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Technical Analysis. HOW to identify trend,support and resistance📊Technical analysis Technical analysis is a way to predict the future price movement according to the price chart. The price takes everything into account - this is the main idea of technical analysis . This idea means that we only need to see the price chart to find out where it will go in the future. The main tools of technical analysis are trend lines , support and resistance lines. So how do you find them on the chart? 📈Downtrend and Uptrend📉 The price is always in motion and when the price shows each new high below the previous one and each new low below the previous one - we say that there is a downtrend now and to make it clearly visible, analysts connect the highs and lows with lines - this is how the downtrend lines are drawn. To identify an uptrend, the same idea is used, only in a different direction - every time the price forms new highs above the previous ones and new lows above the previous ones, we say that there is an uptrend now. ➖Support and resistance➖ Combining the highs and lows, technical analysts noticed that the price is facing resistance on the one hand and support on the other. These zones prevent the price from going higher or lower, depending on the trend. It is very important to see these zones, because, as a rule, trade is conducted from them. Also, there are frequent moments when support, after its penetration, becomes resistance. ❗️Remember❗️ It is important to remember that the trend, resistance and support lines are just zones and the price sometimes goes beyond the lines, but then comes back. The price will make false breakouts of resistance or support from time to time. This is normal and it should always be remembered. It is important that the price rebounds from these zones at least twice, so that there are reasons to draw lines and identify the trend. 🚀Profitable Result🚀 Thanks to these simple methods of technical analysis , a trader can easily determine the trend and avoid stupid money losses, the method will also help in the correct setting of stop orders, which will make your trading more accurate and more profitable. Trend is your friend, be able to find it.
TVC:DXYEducation
by tima_tip
Technical Analysis. HOW to identify trend,support and resistanceTechnical analysis Technical analysis is a way to predict the future price movement according to the price chart. The price takes everything into account - this is the main idea of technical analysis. This idea means that we only need to see the price chart to find out where it will go in the future. The main tools of technical analysis are trend lines, support and resistance lines. So how do you find them on the chart? Downtrend and Uptrend. The price is always in motion and when the price shows each new high below the previous one and each new low below the previous one - we say that there is a downtrend now and to make it clearly visible, analysts connect the highs and lows with lines - this is how the downtrend lines are drawn. To identify an uptrend, the same idea is used, only in a different direction - every time the price forms new highs above the previous ones and new lows above the previous ones, we say that there is an uptrend now. Support and resistance Combining the highs and lows, technical analysts noticed that the price is facing resistance on the one hand and support on the other. These zones prevent the price from going higher or lower, depending on the trend. It is very important to see these zones, because, as a rule, trade is conducted from them. Also, there are frequent moments when support, after its penetration, becomes resistance. Remember It is important to remember that the trend, resistance and support lines are just zones and the price sometimes goes beyond the lines, but then comes back. The price will make false breakouts of resistance or support from time to time. This is normal and it should always be remembered. It is important that the price rebounds from these zones at least twice, so that there are reasons to draw lines and identify the trend. Profitable Result Thanks to these simple methods of technical analysis, a trader can easily determine the trend and avoid stupid money losses, the method will also help in the correct setting of stop orders, which will make your trading more accurate and more profitable. Trend is your friend, be able to find it.
TVC:DXYEducation
by tima_tip
Trends in Technical Analysis 📈📈✨What are the trends in technical analysis and what is its application in digital currencies such as Bitcoin and other cryptocurrencies? In the second part of the tutorial, we will look at the trends. The concept of trends is definitely one of the principles of technical analysis. All the tools that we will teach in the following are created from patterns, oscillators, support and resistance levels, indicators, and with the aim of helping to measure the price trend. Even if you have been in the market for a short time, you must have heard the words, "Trend is your friend", "Always trade in the direction of the trend", "Never fight the trend". These are common phrases that you often hear in the market. So we need to take the time to define the process and know its types. Bitcoin price chart consists of uptrends, downtrends and neutrals John Murphy describes the trend in her valuable book, Technical Analysis of Financial Markets: The market never moves in a straight line. Market changes are characterized by a series of zigzag movements. We call these market zigzag movements. The result of the motion of these waves is TREND. ✨Classification of trends in technical analysis ▪️ Uptrend The uptrend is defined as a series of ascending waves. Charles Dow defines an uptrend as follows: "When a price is higher on an uptrend than the previous uptrend, or when the price is on a downtrend above the previous uptrend, we have an uptrend." In other words, the uptrend is a pattern of upward fluctuations. An uptrend indicates a greater power of demand or purchase over supply or sales, referred to as the "BULLISH market". The uptrend in technical analysis is the result of several uptrends ▪️downward trend The downtrend is formed as a series of downward waves. Charles Dow described the downtrend as exactly the opposite of what was said about the uptrend. This means that whenever the price is lower in a bearish wave than the previous bearish wave or the price is lower in a bullish wave than in the previous bullish wave, we have a bearish trend. A downtrend indicates a greater supply or demand power over demand or a buy, a "bearish market". The downtrend in technical analysis is the result of several downtrends ▪️ Range trend The Range trend consists of a wave or waves of ascending and descending that have a direct direction. In other words, if the price can not go above the peak of the uptrend or the price can not go below the bottom of the downtrend, we have a Range trend. A Range trend indicates a relative balance between buyer and seller power or market supply and demand. "Range market" refers to this trend. The Range trend in technical analysis is the result of several neutral waves ✨So far, we have defined the concept of trends in financial markets. We may be trending in the market but we need another tool to confirm our diagnosis, trading volume is the tool we need. According to Dow, trading volume is a secondary but important factor in confirming warnings derived from price analysis. In general, keep in mind that trading volume should be in line with the direction of the main trend. In the uptrend; Each ascending wave is accompanied by an increase in volume and each descending wave is accompanied by a decrease in volume. Trading volume should confirm an uptrend In a downward trend; Each descending wave is accompanied by an increase in volume and each ascending wave is accompanied by a decrease in volume. If you have any questions, comment for me🔥🔥
BITSTAMP:BTCUSDEducation
by seyed_mehdi
4
Part 1 - How to identify Trend Reversal | Market StructurePart 1, We are going to look at how to identify a trend reversal using the Market Structure and BOS (Break of Structure). Important things to remember: 1. When the Market Structure is Bullish - Price will be breaking previous Swing Highs but respecting Swing lows. 2. When the Market Structure is Bearish - Price will be breaking previous Swing Lows but respecting Swing highs. 3. Always Expect Market to break structure at any time And monitor Market Structure on HTF. 4. In Bullish market focus on the swing lows not the swing high ( Buy Low) 5. In Bearish Market focus on the Swing highs not Swing lows ( Sell high) Stay tune to Part 2. We be analysing using Wyckoff Method. Leave a comment below if you find the tutorial useful.
UEducation
by DynamicCapital-FX
6
Cómo funciona EP TREND HEATMAPHola a todos, en esta ocasión explico el funcionamiento de un nuevo indicador, EP Trend Heatmap (mapa de color de tendencia). Es un indicador que muestra de forma simultánea la tendencia en varios timeframes, de forma que nos da una visión de conjunto de la situación del activo, ayudándonos a tomar decisiones con más seguridad. Se relaciona estrechamente con otro indicador, EP PRISM, que se basa en las mismas medias. EP Trend Heatmap muestra algunos patrones muy interesantes que nos ayudan a encontrar zonas de entrada en compra bastante seguras. Muy interesante el patrón "cielo despejado" que comentamos en el vídeo. Este indicador puede tomarse también como filtro adicional para las llamadas a compra del indicador EP PRISM. A pesar de que estas señales son por si mismas muy eficaces, nunca bien mal una "segunda opinión" que nos permita tomar decisiones con más seguridad. Espero que os guste!
NASDAQ:COSTEducation
by EP-Trading
MARKET ALPHA - HOW TO FIND TRENDLINESIt's extremely important to look at price action where you are looking to place your trendline. What I like to first start off is with looking at the areas where we have seen either gap up or gap downs. Starting at the most significant relative area to my analysis, I will continue that line, scoping out other gap areas if within reason. Some are very obvious. This one was one of the easier ones to spot. I would recommend going over this chart and looking to see what it was buyers AND sellers were thinking at that moment. Would a skeptic seller have to become a buyer? Could buyers be running out of cash or is there enough liquidity to keep the stock down? This is where technical analysis comes in. It helps you understand the more important levels easier and faster. I hope this helps. Enjoy! NYSE:AMC
NYSE:AMCEducation
by jakelikesstocks
1
How to use Volume with Trends.Volume is a useful tool for studying trends, and as you can see, it can be used in a variety of ways. Basic principles can be used to determine market strength or weakness, as well as to determine whether the volume is confirming a price increase or decrease.  Volume-based indicators are occasionally used to aid in decision-making. In conclusion, while volume is not a precise tool, price action, volume, and volume indicators can be used to identify entry and exit signals.
NASDAQ:AAPLEducation
by MoonBets
42
My investment strategy. Example of my own $AMD position.I've been investing in NASDAQ:AMD since the last year. AMD is one of my biggest positions. For my long-term investgment portoflio I use fundamental analysis to evaluate stock buying opportunities. If I like the company I then use technical analysis to determine entries, exits and targets. Here is my technical setup on NASDAQ:AMD I use a combination of technical indicators. Here is my process: 1. Determine current long-term trend channel. 2. Find supply and demand zones to form a box inside which a stock is currently moving. 3. Watch for the box breakouts using volume as an indicator of move's worthyness. 4. Find new boxes after the breakouts using the same process. 5. Rince and repeat. This investment strategy is pretty flexible. You can day trade/swing trade inside the boxes. You can buy the breakouts when you identify them and sell in the next box. You can accumulate large positions at demand zones of multiple boxes for a long-term. Personally, for my long-term investments I add to positions after the bounce off of the demand zone and trim after breakouts when the move reverses to form a new box. --------------------------------------------------------------------------------------------------- Please let me know if you want to see a deeper dive into fundamentals in the future. --------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise.
NASDAQ:AMDEducation
by AyBe_Invest
How to predict the market moves easily by Forecast indexHello traders! everyone wants to know where market will go at future, by Forecast index you can easily realize if the price can maintain its trend or not Forecast index consisted of trend momentum, trend volume and trend strength which identify future trend reverses Forecast index show you future trend revers by its direction before of every trend reverses , Forecast index change its direction faster than price.. which we call it miracle! its work properly on every chart and time-frame, it becomes a bless at long term trends... to purchase this indicator leave a comment below of this post... Thank you! 1-month= 99$ 3-months= 249$ lifetime access=440$ ***also you have 3-days free trail***
BINANCE:TRXUSD.PEducation
by Ghost3ader
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 2-H time frame chart, you can see the panel of the latest breakouts on it (You can enable the panel in the settings menu): How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
BITSTAMP:ETHUSDEducation
by BobRivera990
2
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 15-min time frame: How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
NASDAQ:QQQEducation
by BobRivera990
7
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 2-H time frame: How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
NASDAQ:TSLAEducation
by BobRivera990
4
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 3-min time frame: How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
Education
by BobRivera990
13
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 5-min time frame: How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
BITSTAMP:BTCUSDEducation
by BobRivera990
2
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts 4) Analyzing smaller time frames is time consuming and tedious, but this tool makes it easy. The following figure shows 1-min time frame: How it works? Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01 (Red Lines) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
BITFINEX:XRPUSDEducation
by BobRivera990
Indicator introduction: Auto Trendline & Breakout AlertNote: This indicator will be published soon In short, this indicator is a tool designed for different purposes: 1) Automatic drawing of trend lines 2) Classification of trend lines based on the reaction of price chart and trading volume 3) Receiving trend lines breakout alerts Trend lines are classified into 6 levels, of which only 3 are enabled by default. Level 01(orange) is the strongest level. Therefore, the breakout of these lines is the most important signal of this indicator. Volume verification helps you avoid fake Breakouts. As you can see, both the labels and the table show the status of the trading volume when the lines breakout. Trading volume is classified into 5 levels: Over volume (confirmed ✅) High volume (confirmed ✅) Neutral Low volume (potential fake breakout ❌) Minor volume (potential fake breakout ❌) This indicator can be used on both logarithmic and linear charts. (Scale in the settings menu can be changed from linear to logarithmic) Finally, this indicator includes a trend line breakout alert and you can be notified wherever you are. you can add alerts to different charts and enter the market in the best conditions. If you like it, please leave a comment.
Education
by BobRivera990
9
Williams Alligator Indicator: Guide Part 24The late iconic forex trader Bill Williams formed the Williams Alligator technical study indicator in 1995. He gave the indicator his name. In addition, he was developed other primary indicators usually used by traders today. Certain of those indicators are Williams Fractal, Awesome Oscillator, and Accelerator / Decelerator Oscillator. The Alligator indicator follows the conjecture that financial markets and individual stocks trend only 15 to 30 percent of the time. As it grinds to the sides, it changes the other 70-85 percent of the time. The inventor believed that people and institutions collect most of their profits over periods of deep trend. What is the Williams Alligator indicator? The crocodile is both a metaphor and an indicator. 3 lines make up the indicator, overlaid on a cost chart. They represent the jaw, teeth and lips of the beast. He designed it to help traders confirm the existence of a trend and its direction. The indicator can further assist traders in naming encouraging and corrective wave formations. However, it works best once used in conjunction with a boosting indicator. There are different "aspects" of the crocodile. If you mix the 3 lines, the Alligator's mouth closes and the merchants claim that it is sleeping. As he sleeps, he grows hungrier minute by minute, waiting for a dissolution of his lethargy to ingest. Once the trend takes shape, the crocodile wakes up and begins to ingest. Once full, he closes his mouth again and rests again. The Alligator indicator uses 3 smoothed moving averages, set at 5, 8 and 13 periods. They are all Fibonacci numbers. Calculate the first smoothed average with a simple moving average, adding smoothed averages that slow down the turns of the indicator. Importance of the Williams crocodile The author of the indicator has been a pioneer in financial market psychology. He made some of the most used technical indicators today. He can use the Williams Alligator indicator to find the lack of a trend. In addition, the trends that remain beginning to form and the markets that began to trend. Technical traders have the ability to use this information to dictate when to enter or exit the market. How does the Williams Alligator work? He formed the indicator on the rule that the asset should trend 15 to 30 percent of the time. They do this as they remain stuck in a narrow trading range the other 85 to 70 percent of the time. The author was sure that the first thing is once most of the institutional traders record the majority of their profits. Additionally, the moving averages that make up the Alligator indicator commonly have the potential to act as dynamic support or resistance. You can use it as a buy or trade signal depending on which direction the lines cross. Also, if the candles close above or below the indicator lines. Crocodile formula The crocodile is both a metaphor and an indicator. 3 lines make up the indicator, overlaid on a cost chart. Williams designed it to help traders confirm the existence of a trend and its direction. The Alligator indicator can further assist technical traders in deciding on encouraging and corrective wave formations. However, it works best once it is combined with a promotion indicator. The sequence of the calculation formula includes these 3 steps The crocodile's jaw, the "blue" line, is a 13-period smoothed moving average. 8 bars move you into the future. The Crocodile's Tooth, the "Red" line, is an 8-period smoothed moving average. 5 bars move you into the future. The lips of the crocodile, the "green" line, is a smoothed 5-period moving average. 3 bars move you into the future. 3 smoothed moving averages make up this indicator. Traders will rarely add an "oscillator" like the "CCI" to improve the cost of trading signals. The business mixes the "jaw", the "teeth" and the "lips" as the alligator sleeps throughout the initial portion of the cost action depicted. The green line moves first once the crocodile wakes up. Follow the red line to confirm a separation in a totally new direction. The ICC first issued an overbought alert. The Alligator lagged behind, however confirmed the signal after a candle closed below the group of 3 lines. The depletion of the indicator is that the timing may be delayed as a result of its future positioning. It is for this reason that it is necessary to attach a promotion indicator to anticipate the signal of a crocodile. The Alligator helps operators stay in position longer and performs better the longer the period of inaction. In the example above, you would stay in business until a candle culminates above the center red line. Williams also designed a "Gator" histogram indicator to aid visual interpretation. Other traders have integrated his ideas to improve the reliability of this indicator. Special Considerations The indicator uses convergence-divergence interrelationships to develop trading signals. The jaw makes the slowest turns and the lips the fastest. The lips crossing down through the other lines indicate a possibility of a short marketing. In what crossing up suggests a possibility of purchase. How to use the crocodile indicator The indicator gives signals once the 3 lines: jaw, teeth and lips meet and split. They signal a change in trend. Once the 3 lines diverge widely, there is a deep trend that suggests that the alligator's mouth is being fed. In other words, according to Williams. However, once the 3 lines start to narrow and converge, it shows that a trend is weakening and how quickly it could reverse. In addition, it shows that intense displacement is approaching. Traders will want to see if there is a crossing of the blue and green lines. In addition, they observe the closing of a candle through the lines of the indicator before acting. Combining the Alligator indicator with other trading tools Not even a commercial tool is perfect. This means that traders are constantly trying to find ways to use various indicators. Certain traders have the ability to observe a trend indicator that uses a different procedure to see if it ensures signals. This refers to the use of a crocodile indicator, exemplifying. This will help remove the wrong signals in the resting stage of the Alligator indicator. It could also improve the timing of trading signals. Tips for traders and common mistakes you should avoid with the Alligator indicator It is common for dealers to get caught up in the market once they use the Williams Alligator. According to Williams, throughout that situation, the alligator is still sleeping and has not yet woken up. This indicates that traders have to wait for another claim. They also have to wait for the cost to reflect the change in trend indicated by the indicator. Traders have to try to watch the mouth opening along the rise or fall of cost. They slowly close again once volatility subsides, showing a viable trend reversal in the future due to the weakening of the present trend. Conclusion The Williams Alligator indicator is a complex technical study instrument, however quite fundamental and profitable. One of the most legendary forex traders to ever exist designed this indicator. Traders have the possibility to use it in forex, commodities, stock indices and cryptocurrencies, among the various financial assets. The trading program could be expensive, however several platforms have charting tools built into the trading panel. This gives an impressive cost to traders. The application of tools such as Williams Alligator and stop-loss custody makes it possible for traders to spread their profits instantly, safely and with quite little start-up capital. This indicator is usually quite useful together with the current trend, and to see possible trend changes. If the trend is bearish, it will prioritize seeing resistance zones. If the trend is bullish, prioritize seeing supports. And when the moving averages are approaching, it is best to stop trading and see where the change is headed for a possible continuation or reversal. Add any complement, although they usually combine it with fractals. There are already almost 900 pages of the guide, remember to support me in any way, leave a comment ^-^
Education
by UnknownUnicorn18500526
14
EURUSD Recent Price Action| Identifying a break of a key levelEvening Traders, In this educational post I will analyse how a price action level breaks and puts in a retest. Assessing the chart, we have a clear Resistance on the left that was breached with an impulse break. The level was retested and confirmed as support with an S/R Flip Retest. This shows strength in the price action; however volume was not evident, leading to a bearish expansion back below the level. EURUSD eventually retraced and broke the resistance again with a strong impulse and is currently trading above the level. For this breakout to be valid on the retest, we need to see an increase in the volume profile. This will signify a true break as incoming volume will lead to an expansion. I hope this educational peace helped, Thank you for following my work!
Education
by The_Alchemist_Trader_
2
How to read a Chart - Part IV: Perspectives on PoIPoints of Interest Introduction One of the most common mistakes in trading ist the trading somewhat somewhere in the nowhere, which in general results in a bad trade location, wide stops, being stopped out very often or being right while being wrong. Thus, in trading it is paramount to wait patiently for your setup to appear, and not every setup is of the same quality. Even though high quality setups are not appearing on a 1-minute-, 5-minute- or 60-minute-basis, waiting will actually not only save you money, but also result in higher profits, higher trading confidence and less stressful decision-making. Even if you’ve already heard of the basic principles, they are just right. A. Highs and lows As I’ve pointed out in my previous article “How to Read a Chart Pt. III”, the highs and lows on a daily chart are building the overall structure. Don’t get me wrong: the weekly has some nice perspectives too, but you should watch it if you are an investor going in for 10+ years. The highs and lows on a weekly chart still do have importance on lower time frames, but you shouldn’t make a decision on trading entries for a plus 5 years investment opportunity on a 1-minute- or even a 1-second chart. Why are highs and lows important? They are used as reference for past and thus future resistance. Does this always apply? No for sure, that's why structure is important. So before we’re diving deeper into this subject, let's have a quick comparison of weekly and daily highs and lows. I’ve marked the high and low of the weekly chart in thick red, just to show that everything you might see on a weekly basis you're also able to see on a daily basis. In orange is the range of the past week and in blue the range of the current week. So in general: if we’re trading above the previous week’s range, we are in general long biased, if we’re trading below the previous week’s range, we are short biased. Does this always apply? No! But when does this apply? When the big fishes, the “whales” are showing interest in selling or buying at those specific points. Something we can derive from the chart above is the following: the previous week’s low got rejected, but the value is shifting down; this means, that if we’re trading above the current week’s high there are two scenarios: either we’re going up fast, breaking the previous weeks high or we are being rejected and shifting down again - at least to the bottom of the range. If we're going below the low, it might go quick, fast and harsh. B. High and low of the previous day Applying this principle from chapter A to intra-day trading, it goes alike: in general, if we are trading above the previous day’s high, at large we are long and if we are trading below the low of the previous day, we are short. Let’s unfold this beauty of perspectivity: In the picture above I’ve used a random high/low indicator - displaying the highs and lows of the previous day's session - as there are hundreds and hundreds to be found on @TradingView and the reason why is quite obviuos and well justified. I’ve also added “setups” to show you what to expect if you would have traded blindly every single break above the high or below the low. Even if you would have no specific view on the market, no bias or any idea of the markets direction you still would have made 4X (40 times your risk ! ) at win ratio of 56% - which most people would say is "not good". C. Ranges So what are the zones between a day's high and low? It's nothing else than the day's range. You may find ranges on bigger and smaller scales, on a 1 minute to 1 year time frame. What are these ranges? They are zones of congestion, zones of consolidation and zones of value, but mainly they are battlefields. Let's have a look on a chart: I've just plotted some of these zones to point out one thing: if you're trading within the zone, you're lost and you will most likely lose money even if you're right about the direction. You need an edge in trading, and the easiest thing is to trade from one edge to the other edge until a breakout has been confirmed. D. Big Bars / Big Fat Candles Don't mistake me: this is not about day drinking, romantic candle light dinner or something like this; it is about big fat candles on a chart and what happened there and what is likely to happen. Some should note that a range on a lower time frame is nothing else than inside bars on a higher time frame. Usually a big fat candle appears if stops have been triggered and thus the sentiment has shifted. So, somewhere within this big fat candle there is support or resistance and it depends on volume and sentiment if we're about to move further in this direction or not, but mostly it is indicating momentum. If you want to trade pullbacks, you need to figure out where the breakout has happened; usually it has happened before the top or bottom of the corresponding range. Additionally, if a big fat candle got retraced to 100 percent, something is fishy, whilst a strong breakout should indicate only a partial retracement if the traders are committed to push prices further in their direction. E. Value areas and Points of No Interest As I'm using the free version of @TradingView , I would've attached an image from my order flow software, because there is no decent free volume profile indicator displaying value areas (if I'm wrong, post a link in the comments), but it seems that the image upload didn't work, but anyway. The point I'm trying to make ist this: value areas are showing zones where price is seen as fair and thus the most volume has been traded. If you're using a market profile (tpo or monkey bars), it is showing where price has been traded most of the time. Outside of this range, price is considered unfair, and this is - exactly as ranges overall - where your edge is. Zooming out and seeing the bigger picture is extremely helpful to not get caught in war zones of higher time frames and big players. On this chart above I'm using the 200 period volume profile of @LuxAlgo ,visually a beautiful piece of art. Furthermore, it is displaying somewhat similar to a value area and - even more interesting - the valleys in the profile, also called low volume nodes. To use these valleys as reference, you should not make the mistake and look where price has not been traded at all, but where supply and demand have diminished; this is blatantly simple: if there haven't been buyers or sellers at all, price will move on; so you need at least a certain threshold of trading activity. In grey I've plotted the borders of the range. As you can see, as soon as the price has reached these areas, a reaction has happened. On the upside, it was a head fake, false breakout, emerging head and shoulders pattern or simply: no more buying interest. When price broke down you could have easily entered at the rejection or at the pullback. Another zone of no interest is the light purple area, which has been established by big bars breaking through it and where one side has been swept. When price broke through and traded above, you could've used the pullback to go long (in the middle of the range though) or when it broke below to go short or to finally close your losing long position. Quick cheat number 1 on applying support and resistance: Switch to a line chart, check for the prominent highs and lows, switch back to candle or whatever your preference is and adjust (or don't ;) ). 3 different types of charts, all displaying the same. It is not perfect, it is not a pin point "you will always win and never lose" system, but markets consist of humans which aren't perfect either; and as long as machines are made by men, they aren't neither. And this is the reality of trading: nothing is a one-shot, a bullseye; nothing is perfect. At last, there is more to trading than placing a limit order into a chart and get rich quick. Quick cheat number 2 (that no one will tell you because it is too simple to sell it): Look to the left! Markets have memories, because - and I'm repeating - markets consist of humans, and the only reference points others may use are not any calculations, extensions or fantastic AI structures: at the end it is all derived from history. How did price react at the last reference point? What happened next? Let's quickly example this: Think of it yourself: do you want to re-evaluate every tick hunting for signals on a vast amount of indicators or are you just keeping it simple (stupid)? Key Takeaways Don’t trade somewhere in nowhere! Future price action depends on past action! Switch your perspective if a change has become evident! Trade less, earn more! ___ Note: As I’m writing a book about reading a chart, I am going to post a couple of short articles on this topic and others related to it, e.g. trend, volume , Dow theory, auction theory and behaviorism. If you are spotting some errors or if you like to add something, feel free to comment or pm. Cheers, Constantine - p.s.: This article is not intended as any kind of trading advice. If anything concerning this topic remains unclear, drop a message or a comment. I've also linked a previous analysis of a trade where you can see a walk-through of the principles as described above
Education
by constantine_trading
SPOTTING EARLY TREND REVERSAL | EURUSD Hey traders, As you know, I am very bearish biased on EURUSD. On a daily, the price respected a major key level and also broke a rising wedge pattern to the downside. On intraday time frames, with classic price action rules, we can easily spot a trend reversal : The price was trading in a bullish trend . The uptrend was confirmed by a sequence of higher highs and higher lows . 1.2267 is a local structure high . After a retracement to a new higher low the price set a lower high (a very important bearish clue). Then the price violates a previous higher low level to the downside setting a new lower low . With a sequence of two lower lows and lower high, we can confirm a bullish trend violation and initiation of a new bearish trend on 8H chart. Now we are waiting for the completion of a retracement leg in a zone between current spot prices and the level of a previous lower high and a consequent bearish continuation. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
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