What is V pattern? V pattern is a basic trading pattern which happens when market gets chaotic!
It has a sharp decline(left angle) and a sharp recovery (right angle)
Most of the times, V patterns won't change anything and their effect on market is mostly nothing!
The trends will continue after these patterns are crafted!
for example look at the BINANCE:BNBUSDT Chart and you can see that the price was pretty stable. after a sharp deny and a sharp recovery, the price shall return to the ranging stat which It was in!
⚠️ Disclaimer:
This is not financial advice. Always manage your risks and trade responsibly.
👉 Follow me for daily updates,
💬 Comment and like to share your thoughts,
📌 And check the link in my bio for even more resources!
Let’s navigate the markets together—join the journey today! 💹✨
Trend Analysis
Pattern Identification ExerciseHere I run through an exercise I first started carrying out around 4 years ago. It is a brilliant tool to help train yours eyes to spot patterns within the market, log the data across multiple different instruments and find specific characteristics with that instrument.
The importance behind carrying out an exercise like this is training your lens to spot these in the live markets, and also stacking your confidence so when you see these develop you are able to approach them in the best way possible.
Any questions just drop them below 👇
How To Locate Pivot Points Easily Using Free IndicatorsHere are some helpful links for all of you...
My indicators on Trading View, I don't use that many.
Bad Ass B-Bands by WyckoffMode (follow this guy on all platforms)
Chart Champions CC Pocket
VuManChu Cipher B
Off of Trading View
I use BookMap for order flow data. This is where I can pick out exact locations of order walls i.e. pivot points.
My Tutorial on how to easily find squeezes
Here are links to my watchlists (some new ones are missing from Coinbase, add new ones manually)
Coinbase
tradingview.com/watchlists/74158386/
Gemini
tradingview.com/watchlists/74158590/
Kraken
tradingview.com/watchlists/96996184/
Gann Reversals: 144-225 Time Cycle & Fibonacci StrategyMastering Gann Market Reversals The 144 - 225 Time & Gann Price Cycle + Fibonacci Trading Strategy.
We dive deep into a powerful trading strategy that combines Gann’s 144-225 time and price cycles with Fibonacci retracement levels to predict market reversals with high accuracy. We explore how to identify key turning points, confirm entries using price action, and develop a well-planned exit strategy to maximize profits.
Whether you're a beginner or an experienced trader, this method will provide you with a structured approach to understanding price movements and timing your trades more effectively. Apply these principles to your trading routine and start seeing improvements in your decision-making and trade execution.
Learn how to master Gann market reversals using the 144-225 time cycle and Gann price synchronization, combined with Fibonacci trading strategies. This powerful approach helps traders identify key turning points, align time and price for precision entries, and enhance market predictions with Fibonacci confluence.
EURUSD CLS range Model 2 entry. High riskHey Traders!!
Watch my analysis for the model entry 2, its continuation setup of this previous analysis.
Feel free to comment below—I'm about fostering constructive, positive discussions!
🧩 What is CLS?
CLS represents the "smart money" across all markets. It brings together the capital from the largest investment and central banks, boasting a daily volume of over 6.5 trillion.
✅By understanding how CLS operates—its specific modes and timings—you gain a powerful edge with more precise entries and well-defined targets.
🛡️Follow me and take a closer look at Models 1 and 2.
These models are key to unlocking the market's potential and can guide you toward smarter trading decisions.
📍Remember, no strategy offers a 100%-win rate—trading is a journey of constant learning and improvement. While our approaches often yield strong profits, occasional setbacks are part of the process. Embrace every experience as an opportunity to refine your skills and grow.
Wishing you continued success on your trading journey. May this educational post inspire you to become an even better trader!
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave Hunter ⚔
3 Tools for Timing PullbacksPullbacks in trends can offer some of the highest quality trading opportunities, but not all pullbacks are equal. Some offer high-probability setups, while others are warning signs of deeper corrections or trend reversals.
So how do you time your entry with confidence? Here are three effective tools to help you navigate pullbacks with precision.
1. Keltner Channels: Spotting Pullbacks Within Volatility
Keltner Channels are a volatility-based tool that adapts to changing market conditions. They consist of a central moving average with two outer bands—typically set at a multiple of the average true range (ATR). These bands expand and contract as market volatility changes.
How to Use It:
When price moves into or beyond the Keltner Channel’s outer bands, it signals that momentum is outpacing short-term volatility. This surge in momentum provides an ideal setup to anticipate a pullback.
For timing entries, a steady retracement back to the basis line (middle band) often presents the best opportunity to join the trend. The strongest pullbacks tend to be controlled, showing reduced momentum compared to the initial move. In contrast, a deep retracement all the way to the opposite band suggests strong counter-trend pressure, which could indicate a shift in market dynamics rather than a simple pullback.
Example: Gold Daily Candle Chart
In this example, we see gold pushing into the upper Keltner Channel, retracing to the basis line, finding support, and then resuming its uptrend. This pattern repeated multiple times during last year’s bull run, offering traders several high-probability entry points.
Past performance is not a reliable indicator of future results
2. Anchored VWAP: Confirming Institutional Interest
The Anchored Volume Weighted Average Price (VWAP) is a tool that’s widely used by institutional traders. It tracks the average price a market has traded at, weighted by volume, over a specific period. The key difference with Anchored VWAP is that you can "anchor" it to a significant price point (e.g., a breakout or major low), giving you a dynamic reference point for future price action.
How to Use It:
Anchor the VWAP to a key price level, like the low of the trend or a breakout point.
A pullback to the anchored VWAP is often viewed as a high-probability area for entry. This is because institutional traders may be accumulating positions at this level, making it an important support or resistance zone.
When the price pulls back to the VWAP and starts to hold above it, it suggests that demand is outweighing supply, making it a potentially good place to enter.
Example: USD/JPY Daily Candle Chart
Having it highs in November, USD/JPY underwent a steady pullback in December, forming a clear base of support at the VWAP anchored to the September trend lows.
Past performance is not a reliable indicator of future results
3. Fibonacci Retracement: Measuring the Depth of the Pullback
The Fibonacci retracement tool is one of the most popular tools for measuring the depth of a pullback. It uses horizontal lines at key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, etc.) to show potential support and resistance areas during a retracement.
How to Use It:
Identify the high and low of a trending move and apply the Fibonacci retracement tool to measure the distance of the pullback.
Traders should be wary of applying too many Fib levels to their chart, so we would favour focusing on just the 38.2%, 50%, and 61.8%. Never assume that Fib levels will hold, wait for price action-based evidence form confirmation.
If price action holds at one of these levels and begins to reverse, it suggests that the trend is likely to resume. The deeper the pullback, the more cautious you should be, but price patterns that align with the 61.8% level should still be considered as potential entry points.
Example: S&P 500 Daily Candle Chart
We can see from this example that the 38.2% - 50% Fibonacci retracement zone was a useful tool for timing pullbacks on the S&P 500.
Past performance is not a reliable indicator of future results
Bringing It All Together
The best time to enter a pullback is when multiple tools align. For instance:
A pullback to Keltner Channel's outer band that also aligns with a Fibonacci level could signal a strong buy zone.
Anchored VWAP and Fibonacci levels acting together as support can further confirm the validity of the pullback.
By combining these tools, you'll have a more comprehensive understanding of where the market is likely to resume its trend, increasing your chances of a successful entry.
Example: EUR/USD Daily Candle Chart
Here we can see EUR/USD breaks lower – down into the lower Keltner channel. This is followed by a pullback that end up reversing at a confluent zone that includes the 38.2% Fibonacci retracement level, the basis of the Keltner channel, and the VWAP anchored to the highs.
Past performance is not a reliable indicator of future results
Summary:
Timing pullbacks effectively can make a huge difference in trading success, and using the right tools helps separate high-probability setups from lower quality trades. Keltner Channels highlight volatility-driven pullbacks, Anchored VWAP identifies levels where institutions may be active, and Fibonacci retracements offer a structured approach to measuring pullback depth. When these tools align, they create confirmation zones that improve trade timing and risk management.
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.
Apple’s Stock Crash: Panic, Predictions & Lessons🔰 Greetings, Traders & Investors!
Welcome to this insightful deep dive into one of the most dramatic moments in stock market history—the Apple stock crash of September 29, 2000. Whether you're a seasoned trader or just starting your journey in the financial markets, understanding past market events is crucial to making informed decisions today.
In this publication we’ll explore why Apple lost 51% of its value in a single day, the market's reaction before and after the crash, and most importantly, the key lessons modern investors can learn from this event. Markets are unpredictable, but history often repeats itself in different forms. By analyzing past stock crashes, we can better prepare for future volatility.
The Apple Stock Crash of September 29, 2000: Lessons for Today’s Investors-:
On September 29, 2000, Apple Inc. (AAPL) experienced a catastrophic stock crash, plunging nearly 51% in a single day. This massive drop shocked investors, raising concerns about the tech industry’s stability. The event remains an essential case study for understanding market volatility, investor psychology, and risk management.
Let’s explore why Apple’s stock crashed, how analysts and investors reacted, and the lessons today's traders can learn from it.
📉 Why Did Apple Stock Crash?
Several factors contributed to this sudden collapse, ranging from earnings warnings to broader market conditions.
🔸 Earnings Warning & Slowing Demand
On September 28, 2000, Apple issued an earnings warning after the market closed, stating that revenue and profit would be significantly lower than expected. The main reasons were:
Lower-than-expected demand for Power Mac G4 computers.
Weak back-to-school sales of iMacs.
Overstocking of components, leading to inventory issues.
This negative news spooked investors, leading to a massive sell-off the next day.
🔸 Tech Bubble’s Bursting Effect
The dot-com bubble was already deflating in 2000. Many tech stocks were overvalued, and any negative news led to extreme reactions. Apple's warning came at a time when investors were already nervous about the sustainability of tech sector growth.
🔸 Investor Panic & Mass Sell-off
Once Apple’s warning was announced, institutional investors dumped millions of shares, triggering a panic. Retail investors followed, leading to a downward spiral.
📊 Market Predictions & Reactions
🔹 Before the Crash: Optimism in the Market
Before the warning, analysts were bullish on Apple, predicting strong sales for the holiday season. The stock had been performing well, driven by the success of the iMac G3 and the upcoming release of Mac OS X.
🔹 After the Crash: Chaos & Downgrades
The aftermath was brutal:
Apple stock fell 51%, wiping out billions in market value.
Analysts downgraded Apple, slashing price targets.
Investors lost confidence, and Apple became a "high-risk" stock overnight.
However, long-term investors saw this crash as an opportunity to buy shares at a lower price.
💡 Lessons for Today’s Investors
✅ 1. Market Sentiment Can Change Overnight
Apple was seen as a rising star, yet in just 24 hours, it lost half its value. This teaches us that market sentiment is fragile, and even strong companies can face extreme volatility.
✅ 2. Don't Ignore Earnings Warnings
When a company lowers its earnings expectations, it often signals deeper issues. Investors should analyze the warning carefully before making any investment decisions.
✅ 3. Panic Selling Leads to Missed Opportunities
After the crash, Apple recovered and became one of the most valuable companies in history. Investors who panicked and sold at the bottom missed the long-term gains.
✅ 4. Diversification is Key
Many investors had put too much of their portfolio into tech stocks. When Apple and other tech companies crashed, they suffered huge losses. A diversified portfolio helps reduce such risks.
✅ 5. Crashes Create Buying Opportunities
Legendary investors like Warren Buffett always say: "Be greedy when others are fearful." Those who bought Apple stock at its low in 2000 saw massive gains in the coming years.
Conclusion-::
The Apple stock crash of September 29, 2000, serves as a valuable lesson for investors today. Stock markets are unpredictable, and even the best companies can experience short-term downturns. However, by staying rational, avoiding panic selling, and focusing on long-term growth, investors can turn a market crash into an opportunity.
Best regards- Amit
Please boost this idea if you like it.
Sharing a strategyFor my scalping or Intraday trade, I created this pine script combining various indicator (namely the famous Alphatrend by @KivancOzbilgic, Previous Day Close and 52WeeksHigh/Low) into one indicator.
If price goes above the PDC and Alphatrend is a buy then I will make quick long trade. If price goes below the PDC and Alphatrend is a sell then I will make quick short trade. I added a percentage based on PDC to give me where I need to put my stoploss. Not really important as I always have proper risk reward ratio but it comes handy most of the time.
ACCUMULATION MANIPLUTION DISTRIBUTION EXPLAINED SMCHere i explained how you can use accumulation manipulation distribution trade . As a smart money concept trader you need to under when price is ranging and when is manipulating so you can take advantage of distribution. Using this can maximize your profit and reduce loss.
Volume Spread Analysis (VSA) with Fibonacci on Large Candles Volume Spread Analysis (VSA) with Fibonacci on Large Candles (Bullish & Bearish)
If you spot a large candle with high volume, whether bearish or bullish, you can use Fibonacci retracement on the candle itself to determine potential reversal or continuation zones. Here’s how to apply it in both scenarios:
1️⃣ Large Bearish Candle (Bearish Bar)
📉 (Red candle with high volume closing near the low)
How to Identify a Bearish Candle?
✅ The candle has a large body and closes near the low (strong selling signal).
✅ The volume is significantly higher than previous candles → Institutional Selling (Smart Money Selling).
✅ If volume is high but the candle doesn’t close at the low, it could indicate hidden buying (stopping volume).
How to Draw Fibonacci on a Bearish Candle?
1️⃣ Identify the high and low of the bearish candle:
• High = The top of the candle.
• Low = The bottom of the candle.
• This represents the range of the selling pressure in the market.
2️⃣ Draw Fibonacci levels between the high and low:
• 0% = Low (Bottom of the bearish bar).
• 100% = High (Top of the bearish bar).
• Key levels to watch:
• 38.2% → Weak retracement, market may continue down.
• 50% → Balance point, strong resistance possible.
• 61.8% → Potential reversal zone; if price fails to break it, the downtrend may continue.
• 78.6% → If price breaks this, trend may change.
3️⃣ If the market continues downward, check Fibonacci extensions:
• 127.2% & 161.8% → Downside targets if the bearish trend continues.
Confirming Volume Spread Analysis (VSA) for Selling
✅ Sell Entry: If the price retraces to 38.2% - 50% and rejects with weak volume.
❌ Stop Loss: Above 61.8% or the last swing high.
🎯 Targets:
• Break of the large candle’s low.
• Fibonacci extensions 127.2% or 161.8%.
2️⃣ Large Bullish Candle (Bullish Bar)
📈 (Green candle with high volume closing near the high)
How to Identify a Bullish Candle?
✅ The candle has a large body and closes near the high → Strong buying signal.
✅ The volume is significantly higher than previous candles → Institutional Buying (Smart Money Buying).
✅ If volume is high but the candle doesn’t close at the high, it could indicate supply absorption.
How to Draw Fibonacci on a Bullish Candle?
1️⃣ Identify the high and low of the bullish candle:
• High = The top of the candle.
• Low = The bottom of the candle.
• This represents the range of the buying pressure in the market.
2️⃣ Draw Fibonacci levels between the high and low:
• 0% = High (Top of the bullish bar).
• 100% = Low (Bottom of the bullish bar).
• Key levels to watch:
• 38.2% → Shallow pullback, market may continue up.
• 50% → Balance point, potential bounce area.
• 61.8% → Strong support zone; if price holds with weak volume, an uptrend may continue.
• 78.6% → If broken, trend may reverse.
3️⃣ If the market continues upward, check Fibonacci extensions:
• 127.2% & 161.8% → Upside targets if the bullish trend continues.
Confirming Volume Spread Analysis (VSA) for Buying
✅ Buy Entry: If price retraces to 38.2% - 50% and bounces with high volume.
❌ Stop Loss: Below 61.8% or the last swing low.
🎯 Targets:
• Break of the large candle’s high.
• Fibonacci extensions 127.2% or 161.8%.
🎯 Quick Summary: When to Enter?
🔴 Sell:
• Large red candle, price retraces to 38.2% - 50% with weak volume.
• Stop loss above 61.8%, target at 127.2% & 161.8% extensions.
🟢 Buy:
• Large green candle, price retraces to 38.2% - 50% with strong volume.
• Stop loss below 61.8%, target at 127.2% & 161.8% extensions.
How Can You Trade Energy Commodities?How Can You Trade Energy Commodities?
Energy trading connects global markets to the vital resources that power economies—oil and natural gas. These commodities aren’t just essential for industries and homes; they’re also dynamic assets for traders, influenced by geopolitics, supply, and demand.
Whether you’re exploring benchmarks like Brent Crude and WTI or understanding natural gas markets, this article unpacks the essentials of energy commodities and how to trade them.
What Is Energy Trading?
Energy trading involves buying and selling energy resources that power industries and households worldwide. These commodities are essential for modern life and are traded in global markets both as physical products and financial instruments.
Energy commodities include resources like oil, natural gas, gasoline, coal, ethanol, uranium, and more. In this article, we’ll focus on the two that traders interact with the most: oil and natural gas.
Oil is often divided into benchmarks like Brent Crude and WTI, which set global and regional pricing standards. These benchmarks represent crude oil that varies in quality and origin, impacting its trade and refining applications.
Natural gas, on the other hand, plays a critical role in electricity generation, heating, and industrial processes. It’s traded in various forms, including pipeline gas and liquefied natural gas (LNG), offering flexibility in transportation and supply.
What makes energy commodities unique is their global demand and sensitivity to external factors. Weather patterns, geopolitical developments, and economic activity all heavily influence their prices. For traders, this creates a dynamic market with potential opportunities to take advantage of price movements.
Additionally, energy commodities can act as economic indicators. A surge in oil prices, for example, might reflect growing demand from expanding industries, while a drop could indicate reduced consumption. Understanding these resources isn’t just about their practical use—it’s about grasping their role in shaping global markets and financial systems.
Oil: Brent Crude vs WTI
Brent Crude and WTI (West Texas Intermediate) are the world’s two leading oil benchmarks, shaping prices for a resource critical to industries and economies. Despite both being types of crude oil, they differ significantly in origin, quality, and market influence.
Brent Crude
Brent Crude is a globally recognised benchmark for oil pricing, primarily sourced from fields in the North Sea. Its importance lies in its role as a pricing reference for about two-thirds of the world’s oil supply. What makes Brent unique is its lighter and sweeter quality, meaning it has lower sulphur content and is easier to refine into fuels like petrol and diesel.
This benchmark is particularly significant in European, African, and Asian markets, where it serves as a key indicator of global oil prices. Its value is heavily influenced by international demand, geopolitical events, and production levels in major exporting countries. For traders, Brent offers a window into global supply and demand trends, making it a critical component of energy markets.
West Texas Intermediate (WTI)
WTI, or West Texas Intermediate, is the benchmark for oil produced in the United States. Extracted primarily from Texas and surrounding regions, WTI is even lighter and sweeter than Brent, making it suitable for refining into high-value products like petrol.
WTI’s pricing is heavily tied to North American markets, with its hub in Cushing, Oklahoma, a key point for storage and distribution. Localised factors, like US production rates and storage capacity, often create price differentials between WTI and Brent, with Brent typically trading at a premium. For example, logistical bottlenecks in the US can drive WTI prices lower.
The main distinction between the two lies in their geographical focus: while Brent captures the international market’s pulse, WTI provides insights into North American energy dynamics. Together, they form the foundation of global oil pricing.
Natural Gas: A Growing Energy Commodity
Natural gas is a cornerstone of the global energy market, valued for its versatility and role in powering economies. It’s used extensively for electricity generation, heating, and industrial processes, with demand continuing to rise as countries seek cleaner alternatives to coal and oil.
This energy commodity comes in two primary forms for trade: pipeline natural gas and liquefied natural gas (LNG). Pipeline gas is delivered directly via extensive networks, making it dominant in regions like North America and Europe.
LNG, on the other hand, is supercooled to a liquid state for transportation across oceans, opening up markets that lack pipeline infrastructure. LNG trade has grown rapidly in recent years, with key suppliers like Qatar, Australia, and the US meeting surging demand in Asia.
Pricing for natural gas varies regionally, with hubs like Henry Hub in the US and the National Balancing Point (NBP) in the UK serving as benchmarks. These hubs reflect regional dynamics, such as weather conditions, storage levels, and local supply disruptions.
Natural gas prices are also closely tied to broader geopolitical and economic factors. For example, harsh winters often drive up heating demand, while conflicts or sanctions affecting major producers can create supply constraints. This volatility makes natural gas an active and highly watched market for traders, offering potential opportunities tied to shifting global conditions.
Price Factors of Energy Commodities
Energy commodity prices are influenced by a mix of global events, market fundamentals, and local factors. Here’s a breakdown of key elements driving oil and gas trading prices:
- Supply and Production Levels: Output from major producers like OPEC nations, the US, and Russia has a direct impact on prices. Supply cuts or surges can quickly move markets.
- Geopolitical Events: Conflicts, sanctions, or political instability in oil and gas-rich regions often disrupt supply chains, creating volatility.
- Weather and Seasonal Demand: Cold winters boost natural gas demand for heating, while summer driving seasons often increase oil consumption. Extreme weather events, such as hurricanes, can also damage infrastructure and reduce supply.
- Economic Growth: Expanding economies typically consume more energy, driving demand and prices higher. Conversely, a slowdown or recession can weaken demand.
- Storage Levels: Inventories act as a cushion against supply disruptions. Low storage levels often signal tighter markets, pushing prices up.
- Transportation Costs: The cost of shipping oil or LNG across regions impacts pricing, particularly for seaborne commodities like Brent Crude and LNG.
- Exchange Rates: Energy commodities are usually priced in dollars, meaning currency fluctuations can affect affordability in non-dollar markets.
- Market Sentiment: Traders’ expectations, shaped by reports like US inventory data or OPEC forecasts, can influence short-term price movements.
How to Trade Energy Commodities
Trading energy commodities like oil and natural gas involves navigating dynamic markets with the right tools, strategies, and risk awareness. Here’s a breakdown of how traders typically approach energy commodity trading:
Instruments for Energy Trading
Energy commodities can be traded through various instruments, typically through an oil and gas trading platform. For instance, FXOpen provides access to oil and gas CFDs alongside 700+ other markets, including currency pairs, stocks, ETFs, and more.
- CFDs (Contracts for Difference): Popular among retail traders because they allow access to global energy markets without owning the physical assets. They offer leverage and provide flexibility to take advantage of both rising and falling prices. Additionally, CFDs have lower entry costs, no expiration dates, and eliminate concerns like storage or delivery logistics. Please remember that leverage trading increases risks.
- Futures: These are contracts to buy or sell commodities at a future date. While they provide leverage and flexibility, trading energy derivatives like futures is often unnecessarily complex for the average retail trader.
- ETFs (Exchange-Traded Funds): Energy ETFs diversify exposure to energy commodities or related sectors.
- Energy Stocks: Shares in oil and gas companies provide indirect exposure to commodity price changes.
Analysis: Fundamental and Technical
Energy traders rely on two primary types of analysis:
- Fundamental Analysis: Examines supply and demand factors like OPEC decisions, weather patterns, geopolitical tensions, and economic indicators such as GDP growth or industrial output.
- Technical Analysis: Focuses on price charts, identifying patterns, trends, and important levels to anticipate potential market movements.
Combining these approaches can offer a broader perspective, helping traders refine their strategies.
Taking a Position and Managing Risk
Once traders identify potential opportunities, they decide on position size and duration based on their analysis. Risk management is critical to help traders potentially mitigate losses in these volatile markets. Strategies often include:
- Diversifying positions to reduce exposure to a single commodity.
- Setting limits on position sizes to align with overall portfolio risk.
- Monitoring leverage carefully, as it can amplify both potential returns and losses.
Risk Factors in Energy Commodities Trading
Trading energy commodities like oil and natural gas offer potential opportunities, but it also comes with significant risks due to the market's volatility and global nature.
- Price Volatility: Energy markets are highly sensitive to geopolitical events, economic shifts, and supply disruptions. This can lead to rapid price swings, particularly if the event is unexpected.
- Leverage Risks: Many instruments, like CFDs and futures, allow traders to use leverage, amplifying both potential returns and losses. Mismanaging leverage can lead to significant setbacks.
- Geopolitical Uncertainty: Events like conflicts in oil-producing regions or trade sanctions can disrupt supply chains and sharply impact prices.
- Market Sentiment: Energy prices can react strongly to reports like inventory data, OPEC announcements, or unexpected news, creating rapid shifts in sentiment and price direction.
- Overexposure: Focusing too heavily on a single energy commodity can magnify losses if the market moves against the position.
- Economic Factors: Slowing industrial activity or recession fears can reduce demand for energy, putting downward pressure on prices.
The Bottom Line
Energy commodities trading offers potential opportunities, driven by global demand and supply. Whether focusing on oil, natural gas, or other energy assets, understanding the fundamentals and risks is key to navigating this complex market. Ready to explore oil and gas commodity trading via CFDs? Open an FXOpen account to access advanced tools, competitive spreads, low commissions, and four trading platforms designed to support your journey.
FAQ
What Are Energy Commodities?
Energy commodities are natural resources used to power industries, homes, and transportation. Key examples include crude oil, natural gas, and coal. These commodities are traded globally as physical assets or through financial instruments like futures and CFDs.
Can I Make Money Trading Commodities?
Trading commodities offers potential opportunities to take advantage of price movements, but it also involves significant risks. The effectiveness of your trades depends on understanding of market dynamics, analyses of supply and demand, and risk management. While some traders achieve returns, losses are also common, especially in volatile markets like energy.
How Do I Start Investing in Energy?
Investing in energy typically begins with choosing an instrument like ETFs or stocks, depending on your goals and risk tolerance. Researching market fundamentals, monitoring geopolitical and economic factors, and practising sound risk management are essential steps for new investors.
What Is an Energy Trading Platform?
An energy trading platform, or power trading platform, is software that enables traders to buy and sell energy commodities. These energy trading solutions provide access to pricing data, charting tools, and news feeds, helping traders analyse markets and execute trades efficiently.
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.
PROFIT & LEARN: Confusion Clarity Bar Index (CCBI) Overview
The Confusion Clarity Bar Index (CCBI) is a TradingView indicator designed to measure market efficiency and volatility by combining the Efficiency Ratio with a Bollinger Bands %b calculation. This provides traders with a unique way to gauge price movement clarity versus confusion.
Key Features:
1. Efficiency Ratio (ER) Calculation:
• Measures the directional efficiency of price movements over a user-defined period.
• Compares absolute momentum to cumulative volatility to determine efficiency.
2. Bollinger Bands %b Calculation:
• Applies a Bollinger Bands overlay to the Efficiency Ratio.
• Standard deviation is set very low (default 0.0001) to capture subtle variations in efficiency.
3. Histogram Visualization:
• A column-style histogram represents %b values:
• Blue bars when %b is above 0.5 (greater market clarity).
• Red bars when %b is below 0.5 (higher market confusion).
4. Overbought & Oversold Levels:
• 1.0 (Overbought) → Market is exceptionally efficient.
• 0.0 (Oversold) → Market is highly inefficient or erratic.
• 0.5 (Neutral Level) → Middle ground between efficiency and confusion.
5. Background Highlighting:
• Green background when %b reaches 1.0 (strong market efficiency).
• Red background when %b reaches 0.0 (extreme market inefficiency).
How to Use It:
• Trend Confirmation:
• If bars remain blue, price movements are likely clear and efficient.
• If bars turn red, market uncertainty is increasing.
• Reversal Zones:
• A move towards 0.0 suggests indecision, potentially signaling trend exhaustion.
• A move towards 1.0 indicates strong directional momentum.
• Volatility Breakouts:
• A sharp shift in %b from low to high may indicate an upcoming trend breakout.
This indicator is best used in conjunction with momentum oscillators and volume indicators to confirm market conditions and potential trade setups.
what action I take when market open.This video will show you what I look at and my thought process when prepare for maket open.
Purpose of this video is to show how i make plan to take risk in first hour of market open.
example used is 5min&1min
1st. orb 5min
2nd. wait for breakout of 5min
3rd. use MA as (Support) of a trend to SCALP
ORB FIB levels i used is 0.5%(orb) 1.0% 1.5% 2.0%
Target is use orb breakout to target 2.0% fib levels as PriceTarget.
Sector Rotation Analysis: A Practical Tutorial Using TradingViewSector Rotation Analysis: A Practical Tutorial Using TradingView
Overview
Sector rotation is an investment strategy that involves reallocating capital among different sectors of the economy to align with their performance during various phases of the economic cycle. While academic studies have shown that sector rotation does not consistently outperform the market after accounting for transaction costs, it remains a popular framework for portfolio management.
This tutorial provides a step-by-step guide to analyzing sector rotation and identifying leading and lagging sectors using TradingView .
Understanding Sector Rotation and Economic Cycles
The economy moves through distinct phases, and each phase tends to favor specific sectors:
1. Expansion : Rapid economic growth with rising consumer confidence.
- Leading Sectors: Technology AMEX:XLK , Consumer Discretionary AMEX:XLY , Industrials AMEX:XLI
2. Peak : Growth slows, and inflation may rise.
- Leading Sectors: Energy AMEX:XLE , Materials AMEX:XLB
3. Contraction : Economic activity declines, and unemployment rises.
- Leading Sectors: Utilities AMEX:XLU , Healthcare AMEX:XLV , Consumer Staples AMEX:XLP
4. Trough : The economy begins recovering from a recession.
- Leading Sectors: Financials AMEX:XLF , Real Estate AMEX:XLRE
Step 1: Use TradingView to Monitor Economic Indicators
Economic indicators provide context for sector performance:
GDP Growth : Signals expansion or contraction.
Interest Rates : Rising rates favor Financials; falling rates benefit Real Estate.
Inflation : High inflation supports Energy and Materials.
Step 2: Analyze Sector Performance Using Relative Strength
Relative Strength RS compares a sector's performance against a benchmark index like the
SP:SPX This helps identify whether a sector is leading or lagging.
How to Calculate RS in TradingView
Open a chart for a sector TSXV:ETF , such as AMEX:XLK Technology.
Add SP:SPX as a comparison symbol by clicking the Compare ➕ button.
Analyze the RS line:
- If RS trends upward, the sector is outperforming.
- If RS trends downward, the sector is underperforming.
Using Indicators
e.g.: You may add the Sector Relative Strength indicator from TradingView’s public library. This tool ranks multiple sectors by their relative strength against SP:SPX
Additionally, you can use the RS Rating indicator by @Fred6724, which calculates the Relative Strength Rating (1 to 99) of a stock or sector based on its 12-month performance compared to others in a selected index.
Example
In early 2021, during economic recovery, AMEX:XLK 's RS rose above SP:SPX , signaling Technology was leading.
Step 3: Validate Sector Trends with Technical Indicators
Technical indicators can confirm sector momentum and provide entry/exit signals:
Moving Averages
Use 50-day and 200-day Simple Moving Averages SMA.
If a sector TSXV:ETF trades above both SMAs, it indicates bullish momentum.
Relative Strength Index RSI
RSI > 70 suggests overbought conditions; <30 indicates oversold conditions.
MACD Moving Average Convergence Divergence
Look for bullish crossovers where the MACD line crosses above the signal line.
Example
During the inflation surge in 2022, AMEX:XLE Energy traded above its 200-day SMA while RSI hovered near 70, confirming strong momentum in the Energy sector.
Step 4: Compare Multiple Sectors Simultaneously
TradingView allows you to overlay multiple ETFs on one chart for direct comparison:
Open AMEX:SPY as your benchmark chart.
Add ETFs like AMEX:XLK , AMEX:XLY , AMEX:XLU , etc., using the Compare tool.
Observe which sectors are trending higher or lower relative to AMEX:SPY
Example
If AMEX:XLK and AMEX:XLY show upward trends while AMEX:XLU remains flat, this indicates cyclical sectors like Technology and Consumer Discretionary are outperforming during an expansion phase.
Step 5: Implement Sector Rotation in Your Portfolio
Once you’ve identified leading sectors:
Allocate more capital to sectors with strong RS and bullish technical indicators.
Reduce exposure to lagging sectors with weak RS or bearish momentum signals.
Example
During post-pandemic recovery in early 2021:
Leading Sectors: Technology AMEX:XLK and Industrials AMEX:XLI
Lagging Sectors: Utilities AMEX:XLU
Investors who rotated into AMEX:XLK and AMEX:XLI outperformed those who remained in defensive sectors like AMEX:XLU
Real-Life Case Studies of Sector Rotation
Case Study 1: Post-Pandemic Recovery
In early 2021, as economies reopened after COVID-19 lockdowns:
Cyclical sectors like Industrials AMEX:XLI and Financials AMEX:XLF outperformed due to increased economic activity.
Defensive sectors like Utilities AMEX:XLU lagged as investors shifted away from safe havens.
Using TradingView’s heatmap feature , investors could have identified strong gains in AMEX:XLI and AMEX:XLF relative to AMEX:SPY
Case Study 2: Inflation Surge in Late 2022
As inflation surged in late 2022:
Energy AMEX:XLE and Materials AMEX:XLB outperformed due to rising commodity prices.
Technology AMEX:XLK underperformed as higher interest rates hurt growth stocks.
By monitoring RS lines for AMEX:XLE and AMEX:XLB on TradingView charts, investors could have rotated into these sectors ahead of broader market gains.
Limitations of Sector Rotation Strategies
Transaction Costs : Frequent rebalancing can erode returns over time.
Market Timing Challenges : Predicting economic cycles accurately is difficult and prone to errors.
False Signal s: Technical indicators like MACD or RSI can produce false positives during volatile markets.
Historical Bias : Backtested strategies often fail when applied to future market conditions.
Conclusion
Sector rotation is a useful framework for aligning investments with macroeconomic trends but should be approached with caution due to its inherent limitations. By leveraging TradingView ’s tools, such as relative strength analysis, heatmaps, and technical indicators, investors can systematically analyze sector performance and make informed decisions about portfolio allocation.
While academic research shows that sector rotation strategies do not consistently outperform simpler approaches like market timing or buy-and-hold strategies, they remain valuable for diversification and risk management when used judiciously.
Institutional Market Structure: How to Mark It!2025 ICT Mentorship: Lecture 2
Video Description:
📈 Unlock the Secrets of Institutional Market Structure!
Hey traders! Welcome to today’s video, where we lay the foundation for mastering how the market truly moves. Understanding market structure is the key to improving your trading precision and analysis.
In this session, we’ll break down the difference between minor swing points and strong swing points—a crucial distinction for objective and accurate structure analysis. You’ll learn how to mark market structure properly, keeping emotions in check and aligning with solid trading psychology.
🎯 What You’ll Gain:
✅ Identify market structure like a pro
✅ Enhance your objectivity and reduce impulsive decisions
✅ Master institutional techniques for improved accuracy
If you’re ready to take your trading to the next level and build a strong foundation, hit play and let’s dive in!
💬 Don’t forget to like, comment, and subscribe for more game-changing insights. Share your thoughts below—I’d love to hear how this helps your trading journey!
Enjoy the video and happy trading!
The Architect 🏛️📊
Pivot Points Part 2: Support and Resistance LevelsWelcome back to our series on pivot points, an objective a simple tool used by many day traders.
In Part 1, we explored the central pivot point, its calculation, and its role as a key reference for market sentiment. In Part 2, we’ll expand on this foundation by diving into the support and resistance levels derived from the pivot point formula. These levels are designed to add depth to your day trading analysis, offering a more comprehensive view of intraday price action.
The Mechanics: Support and Resistance Levels
In addition to the central pivot point (PP), pivot analysis includes three levels of support (S1, S2, S3) and three levels of resistance (R1, R2, R3). These levels are calculated using the previous session’s high, low, and close. The formulas for the primary levels are as follows:
PP = (previous high + previous low + previous close) / 3
S1 = (pivot point x 2) - previous high
S2 = pivot point - (previous high — previous low)
R1 = (pivot point x 2) — previous low
R2 = pivot point + (previous high — previous low)
The third levels (R3 and S3) extend even further but are less frequently reached in typical intraday trading. These levels create a structured framework for identifying potential reversal points, breakout zones, and profit targets.
S&P 500 5min Candle Chart
Past performance is not a reliable indicator of future results
Using Pivot Levels in Your Trading
1. Trading the Reversal: Support and Resistance in Action
One of the most common ways to use pivot levels is to identify potential reversal points. For example, if the price reaches S1 or R1 and shows signs of hesitation, it may indicate a reversal is likely. This is particularly true when combined with candlestick patterns, momentum indicators, or divergence on oscillators like RSI.
Example:
In this EUR/USD 5-minute chart, we see a textbook reversal at R1. The market initially uses the pivot point (PP) as support and then forms a double top reversal pattern when retesting R1 resistance, signalling a potential upward move. This setup allows traders to enter with a clear stop above R1 and a target near the pivot point or dynamic moving average.
EUR/USD 5min Candle Chart
Past performance is not a reliable indicator of future results
2. Riding the Breakout
When momentum is strong, the market can break through pivot levels, turning resistance into support (or vice versa). Watching for breakouts at R1 or S1 can provide excellent entry points for trend-following strategies.
Example:
In this example, the FTSE 100 having earlier reversed at R1 and broken through PP, briefly consolidates near S1. This is followed by a break lower – triggering a swift move down to S2.
FTSE 100 5min Candle Chart
Past performance is not a reliable indicator of future results
3. Target Setting and Risk Management
Pivot levels are also useful for setting realistic profit targets and stop losses. For example, a trader entering a long position near S1 might use the pivot point as an initial target, depending on the strength of the move.
Similarly, a short position initiated near R1 could aim for the pivot point as an initial target and S1 as a secondary target, with stops placed just above the breakout level to manage risk.
Combining Pivot Levels with Other Tools
While pivot levels are powerful on their own, combining them with other tools can significantly enhance their effectiveness:
VWAP: If a pivot level aligns with VWAP, it reinforces the level’s importance as a potential support or resistance zone.
Prior Days High/Low: Pivot levels that coincide with the previous session’s high or low can serve as stronger reversal or breakout points.
RSI: Use RSI to gauge momentum—if price approaches a pivot level while RSI is negative or positive divergence at an overbought or oversold, it can signal a potential reversal.
Example:
In the below example we see the FTSE hold above VWAP and the pivot level – forming a solid base of support before breaking higher. The market breaks through R1 and the prior days high leading to a charge past R2 to and towards R3. At R3 we see the market start to stall as the RSI shows signs of negative divergence.
FTSE 100 5min Candle Chart
Past performance is not a reliable indicator of future results
Summary
Pivot points, along with their associated support and resistance levels, offer traders a structured framework for navigating intraday price action. By understanding how these levels interact with market sentiment and momentum, traders can develop more confident strategies for reversals, breakouts, and risk management.
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.
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Portfolio Selection for the Week – 10th February 2025This portfolio selection is for educational purposes only!
The key to successful trading lies in consistency. Consistent decision-making, combined with a positive edge, is what leads to long-term success in the markets. This is why we regularly conduct portfolio selection.
At present, the Japanese Yen (JPY) is the strongest currency, followed by the US Dollar (USD), Australian Dollar (AUD), and Canadian Dollar (CAD). On the weaker side, we see Swiss Franc (CHF), Euro (EUR), New Zealand Dollar (NZD), and British Pound (GBP).
Most currency pairs have been experiencing secondary trends. Once this phase concludes, we can look to align trades with the dominant market trend.
If you find this content valuable, hit the boost and share your thoughts in the comments!
Wishing you a profitable trading week! 🚀📈
Leap Ahead with a Bearish Divergence on Gold FuturesThe Leap Trading Competition: A Chance to Trade Gold Futures
TradingView’s "The Leap" Trading Competition is an opportunity for traders to test their futures trading skills. Participants can trade select CME Group futures contracts, including Gold Futures (GC) and Micro Gold Futures (MGC).
Register and participate here: TradingView Competition Registration .
This article presents a structured short trade setup based on a bearish divergence identified using the Commodity Channel Index (CCI) and key pivot point levels for confirmation. The trade plan focuses on waiting for price to break below the pivot point at 2866.8 before executing the trade, with clear targets and risk management.
Identifying the Trade Setup
Bearish divergence occurs when price makes higher highs while an indicator, such as CCI, makes lower highs. This signals weakening momentum and a potential reversal. The Commodity Channel Index (CCI) measures price deviations from its average and helps traders identify overbought or oversold conditions.
Pivot points are calculated from previous price action and serve as key support and resistance levels. The pivot at 2866.8 is the reference level in this setup. A breakdown below this level may suggest further downside momentum, increasing the probability of a successful short trade.
The trade plan combines CCI divergence with pivot point confirmation. While divergence signals a potential shift, entry is only considered if price trades below 2866.8. This approach reduces false signals and improves trade accuracy. The first target is set at 2823.0, aligning with an intermediate support level (S1), while the final target is near S2 at 2776.2, just above a UFO support zone.
Trade Plan and Risk Management
The short trade is triggered only if price trades below 2866.8. The stop loss is placed above the entry at a level ensuring at least a 3:1 reward-to-risk ratio.
Profit targets are structured to lock in gains progressively:
The first exit is at 2823.0, where partial profits can be taken.
The final exit is near 2776.2, positioned just above a UFO support level.
Stop placement may vary based on the trader’s preferred risk-reward ratio. Position sizing should be adjusted according to account size and market volatility.
Contract Specifications and Margin Requirements
Gold Futures (GC) details:
Full contract specs: GC Contract Specifications – CME Group
Contract size: 100 troy ounces
Tick size: 0.10 per ounce ($10 per tick)
Margin requirements depend on broker conditions and market volatility. Currently around $12,500 per contract.
Micro Gold Futures (MGC) details:
Full contract specs: MGC Contract Specifications – CME Group
Contract size: 10 troy ounces (1/10th of GC)
Tick size: 0.10 per ounce ($1 per tick)
Lower margin requirements provide access to smaller traders. Currently around $1,250 per contract.
Leverage impacts both potential gains and losses. Traders should consider market conditions and margin requirements when adjusting position sizes.
Execution and Market Conditions
Before executing the trade, price must break below 2866.8. Additional confirmation can be sought through volume trends and price action signals.
If price does not break the pivot, the short setup is invalid. If price consolidates, traders should reassess momentum before committing to the trade.
Conclusion
Bearish CCI divergence signals potential market weakness, but confirmation from the pivot breakdown is key before executing a short trade. A structured approach with well-defined targets and risk management increases the probability of success.
For traders in The Leap Trading Competition, this setup highlights the importance of discipline, confirmation, and scaling out of trades to manage risk effectively.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
Price Action: Traps of Market MakersHave you ever felt confident about a market trend, only to watch the price suddenly reverse direction? Or found yourself following what seemed like a clear price movement, only to realize it was a false signal?
Don't blame yourself or your trading strategy. What you're experiencing is likely the work of market makers who strategically create traps to trigger stop losses and pending orders. In this post, we'll dive into these market traps – learning how to identify them, understanding their different types, and most importantly, discovering how to turn them into profitable opportunities.
What are market maker traps? At their core, market traps are deceptive price movements designed to create an illusion of a genuine trend, convincing traders to take positions before the market reverses course.
📍 1. The False Double Pattern Trap
At its core, most market traps manifest as false breakouts of key levels. One of the most common examples is the deceptive Double Top/Double Bottom pattern. If you have traded these patterns, you have probably noticed something interesting: the second top is often slightly higher than the first, while the second bottom tends to be slightly lower than the previous one. This contradicts the traditional pattern theory, which suggests the second top should be lower, indicating market weakness.
What's really happening here? Large market players deliberately push prices beyond these levels to trigger the stop losses and pending orders of smaller traders. Once they've captured this liquidity, the market reverses, revealing the trap.
📍 2. The Trend Continuation Trap
This trap is perhaps the most devastating for traders. Traditional market wisdom tells us that a bearish trend consists of progressively lower highs and lower lows. When a previous high gets broken, conventional technical analysis suggests the bearish trend has possibly ended. However, reality often plays out differently. The price might briefly break above a local maximum, triggering stop orders and creating the illusion of a trend reversal. Instead of reversing, though, the price continues its original downward trajectory. This phenomenon is particularly visible on shorter timeframes like M30 or H1, where the fake breakout typically spans several candles.
When you spot a breakout against an established trend, approach with caution – it's more likely to be a false signal than a genuine reversal. In contrast, during sideways market conditions, focus on trading bounces from the channel's boundaries (upper and lower borders). This more conservative approach can help protect you from these common traps.
📍 3. The News-Driven Trap
One of the most common traps occurs during news events. You've probably experienced it: price suddenly surges in one direction, breaks through a significant level, only to reverse sharply. This classic "fake-out" catches many traders on the wrong side of the market.
A key strategy for identifying these traps is to analyze multiple timeframes. Generally, you'll want to examine both higher and lower timeframes than your primary trading window. Remember: the higher the timeframe, the fewer traps you'll typically encounter, making your analysis more reliable.
📍 4. Session Opening Traps
Trading session transitions, particularly around the London open, often create another type of trap. You might notice one price direction before London opens, followed by a different movement at the session's start, which then reverses later. These movements typically trigger stop losses at key levels before reversing.
For detailed analysis of session traps, dropping down to smaller timeframes (15M) can reveal the true price action. For instance, you might spot a clear price rise followed by a decisive bounce off a significant level like 189.500.
When you see a breakout of any significant level – whether it's a round number or a local high/low during a trend correction – approach it with skepticism. Until price firmly establishes itself in the new zone with clear confirmation, consider the possibility that you're witnessing a trap designed to collect stop losses. Remember this fundamental truth: price is more likely to bounce from a level than break through it.
📍 Practical Tips on Trading Traps
◾️ Multi-Timeframe Analysis. The key to successfully trading traps begins with analyzing multiple timeframes. When you spot a breakout of an obvious level, switch to the timeframe where the movement appears most convincing. This helps you better understand the trap's structure and potential reversal points.
◾️ Entry and Risk Management. Timing your entry is crucial. Look for the first signals of price reversal, but remember - proper position sizing is essential. Keep your stop losses tight, as the market may still produce additional spikes that could prematurely end your trade. While this approach might take practice to master, the reward potential is significant - you can set take-profit targets up to 10 times larger than your stop loss.
◾️ Position Management. Once in the trade, actively manage your position. Move your stop loss to breakeven at the first appropriate opportunity to protect your capital.
📍 Conclusion
Trading traps effectively requires patience and practice. While this strategy can be challenging to master, the ability to recognize and capitalize on these traps gives you a significant edge in the market. Many traders fall victim to these traps; learning to spot them transforms you from potential prey into a skilled hunter. Take time to practice identifying these patterns before committing real capital, and start with smaller position sizes as you develop your skills.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣
Divergence Trading Explained For Beginners -DAX Pullback TradeTrading divergence in the Forex or Stock market can be an important tool. Learn how to identify divergences & practically apply them to your technical analysis to increase your edge & profits in the financial markets.
In this video you'll learn
What is a bullish and bearish divergence
How to use divergence to spot potential reversals in the market
How to use volume to identify key levels of reversals
How to measure out a "Kill Zone"
What are tweezer tops & tweezer bottoms & why they are important
How to use the Fibonacci retracement tool
How to use the Relative Strength Index (RSI Indicator)
Your Trading Coach - Akil
Gann Time Cycles Strategy: How To Predict Market Highs & Lows ?Gann Time Cycles Strategy: Predict Market Highs & Lows with Precision.
Mastering Gann Time Cycles: The Key to Predicting Market Highs & Lows
In this Gann trading strategy on time cycles, we explore a powerful method to predict market highs, lows, and reversals with precision. Gann’s theory is based on the principle that time governs market movements and that price action follows a structured mathematical cycle. By understanding and applying Gann Time Cycles, traders can identify key turning points well in advance, giving them a significant edge in the market.
The Importance of Time in Market Movements
W.D. Gann famously stated that "Time is more important than price. When the time is up, the market will reverse based on time." This means that while price levels are crucial, it is the time factor that ultimately determines when the market will make a major move. By analyzing Gann’s time cycles, we can predict periods where a reversal or a strong trend continuation is likely to occur.
📌 Timestamps: Gann Time-Price Squares: The Secret to Predicting Market Highs & Lows
00:00 ▶️ Introduction.
00:25 ▶️ Risk Disclaimer.
01:30 ▶️ What is Gann Time and Price Square.
02:10 ▶️ Key Numbers in Gann's Method
03:10 ▶️ Constructing Time and Price Squares
04:19 ▶️ Step 1 - Identify a Major Swing High or Low
05:18 ▶️ Step 2 - Apply Gann’s Time Cycles
05:39 ▶️ Step 3 - Draw a Gann Square
06:15 ▶️ Step 4 - Look for Price Reactions at Time Point
06:45 ▶️ Step 5 - Use Gann Angles for Confirmation
07:20 ▶️ Step 6 - Confirm with Market Behavior
07:50 ▶️ Step 7 - Set Entry, Stop-Loss, and Take Profit
08:30 ▶️ Gann Time-Price Squares: The Secret to Predicting Market Highs & Lows | Example - 1
14:00 ▶️ Gann Time-Price Squares: The Secret to Predicting Market Highs & Lows | Example - 2
16:50▶️ Conclusion & Key Takeaways
Applying Gann’s Time Cycles to Identify Market Turning Points
To successfully use this strategy, traders need to:
✅ Identify major swing highs and lows in the market
✅ Apply Gann’s time cycles to determine potential reversal points
✅ Use the Gann Square in TradingView to map key price levels
✅ Recognize time-price intersections to pinpoint entry opportunities
✅ Utilize Gann angles for additional confirmation
✅ Set proper entry points, stop-losses, and take-profits based on time predictions
By integrating these steps into your trading plan, you can improve your entry and exit accuracy and anticipate market movements before they happen.
Conclusion: Why Gann Time Cycles Are a Game-Changer
Gann’s Time Cycles provide traders with an advanced forecasting tool that allows them to anticipate market movements with greater precision. Unlike traditional technical indicators that rely on lagging price data, Gann’s method allows you to predict future reversals before they happen, giving you an edge over other traders.
If you apply this strategy correctly, you will begin to see the certainty within the randomness of the market. The key is to remain disciplined, test these time cycles on real charts, and refine your understanding through consistent practice.
A detailed explanation of parallel price channels and how to use📚 A detailed explanation of parallel price channels and how to use them in technical analysis 📈
Parallel price channels are one of the most important technical analysis tools that help traders identify **trends, entry and exit points, and potential levels of reversal or breakout**.
---
## **🟢 First: What is a parallel price channel?**
A parallel price channel is a **price range within which the price moves regularly**, and is defined by **two parallel lines** that represent **dynamic support and resistance**.
📌 Channels can be:
1️⃣ **Ascending**: When the price is in an upward trend with increasing bottoms and tops.
2️⃣ **Downward**: When the price is in a downward trend with decreasing bottoms and tops.
3️⃣ **Horizontal (Sideways)**: When the price moves sideways between fixed levels.
---
## **🟢 Second: Components of the price channel**
🔹 **The upper limit of the channel (moving resistance)**: Represents a selling area where the price tends to reverse downward when touched.
🔹 **The lower limit of the channel (moving support)**: Represents a buying area where the price tends to rebound upward when touched.
🔹 **The middle line (in some channels)**: Helps identify rebound and balance points within the channel.
---
## **🟢 Third: How to draw a price channel?**
### **✏️ Steps to draw a price channel manually:**
1️⃣ Determine the market direction (upward, downward, sideways).
2️⃣ Draw the main trend line by connecting **two major peaks or bottoms**.
3️⃣ Copy this line and place it **parallel** on the other side of the price to form the channel.
4️⃣ Make sure that the price moves between the two lines logically without a clear breakout.
✍ **Practical example:**
📈 If you have two rising bottoms in an upward trend, you can draw a line that passes through them and then copy it upwards at the peaks, to form an ascending channel.
---
## **🟢 Fourth: How to use the price channel in trading?**
### **1️⃣ Trading inside the channel** (Strategy 1)
✅ **Buy from the lower limit of the channel** (at the moving support).
✅ **Sell at the upper limit of the channel** (at the moving resistance).
📌 This strategy is effective in stable markets without strong breakouts.
📍 **Example of trading inside the channel:**
- In the ascending channel, if the price touches the lower limit, the purchase is made with a **stop loss below the channel**.
- In the descending channel, if the price touches the upper limit, the sale is made with a **stop loss above the channel**.
---
### **2️⃣ Trading when the channel is broken** (Strategy 2)
🔴 **Breaking the upper limit of the channel** → indicates **continuation of the upward trend** (buy signal).
🔴 **Breaking the lower limit of the channel** → indicates **continuation of the downward trend** (sell signal).
📍 **Example of breaking the channel:**
- If the price is inside an ascending channel, then **breaks the upper limit**, a **buy deal** can be entered after a retest.
- If the price is inside a descending channel, then **breaks the lower limit**, a **sell deal** can be entered after a retest.
---
## **🟢 Fifth: Analysis of the attached image**
✅ **In the attached chart, we have an ascending channel within a downward trend**, and the channel was broken downwards, which led to **continuation of the downward trend**.
✅ Areas have been identified:
- **SL (Stop Loss)** → Stop loss above the channel to prevent risks.
- **LOGIN** → Entry point after breaking the channel.
- **TP (Take Profit)** → Take profits based on the channel size.
---
## **🟢 Sixth: Professional tips for using price channels**
💡 **Combine them with other indicators** such as RSI or MACD to confirm signals.
💡 **Monitoring volume**: When the channel is broken with high trading volume, the break is stronger.
💡 **Time analysis**: Using channels on different frames gives better accuracy.
💡 **Use appropriate stop loss** to protect capital from false breakouts.
---
🚀 **💡 Summary:** Price channels are a powerful tool for identifying trends and entry and exit points, and are used in trading within the channel or when a price break occurs. Their accuracy can be improved by combining them with other indicators and understanding volume and price momentum.