RSI-Volume Momentum Signal Score: Trading the Momentum PressureThe indicator used in this chart is an updated version of the RSI-Volume Momentum Score.
The RSI-Volume Momentum Signal Score is a predictive technical indicator designed to identify bullish and bearish momentum shifts by combining volume-based momentum with the Relative Strength Index (RSI). It generates a Signal Score derived from:
• The divergence between short-term and long-term volume (Volume Oscillator), and
• RSI positioning relative to a user-defined threshold. The Signal Score is calculated as follows:
Signal Score = tanh((vo - voThreshold) / scalingFactor) * ((rsiThreshold - rsi) / scalingFactor)
The logic of this formula are as follows:
• If Volume Oscillator >= Volume Threshold and RSI <= RSI Threshold: Bullish Signal (+1 x Scaling Factor)
• If Volume Oscillator >= Volume Threshold and RSI >= (100 – RSI Threshold): Bearish Signal (-1 x Scaling Factor)
• Otherwise: Neutral (0)
The tanh function provides the normalization process. It ensures that the final signal score is bounded between -1 and 1, increases sensitivity to early changes in volume patterns based on RSI conditions, and prevent sudden jumps in signals ensuring smooth and continuous signal line.
This updated version Introduces colored columns (green and red bars) representing momentum pressure directly. These bars:
o Green bars represent bullish pressure when the signal score is +1.
o Red bars represent bearish pressure when the signal score is -1.
o The transition point from one color to another acts as a visual signal of momentum reversal.
LONG SIGNAL: A transition from green bar to red bar indicates that bullish pressure has reached a tipping point—price is likely to rise soon.
SHORT SIGNAL: A transition from red bar to green bar signals bearish pressure is peaking—potential price drop ahead.
These transitions become intuitive signals for bullish or bearish entries, depending on the context.
Trend Analysis
DON'T Make This MISTAKE in MULTIPLE TIME FRAME Analysis
Most of the traders apply multiple time frame analysis incorrectly . In the today's article, we will discuss how to properly use it and how to build the correct thinking process with that trading approach.
The problem is that many traders start their analysis with lower time frames first . They build the opinion and the directional bias analyzing hourly or even lower time frames and look for bullish / bearish signals there.
Once some solid setup is spotted, they start looking for confirmations , analyzing higher time frames. They are trying to find the clues that support their observations.
However, the pro traders do the opposite .
The fact is that higher is the time frame, more significant it is for the analysis. The key structures and the patterns that are spotted on an hourly time frame most of the time will be completely irrelevant on a daily time frame.
In the picture above, I underlined the key levels on USDJPY on an hourly time frame on the left.
On the right, I opened a daily time frame. You can see that on a higher time frame, the structures went completely lost.
BUT the structures that are identified on a daily, will be extremely important on any lower time frame.
In the example above, I have underlined key levels on a daily.
On an hourly time frame, we simply see in detail how important are these structures and how the market reacts to them.
The correct way to apply the top-down approach is to start with the higher time frame first: daily or weekly. Identify the market trend there, spot the important key levels. Make prediction on these time frames and let the analysis on lower time frames be your confirmation.
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Why this strategy works so well (Ticker Pulse Meter + Fear EKG) Disclaimer: This is for educational purposes only. I am not a financial advisor, and this is not financial advice. Consult a professional before investing real money. I strongly encourage paper trading to test any strategy.
The Ticker Pulse + Fear EKG Strategy is a long-term, dip-buying investment approach that balances market momentum with emotional sentiment. It integrates two key components:
Ticker Pulse: Tracks momentum using dual-range metrics to pinpoint precise entry and exit points.
Fear EKG: Identifies spikes in market fear to highlight potential reversal opportunities.
Optimized for the daily timeframe, this strategy also performs well on weekly or monthly charts, making it ideal for dollar-cost averaging or trend-following with confidence. Visual cues—such as green and orange dots, heatmap backgrounds, and SMA/Bollinger Bands—provide clear signals and context. The strategy’s default settings are user-friendly, requiring minimal adjustments.
Green dots indicate high-confidence entry signals and do not repaint.
Orange dots (Fear EKG entries), paired with a red “fear” heatmap background, signal opportunities to accumulate shares during peak fear and market sell-offs.
Now on the the educational part that is most fascinating.
Load XLK on your chart and add a secondary line by plotting the following on a secondary axis:
INDEX:SKFI + INDEX:SKTH / 2
Now, you should see something like this:
Focus on the INDEX:SKFI + INDEX:SKTH / 2 line, noting its dips and spikes. Compare these movements to XLK’s price action and the corresponding dot signals:
Green and Orange Dots: Opportunities to scale into long positions.
Red Dots: Opportunities to start scaling out of positions.
This concept applies not only to XLK but also to major stocks within a sector, such as AAPL, a significant component of XLK. Chart AAPL against INDEX:SKFI + INDEX:SKTH / 2 to observe how stock and sector indices influence each other.
Now, you should see something like this:
Long-Term Investing Considerations
By default, the strategy suggests exiting 50% of open positions at each red dot. However, as long-term investors, there’s no need to follow this rule strictly. Instead, consider holding positions until they are profitable, especially when dollar-cost averaging for future retirement.
In prolonged bear markets, such as 2022, stocks like META experienced significant declines. Selling 50% of positions on early red dots may have locked in losses. For disciplined long-term investors, holding all open positions through market recoveries can lead to profitable outcomes.
The Importance of Context
Successful trading hinges on context. For example, using a long-term Linear Regression Channel (LRC) and buying green or orange dots below the channel’s point-of-control (red line) significantly improves the likelihood of success. Compare this to buying dots above the point-of-control, where outcomes are less favorable.
Why This Strategy Works
The Ticker Pulse + Fear EKG Strategy excels at identifying market dips and tops by combining momentum and sentiment analysis. I hope this explanation clarifies its value and empowers you to explore its potential through paper trading.
Anyway, I thought I would make a post to help explain why the strategy is so good at identifying the dips and the tops. Hope you found this write up as educational.
The strategy:
The Companion Indicator:
Introduction to Chart Structure AnalysisWe need to understand that price exists in one of two states — it's either moving up or down. If the movement is clear, we can identify a specific trend — either bullish or bearish. However, if we can’t determine the direction, it means the price is in a consolidation phase. Still, even within that consolidation, price is either rising or falling. Ultimately, it all comes down to the choice of timeframe.
Our trading objective
Our task is to identify the current state of the price and open a trade accordingly — in the direction of the price movement. This is the core goal, regardless of how one chooses to analyze the chart.
In my opinion, directly reading the market structure is the most reliable and professional way to interpret price action. So, what defines a trend? An uptrend is a sequence of higher highs and higher lows. A downtrend, in contrast, is a sequence of lower highs and lower lows.
This is the type of information we should be focusing on — using it to define the broader context. We start by identifying the trend on the higher timeframe, and then gradually move down to the lower timeframe. It’s clear that if we see an uptrend on the higher timeframe, it should be considered dominant. At the same time, it’s important to understand that within a global uptrend, corrections are natural and expected.
We use key levels to determine whether the trend is continuing or potentially reversing.
Example
Let’s look at a chart example. The level of 3,357 is a key high. Then we see a pullback to 3,320, followed by a move up to 3,345. After that, there’s a break of the bullish structure — the price drops to 3,312, updating the previous low of 3,320. This marks a shift in structure.
Next, price returns to the range and prints a new high at 3,333 — slightly higher, around 3,340, but I’ve chosen 3,333 as the key level for clarity. However, this high is still lower than the previous 3,345, indicating that a local downtrend is beginning to form.
This whole structure drives the price down to 3,283. But we keep in mind the rule: we always consider the global trend, which is still bullish. That means every downward pullback is a potential buying opportunity.
Same here — we track price behavior and wait for confirmation. In this case, we can identify a level around 3,304. We wait for price to reclaim this level from below and attempt a long trade, with a stop-loss below the consolidation low (purple range), and take-profits at 3,312, 3,333, and up to 3,357. These previous key levels serve as our targets.
After that, we see the formation of a new consolidation and a return to the bullish structure — price stays above 3,312. The breakout above 3,322 confirms the continuation of the upward movement.
Conclusion
At this point, the same logic remains in play. In this scenario, we’re working from the long side, placing the stop-loss either below 3,310 (the bottom of the consolidation) or at the previous resistance level — 3,304. The targets remain unchanged.
If we see that price fails to hold above 3,322, we can consider switching to a short setup, with a stop-loss at 3,333 and a target at 3,283. This would confirm the formation of a lower high and signal the continuation of the downward structure.
I’m confident that we can’t truly predict the future — and in reality, we don’t need to. What matters is our ability to correctly read the structure and respond to how price behaves. That’s what allows us to build valid setups and execute them while strictly following risk management rules.
Master Forex Trading with ICT Kill Zones (2024 Guide)The forex market runs 24/5, but not all hours are equally profitable. ICT Kill Zones highlight the 4 most volatile trading windows where institutional activity creates prime opportunities.
ICT Kill Zones Timetable (GMT/EST)
Asian: 8PM - 10PM EST / 12AM - 2AM GMT
London: 2AM - 5AM EST / 6AM - 9AM GMT
New York: 7AM - 9AM EST / 11AM - 1PM GMT
London Close: 10AM - 12PM EST / 2PM - 4PM GMT
Key Characteristics:
Asian Session
Best for AUD, NZD, JPY pairs
Low volatility; ideal for 15-20 pip scalps
London Session
Highest liquidity (trade EUR/GBP)
Often sets daily highs/lows
New York Session
Overlap with London creates high volatility
Focus on USD pairs (e.g., USD/CAD)
London Close
Price retracements to daily range
Quick 15-20 pip reversal plays
Mastering Candlestick Patterns - How to use them in trading!Introduction
Candlesticks are one of the most popular and widely used tools in technical analysis. They offer a visual representation of price movements within a specific time period, providing valuable insights into market trends, sentiment, and potential future price movements.
Understanding candlestick patterns is crucial for traders, as these formations can indicate whether a market is bullish or bearish, and can even signal potential reversals or continuations in price. While candlesticks can be powerful on their own, trading purely based on candlestick patterns can be challenging and risky.
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What are we going to discuss:
1. What are candlesticks?
2. What are bullish candlestick patterns?
3. What are bearish candlestick patterns?
4. How to use candlestick patterns in trading?
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1. What are candlesticks?
A candlestick in trading is a visual representation of price movement in a specific time period on a chart. It is a fundamental element used in technical analysis to study market trends, determine price levels, and predict potential future price movements. A single candlestick consists of four main components: the open, close, high, and low prices for that time period.
Here’s how a candlestick works:
- The Body: The rectangular area between the open and close prices. If the close is higher than the open, the body is green, indicating a bullish (upward) movement. If the close is lower than the open, the body is red, signaling a bearish (downward) movement.
- The Wick (high and low of the candle): The thin lines extending above and below the body. These represent the highest and lowest prices reached during the period. The upper wick shows the highest price, while the lower wick shows the lowest price.
- The Open Price: The price at which the asset began trading in that time period (for example, the start of a day, hour, or minute depending on the chart timeframe).
- The Close Price: The price at which the asset finished trading at the end of the period.
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2. What are bullish candlestick patterns?
What is a Hammer Candlestick Pattern?
A hammer candlestick pattern has a small body near the top of the candle and a long lower wick, typically two to three times the length of the body. There is little to no upper wick. This formation shows that during the trading session, sellers managed to push the price significantly lower, continuing the downward momentum. However, buyers eventually stepped in with strong demand and drove the price back up near the opening level by the close.
What is an Inverted Hammer?
An inverted hammer has a small body near the bottom of the candle with a long upper wick, usually at least two to three times the size of the body, and little to no lower wick. This unique shape resembles an upside-down hammer, hence the name.
What is a Dragonfly Doji?
A dragonfly doji has a unique shape where the open, close, and high prices are all at or very close to the same level, forming a flat top with a long lower wick and little to no upper wick. This gives the candle the appearance of a "T," resembling a dragonfly.
What is a Bullish Engulfing?
A bullish engulfing candlestick consists of two candles. The first candle is bearish, indicating that sellers are still in control. The second candle is a large bullish candle that completely engulfs the body of the first one, meaning it opens below the previous close and closes above the previous open. This pattern reflects a clear shift in market sentiment. During the second candle, buyers step in with significant strength, overpowering the previous selling pressure and reversing the momentum. The fact that the bullish candle completely engulfs the previous bearish candle indicates that demand has taken over, signaling a potential trend reversal.
What is a Morning Star?
The morning star consists of three candles. The first is a long bearish candle, indicating that the downtrend is in full force, with strong selling pressure. The second candle is a small-bodied candle, which can be either bullish or bearish, representing indecision or a pause in the downtrend. Often, the second candle gaps down from the first, indicating that the selling pressure is subsiding but not yet fully reversed. The third candle is a long bullish candle that closes well above the midpoint of the first candle, confirming that buyers have taken control and signaling the potential start of an uptrend.
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3. What are bearish candlestick patterns?
What is a Shooting Star?
A shooting star has a smal body near the low of the candle and a long upper wick, usually at least twice the size of the body, with little to no lower wick. This shape shows that buyers initially pushed the price higher during the session, continuing the upward momentum. However, by the close, sellers stepped in and drove the price back down near the opening level.
What is a Hanging Man?
A hanging man has a distinct shape, with a small body positioned near the top of the candle and a long lower wick, usually at least twice the length of the body. There is little to no upper wick. The appearance of this candle suggests that although there was strong selling pressure during the session, buyers managed to bring the price back up near the opening level by the close. Despite the recovery, the long lower wick shows that sellers were able to push the price down significantly at one point. This introduces uncertainty into the uptrend and can indicate that bullish momentum is weakening.
What is a Gravestone Doji?
A gravestone doji has a distinctive shape where the open, low, and close prices are all at or near the same level, forming a flat base. The upper wick is long and stretches upward. This shape resembles a gravestone, which is where the pattern gets its name.
What is a Bearish Engulfing?
A bearish engulfing candlestick pattern is a two-candle reversal pattern that typically appears at the end of an uptrend and signals a potential shift from bullish to bearish sentiment. The first candle is a smaller bullish candle, reflecting continued upward momentum. The second candle is a larger bearish candle that completely engulfs the body of the first one, meaning it opens higher than the previous close and closes lower than the previous open. This indicates that bears have taken control, overpowering the buyers, and suggests a potential downside movement.
What is an Evening Star?
An evening star is a bearish candlestick pattern that typically signals a potential reversal at the top of an uptrend. It consists of three candles and reflects a shift in momentum from buyers to sellers. The pattern starts with a strong bullish candle, showing continued buying pressure and confidence in the upward move. This is followed by a smaller-bodied candle, which can be bullish or bearish, and represents indecision or a slowdown in the uptrend. The middle candle often gaps up from the first candle, showing that buyers are still trying to push higher, but the momentum is starting to weaken. The third candle is a strong bearish candle that closes well into the body of the first bullish candle. This candle confirms that sellers have taken control and that a trend reversal could be underway. The more this third candle erases the gains of the first, the stronger the reversal signal becomes.
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4. How to use candlestick patterns in trading?
Candlestick patterns are most useful when they appear at key levels, such as support, resistance, or significant trendlines. For instance, if a bullish reversal pattern like a hammer or bullish engulfing forms at a support level, it may indicate that the downtrend is losing momentum, and a reversal could be coming.
Trading based on candlestick patterns alone can be risky. To improve your chances of success, always seek additional confirmation from other technical analysis tools. Here are some common ones:
- Support and Resistance Levels: Look for candlestick patterns that form near key support or resistance levels. For instance, if the price reaches a support zone and a bullish reversal candlestick pattern forms, this may suggest a potential upward reversal.
- Fibonacci Retracement: Use Fibonacci levels to identify potential reversal zones. If a candlestick pattern appears near a key Fibonacci level (such as the Golden Pocket), it adds confirmation to the idea that the price may reverse.
- Liquidity Zones: These are areas where there is a high concentration of buy or sell orders. Candlestick patterns forming in high liquidity zones can indicate a stronger potential for a reversal or continuation.
- Indicators and Oscillators: Incorporating indicators like the Relative Strength Index (RSI), Moving Averages, MACD, or Stochastic RSI can help confirm the momentum of the price. For example, if a candlestick pattern forms and the RSI shows an oversold condition (below 30), this could indicate a potential reversal to the upside.
It’s crucial to wait for confirmation before entering a trade. After a candlestick pattern forms, it’s important to wait for the next candle or price action to confirm the signal. For example, if you spot a bullish reversal candlestick like a hammer at support, wait for the next candle to close above the hammer’s high to confirm that buyers are in control and a reversal is likely.
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THE DEATH CROSSDeath Cross Triggered During Consolidation: What It Could Mean
The 50 SMA (blue) just crossed below the 200 SMA (red), signaling a Death Cross—a traditionally bearish indicator. But here’s the catch: this didn’t happen during a steep downtrend. It happened during consolidation.
That changes the narrative.
When a Death Cross forms during a period of sideways chop instead of a clear downtrend, it often reflects lagging momentum, not accelerating weakness. It can trap shorts expecting a breakdown, especially if price is coiling above strong support or forming a basing pattern.
💡 Key things I’m watching:
Does price respect the consolidation range low?
Are we forming a bullish divergence on RSI or MACD?
How does volume behave around the cross?
This may not be a "short and hold" moment—this might be a shakeout before trend resolution. Stay sharp. Don't trade the cross, trade the context.
GBPJPY Bullish Continuation Case StudyTo share the GBPJPY case study, where I only took +1RR from +2RR possible return.
Reason:
1. Price moved from downtrend to uptrend
2. Demand with huge bullish candle after it (imbalance above demand) not yet re-test
3. Multiple supports above demand zone
4. Price tapped to demand zone, looks aggressive but demand was strong enough to hold and price bounces from it
This is textbook setup, targeting 2RR from this setup is achievable. Please do not trust me! I do not have big capital to support my statement.
One thing is certain is that, if you trade one setup or strategy, and collect data and watch how it work, you can achieve a profitable trading journey.
Trading Smarter, Not Harder: Decoding Institutional MovesThere’s an old saying in trading: “Follow the smart money.” But how do you know where the smart money is going? The answer lies not in guesswork but in data—specifically, the kind of institutional-grade data that most retail traders overlook. If you’re serious about understanding market dynamics, it’s time to dive into the world of **COT (Commitment of Traders) reports** and **options flow data** from the **CME (Chicago Mercantile Exchange)**. These tools are like your personal radar, cutting through the noise to reveal what the big players are doing.
Step 1: Understanding the Big Picture – Why Market Sentiment Matters
Before we zoom into the specifics, let’s start with the basics. Markets are driven by sentiment—the collective mood of participants. When fear dominates, prices fall; when greed takes over, they rise. But here’s the catch: Retail traders often react to sentiment after it’s already priced in. By the time you see a headline screaming “Market Crashes!” or “Record Highs!”, the opportunity has likely passed.
This is where systematic analysis comes in. Instead of relying on emotions or lagging indicators, smart traders use raw data to anticipate shifts in sentiment. And two of the most powerful sources of this data are **COT reports** and **CME options flow**.
Step 2: The Commitment of Traders (COT) Report – Peering Into the Mind of Institutions
The **COT report**, published weekly by the Commodity Futures Trading Commission (CFTC), provides a breakdown of positions held by different types of traders: commercial hedgers, non-commercial speculators (like hedge funds), and small retail traders. Here’s why it’s invaluable:
- **Commercial Hedgers**: These are the “smart money” players—producers and consumers who use futures markets to hedge their risk. For example, a sugar producer might sell futures contracts to lock in prices. Their actions often signal future supply and demand trends.
- **Non-Commercial Speculators**: These are the momentum-driven players who bet on price movements. Tracking their positioning helps identify potential reversals.
- **Small Traders**: Often considered the “dumb money,” their positions frequently coincide with market tops or bottoms.
By systematically analyzing the COT report, you will discover your ability to identify patterns and positioning levels of participants that signal trend reversals or the onset of corrections. Seriously, this will blow your mind! The insights you gain will be so groundbreaking that they will change your trading game forever.
Step 3: Options Flow – Real-Time Insights Into Institutional Activity
While the COT report offers a macro view, **options flow** gives you real-time insights into institutional activity. Directly through CME data feeds, you can track large block trades in options markets. Here’s why this matters:
It will take some time, observation, and comparison with price charts to learn how to uncover insights that lead to trades with a risk-reward ratio of 1:10 or even higher. This isn’t about needing to make options trades; that’s not a requirement. It’s about being able to trade the Forex market much more effectively by using entry points highlighted by options and futures market reports.
For example, over the past few weeks, the USD/JPY pair has been in a downtrend. Long before this happened, major players were accumulating positions in call options on the futures for the yen (which is equivalent to a decline in the yen). We discussed this before the drop occurred (you can easily find those analyses on our page ).
What’s remarkable is that there are many such insights available. For certain instruments (like precious metals and currency pairs), these insights appear with a certain regularity and provide excellent sentiment for opening positions or reversing positions in the opposite direction.
Step 4: Connecting the Dots – From General Trends to Specific Trades
Now that we’ve covered the tools, let’s talk about how to apply them systematically. Imagine you’re analyzing the sugar futures market (a favorite among commodity traders):
1. **Check the COT Report**: In the precious metals market, commercials are often positioned short, hedging against the risk of a decline in the underlying asset's value. When their net position hovers around zero , it typically signals a bullish trend for gold prices in the vast majority of cases.
2. **Analyze Options Flow**: when filtering options by sentiment, there are several key factors to consider:
- Size and value of the option portfolio
- Distance from the central strike (Delta)
- Time to expiration
- Appearance on the rise/fall of the underlying asset
Option portfolios with names such as vertical spread, butterfly, and condor (iVERTICAL SPREAD, IRON FLY/FLY, CONDOR/IRON CONDOR) have predictive sentiment regarding the direction of the asset's price movement. While "naked" options (PUT or CALL options) with above-average volume can signal that the price is encountering a significant obstacle at that level, leading to a potential bounce off that level (support or resistance).
3 **Combine with Retail Positions Analysis**: Look for opportunities to trade against the crowd. If retail sentiment is overwhelmingly bullish, consider a bearish position, and vice versa.
This layered approach ensures you’re not just reacting to headlines but making informed decisions based on valuable data.
Step 5: Why Systematic Analysis Sets You Apart
Here’s the truth: Most traders fail because they rely on intuition rather than evidence. They chase tips, follow social media hype, or get swayed by emotional biases. But markets reward discipline and preparation. By mastering tools like COT reports and options flow, you gain a competitive edge—a deeper understanding market breath! The path of least resistance!
Remember, even seasoned professionals don’t predict every move correctly.However, having a reliable structure allows you to maximize profits from transactions, eliminate noise and unnecessary (questionable) transactions.
Final Thoughts: Your Path to Mastery
If there’s one takeaway from this article, let it be this: The best traders aren’t fortune-tellers; they’re detectives. They piece together clues from multiple sources to form a coherent picture of the market. Start with the big picture (COT reports), zoom into real-time activity (options flow), and then refine your strategy with technical analysis.
So next time you open chart, don’t just look at price. Dive into the reports/data before. Ask questions. Connect the dots. Because in the world of trading, knowledge truly is power.
What’s your experience with COT reports or options flow? Share your thoughts in the comments below—I’d love to hear how you incorporate these tools into your trading routine!
**P.S.** If you found this article helpful, consider bookmarking it for future reference.
What Is a Balanced Price Range, and How Can You Use ItWhat Is a Balanced Price Range, and How Can You Use It in Trading?
Balanced Price Ranges (BPRs) offer traders insight into areas where market forces temporarily balance. Understanding how BPRs form and how to use them can help traders identify key zones of interest on the chart. This article explores the details of BPRs, their applications in trading, and how combining them with other tools can refine your market analysis.
What Is a Balanced Price Range (BPR)?
A Balanced Price Range (BPR) is an Inner Circle Trader (ICT) concept used to pinpoint areas on a price chart where market activity reflects a temporary equilibrium between buyers and sellers. These zones, often identified through overlapping Fair Value Gaps (FVGs), highlight price levels where buying and selling pressures have offset each other, creating a balance.
Here’s how it works in a bullish scenario: a rapid price move downward leaves a bearish Fair Value Gap—a price range the market skips over due to strong selling momentum. If the price rises with equal intensity shortly, creating a bullish Fair Value Gap in the opposite direction, the overlapping region between these gaps becomes the BPR. This overlap represents a zone of temporary balance, where the market has effectively “corrected” the earlier imbalance.
BPR zones are not random. They often form in areas of high market interest—perhaps near key support or resistance levels, or after significant news events that cause sharp price movements. Traders look at these ranges because they frequently act as reference points for future price reactions.
The boundaries of an ICT BPR—its high and low—serve as critical levels. These edges often function as dynamic support and resistance, helping traders gauge potential turning points. Furthermore, BPRs can appear across various timeframes, from minute-by-minute to weekly charts.
How Does a Balanced Price Range Form?
Now that we know the idea of the ICT Balanced Price Range, let’s look at how it forms step by step.
1. An Initial Price Imbalance
A BPR begins with a strong price movement in one direction—either up or down. For example, in an overall bearish scenario, buyers initially drive the price up rapidly and leave behind a bullish FVG. This gap reflects an area where the market didn’t fully engage, often skipping over price levels due to overwhelming demand.
2. A Counter-Move Creates an Opposing Gap
After the initial move, the market can shift in the opposite direction with equal momentum. In our example, sellers step in, pushing the price downward. This creates a bearish FVG that partially overlaps with the earlier bullish FVG. These rapid shifts often occur around key events, such as news releases or liquidity grabs, which ignite temporary market imbalances.
3. Overlapping Fair Value Gaps Define the Range
The overlapping portion of the bullish and bearish FVGs is what forms the BPR. This zone represents the price levels where buying and selling forces are temporarily balanced, neutralising the earlier imbalances.
4. Market Consolidation and Testing
Once the BPR is established, the price often consolidates near this range. This zone acts as a magnet for future price action because it’s seen as an area of high market interest, where traders may take note of previous balance. In the example given, a test may precede a bearish reaction.
Combining BPRs With Other ICT Concepts
Balanced Price Ranges in the ICT methodology become even more powerful when combined with other related concepts. By layering multiple tools, traders can refine their analysis and pinpoint high-probability areas for market activity. Here’s how BPRs work with key ICT concepts:
Fair Value Gaps
Since BPRs are defined by overlapping fair value gaps, understanding how to read these gaps adds depth to BPR analysis. FVGs outside the BPR can act as supplementary zones of interest.
Order Blocks
Traders often spot BPRs forming near significant order blocks. When these zones overlap, they highlight areas where institutional activity may have left a footprint, increasing their importance for analysis.
Liquidity Pools
BPRs often align with liquidity zones where stop orders are clustered. Price may gravitate toward these areas before reacting, offering traders insight into potential price reversals or continuations.
Market Structure Shifts
BPRs can reinforce insights gained from market structure shifts. For example, a BPR forming after a break in structure might signal consolidation before the next major move.
Higher Timeframe Confluence
When a BPR aligns with key levels on higher timeframes, it can provide added confidence in the zone’s relevance for price reactions.
How to Use a Balanced Price Range
The Balanced Price Range can provide traders with valuable insights into price behaviour, acting as a reference point for analysing potential market movements. By understanding how these zones function, traders often use them to refine their strategies and enhance their market analysis.
Identifying High-Interest Zones
As BPRs highlight areas where the market found an equilibrium between buyers and sellers, traders typically monitor how the price reacts when revisiting a BPR. For example, if the price approaches the upper or lower boundary of a BPR, it may indicate a potential turning point or a continuation, depending on the market context.
Support and Resistance Dynamics
One common approach is to view BPRs as dynamic support or resistance zones. When the price tests the range, traders often anticipate a reaction. For instance, a rejection from a BPR in a bearish trend may suggest continued downward momentum, while a breach might signal weakening selling pressure.
Contextualising Larger Market Structures
BPRs don’t exist in isolation; they often align with broader market structures. Traders may use them in combination with tools like liquidity zones or order blocks to build a more complete market picture. For instance, if a BPR forms near a major resistance level on a higher timeframe, this confluence could strengthen its importance as a reference point.
Adjusting for Timeframe and Strategy
The relevance of a BPR often depends on the timeframe being analysed. Day traders might focus on intraday BPRs to find potential trading opportunities, while swing traders could look for these zones on higher timeframes, considering them significant levels for long-term moves. Either trader can use lower and higher timeframe BPRs to inform their analysis and entries.
Managing Risk Around BPRs
Traders may incorporate BPRs into their risk management plans, such as by using the boundaries of the range to set stop-loss or take-profit levels. A breach of these levels can indicate a shift in market sentiment, helping traders refine their analysis.
Risks and Considerations When Using BPRs
While BPRs can be a useful tool for analysing price behaviour, they aren’t without limitations. Traders need to approach BPRs with a clear understanding of their potential pitfalls. Here are some key considerations:
- Not Predictive: BPRs don’t guarantee future price movement. While they highlight zones of interest, traders must combine them with broader market analysis to avoid over-reliance.
- Subjectivity: Identifying BPRs can sometimes be subjective. What one trader sees as a balanced range might not align with another’s interpretation, especially on different timeframes.
- Timeframe Sensitivity: A BPR on a lower timeframe may lose significance in the broader market context. Conversely, higher timeframe BPRs may lag behind fast-moving markets.
- False Breakouts: Price can move beyond a BPR briefly before reversing, creating potential traps for traders relying solely on breakout strategies.
- Market Context Matters: BPRs are analysed alongside market conditions like volatility, news events, or broader trends. Ignoring these factors can reduce their reliability.
The Bottom Line
Understanding Balanced Price Ranges can help traders interpret key market zones and improve their analysis. By combining BPRs with other tools and strategies, traders gain deeper insights into price movements.
FAQ
What Is the ICT Price Range?
The ICT price range refers to specific price levels or zones highlighted in the Inner Circle Trader (ICT) methodology. These ranges often represent areas of interest in the market, such as liquidity pools, fair value gaps, or balanced price ranges. Traders use ICT price ranges to analyse price movement, identify potential reaction points, and refine their trading strategies.
What Is the Meaning of a Balanced Price?
Balanced price describes a market state where buying and selling pressures are in equilibrium. It typically forms in areas where overlapping fair value gaps exist, reflecting zones where previous imbalances have corrected. These areas can act as key levels for future price reactions.
What Is an Optimal Trade Entry in a Balanced Price Range?
Optimal trade entry in a balanced price range refers to identifying high-probability entry points within or near a BPR. Traders often look for price reactions at the range’s boundaries, combining BPR analysis with other ICT tools, such as order blocks or liquidity zones, to refine their approach.
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.
Elliott Wave Analysis of DLF: A Technical PerspectiveHello friends, let's analyze the DLF chart on a daily time frame. Currently, we're observing a corrective phase, where the stock has completed a flat correction pattern (A-B-C) with a 3-3-5 structure. Following this correction, we've seen a significant drop, accompanied by a strong double divergence in the RSI indicator. Where Fibonacci Retracement of last long Rally on Weekly is near 50% - 55% which is less than 61.8% should consider as a Healthy Retracement
As the price is currently moving upwards, completing wave counts, a breakout above the downward trend line would increase our conviction in the analysis.
This analysis is for educational purposes only and not a tip or advisory. If the price breaks out and stays above the trend line while maintaining the low of 601, we can expect further upside momentum. However, 601 would remain a crucial invalidation level, and a breakdown below it would require us to reassess our wave counts.
Key points:
1. DLF chart analysis on daily time frame
2. Flat correction pattern (A-B-C) with 3-3-5 structure
3. Healthy Retracement
4. Strong double divergence in RSI indicator
5. Breakout above trend line increases conviction (Which is pending yet)
6. 601 as invalidation level
Please note that this is a Educational technical analysis post and not a recommendation to buy or sell.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
What to consider when trading...
Hello, traders.
If you "Follow", you can always get new information quickly.
Please click "Boost".
Have a nice day today.
-------------------------------------
This is my personal opinion, so it may differ from yours.
Please keep this in mind.
-
So, how should I proceed with day trading?
When trading day trading, the first thing to consider is the trading volume.
Coins (tokens) with low trading volume should be avoided because volatility can occur in an instant, making it difficult to respond quickly and likely to result in losses.
Therefore, if possible, it is recommended to choose coins (tokens) with high trading volume.
The next thing to consider is the price of the coin (token).
If the price of the coin (token) becomes too high or too low, even if you sell it for profit, you may incur a loss.
Therefore, when trading a coin (token) with a very high price, you should trade with a longer time frame.
In other words, the increase should be high.
When trading a coin (token) with a very low price, you need to be persistent.
This is because the amount you want to trade is large, so the rise or fall may be slow.
The next thing to consider is the size of your trading funds.
If your trading funds are too small, you may not be able to enjoy trading because you will earn too little profit compared to the stress of trading.
If you lose the fun of trading like this, you will have difficulty continuing to trade or you will likely leave the investment market, so you need to be careful.
If you set the trading fund size too high, you can suffer a big loss with one mistake, so you must set a stop loss point and keep it.
You can find out how much trading fund size is right for you by looking at your psychological state when you trade.
If you think you are trading too boldly, it is better to think that the trading fund size is small and increase it little by little.
If you feel extremely anxious when you trade and incur a loss, it is better to reduce the trading fund size little by little.
-
(BTCUSDT 30m chart)
Considering the above considerations (trading volume, price, trading fund size), you should continuously observe the selected coin (token) chart to check the movement at the support and resistance points.
To do this, you need to check whether there is support at the support and resistance points drawn on the 1M, 1W, and 1D charts when you meet the HA-Low and HA-High indicators, which can be the basis for starting a transaction, or when you have a trading strategy.
Usually, when the Trend Cloud indicator shows an upward trend while receiving support near the HA-Low indicator and rising, there is a high possibility of rising.
Therefore, you should consider whether to buy when the HA-Low indicator shows support.
And, when the HA-High indicator touches and falls, there is a high possibility of falling when the Trend Cloud indicator shows a downward trend.
Therefore, the area near the HA-High indicator corresponds to the first selling section.
In this way, you can conduct transactions within the sideways section trading within the HA-Low ~ HA-High section.
Then, when there is a movement that falls below the HA-Low indicator or rises above the HA-High indicator, you can conduct a transaction according to the trend.
Therefore, split trading is essential.
The basics of split trading are to sell half when you make a profit and set the stop loss at the principal price for the remaining half.
-
This is something everyone knows, but it is not easy to follow.
Also, there are times when it is difficult to decide what to use as the standard for trading.
In such cases, as I mentioned, I recommend that you choose a coin (token) considering the trading volume, price, and trading fund size and continuously check the movement of the chart.
Even if you are not familiar with chart analysis, if you continuously look at the chart, there is a possibility that you will see movement.
However, you need prior knowledge on how to set the stop loss point.
-
Thank you for reading to the end.
I hope you have a successful trade.
--------------------------------------------------
Understanding Our Approach: High-Probability Reversals Understanding Our Approach: High-Probability Reversals with Price & Time Analysis
Hello Fellow Traders!
We often get asked about the core principles behind our analysis here on TradingView. Today, we want to share a key part of our methodology: how we combine Price Analysis and Time Analysis to pinpoint potentially high-probability reversal signals in the market.
Our goal isn't just about finding any setup, but finding setups where the odds seem stacked more favorably for a potential trend change. We do this by looking for confluence – where different factors align.
1. Price Analysis: Finding Where the Market Might Turn
What it is: This is about identifying significant price levels on the chart. Think of these as important zones, not just single lines.
How we use it:
Support & Resistance: We look for historical areas where price has repeatedly bounced off (support) or struggled to break through (resistance). The stronger and more tested the level, the more significant it becomes.
Price Action Clues: We watch how price behaves when it reaches these key levels. Are there strong rejection candles (like pin bars or engulfing patterns)? Is momentum slowing down? These clues tell us if buyers or sellers are stepping in or losing control.
2. Time Analysis: Finding When the Market Might Turn
What it is: This adds the dimension of time to our price analysis. Markets often move in cycles or react around specific time points.
How we use it:
Timing Cycles: We look for potential cycles or rhythmic patterns in price swings. Sometimes, trends tend to exhaust themselves after a certain duration.
Time Convergence: We pay close attention when price approaches a key Price Level (from step
1) around a potentially significant Time point (e.g., end of a known cycle, specific session timing, alignment with time-based indicators if used).
The Synergy: Combining Price & Time for High-Probability Signals
The real power in our approach comes when Price and Time align.
Imagine price reaching a major historical resistance level (Price Analysis).
Now, imagine this happens exactly when a known time cycle is expected to complete (Time Analysis).
This convergence signals a potentially higher probability reversal point than if only one factor was present. It tells us that where the market is and when it got there are both significant.
How You Can Apply This Concept:
Identify Key Levels: Mark major support and resistance zones on your charts.
Observe Time: Become aware of market timing – session opens/closes, news events, or potential cyclical patterns you observe.
Look for Confluence: Wait for price to test a strong level around a potentially significant time point.
Seek Confirmation: Always look for confirmation signals (like candlestick patterns or divergence) at these points of confluence before considering any action.
Important Note: Trading involves significant risk. This methodology aims to identify higher probability setups, but no method guarantees success. Always use proper risk management and conduct your own analysis before making any trading decisions. This is shared for educational purposes.
We hope this gives you a clearer insight into our analysis process! Follow us here on TradingView to see how we apply these concepts in our regular updates. Feel free to ask questions in the comments – we're all here to learn together.
Want to Level Up?
Join Shunya Trade’s Mentoring Program to master these strategies and sharpen your technical analysis skills.
Trade safely!
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Here few Historical chart study's
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PriceAnalysis, TimeAnalysis, PriceAction, TechnicalAnalysis, SupportResistance, CandlestickPatterns, ChartPatterns, MarketStructure, TimeCycles, MarketTiming, TradingSignals, ReversalTrading, TradingStrategy, MarketAnalysis, TradingView, Forex, Stocks, Crypto, Trading, Investing, DayTrading, SwingTrading, MarketCycles, FibonacciTime, Gann, TradingLevels, PricePatterns
EUR/USD- Elliott Wave + Smart Money Concepts (SMC)SMC Insight
Supply Zone Marked: Between 1.1500 – 1.2000.
Price is heading toward the supply zone.
On the right visual, schematic shows:
Liquidity build-up below equal highs.
Possible liquidity grab just above the supply zone.
Expect reaction or reversal around that supply.
---
Trade Bias
Short-term: Bullish (momentum and structure are up).
Long-term: Watch for reaction at the 1.1500–1.2000 zone. This could be a major sell zone if price shows rejection/mitigation signs
The Ultimate Guide to Smart Money ReversalsLet’s cut to it. Most retail traders get caught chasing moves that were never meant for them. They’re entering late, reacting to structure breaks without context, or fading moves without understanding what’s really happening behind the price.
If you're trying to trade like smart money on the reversal, at the turn then you need to know when the game is flipping. That’s where the Market Structure Shift (MSS) comes in. But not just any MSS. I'm talking about MSS that follow a liquidity sweep and are driven by real displacementnot weak candles, not in consolidation. Real intent. Real shift.
Here’s how I approach it.
What Actually Counts as a Market Structure Shift?
Everyone talks about market structure higher highs, lower lows, etc. But structure breaks alone don’t mean anything. A valid MSS isn’t just about breaking a swing point. It’s why it broke and how it broke that matters.
I only consider a shift valid when three things are in place:
Liquidity has been taken (above a high or below a low).
The shift is caused by a displacement candle that clearly shows urgency.
The move happens with strength, not during chop or consolidation.
If you don’t have all three, it’s just noise.
Liquidity Comes First
Everything starts with a liquidity sweep. That’s the trap.
Price has to reach into a pool of liquidity usually above equal highs, clean swing highs, or below clean lows to grab those orders, and reject. That rejection is key. It shows smart money is offloading positions into retail breakouts or stop hunts.
Without a sweep, I don’t care what breaks. No liquidity = no reversal setup.
So the first thing I do is mark out obvious liquidity levels. Equal highs, equal lows, trendline touches anywhere retail is likely to have their stops sitting. That’s where the fuel is.
Then Comes Displacement
After the sweep, I want to see displacement a sharp, aggressive move in the opposite direction.
Not a weak pullback. Not a slow grind. A real candle that shows intent.
Displacement is always obvious. You’ll get a clean candle, often engulfing multiple others, that breaks structure and leaves behind an imbalance what we call a Fair Value Gap (FVG). That imbalance is the signature of smart money hitting the market hard enough to leave a gap in the order flow.
If the candle’s weak, or if it happens during consolidation, I skip it. Displacement is what separates real reversals from fakeouts.
Here is a clean example of what it should look like.
Confirming the Shift
Once displacement confirms intent, I check if it actually broke structure.
That means:
In an uptrend, I want to see price break a previous higher low after sweeping a high.
In a downtrend, I want price to break a lower high after sweeping a low.
When that happens, that’s your MSS. Price has grabbed liquidity, shown displacement, and broken a key point in the structure. At that point, we’ve got a confirmed shift in control.
Entries, Stops, and Targets
Here’s how I trade it.
After the MSS, I wait for price to pull back into the origin of the move. Usually, that’s going to be one of two things:
The Fair Value Gap (imbalance left by the displacement candle)
Or the MSS line itself (Shown on the example)
Once price comes back into that zone, that’s where I’m interested in getting in.
Stop loss always goes just above the high (for shorts) or below the low (for longs) of the displacement candle that caused the MSS. You’re giving it room to breathe, but keeping it tight enough to protect capital.
Targets are straightforward: go for the next pool of liquidity. That means swing lows (sell-side) if you’re short, or swing highs (buy-side) if you’re long. That’s where price is most likely to be drawn next.
A Clean Bearish Example
Let’s say price is trending up, putting in higher highs and higher lows. Then it takes out a recent swing high liquidity swept.
Immediately after that, a strong bearish candle drops and breaks the most recent higher low. That candle leaves an imbalance behind—perfect.
Now I’ve got:
✅ Liquidity sweep
✅ Displacement
✅ Break of structure
I mark out the FVG / MSS line, wait for price to retrace back into it, and enter the short. My stop goes above the displacement candle high. My target? The next clean swing low. That's the next spot where stops are resting where the market is drawn.
A Few Things to Watch Out For
This method works, but only if you’re strict about the rules.
Don’t take MSS setups in consolidation. Wait for clean, impulsive breaks.
If the shift happens without displacement or imbalance, skip it. It’s not clean.
Be realistic with stops. Tight is good, but don’t choke the trade. Give it the structure it needs.
The biggest mistake I see? Traders jump in too early trying to front-run the shift before displacement confirms it. Let the story unfold. Wait for the sweep. Wait for the candle that slaps the market and breaks structure. That’s your edge.
As shown here, the first "MSS" is invalid and not the A+ setup you're looking for.
Final Thoughts
Trading smart money reversals is about reading intent. You’re not just looking at price, you’re understanding why it moved the way it did.
When you combine a liquidity grab, displacement, and a break in structure, you're aligning with institutional activity. You're trading at the turn when smart money flips the script and leaves everyone else chasing.
This isn’t about trading every break. It’s about knowing which breaks matter.
Keep it clean. Stay patient. Follow the flow.
__________________________________________
Thanks for your support!
If you found this guide helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀
Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈
Supply and Demand by Thapelo Consolidation and Expansion
The markets either do one of two things: Price either consolidates or expands.
Consolidation: a period in the market where price is moving calm which moves in a range known as the dealing range. We will be able to identify a clear high and low to this range.
You have probably heard of the term range bound, ranging, or consolidating. This means that price is typically staying in one area, and just moving sideways, rather than up or down.
The range can be tight (meaning a spread of only a few pounds), or the range can be loose (meaning a spread of hundreds of thousands of pounds from range high to low. This partly will come down to the timeframe implemented.
Expansion: a period in the market where price is moving aggressively in one direction or the other. We will see an impulsive move to the upside, or an impulsive move to the downside, where price will give us large candle bodies or wicks. This is known as expansion.
Do You Know the Difference Between an Indicator and a Strategy?A lot of traders jump into Pine Script or apply a script on TradingView without understanding one key difference:
Indicators and Strategies are not the same — especially when it comes to real-time performance and backtesting.
---
What’s the Key Difference?
Indicators
Indicators are visual tools designed to help you analyze price action in real time . They do not track trade performance or simulate trades automatically.
You can use them to:
- Generate signals
- Stack confluences
- Set custom alerts
- Overlay custom visuals on charts
Best for: Chart analysis, signal confirmation, and manual or semi-automated alerts.
---
Strategies
Strategies are built for backtesting . They simulate how your trade logic would have performed historically, using `strategy.entry`, `strategy.exit`, and related functions.
They automatically calculate:
- Hypothetical P&L
- Win/loss ratio
- Drawdowns
Best for: Validating trade logic, optimizing entries and exits, performance tracking.
---
But Here’s the Catch
Many traders assume that once a strategy backtest looks good, it will behave exactly the same in live trading. This assumption can lead to poor decision-making.
❌ Why Forward Testing Isn't Perfect
When you set alerts based on a strategy, you're asking a backtest engine to behave like a live trading engine — and that’s not what it was designed for.
TradingView strategies:
- Only execute on candle close
- Do not simulate intrabar price action
- Do not account for slippage
- Do not reflect real-time market volatility
So:
- Your strategy alert may fire late compared to actual price movement
- Your SL/TP may be hit within a candle, but the strategy won’t know until close
- You may see better backtest results than what happens live
---
Takeaway
If you're using strategies with alerts, it’s critical to understand these constraints:
TradingView’s strategy engine is optimized for historical testing, not for real-time execution. It provides insight into the validity of your logic — but it’s not a replacement for a live execution engine.
Best Practice Recommendations:
- Always forward-test on a demo or paper account first
- Monitor how alerts perform in real-time
- Be ready to adjust parameters based on your asset and timeframe
If you need better responsiveness or real-time adaptability, consider using indicators to generate your alerts. Indicators react to price in real time and are often more suitable for live market conditions.
---
Final Note
Some strategies are built with these limitations in mind. They can still be useful in real-time trading as long as you're aware of how they work.
Transparency is key. Backtesting is a guide, not a guarantee.
Trade smart, stay informed.
Feel free to reach out if you have questions or insights to share!
Bitcoin, Gold, S&P 500 and InflationBitcoin, Gold, S&P 500 and Inflation
This is a 3 year view (2022 - 2025 to date), 1 week comparison chart of Bitcoin, Gold, S&P 500 and US cumulative rate of inflation. The most interesting part of this analysis to me is that the S&P 500 bounced off the cumulative rate of inflation slope. I did not know that until after I set up the comparison.
Gold = +80%
BTCUSD = +50%
S&P 500 = +19%
US cumulative rate of inflation:
2022 = +6.5%
2023 = +3.4%
2024 = +2.9%
3 yr = +10.8%
2025 = +2.4% forecast
Best Technical Indicator to Identify Order Block & Imbalance
Your ability to correctly identify Order Blocks on a price chart is essential for profitable trading Smart Money Concept.
In this article, I will show you a great technical indicator that will help you to spot Order Blocks on any financial market.
First, in brief, let me give you my definition of Order Block.
The problem is that in SMC trading there is no one single definition of that and many traders interpret it differently.
To me, an Order Block is a specific zone on a chart from where a strong price movement initiates and where a significant imbalance between supply and demand occurs .
This imbalance should strictly originate from a liquidity zone.
That definition implies that in order to identify an Order Block zone, one should learn to properly identify the imbalance and liquidity zones.
And again, there is no precise definition of an imbalance on a price chart. To me, a bullish imbalance is a formation of a bullish engulfing candle - the one that engulfs a range of previous bearish candle with its body.
Above is the example of a valid Order Block on GBPUSD.
A bearish imbalance is a formation of a bearish engulfing candle - the one that engulfs a range of a previous bullish candle with its body.
Above, you can see the example of an Order Block on USDCAD, based on a bearish imbalance.
There is one technical indicator that will help you to recognize such Order Blocks. It is called " All Candlestick Patterns" on TradingView.
Open settings of the indicator and make it show ONLY Engulfing Candles and choose "No Detection" in "Detect Trends Based on".
After that, hide the indicator and first, Identify the liquidity zones on a chart and wait for a test of one of these zones.
Here is a test of a liquidity zone on NZDUSD on an hourly time frame.
After that, turn on the indicator, and wait for its signal.
You can see that after some time, the price formed a bullish imbalance with a bullish engulfing candle. The indicator highlight that candle.
The Order Block zone will be based on the lowest low of 2 candles and the high of a bearish candle preceding the imbalance.
One more example. We see a test of a significant liquidity zone on EURAUD on a 4H time frame.
We turn on the indicator and look for a signal.
A bearish imbalance is formed and the indicator immediately notifies us.
An Order Block Zone in that case will be the area based on the highest high of 2 candles and the low of a bullish candle preceding the imbalance .
Of course, there will be the rare cases when the indicator will miss the imbalances. But while you are learning to recognize Order Blocks, this indicator will definitely help you a lot!
Thank you for reading!
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Trendlines and broken trendlines resultsTrendlines are one of the major supports or resistances and on this Bitcoin chart we can see few examples which price react well to them and start to pump from green trendlines and sometimes dump from red trendlines and it is easy to draw one trendline ----> simple like drawing support line this time try to find support line which is Diagonal and one or two touch with this trendline you can find next support which is third touch and you can set your buy there like below example:
also sometimes trendline broke and their support turn to resistance and after retest of breakout you can enter sell like example:
there are so many rules about trendline like when it can break or after how many touches trendline lose it's power and ... we can discuss in comments more about them so ask any questions there and lets discuss.
Also currently if we have a valid breakout of red trendline to the upside for Bitcoin price can easily pump to 90K$ at least.
DISCLAIMER: ((trade based on your own decision))
<<press like👍 if you enjoy💚
The Charts Wall Street Watches – And Why Crypto Should Too📉 Crisis or Rotation? Understanding Bonds Before the Bitcoin Reveal 🔍
Hi everyone 👋
Before we dive into the next major Bitcoin post (the 'Bitcoin Reveal' is coming up, yes!), let's take a moment to unpack something critical most crypto traders overlook — the world of bonds .
Why does this matter? Because the bond market often signals risk... before crypto even reacts.
We're going to walk through 4 charts I've posted recently — not the usual BTC or altcoin setups, but key pieces of the credit puzzle . So here’s a simple breakdown:
1️⃣ BKLN – Leveraged Loans = Floating Risk 🟠
These are loans to risky companies with floating interest rates.
When rates go up and liquidity is flowing, these do well.
But when the economy weakens? They’re often the first to fall.
📌 Key level: $20.31
This level held in COVID (2020), the 2022 bank scare... and now again in 2025.
⚠️ Watch for a breakdown here = real credit stress.
Right now? Concerned, but no panic.
2️⃣ HYG – Junk Bonds = Risk Appetite Tracker 🔴
Junk bonds are fixed-rate debt from companies with poor credit.
They pay high interest — if they survive.
When HYG bounces, it means investors still want risk.
📌 Fear line: 75.72
Held in 2008, 2020 (COVID), and again now.
Price rebounded — suggesting risk appetite is trying to return .
3️⃣ LQD – Investment Grade = Quality Credit 💼
LQD holds bonds from blue-chip companies like Apple, Microsoft, Johnson & Johnson.
These are lower-risk and seen as safer during stress.
📊 Chart still shows an ascending structure since 2003, with recent pressure on support.
📌 Support: 103.81
Holding well. Rebound looks solid.
Unless we break 100, this says: "No panic here."
4️⃣ TLT – U.S. Treasuries = Trust in the Government 🇺🇸
This is the BIG one.
TLT = Long-term U.S. bonds (20+ yrs) = safe haven assets .
But since 2022, that trust has been visibly broken .
A key trendline going back to 2004 was lost — and is now resistance.
📉 Price is in a clear descending channel .
📌 My expectation: One final flush to $76 or even $71–68
…before a potential macro reversal toward $112–115
🔍 The Big Picture – What Are Bonds Telling Us?
| Chart | Risk Level | Signal |
|--------|------------|--------|
| BKLN | High | Credit stress rising, but support holding |
| HYG | High | Risk appetite bouncing at a key level |
| LQD | Medium | Rotation into quality, no panic |
| TLT | Low | Trust in Treasuries fading, support being tested |
If BKLN breaks $20...
If HYG fails to hold 75.72...
If LQD dips under 100...
If TLT falls to all-time lows...
That’s your crisis signal .
Until then — the system is still rotating, not collapsing.
So, Should We Panic? 🧠
Not yet.
But we’re watching closely.
Next: We add Bitcoin to the chart.
Because if the traditional system starts breaking... 🟧 Bitcoin is the alternative.
One Love,
The FXPROFESSOR 💙
📌 Next Post:
BTC vs Treasuries – The Inversion Nobody Saw Coming
Because if the system is shaking… Bitcoin is Plan B.
Stay ready.