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Trump's Tariff Wars : What To Expect And How To Trade Them.I promised all of you I would create a Trump's Tariff Wars video and try to relate that is happening through the global economy into a rational explanation of HOW and WHY you need to be keenly away of the opportunities presented by the new Trump administration. Like Trump or not. I don't care. He is going to try to enact policies and efforts to move in a direction to support the US consumer, worker, business, and economy. He made that very clear while campaigning and while running for office (again). This video looks at the "free and fair" global tariffs imposed on US manufacturers and exports by global nations over the past 3+ decades. For more than 30+ years, global nations have imposed extreme tariffs on US goods/exports in order to try to protect and grow their economies. The purpose of these tariffs on US good was to protect THEIR workers/population, to protect THEIR business/economy, to protect THEIR manufacturing/products. Yes, the tariffs they imposed on US goods was directly responsible for THEIR economic growth over the past 30-50+ years and helped them build new manufacturing, distribution, consumer engagement, banking, wealth, and more. The entire purpose of their tariffs on US goods was to create an unfair advantage for their population to BUILD, MANUFACTURE, and BUY locally made products - avoiding US products as much as possible. As I suggested, that is why Apple, and many other US manufacturers moved to Asia and overseas. They could not compete in the US with China charging 67% tariffs on US goods. So they had to move to China to manufacture products because importing Chinese-made products into the US was cheaper than importing US-made products into China. Get it? The current foreign Tariffs create an incredibly unfair global marketplace/economy - and that has to STOP (or at least be re-negotiated so it is more fair for everyone). And I believe THAT is why Trump is raising tariffs on foreign nations. Ultimately, this will likely be resolved as I suggest in this video (unless many foreign nations continue to raise tariff levels trying to combat US tariffs). If other foreign nation simply say, "I won't stand for this, I'm raising my tariff levels to combat the new US tariffs", then we end up where we started - a grossly unfair global marketplace. This is the 21st century, not the 18th century. Step up to the table and realize we are not in the 1850s or 1950s any longer. We are in 2025. Many global economies are competing at levels nearly equal to the US economy in terms of population, GDP, manufacturing, and more. It's time to create a FREE and FAIR global economy, not some tariff-driven false economy on the backs of the US consumers. That has to end. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver

Education

25:11

$100, $1,000, $100,000 — When Numbers Become Turning Points Hey! Have you ever wondered why 100 feels... special? 🤔 Round numbers are like hidden magnets in the market. 100. 500. 1,000. They feel complete. They stand out. They grab our attention and make us pause. In financial markets, these are the levels where price often slows down, stalls, or makes a surprising turn. I’ll admit, once I confused the market with real life. I hoped a round number would cause a reversal in any situation. Like when I stepped on the scale and saw a clean 100 staring back at me, a level often known as strong resistance. I waited for a bounce, a sudden reversal... but nothing. The market reacts. My body? Not so much. 🤷‍♂️ The market reacts. But why? What makes these numbers so powerful? The answer lies in our minds, in market dynamics, and in our human tendency to crave simplicity. ------------------------------------- Psychology: Why our brain loves round numbers The human mind is designed to create structure. Round numbers are like lighthouses in the chaos — simple, memorable, and logical. If someone asks how much your sofa cost, you’re more likely to say "a grand" than "963.40 dollars." That’s normal. It’s your brain seeking clarity with minimal effort. In financial markets, round numbers become key reference points. Traders, investors, even algorithms gravitate toward them. If enough people believe 100 is important, they start acting around that level — buying, selling, waiting. That belief becomes reality, whether it's rational or not. We anchor decisions to familiar numbers because they feel safe, clean, and "right." Walmart (WMT) and the $100 mark Round numbers also carry emotional weight. 100 feels like a milestone, a finish line. It’s not just a number, it’s both an ending and a beginning. ------------------------------------- Round numbers in the market: Resistance and support Round number as a resistance Imagine a stock climbing steadily: 85, 92, 98... and then it hits 100. Suddenly, it stalls. Why? Investors who bought earlier see 100 as a "perfect" profit point. "A hundred bucks. Time to sell." Many pre-set sell orders are already waiting. Most people don’t place orders at $96.73. They aim for 100. A strong and symbolic. At the same time, speculators and short sellers may step in, viewing 100 as too high. This creates pressure, slowing the rally or pushing the price back down. If a stock begins its journey at, say, $35, the next key round levels for me are: 50, 100, 150, 200, 500, 1,000, 2,000, 5,000, 10,000… Slide from my training materials These levels have proven themselves again and again — often causing sideways movement or corrections. When I recently reviewed the entire S&P 500 list, for example $200 showed up consistently as a resistance point. It’s pure psychology. Round numbers feel "high" — and it's often the perfect moment to lock in profits and reallocate capital. Bitcoin at $100,000. Netflix at $1,000. Tesla at $500. Walmart at $100. Palantir at $100. These are just a few recent examples. Round number support: A lifeline for buyers The same logic works in reverse. When price falls through 130, 115, 105... and lands near 100, buyers often step in. "100 looks like a good entry," they say. It feels like solid ground after a drop. We love comeback stories. Phoenix moments. Underdogs rising. Buy orders stack up and the price drop pauses. Some examples: Meta Platforms (META) Amazon.com (AMZN) — $100 acted as resistance for years, then became support after a breakout Tesla (TSLA) ------------------------------------- Why round numbers work for both buyers and sellers Buyers and the illusion of a bargain If a stock falls from 137 to 110 and approaches 100, buyers feel like it’s hit bottom. Psychologically, 100 feels cheap and safe. Even if the company’s fundamentals haven’t changed, 100 just "feels right." It’s like seeing a price tag of $9.99 — our brain rounds it down and feels like we got an epic deal. Sellers and the "perfect" exit When a stock rises from 180 to 195 and nears 200, many sellers place orders right at 200. "That’s a nice round number, I’ll exit there." There’s emotional satisfaction. The gain feels cleaner, more meaningful, when it ends on a round note. To be fair, I always suggest not waiting for an exact level like 200. If your stock moved through 145 > 165 > 185, don’t expect perfection. Leave room. A $190 target zone makes more sense. Often, greed kills profit before it can be realized. Don’t squeeze the lemon dry. Example: My Tesla analysis on TradingView with a $500 target — TESLA: Money On Your Screen 2.0 | Lock in Fully… Before & After: As you see there, the zone is important, not the exact number. ------------------------------------- Round numbers in breakout trades When price reaches a round number, the market often enters a kind of standoff. Buyers and sellers hesitate. The price moves sideways, say between 90 and 110. Psychologically, it’s a zone of indecision. The number is too important to ignore, but the direction isn’t clear until news or momentum pushes it. When the direction is up and the market breaks above a key level, round numbers work brilliantly for breakout trades or strength-based entries. Slide from my training materials People are willing to pay more once they see the price break through a familiar barrier. FOMO kicks in. Those who sold earlier feel regret and jump back in. And just like that, momentum builds again — until the next round-number milestone. Berkshire Hathaway (BRK.B) — every round number so far has caused mild corrections or sideways action. I’d think $500 won’t be any different. ------------------------------------- Conclusion: Simplicity rules the market Round numbers aren’t magic. They work because we, the people, make the market. We love simplicity, patterns, and emotional anchors. These price levels are where the market breathes, pauses, thinks, and decides. When you learn to recognize them, you gain an edge — not because the numbers do something, but because crowds do. A round number alone is never a reason to act. If a stock drops to 100, it doesn’t mean it’s time to buy. No single number works in isolation. You need a strategy — a set of supporting criteria that together increase the odds. Round numbers are powerful psychological levels, but the real advantage appears when they align with structure and signals. Keep round numbers on your radar. They’re the market’s psychological mirror, and just like us, the market loves beautiful numbers. If this article made you see price behavior differently, or gave you something to think about, feel free to share it. 🙌 So, that's it! A brief overview and hopefully, you found this informative. If this article made you see price behavior differently, or gave you something to think about, feel free to share it & leave a comment with your thoughts! Before you leave - Like & Boost if you find this useful! 🚀 Trade smart, Vaido

Education

Understanding MACD In Trading The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that measures the relationship between two moving averages of an asset’s price. Developed by Gerald Appel in the late 1970s, MACD is designed to provide insights into both trend strength and momentum. Unlike simple moving averages, which merely smooth price data over a specific period, MACD goes a step further by identifying when short-term momentum is shifting in relation to the long-term trend. This makes it a valuable tool for traders looking to enter or exit positions at optimal points. 1. Why is MACD important in trading? Trend Confirmation: Identifies whether an asset is in an uptrend or downtrend. Momentum Strength: Measures how strong a price movement is. Reversal Signals: Detects potential changes in trend direction. Entry and Exit Points: Helps traders determine when to buy and sell. 2. MACD Components The MACD Line: Identifies whether an asset is in an uptrend or downtrend. This line is derived by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. When the MACD Line is positive, it indicates bullish momentum; when negative, it suggests bearish momentum. The Signal Line: Measures how strong a price movement is. A 9-period EMA of the MACD Line. It smooths out MACD fluctuations, making it easier to identify crossovers. The Histogram: Detects potential changes in trend direction. The difference between the MACD Line and the Signal Line. A positive histogram suggests increasing bullish momentum, while a negative histogram suggests growing bearish momentum. 3. MACD Formula The Moving Average Convergence Divergence (MACD) is one of the most widely used technical indicators in trading. It helps traders identify trends, momentum shifts, and potential buy or sell opportunities by analyzing the relationship between two moving averages. By calculating the difference between a short-term and long-term exponential moving average (EMA), MACD provides insight into market direction and strength. //@version=6 indicator("MACD Indicator", overlay=false) // MACD parameters shortLength = 12 longLength = 26 signalLength = 9 // Calculate MACD macdLine = ta.ema(close, shortLength) - ta.ema(close, longLength) signalLine = ta.ema(macdLine, signalLength) histogram = macdLine - signalLine // Plot MACD components plot(macdLine, color=color.blue, title="MACD Line") plot(signalLine, color=color.red, title="Signal Line") plot(histogram, color=color.green, style=plot.style_columns, title="Histogram") Explanation: Short EMA (12-period) and Long EMA (26-period) are calculated. The MACD Line is the difference between these EMAs. A Signal Line (9-period EMA of MACD Line) is calculated. The Histogram represents the difference between the MACD Line and the Signal Line. 4. Interpreting MACD signals MACD Crossovers A crossover occurs when the MACD Line and Signal Line intersect: Bullish Crossover: When the MACD Line crosses above the Signal Line, it signals a potential uptrend and a buying opportunity. Bearish Crossover: When the MACD Line crosses below the Signal Line, it suggests a potential downtrend and a selling opportunity. MACD Divergences Divergences occur when MACD moves in the opposite direction of the price, signaling a potential reversal: Bullish Divergence: If price makes lower lows, but MACD makes higher lows, it suggests weakening downward momentum and a possible bullish reversal. Bearish Divergence: If price makes higher highs, but MACD makes lower highs, it signals weakening upward momentum and a potential bearish reversal. Histogram Interpretation The MACD histogram visually represents momentum shifts: When bars are increasing in height, momentum is strengthening. When bars shrink, it suggests momentum is weakening. Zero Line Crossings The MACD crossing the zero line indicates momentum shifts: MACD crossing above zero → Bullish trend initiation. MACD crossing below zero → Bearish trend initiation. 5. Trend & Momentum Analysis Traders use MACD to confirm trends and analyze market momentum: If MACD Line is above the Signal Line, an uptrend is in place. If MACD Line is below the Signal Line, a downtrend is dominant. A widening histogram confirms strong momentum in the trend’s direction. A narrowing histogram warns of potential trend weakening. MACD works best in trending markets and should be used cautiously in sideways markets. 6. MACD Based Trading Strategies Entry Strategies Buy when MACD Line crosses above the Signal Line in an uptrend. Sell when MACD Line crosses below the Signal Line in a downtrend. Exit Strategies Exit long trades when a bearish crossover occurs. Close short positions when a bullish crossover occurs. Position Management If the histogram is expanding, traders can hold positions. If the histogram is contracting, it may signal weakening momentum. 7. Limitations of MACD While MACD is a powerful tool, traders must consider: It lags behind price movements (since it is based on moving averages). It can generate false signals in choppy markets. Customization is required to suit different trading styles. 8. Optimization Optimizing MACD for Different Market Conditions Day Traders & Scalpers: Use faster settings like (5, 13, 6) for quick signals. Swing Traders: Stick with the default (12, 26, 9) setting for balanced signals. Long-Term Investors: Use slower settings like (24, 52, 18) for a broader market perspective. 9. Key Takeaways MACD is a momentum and trend-following indicator that helps traders identify market direction, strength, and potential reversals. Since MACD is a lagging indicator, it may generate false signals, especially in sideways markets. Combining MACD with RSI, moving averages, and volume indicators improves accuracy and reduces risk. MACD should be used alongside risk management strategies and other confirmation tools for best results. MACD remains one of the most effective technical indicators, widely used across different markets. It helps traders identify trends, confirm momentum, and optimize trade entries and exits. However, it should always be used with additional tools to minimize false signals. Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!

Education

by CandelaCharts

The Power of a Trading System with the Right Mental State 📅 April 3, 2025 Over the years, I’ve learned that discipline in trading isn’t just about having a system — it’s about being in the right state of mind to follow that system. 🧘‍♂️📈 You can have the cleanest rules, the best strategy, and solid backtests … but if your mindset is off, none of it matters. That’s when hesitation creeps in. Or worse — revenge trades, FOMO, or doubt. So I started focusing on one thing: my internal state before and during a trade. 🧭 🔄 How I Manage My Mindset ✅ 1. Pre-Trade Check-In Before I trade, I ask: How do I feel right now? If I’m not grounded, I don’t trade. Simple. I’ve learned the hard way that it’s not worth it. 🔥 2. Anchoring a Disciplined State I recall moments where I executed perfectly — calm, focused, in control. I mentally step into that version of myself before every session. 🧩 3. Staying Congruent During a trade, I pay attention to my behavior. If I notice myself drifting from my plan — I pause, breathe, and realign. 🎯 Why This Works A trading system gives structure. But structure means nothing without mental discipline. By mastering my emotional state, I stopped sabotaging my own edge. No more reacting from fear. No more chasing. Just clean, committed execution. 🧘‍♂️✅ 💬 Final Thought Consistency doesn’t come from the market — it comes from me. So now, before I look at the chart, I check in with myself first. Because when my state is right, my trading flows. ⚖️✨ If this resonates, drop your thoughts below — let’s grow together.

Education

What Is an ABCD Pattern, and How Can You Use It in Trading?What Is an ABCD Pattern, and How Can You Use It in Trading? Are you looking to improve your trading strategy and technical analysis skills? The ABCD trading pattern may be just what you need. This tool may help you identify potential market reversals and decide when to enter a trade. Keep reading to learn more about the ABCD pattern and how to apply it to your trading strategy. What Is an ABCD Pattern? The ABCD pattern is one of the basic harmonic patterns. It gives traders an idea of where the market might reverse. Therefore, when combined with other forms of technical analysis, it may be a great addition to your trading arsenal. The ABCD pattern comprises two legs, AB and CD, and one retracement, BC, with D as an entry point. More specifically, an ABCD can be identified by: - AB Leg: A trend starts at A and makes a high or low at B. - BC Retracement: The price retraces from B to C. - CD Leg: The trend continues from C to D. - D Entry Point: Once another high or low forms and traders enter at D. These price movements create the “zig-zag” or “lightning bolt” shapes. In fact, ABCD patterns are present across every market and every timeframe. The up-down movements in financial assets represent opportunities to identify and trade ABCD patterns. Why Use the ABCD Pattern in Your Trading Strategy? Before we move on to identifying and trading the ABCD pattern, it’s worth explaining why you might want to consider using it. Here are a few reasons traders favour the ABCD pattern: - It’s one of the harmonic patterns suitable for traders of all experience levels. - It’s versatile and works for stocks, commodities, and cryptocurrencies*, not just forex trading. - Traders use ABCD patterns to make informed decisions about potential turning points in the market. - It can form the basis of a working trading strategy if used correctly alongside other forms of technical analysis. - It provides quite an effective risk/reward ratio if reversals are caught. How Traders Identify an ABCD Trading Pattern The first step in finding ABCDs is to look for that classic zig-zag shape. Once you’ve found one, it’s time to apply Fibonacci ratios to confirm the pattern. If you’re struggling, you can consider using pre-made ABCD pattern indicators or scanners to help your eyes get used to spotting them. The ABCD pattern requires that the BC leg is between a 38.2% to 78.6% retracement of AB, ideally between 61.8% and 78.6%. This means that if you put a Fibonacci retracement tool at A and B, C should be between 0.382 and 0.786. The second CD leg should be a 127.2% to 161.8% extension of the BC retracement. For extra confirmation, consider specifying that AB is equal to the same length as CD. While it can be tempting to start trading based on these conditions, you’ll find that, in practice, identifying point D can be trickier than it seems. That’s why traders typically use Fibonacci ratios, key levels, candlestick patterns, and higher timeframe convergence to confirm their entries, which we will touch on shortly. ABCD Pattern Examples Now that we understand how to identify the ABCD pattern, we can start applying it to real price action. Note that the ratios won’t always be perfect, so allowing for slight variability above or below the defined ratios is acceptable. Bullish ABCD Pattern For a bullish formation, the following must be present: - The AB leg should be between the high A and low B. - The BC bullish retracement should be between the low B and high C, which is below the high A. - The CD leg should be between the high C and low D. - BC is a 38.2% to 78.6% retracement of AB, preferably between 61.8% and 78.6%. - CD is a 127.2% to 161.8% extension of BC. Additionally, you may look for AB to be an identical or similar length to CD. Entry: Traders set a buy order at D. Stop Loss: The theory suggests traders place a stop below a nearby support level or use a set number of pips. Take profit: Traders place take-profit orders at the 38.2%, 50%, or 61.8% retracement of CD or hold for higher prices if they believe there’s the potential for further bullishness. Bearish ABCD Pattern The bearish ABCD chart pattern is essentially the same, just with the reversed highs and lows. As such: - The AB leg should be between the low A and high B. - The BC bullish retracement should be between the high B and low C. - The CD leg should be between the low C and high D. - BC is a 38.2% to 78.6% retracement of AB, preferably between 61.8% and 78.6%. - CD is a 127.2% to 161.8% extension of BC. You can choose to apply the same AB = CD rules in a bearish ABCD pattern if desired. Entry: Traders typically place a sell order at D. Stop Loss: A stop may be placed above a nearby resistance level or at a set number of pips. Take profit: Traders often take profits at the 38.2%, 50%, or 61.8% retracement of CD or hold for lower prices if there’s a bearish trend on a higher timeframe. ABCD Pattern Strategy A momentum-based ABCD trading strategy can help traders confirm potential reversals by incorporating indicators like the RSI (Relative Strength Index). This approach often adds an extra layer of confluence. Entry - Traders may wait for point D to form and for the RSI to indicate overbought or oversold conditions, typically above 80 or below 20. - Additional confirmation can be sought if there is a divergence between price and RSI, signalling weakening momentum. - Once the RSI crosses back into normal territory, it can suggest a reversal, providing an opportunity to enter the market. Stop Loss - A stop loss is often placed slightly above or below point D, depending on whether the formation is bearish or bullish, respectively. This helps potentially manage risk in case the reversal doesn’t hold. Take Profit - Traders can consider taking profits at Fibonacci retracement levels of leg CD, such as 38.2%, 50%, or 61.8%. - Another common target is point C, but traders may also hold the position for longer if further price movement is anticipated. Looking for Additional Confluence Given that trading the ABCDs usually relies on setting orders at specific reversal points, consider looking for extra confirmation to filter potential losing trades. Below, you’ll find three factors of confluence you can use to confirm your entries. Key Levels If your analysis shows that D is projected to be in an area of significant support or resistance, there’s a greater chance that the level will hold and the price will reverse in the way you expect. ABCD Timeframe Convergence One technique to potentially enhance the reliability of ABCD chart patterns is to check for multiple timeframes. When you identify the formation on a lower timeframe—say, the 5-minute chart—you can then look to a higher timeframe chart, such as the 30-minute or 1-hour chart to see the overall trend. If the pattern converges with the longer-term trend, it strengthens the analysis and increases the likelihood of an effective trade. Candlestick Patterns Some traders look for particular candlestick patterns to appear. The hammer and shooting star patterns are commonly used by ABCD traders for extra confirmation, as are tweezer tops/bottoms and engulfing candles. You could choose to wait for one of these candlesticks to form before entering with a market order. Common Mistakes to Avoid When Identifying an ABCD Chart Pattern Of course, ABCD patterns aren’t a silver bullet when it comes to effective trading. There are several common mistakes made by inexperienced traders when trading these types of patterns, such as: - Confusing the ABCD with other harmonic patterns, like the Gartley or three-drive pattern. - Trading every potential ABCD formation they see. It’s preferable to be selective with entries and look for confirmation. - Not being patient. ABCDs on higher timeframes can take days, even weeks, to play out. Experienced traders wait for the pattern to develop before making a trading decision. - Ignoring key levels. Instead, you could allow them to guide your trades and look for the ABCD pattern in these areas. The Bottom Line The ABCD pattern is a versatile tool that can enhance a trader’s ability to identify potential market reversals and refine their overall strategy. When combined with other forms of technical analysis, such as momentum indicators, an ABCD trading strategy can be an invaluable addition to your trading arsenal. For traders looking to apply the ABCD pattern in forex, stock, commodity, and crypto* markets, consider opening an FXOpen account and take advantage of low-cost, high-speed trading across more than 600 assets. Good luck! FAQ What Is an ABCD Trading Pattern? The ABCD trading pattern is a simple harmonic pattern used by traders to identify potential market reversals. It consists of three price movements: the AB leg, BC retracement, and CD leg, with point D marking a potential entry for a reversal trade. It helps identify changes in trend direction. How Can You Use the ABCD Pattern in Trading? Traders identify the ABCD pattern by finding the characteristic zig-zag shape and using Fibonacci ratios to confirm it. Entry points are typically placed at point D, with stop losses and profit targets based on the formation’s structure. Confluence with other technical analysis tools improves its reliability. Is the ABCD Pattern Bearish or Bullish? The ABCD pattern can be either bearish or bullish. A bullish ABCD indicates a potential upward reversal, while a bearish ABCD suggests a downward reversal. The structure remains the same, but the highs and lows are reversed. What Is the ABCD Strategy? The ABCD strategy revolves around identifying trend reversals using the formation and confirming entry points through tools like Fibonacci retracements or momentum indicators like the RSI for added accuracy. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Education

Bonds Don’t Lie: The Signal is Clear U.S. 10-year Treasuries are a crucial cog in the global financial machine, serving as a benchmark borrowing rate, a tool for asset valuation, and a gauge of the longer-term outlook for U.S. economic growth and inflation. As such, I keep a close eye on 10-year note futures, as they can offer clues on directional risks for bond prices and yields. The price action over the past few days has sent a clear and obvious signal as to where the risks lie: prices higher, yields lower. Futures had been grinding lower within a falling wedge for several weeks but broke higher last Friday on decent volumes following soft U.S. household spending data. It has since extended bullish the move, reclaiming the 200-day moving average before surging above key resistance at 115’09’0 after Trump’s reciprocal tariff announcement on Wednesday. RSI (14) is trending higher but isn’t yet overbought, while MACD has crossed the signal line above 0, confirming the bullish momentum signal. That favours further upside, putting resistance at 116’11’0 and 118’12’0 on the immediate radar. For those who prefer it expressed in yield terms, that’s around 4% and 3.8% respectively. Good luck! DS

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Calibrating Trading Indicators for Different Markets Calibrating Trading Indicators for Different Markets: A Beginner's Guide (Simple Steps to Adjust RSI , MACD , and Other Tools for Better Results) Key Idea : Just like you'd tune a guitar differently for rock vs. classical music, trading tools like RSI or MACD need adjustments depending on what you're trading (stocks, crypto, forex) and how it moves. This guide shows you how to tweak these tools using price swings (pivot points) to make them work better for your specific asset. --- Why "One Size Fits All" Doesn't Work Most traders use default settings for indicators (like RSI's 14-day period). But these defaults were created for "average " markets. Real markets aren't average! Example: - Crypto ( CME:BTC1! ) : Super volatile → Needs faster, more sensitive indicators. - Blue-Chip Stocks ( NASDAQ:AAPL ) : Less wild swings → Needs slower, smoother indicators. If you use the same RSI settings for both, you'll get bad signals. Calibration fixes this. --- The Pivot Point Method for Calibration One effective approach to calibration is measuring the natural rhythm of price swings between high and low points. Here's how to do it step by step: Step 1: Find Pivot Points on Your Chart Pivot points are like "price turning points." Use TradingView's ZigZag indicator (or draw them manually) to spot these swings. How to Add ZigZag on TradingView : 1. Open your chart. 2. Click "Indicators" → Search " ZigZag " → Select it. 3. Adjust settings (defaults work fine for starters). The ZigZag will draw lines between significant highs (peaks) and lows (valleys). --- Step 2: Measure the "Rhythm" of the Market Count the bars (candles) between pivot points to find the market's natural cycle. Example : - If Bitcoin swings from peak to peak every 14 bars on average, its "cycle" is 14 bars. - If Apple does this every 16 bars, its cycle is 16 bars. In the picture above, we used the Williams Fractal to identify pivots. Formula for Indicator Settings : - RSI Period = Half the average cycle → If cycle = 16 bars → RSI = 8 days. - MACD Settings : Fast EMA = ¼ cycle, Slow EMA = ½ cycle → Cycle = 16 → Fast EMA = 4, Slow EMA = 8 --- Step 3: Test Your Calibrated Indicators Backtest on TradingView : 1. Add your indicator (e.g., RSI) with the new settings. 2. Use the Strategy Tester (click "Add to Chart" → " RSI Strategy ") to see if signals improve. Look For : - Fewer false signals (e.g., RSI saying "oversold" too early). - Clearer trends (MACD crossovers matching price moves). --- Calibrating Popular Indicators (Simple Rules) 1. RSI (Relative Strength Index) - Default : 14 days. - Calibrated : Half the average cycle length. - Example : Cycle = 16 bars → RSI = 8 days. Why It Works : Shorter RSI reacts faster to volatile markets (like crypto). 2. MACD - Default : 12, 26, 9. - Calibrated : - Fast EMA = ¼ of cycle. - Slow EMA = ½ of cycle. - Signal Line = ⅙ of cycle. - Example : Cycle = 20 → Fast = 5, Slow = 10, Signal = 3. Why It Works : Matches the asset's natural momentum shifts. 3. Williams %R - Default : 14 days. - Calibrated : Same as RSI (half the cycle). --- How to Avoid Common Mistakes Mistake 1 : Overfitting (Making It Too Perfect for the Past) - Problem : If you calibrate too precisely to old data, it might fail in the future. - Fix : Test on 2 types of data: 1. Training Data : First 70% of your chart (to calibrate). 2. Testing Data : Last 30% (to check if it still works). Mistake 2 : Ignoring Market Changes - Problem : What works today might not work next month. - Fix : Recheck your settings every 3 months or after big news (e.g., Fed rate hikes). --- Free Tools to Help (No Coding Needed) 1. TradingView's "Auto-Detect Cycle" Scripts Search for indicators like "Cycle", "RSI Adaptive" or " Rainbow Adaptive RSI " in TradingView's public library. These automatically calculate cycle lengths (Not tested). 2. Adaptive MACD/RSI Indicators Try pre-built adaptive indicators like: - Adaptive MACD : Adjusts itself based on volatility. - Dynamic Pivot : Uses pivots to set stop-loss and take-profit levels. --- Building a Simple Pivot Calibration System Basic ZigZag Calibrator Method : 1. Add ZigZag to your chart. 2. Manually count the bars between 5 recent swings. 3. Calculate the average → Divide by 2 → Use that number for your RSI/MACD. Example : - Swings: 12, 14, 16, 10, 8 bars → Average = 12. - Calibrated RSI = 6 days. --- Why This Works (Without the Math) Markets move in waves. By matching your indicator's speed to the wave length, you "surf" the trend instead of fighting it. Research shows adaptive methods like this beat default settings. The Science Behind It When you calibrate to an instrument's natural rhythm: - Oscillators (RSI, %R) catch extremes at the right time - Trend indicators (MACD) signal changes faster - Volatility bands (Bollinger Bands) expand and contract appropriately --- A Step Further: Multi-Timeframe Calibration For even better results, calibrate across timeframes: 1. Calculate cycles on daily charts for swing trading 2. Calculate cycles on 4-hour charts for day trading 3. Use both calibrated indicators together for confirmation --- Final Tips for Beginners 1. Start Small : Calibrate one indicator (like RSI) first. 2. Use Free Tools : TradingView has thousands of free scripts to automate calculations. 3. Keep Records : Document what settings work for which assets. 4. Be Patient : Finding the right calibration takes time, but the results are worth it. Calibration isn't about being perfect—it's about making your tools work better for specific markets . Happy trading!

Education

Using The CRADLE Pattern To Time/Execute Trades This simple video highlights one of my newest pattern definitions - the Cradle Pattern. In addition to the many other patterns my technology identified, this Cradle Pattern seems to be a constant type of price construct. I'm sharing it with all of you so you can learn how to identify it and use it for your trading. Ideally, this pattern represents FLAGGING after a trend phase. It is a consolidation of price within a flag after a broad trending phase. It usually resolves in the direction of the major trend, but can present a very solid reversal trigger if the upper/lower pullback range is broken (see the examples in this video). Learn it. Use it. Price is the ultimate indicator. Learn to read price data more efficiently to become a better trader. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver

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10:49

Trend Changing Pattern (TCP) Explained Introduction One of the most important skills in forex trading is learning how to read price action and understand what the market is telling you. Price is not just numbers — it’s the collective perception of traders, making it the most reliable leading indicator available. Today, I want to explain a powerful concept known as the Trend Changing Pattern (TCP) — a crucial tool for identifying potential market reversals and shifts in trend direction. 📈 What Is a Trend Changing Pattern? In any trending market, whether it's an uptrend or downtrend, the trend won’t change easily. The strength of the trend and the timeframe you're trading on will determine how long it takes for a true reversal to occur. One key signal of a trend change is a shift in momentum: In an uptrend, when a momentum low forms during a pullback, it can be a sign that the trend is beginning to reverse. In a downtrend, a momentum high during a pullback can signal a potential bullish reversal. These are what we refer to as Trend Changing Patterns (TCPs) — moments where the structure of the market starts to shift. ⚠️ Watch for Manipulation After the TCP After a TCP appears, it's common to see price manipulation before the new trend fully takes hold: In an uptrend, price may return to manipulate the previous high before continuing down. In a downtrend, price often dips to manipulate the previous low before reversing higher. Being aware of this common liquidity grab helps traders avoid being trapped and instead position themselves in alignment with the new trend. 🧠 Final Thoughts Understanding how to spot and interpret a Trend Changing Pattern gives you a major edge in forex trading. It helps you stay ahead of the market and make informed decisions based on price action, not emotion. 🎥 In the video, I go into more detail about momentum highs and lows, and how to recognize these key patterns in real time. Be sure to check it out if you want to sharpen your trend reversal strategy. Wishing you success on your trading journey! 🚀

Education

18:46

by Charts247TradingAcademy

Ultimate Guide to Mastering Chart Patterns Chart patterns are essential tools for traders looking to identify high-probability setups based on price action. Among the most reliable continuation and reversal patterns are triangles, wedges, and flags. These formations help traders anticipate market direction and make informed decisions based on breakout potential, trend strength, and volume confirmation. In this guide, we’ll explore the key characteristics, trading strategies, and confirmation techniques for each of these patterns to improve trade execution and risk management. Triangle Patterns Types of Triangle Patterns Triangles are consolidation patterns that indicate a period of indecision before price continues in the direction of the breakout. There are three main types of triangle patterns: Ascending Triangle – A bullish continuation pattern where the price forms higher lows while resistance remains flat. Descending Triangle – A bearish continuation pattern where the price forms lower highs while support remains flat. Symmetrical Triangle – A neutral pattern where price forms lower highs and higher lows, squeezing into an apex before breaking out. How to Trade Triangles Identify the Triangle Formation: Look for at least two touchpoints on each trendline (support and resistance) to confirm the pattern. Wait for Breakout Confirmation: The price should break above resistance (bullish) or below support (bearish) with strong volume. Set Entry & Stop-Loss Levels: Enter the trade after a candle closes beyond the breakout point. Set a stop-loss below the most recent swing low (for bullish trades) or above the swing high (for bearish trades). Measure Target Price: The expected move is typically equal to the height of the triangle measured from the widest part of the pattern. Wedge Patterns Types of Wedge Patterns Wedges are similar to triangles but are characterized by sloping trendlines that converge in the same direction. They indicate a potential trend reversal or continuation depending on the breakout direction. Rising Wedge – A bearish reversal pattern that forms during uptrends. The price makes higher highs and higher lows, but the slope narrows, signaling weakening momentum before a breakdown. Falling Wedge – A bullish reversal pattern that forms during downtrends. The price makes lower highs and lower lows within a narrowing channel before a breakout to the upside. How to Trade Wedges Identify the Wedge Pattern: Look for a contracting price range within two sloping trendlines. Watch for a Breakout: The price should break either above (for falling wedges) or below (for rising wedges) with increasing volume. Confirm the Breakout: Use additional indicators such as RSI divergence or moving average crossovers to validate the move. Set Entry, Stop-Loss, and Target: Enter after the breakout candle closes beyond the trendline, with a stop-loss outside the opposite side of the wedge. Target the height of the wedge projected from the breakout point. Flag Patterns Characteristics of Flag Patterns Flag patterns are continuation patterns that occur after a strong impulsive move (flagpole), followed by a period of consolidation (flag) before price resumes the trend. Flags can be classified as: Bullish Flag – Forms after a strong upward move, followed by a downward-sloping consolidation. Bearish Flag – Forms after a strong downward move, followed by an upward-sloping consolidation. How to Trade Flag Patterns Identify the Flagpole: Look for a sharp price move in one direction, which forms the base of the flag. Confirm the Flag Formation: Price consolidates within parallel trendlines that slightly slope against the prior trend. Wait for the Breakout: Enter when price breaks out of the flag pattern in the direction of the previous trend with strong volume. Measure Target Price: The price target is typically equal to the length of the flagpole projected from the breakout point. Set Stop-Loss: Place the stop-loss below the lower boundary of the flag (for bullish flags) or above the upper boundary (for bearish flags). Common Mistakes & How to Avoid Them Trading Before Confirmation: Many traders enter too early without waiting for a breakout confirmation, leading to false signals. Ignoring Volume: Breakouts should be accompanied by a volume surge for validation; weak volume can indicate a fake breakout. Setting Tight Stop-Losses: Giving the trade enough room to breathe by placing stops outside key support/resistance levels prevents getting stopped out prematurely. Forgetting to Manage Risk: Always follow proper risk-reward ratios (at least 1:2) to ensure profitable long-term trading. Final Thoughts Triangle, wedge, and flag patterns are powerful tools for traders who understand their structure and breakout behavior. By combining these patterns with volume analysis, trend confirmation indicators, and proper risk management, traders can increase their chances of success. Whether you're trading stocks, forex, or crypto, mastering these patterns will enhance your ability to navigate the markets efficiently. __________________________________________ 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! 📈

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2 April Liberation Day: USA-Europe War Impact on Forex Hi, I'm Forex Trader Andrea Russo and today I want to talk to you about an event that is shaking global markets: the tariff war between the United States and Europe. Sunday, April 2, we started in force and new American news, celebrating "Liberation Day" by President Donald Trump. These data, which include 25% tariffs on your steel, aluminum and automobiles, look to rebalance the trade deficit of the United States. However, Europe is not ready to be saved. Ursula von der Leyen, president of the European Commission, has said that Europe has not started this matter, but is ready to defend its interests with a strong plan for control2. The tension between the economic power has caused a significant impact on the market. The European stock exchange has not recorded consistent losses, with Milan having lost 16.4 million euros. Europe has responded with tariffs to its strategic American products, such as whiskey, motorcycles and legumes, and is evaluating further measures to protect its own industry4. Forex Impact This commercial war will bring about repercussions directly on the Forex market. Here's what to expect: Removal of the American Dollar (USD): Protectionist tariffs tend to reforce the dollar, as they reduce the command of foreign currencies for imports. In addition, the increase in the price could lead the Federal Reserve to modify its own monetary policy, increasing interest rates. Volatility of European Currencies: The euro (EUR) may rise in pressures due to economic uncertainties and European constraints. Also the value of the Swedish crown (SEK) may be negatively influenced. Opportunity for the Trader: The volatility generated by these tensions offers opportunities for the Forex trader. Significant movements and exchange rates can be completed with trading strategies soon, but fundamentally adopt rigorous risk management. Conclusion The tariff war between the United States and Europe represents a significant loss for the global economy and the Forex market. Tomorrow will be a crucial day, and the trader will not carefully monitor the resources to adapt their own strategy. Always advise me to do my own analysis and operate with prudence. Happy trading everyone!

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by Andrea_Russo_SwipeUP

Stock Market Dives into Correction? It Happens—Here's What to Do You wake up, check your portfolio, and see a sea of red. The market’s down, your stocks are taking a nosedive, and CNBC is running apocalyptic headlines about an impending crash. Sounds familiar? It’s maybe because we’re in (or super close to) a correction right now — the S&P 500 SP:SPX was down 10% from its record high two weeks ago and a lot of people are unsure what to do. The truth of the matter is, stock market corrections are routine—not as often as the meeting that should’ve been an email, but also not as rare as a winning trade in the Japanese yen ( widow maker is real, yo ). And, most importantly, they’re usually not as catastrophic as they feel in the moment. So, before you hit the panic button (or worse, start revenge trading to “win it all back”), let’s talk about what’s shaking the market right now and how to navigate corrections like a pro. 🤔 First Things First: What’s a Correction? A stock market correction is a drop of 10% or more from a recent high. It’s not a crash, it’s not the end of capitalism, and it’s definitely not a sign that you should liquidate your entire portfolio and move to a remote cabin in the woods. Corrections happen regularly, typically once every year or two. They’re a natural part of market cycles, shaking out excessive speculation and resetting valuations to more reasonable levels. For the record, a drop of 20% is considered a bear market. 🤝 Why the Market’s Getting Jittery Markets don’t move in straight lines, and sometimes they hit turbulence. Lately, two big themes have been dominating headlines: Trump’s Hard-Line Tariffs Hit Hard (And Markets Are Nervous About It) If there’s anything Trump knows how to do is say things online or on-site and move markets. And his hostile and straight up combatant approach to handling international relations has sent traders scrambling to offload risk. With hiked tariffs on China, Europe, and Mexico and Canada, businesses are bracing for severe supply chain disruptions, higher costs, and tighter margins. When tariffs go up, corporate earnings tend to go down—and the market doesn’t like that math. Inflation Just Won’t Quit The Federal Reserve spent most of the last two years trying to tame inflation, and just when it seemed like things were cooling off, it’s creeping back up. The latest readout of the personal consumption expenditures (PCE) report showed prices ticked up more than expected at 2.8% in February. Higher inflation means the Fed might keep interest rates elevated for longer than expected, making borrowing more expensive and slowing down growth. Every new inflation release has investors guessing: Will the Fed cut rates, hold steady, or—worst case—hike again? Between trade wars and stubborn inflation, uncertainty is running high, and that dynamics breeds volatility. But a correction doesn’t mean the market is broken—it just means sentiment has shifted. ⚠️ How NOT to React (aka: Rookie Mistakes to Avoid) When corrections hit, bad decision-making is at an all-time high. Here’s what not to do: Panic selling – Selling at the bottom is a classic rookie move. If you weren’t planning to sell at the highs, why dump everything when it’s down? Trying to time the exact bottom – Good luck. Nobody, not even Warren Buffett, can catch the bottom (not that he’s trying). If you’re waiting for the “perfect” dip, you’ll likely miss the rebound. Going all-in on one asset – Thinking of putting everything into one stock or crypto because it’s “cheap” now? Please don’t. Diversification exists for a reason . Getting glued to financial news – Watching every market update during a correction is like doom-scrolling Google after a mild headache—you’ll only freak yourself out more. Now that we’ve covered what not to do, let’s focus on the smart plays. 💪 So, What Should You Do? If you want to come out of a correction with your sanity (and portfolio) intact, here’s your game plan: 1️⃣ Zoom Out—Corrections Are Temporary The market moves in cycles, and corrections are just part of the game. Historically, corrections last a few months, while bull markets last years. If you’re investing for the long term, a correction is a blip on the chart, not an extinction event. 2️⃣ Review Your Portfolio Like a Hedge Fund Manager Corrections are a great excuse to audit your holdings. Ask yourself: Is this stock/ETF/index still worth holding? Has anything fundamentally changed, or is this just temporary market noise? Do I have too much exposure to one sector? Think of it as spring cleaning for your investments. It's also an opportunity to make some good use of the handy Stock Screener or Stock Heatmap to spot the best (and worst) performers. If something was a FOMO buy and doesn’t belong in your portfolio, consider trimming it. 3️⃣ Buy Selectively, Not Blindly Corrections create opportunities, but that doesn’t mean you should just throw money at every stock that’s down. Some companies deserve their declines ( looking at you, Nikola )—others are just collateral damage in a broader selloff. Look for quality companies with strong earnings, manageable debt, and real growth potential. If they were solid before the correction, they’ll likely recover faster than the overhyped names. Example: Remember when Amazon stock NASDAQ:AMZN tanked 90% in 2000, the dot-com bubble? No, because you were too busy being 2 years old instead of loading up on Jeff Bezos’s dream. And look where the guy’s now. 4️⃣ Do Some Good Old DCA Instead of dumping all your cash into the market at once, use dollar-cost averaging (DCA). Buying in small increments at regular intervals helps you avoid the stress of trying to time the bottom. If prices drop further, you can buy more at an even better price. 5️⃣ Keep Emotions in Check Corrections test your patience and discipline. The best investors don’t let fear dictate their strategy. If you’re getting emotional about your trades, step away from the screen and take a breath. The market will be there when you come back. 👍 The Market Always Bounces Back—Eventually Every correction feels like the worst one while it’s happening. But let’s look at history: The S&P 500 has faced 30+ corrections since 1950. It survived them all. The average correction lasts four months before a recovery begins. After a correction, markets typically rally higher within a year. Unless you believe the global economy is permanently broken (hint: not yet, at least), every major downturn has eventually turned into a new bull run. 🦸‍♂ Final Thought: Be the Hero, Not the Victim Market corrections separate the professionals from the wannabes. The people who panic and sell at the bottom? They usually regret it. The ones who keep a level head, stick to their strategy, and take advantage of good opportunities? They come out stronger. And finally, if you need to take away one thing it’s this: Corrections aren’t the enemy. They’re the price of admission for long-term gains. 👉 Let’s hear it from you! How do you handle corrections, what’s your strategy when the market is in a downturn and what’s in your portfolio then? Share your experience in the comment section!

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Supertrend by Mars This is the explanation of supertrend I wish I had seen ages ago. Great trading tool, but with caveats.

Education

15:02

Behind the Curtain: Macro Indicators That Move the Yen 1. Introduction Japanese Yen Futures (6J), traded on the CME, offer traders a window into one of the world’s most strategically important currencies. The yen is not just Japan’s currency—it’s also a barometer for global risk appetite, a funding vehicle for the carry trade, and a defensive asset when markets turn volatile. But what truly moves Yen Futures? While many traders fixate on central bank statements and geopolitical news, machine learning tells us that economic indicators quietly—but consistently—steer price action. In this article, we apply a Random Forest Regressor to reveal the top macroeconomic indicators driving 6J Futures across daily, weekly, and monthly timeframes, helping traders of all styles align their strategies with the deeper economic current. 2. Understanding Yen Futures Contracts Whether you’re trading institutional size or operating with a retail account, CME Group offers flexible exposure to the Japanese yen through two contracts: o Standard Japanese Yen Futures (6J): Contract Size: ¥12,500,000 Tick Size: 0.0000005 = $6.25 per tick Use Case: Institutional hedging, macro speculation, rate differential trading o Micro JPY/USD Futures (MJY): Contract Size: ¥1,250,000 Tick Size: 0.000001 = $1.25 per tick Use Case: Retail-sized access, position scaling, strategy testing o Margin Requirements: 6J: Approx. $3,300 per contract MJY: Approx. $330 per contract Both products offer deep liquidity and near 24-hour access. Traders use them to express views on interest rate divergence, U.S.-Japan trade dynamics, and global macro shifts—all while adjusting risk through contract size. 3. Daily Timeframe: Top Macro Catalysts Short-term movements in Yen Futures are heavily influenced by U.S. economic data and its impact on yield spreads and capital flow. Machine learning analysis ranks the following three as the most influential for daily returns: 10-Year Treasury Yield: The most sensitive indicator for the yen. Rising U.S. yields widen the U.S.-Japan rate gap, strengthening the dollar and weakening the yen. Drops in yields could create sharp yen rallies. U.S. Trade Balance: A narrowing trade deficit can support the USD via improved capital flow outlook, pressuring the yen. A wider deficit may signal weakening demand for USD, providing potential support for yen futures. Durable Goods Orders: A proxy for economic confidence and future investment. Strong orders suggest economic resilience, which tends to benefit the dollar. Weak numbers may point to a slowdown, prompting defensive yen buying. 4. Weekly Timeframe: Intermediate-Term Indicators Swing traders and macro tacticians often ride trends formed by mid-cycle economic shifts. On a weekly basis, these indicators matter most: Fed Funds Rate: As the foundation of U.S. interest rates, this policy tool steers the entire FX complex. Hawkish surprises can pressure yen futures; dovish turns could strengthen the yen as yield differentials narrow. 10-Year Treasury Yield (again): While impactful daily, the weekly trend gives traders a clearer view of long-term investor positioning and bond market sentiment. Sustained moves signal deeper macro shifts. ISM Manufacturing Employment: This labor-market-linked metric reflects production demand. A drop often precedes softening economic growth, which may boost the yen as traders reduce exposure to riskier assets. 5. Monthly Timeframe: Structural Macro Forces For position traders and macro investors, longer-term flows into the Japanese yen are shaped by broader inflationary trends, liquidity shifts, and housing demand. Machine learning surfaced the following as top monthly influences on Yen Futures: PPI: Processed Foods and Feeds: A unique upstream inflation gauge. Rising producer prices—especially in essentials like food—can increase expectations for tightening, influencing global yield differentials. For the yen, which thrives when inflation is low, surging PPI may drive USD demand and weaken the yen. M2 Money Supply: Reflects monetary liquidity. A sharp increase in M2 may spark inflation fears, sending interest rates—and the dollar—higher, pressuring the yen. Conversely, slower M2 growth can support the yen as global liquidity tightens. Housing Starts: Serves as a growth thermometer. Robust housing data suggests strong domestic demand in the U.S., favoring the dollar over the yen. Weakness in this sector may support yen strength as traders rotate defensively. 6. Trade Style Alignment with Macro Data Each indicator resonates differently depending on the trading style and timeframe: Day Traders: React to real-time changes in 10-Year Yields, Durable Goods Orders, and Trade Balance. These traders seek to capitalize on intraday volatility around economic releases that impact yield spreads and risk appetite. Swing Traders: Position around Fed Funds Rate changes, weekly shifts in Treasury yields, or deteriorating labor signals such as ISM Employment. Weekly data can establish trends that last multiple sessions, making it ideal for this style. Position Traders: Monitor PPI, M2, and Housing Starts for broader macro shifts. These traders align their exposure with long-term shifts in capital flow and inflation expectations, often holding positions for weeks or more. Whatever the style, syncing your trading plan with the data release calendar and macro backdrop can improve timing and conviction. 7. Risk Management The Japanese yen is a globally respected safe-haven currency, and its volatility often spikes during geopolitical stress or liquidity events. Risk must be managed proactively, especially in leveraged futures products. 8. Conclusion Japanese Yen Futures are a favorite among global macro traders because they reflect interest rate divergence, risk sentiment, and global liquidity flows. While headlines grab attention, data tells the real story. Stay tuned for the next installment of the "Behind the Curtain" series, where we continue uncovering what really moves the futures markets. 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.

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Smart Money Technique (SMT) Divergences - The Ultimate Guide Introduction SMT Divergences are a powerful concept used by professional traders to spot inefficiencies in the market. By comparing correlated assets, traders can identify hidden opportunities where one market shows strength while the other shows weakness. This guide will break down the major SMT divergences: EURUSD/GBPUSD, US100/US500, and XAUUSD/XAGUSD . --- What is SMT Divergence? SMT Divergence occurs when two correlated assets do not move in sync, signaling potential liquidity grabs or market inefficiencies. These divergences can be used to confirm trend reversals, identify smart money movements, and improve trade precision. Key Concepts: - If one asset makes a higher high while the correlated asset fails to do so, this suggests potential weakness in the pair making the higher high. - If one asset makes a lower low while the correlated asset does not, this suggests potential strength in the pair that did not make a lower low. - Smart Money often exploits these inefficiencies to engineer liquidity hunts before moving price in the intended direction. --- EURUSD vs. GBPUSD SMT Divergence These two forex pairs are highly correlated because both share the USD as the quote currency. However, when divergence occurs, it often signals liquidity manipulations. How to Use: - If GBPUSD makes a higher high but EURUSD does not, GBPUSD may be trapping breakout traders before reversing. - If EURUSD makes a lower low but GBPUSD does not, EURUSD might be in a liquidity grab, signaling a potential reversal. --- US100 vs. US500 SMT Divergence The NASDAQ (US100) and S&P 500 (US500) are both major indices with a strong correlation, but tech-heavy NASDAQ can sometimes lead or lag the S&P. How to Use: - If US100 makes a higher high but US500 does not, it suggests US100 is extended and may reverse soon. - If US500 makes a lower low but US100 does not, US500 might be experiencing a liquidity grab before a reversal. --- XAUUSD vs. XAGUSD SMT Divergence Gold (XAUUSD) and Silver (XAGUSD) have a historic correlation. However, due to differences in volatility and liquidity, they can diverge, presenting trading opportunities. How to Use: - If Gold makes a higher high but Silver does not, Gold might be overextended and ready to reverse. - If Silver makes a lower low but Gold does not, Silver might be in a liquidity grab, signaling strength. --- Indicator Used for SMT Divergences To simplify the process of identifying SMT divergences, this guide utilizes the TradingView indicator TehThomas ICT SMT Divergences . This tool automatically detects divergences between correlated assets, highlighting potential trade opportunities. You can access the indicator here: Why Use This Indicator? - Automatically plots divergences, saving time on manual comparisons. - Works across multiple asset classes (Forex, Indices, Metals, etc.). - Helps traders spot Smart Money inefficiencies with ease. --- Final Tips for Trading SMT Divergences 1. Use Higher Timeframes for Confirmation: SMT Divergences on 1H or 4H hold more weight than those on lower timeframes. 2. Combine with Other Confluences: ICT concepts like Order Blocks, FVGs, or liquidity sweeps can strengthen the SMT setup. 3. Wait for Market Structure Confirmation: After spotting SMT divergence, look for a market structure shift before entering trades. 4. Be Mindful of Economic Events: Divergences can appear due to news releases, so always check the economic calendar. --- Conclusion SMT Divergences are a valuable tool for traders looking to gain an edge in the markets. By analyzing inefficiencies between correlated assets, traders can anticipate smart money movements and improve trade precision. Practice spotting these divergences on real charts, and soon, you'll develop a keen eye for hidden liquidity traps. Happy trading!

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Precision Trading – How Our Trade Played Out Perfectly Introduction In trading, precision and patience are everything. We don’t chase trades—we wait for the perfect confluence of technical factors to align. This trade idea followed our systematic approach, utilizing ranges, Fibonacci levels, internal & inducement liquidity, break of structure (BOS), entry confirmation patterns, and harmonics. Here’s a breakdown of how it all unfolded. 1. Identifying the Range Before executing, we mapped out the market structure to establish a clear range. The price action showed a well-defined consolidation zone, which helped us anticipate liquidity grabs and potential reversal points. 2. Fibonacci Confluence – 78.20% Level Using the Fibonacci retracement tool, we identified the 78.20% level as a strong reaction point. This aligned with other key technicals, increasing our confidence in the trade setup. 3. Internal & Inducement Liquidity Liquidity is key in trading. We spotted internal liquidity zones where price was likely to manipulate weak hands before the actual move. Inducement liquidity was also present, providing additional confirmation that price would tap into deeper levels before reversing. 4. Break of Structure (BOS) and Entry Confirmation Once BOS occurred in alignment with our anticipated liquidity grab, we looked for our **entry pattern**. The market printed a textbook confirmation, allowing us to enter with precision and minimal risk. 5. Harmonic Pattern for Additional Confluence The final piece of confirmation was a harmonic pattern, further validating our entry. These patterns, when combined with our overall strategy, add an extra layer of probability to our trades. Trade Outcome The execution was flawless! 🎯 The price respected our levels, moved in our favor, and hit our target zones with precision. This is the power of structured analysis and disciplined execution. 📉 Key Takeaway:Never trade blindly! Always have a solid confluence of technicals before taking a trade.** 🔎 What’s your go-to confirmation before entering a trade? Let’s discuss in the comments! 📩 #ForexTrader #ForexLifestyle #ForexSignals #DayTrading #TradingMindset #ForexMoney #PipsOnPips #ForexSuccess #ForexMotivation #MillionaireMindset #TradingStrategy #FXMarket #ForexWins #TradeSmart #MarketAnalysis #WealthBuilding #Investing #PriceAction #ChartAnalysis #Scalping #SwingTrading #FinancialFreedom #MakingMoneyMoves #HustleHard #NoDaysOff #MoneyMindset

Education

by Vusizwe_Capital

The Greatest Opportunity of Your Life : Answering Questions This video is an answer to Luck264's question about potential price rotation. I go into much more details because I want to highlight the need to keep price action in perspective related to overall (broader) and more immediate (shorter-term) trends. Additionally, I try to highlight what I've been trying to tell all of you over the past 3+ years... The next 3-%+ years are the GREATEST OPPORTUNITY OF YOUR LIFE. You can't even imagine the potential for gains unless I try to draw it out for you. So, here you go. This video highlights why price is the ultimate indicator and why my research/data is superior to many other types of analysis. My data is factual, process-based, and results in A or B outcomes. I don't mess around with too many indicators because I find them confusing at times. Price tells me everything I need to know - learn what I do to improve your trading. Hope you enjoy this video. Get Some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver

Education

24:58

ICT Concepts for FX and GOLD traders: 2025 edition 🔍 ICT (Inner Circle Trader) is a trading methodology developed by Michael J. Huddleston. It focuses on market structure, smart money concepts (SMC), and how institutions manipulate liquidity to trap retail traders. 📚 It's not about indicators or over-complication — it's about reading the price action like a pro, understanding where liquidity is, and trading with the banks, not against them. 📐 1. Market Structure Understand Highs & Lows: Identify break of structure (BOS) and change of character (CHOCH) Follow the macro to micro flow: D1 > H4 > M15 for precision entries 🧱 2. Order Blocks (OBs) An order block is the last bullish or bearish candle before a major price move. Banks and institutions place large orders here. Smart traders look for price to return to these areas (mitigation), then enter with tight stop losses. 👉 Think of OBs as institutional footprints on the chart. 💧 3. Liquidity Zones Equal highs/lows, trendline touches, support/resistance — these are liquidity traps. ICT teaches that price often hunts liquidity before reversing. That’s why many retail traders get stopped out. Learn to trade into liquidity, not off it. 🔄 4. Fair Value Gaps (FVGs) Also called imbalances — when price moves too fast and leaves gaps. Price often retraces to "fill the gap" — a key entry point for ICT traders. 🥇 ICT for Gold & Forex in 2025 💰 Why It Works for XAUUSD & Majors: Gold is a highly manipulated asset, perfect for ICT-style trading. It responds beautifully to liquidity grabs, order blocks, and Asian–London–New York session transitions. Forex majors (EUR/USD, GBP/USD, etc.) are also ideal since they’re heavily influenced by institutional flow and news-driven liquidity hunts. 🕐 Timing Is Everything Trade Killzones: 📍 London Killzone: 2AM–5AM EST 📍 New York Killzone: 7AM–10AM EST These are high-volume sessions where institutions make their moves. 📈 Typical ICT Setup ▪️Spot liquidity zone above or below recent price ▪️Wait for liquidity sweep (stop hunt) ▪️Identify nearby order block or FVG ▪️Enter on a pullback into OB/FVG ▪️Set tight SL just past the recent swing Target internal range, opposing OB, or next liquidity level 👨‍💻 Why FX/GOLD Traders Love ICT ✅ It’s clean, no indicators, and highly logical ✅ Great for part-time trading — 1 or 2 trades a day ✅ Feels like "leveling up" your understanding of the market ✅ Perfect for backtesting and journaling on platforms like TradingView or SmartCharts ✅ Easy to integrate into algo-based systems or EAs for semi-automation If you’re tired of indicators and guessing, and want to trade like the institutions, ICT is a game changer. In 2025, more prop firms and traders are applying ICT concepts to dominate markets like gold, forex, and even crypto. 🧭 Master the method. Understand the logic. Ride with the smart money. 🔥 Welcome to the next level of trading.

Education

by ProjectSyndicate

Convexity-based trade scenario using LOAR stock and the April 17 Yo traders - Let’s map out a convexity-based trade scenario using LOAR stock and the April 17, 2025 $75 Call option — currently trading at $1.00, with the stock at $65.97 and only 18 days to expiry. 🔍 Step-by-Step Breakdown: 🧠 1. Basic Structure You’re buying the LOAR Apr17 $75 call at $1.00. This is a deep OTM bet (~13.7% above current price). You’re betting on a short-term move to $75+, meaning volatility spike or news catalyst. ⚙️ 2. Convexity Setup Convexity means: Small risk, asymmetric reward If LOAR stays flat or dips → you lose $1 per contract If LOAR rips to $80+ → this option could return 5x to 10x+ LOAR Price at Expiry Option Intrinsic Value Profit/Loss $66 (flat) $0 -$1.00 $70 $0 -$1.00 $75 (strike) $0 -$1.00 $77 $2.00 +$1.00 $80 $5.00 +$4.00 (5x) $85 $10.00 +$9.00 (9x) 🧾 3. Chart + Sentiment Setup Looking at the TradingView chart: Price Action: LOAR is basing around $66 after a steep downtrend — potential reversal pattern Volume is light, but some buy pressure is visible MACD: Appears to be flattening and potentially crossing bullish RSI: ~40s: Oversold-to-neutral zone. Could support upward bounce. Earnings coming up (E icon): Strong potential for a catalyst move This setup enhances convexity, because earnings can produce gap moves that DOTM options profit from disproportionately. 🔮 4. Convexity Scenario Thesis (Narrative) "LOAR has pulled back hard and is showing signs of base-building. Earnings are in 2–3 weeks. If guidance surprises to the upside — or macro tailwinds hit the sector — a short squeeze or re-rating toward $75–80 could occur. I’m risking $1 per contract for a shot at $5–10. If it doesn’t move, I accept the full loss." This is a classic event-driven convexity play. ⚠️ 5. Risks & Considerations Time decay is brutal: With only 18 days left, theta decay accelerates daily IV Crush post-earnings could hurt even if the stock moves You need a fast, strong move, ideally before or at earnings Position sizing is critical: This is a "lottery ticket" — don’t over-allocate ✅ 6. Ideal for Your Strategy If: You're making many small bets like this across tickers/catalysts You’re not trying to be “right” often, but “big” occasionally You have capital discipline and uncorrelated base assets 🧮 Position Size: Option price = $1.00 per contract You buy 100 contracts of the $75 call Total risk = $100 Each $1.00 move above $75 = $100 profit per $1, since 100 contracts × 100 shares/contract = 10,000 shares exposure 📈 Upside Payoff Table LOAR Price at Expiry Intrinsic Value Total Payoff Net P&L Return on $100 $65–$74.99 $0.00 $0 -$100 -100% $76 $1.00 $1 × 10,000 = $10,000 +$9,900 +9,900% $77 $2.00 $20,000 +$19,900 +19,900% $80 $5.00 $50,000 +$49,900 +49,900% $85 $10.00 $100,000 +$99,900 +99,900% $90 $15.00 $150,000 +$149,900 +149,900% $100 $25.00 $250,000 +$249,900 +249,900% 🧠 Interpretation Max Loss: $100 (fixed, regardless of LOAR's move down or sideways) Breakeven at Expiry: LOAR must hit $76.00 10x return if LOAR trades just $1 above strike Massive asymmetry — you risk $100 for a shot at $10k–250k if LOAR rips on earnings or news. 📌 Real-World Considerations: You might exit early if the option spikes in value before expiry (e.g., stock runs to $72 with 5 days left). Liquidity may limit large size fills. Volatility matters: IV spike pre-earnings or a big gap post-earnings increases your chance of profit. 📊 Convex Payoff Table for LOAR Apr17 $75 Call (100 Contracts, $100 Risk) LOAR Price at Expiry % Move from $65.97 Intrinsic Value Total Payoff Net P&L Return on $100 $65–$74.99 0% to +13.6% $0.00 $0 -$100 -100% $76 +15.2% $1.00 $10,000 +$9,900 +9,900% $77 +17.0% $2.00 $20,000 +$19,900 +19,900% $80 +21.3% $5.00 $50,000 +$49,900 +49,900% $85 +28.9% $10.00 $100,000 +$99,900 +99,900% $90 +36.4% $15.00 $150,000 +$149,900 +149,900% $100 +51.6% $25.00 $250,000 +$249,900 +249,900% 🧠 Takeaway: Even a 15% move turns your $100 into $10,000 — this is why convex trades are so powerful. But the trade-off is probability: the odds of a 15–50%+ move in 18 days are low, which is why risk is capped and position sizing matters.

Education

by TheHouseofTrade

3 Best Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance . Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend . In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. ❤️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.

Education

by VasilyTrader

Easy & Effective Multi-Timeframe Trading Strategy I show you how to use simple market structure to determine a bias, 18 period moving average to confirm trend on entry timeframe, and how to use the %R to time your entries into the market in alignment with the dominant momentum.

Education

07:44

by Tradius_Trades

What Are the Inner Circle Trading Concepts? What Are the Inner Circle Trading Concepts? Inner Circle Trading (ICT) offers a sophisticated lens through which traders can view and interpret market movements, providing traders with insights that go beyond conventional technical analysis. This article explores key ICT concepts, aiming to equip traders with a thorough understanding of how these insights can be applied to enhance their trading decisions. Introduction to the Inner Circle Trading Methodology Inner Circle Trading (ICT) methodology is a sophisticated approach to financial markets that zeroes in on the behaviours of large institutional traders. Unlike conventional trading methods, ICT is not merely about recognising patterns in price movements but involves understanding the intentions behind those movements. It is part of the broader Smart Money Concept (SMC), which analyses how major players influence the market. Key Inner Circle Trading Concepts Within the ICT methodology, there are many concepts to learn. Below, we’ve explained the most fundamental ideas central to ICT trading. Structure Understanding the structure of a market is fundamental to effectively employing the ICT methodology. In the context of ICT, market structure is defined by the identification of trends through specific patterns of highs and lows. Market Structure A market trend is typically characterised by a series of higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. This sequential pattern provides a visual representation of market sentiment and momentum. Importantly, market trends are fractal, replicating similar patterns at different scales or timeframes. For example, what appears as a bearish trend on a short timeframe might merely be a corrective phase within a larger bullish trend. By understanding this fractal nature, traders can better align their strategies with the prevailing trend at different trading intervals. Break of Structure (BOS) A Break of Structure occurs when there is a clear deviation from these established patterns of highs and lows. In an uptrend, a BOS is signalled by prices exceeding a previous high without falling below the most recent higher low, confirming the strength and continuation of the uptrend. Conversely, in a downtrend, a BOS is indicated when prices drop below a previous low without breaching the prior lower high, signifying that the downtrend remains strong. Identifying a BOS gives traders valuable clues about the continuation of the current market direction. Change of Character (CHoCH) The Change of Character in a market happens when there is a noticeable alteration in the behaviour of price movements, suggesting a potential reversal of a given trend. This might be seen in an uptrend where the price fails to reach a new high and then breaks below a recent higher low, indicating that the buying momentum is waning and a bearish reversal is possible. Identifying a CHoCH helps traders recognise when the market momentum is shifting, which is critical for adjusting positions to capitalise on or protect against a new trend. Market Structure Shift (MSS) A Market Structure Shift is a significant change in the market that can disrupt the existing trend. This specific type of CHoCH is typically marked by a price moving sharply (a displacement) through a key structural level, such as a higher low in an uptrend or a lower high in a downtrend. These shifts can signal a profound change in market dynamics, with the sharp move often preceding a new sustained trend. Recognising an MSS allows traders to reevaluate their current bias and adapt to a new trend, given its clear signal. Order Blocks Order blocks are a central component of ICT trading, providing crucial insights into potential areas where the price may react strongly due to significant buy or sell interests from large market participants. Regular Order Blocks A regular order block is an area on the price chart representing a concentration of buying (demand zone) or selling (supply zone) activity. In an uptrend, a bullish order block is identified during a downward price movement and marks the last area of selling before a substantial upward price movement occurs. Conversely, a bearish order block forms in an uptrend where the last buying action appears before a significant downward price shift. In the ICT trading strategy, order blocks are seen as reversal areas. So, if the price revisits a bullish order block following a BOS higher, it’s assumed that the block will hold and prompt a reversal that produces a new higher high. Breaker Blocks Breaker blocks play a crucial role in identifying trend reversals. They are typically formed when the price makes a BOS before reversing and breaking beyond an order block that should hold if the established market structure is to be maintained. This formation indicates that liquidity has been taken. For instance, in an uptrend, if the price creates a new high but then reverses below the previous higher low, the bullish order block above the low becomes a breaker block. A breaker block can be an area that prompts a reversal as the new trend unfolds; it’s a similar concept to support becoming resistance and vice versa. Mitigation Blocks Mitigation blocks are similar to breaker blocks, except they occur after a failure swing, where the price attempts but fails to surpass a previous peak in an uptrend or a previous trough in a downtrend. This pattern indicates a loss of momentum and potential reversal as the price fails to sustain its previous direction. For example, in an uptrend, if the price makes a lower high and then breaks the structure by dropping below the previous low, the order block formed at the previous low becomes a mitigation block. These blocks are critical for traders because they’re also expected to produce a reversal if a new trend has been set in motion. Liquidity Liquidity refers to areas on the price chart with a high concentration of trading activity, typically marked by stop orders from retail traders. Buy- and Sell-Side Liquidity Buy-side liquidity is found where there is a likely accumulation of short-selling traders' stop orders, typically above recent highs. Conversely, sell-side liquidity is located below recent lows, where bullish traders' stop orders accumulate. When prices touch these areas, activating stop orders can cause a reversal, presenting a potential level of support or resistance. Liquidity Grabs A liquidity grab occurs when the price quickly spikes into these high-density order areas, triggering stops and then reversing direction. In ICT theory, this action is often orchestrated by larger players aiming to capitalise on the flurry of orders to execute their large-volume trades with minimal slippage. It's a strategic move that temporarily shifts price momentum, usually just long enough to trigger the stops before the market direction reverses. Inducement An inducement is a specific type of liquidity grab that triggers stops and entices other traders to enter the market. It often appears as a peak or trough, typically into an area of liquidity, in a minor counter-trend within the larger market trend. Inducements are designed by smart money to create an illusion of a trend change, prompting an influx of retail trading in the wrong direction. Once the retail traders have committed, the price swiftly reverses, aligning back with the original major trend. Trending Movements In the Inner Circle Trading methodology, two specific types of sharp trending movements signal significant shifts in market dynamics: fair value gaps and displacements. Fair Value Gaps A fair value gap (FVG) occurs when there is a noticeable absence of trading within a price range, typically represented by a swift and substantial price move without retracement. This gap often forms between the wicks of two adjacent candles where no trading has occurred, signifying a strong directional push. Fair value gaps are important because they indicate areas on the chart where the price may return to "fill" the gap, usually before meeting an order block, offering potential trading opportunities as the market seeks to establish equilibrium. Displacements Displacements, also known as liquidity voids, are characterised by sudden, forceful price movements occurring between two chart levels and lacking the typical gradual trading activity observed in between. They are essentially amplified and more substantial versions of fair value gaps, often spanning multiple candles and FVGs, signalling a heightened imbalance between buy and sell orders. Other Components Beyond these ICT concepts, there are a few other niche components. Kill Zones Kill Zones refer to specific timeframes during the trading day when market activity significantly increases due to the opening or closing of major financial centres. These periods are crucial for traders as they often set the tone for price movements based on the increased volume and volatility: Optimal Trade Entry An optimal trade entry (OTE) is a type of Inner Circle trading strategy, found using Fibonacci retracement levels. After an inducement that prompts a displacement (leaving behind an FVG), traders use the Fibonacci retracement tool to pinpoint entry areas. The first point is set at the major high or low that prompts the displacement, while the second point is set at the next significant swing high or low that forms. In a bearish movement, for example, the initial point is set at the swing high before the displacement and the subsequent point at the new swing low. Traders often look to the 61.8% to 78.6% retracement level for entries. Balanced Price Range A balanced price range is observed when two opposing displacements create FVGs in a short timeframe, indicating a broad zone of price consolidation. During this period, prices typically test both extremes, attempting to fill the gaps. This scenario offers traders potential zones for trend reversals as the price seeks to establish a new equilibrium, as well as key levels to watch for a breakout. The Bottom Line Understanding ICT concepts gives traders the tools to decode complex market signals and align their strategies with the influential trends shaped by the largest market participants. For those looking to apply these sophisticated trading techniques practically, opening an FXOpen account can be a great step towards engaging with the markets through a robust platform designed to support advanced trading strategies. FAQs What Are ICT Concepts in Trading? ICT (Inner Circle Trading) concepts encompass a series of advanced trading principles that focus on replicating the strategies of large institutional players. These concepts include liquidity zones, order blocks, market structure shifts, and optimal trade entries, all aimed at understanding and anticipating significant market movements. What Is ICT in Trading? ICT in trading refers to the Inner Circle Trading methodology, a strategy developed to align smaller traders’ actions with those of more influential market participants. It utilises specific market phenomena, such as order blocks and liquidity patterns, to analyse price movements and improve trading outcomes. What Is ICT Trading? ICT trading is the application of concepts that seek to identify patterns and structures that indicate potential price changes driven by institutional activities, aiming to capitalise on these movements. What Is ICT Strategy? An ICT strategy combines market analysis techniques to identify where significant market players are likely to influence prices. This includes analysing price levels where large volumes of buy or sell orders are anticipated to occur and identifying key times when market moves are most likely. Is ICT Better Than SMC? Comparing ICT and SMC (Smart Money Concept) is challenging as ICT is essentially a subset of SMC. While SMC provides a broader overview of how institutional money influences the markets, ICT offers more specific techniques and terms like inducements and displacements. Whether one is better depends on the trader’s specific needs and alignment with these methodologies’ intricacies. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Education

Title: How to Spot Potential Price Reversals: Part 2 A subject within technical analysis that many find difficult to apply to their day-to-day trading is the ability to spot reversals in price. Yesterday we posted part 1 of this 2 part educational series, where we used GBPUSD as an example of how you could identify and trade a Head and Shoulders/Reversed Head and Shoulders pattern. In today’s post we discuss a Double Top/Double Bottom, using a recent US 100 example. Our intention is to help you understand why price activity is reversing and highlight how knowledge of this may be applied within your own individual trading strategies. The Double Top Reversal: The Double Top, is formed by 2 distinct price highs. This pattern highlights the potential, • reversal of a previous uptrend in price, into a phase of price weakness • reversal of a previous downtrend in price into a more prolonged period of price strength. In this example, we are going to talk about a bearish reversal in price called a Double Top. Points to Note: A Double Top • An uptrend in price must be in place for the pattern to form. • A Double Top pattern is made up of 2 clear highs and one low, forming a letter ‘M’ shape on a price chart. • This pattern reflects an inability of buyers to push price activity above a previous peak in price, potentially highlighting a negative shift in sentiment and sellers gaining the upper hand. This is regarded as a ‘weak test’ of a previous price failure high and leaves 2 price peaks at, or very close to each other. • A horizontal trendline is drawn at the low between the 2 peaks, which highlights the neckline of the pattern. If this is broken on a closing basis, the pattern is completed, reflecting a negative sentiment shift and the potential of further price weakness. Point to Note: To understand a bullish reversal, known as a ‘Double Bottom’ please simply follow the opposite analysis of what is highlighted above. US 100 Example: In the chart below, we look at the US 100 index and the formation of a Double Top pattern from earlier in 2025. As with any bearish reversal in price, a clear uptrend and extended price advance must have been seen for the reversal pattern to be valid. On the chart above, this was reflected by the advance from the August 5th 2024 low up into the December 16th price high. The Double Top pattern is made up of 2 price highs close or at the same level as each other, with a low trade in the middle, which forms a letter ‘M’ on the chart (see below). In this example above, the highs are marked by 22142, the December 16th and 22226, the February 18th highs, with the 20477 level posted on January 13th represents the low traded in the middle, which helps to form the ‘M’. The Neckline of the pattern is drawn using a horizontal line at the 20477 January 13th low, with the Double Top pattern completed on closes below this level. Potential then turns towards a more extended phase of price weakness to reverse the previous uptrend, even opening the possibility a new downtrend in price being formed. Does the Double Top Pattern Suggest a Potential Price Objective? Yes, it does. This can be done by measuring the height of the 2nd peak in price down to the Neckline level at that time, this distance is projected lower from the point the neckline was broken, suggesting a possible minimum objective for any future price decline. In the example above, the 2nd high was at 22226, posted on February 18th 2025, with the Neckline at 20477, meaning the height of the pattern was 1749 (points). On February 27th the Neckline of the pattern was broken on a closing basis. This means… 20477 – 1749 = 18728 as a minimum potential price objective for the Double Top pattern. Of course, as with any technical pattern, completion is not a guarantee of a significant phase of price movement, with much still dependent on future sentiment and price trends. Therefore, if initiating a trade based on a Double Top pattern, you must ALWAYS place a stop loss to protect against any unforeseen event or price movement. This stop loss should initially be placed just above the level of the 2nd price high, as any break negates the pattern, meaning we were wrong to class the pattern as we did. Hopefully, as prices fall after completion of the pattern, you can consider moving your stop loss lower, keeping it just above lower resistance levels to protect your position and lock in potential gains. While both the Head and Shoulders and Double Top/Bottom patterns can take a prolonged period to form and we must be patient to wait for completion, they reflect important signals indicating potential changes in price sentiment and direction. By understanding how and why these patterns form can offer an important insight to potential price activity that can help to support day to day decision making when deciding on trading strategies. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

Education

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