Get started

Trend

The Clarity of Renko'sThis is not a chart reading - and i'll keep it super short ... this is just a quick reminder that we have many powerful tools that we can use to enhance our analysis and trading outcomes.. too many that we sometimes forget to use them. The above chart shows a great example of that .. I was going thru the daily analysis and thought i should share this note with fellow TV chartists and traders. The 2 panels show 2 identical charts, same time frame, same date range, same symbol and same indicators .. the only difference, the chart on the right hand side is a Renko It's surprising to see how clearer the picture is when we analyze the chart and the price/volume action through the Renko lens. Taking for example, the 3 double/triple top formations and how they were expressed on both charts .. which chart is easier to action and trade? so the quick note here is, let's not forget about these powerful tools - and continue to leverage them as much as possible - Before initiating the next trade, check your Renko :) Note: most of my indicators and TA concepts are "Renko-friendly" ;) Notes & comments ?
NASDAQ:MSFTEducation
by RedKTrader
8
Once upon a time in the Stock Market!Once upon a time, four stock market traders embarked on a cruise ship for a well-deserved break from the fast-paced world of finance. They were a Swing trader, a Day trader, a long-term investor, and a Fundamental trader, and each brought their unique perspective and strategies to the stock market. While playing poker in the ship's casino one night, they found themselves chatting about the latest stock market trends. The Swing trader was the first to speak up, sharing his thoughts on short-term market movements. "The market is all about timing," he said. "I try to identify short-term trends and capitalize on them with quick trades." Next, the Day trader weighed in. "I agree with the Swing trader, timing is key. But for me, it's all about rapid buying and selling throughout the day. I like to stay on top of the latest news and market data to make informed trades." The Long-term Investor nodded in agreement but added a different perspective. "I take a different approach. I'm in it for the long haul. I look for companies with strong fundamentals and a history of stability and growth. I don't focus on short-term market fluctuations." Finally, the Fundamental trader chimed in. "I completely agree with the Long-term Investor. My strategy is extensive research on a company's financials, management, and industry trends. I want to ensure I'm investing in a reliable company before I put any money into it." The four traders continued their conversation, exchanging ideas and strategies, and discussing their experiences in the stock market. They quickly realized that each of their approaches had its own strengths and weaknesses and that there was value in considering multiple perspectives when making investment decisions. As the night went on, they played poker, laughed, and continued to talk about the stock market and their experiences as traders. The traders returned to their respective jobs with a newfound appreciation for the different approaches to the stock market. They continued to apply their unique strategies and perspectives but kept an open mind to new ideas and perspectives. And so, they all lived happily ever after, successfully navigating the stock market's ups and downs and always seeking new opportunities to grow their portfolios. Conclusion: Do not argue with other players in the market, and define the rule of the game you want to play before you start! Keep in mind everyone can be right about the market trend, depends on the duration he is looking at! Bullet point: Talking about trends without defining a timeframe is nonsense! Best,
NASDAQ:NDXEducation
by Moshkelgosha
2
10 Common Lies and Misconceptions About Trading 🥺🤮1. People are born traders. While it is true that certain personal characteristics make it easier to trade, no one is born a trader. One of the main themes of the Market Wizards books written by Jack Schwager is that almost none of the market wizards was successful from the start. They all worked hard at it. 2. You have to have a high IQ to trade. Just not true. In some ways, an above average IQ may be a hindrance. Trading is a human performance activity where strong intellectual abilities are unnecessary. 3. Top traders are successful because they have the "right trading personality." There is no such thing as the "right trading personality." Researches have been unable to find a strong correlation between personality type and trading success. It is important, however, to understand your personal characteristics and how they may help and hinder your trading. 4. Trading is easy. It sure looks that way, doesn't it? Just draw a few lines on the chart, watch your indicators, and follow the price bars. The truth is that trading is a difficult business to master. It involves different skill sets and abilities from what are needed in most other professions and careers. The trader must understand his or her personal strengths and limitations and develop specific skills to deal with the mental and emotional demands of trading. The later skills are the most difficult to develop and the most overlooked. 5. You must be tough, hard charging, and fearless to be successful. That's more media hype than anything else. It glorifies a strong ego, which is a detriment in trading. The most successful traders I know quietly do their research, study the charts, and patiently wait for the right moment. They strive to keep their ego out of their trading. 6. You must trade without emotions. If you are human, that's impossible. More importantly, when you understand your emotions you will realize they are assets, not liabilities. The real keys are: To be aware of how your emotions interact with and influence your trading, and To develop the skills needed to trade with them. 7. Top traders are usually right about the market. Top traders have many, many scratch and losing trades. Top traders are at the top because they exercise good risk control, limit the amount of loss from any given trade, and have developed a psychological edge that allows them to be unfazed by small losing trades. Most of their trading consists of modest profits and very small losses. When conditions are right, they step up size and let the profitable trades run. 8. Paper trading is useless - it's not a real trade without money behind it. If you aren't paper trading,you are doing yourself a disservice. You should always be paper trading your trading ideas. Why limit your education and experience by the amount of capital you have? Paper trading keeps you sharp ; you learn the conditions under which your trading ideas work best. Where else can you get such vital education at so little cost? 9. Master the technical skills and you will be successful. This is where most traders spend the vast majority of their time, but it's only part of the picture. You also have to learn important performance skills. Traders should spend as much-if not more-time learning to develop their psychological edge as they do in developing their technical trading edge. 10. Trading is stressful. It certainly can be stressful, and it certainly is stressful for many. It doesn't have to be. Successful traders have a certain mindset. They put little importance on any given trade. Their focus is on the long haul. They know that if they attend to the aspects of trading that are within their control (i.e., trade selection, entry, risk control, and trade management) the profits will take care of themselves. source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
46
User Request: How to Set Pull Back Alert on Bull Bear Power VoidOne of the users following me asked a really good question. Thanks @Manu45e for this one. Its actually a really important thing to know about. This will help you understand when a pullback is over and its time for a continuation trade. 1. Wait for HTF Volume to cross down below the ZERO level 2. Wait for Volume to turn BLUE while still below ZERO 3. Wait for Blue Volume to cross ABOVE the zero level 4. You need to already have current volume above the Bullish side of the VOID Continuation trade confirmed. For this you are going to need one indicator. The Bull Bear Power Void Make sure to click the image below and also click the BOOST button on that page to make it popular. Here's the indicator
OANDA:XAUUSDEducation
by CoffeeshopCrypto
10
THE WAY THE TREND CHANGESHello everyone! We continue our training. Today we will try to figure out how the trend changes its direction. I want to say right away that this is a schematic designation, having understood which, you will be able to identify important zones and structures of trend change. When you understand the principles, then you can make money on it. Accumulation The first area to pay attention to is the accumulation zone. These zones collect large volumes of limit orders on both sides of them, which is liquidity. This liquidity will be eaten up by the market at some point. Breakdown At some point, the price makes a breakdown in one of the sides, thereby eating up liquidity. This breakdown may be a normal continuation of the trend, and in order not to confuse it with a reversal, you need to wait for the next phase. Update After the breakdown, the price turns sharply and updates the minimum of the accumulation zone. What happened here? If the trend had the strength to continue its movement, the price would not have formed a new low After updating the accumulation zone, the price indicated to us a possible trend change. Correction Then we can observe a return to the accumulation zone, but this movement turns out to be weak, and we do not see an update of the maximum of the accumulation zone. At this point, it is possible to consider opening a short position. But if you don't have time to open a position, don't worry, the price will give you another chance. After updating the last minimum, the price is again adjusted to the accumulation zone, but this peak is lower than the previous one. This reversal is a good signal to enter a position. This is how the price behaves when the upward movement is reversed. To reverse a downtrend, the same rules work only in the opposite direction. Conclusions This scheme works perfectly. Using it, you will be able to find excellent entry points and close positions that were opened against the emerging trend. History repeats itself, and you can see it on the graph. Learn how to work with these schemes in order to be able to enter the position in time in the future. Learn, practice and earn.
OANDA:XAUUSDEducation
by Lingrid
13
✅ 4 Methods to Confirm EntriesYou should make sure that your reward is bigger than your risk. It is up to you what your optimal risk to reward should be – ideally you should have a risk to reward of 1:2 or 1:3. ✔️Trendline Reversal & Break The trader should constantly monitor both the support and resistance trendlines and redraw them as the old ones break and new ones form. When an intersection of the projections happens, one of the trendlines must be broken and the other will most likely continue to hold the price. We trade in the direction of the trendline that remained unbroken with potential entries at the trendline breaks. ✔️Support & Resistance Look at the price chart and observe the support and resistance levels that you have drawn on the charts. You will look to place sell orders at the resistance levels and buy orders at the support levels. Stop loss below the support level or above the resistance level depending the call you’re on. ✔️Fibonacci Retracement Fibonacci retracement levels connect any two points that the trader views as relevant, typically a high point and a low point. The percentage levels provided are areas where the price could stall or reverse. These levels should not be relied on exclusively, so it is dangerous to assume that the price will reverse after hitting a specific Fibonacci level. ✔️Consolidations A price consolidation is a period when the price is moving sideways without any significant advancement in the upward or downward direction. A price consolidation can take any form. It could be a rectangular pattern (often called a range), any of the different types of triangle patterns, a rising or falling wedge, a pennant, or a flag. Depending the pattern that takes place, you’re gonna look for entries and stop loss bellow pattern’s invalidation. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
📊 Market Structure: BOS VS CHOCH📊What is market structure? Market structure is the levels that are created by the price of any currency as it moves up and down. Price never moves in a single direction for too long. It always takes a few steps in one direction, then moves a few steps back, then a few more steps, then a few steps back. Over time, these steps form distinct structures in the market: zones of consolidation, zones of support, zones of resistance, and zones where price impulses up and down. Market structures that form in the past are often respected in the future, and analyzing previous market structure can form a basis for a trading plan. BoS carries on in the same direction it was initially heading in where as a CHoCH can be viewed as the Markets turning point 🔷BOS - Break of structure forms in the direction of the trend creating continuation patterns. Break of recent Lower Low when bearish or break of recent Higher High when bullish. 🔶CHOCH - Change of character form at the end of a trend. For example, if we see an uptrend in the market, characterized by higher highs and higher lows, this means that the overall trend remains bullish. However, when a new high is formed and then impulsively broken to the downside, this could signal that the bullish trend might be coming to an end, and that a possible choch transition may be happening. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
7
TURTLE TRADING - STRATEGY EXPLAINED ✅Currently, the forex market offers numerous different tools to improve trading. Experts in financial markets develop both simple trading strategies, which will be convenient for novice traders, and complex systems, combining several strategies. Besides, experienced participants in the market develop their own strategies for their trading. They base their systems on the elements of technical analysis, trend lines as well as support and resistance indicators. At the same time, the quality and efficiency of a trading strategy are not measured by its complexity and the presence of a large number of elements. One such example is the Turtle trading strategy developed by trader Richard Dennis in the 1980s. As an experiment, Dennis decided to form a trading strategy that would help beginner traders to become professionals. That being said, financial markets are full of risks and no strategy guarantees a market participant a 100% achievement of profit. The only commitment that can lead a trader to success is to follow the rules of money management. In addition, traders must accurately use their trading strategy. The market shows that even in the same market positions and quotes of trading assets, traders act differently and the result of the trade is often different. That is, it depends on the actions and decisions of a market participant whether a trading strategy will work to achieve profit or not. One unsuccessful trade can make a trader slacken, and someone, after making a loss, is sure to win and get a good profit. Richard Denis's Legendary Experiment Richard Denis once argued with his friend William Eckhardt. The latter assured him that trading is a talent. To be a successful trader a person must have certain qualities: an analytical mind and intuition. Denis proved that to be a successful trader it is enough to follow the strategy rules. As a result, an experiment was conducted. Denis recruited a group of 23 volunteers who came to him by advertisement. There were 21 men and two women who had never dealt with trading. Among the volunteers were ordinary people. The training lasted 14 days. After that, the generous teacher allocated his students a million dollars of initial capital each and sent them on a consolidated exchange voyage. The further experiment lasted for 5 years. After it was over, it turned out that 23 million dollars invested brought a total income of 175 million, i.e. the initial capital was increased 7.5 times. Some became successful traders and made a lot of money. Others went bust. Who was right? Most likely both. To be successful, it is necessary not only to have a good strategy but also to have certain qualities. Subsequently, one of the first students of Richard Denis, Curtis Faith, wrote a book about this method, "The Turtle Way. From Amateurs to Legendary Traders", which became a bestseller. The Essence Of The Turtle Trading It involves a time interval of 20 and 55 days. The trend is monitored at a given time interval. The entry is carried out at the moment of breakout. If the price exceeds the limits, it is the entry signal. The exit signal is a price break out in the opposite trend direction of the same time interval. This strategy allows for insignificant losses, but as a result, the trader still makes a profit. Turtle strategy requires careful monitoring of the trend because with the time interval of 55 days for a year can be placed from 3 to 5 positions. Things are a bit easier with the 20-day interval, but it also has its own peculiarities. Denis has developed the following rule: at the breakout of the price on 10-day intervals the previous entrance is considered. It may not have been performed, but the analysis is mandatory. If that entry has brought profit, the current breakout is ignored. This rule is not valid when working with the 55th extremum. Particular attention is paid to the volatility of the trade at the moment. If volatility is low, placing a trade is not recommended because a multimillion-turtle entry could change the situation on the market. Of course, there is risk in every trade. According to Richard Denis, the risk should not exceed 1% of the deposit. In the process, if there was a steady trend, orders could be added. The risk on additional orders should not exceed a quarter of a percent of the deposit. The deposit should withstand losses and wait for a steady trend, which would invariably bring profit. To control the deposit the notion of the unit - the minimum transaction amount was introduced. Indicators And Tools For Turtle Trading The work according to this trading strategy can be done on a clean chart, but it is somewhat inconvenient. You will have to count candles and rebuild levels on your own daily. Indicators solve this problem and do not distort the essence of the Turtle strategy. Among the indicators, we will need the Donchian channel, the standard ATR, and The Classic Turtle Trader, which will be described below. The last tool is used to exit the market. Market Entry And Stop Loss Three Donchian channels with periods of 10, 20, and 55 are set in the chart. There are 2 types of entries: Breakout of the 20-day Donchian Channel. There are no special filters to identify the breakout, it is enough to exceed the High or Low by at least one point. If the first signal of this type has already been closed with a profit and a second one is formed, it is not considered; Breakout of the 55-day Donchian channel. A slower variant of work. If the filter on the previous rule is triggered and the entry point on the 20-day Donchian Channel is not taken, you can enter by the slower indicator. When working with a slower Donchian Channel, there is no such filter as in the previous case. The Turtle strategy in the stock market did not involve physical Stop Losses, they were rather virtual. Traders worked with too much volume; if they placed stops, other speculators would have seen them and adjusted their work. Instead, a level was calculated at which the position was manually closed at a loss. For forex, it could be taken as 2 x ATR with a period of 20. Since the work is done on daily charts, the stop value will be higher in pips. Manual loss fixing was not a problem for the Turtles. Volatility was relatively low at the time. It is not advisable to trade forex without stops, there is a risk of getting caught in an impulse movement, and without SL the loss may be too big. Turtles agreed that the win rate will not be in their favor. The strategy is based on breakouts of levels and is trend-following, but not every breakout turns into a trend. The point is that a profit on one trade that has worked in the positive direction will make up 2-3 losing trades and bring the total result in the positive direction. Market Exit In this strategy, some of the profits will inevitably be missed. No trend-following strategy allows you to take all of the trend movement at 100%, the Turtle system - is no exception to this rule. It is necessary to make sure that the trend is over, because of this the profit is somewhat reduced. The basic rules do not provide a fixed Take Profit. The trade is either closed by a Stop Loss or manually. At the beginning of each trade, the Stop Loss is placed 2N below the entry price in case of a long position or 2N above the entry price in case of a short position. This helped to reduce losses if the price did not change favorably after entry. If new positions are added (on every 1/2N favorable move), the last Stop Loss was also moved by 1/2N. This usually meant that the Stop Loss would always be 2N away from the most recent entry (although it could vary slightly depending on the slippage). There is another Stop Loss method called Whipsaw. With this method, the Stop Loss is placed 1/2N away from the entry point. If the price did not reach the Stop Loss, then System 1 and System 2 exit methods were used. If there is a breakout of the 20-day channel, the position is closed if the chart crosses the 10-day Donchian channel in the opposite direction. If the market entry was upon the breakout of the 55-day High/Low, the position is closed if the chart crosses the 20-day channel in the opposite direction. It is psychologically difficult to hold a profitable position and watch profits decline, but it is a must. If one fixes a profit before these rules are met, there is a great chance of not making a profit. Short-Term And Long-Term Turtle Trading When short-term trading, an interval of 20 days is considered. A maximum and minimum are determined. If the price breaks out the maximum by at least 1 point, it is a signal for buying. If the price breaks out the minimum over the same period, it is a signal to sell. If the previous trade in this system is profitable (it does not matter if it is executed or not), then it is not recommended to place an order. If the trend reverses on the 10-day extrema in the opposite direction from the position opening, it is a closing signal. The long-term system involves the use of daily candlesticks for a period of 55 days. The principle is the same: when the price breaks out the maximum - is bought, and when it breaks out the minimum - is sold. But it is recommended to place an order only with one unit (minimum amount). Then if the trend is steady the orders can be added, but no more than one unit each time. The signal for closing is considered to be a trend moving in the opposite direction to the opening at the 20-day extremums. What Are The Best Assets For Turtle Trading? The Turtles traded in large liquid markets. They had to do this because of the size of the positions they entered. They basically traded in all of these liquid markets except meat and grain. Grains were banned because Dennis himself reached the maximum amount in his trading account. The trader was limited to the number of options or futures he could have, which meant that there were no Turtles left to trade under his name. Here's an example of what the Turtles used to trade: 10- and 30-year U.S. Treasury bonds and 90-day U.S. Treasury bills; Commodities such as coffee, cocoa, sugar, cotton, crude oil, heating oil, and unleaded gas; Currencies such as the Swiss franc, British pound, Japanese yen, and Canadian dollar; Precious metals such as gold, silver, and copper. They also traded futures on indices such as the S&P 500. One interesting thing to note is that if a trader decided not to trade a commodity in the market, he had to give up that market entirely. So, if one of the Turtles didn't want to trade crude oil, they had to stay away from everything else in that market, such as heating oil or unleaded gas. How To Apply The Turtle Strategy To Forex Market Let's consider the work of the Turtle method on forex. Let's take a short-term period of 20 days. Let's select the pair with high volatility. If you remember, this indicator has not played the last role in the application of the method. With low volatility, the Turtles could "make the market" and the strategy would be powerless. The indicator ATR (Average True Range) is used to determine volatility. Using the Donchian Channels, we identify the trends for 10 and 20 days. The last candle is selected on the chart. Count backward from it 20 candles. The maximum and minimum are identified on these 20 candles. Horizontal lines are drawn through these points. If the price goes beyond one of the lines, it is a signal. The price breaks out the maximum - the currency should be bought The price breaks out the minimum - we should sell. The order is placed on an amount, which does not exceed 10% of the deposit. During the process, it is possible to make "additions". It is made only if there is a profit of 0.5% of the deposit. It may look like this. We have a deposit of $1000. Let us assume that the price has broken out the upper border for 3 points and a trade was opened for $100. The trend has steadily gone upwards. "Addition" can be made only when the profit from the invested $100 reaches at least $5. At that point, another $100 is added. The next addition can be made when the profit of $15, that is when the first trade will bring 10% profit, and the second 5%. The stop order is set at the minimum of the last three days. Count back three candles from the time of your entry, and find the minimum - this will be the stop order. If among the last three candles, a specific minimum is not traceable, then find the point corresponding to 1% of the deposit, and the stop order is set on it. For example, 1% of a deposit of $1000 is equal to $10. We analyze the price of one pip, i.e. one pip of currency movement. We divide $10 by the price of a pip. We obtain the number of pips that should be subtracted in the opposite direction from the trend direction since the trade was opened. We set the Stop Loss there. It is the same for the main trade, as well as for the ones we add. Exit from the market occurs when the price will fall to a 10-day minimum. For a short position, the exit point is the price of the 10-day high. For a long-term 55-day trade, 20-day candles are considered for determining the stop order and exit point. Conclusion In the Turtle experiment, the strategy itself is secondary. What is more important is that the real example proves that no talent is needed in trading. It is a profession, and everyone can master it. It is impossible to get the results demonstrated by the Turtles in casual trading. As for the strategy itself, even the basic rules still work. The best result is achieved in equities trading, on forex, it is necessary to optimize, and probably revise the rules to look for entry points in the H4 time frame. Long-term trends are formed less often here, so work in D1 shows no best result. In general, the Turtle strategy is considered quite profitable. But it is necessary to be mentally prepared for expectation and the correct arrangement of trading positions. Adhere to the conditions of entry into the market and exit from trading positions, and then you will achieve a positive result.
Education
by FOREXN1
18
📊 Understanding the Cup and Handle PatternA cup and handle is a technical analysis pattern that appears on a chart as a U-shaped pattern, followed by a small downward drift, resembling a handle. It is important to note that like all technical analysis patterns, the cup and handle pattern is not a guarantee of future price movements and should be used in conjunction with other analysis techniques. 📈Cup and Handle It is considered a bullish pattern and is often used by traders to indicate the potential for an upcoming price increase. The pattern is formed when the price of a security falls, reaches a bottom, and then rises back up to near its previous high before falling again. The downward drift that follows is the handle. The pattern is considered complete when the price breaks through the resistance level (the top of the cup) and continues to rise. Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern. 📉Inverted Cup and Handle After the cup forms and the beginning of a noticeable handle takes shape, begin to monitor trading volume closely. One way to think of the inverted handle is a follow-up to an inverted cup. The inverted handle retraces the initial move, but not to the level of the original trend. Once you see a retracement in the form of an inverted handle of the original inverted cup pattern, setting a stop loss while selling the trend could be a potential trade idea. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
Current resolutionAside of the usual things ie waves & levels, being on a given resolution, mainly we are interested in the direction in which trading activity develops (so called, trend, gradient, slope etc). It is not exactly necessary if you follow a vehicle on every resolution, this way you always know the direction by simply understanding whether we are in low res buying wave or we are in low res selling wave. Still it's useful, especially for spotting in real time how the trading activity reverses, how a low res wave ends (or not) . All these higher high and lower lows, mark ups & mark downs, trend lines (omg), "value" moving up or down, it was all close but not exactly on point. A trend aka tendency has not much doing about movement per se, it's all about a certain sequence of events. After numerous logical experiments, you will arrive to the following minimalist understanding. First let's define 2 things: long event and short event. Long events: 1) a level gets positioned as support; 2) a resistance gets cleared; Short events: 1) a level gets positioned as resistance; 2) a support gets cleared; When you see a sequence of 2 unidirectional events in a row, it means you have a tendency = trend. 1) when you see multiple long events in a row (2 is enough), this is up trend; 2) when you see multiple short events in a row (2 is enough), this is down trend; 3) when there's no sequence, this is "everything else"; Everything else is in fact a loosely defined case. Yes by definition it's the iteration between long & short events, and it works well, however this kind of activity may 'invite" emergence of very short lived trends (2 unidirectional events). That tells us this: 1) While being in an up trend, levels are expected to be positioned as supports and then hold when approached by the exhausted selling waves. 2) While being in a down trend, levels are expected to be positioned as resistances and then hold when approached by the exhausted buying waves. 3) While being in a "everything else" situation. You expect an iteration of long & short events. There are clues that can help in dealing with "everything else" cases, provided by comparative analysis between positioned level and waves. Comparison between levels is made the same way as with waves. Best of 3: 1) Price: distance between front & back parts of a level. Narrower - stronger; 2) time: a level that formed later in time is always stronger; 3) volume: you compare the current amount of volume gathered & consumed during positioning & testing processes. Higher remaining volume - stronger level. This way you can take 2 levels and obtain a binary answer which level is stronger. Now, you can compare the current level (the last level that was positioned) and the previous level positioned in the opposite direction. While being in "everything else" situation, in general, that'll mean comparing a support below and resistance above. Prices tend t go where it's easier. Yet another thing you can do is to compare waves as explained in "Wave exhaustion", but this time you'll be comparing current wave and the previous wave in the opposite direction. While being in "everything else" situation, in general, that'll mean comparing the current wave with the previous wave, and that wave will have the opposite direction. Comparing these 2 waves, you'll now in which way the order flow is stronger. On the chart, you can see a red arrow, a bar that produced 2 short events in a row: positioning of 3896 as resistance and clearing the support at 3890. Btw, another thing you can do is comparing levels in the same direction while being in a trend. When the're such sequence that levels in the same direction become weaker and weaker, usually it means that the overall trend is loosing motive strength. That's the info you can gain being on a given resolution, without having any other data.
CME_MINI:ES1!Education
by gorx1
ANALYSIS OF THE BULLISH MOVEMENTHello everyone! Today I want to discuss with you the bullish movement or bullish momentum. The topic is interesting, and most importantly profitable! Beginning of observations To begin with, we need an uptrend. If you open long positions when there is an uptrend in the market, you will make a profit more often. The best entry point will be a reversal, after correction. This is the moment we are waiting for. The beginning of the correction will be marked by the renewal of the lows and the scrapping of the upward trend. An imbalance appears on the chart, usually in the area of the level breakout.. Reversal+position opening The beginning of an upward movement begins to emerge when the price cannot update the minimum and begins to form each new minimum above the previous one. In addition, the structure breaks down and an imbalance appears in the area of breaking the level up. Long positions can be opened at these points. If you did not have time to open a position or want to wait for a conservative opportunity to enter, you can open a long position when the price returns to the previously broken level and tests it again. Goals Previous highs may be the targets. This price movement pattern is observed on all timeframes every day. With the correct use of this method, if you have trained well and learned how to correctly identify these points, you will be able to earn. Train, study and earn . Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
What is day trading?What is day trading? Day trading is the buying and selling of stocks, foreign exchange, commodities and other assets or financial derivatives during a single trading session. Traders speculate on the movement in asset prices by employing various strategies. Decades ago, day trading was undertaken only by investment firms, financial institutions, trading funds and brokerages. Today, online trading platforms have brought day trading to the palm of a retail investor’s hand. According to US investment bank BNY Mellon, retail investors have become a “growing force to be reckoned with”. Their share of total equities traded went up to nearly 25% in 2021, from the 10% to 15% reported in the first decade of the 2000s. For many retail investors, day trading has become a career. Others have burnt their hands trying to make profits from this risky and fast-paced short-term strategy. Now that we have gone through the definition of day trading, let us read more about day traders, their techniques and strategies, and day trading examples. Life of a day trader An experienced day trader’s session will start hours before the market opens or the night before. The trader will take their time to analyze price charts, investor sentiment, corporate news, macroeconomic developments and more. As the stock market opens in the morning, some traders may sit on the sidelines in the first hour of a trading session to avoid the opening minutes that tend to be volatile. After the market settles, day traders spend the day scanning for market opportunities. Day traders usually stick to securities that they have experience with as they will be aware of the little intricacies regarding that particular security. The day trader will open and close positions according to their price targets and risk tolerance. A trader’s setup may involve hedging to protect against unexpected losses. Day trading is particularly popular with foreign exchange traders. Popular Forex pairs have deep liquidity and tight spread, which allow day traders to speculate on small price movements. Strategies used by day traders To understand how day trading works, readers need to know about the various intraday strategies used by traders. Scalping Scalping involves a day trader aiming to speculate on small changes in an asset’s price. Traders place numerous short-lived scalp trading bets in a day so that small profits add up to a significant daily gain. Day traders need to implement a strict exit strategy to prevent large losses. Range trading Day traders are known for their use of technical analysis which involves identifying support and resistance price levels and analysing price trends, volume and volatility. Range trading involves buying and selling of securities between a range of price where the top price is determined by the price resistance level and the bottom is determined by the price support level. Algorithmic day trading Algorithmic trading involves execution of trade orders based on pre-programmed instructions based on price, time and volume of a security. Algorithmic trading is extensively used by hedge funds and investment banks to carry out day trades in large orders at high speed. This is also known as high-frequency trading. News-based day trading The trader will set up his trade setup based on trading opportunities arising from expected corporate and macroeconomic developments. An example of this type of day trading is anticipating a fall in broad markets before the publication of market-moving data such as inflation numbers or corporate earnings calls. Day trading explained through examples To better understand day trading, let’s look at the following example. Note that it is for educational purposes only and does not constitute investment advice. John is a self-taught day trader who has learnt the art of intraday trading over time through trial and error. He specialises in stock trading and is particularly interested in the US equity market. Over the years, John has traded Apple (APPL) shares extensively and is well-versed with developments at the iPhone maker. Before Apple’s fourth-quarter earnings announcement, John conducted a thorough research on Apple and concluded that the company will report strong revenue and profit growth. John aimed to trade using news-based trading and range bound trading techniques on the day of the result announcement. The trader opened an intraday position with a target price of $155, based on identified resistance levels, and a stop-loss at $135, based on identified support levels for Apple shares trading at $145. If Apple announces higher-than-expected earnings, which would cause the stock to rise to a level above $155, John will book profit. In case the company surprises on the downside, causing the stock price to fall, John’s position will automatically close when the price falls below $135, booking a loss. During the day, John will constantly monitor Apple’s intraday performance to react to unexpected market volatility and to adjust his profit-taking and stop-loss levels, according to real-time performance. by capital.com
Education
by Sahran_Mohammed
HOW TO DETERMINE THE TRENDHello everyone! Today I want to discuss with you the methods of trend identification. Finding a trend is an important task, because it is by trading according to the trend that you can earn a lot of money. PATTERNS Thanks to the patterns, you can understand where the price will go. There are many patterns confirming the trend: flag, pennant, wedge, and so on. The exit from these patterns is the confirmation of the strength of the main trend. Follow the patterns, they will help you find the trend. MA Moving Average is an important trend indicator and is quite clear and simple. The moving average is used by analysts in large banks and funds for a reason. The main trend indicator is the price rebound from the moving average. If the price bounces from the moving average towards the trend, then the trend is strong. CHANNELS The trend pushes the price in one direction and even the corrections become shorter. Under such conditions, the channel boundaries are directed towards the trend. Channel breakouts also occur in the direction of the trend, which is a confirmation of the trend. FIBONACCI Thanks to the Fibonacci levels, you can identify good entry points. It is enough to stretch the grid to the price impulse. This trend helps to open a position with a good entry point. And what methods do you use to identify the trend? Traders, if you liked this idea or if you have an opinion about it, write in the comments. I will be glad 👩💻
Education
by Lingrid
47
Harmonic Pattern with Multiple Confluence for Point X and DThis is an example of regression channel with harmonic pattern. By using Simple OHLC Custom Range Interactive, we able make confluence point (blue) to get Point X of Bullish Butterfly. There are many confluence points (orange flag and teal table), which shows Point D of Butterfly starting to complete. For Point D, best to monitor price changes using RSI or other similar RSI (Cyclic RSI, etc). Indicator used : 1. Regression Channel Alternative MTF 2. HH-LL ZZ 3. XABCD Harmonic Pattern Custom Range Interactive 4. Simple OHLC Custom Range Interactive 5. Cyclic RSI High Low With Noise Filter
MYX:FKLI1!Education
by RozaniGhani-RG
Markets Using the Insync IndicatorInsync Trading: Analysis of the Markets Using the Insync Indicator Insync Trading is a system that uses the Insync Indicator to help traders analyze the markets. The Insync Indicator is designed to help traders keep track of price trends and volatility. The indicator can be used to help traders make informed trading decisions. image.png What is the Insync Trading indicator and how does it work? The Insync Trading indicator is a technical analysis tool that is used to identify potential buying and selling opportunities in the market. It is based on the idea that price and volume are interconnected, and that when there is a large volume of trade at a certain price level, it is likely that the market has reached a point of equilibrium. The Insync Trading indicator can be used to identify these equilibrium points, and to generate trading signals accordingly. How can the Insync Trading indicator be used to analyze the markets? The Insync Trading indicator can be used to analyze the markets in a few different ways. Firstly, it can be used to identify when the market is in a trend. Secondly, it can be used to identify when the market is in a consolidation phase. Finally, it can be used to identify when the market is in a ranging phase. What are the benefits of using the Insync Trading indicator for trading? The Insync Trading indicator is designed to help traders make better trading decisions. It does this by providing information about the current market conditions, and by indicating when a trade is likely to be profitable. The Insync Trading indicator has a number of benefits: It is easy to use. The indicator is simple to understand and easy to apply t0 your trading strategy. It is accurate. The indicator has been tested and proven to be accurate. It is reliable. The indicator is reliable and consistent, giving you accurate information every time you use it. It is updated regularly. The indicator is updated regularly, ensuring that you have access to the latest information about the market. It is affordable. The Insync Trading indicator is affordable, and it is a valuable tool for traders of all levels of experience. It is flexible. The indicator can be used for a variety of trading strategies, giving you the flexibility to adapt it to your own trading style. It is the best indicator for trading. The Insync Trading indicator is the best indicator for trading, and it can help you to make more profitable trades. The Insync Trading system is a great way to keep track of price trends and volatility. The Insync Indicator is designed to help traders make informed trading decisions.
FOREXCOM:XAGUSDEducation
by RobinhoodFX
Everything I've learned about the RSI BINANCE:BTCUSDT In this post, I'll make an attempt to share everything I've learned over the Relative Strength Index (RSI) Over the past 24 months. Nothing described in this post is financial advice, it's just me, sharing thoughts and ideas with you. nb: this post is more suited for traders and investors that are already educated about the RSI Indicators. A brief introduction about the indicator itself : The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate whether it's better to buy, sell, or wait. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The RSI is probably the most used oscillator in finance nowadays, by both retail traders and institutions, hence meaning that when used well , it can be used as a great edge to profitability. RSI popular uses : - An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. - The RSI can give us insights on a potential trend's loss of momentum or validity when the price pivots levels are diverging with the RSI indicator (hidden and regular divergences) - The most popular RSI length is 14 periods. My findings 1. Overbought and oversold: myth or reality? RSI's 30 and 70 levels never proved themselves to be a strong enough edge for me to be used as a standalone signal for trade entries. As an example, just look at the irregularity of the results you would get when using just these zones : My take on it is that as a price oscillator when it crosses into extremes, it simply means price momentum is at extreme levels. To me it's basically like a mountain cyclist in the middle of a race: he might very well go faster and higher, however, the quicker and higher he goes the more unlikely he is to keep up with that speed. Eventually, he might either decrease its speed or even go backward. What does this tell us ? The RSI 30 and 70 levels seem to be better used when used as timing indicators. For example, the 70 and 30 levels could be used as a filter for a trader to eliminate market noise when using a trend reversal strategy (mean-reversion). For trend traders, the levels could be used to timing signals where they'll start looking for price to do a pullback (consolidation) to get in the trend. My experience using the 30 and 70 levels as exit signals however has been better (when it comes to using it as the only signal for a trade exit). Say you are long on BTCUSD, in profit, and you get an RSI closure above 70. Well, in that case, you could exit 50% of your position and wait for the oscillator to cross down the 70 levels to exit the rest (as the overbought and oversold zones are rarely a defining factor for trend reversals and corrections). 2. Divergences in the overbought and oversold zones : The lower the time frame you are trading on is, the higher the noise when it comes to divergences, especially with volatile assets such as BTCUSD. So you might want to filter out most of the ones you see to only take the best ones. On the 15M and 5M timeframes, on BTCUSD, I find that on average about 1/3 of the divergences I see play out. However, we are not expected to take every divergence we see. Here's what has helped me get better results with divergences : - When approaching supply and demand zones, especially the higher timeframe ones, we might want to be more aggressive with the divergences we enter into. As the hit rate is not always amazing, the R:R is usually much better, and if the trade works out, it might give you great results which accounts for the low win rate. - If you want to increase your win rate, I also find that going for higher timeframes is usually better when it comes to divergences. - Take only divergences where RSI divergence's first pivot point is over 70 or under 30. Ideally, you don't want the noise to go below 60, or above 40, so that your trade has the necessary momentum to play out. - For extra confirmation, wait for a break of the noise level to enter the trade. - Regular and hidden divergences play hand in hand creating a form of momentum equilibrium. Hidden divergences always create regular divergences and vice versa. Hence a hidden divergence can be considered an early pullback warning to get in a bigger-picture trend. - Regular divergences tend to play out better than hidden divergences. This is especially true when the volume is decreasing, or after a longer period of consolidation when volatility has been contracting and might be about to expand soon. - Regular divergences in strong trends can be both a disaster and a treat. "The trend is your friend". This saying is especially true here. However, 2-3 drives of regular divergences are a great indication of a potential reversal, with enough confirmation factors to produce (often time) a great entry. - The angle of the trend line between divergences pivot points, both on the price chart and the RSI, can be a good indication of the severity of the divergence occurring. - The ideal lookback period for detecting divergences for me has proved to be between 5 and 28 bars. (Below 5 bars is not enough to confirm a true pivot point for me and above 28 bars has probably already played out in past price movements). - Like all edges, using a divergence strategy always produces better results when used in confluence with other signals. I find the best confluences happen when divergences occur: alongside a stochastic cross, near medium-slow moving averages, near horizontal supply and demand zones, alongside volatility expansion, when the volume is decreasing (meaning market makes are in disagreement with the move occurring), near Bollinger bands 2.5 to 3 standard deviations (period 20). - Convergence between your timeframes and higher timeframes is key to understanding how to better choose your trades. Try to play the big divergences but enter smaller timeframes divergences. - When you lose a divergence trade, don't get disappointed. Jump back in because often time, and price will need to do several divergences before getting in your desired direction (however, be careful not to jump in tilt mod. Know your win rate and R:R and keep your money management serious. You'll get blown out if you start tilting on this, especially if you trade reversals with divergences, as it's difficult to get the right timing every time). 3. RSI as a trend filter? - I've found that in trending markets, when RSI's Exponential Moving Average (EMA) crosses above the 50 line, it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - I've found that in trending markets when the RSI line crosses above the EMA (I use a 12 period), it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - As an indication of the trend's direction, I don't find any value in using bullish and bearish control zones. The only use I can find them is when using them for divergence levels filters. This is the end of the first post of this 2 parts series. There's just so much more you can discover about this indicator that it simply cannot be constricted to a few lines of writing. However, you are welcome to take a few of my findings and go test them out using replay and backtesting. See for yourself, and find your balance. Most of my learnings have been made through screentime, trial, and error, backtesting, mistakes, and research. Have a good day, Arthur Girard
Education
by arthurgirard15
Counter TradeHow to take counter trade ? in this video we try to make it easy to took a counter trade (Against the trend) and to make quick money from market #nifty #priceaction #priceactiontrading #optionanalysis #banknifty #bankniftyprediction #nifty50 #niftytomorrow #niftyprediction #niftyanalysis #niftyfifty #niftytoday #niftybank #banknifty #bankniftytomorrow #bankniftyprediction #bnkniftytrading #charts #technicalanalysis #crypto #sensex #nse #nseindia #bse #optionsellingstrategy #optionstrading #optionsellingstrategy #optionstrategy #optiontrading #optionsellingstrategy
NSE:NIFTYEducation
by gurubhai
Back to Basics - Trend and trendlinesThe first thing to do when looking at any chart is to identify the trend. What we need mean by trend? We simply mean what direction is a market moving in? Luckily there’s only three ways a market can move - it can move up; it can move down or it can move sideways. How do we identify the trend? The definition of an up move is for higher reaction highs and higher reaction lows. The definition of down move is for lower reaction highs and lower reaction lows. The definition of a sideways trend is when the highs and lows are about the same level. Once we’ve identified the trend. It’s helpful to place on a trend line, now In a down move really you want to be connecting the highs and for a valid trendline you need to connect at least three highs. Why do we like to do this? because trendlines help to enforce discipline and not only that but they offer potential entry points. They also help you with timing and they can give you a good place to put your stops. It is worth noting that the longer a trendline the more important it becomes. So a 3-month trend line is more important than a 3-week trend line.
Education
by The_STA
Nava Imbalance Strategy - BreakoutsPrice Action Trading Strategy. 1. Make Channel & highlight Imbalances (3 Touches for confirmed Trend Channel) ENTRY 1:. Wait for price to pass Imbalance in trend direction. Then Wait for Break/Retest of Trend Channel (showing trend weakness) + Entry Setup (Double Bottom, Head & Shoulders, etc.) Entry Signal- Engulfing Candle, Doji, RSI OB/OS, MacD, etc. ENTRY 2:. Wait for price to break Resistance + Retest (Price passes last imbalance + Entry Signal)
BITGET:XRPUSD.PEducation
by JOKESTV