improves your trading/investing. put together by Pako Phutietsile ( @currencynerd )
OANDA:XAUUSDEducation
by currencynerd
How to trade Double Tops to the Short Side using 1 hour barsI always ask myself: What's my favorite chart pattern for finding high probability entries? I look at my stats, I look at my various strategies, and I always find I like one type of trade best: Trend Continuation trades using double tops for shorts and double bottoms for longs. The strategy is simple: Using 1 hour wickless bars, (I'll show you how in the video), identify a trending stock by seeing where price is clearly up or down, then identify a double top or double bottom occurring along the trend. When you have two confirmed tops or bottoms, get short or long, as the case may be. The patterns really do come in all shapes and sizes, but they are best when they occur along a resistance line, be it VWAP, a 20 EMA, or some other. They also can be confirmed by looking at your RSI chart which will indicate clearly two v bottoms for a long entry or two peaks for a shorty entry. Seeing where on the RSI chart these double patterns are forming is also instructive. Longs should show up on the RSI chart as a pair of v bottoms occuring at the bottom of the upper half of the chart, above the 50% line. Shorts should show up on the RSI chart as a pair of peaks at the top of lower half of the chart, just below the 50% line. Because you're using 1 hour bars to find entries, it naturally stands to reason that your setups will trigger at the top of the hour, when there is typically a burst of volume. If your analysis is correct, that volume burst will push your trade in the proper direction within seconds, so if you like instant gratificatrion like I do, you'll enjoy that aspect of trading this way.
CAPITALCOM:US100Education
by BlackCar
📈Mastering Forex Trading: Your Ultimate Trade Checklist📉 ✅Entering the forex market can be an exciting and potentially profitable endeavor. However, it requires careful planning and diligent decision-making to succeed. One essential tool to streamline your trading process is a trade checklist. In this article, we will guide you through the creation and effective use of a trade checklist, providing practical examples along the way. 📌Preparing for a Trade: Before you pull the trigger on any trade, it's crucial to conduct thorough analysis and set clear objectives. Ensure your trade checklist includes the following elements: ▪️Identify the Market Trend: Determine the overall direction of the currency pair you wish to trade. Consider using various technical indicators, such as moving averages or trend lines, to confirm the trend. ▪️Define Entry and Exit Criteria: Set precise entry and exit points to minimize emotion-driven decisions. Identify key levels of support and resistance, and determine the minimum risk-to-reward ratio you deem acceptable. 📌 Risk Management: A robust risk management strategy is fundamental to long-term success in forex trading. Incorporate the following risk management elements into your trade checklist: ▪️Determine Position Size: Calculate the appropriate position size based on your risk tolerance and account balance. Consider using tools such as position calculators or risk/reward ratio formulas. ▪️Set Stop Loss and Take Profit Levels: Define stop loss points to protect your capital from excessive losses and specify take profit levels to lock in profits once your target is reached. 📌Trade Execution: Executing a trade swiftly and accurately is vital. Include the following checklist items to ensure consistent and disciplined execution: ▪️Double-check Parameters: Before placing a trade, review all the crucial parameters, including currency pairs, position size, entry and exit levels, and stop loss/take profit points. ▪️Timing Considerations: Be aware of upcoming economic releases, news events, or major market sessions that may impact your chosen currency pair, and adjust your trade execution timing accordingly. 💹Conclusion: By incorporating a trade checklist into your forex trading routine, you can significantly enhance your decision-making process and overall trading performance. Remember to adapt your checklist to align with your personal trading style and preferences, continually evaluate its effectiveness, and make necessary improvements. Successful trading is a result of thorough planning, disciplined execution, and a continuous desire to learn and optimize your approach. ☺️I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
COINBASE:BTCUSDEducation
by SignalProvider
9
TOMMY XAU | BASIC MARKET STRUCTURE Good afternoon gold gang! Thought id jump on here to talk to you about basic market structure, as its the basis for any strategy and super important to learn. We can identify that the market moves 3 ways .. up trend down trend sideways (consolidation) I prefer to trade when the market is trending in either direction. I determine this by looking at the monthly and weekly candles. In a trending market, i am looking to identify areas that the market can reverse from. If we are making a higher high for example .. I can identify that price is likely to pull back down to the key level it started its ascent from. From there i can wait for confirmations on the lower time frame to take a trade in the direction of the trend. obviously this doesnt work everytime .. news etc .. but its always good to have it in the back of your mind the phase of the market you are currently in. you will find with my strategy .. that price will make new structure points around my key levels ( the ones i place on my chart) Hope this helps some of you out .. back to basics is sometimes the way to go if you are getting overwhelmed with information Have a great sunday and see you tonight for the outlook tommy
OANDA:XAUUSDEducation
by tommyXAU
2
✨ P2P INDi [PRO] ✨ TUTORIAL ✨1. Go to the 1D time frame 2. Open chart drop down menu and select Point and Figure* *Point & Figure below the 1D time frame is ONLY available to TradingView members that are subscribed to the Pro plan and above 3. Click on the SETTINGS wheel on the P2P INDi 4. Locate the DEFAULTS drop-down menu and select RESET SETTINGS 5. Click the INPUT tab 5. PIVOT PRICES (a) Identify price(s) nearest the Pivot High (PH) and the Pivot Low (PL) (b) Place those coordinates in the corresponding input box (c) Click OK (at the bottom right) 6. On the Tool Panel (to the left), identify Magnet Mode and turn it on (weak or strong) 7. PIVOT PLACEMENT (a) Drag the Pivot High line of P2P INDi and snap it on the corresponding X (b) Do the same for the Pivot Low line and snap it on the corresponding O 8. ANNOTATING TREND (a) Identify the trend shown on the Heads Up Display (top right-hand corner) (b) If the DOWNTREND (red) is displayed, remove all three Buy Order TPs (c) If the UPTREND (green) is displayed, remove all three Sell Order TPs 9. SET YOUR POSITIONS (a) Place Buy and/or Sell Orders at 2%-3% or less of your Net Asset Value (NAV) (b) If shaving, take 25% profit at the first two Take Profit (TP) prices. (c) Stop Losses should be equal to or beyond the PH and PL lines (d) If stop loss is greater than your risk tolerance: — lower your position size or — tighten your stop loss by bringing it closer to your entry DISCLAIMER: Please notice that we do not provide financial advice — our website, indicators, strategies, signals, and mentorship courses are all intended only to provide a community of support to anyone interested in improving their trading skills. Fx'tive HNW $olutions, Inc. is a California corporation that publishes products and services for developing trading indicators and strategies on demand, renting and selling proprietary indicators and systems, training, and coaching exclusively intended for Daily₿read Subscribers ONLY. 1. INTELLECTUAL PROPERTY The proprietary indicators, strategies, and content developed by the T.E.A.M. (FRIDAY, P2P INDi, P2P INDi, TEMASHA, The Library, Specialty Lesson, and other utility scripts or educational information), the object of intellectual property rights are and remain the exclusive property of Fx'tive HNW $olutions, Inc., at the exclusion of images and videos and texts free of rights or provided by Fx'tive HNW $olutions, Inc. or external legal or physical person. No assignment of intellectual property rights is carried out through these Terms and Conditions. Any total or partial reproduction, modification, or use of these properties for any reason whatsoever is strictly prohibited without the express written authorization of Fx'tive HNW $olutions, Inc. 2. RESPONSIBILITIES You declare to know the principles and risks of the financial markets. Therefore, you swear that you know the financial risks involved in trading. In this sense, the directors, employees, stakeholders, and partners of Fx'tive HNW $olutions, Inc. can not be held responsible for errors, omissions, inappropriate investments, technical problems, events beyond our control, and, more generally, financial losses that you may realize, or results obtained in the practice of trading resulting from the services or products it markets. 3. RISK WARNING Trading involves a high level of financial risk and may not be appropriate because you may experience losses greater than your deposit. In addition, leverage can be against you. Do not trade with capital that you can not afford to lose. You must know and understand all the risks associated with the market and trading. We can not be held responsible for any loss you incur.
Education
by ProfessorCEWard
2
Cost-Benefit Analysis of Looking outside the Scope of TrendA Cost-Benefit Analysis of Looking outside the Scope of Trend: To Peek or Not to Peek “The trend is your friend until the end when it bends.” - Ed Seykota Trend analysis lies at the core of technical analysis. Modern technical analysis derived from Dow Theory. In turn, Dow Theory emphasized the nature and importance of trends and their constituent parts and degrees. Many may recall Dow’s analogy of different trend degrees: the tide (primary trend), waves (secondary trend), and ripples on the waves (minor / short-term trend). Technical analysis includes many other concepts within its scope. But within technical analysis broadly, the primary focus remains the trend structure. Before considering trends, it may help to discuss the distinction broadly between technical analysis and fundamental analysis. A. Technical Analysis versus Fundamental Analysis Top traders and market experts have taken each side in the debate over whether technical or fundamental analysis has the greatest efficacy. Some have straddled the line, preferring a combination of the two. Some consider technical analysis to be not only superior but also relatively straightforward and efficient compared to other types of analysis, such as fundamental analysis or positioning analysis.FN1 Positioning analysis is beyond the scope of this post and is briefly explained in the first footnote. Jim Rogers, a famous investor who managed a reportedly very successful fund with George Soros in the 1970s, and who had had many accurate forecasts, expressed strong disdain for technical analysis—he once told Jack Schwager, “I haven’t met a rich technician.” But some of the greatest traders and market experts stand on the other side of this debate. For example, Ed Seykota is a trader of great renown included in Schwager’s 1993 Market Wizards: Interviews with Top Traders. Seykota chose the technical-analysis camp, giving the most weight to trends, chart patterns and good entries and exits. He once described markets in a way that evokes Charles Dow’s wave analogy: If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when its coming in, it’ll never happen. The market is always right. A former portfolio manager for Fidelity Management who founded several other research and investment firms, David Lundgren, described how he came to follow the principles of technical analysis even though he still expressed great value for fundamental analysis. From an interview included in a 2021 Technical Analysis of Stocks and Commodities magazine, Lundgren shared some of his experiences and insights on this topic. In his view, fundamentals can matter significantly over the long term especially as to stocks. But Lundgren’s most outstanding remarks in this interview distinguished between these two conceptual approaches to financial markets. He aptly characterized fundamental analysis as being based on the view that the “market is wrong.” In other words, the valuations drawn from a publicly traded company’s financial statements (e.g., P/E ratio, enterprise value, book value) assume the market is “overestimating or underestimating value” and that the price should be above / below the current market price. By contrast, he said technical analysis assumes the contrary view that the market is actually right in its current price and price trend. The critical distinction between technical analysis and fundamental analysis boils down to ego, according to Lundgren, because pure technical analysis “accepts the verdict of the market” whereas pure fundamental analysis “involves hundreds of hours developing an opinion of what is attractive and often with the verdict of the market.” Much ink has and will be spilled on whether price discounts everything, and if so, how fast and efficiently (Charles Dow Theory). In any case, fundamental, technical and positioning modes of analysis are not mutually exclusive. B. Whether to Consider Data outside the Confines of Trend Since last year’s October 2022 lows in the S&P 500 (SPX) and other major US indices, the current equity market uptrend has been challenging and bewildering to many investors, traders and analysts. It has been especially difficult to comprehend for those who are keenly aware of the broader financial and macroeconomic environment, which includes purportedly tight monetary policy and quantitative tightening (reducing Treasury securities off the Fed’s balance sheet) as well as stubborn core inflation. Such an environment broadly speaking remains unfavorable to equities for the most part.FN2 But trends do not always move in the most sensible direction, and they do not always align consistently with the macroeconomic evidence. Sentiment or even positioning, discussed briefly in the first footnote, can affect the trend even when it may run counter to the macroeconomic evidence. And trends can stretch into an overbought or oversold condition longer than anyone expects, a principle captured by the old aphorism, attributed to John Maynard Keynes, that “markets can remain irrational longer than you can remain solvent.” Exhaustion doesn’t require a 180-degree turn but often appears more like a process, especially at market tops given the long-only nature of most equity capital. Pure trend followers, who supposedly consider only the technical trend-based evidence, may not care whether the trend makes sense. Indeed, they place their stops and align their trades / investments in accordance with one of many trend-based strategies. And this narrowed focus may be very helpful and exceedingly profitable at times. A recent example is the Nasdaq 100 (QQQ), or even some large or mega-cap tech names like AAPL, MSFT, META, and NVDA. These indices and securities could have rewarded narrowly focused trend-followers quite well on daily and weekly time frames over the past eight months, especially if discipline was used to enter positions at major uptrend supports with stops moved to breakeven or higher along the way. Such trend traders and investors may be busily counting their profits rather than being distracted with inverted yield curves and FOMC policy statements. The question becomes whether one may look outside the trend (or technical analysis generally). This issue likely generates pages of academic argument and hours of financial media debates between experts. And it may be something for all traders to ponder for a bit. Given how much of an influence positioning has developed on equity markets over time, as well as central-bank quantitative tightening or quantitative easing, it seems important to consider data from such sources. Such data may also include trend information that affects trends in everything else. For example, trends in the price of commodities may tell us about inflation and likelihood of tighter monetary policy / interest rate hikes by a central bank. And trends in the money supply may strengthen or weaken the case for a current trend in equities. C. Cost-Benefit Analysis of Looking beyond the Trend In this author’s view, it is not necessarily foolish or improper to sneak a peek or a long thoughtful gaze, outside a rigid trend-based framework. As with everything in life and trading, costs and benefits must be weighed. The biggest drawback to going outside the confines of trend is the tendency of many traders to try to consider far too much. Our brains are only capable of processing so much at a given time. Focusing on too much data can cause dilute confidence, weaken resolve, and obfuscate trends. In addition, by the time a trader considers a macroeconomic data point, computerized systems likely have informed all the largest institutional players, or even algorithmic or high-frequency traders, who acted on it before you even had a chance to review its implications. And the market’s reaction to non-technical data points is not always intuitive. But if one can manage understanding additional data outside the trend/price framework, one might find benefit in learning and following data on yield curves, bond-market dynamics, Fed Funds rates, macroeconomic data, inflationary measures, and volatility gauges can inform one’s outlook in useful ways. The key here is to avoid repeatedly (and blindly) fighting the trend in price—even if one fights that trend with some of the most rational, reasonable and persuasive arguments based on overwhelming macroeconomic, volatility, sentiment, positioning, or other such evidence as to why price should be going the opposite way. In short, this is the important general rule for trend-based systems—make the trend your friend until the end when it bends.FN3 D. Practical Application and Hypotheticals Just because one should make friends with the trend does not warrant chasing extended trends (see FN3), unless the trader or investor has developed particular expertise in momentum trading, and even then, caution is greatly warranted. Every trend has its proper entries for the time frame involved. Uptrends necessarily require countertrend retracements to support whether defined as an anchored VWAP, key moving average, Fibonacci retracement, upward trendline, or standard-deviation based measures such as linear regression or Bollinger Bands. Technically, this is not peeking outside the trend, but rather it merely considers evidence of trend exhaustion and the likelihood of mean reversion. Further, a trend-based framework should in fact include considering higher time frame trends such as a monthly chart where each price bar represents one month of price data. One of this author’s collaborators, @SPY_Master, has performed some excellent trend-based analysis on timeframes as high as monthly, quarterly (even yearly bars at times). It is quite common, moreover, for higher-degree trends to move in the opposite direction as lower-degree trends, such as during a monthly or quarterly uptrend experiencing a corrective retracement to trend support that lasts for days or weeks. Or the hourly trend can move against the daily / weekly trend, frequently does so whenever a countertrend retracement to trend support occurs. Can one technically “fight the trend” merely by preferring a higher degree time-frame trend when it conflicts with a shorter one? The answer depends on one’s time frame, risk tolerance, position size, and rationale. In addition, trends involving a particular stock, index, or other security can be evaluated based on their relative strength, i.e., as a ratio of the subject stock, index or security to another stock, index, security or data series. The S&P 500 can be compared to the Nasdaq 100 or 10-year Treasures. Or BITSTAMP:ETHUSD can be charted as a ratio to another cryptocurrency. This author would argue that such metrics can provide useful trend-based insights even though they incorporate data that is technically beyond the scope of trend. Below are a couple such relative-strength charts that arguably fall within trend-analysis despite relying on data that would normally be considered outside of a price trend's scope: Example 1 shows this author's relative strength chart of NASDAQ:AAPL to OANDA:XAUUSD (Gold). This is a very long-term chart showing the outperformance trend in AAPL over two decades to the precious medal and commodity Gold. Example 2 shows @SPY_Master's relative-strength chart of NASDAQ:NVDA , the AI-tech stock into which everyone's distant relatives are now inquiring after its meteoric rise from 2022 bear-market depths. The chart is a relative-strength chart of the ratio of NVDA to the 10-Year Treasury note, which aptly shows how overvalued NVDA is relative to a risk-free asset. It appears far too extended above the risk-free asset in terms of standard deviation on a linear regression-based model shown here. (Note that yields and bonds move inversely, so where an asset outperforms a risk-free bond, it means that the asset is extended given the level of yields produced by that bond.) Credit: SPY_Master (used with permission) To conclude, consider the following hypothetical scenarios as a thought experiment. Assume a stock has a monthly or quarterly chart that is extended multiple deviations above the mean (or multiple deviations as a ratio of its price to the money supply). NVDA presents a good case study for these concepts. Scenario A: A person entered the position at $290 and took profits on this stock at $405, preferring to exercise caution and avoid this stock as a long-term investment. Scenario B: A hedge fund with a 150-page report of deep research on NVDA and the macroeconomic backdrop has a 10-year time horizon and begins scaling into a short position to anticipate a mean reversion at the higher degrees of trend (monthly, quarterly time frames). The hedge fund will add one quarter at $450, another quarter position at $500, and the final two quarters between $500 and $600 if reached. Should either scenario be deemed fighting the trend? Is either scenario ill-advised use of capital? Any answers are welcome in the comments provided respectful towards others. FN1 This footnote helps explain some basics of fundamental and positioning analysis. Beyond this brief explanation, this article will defer to other educational experts for a more thorough explanation of these three modes of financial analysis. Fundamental analysis for equity indices like SP:SPX or NASDAQ:NDX considers macroeconomic data and metrics that focus on an economy’s growth (e.g., GDP), price-stability / inflation (CPI, PCE, PPI), consumption, real estate, money supply, central-bank rate policies, central-bank QE or QT, trade deficits, and more. Fundamental analysis as to individual stocks involves the use of financial data such as revenue, earnings per share, cost of goods sold, capital expenditures, and other data available from a public company’s certified financial statements, as well as financial ratios relying on such data, e.g., earnings per share (EPS), price-to-earnings (P/E) ratios, price-to-sales ratios (P/S) and liquidity ratios (current ratio). In the US and other major economies, securities rules mandate that companies file full disclosure of their financial health, certified by CEOs and CFOs, in annual reports (10-K and quarterly reports (10-Q) on an ongoing basis. Positioning analysis looks at a complex array of data that covers institutional market positioning and order flows for stocks, options, indices, commodities and futures. It also looks at increasingly important dealer hedging flows (volume and open interest) in options markets and the effect of implied volatility and time on such flows. It can include such insights as net positioning on each side of a given futures market or index by hedgers and speculators. This is an area where expert commentary is helpful to learn even the basics. FN2 Yet the central-bank and US Treasury actions behind the scenes may have masked, or even partially or wholly offset, tight Fed interest rate and monetary policy at times during the first half of 2023. For example, many financial publications and analysts discussed the US Treasury’s accounting maneuvers intended to prolong its borrowing authority in light of the debt-ceiling standoff. Commentary also noted that such maneuvering, draining the TGA account (the US Treasury’s “checking account” held at the Federal Reserve), injected money / liquidity into the financial system, which likely muted Fed’s efforts to tighten policy in the short-term while those actions were ongoing. FN3 But as is often the case with a general rule, the exceptions can dilute the rule somewhat. One prominent exception is mean-reversion analysis / trading systems. In addition, some traders and institutions are trend-reversal traders—a high risk, high reward type approach that requires immaculate risk management, timing, precision and patience, often scaling into and out of massive positions that cannot be acquired or unloaded in a period of days.
BITSTAMP:BTCUSDEducation
by SquishTrade
7
📈Navigating the Uptrend📍 Understanding an Uptrend An upward trend provides investors with an opportunity to profit from rising asset prices. Selling an asset once it has failed to create a higher peak and trough is one of the most effective ways to avoid large losses that can result from a change in trend. Some technical traders utilize trendlines to identify an uptrend and spot possible trend reversals. The trendline is drawn along the rising swing lows, helping to show where future swing lows may form. Moving averages are also utilized by some technical traders to analyze uptrends. When the price is above the moving average the trend is considered up. Conversely, when the price drops below the moving average it means the price is now trading below the average price over a given period and may therefore no longer be in an uptrend. While these tools may be helpful in visually seeing the uptrend, ultimately the price should be making higher swing highs and higher swing lows to confirm that an uptrend is present. When an asset fails to produce higher swing highs and lows, it means that a downtrend could be underway, the asset is ranging, or the price action is choppy and the trend direction is hard to determine. In such cases, uptrend traders may opt to step aside until an uptrend is clearly visible. 📍 Key Takeaways 🔹 Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors. 🔹 A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market. 🔹 Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
7
Introducing the Volatility Adjusted ADX (VADX)In this video, Stock Justice introduces you to the Volatility Adjusted ADX (VADX), a powerful tool that combines trend strength and market volatility. Learn how to customize your settings for optimal analysis and how this indicator, with its proprietary mathematical formulation, offers a nuanced perspective on market dynamics. Discover the benefits of normalized data and how to read and interpret the VADX line in conjunction with other indicators. All of this, delivered in Stock Justice's engaging style, will empower your technical analysis toolkit. Be ready to trade safe, trade smart!
NASDAQ:TSLAEducation
by FadingExtremes
Introducing the Trendicator (by Stock Justice)In this comprehensive tutorial, we dive deep into the world of the Trendicator, a powerful and innovative trading tool made by @StockJustice that enables traders to identify trends, spot reversals, detect bullish and bearish divergences, and perform multi-timeframe analysis. We delve into the inner workings of this never-before-seen indicator, demystifying its complex algorithms and showing you how to harness its full potential. From understanding the unique features of the Trendicator such as its compression stages, divergences, and MACD crossovers, to learning how to pair it with a Displaced Aggregated Moving Average (DACD) for enhanced precision, we cover it all in a fun and engaging manner. The tutorial is not just about explaining the Trendicator's functionalities, but it also provides practical tips and strategies for using it in real-world trading scenarios. We discuss how the Trendicator can help traders spot the onset of a trend, gauge its strength, and pinpoint potential reversal points. Additionally, we explain how traders can utilize the bullish and bearish divergences identified by the Trendicator to anticipate market turns and make informed trading decisions. Lastly, we emphasize the importance of multi-timeframe analysis in trading and demonstrate how the Trendicator can facilitate this process. By interpreting the Trendicator's signals across different timeframes, traders can gain a more comprehensive view of the market and make more accurate predictions. This tutorial is a must-watch for any trader aspiring to level up their technical analysis skills and trade more confidently and effectively. So, get ready to embark on an exciting journey of learning and discovery with the Trendicator!
CME_MINI:ES1!Education
by FadingExtremes
Introducing Dynamic Action Convergence Divergence (DACD)Hello, it's Stock Justice here! In our latest video, we explore the intricate workings of the Dynamic Action Convergence Divergence (DACD) - a tool that synergizes the robustness of the ADX and the DI lines to create a dynamic and responsive trading indicator. We plunge into the depths of DACD, starting with the base components - the Average Directional Index (ADX) and the Directional Movement System (DI). We then demonstrate how these two indicators are harmoniously fused together to form a comprehensive tool capable of signaling market momentum and potential trend reversals. We further elucidate how the DACD uses moving averages to mark potential bullish or bearish trends, and how divergence within the DACD can indicate trend continuations or reversals. The video also highlights the DACD's proficiency in multi-timeframe analysis, enabling traders to view market trends from a broader perspective. Closing out, we underline the DACD's versatility as a powerful trading instrument, while emphasizing the need for using it in conjunction with proper risk management and a balanced blend of other technical analysis tools. This video is an essential watch for all traders seeking to enhance their trading arsenal and navigate the market more proficiently!
SP:SPXEducation
by FadingExtremes
Introducing the Dynamic Fusion OscillatorHello, it's Stock Justice here! In our latest video, we delve into the world of the Dynamic Fusion Oscillator (DFO) - a tool that blends the power of the Relative Strength Index and the Stochastic Oscillator. I walk you through how it works, from understanding these two base components to how we fuse them to create a balanced and sensitive tool for identifying market trends and reversals. We dive deep into how the DFO uses moving averages to signal potential bullish or bearish trends, and how divergence within the DFO can indicate trend reversals or continuations. I also touch on the DFO's capacity for multi-timeframe analysis, giving you the bigger picture of market trends. Wrapping up, I remind you of the DFO's value as a versatile trading tool, but also emphasize the importance of using it alongside proper risk management and other technical analysis components. All in all, this video is a must-watch for traders aiming to enrich their toolkit and navigate the market more effectively!
NASDAQ:NVDAEducation
by FadingExtremes
How to SPOT a TRENDTrend trading strategies are very valuable as a trader. The term the trend is your friend is fitting when trading stocks. Knowing how to identify the trend is very important because it gives important clues for entries and exits when trading. "Whatever method you use to enter trades, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend." -Richard Dennis. “Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”. I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in a very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money.” – Ed Seykota “I’ve learned many things from him , but perhaps the most significant is that it’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” – Stanley Druckenmiller “I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something.” – Jim Rogers “Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.” – Jesse Livermore “Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I’m getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis.” – Bruce Kovner "Amateurs think about how much money they can make. Professionals think about how much money they could lose." –Jack Schwager. "The price of a commodity will never go to zero. When you invest in commodities futures, you are not buying a piece of paper that says you own an intangible of the company that can go bankrupt." –Jim Rogers. "It's not always easy to do what's not popular, but that's where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized." -John Neff. "We don't care about 'why'. Real traders only have the time and interest to care about 'what' and 'when' and 'if' and 'then'. 'Why' is for pretenders." -JC Parets. "You only have to do very few things right in your life so long as you don't do too many things wrong." -Warren Buffett. "The goal of a successful trader is to make the best trades. Money is secondary." -Alexander Elder. "Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong."
CAPITALCOM:OIL_CRUDEEducation
by DaveBrascoFX
TrueLevel Bands: One of the Most Useful IndicatorsThe TrueLevel Bands Indicator: Why It's One of the Most Useful Indicators Out There The TrueLevel Bands indicator is a powerful technical analysis tool that helps traders identify trends and potential reversal points in the markets. It is a versatile and customizable indicator that can be used on any financial instrument, including stocks, commodities, forex, and cryptocurrencies. In this article, we'll explore the TrueLevel Bands indicator in detail, and explain why it's one of the most useful indicators for traders. What Are TrueLevel Bands? TrueLevel Bands are a type of envelope indicator that helps traders identify the upper and lower boundaries of a trading range. They are similar to Bollinger Bands, but instead of using a fixed number of standard deviations from the moving average, TrueLevel Bands use a multiple of the standard deviation that is determined by the length of the moving average. The TrueLevel Bands indicator consists of two lines: an upper band and a lower band. The upper band is calculated by adding a multiple of the standard deviation to the moving average, while the lower band is calculated by subtracting the same multiple of the standard deviation from the moving average. How to Use TrueLevel Bands TrueLevel Bands can be used in a variety of ways, but their primary purpose is to help traders identify trends and potential reversal points in the markets. Here are a few ways that traders can use TrueLevel Bands: 1. Trend identification One of the most significant advantages of TrueLevel Bands is the cloud created by the transparency of the fill color between the upper and lower bands. This cloud makes it easy to visualize the trend at a glance, without having to rely on complex technical analysis tools or methods. The cloud effect also provides a clear indication of the strength of the trend. The wider the cloud, the stronger the trend, while a narrow cloud indicates a weaker trend or consolidation. This feature is particularly useful for traders who prefer to use visual cues to make trading decisions. TrueLevel Bands make it easy to identify the direction of the trend. When the price is above the cloud, it is considered to be in an uptrend. Conversely, when the price is below the cloud, it is considered to be in a downtrend. 2. Reversal points TrueLevel Bands can also be used to identify potential reversal points in the markets. When the price reaches the upper band, it is considered to be overbought, and a reversal to the downside may occur. Similarly, when the price reaches the lower band, it is considered to be oversold, and a reversal to the upside may occur. 3. Support and resistance levels TrueLevel Bands can also be used to identify support and resistance levels. When the price is trading within the bands, the upper band serves as a resistance level, while the lower band serves as a support level. Traders can use these levels to identify potential entry and exit points for their trades. 4. Volatility TrueLevel Bands can also be used to measure volatility. When the bands are narrow, it indicates that the market is experiencing low volatility. Conversely, when the bands are wide, it indicates that the market is experiencing high volatility. 5. Fibonacci-based length options In addition to the standard length options (250, 500, 750, 1250, 2000, and 3250), TrueLevel Bands also offer Fibonacci-based length options. These lengths are spaced out in a way that allows traders to capture different time frames and market movements, from short-term fluctuations to longer-term trends. The Fibonacci-based length options were chosen by multiplying 125 (which represents 6 months of daily data) by a sequence of Fibonacci numbers, starting with 2. The resulting lengths are: 250 (125 x 2), 375 (125 x 3), 500 (125 x 4), 325 (125 x 5), 750 (125 x 6), 1000 (125 x 8), 1250 (125 x 10), 1625 (125 x 13), 2000 (125 x 16), 2625 (125 x 21), 3250 (125 x 26), 3750 (125 x 30), and 4250 (125 x 34). By using these Fibonacci-based length options, traders can take advantage of the natural patterns and rhythms that exist in the markets. These lengths are spaced out in a way that allows traders to capture different time frames and market movements, from short-term fluctuations to longer-term trends. Why TrueLevel Bands Are More Accurate Than Moving Averages Moving averages are a popular technical analysis tool that help traders identify trends and potential reversal points in the markets. However, they have a few drawbacks that make them less accurate than TrueLevel Bands. 1. moving averages are based on past prices, which means they lag behind the current market conditions. This can lead to false signals and missed trading opportunities. 2. moving averages use a fixed number of periods, which may not be suitable for all market conditions. For example, a 50-period moving average may work well in a trending market, but it may be less effective in a choppy or range-bound market. TrueLevel Bands, on the other hand, use a multiple of the standard deviation that is determined by the length of the moving average. This means that the bands are more responsive to changes in market conditions, and they can adapt to different market environments. Conclusion The TrueLevel Bands indicator is a powerful and versatile tool that can help traders identify trends, potential reversal points, support and resistance levels, and measure volatility. It offers a range of length options, including Fibonacci-based options, that allow traders to capture different time frames and market movements. Compared to moving averages, TrueLevel Bands are more accurate and adaptable to changing market conditions. They can help traders make better-informed trading decisions and improve their overall trading results. If you're looking for a reliable and versatile technical analysis tool, give the TrueLevel Bands indicator a try. It might just be the missing piece in your trading toolbox.
NYSE:BRK.BEducation
by Julien_Eche
1
🐹ENGULFING CANDLE TRADING STRATEGY EXPLAINED🐹 🐣If you are looking for a simple yet powerful trading strategy that can help you spot potential trend reversals in the market, then the engulfing candle trading strategy might be the one for you. 🐙What is an engulfing candle, you might ask? Well, an engulfing candle is a candlestick pattern that occurs when a larger-bodied candle completely engulfs the smaller-bodied candle that preceded it. It is a sign of a shift in market sentiment, from bullish to bearish or vice versa, and can be used to identify potential entry and exit points for trades. 🐵To use this strategy, you need to be familiar with candlestick charts and understand the basic concepts of support and resistance. Here are the steps to follow: 🐿Step 1: Identify the trend The first step is to determine the current trend of the market. You can do this by analyzing the price movement of the asset you want to trade over a certain period. If the trend is bullish, you should look for bullish engulfing patterns. If the trend is bearish, you should look for bearish engulfing patterns. 🦔Step 2: Look for engulfing candle patterns Once you have identified the trend, you can start looking for engulfing candle patterns. A bullish engulfing pattern consists of a small red candle followed by a larger green candle that completely engulfs the previous candle. A bearish engulfing pattern is the opposite, with a small green candle followed by a larger red candle. 🐳Step 3: Confirm the pattern Before entering a trade based on an engulfing candle pattern, you should confirm that it is indeed a valid signal. This can be done by checking the volume of the larger-bodied candle and ensuring that there are no major resistance or support levels nearby. 🦋Step 4: Enter the trade If the engulfing candle pattern confirms the trend and there are no major obstacles, you can enter the trade. You should set your stop-loss and take-profit levels based on your risk tolerance and the size of the engulfing pattern. 🦄Overall, the engulfing candle trading strategy is a simple yet effective way to identify potential trend reversals in the market. However, it is important to remember that no trading strategy works 100% of the time, and you should always practice proper risk management to minimize losses. 🌺Hope u like my article. Please let me know what you think💋 Love, Anabel❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
8
Trend Following, Guide and StrategyTrend Following: A Comprehensive Guide with a Detailed Strategy Using Three Complementary Indicators Trend Following is a trading strategy that seeks to capitalize on the momentum of financial markets by identifying and riding the existing market trends. By focusing on the direction and strength of price movements, trend followers aim to profit from both upswings and downswings in various asset classes. This article will delve into the principles of trend following, discuss the benefits and drawbacks, and provide a detailed strategy using three complementary indicators, including a custom logarithmic trend channel indicator. Principles of Trend Following 1. Market direction: Trend followers believe that price movements are more likely to continue in their current direction rather than reverse. They look for long-term trends and position themselves accordingly, either by going long (buying) in an uptrend or short (selling) in a downtrend. 2. Risk management: Trend followers employ strict risk management techniques to protect their capital and limit losses. This typically involves using stop-loss orders, position sizing based on risk tolerance, and regularly monitoring market conditions to adjust positions as needed. 3. Market adaptability: Trend followers do not try to predict market movements or rely on fundamental analysis. Instead, they focus on adapting to the current market environment and following the trend as it unfolds. 4. Persistence: Trend following requires patience and discipline, as traders must withstand temporary market fluctuations and stick to their strategy even during periods of underperformance. A Detailed Strategy Using Three Complementary Indicators 1. Logarithmic Trend Channel Indicator This custom indicator is a modified version of TradingView's built-in "linear regression" script that can be plotted correctly on logarithmic charts. It helps traders identify and follow the trend by drawing a central trend line and multiple parallel deviation lines above and below it. It is important to set the logarithmic scale in the settings. 2. Moving Averages Moving averages smooth out price data, making it easier to identify trends. Two commonly used moving averages in trend following are the simple moving average (SMA) and the exponential moving average (EMA). Traders can use a combination of short-term and long-term moving averages to confirm the trend direction and generate entry/exit signals. 3. Average Directional Index (ADX) The ADX is a popular trend strength indicator that measures the strength of a trend without regard to its direction. A rising ADX indicates a strengthening trend, while a falling ADX suggests a weakening trend. Traders can use the ADX to filter out weak trends and focus on strong ones, increasing the effectiveness of their trend following strategy. Implementing the Strategy 1. Identify the trend using the logarithmic trend channel: Plot the custom indicator on a weekly chart, focusing on the central trend line and the deviation lines. If the price is consistently above the central trend line, the market is in an uptrend. If it is below the line, it is in a downtrend. It is important to set the logarithmic scale in the settings 2. Confirm the trend using moving averages: Apply a short-term and a long-term moving average to the chart. For instance, a 50-day SMA and a 200-day SMA can be used. If the short-term moving average is above the long-term moving average, it confirms an uptrend, and vice versa for a downtrend. 3. Assess trend strength using the ADX: Plot the ADX on the chart, with a commonly used threshold of 25 to differentiate between strong 4. Determine the entry and exit points: Once the trend has been identified and confirmed, determine the entry and exit points for the trade. The entry point should be near the support or resistance levels, and the exit point should be near the opposite level. 5. Apply risk management: Use appropriate risk management techniques, such as stop loss orders, to manage the risk of the trade. A stop loss order can be placed just below the support level for a long position and just above the resistance level for a short position. 6. Monitor the trade: Once the trade has been entered, monitor it regularly to ensure that it is moving in the desired direction. If the market moves against the trade, consider exiting the position with a small loss rather than risking a large loss. 7. Take profit: When the price reaches the opposite level of the support or resistance, take profit and exit the trade. Alternatively, consider trailing the stop loss order to capture additional gains if the market continues to move in the desired direction. Conclusion : This strategy can be an effective way to trade trends in the financial markets. By identifying the trend using the channel and confirming it with moving averages, traders can determine entry and exit points and apply appropriate risk management techniques. With careful monitoring and a disciplined approach, this strategy can help traders achieve consistent profits over time. However, as with any trading strategy, there is always a risk of losses, so traders should carefully consider their risk tolerance and only trade with funds that they can afford to lose.
AMEX:SPYEducation
by Julien_Eche
How to trade trending markets?A trending market is defined as a market where prices are moving in a consistent direction over a period of time. There are many different ways to trade in trending markets, but some common methods include using moving averages, identifying areas of value, and recognizing chart patterns. This article will discuss different aspects of trading in trending markets and provide tips on how to trade in these conditions. Whether you're looking to take profits or cut losses, this article will give you the information you need to make informed trading decisions. Moving averages Moving averages are one of the most commonly used technical indicators by traders. A moving average is simply a line that is plotted on a chart that shows the average price of a security over a certain period of time. The most common time periods used are 10, 20, 50, and 200 days. There are different types of moving averages, but the two most popular are the simple moving average (SMA) and the exponential moving average (EMA). The SMA is calculated by taking the sum of all prices over the specified time period and dividing it by the number of prices in that period. The EMA, on the other hand, gives more weight to recent prices. Traders use moving averages to help identify trends in the market. When price is above a moving average, it is generally considered to be in an uptrend. Conversely, when price is below a moving average, it is typically considered to be in a downtrend. One way to use moving averages is to look for crossovers. A crossover occurs when two different moving averages cross each other on a chart. For example, if the 50-day SMA crosses above the 200-day SMA, it could be indicative of a new uptrend forming. Alternatively, if the 50-day SMA crosses below the 200-day SMA, it might be indicative of a new downtrend beginning. Crossovers can also be used to generate buy and sell signals. For instance, if price is trading above both the 50-day SMA and 200-day SMA, then traders might look for buy signals when price pulls back towards either of those Moving Averages. Similarly, if price is trading below both Moving Averages, then traders might look for sell signals when price rallies back up towards either MA. Moving averages can also be used to help traders identify areas of support and resistance. If price has been trending higher and keeps bouncing off of the 50-day MA, then that MA could be acting as support in an uptrending market. Likewise, if price has been trending lower and keeps bouncing off of the 200-day MA, then that MA could be acting as resistance in a downtrending market. Area of value An area of value is simply a point in the market where traders believe the price is either undervalued or overvalued. Traders use this concept to find potential entry and exit points in a market, as well as to manage risk when trading in a trending market. When looking for an area of value, traders should consider both the price action and the underlying fundamentals of the market. For example, in a bullish trend, an area of value may be found at a support level where the price has bounced off multiple times. Alternatively, in a bearish trend, an area of value may be found at a resistance level where the price has failed to break through multiple times. It is important to note that areas of value are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their areas of value are still valid. Once an area of value is found, traders can then look to enter into a position. When doing so, they should consider both their risk appetite and their desired profit-to-loss ratio. For example, a trader with a higher risk appetite may choose to enter at a point closer to the current market price, while a trader with a lower risk appetite may wait for the price to reach their area of value before entering into a position. Once in a trade, it is important to monitor the market closely and have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Remember, however, that past performance is not necessarily indicative of future results so always do your own research before making any trades. Chart pattern Chart patterns are a useful tool that traders can use to signal future price movements. There are three main types of chart patterns - reversal, continuation, and bilateral. Reversal chart patterns occur when the price trend reverses direction. The most common reversal chart pattern is the head and shoulders pattern, which is characterized by a peak followed by two lower highs with a trough in between. This pattern signals that the current uptrend is coming to an end and that prices are likely to head lower in the future. Continuation chart patterns occur when the price trend continues in the same direction. The most common continuation chart pattern is the flag pattern, which is characterized by a period of consolidation following a sharp price move. This pattern signals that the current trend is likely to continue and that prices are likely to move higher or lower in the future. Bilateral chart patterns are characterized by a period of consolidation with support and resistance levels that converge towards each other. The most common bilateral chart pattern is the Pennant Pattern, which is formed when there is a sharp price move followed by a period of consolidation. This pattern signals that there is indecision in the market and that prices could move either higher or lower in the future. Tips for identifying chart patterns: - Look for well-defined patterns with clear support and resistance levels - Pay attention to volume; there should be an increase in volume when the pattern forms - Use Fibonacci retracement levels to help you identify potential support and resistance levels. Support and resistance When trading in trending markets, it is important to be aware of support and resistance levels. Support and resistance levels are price points where the market has difficulty breaking through. In a bullish trend, the support level is the lowest point that the market has reached before bouncing back up. In a bearish trend, the resistance level is the highest point that the market has reached before falling back down. Support and resistance levels can be used to signal future price movements. For example, if the market is approaching a support level, this may be seen as a buying opportunity as the market is likely to bounce back up from this level. Similarly, if the market is approaching a resistance level, this may be seen as a selling opportunity as the market is likely to fall back down from this level. It is important to note that support and resistance levels are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their levels are still valid. When trading in trending markets, it is also important to have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
9