Get started

Trend Analysis

Smart Money Unicorn Setup Breakdown - Lord MEDZ1. Liquidity Sweep (Stop Hunt) The market started by sweeping liquidity during the London session, taking out the lows formed in the Asian session. This liquidity grab ensured that weak-handed traders were removed before a true move could be initiated. 2. Break of Structure (BOS) Following the liquidity sweep, we observed a strong break of structure to the upside, confirming a shift in market direction. This BOS indicated that Smart Money had absorbed sell-side orders and was now preparing to push price higher. 3. The Breaker Block Confirmation The price retested a Breaker Block, which acted as a high-probability area for entry. This breaker aligned with an area of unmitigated orders, confirming institutional interest at this level. 4. Fair Value Gap (FVG) Entry A clear Fair Value Gap (FVG) was present at the retracement, providing a discounted entry. The market efficiently filled the imbalance, which served as the optimal entry point for long positions. 5. Expansion & Target Zones New York Session momentum fueled the expansion move. The trade was closed at a strong premium, securing a solid Risk/Reward Ratio of 6.29. Final Notes ✅ Unicorn Setup Complete: Liquidity grab, BOS, Breaker retest, and FVG entry. ✅ Institutional Move Confirmed: Clean structure shift with high-volume expansion. ✅ Precision Execution: Entry aligned with FVG, securing max efficiency. 📈 Lesson: Smart Money Concepts (SMC) provide high-probability setups when all confluences align. This trade was a textbook SMC Unicorn Setup, demonstrating the power of liquidity, structure shifts, and imbalance fills. Profit Secured: Risk/Reward: 6.29 Execution Level: A+ Lord MEDZ 🔥
Education
by Skinwah
US Nonfarm Payroll Report: Market InsightsUS Nonfarm Payroll Report: Market Insights Navigating the complex waves of the financial markets requires an astute understanding of various economic indicators. Among them, the nonfarm payroll report stands out as a pivotal monthly metric that can significantly sway financial markets. This article demystifies the intricacies of this influential report, walking through what to know before trading it. Nonfarm Payroll Definition The nonfarm payroll (NFP) is a key economic barometer that tallies the number of employed individuals in the US, excluding the agricultural sector. Besides the farm workers, government, private household, and nonprofit organisation workers are not included. This nonfarm payroll, meaning the workforce in industries like manufacturing, services, construction, and goods, reflects the health of corporate America and, by extension, the US economy. It’s one of the components of the Employment Situation report released on the first Friday of every month by the US Bureau of Labor Statistics. Nonfarm employment change data is released along with unemployment rate and average hourly earnings data. Given its encompassing nature, the NFP and its importance to economic vitality makes it a beacon for investors and traders, who see the data as a projection of economic trends and an influencer of the Federal Reserve's monetary policy. Fluctuations in NFP numbers can cause significant movements in currency, bond, and stock markets. The Nonfarm Payroll Report and Market Volatility The release of NFP figures is a major event on the economic calendar, often triggering heightened market volatility. As nonfarm payroll news hits the wires, traders and investors brace for potential rapid swings in asset prices, particularly in the forex market. The immediate aftermath can see significant fluctuations in currency pairs with the US dollar. The anticipation and reaction to the nonfarm payroll in forex markets exemplify the weight this report carries. Impact of NFP on USD Pairs The nonfarm payroll report has a profound influence on USD pairs. When the NFP data is released, traders immediately compare the figures to market expectations, leading to price adjustments based on how well the actual data aligns with analyst forecasts. The broader trend of NFP data is also important, but it generally takes a backseat compared to actual vs expected figures. For example, if the report indicates stronger-than-expected job growth, the US dollar typically strengthens, especially against currencies like the euro, yen, and pound. A robust employment outlook suggests economic health, potentially raising expectations for tighter monetary policy from the Federal Reserve. On the flip side, if the NFP numbers fall short of expectations, the US dollar may weaken, particularly if the data points to economic slowdown or stagnation. In such cases, currencies like the euro or Japanese yen might rise against the dollar, as traders speculate that the Federal Reserve could delay interest rate hikes or even consider easing measures to boost the economy. The NFP report also reverberates through other major currency markets. For instance, currencies in economies closely tied to US trade and investment—such as the Canadian dollar or Mexican peso—may experience volatility as changes in US employment data often reflect shifts in economic demand for their goods and services. The Role of Employment Rates and Wages in Market Sentiment Within the US nonfarm payroll release, two key indicators—unemployment rates and average hourly earnings (month-on-month)—are pivotal in influencing market sentiment. Unemployment Rates The unemployment rate measures the percentage of the labour force actively seeking employment but currently without a job. A falling unemployment rate generally signals that more people are finding work, a positive indicator for economic growth. As a result, equities may rally, and the US dollar often strengthens, particularly if the data beats expectations. Traders interpret lower unemployment as a sign of economic resilience, which could influence the Federal Reserve to maintain or tighten monetary policy, further boosting the dollar. Conversely, a rising unemployment rate may signal economic weakness, spurring concerns over reduced consumer spending and slowing economic activity. This could lead investors to shift towards so-called safer assets like bonds or gold. In the forex market, a rising unemployment rate tends to weaken the US dollar as it lowers expectations for interest rate hikes and prompts speculation about potential stimulus or rate cuts by the Federal Reserve, further pressuring the dollar and encouraging risk-off sentiment. Average Hourly Earnings Alongside unemployment, average hourly earnings (m/m) is another key metric that traders closely monitor. This indicator tracks changes in wages from one month to the next and offers insight into inflationary trends. When average hourly earnings rise, it can indicate that workers have more disposable income, which can increase consumer spending. Higher wages often fuel concerns about inflation, prompting markets to anticipate interest rate hikes to combat potential overheating in the economy. This expectation typically strengthens the US dollar. However, if average hourly earnings come in below expectations or show signs of stagnation, markets may interpret this as a sign of weaker inflationary pressures. In such cases, traders may anticipate a more dovish stance from the Federal Reserve, potentially delaying or even reversing interest rate hikes. This can weigh on the US dollar and boost equities. Execution Tactics for the Nonfarm Payroll Report Release On the day the NFP data is released, specific execution tactics tailored to the NFP's unique market footprint can add substantial value. Due to the potential for rapid price movements, traders narrow their focus to liquid markets, like EUR/USD, USD/JPY, and GBP/USD, to facilitate quick entries and exits. They’ll typically trade on the 1m, 2m, 5m, or 15m charts and often require platforms built with speed in mind. Nonfarm payroll trading involves comparing the actual data against market expectations. The outcomes can typically be categorised as follows, with each scenario influencing forex markets differently: - As Expected: Currency values may experience minimal immediate impact if the report aligns with analyst forecasts, as the anticipated news is already priced into the market. - Better than Expected: A robust report can boost the US dollar, as higher employment rates suggest economic strength, potentially leading to rising interest rates. - Worse than Expected: Conversely, weak employment figures can devalue the US dollar, reflecting economic concerns and pressuring policymakers towards accommodative measures. Given the volatility, many traders prefer limit orders to manage slippage, potentially ensuring they enter the market at predetermined points. Lastly, spreads can widen substantially, inadvertently triggering a stop loss. Some traders choose to set a wider stop loss than normal for this reason. Traders usually monitor not just the headline number but also revisions of previous reports and associated metrics, such as unemployment rate and wage growth, which can influence market sentiment. High-speed news feeds and an economic calendar containing nonfarm payroll dates are employed to access the numbers in real-time, enabling immediate analysis. Analysing Unemployment and Wage Growth Numbers Together with NFP When trading around the nonfarm payroll release, it's essential to look beyond the headline number and integrate unemployment and wage growth data into your analysis. The NFP number alone can drive initial market reactions, but combining it with unemployment and wage growth figures provides a more nuanced view of the economy’s direction. Traders start by comparing the trends across these three metrics. For example, if the NFP report shows strong job creation but unemployment remains stubbornly high, this could indicate that the economy is absorbing a larger labour force, potentially due to discouraged workers returning to job-seeking. This dynamic might lead to a more muted market response, as the overall labour market picture is mixed. On the other hand, rising average hourly earnings alongside strong US nonfarm payrolls often signals not just employment growth but increasing inflationary pressure. If wages grow faster than expected, especially when paired with a low unemployment rate, it could indicate that labour shortages are driving up pay, raising inflation risks and making Federal Reserve action more likely. In this scenario, traders might anticipate a stronger US dollar, as higher interest rates become more probable. To streamline your analysis during nonfarm payrolls, consider the following approach: - Aligning Expectations: Traders compare actual numbers for NFP, unemployment, and wage growth with analyst forecasts. If NFP and wages grow but the unemployment rate falls, the market is likely to favour USD strength, while mixed results can trigger choppier price action as traders digest the implications. - Gauging Momentum: Looking at the broader trend can provide further insight. If unemployment has been trending down and wages are steadily increasing (i.e. an expanding economy), the overall market sentiment may remain bullish even if NFP slightly underperforms. Conversely, if there’s a rising unemployment rate despite decent NFP growth, it could signal that the economy is slowing down. - Assessing Policy Impact: It’s good to know how the Federal Reserve might interpret the combined data. For instance, moderate NFP growth with stagnant wage numbers may not trigger immediate policy shifts, allowing for more accommodative conditions in the near term. However, strong wage growth and low unemployment alongside robust NFP numbers are more likely to prompt a hawkish response. Trading the NFP: A Strategy Traders often consider analytical nonfarm payroll predictions to calibrate their strategies. However, an approach to take advantage of whichever direction the market takes uses an OCO (One Cancels the Other) order. This order straddles the current price range just before the report is released. Such a strategy prepares the trader for movement in either direction, as the NFP release can generate a significant breakout from the prevailing range. According to theory, the strategy unfolds: - An OCO order is placed with one order above the current price range and another below it. This setup positions the trader to catch the initial surge regardless of its direction. - Stop losses might be set on the opposite side of the pre-report range to potentially manage risk. - Profit targets might be established within a four-hour window post-release, aiming for a favourable risk/reward ratio, such as 1:3. - Alternatively, a trailing stop may be utilised, adjusting above or below newly formed swing points to protect potential returns as a trend develops. Such strategies allow traders to potentially capitalise on the new trend direction ushered in by the NFP data. Risk Management When Trading NFP Trading the NFP report often brings heightened volatility, making risk management crucial for protecting capital during these market swings. Below are some key risk management practices often employed when trading the NFP: - Awareness of Spreads: Spreads can widen substantially during NFP releases. This can trigger even wide stop losses; tight stop losses can suffer extreme slippage, where the stop loss execution price differs substantially from the desired price. - Conservative Position Sizing: Some traders take smaller positions when entering pre- and post-NFP release. The increased volatility when the report is released can lead to slippage and greater-than-anticipated losses as a consequence. Likewise, post-release conditions can also be unpredictable if data is mixed. - Avoiding Overtrading: Aim to be selective with trades to avoid chasing price swings in a highly reactive market. It might be preferable to wait for a clear direction to emerge before entering a trade. Comparative Analysis with Other Economic Indicators The NFP report serves as a primary mover in the forex market, but its full value is best understood in concert with other economic indicators. Investors compare its findings with the Consumer Confidence Index for insights into spending trends, as employment health can influence consumer optimism and spending behaviours. Likewise, juxtaposing NFP data against the Gross Domestic Product (GDP) figures provides a more complete narrative of the economic cycle since higher employment typically signals increased production and economic growth. Additionally, assessing the Consumer Price Index (CPI) and Producer Price Index (PPI) alongside NFP numbers can offer insight into inflationary pressures; strong employment data may point to higher inflation, a significant factor in central bank policy decisions. The Bottom Line In closing, learning how to trade nonfarm payroll data today may sharpen your market acumen and create exciting trading opportunities in the future. For those ready to apply these insights when NFP data is released, opening an FXOpen account provides access to over 700 markets, high-speed trade execution, tight spreads from 0.0 pips, and low commissions from $1.50. Happy trading! FAQ What Is NFP and How Does It Work? The NFP meaning refers to the nonfarm payroll report, data that measures the number of jobs added in the US economy, excluding the agricultural sector. Released on the first Friday of every month by the US Bureau of Labor Statistics, the NFP is a key indicator of economic health, affecting currency, bond, and stock markets. How Does Nonfarm Payroll Affect the Stock Market? NFP data can drive stock market volatility. Strong job growth signals economic strength, often boosting equities. Conversely, weak NFP figures may indicate a slowing economy, leading to stock market declines as investors anticipate weaker corporate earnings. What Happens When NFP Increases? An NFP increase suggests robust job growth, typically strengthening the US dollar and stock markets, as investors expect economic expansion and potentially tighter monetary policy from the Federal Reserve. Why Is Nonfarm Payroll So Important? An NFP report is crucial because it reflects the overall health of the US labour market and economy. Traders and investors use the data to gauge economic trends, determine Federal Reserve actions, and understand where markets are headed. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Seeds in Chaos, Petals in Profit -A trader's guideSeeds in Chaos, Petals in Profit A trader's guide to reading the market through nature's lens. By: Masterolive Intro: This trader's guide is not another cookie-cutter trading system. Instead, it focuses on building a long-term mindset and a way to read the market's chaos through nature's lens. This guide is grounded in real success but is not for the daily trader; it works for long-term swings using hourly price moves. Over seven years of trading, I developed a unique way to view the market, which led to a practical trading mindset. The technique comes from simplifying the chart after experiencing endless combinations of indicators to no avail. It wasn't until I had to explain my concept to someone else that I found a way to use a garden analogy that fits the mindset well to see the market as a natural system: planting in chaos, thriving through storms. Later, I read two books: "The Alchemy of Finance" by George Soros and "The Misbehavior of Markets" by Benoit Mandelbrot and Richard L. Hudson. Surprisingly, these two books validated my approach and inspired me to share it. Previously, I would tell no one because I thought it was silly. The overall goal is to plant a garden, watch it grow, and understand how the weather affects the plants. This guide walks you through determining what flowers you want to plant and how to read the weather after you have made your choice. It uses a garden and planting flowers as an analogy to choosing the right stocks and interpreting an EMA indicator to determine the market's direction. This guide also works well for Bitcoin. This guide will help you understand how to read and interpret the chart. It will also give you accurate future context so you react less to the market moves and see the bigger picture: Plant while they panic. This guide is not financial advice. Part One - Planting. Some traders focus on various companies based on technicals or fundamentals, some short-term and some long-term. Other traders will focus on a few stocks or diversify across many.  For this guide, we pick and diversify a sector with roles that thrive together. The industry can be broad or small, but we will use 10 assets, including nine stocks and Bitcoin, and explain how they correlate and grow into a weather-worthy garden. In this garden, we will focus on Tech and Finance and explain how to plant and organize the garden. First, we must look back at the broadest picture in finance. We will choose a stock exchange and a crypto exchange in this garden. (1 and 2 out of 10 flowers)  Why an exchange? Simply put, traders will always look for stocks and crypto to buy. They will look for the best companies and the best opportunities. Therefore, stock exchanges will benefit from the revenue they generate. If a stock goes parabolic, the exchange still profits from that price move. Choosing the exchange skips the hassle of finding companies in a haystack. The same is true for the crypto exchange. Our garden has two flowers: one stock exchange and one crypto exchange, representing those two sectors. Next, what else can correlate with our garden from a zoomed-out view? Let's choose a Bank and a payment processor. (3 and 4 out of 10 flowers)  Traders will need the bank to on and offramp their cash profits to and from the stock and crypto exchange. Meanwhile, they will need to process those electronic payments.  The bank and payment processors benefit from trading surges; if everyone piles in for a parabolic price move of a particular stock, the bank and payment processors benefit from the action, and the exchanges offering the stock get revenue from the surge. Once again, this choice skips the need to hunt for specific stocks. It takes advantage of all stocks since traders need cash, banks, electronic payments, and exchanges to buy those company stocks or bitcoin. Our garden now has Four flowers, a bank and payment processor, and two exchanges for this sector. The correlation? Exchanges, banks, and processors all thrive when traders move money. The fifth is a pivot flower before we discuss the tech company sector. This pivot flower is a gambling company (5 out of 10).  How does this correlate? Some traders and other users gamble with their cash and profits; even in a recession or a depression, people will still gamble. Plus, users might take their gambling winnings and invest them in a stock or buy bitcoin. They need a bank, an exchange, and a payment method. In this case, the flowers are self-reinforcing: gambling winnings or losses, stock booms or busts; it doesn't matter in the big picture because, once again, exchanges, banks, and processors all thrive when people move money. Our garden now has five flowers with a broad but strong correlation. Now, on to the tech sector with the last five flowers.  You will hone in on specific tech roles at this point, but remember that your choices will be self-reinforcing.  If your choice booms, the exchange benefits, and you benefit again from the exchange stock. You will electronically transfer your profits to your bank, which you benefit from by owning the bank stock and payment processor. But if you're smart, you will skip the gambling and let the crowd roll the dice while you plant the profits. We will focus on two more flowers (6 and 7 out of 10) for tech, so we need to find companies exposed to the popular and relevant tech we want. For tech company 1, you could expose yourself to AI, EVs, and ROBOTS. For tech company 2, Semiconductors (or graphics cards). In this section of our garden, graphic cards and AI rely on one another, while EVs and robots use AI to operate. Eventually, people will buy or sell the robot and EV, and some may use the profits to buy stock (or Bitcoin), requiring a bank and payment processor. Meanwhile, people use LLMs, log into their bank, or exchange daily on a computer that requires a graphics card.  Our garden now has seven flowers out of 10, 3 more to go! We want to diversify (but stay correlated with our garden), so next, we will look at a real estate company or ETF—but not just any company or ETF, one that develops in tech hub areas. How does this correlate?  Robots, AI, EVs, and graphics cards all need workers to operate the companies; young talent will want to move to places where they can work in AI or Robotics or factory EV workers, so the real estate in those areas will be in high demand, so now we own the real estate for our Ai, EV, Robots, and graphic card workers. As tech grows, real estate booms, driving more money through exchanges, banks, and processors. We now have eight flowers in our weather-worthy garden. For the 9th flower, we turn to a wildflower: none other than Bitcoin. Bitcoin is not just a crypto coin but a capital asset, a store of value for your currency when it debases. People, especially tech workers, will buy, trade, and sell Bitcoin.  As people learn and turn to the asset, global capital will flow through Bitcoin as people around the world save their cash value,  whether it be from gambling winnings, selling a car, selling real estate, selling a stock, or simply putting part of their income from their tech job into it regularly. All of this requires Exchanges, Banks, and payment processors to move.  Bitcoin correlates with that, as exchanges profit off bitcoin, which you own stock in the exchange company. You still need a bank to land on and a payment processor to move the money electronically. We now have nine flowers in our garden, and it's almost complete. How can we diversify even more? We can use industrial metal for our last flower, but how does an industrial metal correlate with our tech and finance garden? Copper is the metal that conducts electricity, and electricity is needed to move money, send Bitcoin, power a growing network of EV superchargers, and power the factories that produce EVs, graphics cards, robots, and more. Copper's the most vigorous root, tying every flower, from tech to finance, into a weather-worthy bed. Meanwhile, the crowds go for gold and sleep on copper. That completes our garden with 10 flowers. It's a diversified flowerbed, but the flowers correlate in the big picture: Tech drives money movement, which benefits exchanges, banks, and processors; copper powers tech, which drives Bitcoin adoption. Your goal is to find and build your garden. Think up different bigger pictures with other sectors and roles. Correlating these assets keeps the garden strong through chaos and self-reinforces one another. To review, we have the following: Stock exchange Crypto Exchange Bank Payment processor Gambling Ai / EV / Robots Semiconductors (Graphics cards) Real estate Bitcoin Copper Now that we have planted our garden, let's examine the weather and its meaning. We will learn to read the weather and see when storms are coming or clearing.  In part 2, you will set a simple EMA indicator, learn how to interpret the weather, and tend to the flowers in our garden.
COINBASE:BTCUSDEducation
by Masterolive
1
Trading is the realm of response Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- It's been a while since I made an indicator and explained it, so I'd like to take the time to introduce and explain something I heard a long time ago. (Original text) I made purchases at m-signal 1W in yesterday's fall as I see it rose above ha-low and closed above m-signals. It looks like m-signals can't prevent traps. Now I'm losing money again. I think it's better to make purchases when RSI is below 30. I don't want to feed market makers, somehow it happens over and over. - Looking at the above, it seems that the purchase (LONG) was made when the price rose above the M-Signal indicator on the 1W, 1D chart and then started to fall. If we check this on the 30m chart, it is expected that the purchase (LONG) was made near the section indicated by the circle section. I said that it would have been much better to buy (LONG) when RSI was below 30, but when RSI was below 30, it refers to the section from February 25 to March 1, so I think it's regret due to the loss. - If you look at what I explained as an idea, I said that you need to get support in the section marked with a circle to continue the upward trend. And, I said that support is important near the HA-Low indicator when it falls. Therefore, if it falls in the section marked with a circle, you should enter a sell (SHORT) position. However, if you do not see a downward trend, you should trade based on whether there is support in the HA-Low indicator. - To check for support, you need to check the movement for at least 1-3 days. Therefore, checking for support is a difficult and tedious task. Since most futures transactions are made on time frame charts below the 1D chart, you cannot check for support for 1-3 days. Therefore, you need to check the movement at the support and resistance points you want to trade and respond accordingly. - The coin market is a market where trend trading is good. Therefore, it is important to know what the current trend is. It is better to think of the basic trend based on the trend of the 1D chart. The current trend of the 1D chart is a downtrend. Therefore, the SHORT position can be said to be the main position. As mentioned earlier, in order to turn into an uptrend, support must be received within the range indicated by the circle. If not, it is likely to continue the downtrend again. Since the HA-Low indicator has been newly formed, the 89253.9 point is the point where a new trading strategy can be created. If it is not supported by the HA-Low indicator, it is likely to lead to a stepwise downtrend, so you should also think about a countermeasure for this. - What we want to know through chart analysis is the trading point, that is, the support and resistance points. You should decide whether to start trading depending on whether there is support at the support and resistance points. Even if you start trading properly at the support and resistance points you want, you must also think about how to respond to a loss cut. If you cannot think of a response plan for a loss cut, it is better not to trade at all. - Indicators are only reference materials for your decisions, not absolute. - The M-Signal indicator on the 1D, 1W, and 1M charts is an indicator for viewing trends, - The HA-Low and HA-High indicators correspond to points for creating trading strategies. The creation of the HA-Low indicator means that it has risen from the low range, and if it is supported by the HA-Low indicator, it is the time to buy. If it does not, and it falls, there is a possibility of a stepwise decline, so you should think about a response plan for this. The creation of the HA-High indicator means that it has fallen from the high range, and if it is supported by the HA-High indicator, there is a possibility of a full-scale upward trend. If not, it may fall until it meets the HA-Low indicator, so you should think about a countermeasure for this. - If the price is maintained near the StochRSI 50 indicator on the 1D chart, it is expected to lead to an increase to rise above the HA-Low indicator on the 1D chart. At this time, if it rises above the M-Signal indicator on the 1D and 1W charts, it is likely to lead to an attempt to rise near 94827.9. If not, it is likely to end as a rebound. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
Exhaustion Today, we will break down candle exhaustion and how to use it for high-probability trade entries. We will analyze a bearish engulfing pattern, the role of trendline breaks, and how we combined this with the ORB strategy at the US open to secure a strong entry for the 2905 target. What is Candle Exhaustion? Candle exhaustion occurs when price action slows down after a strong move, showing signs that buyers or sellers are losing strength. This is often seen through smaller-bodied candles, wicks rejecting key levels, or a sharp engulfing candle reversing prior movement. Candle exhaustion smaller body's larger wicks. A bearish engulfing candle formed, engulfing three previous candles, signaling that sellers have aggressively stepped in. This confirmed a shift in momentum, suggesting that buyers were losing control. Key Takeaway: A multi-candle engulfing increases the strength of the reversal signal. The 15-minute trendline was broken, adding further confluence for a shift in market structure Early entry model Price came and tapped the supply zone, rejecting and closing under trend. This was the 2nd confirmation of sells. This 2nd engulfing was the 3rd confirmation sellers have taken control. The US session opened at 2:30 PM, a key time for volatility. We then applied the Opening Range Breakout (ORB) strategy to refine our 2nd entry. With price under the 50 moving average The breakout confirmed momentum towards our 2905 target, aligning with our pre-trade analysis. Conclusion By recognizing candle exhaustion, engulfing patterns, and trendline breaks, we stacked confluences for a high-probability sell trade. The ORB strategy allowed us to refine our 2nd execution at the perfect time. Lesson: Trading is about patience, waiting for confirmations, and executing with confidence.
OANDA:XAUUSDEducation
by samstoobad
US30 Trading Strategy That’s Been Proven to WorkThis strategy is backtested over trades and works best during the New York session (9:30 AM - 12 PM EST). Here’s how it works: Step 1: Identify Key Levels These are the support & resistance areas where institutions place big orders. Look for previous highs, lows, Step 2: Wait for a Liquidity Grab Banks love to trick retail traders by creating fake breakouts. We wait for price to break a key level, trap traders, then reverse. Step 3: Enter on Confirmation Once we see a liquidity grab, we wait for a strong rejection candle (pin bar, engulfing, etc.). Entry is placed at the close of the confirmation candle. Step 4: Set Stop Loss & Take Profit Stop loss: Just beyond the liquidity grab. Take profit: At least 2x the stop loss distance for a 1:2 risk-reward ratio.
OANDA:US30USDEducation
by FrankFx14
What Is ICT PO3, and How Do Traders Use It?What Is ICT PO3, and How Do Traders Use It? The ICT Power of 3 is a strategic trading method that helps traders identify behaviour of ‘smart money.’ It dissects market movements into three distinct phases: accumulation, manipulation, and distribution. This article explores the intricacies of the Power of 3 strategy and its practical application in trading. Understanding the ICT PO3 Trading Concept The ICT Power of 3 (PO3), or the AMD setup, is a strategic trading framework developed by Michael J. Huddleston, better known as the Inner Circle Trader. This approach revolves around three critical phases: accumulation, manipulation, and distribution, which collectively help traders understand and anticipate market movements. Accumulation Phase During this phase, smart money or institutional investors accumulate positions within a price range, often leading to a period of low volatility and sideways movement. This stage sets the groundwork for future price movements by creating a base of support or resistance. Manipulation Phase The manipulation phase involves deliberate price moves by smart money to trigger stop losses and deceive retail traders. In a bullish scenario, prices may dip below the established range, while in a bearish market, prices might spike above the range. This phase is seen as being characterised by sharp, misleading price movements aimed at manipulating liquidity. Distribution Phase Following manipulation, the distribution phase sees smart money offloading their positions, leading to significant price movements in the intended direction. For bullish trends, this involves a strong upward move, whereas, in bearish conditions, it results in a sharp decline. This phase marks the realisation of the strategic positions built during the accumulation phase. Understanding this ICT concept allows traders to align their strategies with the actions of institutional investors, potentially enhancing their ability to make informed trading decisions. The ICT PO3 strategy is versatile, applicable across different timeframes and financial instruments, making it a valuable tool for traders in various markets. Below, we’ll discuss each of these three phases in more detail. Accumulation Phase The accumulation phase is a crucial initial stage within the Power of 3 trading strategy. It represents a period where institutional investors, often referred to as smart money, quietly build their positions in a particular asset. This phase is characterised by relatively low volatility and sideways price movement, typically near key support or resistance levels. During accumulation, the market tends to range within a narrow band as large players gradually buy into the asset without significantly driving up its price. This steady acquisition reflects their confidence in the asset's future appreciation. Recognising the accumulation phase involves monitoring for signs such as low-volatile, ranging price action and potential increases in trading volume without major price changes. Indicators of the accumulation phase include: - Low Volatility: The asset trades within a tight range, showing little directional bias. - Support Levels: Accumulation often occurs near historical support or resistance levels where the price is deemed under or overvalued by institutional investors. - Increased Volume: There may be a gradual rise in volume as smart money accumulates positions, signalling their interest without causing sharp price movements. Specifically, this range is also intended to trap retail traders on both sides of the market. In a bullish accumulation, for example, where the price will eventually break upwards, the range will trap bullish traders buying from the support level inside of the range. Given that these traders will most likely set their stop losses below the range, this paves the way for the next stage: manipulation of liquidity. However, some traders will also take a short position in this range, anticipating that price will continue to break lower. These traders add fuel to the distribution leg discussed later. The Manipulation Phase The manipulation phase is a pivotal part of the ICT PO3 trading strategy. This stage is marked by deliberate actions from institutional investors to create market conditions that mislead and trap retail traders. It follows the accumulation phase, where positions are built, and precedes the distribution phase, where these positions are realised. Characteristics of the Manipulation Phase: - Deceptive Price Movements: During this phase, the price moves sharply in a direction opposite to the expected trend. In a bullish setup, prices might dip below the established range, while in a bearish setup, they might spike above the range. These moves are designed to trigger stop-loss orders, encourage breakout traders to enter positions and ultimately generate liquidity for the smart money’s large orders. - Triggering Retail Traps: The primary goal is to shake out early traders by hitting their stop-loss levels. For instance, a sudden dip in a bullish market might make retail traders believe that the market is turning bearish, prompting them to close their positions. - Creating Liquidity: By inducing these price movements, smart money creates liquidity that allows them to add to their positions at more favourable prices. This phase is crucial for building the necessary conditions for the subsequent distribution phase. Recognising Manipulation: - False Breakouts: Characterised by sharp, sudden moves that quickly reverse. These are often designed to lure traders into thinking a breakout has occurred. - Price Action Signals: Price action that doesn’t align with the overall market structure or sentiment can be a sign of manipulation. This can be especially true after a long uptrend or downtrend, signalling potential exhaustion. For example, in a bullish market, after a period of accumulation where prices have stabilised within a range, a sudden drop might occur. This drop triggers stop-loss orders and panics retail traders into selling. It also encourages some to trade what appears to be a bearish breakout. Smart money then buys these positions at lower prices, preparing for the distribution phase where they push the prices up sharply. The Distribution Phase The distribution phase is the final stage in the Power of 3 trading strategy, where smart money begins to offload their positions built during the accumulation phase. This phase follows the manipulation phase, and it is characterised by strong price movements in the direction opposite to the manipulation. Key Characteristics of the Distribution Phase: - Significant Price Movement: This phase involves substantial price changes as institutional investors begin to realise their positions. In a bullish scenario, this means a sharp upward movement; in a bearish scenario, a sharp decline. - High Volume: The distribution phase is often accompanied by high trading volume, indicating that a large number of positions are being sold or bought back. - Market Confirmation: During this phase, the true market trend that was obscured during the manipulation phase becomes evident. The price moves in the direction of the original accumulation, confirming the intent of the smart money. - Retail Trader Participation: Many traders have been shaken out of their positions, including those who were wrong about the initial breakout’s direction and those who were correct but had their stop loss triggered by the manipulation phase. They now pile back into the trade, fueling this strong upward or downward leg. Recognising the Distribution Phase: - Price Action: Traders look for strong, sustained movements in price, often with large candles. For a bullish trend, this means a consistent upward movement; for a bearish trend, a consistent downward movement. - Volume Analysis: Increased trading volume during these price movements indicates distribution. - Breaking Market Structure: The high or low of the accumulation/manipulation phase will be traded through. - Technical Indicators: Use of tools like moving averages and support/resistance levels can help confirm the transition into the distribution phase. For example, in a bullish market, smart money begins to buy aggressively after the price has been manipulated downwards to create liquidity. This buying pressure pushes the price up sharply, signalling the start of the distribution phase. Traders can look for increased volume and price action breaking above previous resistance levels as confirmation. Practical Application of ICT PO3 The ICT PO3 strategy can be effectively applied by traders through a structured approach involving higher timeframe analysis and keen observation of price movements. Here's how traders typically utilise this strategy: Setting the Daily Bias Traders often start by establishing their market bias for the day. This involves analysing higher timeframes to determine the overall market trend. Understanding whether the market is bullish or bearish sets the foundation for the day’s trading strategy. Marking the Day's Open After setting the bias, traders mark the opening price of the day. This price point is critical as it serves as a reference for potential manipulation and trading opportunities. Identifying Manipulation Traders look for price movements beyond the day's open and the established range boundaries. For a long bias, they observe for manipulation below the open, while for a short bias, they look above the open. This stage is crucial as it indicates where smart money is likely manipulating the market to create liquidity. Entry Signals While a trader can simply enter once price trades beyond the day’s open, many choose to confirm the trade. Using a 5-15 minute chart, they might look for signals such as: - Price moving into a significant area of liquidity beyond a key swing high or low. - A break of established market structure, such as price beginning to move above previous swing highs in a bullish setup (known as a change of character, or ChoCh). - Chart patterns or candlestick patterns that indicate a reversal or continuation, such as a hammer/shooting star, wedge, quasimodo, etc. - A moving average crossover that supports the expected price direction. - Momentum indicators showing waning momentum in the manipulated direction. Traders typically place stop losses beyond the manipulation high or low to potentially manage risk here. Distribution Phase Opportunities If an entry is missed during the manipulation phase, traders can look for opportunities during the distribution phase. Although this phase may offer a less favourable risk-to-reward ratio, it still provides potential trading opportunities. Traders might wait for a market structure break or ChoCh, followed by a pullback, setting stop losses either beyond a recent swing high/low or beyond the manipulation high or low. ICT Power of 3 Example On the GBPUSD 15m chart above, the day open acts as a support level, marking the accumulation phase. A candle wicks below the range, followed by a price break above the range, which then sharply reverses, indicating the manipulation phase. After taking liquidity, price rebounds sharply. On the 5m chart, a break above the downtrend structure creates a change of character (ChoCh) before price pulls back and breaks above the manipulation high, signalling a bullish market shift. Subsequent pullbacks might be excellent entry points for traders who missed the manipulation phase entries before price marks up further. The Bottom Line Understanding and applying the ICT Power of 3 strategy can enhance a trader's ability to navigate market movements. By recognising the phases of accumulation, manipulation, and distribution, traders can better align their actions with institutional behaviours. To implement this strategy and optimise your trading experience, consider opening an FXOpen account for advanced trading tools and support of a broker you can trust. FAQ What Is PO3 in Trading? The ICT Power of 3 (PO3) is a trading strategy developed by Michael J. Huddleston, known as the Inner Circle Trader. It involves three key phases: accumulation, manipulation, and distribution. These phases help traders understand market movements by aligning their strategies with institutional investors. What Is the Power of 3 ICT Entry? The Power of 3 ICT entry involves identifying optimal points to enter trades during the phases of accumulation, manipulation, and distribution. Traders typically look for signs of price manipulation, such as false breakouts, and then enter trades in the direction of the anticipated distribution phase. How Does the Power of 3 Work? The ICT Power of 3 can be an indicator of potential smart money involvement. It works by breaking down market movements into three phases: 1. Accumulation: Smart money builds positions. 2. Manipulation: Price moves are designed to deceive retail traders. 3. Distribution: Smart money offloads positions, leading to significant price movements in the intended direction. How to Trade the Power of Three? To begin Power of Three trading, traders first set their daily bias using higher timeframe analysis. They then mark the daily open and observe for price manipulation. Entry signals include breaks of market structure, liquidity grabs, and candlestick patterns. Traders set stop losses beyond manipulation highs or lows and can also look for entries during pullbacks in the distribution phase.​ Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Set Up & Data Collection | Day 1 of 21 | Back Test With Me21-Day Backtesting Plan A Step-by-Step Challenge to Master One Pair and Develop an Unshakable Trading Edge Backtesting is the foundation of trading mastery. This 21-day plan is designed to help you deeply understand GBPUSD, refine your strategy, and build the confidence needed to trade with precision. Each day introduces a specific focus, challenge, and takeaway, progressively strengthening your ability to read market movements. Week 1: Laying the Foundation – Market Structure & Patterns 📅 Day 1: Set Up & Data Collection Task: Gather at least 6 months of historical GBPUSD data on your charting platform. Challenge: Define your testing parameters (e.g., timeframe, session focus, lot size). Takeaway: Clarity in what you’re testing prevents randomness in your results. Are you up for our 21 Day Backtesting Challenge? Drop Your Thoughts in the Comment Section, boost the post, share with your friends and follow me on Trading View if you had an aha moment. -TL
Education
by TLTurnerTV
I Am Sorry! Here Is a LessonI usually put out a single trade every day prior to markets opening. I do it because it is a fun way for me to share my trading knowledge with others for free. It is also a great way of journaling my thoughts. But I should have been better for all of my followers. The truth is markets have been kicking my ass since late December. In a normal bull market, my trading strategy is to shoot first and react fast. I enter trades on price action after the Keltner channel is hit and pullback occurs. This can be on first entries, second entries, inside bars or even a complex pullback. Once in a trade I reduce risk quickly or exit a bad trade swiftly. Hence, "shoot first and react fast". Markets were changing and I saw it, a repeatable pattern. I wanted to write an article before the market changed up but, never got the chance. More and more stocks were entering complex pullbacks. I believe I mentioned it in passing in some videos but never explicitly logged it anywhere. When we are seeing a lot of complex pullbacks in the broader markets it means that something is changing, pullbacks are going deeper. What was once strong is now weakening and that was happening before our eyes. I will link the complex pullback video and articles to this article for your viewing pleasure. Today, I just went through all of my losing trades for last month and all of them had one thing in common. Not waiting for the right entry. The cycle low entry. In a pure bull market getting in on price action alone is completely sufficient but, with so much uncertainty everywhere, now more than ever we need to be selective. In steps the stochastics indicator... The apology is a simple reminder to me that markets are tough, and real money is on the line. While I am providing the best information I can with the information I have at the time, it may not always be correct. That is why I don't offer signals and instead opt for trading ideas. Funny thing is, I think a lot more of my one good trade ideas beat out my other personal trades. Regardless, I hope you take this article and learn something from it. I know I have. The last thing I will leave you all with is this MA chart with annotation that is currently playing out. These will be the types of trades that I look for until further notice. Good Luck and Good Trading. ~ JoeRodTrades
NYSE:MAEducation
by JoeRodTrades
How to Predict Market Highs - Lows with Gann Astro Trading.How to Predict Market Highs & Lows with Gann Time & Price Theory Gann Planetary Time Cycles | The Only Proven Way to Predict Market Reversals With 95% Accuracy. In this in-depth Video, we explore Gann Astro Trading and uncover how Gann’s time and price square techniques can help predict major market reversals. By understanding Gann’s planetary cycles, you’ll learn how planetary movements influence price action and how traders can use this knowledge for precise entry and exit points. 🔹 What You Will Learn in This Video: ✅ How Gann used planetary cycles to forecast market trends ✅ The connection between time and price and how they square for reversals ✅ Identifying market turning points using planetary trend lines ✅ The significance of planetary longitudes and key angles (e.g., 135°, 180°) in trading ✅ Using major planetary pairs (e.g., Mars-Uranus, Saturn-Sun) to find support & resistance ✅ How traders subconsciously react to planetary movements and price levels ✅ The importance of using long-term charts for accurate forecasting ✅ Finding a universal price conversion for a stock, forex pair, or commodity 📈 Why Gann’s Astro Techniques Work: Gann believed that financial markets move in harmony with planetary cycles. By applying his time cycles and planetary movements, traders can decode price action and anticipate future highs and lows. Gann Astro Trading | The Secret to Predicting Market Reversals with Planetary Cycles Gann Astro trading is a highly advanced market forecasting method that combines W.D. Gann’s time and price principles with planetary cycles, astrology, and mathematical timing techniques to predict market movements with unmatched precision. Gann believed that markets are not random but move in cyclical patterns influenced by celestial forces, planetary transits, and natural laws. By decoding these cycles, traders can anticipate highs, lows, reversals, and trend shifts before they happen, gaining a significant edge in forex, stocks, and crypto trading. This strategy goes beyond conventional technical analysis by integrating astro-financial patterns, Gann angles, the Square of Nine, and harmonic time cycles to identify the exact moments when time and price align. When this happens, explosive market moves occur, creating high-probability trade setups with minimal risk. Whether you are a day trader or a long-term investor, mastering Gann Astro trading can help you forecast major market turning points, trade with confidence, and maximize profits while minimizing uncertainty. Traders who apply Gann’s planetary time cycles understand how astro-trading indicators, retrogrades, conjunctions, and planetary aspects influence market behavior. Learning this powerful yet hidden method allows you to see what most traders miss, making it one of the most profitable and accurate trading techniques available today.
Education
by GannAstroTrader
The Billionaire Trader & His Unlikely MentorWhen we think of legendary traders, Paul Tudor Jones stands out as one of the most successful billionaires in the financial world. But what many traders don’t realize is that behind his extraordinary success, there’s a powerful influence—Tony Robbins. Yes, the world-renowned life coach played a crucial role in shaping Jones’ mindset, ultimately helping him navigate markets and life with unparalleled confidence. The Turning Point: Paul Tudor Jones Meets Tony Robbins Paul Tudor Jones is best known for predicting the 1987 stock market crash and making a 200% return during the crisis. However, what truly set him apart from other traders wasn’t just his ability to read the markets—it was his mental game. Jones has openly credited Tony Robbins for helping him gain a psychological edge. In the late 1980s, when Jones was already a successful trader but searching for deeper fulfillment and consistency, he sought Robbins’ mentorship. Robbins, known for his work in peak performance and psychology, introduced Jones to strategies that reshaped his thinking and emotional resilience. The Mindset Shift That Changed Everything So, what did Robbins teach Jones that made such a massive impact? 1. The Power of State Control Robbins emphasizes that emotions drive decision-making. He taught Jones to manage his emotional state, ensuring that fear, greed, and hesitation didn’t cloud his judgment. This allowed Jones to make high-stakes trading decisions with confidence. 2. Priming and Visualization One of Robbins’ core techniques is priming—training the mind to focus on success. Jones incorporated this by visualizing successful trades and reinforcing positive beliefs about his abilities. This mental conditioning helped him stay composed even in turbulent markets. 3. Wealth Psychology Many traders fail because of limiting beliefs about money. Robbins helped Jones develop an abundance mindset, reinforcing that wealth creation is a game of psychology as much as it is about strategy. 4. The Importance of Giving Back Robbins’ influence extended beyond trading. Jones became one of the biggest philanthropists in the financial world, believing that giving back creates a deeper sense of fulfillment and success. His Robin Hood Foundation has donated billions to fight poverty, something Robbins strongly advocates for in his teachings. The Result: A Billionaire Trader with Unshakable Confidence While Paul Tudor Jones had the technical skills of a master trader, Robbins’ mentorship gave him the mental and emotional fortitude to sustain long-term success. His ability to stay focused, disciplined, and resilient in volatile markets is a testament to the power of psychology in trading. Key Takeaways for Traders - Mindset is everything: The best trading strategies won’t work if your emotions control you. - Daily mental conditioning matters: Visualization, priming, and self-belief can dramatically improve trading results. - Success is holistic: Wealth is not just about money—it’s about impact, discipline, and personal growth. Paul Tudor Jones’ story proves that trading isn’t just about charts and numbers—it’s about mastering your own psychology. And thanks to Tony Robbins, he became not just a billionaire, but an icon of both financial success and mental resilience.
NSE:NIFTYEducation
by keshevdugar
1
CHOCH vs BOS !!WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
What is Confluence ?✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification !!Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD
Supply and Demand Zones Trading in Forex: A Detailed OverviewSupply and demand zones are a core concept in price action trading, helping you spot areas of strong buying or selling interest. Mastering these zones can help you predict reversals, breakouts, and continuations with high accuracy. Let’s dive in! 🚀 🧠 What are Supply and Demand Zones? 📉 Supply Zone (Bearish): An area of high selling pressure where price tends to drop. It forms when sellers overwhelm buyers. 📈 Demand Zone (Bullish): An area of high buying pressure where price tends to rise. It forms when buyers overpower sellers. These zones act like magnets for price — when price returns to these levels, you often see strong reactions. 🗂️ Characteristics of Strong Zones ✅ Sharp Price Movement: Strong supply and demand zones create fast and aggressive price moves away from the area. 💥 ✅ Multiple Rejections: The more times a zone holds and rejects price, the stronger it is. 🛑 ✅ Freshness: The first retest of a fresh zone often yields the strongest reaction. 🆕 ✅ Volume Spike: Higher volumes show genuine interest from large players. 📊 🎯 How to Identify Supply and Demand Zones 1️⃣ Find Strong Moves: Look for big bullish or bearish candles after a consolidation or small pullback. 2️⃣ Mark the Base: Draw a rectangle from the start of the strong move to the end of the consolidation. 3️⃣ Adjust for Wick/Body: Include the entire wick for aggressive zones or just the body for conservative zones. 📈 Bullish Supply and Demand Zone Strategies 1️⃣ Demand Zone Bounce (Buy Setup) 🛑 Identify: A clear demand zone with a strong bullish move away. 📉 Wait: For price to return to the zone. 🕯️ Confirm: With a bullish candlestick pattern (like Hammer, Engulfing). 🎯 Enter: A buy order at the zone’s edge. 🛡️ Stop Loss: Below the zone’s low. 🏁 Target: Nearest supply zone or strong resistance. 💡 Example: Price rallies from 1.2000, pulls back to the same zone, then forms a bullish engulfing — you buy. 2️⃣ Demand Zone Breakout (Continuation Setup) 🛑 Identify: A demand zone forming a higher low in an uptrend. 💥 Breakout: Wait for price to break the supply zone above. 📉 Retest: When price retests the broken supply (now demand), enter long. 💡 Example: Price breaks 1.2500 resistance, retests it, and bounces higher — you enter. 📉 Bearish Supply and Demand Zone Strategies 3️⃣ Supply Zone Rejection (Sell Setup) 🛑 Identify: A clear supply zone with a strong bearish move away. 📈 Wait: For price to return to the zone. 🕯️ Confirm: With a bearish candlestick pattern (like Shooting Star, Engulfing). 🔻 Enter: A sell order at the zone’s edge. 🛡️ Stop Loss: Above the zone’s high. 🏁 Target: Nearest demand zone or strong support. 💡 Example: Price spikes up to 1.3000, then drops sharply — on a retest, you short. 4️⃣ Supply Zone Breakout (Continuation Setup) 🛑 Identify: A supply zone forming a lower high in a downtrend. 💥 Breakout: Wait for price to break the demand zone below. 📈 Retest: When price retests the broken demand (now supply), enter short. 💡 Example: Price breaks 1.1800 support, retests it, and drops further — you enter short. 🛠️ Tools to Enhance Supply and Demand Trading 🧰 Support & Resistance Levels – Combine zones with horizontal levels for added confluence. 📐 Fibonacci Retracements – Zones aligning with Fibo levels are extra strong. 📉 Trendlines – A zone break + trendline retest makes a powerful entry signal. 📊 Volume Analysis – High volume confirms genuine buying or selling pressure. ⏳ Timeframes & Zone Strength ⏱️ Higher Timeframes (4H, Daily, Weekly): Stronger & more reliable zones. Great for swing trading. ⏱️ Lower Timeframes (5M, 15M, 1H): More frequent but weaker zones. Ideal for day trading or scalping. ⚠️ Common Mistakes to Avoid ❌ Forcing trades: Not every zone gives a valid signal — be patient. ❌ Ignoring context: Always follow the trend unless there’s clear reversal evidence. ❌ Skipping confirmation: Wait for candlestick patterns and rejections. ❌ Poor risk management: Always set a stop loss and manage position size.
Education
by ProjectSyndicate
26
HOW TO use the Acceleration Bands HTF indicatorYou can access this indicator HERE: For details about the indicator, please see the indicator's description. This idea is about the use of it. You always want to go with the trend and trade into the direction that "accelerates" according to the indicator. When the price accelerates, it is more likely to continue than to reverse. Also, the volatility will be much greater (momentum) to the acceleration direction. All the explosive moves happen outside of the acceleration bands. You can go over many charts and see that the indicator methodology is aligned with good trading principles of great traders such as Darvas Box Trading, and Jesse Livermore entries, and also SMC.
NASDAQ:SMCIEducation
by ZoharCho
2
How to Find Best Supply and Demand Zones/Areas in Forex & Gold In this article, I will show you the strongest supply and demand zones. These zones are called confluence zones. I will teach you to identify these areas properly and explain how to apply it in Forex and Gold trading. Let's start with a short but important theory. In technical analysis, there are 2 types of supports and resistances. Horizontal structures are supports and resistance that are based on horizontal key levels. Vertical structures are supports and resistance that are based on trend lines. A confluence supply or demand zone, will be the area of the intersection between a horizontal and vertical structures. Look at GBPJPY pair. I underlined a significant horizontal support and a rising trend line - a vertical support. We see a clear crossing of both structures. The trend line and a horizontal support will compose a narrow, contracting area. It will be a confluence demand zone. Within, with a high probability, a high volume of buying orders will concentrate, and a strong bullish movement will initiate after its test. Above is one more example of a powerful demand zone. It was spotted on a Gold chart. Now let's discuss the supply zone. There are 2 strong structures on GBPNZD: a vertical resistance - a falling trend line and a horizontal resistance. These 2 resistances will constitute a confluence supply zone. That is a powerful resistance cluster that will concentrate the selling orders. Chances will be high to see a strong bearish movement from that. There is a strong supply zone on CHFJPY that is based on the intersection of a wide horizontal resistance and a falling trend line. Supply and demand zones that we discussed are very significant. Very often, strong bullish and bearish waves will initiate from these clusters. Your ability to recognize these zones will help you to make accurate predictions and identify a safe point to open a trading position from ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
9
How to Use the VRVP Tool – A Complete Guide for All TradersThe Visible Range Volume Profile (VRVP) is a powerful tool on TradingView that helps traders identify key price levels where significant trading activity has occurred. It offers a unique view of market structure by highlighting the volume traded at specific price points within the visible range of the chart. Understanding how to effectively use the VRVP can significantly improve your ability to identify important support and resistance levels, spot potential breakouts, and make better trading decisions. This comprehensive guide will take you through everything you need to know about the VRVP tool, including its features, setup, and how to use it in your trading strategy. What is the VRVP Tool? The VRVP (Visible Range Volume Profile) is a technical analysis indicator that shows the distribution of trading volume at different price levels within the visible range of your chart. Unlike traditional volume indicators, which show volume over time, the VRVP focuses on volume by price, allowing you to see where buyers and sellers have been most active. It is displayed as a horizontal histogram along the side of the price chart, with high-volume areas indicating key support or resistance levels and low-volume areas often signaling potential breakout points. Why is the VRVP Tool Important? The VRVP tool provides several benefits to traders, regardless of their experience level: Identify Key Support and Resistance Levels: High volume nodes (HVNs) often act as strong support or resistance zones where price tends to stall or reverse. Spot High and Low Liquidity Areas: Low volume nodes (LVNs) can highlight areas where price may move more quickly due to the lack of market participants. Predict Breakouts and Reversals: By identifying volume concentration, you can anticipate areas where price may break out or reverse. Confirm Trends: By analyzing the Point of Control (POC), you can determine the market’s prevailing trend. Refine Entry and Exit Points: By combining the VRVP with other tools, you can pinpoint optimal entry and exit points for trades. How to Add the VRVP Tool on TradingView To start using the VRVP tool on TradingView, follow these steps: Open your TradingView chart. Click on the “Indicators” button at the top of the screen. Search for "VRVP" or "Visible Range Volume Profile" in the search bar. Click to apply it to your chart. Adjust the settings by clicking on the gear icon next to the indicator name. Recommended Settings: Row Size: Set between 150-250 for more detail (more rows provide more granularity). Volume Area (%): Set to 70% to highlight where most trading activity has occurred. Color Up/Down: Choose contrasting colors for buying and selling, making it easy to distinguish between bullish and bearish zones. Point of Control (POC): Enable this to highlight the price level with the highest volume. How to Read the VRVP Tool The VRVP tool consists of three key components: High Volume Nodes (HVN): These are price levels where a lot of trading activity has occurred. They often act as strong support or resistance, and the price may bounce off these levels multiple times. Low Volume Nodes (LVN): These are areas with little trading activity. Prices tend to move quickly through these zones as there are fewer market participants. They often indicate potential breakout or breakdown points. VAL and VAH VAH (Value Area High) Definition: The VAH is the price level at the upper boundary of the Value Area. The Value Area represents the range where a set percentage (usually 70%) of all trading volume has occurred within the visible range. Significance: The VAH is the price point at which the volume profile starts to show less concentration of volume. It is a level above which price has shown less activity compared to the Value Area. When price approaches or breaks through the VAH, it often signals potential resistance and could be a critical level to watch for a reversal or continuation. VAL (Value Area Low) Definition: The VAL is the price level at the lower boundary of the Value Area. It represents the lowest price point where around 70% of all the trading volume has occurred within the visible chart range. Significance: The VAL is a key support level, as it marks the price level where most trading volume has taken place on the downside. A price approaching or breaking below the VAL can signal potential support or a breakdown, indicating where buyers and sellers are actively engaging. How VAH and VAL Work Together Value Area: Together, the VAH and VAL define the Value Area, which contains the range of price levels where the majority of trading volume took place. In a healthy market, the price tends to stay within this area. If price breaks out of the Value Area, it could indicate the start of a strong price move in that direction (either upward or downward). Relevance in Trading: The VAH and VAL act as key levels for traders to monitor: Above VAH: Price moving above the VAH suggests bullish sentiment, with the next resistance potentially forming above the VAH. Below VAL: Price moving below the VAL suggests bearish sentiment, with the next support potentially forming below the VAL. Example of the VAL and VAH: Point of Control (POC): This is the price level with the highest trading volume within the visible range. The POC is often used as a key reference point for future price movements. If the price is trading above the POC, it suggests bullish market sentiment; if below, it suggests bearish sentiment. Example of the POC level: How to Use the VRVP Tool in Trading Identifying Support and Resistance Levels High Volume Nodes (HVNs): These levels often act as support or resistance. When price approaches an HVN, it is likely to either reverse or consolidate before moving further. If the price is above an HVN, that level may act as support, while if it's below, the level may act as resistance. Spotting Breakout Zones Low Volume Nodes (LVNs): These are areas where price can break out or move rapidly due to the lack of significant trading activity. If price enters an LVN, it may continue moving in the direction of the breakout with minimal resistance. Using the Point of Control (POC) The POC acts as a market balance point where the most volume has been traded. If the price is trading above the POC, it signals a bullish market trend, and if below, it signals a bearish trend. Watching the POC can help you gauge the overall market sentiment and potential future price movements. here is another example of the POC Confirmation with Other Indicators To increase the accuracy of your trades, combine the VRVP with other technical indicators such as: Moving Averages (MA): These help confirm the trend direction and potential reversals. Relative Strength Index (RSI): This can identify overbought or oversold conditions, which can be used in conjunction with the VRVP to confirm price action. Candlestick Patterns: Look for reversal or continuation patterns at key volume levels. Trendlines: Use trendlines to confirm whether price is bouncing off or breaking through key support or resistance levels. Example Strategy Step 1: Use the VRVP tool to identify a high volume node (support zone). Step 2: Check the RSI to see if the market is oversold. Step 3: Wait for a bullish candlestick pattern (such as a bullish engulfing or hammer). Step 4: Enter a buy trade with a stop loss placed below the low volume node, which serves as a breakout or breakdown zone. How to Plan Trades with the VRVP Here are some scenarios you might encounter when using the VRVP tool: Price near HVN (Support): Buy with a stop loss placed just below the HVN, as it is likely to act as support. Price near LVN: Wait for confirmation of a breakout or rejection before taking a position, as price may move rapidly through this area. Price at POC: Look for reversal or breakout signals. If the price is near the POC, the market may change direction or continue in the current trend. Price above POC: This indicates a bullish trend continuation. Look for buying opportunities. Price below POC: This indicates a bearish trend continuation. Look for selling opportunities. Tips for Beginners Wait for Confirmation: Always wait for confirmation from price action, other indicators, or candlestick patterns before entering a trade. Combine with Trend Indicators: Combine the VRVP with trend indicators such as moving averages to ensure you’re trading in the direction of the overall trend. Use Volume Spikes: Look for volume spikes alongside the VRVP to confirm breakouts. Practice First: Start using the VRVP tool on a demo account before risking real money to get a feel for its nuances. Tips for Experienced Traders Use Multiple Timeframes: Use the VRVP tool on both longer (daily) and shorter (hourly) timeframes to identify the strongest support and resistance levels. Track the POC Shifts: Observe how the POC moves over time. An upward shift suggests a bullish market, while a downward shift suggests a bearish market. Combine with Fibonacci Retracements: Combine the VRVP with Fibonacci retracement levels to identify confluence zones, where high volume areas coincide with Fibonacci levels, increasing the likelihood of price reactions at these levels. Conclusion The VRVP tool on TradingView is a versatile and powerful tool that offers valuable insights into market structure by analyzing trading volume at different price levels. By understanding how to read and use the VRVP tool, you can identify key support and resistance levels, predict potential breakouts, and refine your entry and exit strategies. Whether you’re a beginner or an experienced trader, the VRVP can be a valuable addition to your trading toolkit. Start practicing on a demo account and gradually incorporate the VRVP tool into your strategy. With time and experience, the VRVP will help you gain a deeper understanding of market dynamics and improve your overall trading performance. ------------------- I hope you found this guide on the VRVP tool helpful and that you’ve gained some valuable insights to improve your trading strategy. If you learned something new, don’t forget to give a like! If you have any questions or need further clarification, feel free to leave a comment below. I’d be happy to help!
KRAKEN:BTCUSDEducation
by TehThomas
8
How Can You Use a Spinning Top Candlestick Pattern in Trading?How Can You Use a Spinning Top Candlestick Pattern in Trading? The spinning top candle is a key tool in technical analysis, highlighting moments of market indecision. This article explores what spinning tops represent, how they differ from similar patterns, and how traders can interpret them to refine their strategies across various market conditions. What Does a Spinning Top Candlestick Mean? A spinning top is a candlestick pattern frequently used in technical analysis. It consists of one candle with a small body and long upper and lower shadows of approximately equal length. The candle’s body symbolises the discrepancy between the opening and closing prices during a specified time period, while the shadows indicate that volatility was high and neither bulls nor bears could take control of the market. This pattern signifies market indecision, where neither buyers nor sellers have gained dominance. It suggests a state of equilibrium between supply and demand, with the price oscillating within a narrow range. The spinning top may indicate continued sideways movement, particularly if it appears within an established range. However, if it forms after a bullish or bearish trend, it could signal a potential price reversal. Traders always look for additional signals from confirming patterns or indicators to determine the possible market direction. It’s important to note that the spinning top candle is neutral and can be either bullish or bearish depending on its context within the price chart. The colour of the candle is not important. Spinning Top vs Doji Doji and spinning top candlesticks can be confused as they have similar characteristics. However, the latter has a small body and upper and lower shadows of approximately equal lengths. It indicates market indecision, suggesting a balance between buyers and sellers without a clear dominant force. Traders interpret it as a potential reversal signal, reflecting a possible change in the prevailing trend. The doji candlestick, on the other hand, has a small body, where the opening and closing prices are very close or equal, resulting in a cross-like shape. If it’s a long-legged doji, it may also have long upper and lower shadows. A doji candle also represents market indecision but with a focus on the relationship between the opening and closing prices. Doji patterns indicate that buyers and sellers are in equilibrium, and a potential trend reversal or continuation may occur. How Do Traders Use the Spinning Top Pattern? Traders often incorporate the spinning top candle pattern into their analysis as a way to interpret moments of market indecision. Whether the pattern appears during a trend or at key turning points, its context plays a significant role in shaping trading decisions. In the Middle of a Trend When a spinning top forms in the middle of an ongoing trend, traders often view it as a signal of potential market hesitation. This indecision can indicate a pause in momentum, suggesting either a continuation of the trend or the possibility of a reversal. Entry In such cases, traders typically wait for confirmation of the next price move. A break above the high of the spinning top may signal the trend will continue upward, while a break below the low could suggest the trend may move down. Observing how subsequent candles interact with the spinning top can help a trader gauge the market’s intentions. Take Profit Profit targets might be aligned with key price levels visible on the chart, such as recent highs or lows. For traders expecting trend continuation, these targets might extend further, while those anticipating a reversal might aim for closer levels. Stop Loss Stop-loss orders might be set in accordance with the risk-reward ratio. This placement helps account for the pattern's characteristic volatility while potentially protecting against unexpected movements. At the Top or Bottom of a Trend When a spinning top forms at a significant peak or trough, it often draws attention as a potential reversal signal. This appearance may reflect market uncertainty after a prolonged uptrend or downtrend. Entry Confirmation from subsequent price action is critical. Traders typically observe if the price breaks above the candle (bullish spinning top) or below the candle (bearish spinning top) to determine the likelihood of a reversal. Take Profit Targets could be set at major support or resistance zones. A trader expecting a reversal may look for levels reached during the previous trend. Stop Loss Stops could be placed in accordance with the risk-reward ratio, allowing for the volatility often present at trend-turning points while potentially mitigating losses. Remember, trading decisions should not solely rely on this formation. It's crucial to consider additional technical indicators, market trends, and risk management principles when executing trades. Live Example In the EURUSD chart above, the red spinning top candle appears at the bottom of a downtrend. A trader went long on the closing of the bullish candle that followed the spinning top. A take-profit target was placed at the closest resistance level, and a stop-loss was placed below the low of the spinning top candlestick. There is another bearish spinning top candlestick pattern on the right. It formed in a solid downtrend; therefore, a trader could use it as a signal of a trend continuation and open a sell position after the next candle closed below the lower shadow of the spinning top candle. A Spinning Top Candle: Benefits and Drawbacks The spinning top candlestick pattern offers valuable insights into market indecision, but like any tool in technical analysis, it has its strengths and limitations. Understanding these might help traders use it more effectively. Benefits - Identifies Market Indecision: Highlights moments where neither buyers nor sellers dominate, providing a clue about potential price reversals or continuations. - Versatile Across Trends and Markets: Can signal price consolidation, continuation, or reversal depending on its context. It’s also possible to use the spinning top across stocks, currencies, and commodities. - Quick Visual Insight: The distinctive shape makes it easy to spot on charts without extensive analysis. Drawbacks - Requires Confirmation: On its own, the pattern lacks particular signals, needing additional indicators or price action for confirmation. - Context-Dependent: Its reliability depends heavily on where it forms in the trend, making it less useful in isolation. - Prone to False Signals: Market noise can produce spinning tops that do not lead to meaningful movements, increasing the risk of misinterpretation. Takeaway The spinning top candlestick reflects market indecision and suggests a potential reversal or consolidation. Traders use this pattern as a tool to identify areas of uncertainty in the market. Therefore, it's important to consider the spinning top pattern within the broader context and get confirmation from other analysis tools. If you want to test your spinning top candlestick trading strategy or apply it to a live chart, open an FXOpen account and start trading with tight spreads from 0.0 pips and low commissions from $1.50. Good luck! FAQ What Is a Black Spinning Top? A black (red) spinning top is a variation of the spinning top candlestick pattern with a small body and equal-length shadows. This is different from the white (green) spinning top, as its body indicates a lower closing price. Traders analyse its context, technical factors, and confirmation from other indicators to interpret its significance. What Is a Spinning Top Candlestick? A spinning top candle meaning refers to a pattern characterised by a small body and long upper and lower shadows of roughly equal length. It reflects market indecision, where neither buyers nor sellers hold a clear advantage, and is often used in technical analysis to assess potential trend reversals or consolidations. Is the Spinning Top Bullish or Bearish? The spinning top candlestick pattern is neutral by nature. Its significance depends on the context within the price chart. When it appears at the end of an uptrend, it may signal a bearish sentiment, while at the end of a downtrend, it can indicate a potential bullish reversal. What Does a Spinning Top Candle Indicate? This pattern indicates a period of indecision and balance between buying and selling pressure. Depending on its position within a trend, it can signal consolidation, continuation, or a reversal in price direction. What Is the Spinning Top Rule? There is no fixed "rule" for spinning top trading. Traders typically look for confirmation from subsequent price movements or other technical indicators to decide on a course of action. Is Spinning Top a Doji? Although similar, spinning tops and doji candles differ. A spinning top has a small body with visible discrepancies between opening and closing prices, whereas a doji’s body is almost non-existent. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
The Right Questions to Ask Before Entering a TradeEvery day, traders—especially beginners—ask the same recurring question: ❓ What do you think Gold will do today? Will it go up or down? While this seems like a logical question, it’s actually completely wrong and one that no professional trader would ever ask in this way. Trading is not about predicting the market like a fortune teller. Instead, it's about analyzing price action, managing risk, and executing trades strategically. So, instead of asking, "Will Gold go up or down?" , a professional trader asks three critical questions before taking any trade. Let's break them down. ________________________________________ Step 1: Identifying the Right Entry Point Let’s say you’ve done your analysis, and you believe Gold will drop. That’s great—but that’s just an opinion. What really matters is execution. 🔹 Where do I enter the trade? Professional traders don’t jump into the market impulsively. They use pending orders instead of market orders to wait for the right price. If you believe Gold will fall, you shouldn’t just sell at any price. You need to identify a key resistance level where a reversal is likely to happen. For example: • If Gold is trading at $2900, and strong resistance is at $2920, a professional trader will set a sell limit order at that resistance level rather than shorting randomly. This approach ensures that you enter at a strategic point where the probability of success is higher. ________________________________________ Step 2: Setting the Stop Loss 🔹 Where do I place my stop loss? A trade without a stop loss is just gambling. Managing risk is far more important than being right about market direction. The key is to determine: ✅ How much risk am I willing to take? ✅ Where is the invalidation level for my trade idea? For example: • If you are shorting Gold at $2920, you might place your stop loss at $2935—above a recent high or key technical level. • This way, if the price moves against you, you have a predefined maximum loss, avoiding emotional decision-making. Professional traders never risk more than a small percentage of their account on a single trade. Risk management is everything. ________________________________________ Step 3: Setting the Take Profit Target 🔹 Where do I set my take profit, and does the trade make sense in terms of risk/reward? Before taking any trade, you must ensure that your reward outweighs your risk. For example: • If you risk $15 per ounce (short at $2920, stop loss at $2935), your take profit should be at least $30 away (for a 1:2 risk/reward). • A good target in this case could be $2890 or lower. This means that for every dollar you risk, you aim to make two dollars—ensuring long-term profitability even if only 40-50% of your trades succeed. If the trade doesn’t offer a good risk/reward, it’s simply not worth taking. ________________________________________ Conclusion: The “Set and Forget” Mentality Once you’ve answered these three key questions and placed your trade, the best approach is to let the market do its thing. ✅ Set your entry, stop loss, and take profit. ✅ Follow your trading plan. ✅ Avoid emotional reactions. Many traders lose money because they constantly interfere with their trades—moving stop losses, closing positions too early, or hesitating to take profits. Instead, adopt a professional approach: set your trade and let it run. 📌 Final Thought: The next time you find yourself asking, “Will Gold go up or down today?” , stop and ask yourself: 📊 Where is my entry? 📉 Where is my stop loss? 💰 Where is my take profit, and does the risk/reward make sense? This is how professional traders think, plan, and execute—and it’s what separates them from amateurs. 👉 What’s your biggest struggle when it comes to executing trades? Let’s discuss in the comments! 🚀 Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
TRADENATION:XAUUSDEducation
by Mihai_Iacob
TradeCityPro Academy | Dow Theory Part 1👋 Welcome to TradeCityPro Channel! Welcome to the Educational Content Section of Our Channel Technical Analysis Training We aim to produce educational content in playlist format that will teach you technical analysis from A to Z. We will cover topics such as risk and capital management, Dow Theory, support and resistance, trends, market cycles, and more. These lessons are based on our experiences and the book The Handbook of Technical Analysis 🎨 What is Technical Analysis? Technical Analysis (TA) is a method used to predict price movements in financial markets by analyzing past data, especially price and trading volume. This approach is based on the idea that historical price patterns tend to repeat and can help traders identify profitable opportunities. 🔹 Why is Technical Analysis Important? Technical analysis helps traders and investors predict future price movements based on past price action. Its importance comes from several key benefits: Faster Decision-Making: No need to analyze financial reports or complex news—just focus on price patterns and trading volume. Better Risk Management: Tools like support & resistance, indicators, and chart patterns help traders find the best entry and exit points. Applicable to All Markets: Technical analysis can be used in Forex, stocks, cryptocurrencies, commodities, and even real estate. Understanding Market Psychology: Charts reveal investor emotions like fear and greed, allowing traders to react accordingly. 📌 Real-Life Example Imagine you own a mobile phone shop and want to predict whether phone prices will go up or down in the next few months. 🔹 Fundamental Analysis Approach You follow the news and see that the USD exchange rate is rising, and phone manufacturers plan to increase prices. Based on this, you predict that phone prices will go up soon. 🔹 Technical Analysis Approach You analyze past price trends and notice that every year, phone prices tend to increase before the New Year. This pattern has repeated for several years, so you assume it will happen again. As a result, you buy stock before the price hike and make a profit. This example shows that technical analysis allows you to make decisions based on past market behavior without relying on external news. 📊 I ntroduction to Dow Theory Today, for the first part of our lessons, we will begin with Dow Theory, which was developed by American journalist Charles Dow. Many traders still use this method for analysis and trading. Dow Theory is one of the fundamental concepts in technical analysis, developed by Charles Dow, the founder of The Wall Street Journal and co-founder of the Dow Jones Industrial Average (DJIA). This theory provides a structured approach to understanding market trends and price movements and is still widely used today by traders and analysts. Dow Theory consists of six core principles, which we will explain in detail: 📑 Principles of Dow Theory 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trend Continues Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 💵 Principle 1: Price is All You Need According to this principle, all available information is already reflected in asset prices. This includes economic data, political events, earnings reports, trader expectations, and even market sentiment. If a company releases strong earnings, its stock price might not rise significantly because investors had already anticipated this and bought in advance. ❗ Why This Is Important Technical analysts focus on price movements rather than external news since all information is already factored into the market. Instead of reacting to news, traders analyze historical price trends to predict future price movements. 📊 Principle 2: The Market Has Three Types of Trends Dow Theory states that markets move in three types of trends, each occurring over different timeframes: 1 - Primary Trend: This is the main movement of the market, dictating the long-term direction, and can last for years. 2 - Secondary Trends: These are corrective movements that run opposite to the primary trend. For instance, if the primary trend is bullish, the corrective trend will be bearish. These trends can last from weeks to months. 3- Minor Trends: These are the daily price fluctuations in the asset. Although minor trends can last for weeks, their direction will always align with the primary trend, even if they contradict the secondary trend. 💡 Final Thoughts for Today This is the end of this part, and I must say we have a long journey ahead. We will continually strive to produce better content every day, steering clear of sensationalized content that promises unrealistic profits, and instead, focusing on the proper learning path of technical analysis. ⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
Education
by tradecitypro
8
Measured Moves: Understanding Harmonic SimplicityFew tools in trading are forward-looking and adapt to current volatility, Measured Moves do. Unlike traditional indicators, Measured moves offer a structured way to project price targets and turning points with no lag. Let’s take a deep dive into the harmonic simplicity of the measure move and look at how it can be applied to real-world market conditions. What Are Measured Moves? A measured move is a price projection technique that assumes market swings tend to repeat in a proportional manner. By taking the length of a prior move and projecting it forward, traders can identify potential areas where price might react, either as a turning point or a continuation zone. This makes measured moves one of the few truly predictive tools in technical analysis—offering guidance without the lag that comes with moving averages or oscillators. Beyond their predictive nature, measured moves are inherently adaptive. Markets move through phases of expansion and contraction, meaning fixed-length indicators can become unreliable when volatility shifts. Measured moves, by definition, adjust to the prevailing market conditions, making them particularly effective in dynamic environments. Example: DXY Daily Candle Charts Measured Move DXY Daily Candle Charts: Measured Moves Past performance is not a reliable indicator of future results Past performance is not a reliable indicator of future results Timing Profit-Taking with Measured Moves One of the most effective uses of measured moves is in setting profit targets. In trending markets, traders often struggle with the decision of when to exit—too early and they leave gains on the table, too late and they risk giving back profits. A measured move provides a logical framework for identifying where price may run out of steam. The process is straightforward: take the length of a completed impulse move and project it from the swing low (in an uptrend) or swing high (in a downtrend) of a subsequent pullback. If price approaches this level and momentum starts to fade, it suggests a natural area for taking profits. This method ensures that you don’t rely solely on intuition or arbitrary levels but instead use market-driven symmetry to guide exits. Example: FTSE 100 Breakout on Daily Candle Chart Past performance is not a reliable indicator of future results Past performance is not a reliable indicator of future results Entering Two-Legged Pullbacks Measured moves are also very useful for timing entries in corrective pullbacks—especially in two-legged retracements, which are common in trending markets. Price rarely moves in a straight line; instead, pullbacks often develop in two distinct waves or A,B,C,D pattern before resuming the dominant trend. This pattern can be frustrating for traders who enter too early, only to see price dip lower before the trend continues. By measuring the size of the first pullback and projecting it forward, traders can anticipate the likely endpoint of the second leg. When price reaches this level and starts to stabilise, it provides a higher-probability entry for traders looking to trade with the trend. This technique works particularly well when combined with broader support or resistance levels, reinforcing key zones where buying or selling pressure may return. Example: Gold Daily Candle Chart Past performance is not a reliable indicator of future results Past performance is not a reliable indicator of future results Combining Measured Moves with Candle Patterns Measured moves provide price-based structure, but confirmation from price action can refine entries and exits even further. Candlestick patterns help traders gauge sentiment at key measured move levels, offering a layer of confirmation before taking action. For profit-taking, if price reaches a measured move projection and forms a reversal pattern—such as a shooting star in an uptrend or a hammer in a downtrend—it strengthens the case for locking in gains. Conversely, for entries, a two-legged pullback that completes at a measured move level becomes even more compelling when a bullish engulfing pattern or pin bar forms, signalling potential trend continuation. By combining measured moves with candlestick confirmation, you avoid acting on rigid projections alone. Instead, you can use price action cues to validate measured move levels, improving decision-making and reducing false signals. Summary: Measured moves provide a structured, adaptable approach to navigating price action. Whether used for profit-taking or timing pullback entries, their ability to adjust to volatility and offer forward-looking projections makes them a valuable tool in a trader’s arsenal. When combined with candlestick patterns, they become even more effective, offering both precision and confirmation in a market that thrives on uncertainty. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
CAPITALCOM:UK100Education
by Capitalcom