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Mastering Fibonacci Retracements & Extensions on TradingView!1. Introduction to Fibonacci in Trading Fibonacci levels are widely used in trading to identify potential reversal zones, support, and resistance levels. These levels are derived from the Fibonacci sequence, a mathematical pattern found in nature and financial markets. Traders rely on Fibonacci retracements to find potential entry points and Fibonacci extensions to determine profit targets. The most critical area of interest is the golden pocket zone, which ranges between 0.618 and 0.65. Price often reacts strongly in this zone, either reversing or continuing its trend, making it a key level for traders to watch. 2. Key Fibonacci Levels for Trading Several Fibonacci levels are commonly used in trading. The 0.5 level, although not an actual Fibonacci number, is often observed as a psychological retracement level. The golden pocket zone, which consists of the 0.618 and 0.65 levels, is considered the most important for potential reversals. The 0.786 level represents a deeper retracement and is frequently used by traders for more precise entries before a strong price move. On the other hand, Fibonacci extensions, such as -0.618 and -1.618, are used to project potential price targets. These levels serve as reference points for identifying support and resistance, allowing traders to make more informed trading decisions. 3. How to Draw Fibonacci Retracements on TradingView To effectively use Fibonacci retracements, traders must first identify a swing high and a swing low on the chart. This process starts by recognizing a strong uptrend or downtrend. Once identified, the Fibonacci tool in TradingView can be used to plot retracement levels. By selecting the swing low and dragging it to the swing high in a bullish setup, or vice versa in a bearish setup, traders can visualize the key Fibonacci levels. It is essential to adjust the settings to only display 0.5, 0.618, 0.65, 0.786, -0.618, and -1.618 for better clarity. This method provides a structured approach to analyzing potential price reactions and planning trades with greater accuracy. 4. Trading Strategies Using Fibonacci Levels A. The Golden Pocket Entry Strategy (0.618–0.65) One of the most reliable trading strategies involving Fibonacci retracements is based on the golden pocket zone. When price retraces to the 0.618–0.65 area, traders look for confirmation signals before entering a trade. These confirmations may include bullish or bearish candlestick patterns, such as engulfing candles, pin bars, or hammer formations. Additionally, traders may use momentum indicators like RSI or MACD to identify divergences, which suggest a potential trend reversal. A spike in volume at these levels can further validate the trade setup. A typical strategy involves entering a trade within the golden pocket, setting a stop-loss slightly below the 0.786 level for risk management, and targeting Fibonacci extensions for profit-taking. B. Fibonacci Extensions (-0.618 & -1.618) for Profit Targets Fibonacci extensions serve as valuable tools for setting take-profit levels in trending markets. Once price confirms a reversal from a retracement level, traders use extensions to project future price movements. The -0.618 extension is often considered a conservative target, providing an early profit-taking opportunity. Meanwhile, the -1.618 extension is a more aggressive target, generally used in strong trends where price momentum is high. By integrating Fibonacci extensions into their strategy, traders can optimize their exits, ensuring they capture the full potential of a move while minimizing premature exits. 5. Common Mistakes & How to Avoid Them Despite its effectiveness, Fibonacci analysis requires proper execution. One common mistake traders make is drawing Fibonacci levels incorrectly by selecting the wrong swing points. Accuracy in identifying the correct high and low points is crucial for reliable retracement levels. Another mistake is over-reliance on Fibonacci without additional confirmations. Traders should always seek confluence with other technical indicators, such as support and resistance levels, moving averages, or volume analysis. Additionally, failing to wait for confirmation signals can lead to premature entries, increasing the risk of losses. Understanding these pitfalls and applying Fibonacci with proper validation techniques can significantly improve trading outcomes. 6. Pro Tips for Using Fibonacci Like a Pro For best results, traders should use Fibonacci analysis on higher timeframes, such as the 1-hour, 4-hour, or daily charts, as these provide more reliable signals compared to lower timeframes. Confluence plays a crucial role in validating Fibonacci levels, so traders should always look for overlapping support and resistance, trendlines, or moving averages. Additionally, backtesting Fibonacci strategies using TradingView’s replay mode can help traders refine their approach and gain confidence in their setups before applying them in live trading. By combining Fibonacci with other technical tools and maintaining discipline in execution, traders can enhance their decision-making process and improve their overall trading success. Final Thoughts Mastering Fibonacci retracements and extensions can significantly improve trade accuracy. By focusing on the golden pocket zone (0.618–0.65) and using Fibonacci extensions like -0.618 and -1.618 as profit targets, traders can refine their strategies and maximize profitability. Understanding how price interacts with these levels and applying additional confirmations ensures more precise trade entries and exits. With practice and proper analysis, Fibonacci can become a powerful tool in any trader’s arsenal. __________________________________________ Thanks for your support! If you found this idea 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! 📈
Education
by TehThomas
41
Mastering Market Movements: Understanding Impulses and CorrectioHello, Navigating the stock market successfully isn’t just about luck—it requires a keen understanding of market trends and the ability to spot price patterns. One of the most useful concepts traders rely on is the interplay between impulses and corrections. Recognizing these alternating phases can provide valuable insights into potential price movements, allowing you to make more confident and informed trading decisions. In this article, we’ll break down what impulses and corrections are, how to identify them, and how you can use them to improve your trading strategy. Understanding Impulses and Corrections Stock prices move in cycles, alternating between strong trends (impulses) and temporary retracements (corrections). These movements are driven by market psychology, where shifts in supply and demand dictate price action. Impulses: The Driving Force of Trends Impulses are powerful, directional moves in the market that reflect strong momentum. These often occur when sentiment aligns with fundamental catalysts, such as positive news, strong earnings reports, or broader market trends. Impulses are the backbone of trends and can provide great opportunities for traders who know how to recognize them. To spot impulses, look for: Strong Price Movement: Impulses are characterized by significant and sustained price shifts, indicating a surge in buying or selling pressure. This is as shown in the Volume Expansion: When an impulse occurs, trading volume typically increases, confirming that more market participants are involved and supporting the price movement. Break of Key Resistance or Support Levels: Impulses often push through important technical levels, signaling strength and the continuation of a trend. Corrections: The Market Taking a Breather Corrections, also called retracements or pullbacks, are temporary price reversals within an ongoing trend. They provide opportunities for the market to pause before resuming its dominant direction. To identify corrections, watch for: Counter-Trend Price Movement: Corrections move against the main trend but usually retrace only a portion (25% to 50%) of the previous impulse. Lower Volume: Unlike impulses, corrections occur on decreased trading volume, suggesting a temporary decline in market participation. Support and Resistance Levels: Corrections often find support or resistance at previously established price levels, which can serve as potential reversal zones. Applying Impulses and Corrections in Trading Understanding these market phases can significantly improve your trading approach. Here’s how: Identifying Trends: By observing a sequence of impulses and corrections, you can determine the overall market direction and align your trades accordingly. Finding Entry and Exit Points: Impulses signal strong trends, while corrections present opportunities to enter trades at better prices before the next move higher or lower. Managing Risk: Setting stop-loss levels strategically—such as below key support levels during corrections—can help minimize losses while allowing room for potential gains. Final Thoughts Recognizing and utilizing impulses and corrections can make a huge difference in your trading success. By learning to identify these patterns, you’ll gain deeper insights into market behavior, improve your timing, and enhance your ability to make smart, strategic moves. Take a look at the US500FU chart—it clearly illustrates impulses and corrections in action. Good luck, and happy trading! Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:US500FUEducation
by thesharkke
Vanguard - “We are the invisible hand of Adam Smith” John BogleIf anyone ever thought of erecting a monument to the person who did the most for American investors — the choice would fall on John Bogle. These words are not from a promotional brochure but a quote from Warren Buffett himself. Book summary But most people don’t even know who Bogle is. And certainly don’t realize that he didn’t just “create index funds.” He built an invulnerable power machine disguised as client care. 📈 From a thesis to $10 trillion under management Bogle’s story begins with an ordinary guy born during the Great Depression. Through poverty, scholarship-based education, and working from age 10 — he makes his way into Princeton, where he writes a thesis on a topic that would change the industry: "mutual funds." Over the years, his philosophy turned into what we now know as "passive investing." From day one, the Vanguard he created operated on the principle: "maximum benefit to the investor, minimum — to the managers." No fees, no speculation, no marketing. And it worked. But here’s the paradox: ▶ Vanguard gave up profit for the mission. ▶ The world responded — investors were tired of the noise. ▶ As a result — "Vanguard grew into a monster capable of managing the economies of entire nations." 🧠 A revolutionary idea: a fund owned by investors Bogle built a structure where "the fund owners are the investors themselves." Sounds beautiful: no shareholders, no profit pressure — only long-term client interests. But then who de facto manages these trillions? ⚠️ Vanguard is not a public company. ⚠️ Its shares are not traded. ⚠️ The real ownership mechanism — a black box. It’s the perfect system for... "invisible control." And this isn’t a conspiracy theory, but logic: If you can’t find the ultimate beneficiary — it means they’re either too big, or hiding for a reason. 🕸️ The “Big Three” and the invisible hand effect Vanguard, BlackRock, and State Street — three funds that hold between 3% to 8% of shares in most of the world’s largest corporations. It seems small, but only 15–20% of shares are in free float. ❗ This gives the Big Three “real power”: from voting at meetings to influencing media narratives and climate policy. 📌 They own stakes in CNN, Fox, and Disney. 📌 Invest in oil companies that violate human rights. 📌 And at the same time — push the “green transition” agenda. Conflict of interest? No. It’s “total control over both sides of the conflict.” 🤫 Why Vanguard is impossible to destroy If you think Vanguard is just an investment fund, here are a few facts: 🔒 No company shares → can’t buy a controlling stake. 🔒 Over 400 legal entities → can’t file a single lawsuit. 🔒 Every investor essentially becomes a “co-owner” → responsibility is blurred. 🔒 All stakes split below 10% → bypass antitrust laws. You can’t sue a ghost. You can’t attack a network if you don’t know where its center is. 🧭 What’s next? Today, Vanguard manages over $10 trillion, which is more than the GDP of Germany, India, and Brazil combined. Though the fund’s founder passed away as “the conscience of Wall Street,” his creation became an "architecture of global control" that even the U.S. Federal Reserve couldn’t handle. 🎤 “We are the invisible hand of Adam Smith,” John Bogle once said. A more detailed book review will follow below. I understand how important this is in our time and I appreciate it. 📘 General Concept of the Book: The book is at once the autobiography of John Bogle, the story of the founding and development of Vanguard, and a manifesto of index investing philosophy. A runaway waiter, Princeton graduate, and "Wall Street rebel," Bogle creates Vanguard — a company that changed the investment world by making it more fair and accessible. 📑 Structure of the Book: The book is divided into four parts: Part I — The History of Vanguard. Part II — The Evolution of Key Funds. Part III — The Future of Investment Management. Part IV — Personal Reflections, Philosophy, and Values of the Author. 💡 Key Ideas of the Book (Introductory Chapters, Preface): - Index investing is the most important financial innovation of the 20th century. - Passive management beats active managers in returns and costs. - Vanguard’s mission is not to make money off investors, but to serve them. - Criticism of Wall Street: high fees, conflicts of interest, short-term thinking. - Financial revolution — a mass shift of investors from active to index funds. 🧠 Bogle's Values: - Long-term thinking. Don’t give in to market “noise.” - Honesty and transparency in investing. - Minimal costs = maximum return for the investor. - Fiduciary duty: protecting the client’s interest comes first. 📗 Part I: The History of Vanguard 🔹 Chapter 1: 1974 — The Prophecy Context: John Bogle is in a difficult position — he’s fired as head of Wellington Management Company. During a trip to Los Angeles, he meets John Lovelace of American Funds, who warns: if you create a truly mutual investment company, you’ll destroy the industry. Main Idea: ⚡ Bogle decides to go against the profit-driven industry and creates Vanguard — a company owned by investors, not managers. Key Moments: - Vanguard is founded in 1974 — in the middle of a crisis. - The company has no external shareholders — all “profits” are returned to investors through lower fees. - In 1975, the first index fund for individual investors is launched — a revolutionary idea, initially ridiculed as “Bogle’s madness.” Important Quotes: "Gross return before costs is market return. Net return after costs is lower. Therefore, to get the maximum, you must minimize costs." – Bogle’s fundamental rule 🔹 Chapter 2: 1945–1965 — Background: Blair Academy, Princeton, Fortune, and Wellington Early Life: Bogle studies at Blair Academy on a scholarship, works as a waiter. He enters Princeton. Struggles with his economics course, but… In the library, he accidentally finds the Fortune article “Big Money in Boston” — about mutual funds. Turning Point: This article inspires Bogle to write his thesis: “The Economic Role of the Investment Company”, where he argues: - Funds should work for investors; - Don’t expect them to beat the market; - Costs must be minimized; - Fund structure must be fair and transparent. Career Start: Work at Wellington Management (Philadelphia). Starts from scratch, rising from junior analyst to president of the company. Under Walter Morgan’s leadership, he learns the principles of discipline and serving investors. ✍️ Interim Summary What’s important from these early chapters: - Vanguard was born from the ruins of Bogle’s former career — an example of how failure can be the beginning of greatness. - Already in college, Bogle saw the issue of conflicts of interest in the industry. - His philosophy is idealism in action: don’t play guessing games — just invest in the market and reduce costs. 📘 Chapter 3: 1965–1974 — Rise and Fall 🚀 Appointed President of Wellington Management: In 1965, at just 35 years old, John Bogle becomes president of Wellington. He decides to modernize the business and bring in young star managers from Wall Street, especially from the firm Thorndike, Doran, Paine & Lewis. ⚠️ Risky Alliance: Bogle makes a fatal mistake — he merges with the new management company without ensuring value alignment. The new partners are focused on profit and short-term gains, not building a strong long-term foundation. This leads to internal conflict, loss of trust, and poor fund performance. 💥 Dismissal: In 1974, after a series of conflicts, the board removes Bogle. He loses control of the company he built for nearly 25 years. Bogle’s comment: "I was fired, but I was still chairman of the Wellington mutual funds — and that turned out to be a lifeline." 📘 Chapter 4: 1974–1975 — The Birth of Vanguard 🧩 A Unique Legal Loophole: Though Bogle was fired from the management company, he remained head of the Wellington Fund trustees — giving him the opportunity to build a new independent structure. 🛠 Creating Vanguard: In December 1974, he launches The Vanguard Group — a company owned by the investors (shareholders) themselves. Model: the fund belongs to the investors → the fund owns the management company → no outside profit, only cost recovery. ⚙️ "Vanguard" as a Symbol: The name was inspired by Admiral Horatio Nelson’s ship — HMS Vanguard. A symbol of leadership, courage, and moving against the tide. Key Idea: Vanguard would be the only truly mutual investment organization — a model where clients = owners. 📘 Chapter 5: 1975 — The First Index Fund 🤯 Revolution: The Indexing Approach Bogle decides to create the first index mutual fund for retail investors. Name: First Index Investment Trust (later — Vanguard 500 Index Fund). Idea: invest in all S&P 500 stocks to reflect the market’s return instead of trying to beat it. 🪓 A Blow to the Industry: The financial world reacts harshly: - “Bogle’s madness”; - “This is a failure”; - “Who would want to just match the market?” 🔧 Humble Beginning: The goal was to raise $150 million, but only $11 million was collected — tiny by industry standards. But Bogle didn’t give up: "It was a small step, but with a powerful message." 💡 Summary of Chapters 3–5: How Vanguard Was Built 🔑 Event 💬 Meaning Loss of control at Wellington ----- Collapse of the old model, beginning of a new path Creation of Vanguard------------- Innovative, investor-first structure Launch of index fund--------------Start of the indexing revolution, Bogle’s core philosophy 📝 Quotes for Thought: "All I did was apply common sense. I just said: Let’s leave the returns to the investors, not the managers." — John Bogle "This is a business where you get what you don’t pay for. Lower costs = better results." — Bogle’s favorite saying, debunking “more is better” 📘 Chapter 6: 1976–1981 — The Survival Period ⏳ Tough Start: After launching the index fund, Vanguard faces slow growth and constant skepticism. For 83 straight months (nearly 7 years!), Vanguard sees net outflows — investors are hesitant to trust this new model. 🧱 Laying the Foundation: Bogle and his team focus on: - Transparency - Lowering costs - Investor education (they explain what it means to “stay the course”) 💬 The Core Dilemma: "All investors want to beat the market. But no one wants to pay the price: high fees, taxes, risks. We offered an alternative — reliability, simplicity, and low cost." 📈 Small Wins: Despite modest volume, Vanguard starts building a reputation as an “honest player.” It becomes evident: investors using Vanguard achieve better long-term results than those chasing trendy funds. 📘 Chapter 7: 1982–1991 — Growth and Recognition 💡 The Power of Philosophy: Bogle keeps repeating: “Stay the course” — don’t try to predict the market, don’t fall for fear and greed. This message becomes especially powerful after the 1982 and 1987 market crises. 🏆 The First Fruits: A slow but steady increase in assets begins. Vanguard launches new index funds: - Total Stock Market Index - Bond Index - International Index 📣 Educational Mission: Bogle writes books, articles, gives interviews. He isn’t just running a fund — he’s changing how people think about investing. A community of followers emerges — the Bogleheads. 📊 Key Stats: By 1991, Vanguard's assets reach around $130 billion. Index funds begin receiving positive reviews from analysts, including Morningstar. 📘 Chapter 8: 1991–1999 — Industry Leadership 🚀 Explosive Growth: In the 1990s, index funds go mainstream. Investors realize that most active funds underperform the market — and they vote with their money for Vanguard. 🧰 Expanding the Product Line: Vanguard introduces: - Retirement funds - Bond funds - International and balanced funds - Admiral Shares — low-cost funds for loyal investors 📢 Open Fight with the Industry: Bogle continues to harshly criticize Wall Street: - For greed, manipulation, and lack of transparency - For prioritizing company profit over client interest "The industry hates Vanguard because it proves you can be honest and still succeed." ⚠️ Internal Challenges: In the late 1990s, Bogle’s health declines. He passes leadership to Jack Brennan but retains influence on company strategy. 📊 Midpoint Summary (Chapters 6–8) 📅 Phase 📈 Essence 1976–1981 Quiet survival: building the model, fighting for trust 1982–1991 Slow growth: philosophy attracts investors 1991–1999 Recognition and leadership: indexing becomes dominant 💬 Bogle Quotes from These Chapters: "Investing is not a business. It’s a service. Those who forget this lose everything." "Every dollar spent on fees is a dollar lost to your future." "Volatility is not the enemy. The real enemy is you, if you panic." 📘 Chapter 9: Leadership as a Calling 💡 A Leader ≠ A Manager: Bogle contrasts a true leader with just an efficient executive. A real leader: - Puts others’ interests above their own - Has a moral compass, not just KPIs - Makes hard, unpopular decisions 🛤 His Leadership Style: "Don’t ask others to do what you wouldn’t do yourself." "Always explain why — people follow meaning, not orders." He genuinely believes Vanguard should be more than a successful business — it should be a force for good in the market. "Leadership is loyalty to an idea bigger than yourself." 🔄 Feedback Principle: Bogle constantly interacts with clients, employees, and journalists. He never isolates himself in an “ivory tower” — he believes this openness is a leader’s true strength. 📘 Chapter 10: Client Service — Vanguard’s Mission 🧭 The Mission: "Maximize investor returns — not company profits." Vanguard is built around fiduciary responsibility: every decision must pass the test — is this in the investor’s best interest or not? 🧾 How It’s Implemented: - Fees below market average → investors keep more - No ads for “hot” funds → Vanguard sells stability, not trends - No sales commissions → no one profits off pushing funds to clients - Ethical code — “Don’t do anything you wouldn’t want on the front page of the newspaper.” "We’re not trying to be the best for Wall Street. We’re trying to be the best for you." 📘 Chapter 11: The Market Should Serve Society 📉 Critique of Modern Wall Street: Bogle argues that finance has drifted from its original purpose. Investing has turned into trading. The investor became a cash cow, not a partner. "The market now serves itself — and we’re still paying the price." 🌱 What the System Should Look Like: - Companies should serve society - Investors should be owners, not speculators - Funds should be transparent, accountable, and honest 📢 Call for Reform: Bogle calls for a rethinking of finance: - Restore the human element - Make mission more important than profit - Protect long-term interests of millions of ordinary investors "If we want capitalism with a human face, we must return finance to serving society." 📊 Summary of Chapters 9–11: Bogle's Philosophy 📌 Direction------------💬 Essence Leadership-------------Morality, leading by example, purpose-driven Business---------------First and foremost — service to the client Financial System-------Must work for society, not just for profit of the few ✨ Inspirational Quotes: "The most important thing you can invest is not money — it’s your conscience." "Honesty in business is not a competitive edge. It’s a duty." "I’m not against capitalism. I’m against capitalism without morals." 📘 Chapter 12: The Future of Investing — Where the Industry Is Headed 🌐 Bogle sees three main trends: Victory of Passive Investing: - Index funds continue to displace active management - Their share of assets under management is growing rapidly - More investors are realizing the power of simplicity Fee Pressure: - Fees are approaching zero (some funds are effectively free) - Winners: investors. Losers: traditional management companies The Role of Technology: - Rise of robo-advisors (automated investment advisors) - But Bogle warns: Technology without philosophy is just a tool, not a solution 🚨 Threat #1 — Hyperfinancialization: "The market is turning into a casino. And the fewer the players, the more the house wins." Bogle reminds us: the goal of investing is owning businesses — not gambling. The higher the turnover, the more you lose on fees and taxes. 📘 Chapter 13: The Power of Indexing — Threat or Blessing? 📈 Strength in Scale: The biggest index providers (Vanguard, BlackRock, State Street) own large shares in nearly all companies in the indexes. This raises the issue of concentrated power — is too much influence in too few hands? ⚖️ The Indexing Paradox: Index funds don’t actively vote on corporate governance issues. So the more power they hold, the less oversight there is over company management. 📣 Bogle’s Proposals: - Establish a code of conduct for index providers - Require them to vote in investors’ interests - Mandate transparency in how they use their voting power "We fought for the democratization of investing. We cannot let it end in a new monarchy." 📘 Chapter 14: Personal Reflections — On Life, Mission, and Faith 🧬 Personal and Eternal: Bogle shares his core life principles: - To serve, not to own - To leave a mark, not accumulate - To do what’s right, not what’s profitable He talks about his battle with heart disease — both as a personal journey and a metaphor for resisting the system. 🙏 Gratitude: He dedicates the book to his family, colleagues, and investors. Emphasizes: every day is a chance to be useful. "I created Vanguard, but Vanguard created me. My career isn’t a triumph — it’s a thank you to fate for the chance to be heard." 📊 Summary of Chapters 12–14: Looking Ahead and Within 📌 Theme-----------------💬 Essence Future of Investing---------Indexing is the new standard, but needs responsible stewardship Concentration of Power----Index giants must be accountable to society Personal Legacy-----------Life is about service, honesty, and setting an example 💬 Final Inspirational Quotes: "Life isn’t about making more money. It’s about doing more good." "One day, someone will say: ‘Bogle was stubborn. He never compromised his conscience.’ That will be the best reward." 🧩 Bogle’s Principle Summary (from the book): - Lower costs — pay less = keep more - Don’t chase returns — be realistic - Be a long-term investor — ignore market noise - Invest broadly, passively, regularly - Don’t try to beat the market — own the market - Focus on goals, not trends - Finance = service. Not a business for profit 💡 Investment Philosophy 🟨 “This is a business where you get what you don’t pay for.” 🟨 “Don’t try to beat the market. Just own it.” 🟨 “In the stock market, investors are rewarded for patience and punished for frenzy.” 🟨 “Gross return minus costs = market return. After costs — less. So: reduce costs — and you win.” 🟨 “The problem isn’t that investors know too little. The problem is they know too much of what doesn’t matter.” 🧭 Principles & Morality 🟩 “Investing is not a business. It’s a service.” 🟩 “Honesty isn’t a strategy. It’s an obligation.” 🟩 “The goal of Vanguard isn’t to make more, but to return to the investor what’s rightfully theirs.” 🟩 “If your investments keep you up at night, change them. Or better — change yourself.” 🧠 On Leadership and Mission 🔷 “A leader isn’t the one in front. It’s the one responsible for the rest.” 🔷 “Respect isn’t bought. It’s earned when you do what’s right, even if it’s unpopular.” 🔷 “We didn’t build Vanguard for glory. We built it to leave something better than what was.” 💬 On the Market and Industry 🔴 “Today's stock market isn’t a place for investors. It’s a casino with a shiny sign.” 🔴 “We’re not against capital. We’re against capitalism without a conscience.” 🔴 “The people selling investments always say they can pick the best. But what if the best is just paying less?” ❤️ On Life and Legacy 💠 “I created Vanguard, but Vanguard created me. It’s not my victory — it’s gratitude for the chance to serve.” 💠 “Every day is a chance to do something not for yourself.” 💠 “You can measure success with money. Or with a conscience, you don’t have to justify.” It was a lot of work! Click to like + Write in the comments your favorite books about the financial market Best regards, EXCAVO _____________________ Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:US500Education
by EXCAVO
8
What is a Swing Failure Pattern? - Basic explanation!A Swing Failure Pattern (SFP) is a technical chart pattern often used in price action trading to identify potential reversals in the market. It is typically seen on candlestick or bar charts in the context of trend analysis. The basic idea behind a Swing Failure Pattern is that the price temporarily breaks above or below a previous swing high or low, but fails to sustain that move and reverses direction quickly. This indicates a potential shift in market sentiment, and it can be a signal for a trend reversal or breakdown. When is it a SFP? - In needs to sweep the previous low - It has to close the candlestick above the previous low. So only a wick down When the price closes the body of a candle below the last low, it will not be considered an SFP. In this case, it is highly likely that the trend will continue in that direction. The SFP can occur across various timeframes, from lower to higher timeframes. Example on the daily timeframe Here, we see two SFPs: one to the upside and one to the downside. Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!
Education
by Youriverse
32
Power of trendline + support/resistanceI would like to show the power of combining trendlines and support & resistance on your chart work. As we all know in order for a trendline to be effective it must be used with key major points and the trend must be clear whether it's an uptrend or downtrend, cause if the trend is neither then that would lead to false signals that would cause people to get stopped out. If used with S&R it can give us way better entries and more accurate with high probability of winning, We all know if for example an Uptrend trendline is broken then that would mean we have sellers active and that means the trend will go down, however that is not entirely true if it was then we would all be millionaires lol. So in order to fix this and know for sure the trend is changing for real we need to combine both our Trendlines and S&R, as you can see from the chart our uptrend trendline was broken and those who entered immediately after the breakout would have been trapped by professional traders when the price pulled back to their entry points, but to avoid this and get a much better entry that has high accuracy like mine you would also need to use your "visible" support and resistance. As the uptrend line was broken that gave us a sign sellers are active and might push the price down but that is not enough confirmation to sell, unless you want to make a loss obviously💀,If you noticed I also marked my Visible Support(CHANGE OF TREND), since this is the lowest point in the uptrend then we know if price breaks below it then it's a clear confirmation that sellers will overpower buyers and push the price down, our first confirmation was Price breaking the uptrend(not enough to sell), our second powerful confirmation was price breaking below the CHANGE OF TREND, now this shows that bears overpowered bulls causing a CHANGE OF TREND and a much higher winning probability and a much better R:R. I know most people would see this as a late entry, but it's not trust me there's no better entry you can get better than this that has higher chance of winning and a better R:R also less risky. Most people chase the trend instead of waiting for the trend to come to them, that's also why they make many losses because they enter with few confirmations that have low probability
CAPITALCOM:DXYEducation
by StarleXtheTrader
How to Trade Descending Channels Like a Pro! 🚀 TRON (TRX) is stuck in a descending channel! But how can you trade this setup effectively? Let’s break it down: 📌 What is a Descending Channel? A descending channel forms when price makes lower highs and lower lows, staying between two parallel trendlines. It shows a downtrend, but it also creates trading opportunities! 🔥 How to Trade It? ✅ Breakout Strategy: If price breaks above the channel and retests, it could signal a bullish move! (Potential target: $0.29) ✅ Breakdown Strategy: If price drops below the key level, it might dump to the next support ($0.19). ✅ Mid-Range Trades: You can short at resistance and long at support inside the channel – but only with strong confirmations! 💡 Pro Tip: Always wait for confirmation candles before entering a trade to avoid false breakouts! 📊 What do you think? Will TRX break out or dump? Comment below! 👇👇 🔄 Tag a trader who needs to learn this! 🚀 #CryptoEducation #TradingTips #TRX #TradingView #Miracle #TradeWithMky #MegaAltseason 2025
Education
by TradeWithMky
Trading Is Not Gambling: Become A Better Trader Part III'm so thankful the admins at Tradingview selected my first Trading Is Not Gambling video for their Editor's Pick section. What an honor. I put together this video to try to teach all the new followers how to use analysis to try to plan trade actions and to attempt to minimize risks. Within this video, I try to teach you to explore the best opportunities based on strong research/analysis skills and to learn to wait for the best opportunities for profits. Trading is very similar to hunting or trying to hit a baseball... you have to WAIT for the best opportunity, then make a decision on how to execute for the best results. Trust me, if trading was easy, everyone would be making millions and no one would be trying to find the best trade solutions. In my opinion, the best solution is to learn the skills to try to develop the best consistent outcomes. And that is what I'm trying to teach you in this video. I look forward to your comments and suggestions. 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
AMEX:SPYEducation
by BradMatheny
9
Let's Explore Swing Trading !Hello, Trading Community! I'm excited to share my 100th publication with you all! Grateful for the support and learning from this journey. To mark this milestone, I’m sharing an educational post on Swing Trading—hope it adds value to your trading. Thank you for being a part of this! Let’s keep growing together. Happy trading! Introduction-: Swing trading is a powerful trading strategy that allows traders to capture market fluctuations over a period of several days to weeks. Unlike day trading, which requires constant monitoring of charts, swing trading enables traders to take advantage of medium-term price movements without being glued to the screen all day. This guide explores the fundamentals of swing trading, key indicators, strategies, risk management, and common mistakes traders should avoid. By the end of this article, you’ll have a solid foundation to approach swing trading effectively and improve your trading success. Have you ever wondered how professional traders capitalize on market swings without constantly watching the charts? Let's break it down. 🔹What is Swing Trading-: Swing trading is a trading style that focuses on capturing short- to medium-term price movements in financial markets. Traders hold positions for several days or weeks, aiming to profit from price swings within a trend. Unlike day traders, who enter and exit positions within the same day, or long-term investors who hold assets for months or years, swing traders take advantage of short-term fluctuations while aligning with the broader trend. A key principle in swing trading is identifying trends and trading in their direction. For instance, in an uptrend, a trader looks for pullbacks to enter at a favorable price, while in a downtrend, they may look for rallies to enter short positions. A well-structured chart example showing an uptrend with higher highs and higher lows can help illustrate this concept effectively. 🔹Key Indicators and Tools for Swing Trading-: Swing traders rely on technical analysis to find high-probability trade setups. Some of the most commonly used indicators and tools include: 1. Moving Averages (50 & 200 EMA) – Helps identify the overall trend. A price above the 50-day EMA indicates an uptrend, while a price below suggests a downtrend. 2. Relative Strength Index (RSI) & MACD – Used for entry confirmation. RSI helps identify overbought and oversold conditions, while MACD provides trend direction and momentum shifts. 3. Fibonacci Retracement – Useful for identifying pullback levels within a trend. Traders use Fibonacci levels (38.2%, 50%, 61.8%) to anticipate where price might find support or resistance. 4. Support and Resistance Levels – Key price areas where reversals or consolidations often occur. Identifying these levels helps traders find entry and exit points. A well-annotated chart with these indicators applied can illustrate their importance in real trading scenarios. 🔹Swing Trading Strategies with Examples-: Trend-Following Swing Trading This strategy involves entering trades in the direction of the prevailing trend. Traders wait for pullbacks to enter a position rather than buying at the peak. Moving averages and RSI are commonly used to confirm the trend and entry points. Example: A stock in an uptrend retracing to the 50-day moving average with RSI bouncing from the 40 level can be an ideal entry point. 🔹Breakout Swing Trading-: This strategy focuses on trading breakouts from consolidation patterns such as triangles, flags, and channels. Traders use volume and MACD to confirm the breakout’s strength before entering. Example: A stock breaking out from a flag pattern with increased volume signals a strong continuation. A stop-loss is placed below the breakout level to manage risk. 🔹Mean Reversion Swing Trading-: This approach involves buying oversold conditions and selling overbought conditions. Bollinger Bands and RSI divergence help identify potential reversals. Example: If the price touches the lower Bollinger Band and RSI is below 30, traders anticipate a reversal and enter a long position. Charts illustrating each strategy with proper entry, stop-loss, and target levels can significantly enhance the reader’s understanding. 🔹Risk Management in Swing Trading-: Successful swing trading isn’t just about finding the right setups—it’s also about managing risk effectively. 1. Risk-Reward Ratio (Minimum 1:2) – Ensuring that potential profits outweigh potential losses. If a trade has a stop-loss of 10 points, the target should be at least 20 points. 2. Stop-Loss Placement – Placing stop-loss orders below swing lows for long trades and above swing highs for short trades to limit downside risk. 3. Position Sizing – Avoiding excessive exposure by ensuring no more than 2% of total capital is risked on a single trade. 4. Using ATR (Average True Range) – A dynamic way to set stop-loss levels based on market volatility. An example chart demonstrating a well-placed stop-loss and take-profit target can reinforce these concepts. Common Mistakes to Avoid in Swing Trading-: 1. Overtrading – Entering too many trades based on impulse rather than solid setups. 2. Ignoring Market Context – Trading against the trend or ignoring macroeconomic factors. 3. Not Using Stop-Loss Orders – Holding onto losing trades in the hope that the market will reverse. 4. FOMO (Fear of Missing Out) Trades – Entering trades too late, after the move has already happened. Understanding these common pitfalls can help traders refine their strategy and improve long-term success. 🔹Conclusion: Becoming a Profitable Swing Trader-: Swing trading offers an excellent balance between short-term trading and long-term investing. By using technical indicators, proper risk management, and well-defined strategies, traders can capitalize on price movements while minimizing risk. Before implementing these strategies in a live market traders should backtest them using TradingView to see how they perform over historical data. Best Regards-: Amit
NASDAQ:TSLAEducation
by AMIT-RAJAN
1
THE IMPORTANCE of Multiple Time Frame Analysis in Forex Gold In my daily posts, I quite frequently use multiple time frame analysis. If you want to enhance your predictions and make more accurate decisions, this is the technique you need to master. In the today's post, we will discuss the crucial importance of multiple time frames analysis in trading the financial markets and forex gold in particular. 1️⃣ Trading on a single time frame, you may miss the important key levels that can be recognized on other time frames. Take a look at the chart above. Analyzing a daily time frame, we can spot a confirmed bullish breakout of a key daily resistance. That looks like a perfect buying opportunity. However, a weekly time frame analysis changes the entire picture, just a little bit above the daily resistance, there is a solid weekly resistance. From such a perspective, buying GBPUSD looks very risky. 2️⃣ The market trend on higher and lower time frames can be absolutely different. In the example above, Gold is trading in a bullish trend on a 4h time frame. It may appear for a newbie trader that buyers are dominating on the market. While a daily time frame analysis shows a completely different picture: the trend on a daily is bearish, and a bullish movement on a 4H is simply a local correctional move. 3️⃣ It may appear that the market has a big growth potential on one time frame while being heavily over-extended on other time frames. Take a look at GBPJPY: on a weekly time frame, the market is trading in a strong bullish trend. Checking a daily time frame, however, we can see that the bullish momentum is weakening: the double top pattern is formed and the market is consolidating. The sentiment is even changing to a bearish once we analyze a 4H time frame. We can spot a rising wedge pattern there and its support breakout - very bearish signal. 4️⃣ Higher time frame analysis may help you to set a safe stop loss. In the picture above, you can see that stop loss placement above a key daily resistance could help you to avoid stop hunting shorting the Dollar Index. Analyzing the market solely on 1H time frame, stop loss would have been placed lower and the position would have closed in a loss. Always check multiple time frame when you analyze the market. It is highly recommendable to apply the combination of at least 2 time frames to make your trading safer and more accurate. ❤️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.
TRADENATION:XAUUSDEducation
by VasilyTrader
6
About the Volume OBV indicator... Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- I think TradingView is attractive because users can create charts as they want. However, since the number of indicators that can be added to the chart is limited depending on the plan, you have to add indicators that fit your plan. As a result, I ended up integrating multiple indicators into one indicator. - The HA-MS indicator in this chart is a public indicator. If you search the Internet, you can find detailed explanations on how to interpret the OBV indicator. I expressed it as follows to make this interpretation method more realistic. The body color of the candlestick is indicated by the 4-stage OBV indicator. The OBV indicator is distinguished in the same way as the Price Channel indicator. You can interpret it like the Bollinger Band. That is, if the middle line that divides 2 and 3 rises by more than 3, you can interpret that the buying force is increasing. 1: It means below the lower line of the Price Channel and is indicated in dark red. If you enter this section, there is a high possibility of a sharp decline. You should check the support and resistance points because it is likely to stop falling soon and rise to 2. 2: It means between the lower line and the middle line of the Price Channel and is indicated in red. This section is likely to show a weak downward sideways movement. Therefore, if it rises from 1->2, there is a possibility of a short rise. However, if it fails to rise to 3, it is likely to fall back to 1, so it is recommended to make short trades. 3: It means between the middle line and the upper line of the Price Channel and is displayed in green. This section is likely to show a weak upward sideways movement. If it rises from 2 -> 3 and shows a sideways movement, you should focus on finding a buying point. 4: It means above the upper line of the Price Channel and is displayed in dark green. If it enters this section, there is a high possibility of a sharp rise. Since it is likely to stop rising soon and fall to 3, you should check the support and resistance points. - What we should pay attention to is when it changes from 1 -> 2, 4 -> 3. As explained above, 1 is a section located below the lower line of the Price Channel, so there is a high possibility of a sharp fall. 4 is a section located above the upper line of the Price Channel, so there is a high possibility of a sharp rise. Therefore, you can proceed with an aggressive buy when it changes from 1 -> 2, and you can proceed with a sell when it changes from 4 -> 3. In the case of futures, it can be used as reference information for entering and liquidating LONG and SHORT positions. - They say that the only things you need on a chart are price and trading volume. However, it is not easy to interpret this in reality. To compensate for this, we hid the colors of the existing candles and displayed them in 4 stages of OBV so that you can intuitively see which stage the current price is at. - Thank you for reading to the end. I hope you have a successful transaction. --------------------------------------------------
Education
by readCrypto
Enhance Your Trading with Dual MACD OverlaysBy using two MACD overlays—one based on the current timeframe and another on a higher timeframe—you gain a more comprehensive view of market momentum. This approach helps identify short-term opportunities while aligning trades with the broader trend, reducing false signals. As seen in my chart, combining multiple MACD perspectives can improve decision-making and trade timing. Try it out and refine your strategy with better trend confirmation!
CME_MINI:NQ1!Education
by NonLinearRookie
SMART MONEY FOOTPRINT ON NIFTY CHART, REVERSAL SIGN APPEAR ?Today on 21/03/2025 with upward rally, on hourly chart I found similarity or smart money footprint (sign of weakness) at the time of closing bell same as (sign of strength) on 28 February 2025. what was that? Let's try to Dig.... previous days when market was forming lower low, that was downtrend look at the time on 28 February 2025 that was 14.15 pm on hourly chart an ultrahigh volume rejection candle appear which volume was around164 M. thereafter short seller trapped to see big red candle and market move toward upward. : : Today on 21/03/2025 also market gave a rejection candle on hourly chart with around 164 M ultrahigh volume Exact at 14:15 Pm so conclusion is that market may give correction after trapping Buyers or it may go downtrend again if fundamental don't support. what is similarity? : Same Time 14:15 : Same Volume : same Candle body Size : appear after strong moment REVERSAL INDICATION: Nifty may Facing resistance of downtrend channel on Daily Chart. Away from 50 EMA on hourly chart. Smart money Ultra High volume on Rejection candle indicating selling zone there : SO, INVESTOR NO NEED TO TRAP TO JUST SEE NEXT BIG GREEN CANDLE
NSE:NIFTYEducation
by rahul25
Machine Learning Algorithms for Forex Market AnalysisMachine Learning Algorithms for Forex Market Analysis Machine learning is transforming the currency trading landscape, offering innovative ways to analyse market trends. This article delves into how machine learning algorithms are reshaping forex trading. Understanding these technologies' benefits and challenges provides traders with insights to navigate the currency markets potentially more effectively, harnessing the power of data-driven decision-making. The Basics of Machine Learning in Forex Trading Machine learning for forex trading marks a significant shift from traditional analysis methods. At its core, machine learning involves algorithms that learn from and provide signals based on data. Unlike standard trading algorithms, which operate on predefined rules, these algorithms adapt and improve over time with exposure to more data. Machine learning forex prediction algorithms analyse historical and real-time market data, identifying patterns that are often imperceptible to the human eye. They can process a multitude of technical and fundamental factors simultaneously, offering a more dynamic approach to analysing market trends. This capability can allow traders to make more informed decisions about when to buy or sell currency pairs. The increasing availability of market data and advanced computing power has made machine learning an invaluable tool in a trader's arsenal. Types of Machine Learning Algorithms in Forex Trading In the realm of forex trading, various machine-learning algorithms are utilised to decipher complex market patterns and determine future currency movements. These algorithms leverage forex datasets for machine learning, which encompass historical price data, economic indicators, and global financial news, to train models for accurate analysis. - Support Vector Machines (SVMs): SVMs are particularly adept at classification tasks. In forex, they analyse datasets to categorise market trends as bullish or bearish, helping traders in decision-making. - Neural Networks: These mimic human brain functioning and are powerful in recognising subtle patterns in market datasets. They are often embedded in forex forecasting software to determine future price movements based on historical trends and fundamental data. - Linear Regression: This straightforward approach models the relationship between dependent and independent variables in forex data. It's commonly used for its simplicity and effectiveness in identifying trends. - Random Forest: This ensemble learning method combines multiple decision trees to potentially improve analysis accuracy and reduce overfitting, making it a reliable choice in the forex market analysis. - Recurrent Neural Networks (RNNs): Suited for sequential data, RNNs can be effective in analysing time-series market data, capturing dynamic changes over time. - Long Short-Term Memory (LSTM) Networks: A specialised form of RNNs, LSTMs are designed to remember long-term dependencies, making them effective tools for analysing extensive historical forex datasets. Benefits of Machine Learning in Forex Trading Machine learning offers significant advantages for forex analysis. Its integration into forex prediction software may enhance trading strategies in several key ways: - Real-Time Data Analysis: Algorithms excel in analysing vast amounts of real-time data, which is crucial for accurate forex daily analysis and prediction. - Automated Trading: These algorithms automate the buying and selling process, which may increase efficiency and reaction speed to market changes. - Enhanced Market Understanding: It helps in dissecting historical market data, providing a deeper understanding for informed decision-making. - Accuracy in Analysis: Software powered by machine learning offers superior analysis abilities, leading to potentially more precise and timely trades. - Risk Reduction: By minimising human error and maintaining consistency, machine learning may reduce trading risks, contributing to a safer trading environment. Challenges and Limitations Machine learning in currency trading, while transformative, comes with its own set of challenges and limitations: - Data Quality and Availability: Accurate machine learning analysis depends on large volumes of high-quality data. Forex markets can produce noisy or incomplete data, which can compromise the reliability of the analysis and signals. - Complexity and Overfitting: Developing effective algorithms for forex trading is complex. There's a risk of overfitting, where models perform well on training data but poorly in real-world scenarios. - Interpretability Issues: Machine learning models, especially deep learning algorithms, can be "black boxes," making it difficult to understand how decisions are made. This lack of transparency can be a hurdle in regulatory compliance and trust-building. - Regulatory Challenges: Currency markets are heavily regulated, and incorporating machine learning must align with these regulatory requirements, which can vary significantly across regions. - Cost and Resource Intensive: Implementing machine learning requires significant computational resources and expertise, which can be costly and resource-intensive, especially for smaller trading firms or individual traders. The Bottom Line Machine learning represents a paradigm shift in forex trading – it may offer enhanced analysis accuracy and decision-making capabilities. While challenges like data quality, complexity, and regulatory compliance persist, the benefits of advanced algorithms in understanding and navigating market dynamics are undeniable. For those looking to trade forex, opening an FXOpen account could be a step towards a wide range of markets, lightning execution and tight spreads. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Engulfing Candles: The Power ShiftIf there’s one candle pattern that represents an immediate shift in balance between buyers and sellers it is the engulfing candle. Today we take a deep dive into some of the key nuances of this pattern and explain how context and confirmation are essential elements to making this pattern a useful tool in your trading toolkit. Understanding the Engulfing Pattern The Engulfing candle pattern occurs when a single candlestick completely engulfs the body of the previous candle. In a bullish engulfing, a large bullish candle fully covers the smaller previous bearish candle, while in a bearish engulfing, a large bearish candle engulfs the previous bullish one. Within the space of a signal candle, the market has completely erased the previous candles price action and sometimes multiple prior candles price actions. This step change in momentum, is why it is often known as the ‘power shift pattern’ – when it is identified correctly can represent a key inflection point. Bullish Engulfing: A bullish engulfing suggests that after a period of selling, buying pressure has taken over, overpowering the bears in one strong move. This may indicate a potential reversal, from a bearish trend to a bullish one. Bearish Engulfing: A bearish engulfing indicates that after a period of buying, selling pressure has overwhelmed the bulls. This could signal a shift from an uptrend to a downtrend. Example: Nvidia Daily Candle Chart In this example, we see bullish and bearish engulfing candles form at the parameters of a range that formed on Nvidia’s daily candle chart. Past performance is not a reliable indicator of future results The Importance of Location and Context Like any chart pattern, the Engulfing candle is most effective when it occurs in the right context. Its location is crucial to its reliability. Trading the pattern within a range or consolidation zone can be misleading, as there may not be a clear prevailing trend for the pattern to reverse. For a bullish engulfing to be meaningful, it should ideally appear near a key support level, where buyers are likely to step in. In contrast, a bearish engulfing is more reliable when it appears near a key resistance level, where selling pressure may be about to take control. In short, location is everything. An engulfing pattern at a support or resistance level holds more weight than one formed in the middle of a range or without a clear market direction. Example: USD/CAD Daily Candle Chart In this example, we see small bearish engulfing candles form within a consolidation range. These are not significant signals as the location and context is sub-optimal. We then see a large engulfing candle form at the parameter of resistance – creating a clear bearish signal. Past performance is not a reliable indicator of future results Confirmation: The Next Candle is Key A major element to watch for with the Engulfing candle is confirmation. The next candle after the engulfing one should trade in the direction of the engulfing candle. For a bullish engulfing, the next candle should ideally close above the high of the engulfing candle. This confirms that the buying momentum is likely to continue. For a bearish engulfing, the next candle should ideally close below the low of the engulfing candle. This suggests that selling pressure is likely to persist. Without this confirmation, the pattern can be less reliable, and the initial move may not hold. The following candle helps validate whether the momentum shift is real or just a short-term fluctuation. Stop Placement Stop placement is a crucial aspect of trading the Engulfing pattern. Stops should generally be positioned just beyond the high or low of the engulfing candle, depending on the direction of the trade. For a bullish engulfing, place the stop below the low of the engulfing candle to allow for some movement without being stopped out prematurely. For a bearish engulfing, place the stop above the high of the engulfing candle to protect against any potential reversal or false breakouts. Placing stops in these locations helps manage risk while giving the trade enough room to develop, without exposing the position to unnecessary losses. The Engulfing Pattern Across Timeframes One of the advantages of the Engulfing candle is its versatility. It can be used effectively on any timeframe, from short-term intraday charts to long-term daily or weekly charts. On shorter timeframes, the Engulfing pattern may act as a signal for intraday trades, indicating a quick shift in momentum. On longer timeframes, the pattern could signal a larger, more sustained trend change, suggesting a longer-term move in the market. Regardless of the timeframe, the Engulfing candle remains an important pattern because it highlights a significant change in market sentiment, whether on a micro or macro scale. Final Thoughts The Engulfing candle is an effective pattern for identifying a shift in market momentum, either from bullish to bearish or vice versa. However, its effectiveness is heavily influenced by location and confirmation. When the pattern forms at a key support or resistance level and is followed by confirmation from the next candle, it can offer valuable insight into where the market may be headed. By combining these elements with good stop placement, traders can better manage risk and increase the reliability of the signals this pattern provides. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Education
by Capitalcom
1
Revenge Trading vs. Roaring Comeback: How to Tell the Difference“I’m going to get even with the market and I’m going to get even today!” We’ve all been there. You take a loss—maybe a small one, maybe an account-crushing one—and something inside you snaps. Logic leaves the chat, and a new trader takes over: the vengeful, angry version of you who’s out to "get back" at the market. Welcome to the world of revenge trading, where decisions are fueled by frustration, and the market does what it always does: punishes impatient and emotional traders. But what if there’s a better way? What if instead of spiraling into self-destruction, you could channel that energy into a thoughtful and strategic comeback? That’s the difference between revenge trading and a true trader’s rebound. Grab your hot coffee and let’s talk about it. 💥 Revenge Trading: The Fastest Way to Financial Self-Sabotage Revenge trading isn’t a trading strategy—it’s an emotional response masquerading as a quick-witted reaction. The thought process goes like this: "I just lost money. I need to make it back—fast." So you double down, size up, stretch out the leverage ratio and ignore your usual risk management rules. Maybe you trade assets you don’t even understand because the price looks juicy. Maybe you jump into a leveraged position without a stop loss because, hey, you’re in it to win it. What could go wrong? Everything. Everything can go wrong. Revenge trading is the financial equivalent of trying to punch the ocean. The market doesn’t care that you’re mad. It doesn’t owe you a winning trade. And when you start making impulsive decisions, the only thing that may get hurt is your trading mindset. 📢 Signs You’re Revenge Trading You’re taking trades you wouldn’t normally take. You’re increasing position sizes irrationally. You’re ditching risk management (stop losses, position sizing, logic, etc.). You feel desperate to "make it back"—right now. You’re ignoring your trading plan, assuming you had one to begin with. Recognizing these signs is the first step to stopping the cycle. But avoiding revenge trading is only half of the battle—you need to know how to stage a real comeback. 🦁 Staging the Roaring Comeback A roaring comeback isn’t about making back your losses in one dramatic trade. It’s about recalibrating, reassessing, and regaining control. Here’s how traders who actually recover from losses do it: 📌 Recognize the Signs Early If your heart rate spikes and your fingers are itching to “fix” a bad trade immediately, stop. That’s not a setup. That’s an emotional reaction. 📌 Set Daily Loss Limits If you hit your max loss for the day, you’re done. No exceptions. Your best decision at that point is to fight another day with a clear head. 📌 Step Away from the Screens Revenge trading thrives on impulsivity, and the best way to kill that impulse is to take a break. Go outside. Breathe. The market isn’t going anywhere. Now touch that grass. 📌 Post-Loss Review: What Actually Happened? Was the loss due to a bad strategy, poor execution, or just market randomness? Pull up your trading journal ( you do keep one, right ?) and break it down. 📌 Reaffirm Your Strategy (Tweak if Necessary) If your loss came from a solid trade setup that just didn’t work, then there’s nothing to change. If it came from a mistake, figure out how to prevent that mistake from repeating. 📌 Reduce Risk for the Next Trades After a loss, the worst thing you can do is over-leverage. Instead, cut your position size and take smaller, high-probability trades to rebuild confidence. Howard Marks, a firm believer in market psychology, always reminds investors that the biggest risk is emotional overreaction. Stay disciplined. 📌 Trust the Process The best traders understand that one trade does not define them. They trust their system, stick to their edge, and take losses as part of the game. Trading is a long-term play, not a single battle to be won or lost. 💚 Turning Losses into Lessons Losses are tuition fees for the market’s greatest lessons. Every great trader has taken hits—what separates them from the rest is how they respond. The thing is this can happen anywhere—from an ill-fated trade in the crypto market (it’s wild out there) to an account-battering reaction to anything that pops out of the earnings calendar . How do you deal with a trading loss? And when’s the last time you had to stiffen that upper lip and make your comeback? Share your experience in the comments!
SP:SPXEducation
by TradingView
11
A Triple Top Pattern: Signals and StrategiesA Triple Top Pattern: Signals and Strategies Traders are always on the lookout for reliable analysis tools that can help them make informed trading decisions. One such tool is the triple top trading pattern. It is a bearish reversal formation that can help traders identify potential trend reversals and take advantage of market opportunities. In this FXOpen article, we will explore what the triple top pattern is, what it indicates, and how to identify it on price charts. Keep reading to find examples that will help you understand how to use it in a trading strategy. What Is a Triple Top Pattern? A triple top is a technical analysis pattern that signals a potential reversal in a trend. Is the triple top bullish or bearish? It’s a bearish formation. The pattern occurs when the price of an asset hits the same resistance level three times, failing to break above it on each occasion. This indicates that buyers are losing strength and sellers are starting to dominate the market. It is often seen after a sustained uptrend. Identifying a triple top involves spotting three distinct peaks at roughly the same price level, separated by two troughs. The peaks are formed when the price hits resistance but fails to push through, while the troughs occur when the price retraces after each failed attempt. To confirm a valid triple top, the peaks should be close in height, and the troughs should create a roughly horizontal neckline. The pattern is confirmed when the price breaks below the neckline, signalling that sellers have overtaken buyers. Triple Top Chart Pattern Trading Strategy Once traders have identified the triple top formation, they can use various trading strategies to take advantage of it. However, there are common rules that are used as the basis: - Entry: Traders enter a short position when the price breaks below the neckline, which is the level that connects the two troughs that separate the peaks. This level is a critical support level, and when it is broken, it confirms the triple top candlestick pattern and indicates that the trend is reversing. - Stop Loss: To manage risk, traders place a stop-loss order above the neckline. If the price starts to rise again, the stop-loss order will limit potential losses. The theory states that traders can place a stop-loss on the neckline. However, the price often retests the support level after a breakout, so the risk of an early exit rises. - Take Profit: There are several ways of determining a profit target. The most common technique is to measure the distance between the tops and bottoms and subtract it from the triple top breakout point. Another strategy is to identify the target based on the closest support levels. However, this may limit potential returns if the support is too close to the entry point. Therefore, traders sometimes use trailing stops to lock in potential profits as the price continues to fall. Trading Example In the chart above, the price formed the triple top. We could have entered a short position once the price broke below the neckline and closed it either at the point equal to the distance between the peaks and the neckline or at the closest support level, as the levels are almost equal. However, selling volumes were low (1) at the breakout level, so we could have expected an upcoming bullish reversal. Therefore, we wouldn’t have kept the position beyond the initial take-profit target. How Traders Confirm the Triple Top To confirm the triple top pattern and ensure its validity, traders use a combination of technical tools and indicators. These help confirm that the trend is indeed reversing and not just experiencing a temporary pullback. Here are the key methods traders use: - Neckline Break. The most important confirmation comes when the price breaks below the neckline, which is the horizontal level connecting the lows between the peaks. A clean break suggests a stronger reversal. - Volume Analysis. Volume plays a crucial role in confirming the triple top. Traders look for a surge in selling volume when the price breaks the neckline. If the volume is low during the breakout, the pattern may not be reliable, and a bullish reversal could follow. - Momentum Indicators. Traders often use momentum indicators like the Stochastic Oscillator or Moving Average Convergence Divergence (MACD). When these indicators show bearish divergence, it signals a potential downward reversal. A negative crossover in the MACD or Stochastic adds further confirmation. - Retest of Neckline. Sometimes, after breaking the neckline, the price may retrace and retest this level as resistance. A failed retest, where the price does not move back above the neckline, confirms that sellers are in control. Triple Top vs Triple Bottom It is important to distinguish between the triple top and the triple bottom chart patterns, as the former is the bearish setup, while the latter is a bullish reversal formation. The triple bottom setup forms when the price hits a particular support level three times and fails to break through it. It suggests that the sellers have lost their strength, and the buyers are starting to take control. The bottoms are separated by two peaks, which occur when the price retraces some of its gains from the support level. Traders use the same principles to trade the triple bottom as they would the triple top but vice versa. They enter a long position when the price breaks above the neckline and set a stop-loss order below it. The take-profit target might equal the distance between bottoms and peaks or be set at the closest resistance level. Triple Top Challenges While the triple top pattern is a valuable tool for spotting reversals, it has its limitations. Traders should be aware of the following challenges: - False Breakouts. The price may break below the neckline only to quickly reverse back, leading to a false signal. This can cause traders to enter losing positions if they act too quickly without further confirmation. - Extended Sideways Movement. Sometimes, the price can stay near the neckline after a breakout, leading to indecision and uncertain market behaviour. This sideways movement can make it difficult to determine if the trend has truly reversed. - Retests Leading to Reversals. After the initial breakout, the price may retest the neckline and move back above it, invalidating the triple top pattern. Traders need to be cautious and set appropriate stop-loss orders to help potentially mitigate risk. Final Thoughts The triple top pattern offers traders a powerful tool for identifying potential market reversals. However, it’s crucial to confirm the pattern and integrate it with other forms of analysis to avoid false signals. Ready to put these insights into action? Open an FXOpen account today, and trade with a broker offering tight spreads, low commissions, and advanced trading platforms. FAQ What Does a Triple Top Mean in Trading? The triple top pattern meaning refers to a bearish reversal formation indicating a potential end to an uptrend. It forms when the price reaches the same resistance level three times without breaking through, suggesting weakening buying momentum and increasing selling pressure. This pattern signals that the asset's price may soon decline. How Do You Confirm the Triple Top Pattern? To confirm a triple top pattern, traders watch for a decisive break below the neckline, which connects the lows between the peaks. Increased trading volume during the breakout strengthens the confirmation, indicating strong seller interest. Technical indicators like the Stochastic Oscillator showing bearish divergence can provide additional validation. Is a Triple Top Bullish? No, a triple top is not bullish; it is a bearish reversal pattern. It signifies that the asset's price has repeatedly failed to surpass a resistance level, indicating diminishing upward momentum. Traders see this as a cue to consider short positions or to exit existing long positions. Is a Triple Top Stronger Than a Double Top? A triple top is generally considered stronger than a double top pattern because the price has failed to break resistance three times instead of two. This extra failed attempt reinforces the strength of the resistance level and increases the likelihood of a significant reversal. However, both patterns are important and should be analysed with other market factors. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Liquidity Grab eurusd Supply & Demand Zones: 🔻 A major supply zone (resistance) is marked above 1.09618, where institutional selling pressure may appear. 🔹 A demand zone (support) is established below 1.09064, providing potential entry opportunities. 📈 Trading Plan & Targets: ✅ Expecting a bullish move from the demand zone as price reacts positively. 🎯 Target 1: 1.09064 – Mid-level liquidity area. 🎯 Target 2: 1.09618 – Major resistance & supply zone. 📌 Smart Money Concept (SMC): 🔹 Price is forming a liquidity sweep before a potential bullish push. 🔹 The structure suggests an accumulation phase, with a breakout confirmation above key levels. 💡 Key Takeaways: 🔹 Bullish bias unless price invalidates the demand zone.
Education
by Greenfireforex
Trading Is Not Gambling : Become A Better Trade Part IOver the last few weeks/months, I've tried to help hundreds of traders learn the difference between trading and gambling. Trading is where you take measured (risk-restricted) attempts to profit from market moves. Gambling is where you let your emotions and GREED overtake your risk management decisions - going to BIG WINS on every trade. I think of gambling in the stock market as a person who continually looks for the big 50% to 150%++ gains on options every day. Someone who will pass up the 20%, 30%, and 40% profits and "let it ride to HERO or ZERO" on most trades. That's not trading. That's flat-out GAMBLING. I'm going to start a new series of training videos to try to help you understand how trading operates and how you need to learn to protect capital while taking strategic opportunities for profits and growth. This is not going to be some dumbed-down example of how to trade. I'm going to try to explain the DOs and DO N'Ts of trading vs. gambling. If you want to be a gambler - then get used to being broke most of the time. I'll work on this video's subsequent parts later today and this week. I hope this helps. At least it is a starting point for what I want to teach all of you. 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
AMEX:SPYEducation
by BradMatheny
27
Best GOLD XAUUSD Consolidation Trading Strategy Explained In article , you will learn how to identify and trade consolidation on Gold easily. I will share with you my consolidation trading strategy and a lot of useful XAUUSD trading tips. 1. How to Identify Consolidation In order to trade consolidation, you should learn to recognize that. The best and reliable way to spot consolidation is to analyse a price action. Consolidation is the state of the market when it STOPS updating higher highs & higher lows in a bullish trend OR lower lows & lower highs in a bearish trend. In other words, it is the situation when the market IS NOT trending. Most of the time, during such a period, the price forms a horizontal channel. Above is a perfect example of a consolidation on Gold chart on a daily. We see a horizontal parallel channel with multiple equal or almost equal highs and lows inside. For a correct trading of a consolidation, you should correctly underline its boundaries. Following the chart above, the upper boundary - the resistance, is based on the highest high and the highest candle close. The lowest candle close and the lowest low compose the lower boundary - the support. 2. What Consolidation Means Spotting the consolidating market, it is important to understand its meaning and the processes that happen inside. Consolidation signifies that the market found a fair value. Growth and bullish impulses occur because of the excess of demand on the market, while bearish moves happen because of the excess of supply. When supply and demand find a balance, sideways movements start . Look at the price movements on Gold above. First, the market was rising because of a strong buying pressure. Finally, the excess of buying interest was curbed by the sellers. The market started to trade with a sideways range and found the equilibrium At some moment, demand started to exceed the supply again and the consolidation was violated . The price updated the high and continued growth. Usually, the violation of the consolidation happens because of some fundamental event that makes the market participants reassess the value of the asset. At the same time, the institutional traders, the smart money accumulate their trading positions within the consolidation ranges. As the accumulation completes, they push the prices higher/lower, violating the consolidation. 3. How to Trade Consolidation Once you identified a consolidation on Gold, there are 2 strategies to trade it. The resistance of the consolidation provides a perfect zone to sell the market from. You simply put your stop loss above the resistance and your take profit should be the upper boundary of the support. That is the example of a long trade from support of the consolidation on Gold. The support of the sideways movement will be a safe zone to buy Gold from. Stop loss will lie below the support zone, take profit will be the lower boundary of the resistance. AS the price reached a take profit level and tested a resistance, that is a short trade from that. You can follow such a strategy till the price violates the consolidation and establishes a trend. The market may stay a very extended period of time in sideways, providing a lot of profitable trading opportunities. What I like about Gold consolidation trading is that the strategy is very straightforward and completely appropriate for beginners. It works on any time frame and can be used for intraday, swing trading and scalping ❤️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.
TRADENATION:XAUUSDEducation
by VasilyTrader
4