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Trendlineanalysis

META to $740 - Chance for Strong BounceNASDAQ:META Meta has hit the trend line from November 2022 after a price loss of 20% and has shown with a first small bounce that it is still relevant. At the same time, the SMA200 is also at the same point. Last but not least, the 0.238 Fib is also located in this area (from the entire upward movement from November 2022). Technically, we can therefore definitely expect a bounce that could take us to the previous ATH at $739. Fundamentally, Meta is also not overvalued due to its strong growth. As with many of the Mag7s, there are still problems with the AI strategy, which does not appear to be well thought out in either monetary or structural terms. However, Meta is a good candidate for actual efficiency gains due to its affiliation with the advertising market. However, the general growth is already reason enough to buy. Support Zones $580.00 $541.00 Target Zones $740.00
NASDAQ:METALong
by LGNDRY-Capital
2
Amd - The One And Only Setup For 2025!Amd ( NASDAQ:AMD ) shifts to a very bullish market: Click chart above to see the detailed analysis👆🏻 Perfectly following previous cycles, Amd corrected about -60% over the past couple of months. However now we are seeing some first bullish signs at a major confluence of support. If we actually also witness bullish confirmation, an incredible rally of about +200% could follow. Levels to watch: $100, $300 Keep your long term vision, Philip (BasicTrading)
NASDAQ:AMDLong
by basictradingtv
BTCUSD 2H | Breakout Flow + BOS Confirmation – CelestiaPipsBTC is slowly developing a breakout structure on the 2H timeframe . Multiple bullish BOS points and a solid NY session demand base formed. Price is currently retesting the breakout zone after sweeping short-term liquidity. If price holds this zone, we could see continuation toward 88,900. I’ve mapped out the entire flow – BOS, entry zone, and final target. Watch how price reacts from this level. — Shared by CelestiaPip
BITSTAMP:BTCUSDLong
by CelestiaPips
Micron Technology - Fully Resisting The Stock Market Crash!Micron Technology ( NASDAQ:MU ) is one of the few bullish stocks: Click chart above to see the detailed analysis👆🏻 Despite the stock market kind of "crashing" lately, Micron Technology is one of the few stocks which remains in a rather bullish environment. Following the uptrend, the bullish break and retest and the beautiful cycles on Micron Technology, this strength will soon become reality. Levels to watch: $90, $180 Keep your long term vision, Philip (BasicTrading)
NASDAQ:MULong
by basictradingtv
19
Bitcoin - Please Just Listen To The Charts!Bitcoin ( CRYPTO:BTCUSD ) remains in a bullish market: Click chart above to see the detailed analysis👆🏻 Despite literally everybody freaking out about cryptos lately, big brother Bitcoin is still creating bullish market structure. During every past cycle we witnessed a correction of at least -20% before we then saw a parabolic rally. So far, Bitcoin is just doing its normal "volatility thing". Levels to watch: 70.000, $300.000 Keep your long term vision, Philip (BasicTrading)
CRYPTO:BTCUSDLong
by basictradingtv
36
S&P500 - Donald Trump Is Crashing Markets!S&P500 ( TVC:SPX ) is starting a correction: Click chart above to see the detailed analysis👆🏻 Since Donald Trump was elected the markets have been super volatile and clearly not too easy to trade. But now it seems like bears are slowly taking over the entire U.S. stock market after we just saw a drop of -10% within a couple of days and a correction becomes more and more likely. Levels to watch: $6.100, $4.800 Keep your long term vision, Philip (BasicTrading)
TVC:SPXShort
by basictradingtv
21
Microsoft - A Little Lower And Much Higher!Microsoft ( NASDAQ:MSFT ) is about to retest strong support: Click chart above to see the detailed analysis👆🏻 In mid 2024 Microsoft perfectly retested the previous channel resistance trendline and the recent weakness has not been unexpected at all. However the overall trend still remains rather bullish and if Microsoft retests the previous all time high, a significant move will most likely follow. Levels to watch: $350 Keep your long term vision! Philip (BasicTrading)
NASDAQ:MSFTLong
by basictradingtv
3
How to Draw Trendlines Like a Pro – Rulers Out, Rules In!Hi everyone! If you don’t have any rules for drawing a trendline, then this is by far the most subjective technical analysis criterion of all. So, grab your ruler, and let’s dive in! ;) Without clear guidelines, you can draw it however you want, shaping the narrative to fit your bias. This makes it the perfect tool to talk yourself into a trade or justify staying in a bad one—there’s always a new “support” coming… If you don't have rules, you can always find some dots to connect, making it look "perfect" for you. In this post, I'll discuss buying opportunities using trendlines, share key rules for drawing them correctly, and highlight common mistakes to avoid - all with a focus on mid- and long-term investment opportunities. ------------------------- The Basics: How to Draw a Trendline The trendline is a highly effective tool for mid- and long-term investors to find an optimal buying zone for their chosen asset. I always take a full view of the chart, analyzing its entire history to find the longest trendline available. The longer the trendline, the stronger it is! To draw a trendline, we simply connect two points and wait for the third touch to confirm it. Easy, right? The strongest trendline comes from points that are easily recognizable—you should spot them in a split second. Maximum view, if possible Monthly chart, connect the dots and wait for a third one. For me, the third and fourth touches are the most reliable. If you have to look deeply to find where to draw a trendline, then it's already a first sign that it’s not strong! The best ones appear instantly. --------------------------- Two Myths About Trendlines Myth #1: "You cannot draw a trendline without three touching points." Don’t even remember from where I heard that kind of bs but as you see in the images above, yeah I can. If I have a correct lineup, the third touch is the strongest. Myth #2: "The more touches, the stronger the trendline." Yes, a trend appears stronger with more touches, but each additional touch increases the odds of a break or trend change. To buy from, let’s say, the sixth touch, there must be strong confluence factors, and fundamentals should support the investment. “The trend is your friend, until the end when it bends.” — Ed Seykota Sure, I’ve had great trades from the fifth or seventh touch, but as said, the area has to be strong, combining multiple criteria. Think of a trendline like 3-5 cm thick ice on a lake. You can’t break it with one hit, or the second, or the third. But after the fourth or fifth, it starts to crack, and by the sixth—boom! From my psychological perspective, the more touches, the weaker the trendline becomes. ----------------------- Rule #1: Wick to Wick or Body to Body If there aren't any anomalies, the trendline should always be drawn from wick to wick (image below) or body to body. Here was the trendline draw from wick to wick I mostly use body-to-body when there is a lot of noise on the chart and many large wicks that don’t show the real price behavior—whether from a panic sell-off or other unexpected market moves. Candlestick chart, the trendline drawn from body-to-body Tip! Body-to-body means drawing trendlines from closing prices to remove unnecessary noise from the chart. To make the chart even clearer, I often use a line chart (it tracks closing prices), which filters out the noise and gives a cleaner view of the price action. The same chart as above using line chart. Mistake to avoid: If you start from the wick but the second point is from the body, it's wrong. This can lead to misleading breakout trades or confusing rejection trades. If there are no significant large wicks, go from wicks. If a chart offers a lot of huge panic-sell wicks, use bodies instead to get a cleaner setup. Quite often, I use a hybrid version as well. We are investors, not traders. We need a price zone, not an exact price! In these cases, I combine wicks and closing prices to find the optimal trendline, which stays somewhere between them. Light-blue is the zone ----------------------- Rule #2: Higher Highs Strengthen the Trendline A trendline is more reliable if the price makes a new higher high (HH) after the previous rejection, and before it approaches a trendline. The third and fourth touch came from higher high (HH) levels This confirms that the recent trend is strong. If it all lines up, we can step in! ----------------------- Rule #3: Even Timing Between Touches A trendline rejection works best when the timing between touches is symmetrical. They don’t have to be perfectly equal but they also shouldn’t be wildly different - one touch being very small and another very large can weaken the trendline’s reliability. A good combinations is when the price comes from higher high levels, the next touch has an equal or fairly similar distance between previous ones. Yeah, there are quite a lot of touches, but you get the point; market symmetry plays an important role in making decisions. Warning: If the next touch comes too soon, especially from a lower high (LH) levels, which signals that momentum may be fading, and the touch happens at an uneven distance, it weakens the trendline’s reliability. So, watch out for that. Two alerts: uneven length between touches & comes from lower highs. Next red alert: When there are huge uneven gaps between touches, as shown in the picture below. The first and second touch compared to the second and third touch are out of balance, weakening the trendline's reliability. ------------------------ Trendline Summary: Key Criteria for Mid- to Long-Term Analysis Open the maximum chart view – analyze all available data for the asset. The higher the timeframe, the stronger the trendline. A trendline needs two clean and clear points to be drawn. The highest probability rejection happens at the third and fourth touch. If there are large wicks or panic sell-offs, use closing prices (body-to-body). Remove noise and wicks by using a line chart for a clearer view. A trendline touch is strongest when the price approaches from a higher high (HH). A trendline touch is strongest when the distance between touches is symmetrical. A slight flex in the trendline is ideal; it should be between 20 to 35 degrees, not too steep in its climb. ;) These are the main criteria for a trendline that I use when analyzing stocks or any asset from a mid-to long-term perspective. ---------------------- Trendlines Alone Are Not Enough Now, here’s the interesting part. Even if a trendline looks perfect and meets all criteria, I still won’t rush to share an analysis. Why? Because a trendline alone isn’t enough. A trendline is just one piece of the puzzle. We need multiple confluence factors in a single price zone to make the setup truly strong and reliable. Usually, I need at least 3-7 criteria to align before making a move or recommendation. So, that's it! A brief overview and hopefully, you found this informative. Feel free to leave a comment with your thoughts! Before you leave - Like & Boost if you find this useful! 🚀 Trade smart, Vaido
NASDAQ:TSLAEducation
by VaidoVeek
42
GOOGL ON SUPPORT: 23% BOUNCE IMMINENTNASDAQ:GOOGL GOOGL has consolidated significantly over the last few weeks and, like the NASDAQ, has also taken a beating. Due to the now attractive valuation, the continued stable growth and earnings growth, GOOGL is still a good investment. Technically, we have reached a trend line and a weaker horizontal support with a further support area at around USD 150. We are already seeing the first RSI divergence. The Bollinger Bands (not shown in the chart, otherwise it would be confusing) are also far overstretched and make a bounce likely. There is also an open gap at $192 - $203. I would open about 50% of the actual trading position now and the rest when the price falls into the green box, which I still consider to be a possible consolidation area. If the price turns immediately, we are still in with half. Target Zones: $192.00 $205.00 Support Zones: $165.00 $150.00
NASDAQ:GOOGLLong
by LGNDRY-Capital
2
DOGE Holding Trendline Support – Another Rally Incoming?$DOGE/USDT is currently holding support at the rising trendline, which has historically led to strong upward moves. Every time the Stochastic RSI formed a bullish crossover near this trendline, the price experienced a significant bullish rally. The Stoch RSI is currently in the oversold zone, similar to previous points where major uptrends started. If history repeats, DOGE could be gearing up for another strong move. DYOR, NFA
Long
by unichartz
6
Gold (XAU/USD) Trade Plan**Gold (XAU/USD) Trade Plan** 🏆 📌 **Key Levels:** - **Support:** $2978 - **Resistance:** $2991 📈 **Bullish Scenario (Breakout Above $2991)** - **Buy Entry:** After a strong breakout with confirmation. - **Take Profits:** - **TP1:** $2996 - **TP2:** $3001 - **TP3:** $3005 - **Indicator Confirmation:** EMA 20 for trend strength. 📉 **Bearish Scenario (Support Break at $2978)** - **Potential Retracement or Reversal:** If price breaks below $2978, it may trigger a downtrend. - **Risk Management:** Use stop-loss and position sizing to manage risk. 🔍 **Watch for Volume & Candle Patterns for Confirmation!** 🚀
OANDA:XAUUSDLong
by elitetrader9090
Bitcoin’s Fair Value Gap Filling – Will Trendline Hold?Bitcoin is currently trading at its rising trendline support, which has been a key level for price action. On the 5D timeframe, BTC is respecting this strong upward trendline, indicating that buyers are stepping in to defend it. The previous resistance has now turned into support, adding confluence to this critical level. If BTC holds here, it could signal a bullish continuation, while a breakdown may trigger further downside. On the 1D timeframe, BTC is filling the Fair Value Gap (FVG), a liquidity zone where price typically seeks balance before making the next move. The Stoch RSI is in the oversold region, suggesting that a bounce could be on the horizon if demand picks up. Bullish Scenario : Holding above the trendline and reclaiming $81,500+ could trigger another leg up. Bearish Scenario : Losing the trendline support and breaking below $76,000 could lead to deeper correction. Key Levels to Watch: ✅ Bounce from $76,000-$78,000 → Potential bullish reversal ⚠️ Break below $76,000 → Risk of further downside
Long
by unichartz
2
XAU/USD Daily Chart Analysis! Detailed ExplainationMarket Overview: Gold (XAU/USD) is currently trading around $2,910, showing a slight decline of -0.05% on the daily timeframe. The market has been in a strong uptrend, breaking previous structures and forming higher highs and higher lows. However, the current price action suggests a potential pullback before another bullish continuation. Key Technical Observations: 1. Resistance & Strong Resistance Zone ($2,950 - $3,000+) The price has reached a strong resistance zone near the $3,000 psychological level, where selling pressure is evident. A weak high has been marked, indicating that buyers may attempt to break this level, but sellers could push the price down before any significant breakout. If price successfully closes above this resistance, it could trigger further bullish momentum towards $3,100 or higher. 2. Support and Demand Zone ($2,750 - $2,800) The demand zone between $2,750 and $2,800 has historically acted as a strong support level. This zone aligns with previous price accumulation and a key structural support level. A pullback to this area could present buying opportunities, as institutional buyers may step in. 3. Market Structure and Breaks of Structure (BOS) & Change of Character (ChoCH) Multiple Change of Character (ChoCH) points have been noted, signaling shifts in momentum. The Break of Structure (BOS) suggests a continuation of the prevailing bullish trend, with minor corrections along the way. The most recent ChoCH indicates a potential short-term bearish retracement before a continuation to the upside. 4. Strong Low and Potential Support Levels ($2,500 - $2,600) The strong low is marked below $2,500, which acts as a long-term support zone. If the demand zone at $2,750 - $2,800 fails, the next major support area lies around $2,600. However, given the overall bullish trend, a drop to these levels would likely be short-lived unless macroeconomic factors shift significantly. Potential Price Scenarios: 🔵 Bullish Scenario (Primary Outlook) Price may retrace towards the $2,750 - $2,800 demand zone. If buyers defend this level, we can expect a bullish reversal towards $2,950 - $3,000 resistance. A strong breakout above $3,000 would likely trigger further upside momentum towards $3,100+. 🔴 Bearish Scenario (Alternative Outlook) If sellers take control and push price below the $2,750 support, further downside could follow. In this case, the next major support levels would be $2,600 - $2,650, where buyers may re-enter. A breakdown below $2,500 would signal a shift in long-term market structure, invalidating the bullish trend. Trading Plan & Strategy: ✅ For Long Entries: Look for bullish price action (e.g., pin bars, bullish engulfing candles) in the $2,750 - $2,800 demand zone. Target $2,950 - $3,000 as the first take-profit level. If price breaks above $3,000, hold positions for a move towards $3,100 or higher. ❌ For Short Entries: If price struggles to break above $3,000, short positions can be considered with stop losses above resistance. Targets for short trades: $2,800 (first TP), $2,650 (second TP). Final Thoughts About Trend: Gold remains in a strong bullish trend, but a short-term retracement could be expected before the next rally. Traders should focus on key levels like $2,750 - $2,800 support and $3,000 resistance to confirm the next move. Watch for confirmation signals before entering trades. 📊🚀
OANDA:XAUUSDLong
by GoldMasterTrades
TSLA’s Failed Breakout: Reversal or Deeper Drop Ahead?Tesla (TSLA) Market Outlook & Long-Term Investment Report Tesla (TSLA) has positioned itself as more than just an electric vehicle (EV) manufacturer. With its advancements in robotics, artificial intelligence (AI), autonomous driving, and energy solutions, Tesla is becoming a major player in multiple high-growth industries. While recent price action has shown volatility, long-term investors see buying opportunities at key support levels. Technical Analysis & Key Levels 1. High-Timeframe Context (HTF) - HTF Resistance: $415.71 – Tesla attempted to break above this level but faced rejection, leading to a sharp pullback. - Major Support & Resistance Zone – A critical level where Tesla has previously consolidated and reacted strongly. - Liquidity Zones (LQZs): - Daily LQZ (~$238.18) – A key demand area where buyers could step in. - Weekly LQZ (~$182.44 - $108.01) – A deeper liquidity zone, potentially offering even better long-term buying opportunities if the downtrend continues. 2. Market Structure & Trend Analysis - **Failed Breakout:** Price action showed a breakout above resistance, but the failure to hold led to a sharp reversal, indicating a potential liquidity grab. - **Retest of Support:** The price is currently testing a significant support level, which will determine the next move. - **Momentum Shift:** The aggressive rejection at HTF resistance suggests sellers are in control in the short term, but this creates long-term entry opportunities. Long-Term Investment Thesis Tesla's expansion into AI, robotics, and autonomous technology presents significant long-term growth potential beyond its traditional automotive business. Here are the key areas driving Tesla's future: 1. Robotics & Artificial Intelligence - **Tesla Optimus Robot:** Tesla’s humanoid robot project is expected to revolutionize industrial automation. It could become a major revenue source as industries move toward AI-driven labor solutions. - **Neural Networks & AI Advancements:** Tesla’s AI systems, used for Full Self-Driving (FSD), are also being adapted for robotics, increasing its competitive edge. 2. Energy & Infrastructure Expansion - **Solar & Energy Storage:** Tesla’s **Megapack** and **Powerwall** businesses are growing as renewable energy adoption accelerates. - **Grid-Scale Energy Solutions:** Tesla’s energy division could play a crucial role in stabilizing power grids worldwide, providing another strong revenue stream. 3. Autonomous Vehicles & FSD - Tesla’s **Full Self-Driving (FSD)** software could create a high-margin subscription-based revenue model. - The potential for a **Tesla Robotaxi network** could disrupt the ride-sharing industry and unlock new business models. 4. Synergies with SpaceX & AI Computing - Tesla benefits indirectly from advancements in **SpaceX** technologies, such as materials science and AI computing. - The **Dojo supercomputer** is being developed to enhance AI training, which could accelerate Tesla’s robotics and self-driving ambitions. Investment Strategy & Accumulation Plan For long-term investors, Tesla's volatility provides attractive buying opportunities. A strategic approach would involve: 1. Key Accumulation Levels - **Daily LQZ (~$238)** – A strong support zone where Tesla could see renewed buying interest. - **Weekly LQZ (~$182-$108)** – A deeper level that may offer excellent long-term value if the price declines further. 2. Dollar-Cost Averaging (DCA) Strategy - Instead of trying to time the absolute bottom, investors can **ladder buy-ins** at different liquidity zones to optimize their cost basis. - This reduces risk and takes advantage of market dips without excessive exposure. 3. Risk Management & Long-Term Horizon - Tesla is known for its volatility; maintaining **a long-term vision (5+ years)** is crucial for maximizing gains. - Investors should be prepared for short-term fluctuations while focusing on Tesla’s multi-industry expansion. Conclusion Tesla’s failed breakout and recent pullback present a strategic buying opportunity for long-term investors. With its advancements in robotics, AI, energy, and autonomous technology, Tesla is well-positioned to be a key player in multiple trillion-dollar industries over the next decade. The current price action suggests that accumulation at liquidity zones could provide strong long-term returns. As the robotics industry grows, Tesla’s potential as a leading producer for industrial automation is increasingly clear. Investors with a bullish long-term outlook may find current and upcoming dips as prime entry points. Final Thought **Is Tesla’s current dip a gift for long-term believers?** With its expanding technological footprint, this may be an opportunity to accumulate before the next major growth cycle. 🚀
NASDAQ:TSLALong
by Adlercon333
Gold - A Bullish Close Would Be Insane!Gold ( TVC:GOLD ) has to close bullish now: Click chart above to see the detailed analysis👆🏻 Just since the end of 2022, Gold rallied about +80% which is simply unbelievable looking at the already significant market cap of the precious metal. However this bullrun does not seem to be over and if Gold confirmes the trendline breakout, another rally of +40% will follow soon. Levels to watch: $4.000 Keep your long term vision, Philip (BasicTrading)
TVC:GOLDLong
by basictradingtv
33
"EUR/USD: Long Opportunity at Trendline Support"Uptrend Momentum with Key Support & Resistance Levels 1. Overall Market Structure & Trend The EUR/USD pair is currently in an upward trend, as indicated by the well-defined ascending trendline. This trendline has been respected multiple times, providing strong dynamic support. The price has been making higher highs and higher lows, further confirming the bullish structure. 2. Critical Buying Zone & Upward Trendline Support A key buying zone is highlighted in the 1.0400–1.0440 region. This area aligns with both the trendline support and the previous consolidation zone, making it a strong potential demand area. If the price retraces into this zone, a bullish reaction is expected, offering a potential entry opportunity for long positions. 3. Moving Averages as Dynamic Support The price is currently trading above the 200-period moving average (blue) and the 50-period moving average (red). These moving averages are acting as dynamic support levels, reinforcing the overall bullish bias. A successful retest of these levels could provide confirmation for further upside movement. 4. Potential Upside Target at 1.0550 The immediate upside target is set around the 1.0550 resistance level, which marks a previous high. A breakout above this zone could trigger further bullish momentum, potentially pushing the price towards higher resistance levels. 5. Short-Term Pullback & Rebound Potential Currently, the price is undergoing a minor correction. However, as long as the trendline and the buying zone remain intact, a bullish rebound is the most likely scenario. The red arrow on the chart indicates an anticipated upward movement upon a successful retest of the support zone. 6. Conclusion & Trading Strategy - Bullish Outlook: As long as the price remains above the upward trendline and key support zone, the bias remains bullish. 🔹Key Levels to Watch: Support: 1.0400–1.0440 (buying zone) Resistance: 1.0550 (target area) Trade Setup: A potential long entry could be considered upon confirmation of a bounce from the trendline and support area, with a target of 1.0550 and a stop-loss below 1.0380. 😊Don't Forget To Hit The Like Button & Share Your Thoughts In Comments.
Long
by SOAM_PRO_TRADER
EUR/USD: Bearish Outlook – Targeting 1.03630 & Below 📊 Market Structure & Key Levels EUR/USD is currently rejecting a key supply zone (1.0450 - 1.0480), showing strong signs of continued downside pressure. The pair is in a bearish trend, with price action confirming lower highs and lower lows, as seen in the Prime Market Terminal charts. 📉 Key Levels to Watch: Supply Zone: 1.0450 - 1.0480 (Strong resistance & liquidity zone) Demand Zone: 1.03630 - 1.03219 (Institutional liquidity target) Extended Bearish Target: 1.02687 (Deep liquidity grab area) 🔍 Trade Setup: Bearish Bias Towards Key Support Levels 📌 Entry: Sell between 1.0450 - 1.0480 🎯 TP1: 1.03630 (Liquidity Zone) 🎯 TP2: 1.03219 (Institutional Liquidity Grab) 🎯 TP3: 1.02687 (Extended Downside Target) ❌ SL: 1.05150 (Above Key Resistance) 📉 Why This Trade? (Prime Market Terminal Analysis) ✔️ Bearish Market Structure – The 1D & 4H trend remains bearish, confirming a downward trajectory. Supertrend is bearish, and price is trading below the 72 EMA & 288 EMA, showing weak bullish momentum. ✔️ Liquidity Targets Identified – Market depth analysis from Prime Market Terminal reveals a lack of strong buy orders above 1.0450, suggesting that sellers dominate. ✔️ Volume Profile Analysis – The visible range (VPVR) highlights a high-volume node at 1.03630, making it a strong area for price to seek liquidity. ✔️ Commitment of Traders (COT) Data – Institutional positioning indicates an increase in short contracts for the EUR, aligning with the bearish trend. ✔️ Order Flow & Market Depth – Prime Market Terminal shows institutional sellers stacking sell orders at 1.0450, while liquidity pools rest below 1.03630 and 1.03219, making these ideal targets for price. 📰 High-Impact News to Watch ⚠️ HICP Flash Inflation Data (EUR - March 3, 2025) – Any deviation from expectations could drive EUR volatility. ⚠️ ISM Manufacturing PMI (USD - March 3, 2025) – A stronger-than-expected report could strengthen USD and drive EUR/USD lower. ⚠️ Fed's Musalem Speech (March 3, 2025) – A hawkish stance could accelerate EUR/USD downside pressure. 📌 Final Thoughts: Follow the Trend & Manage Risk! EUR/USD remains firmly bearish, with liquidity resting below 1.03630. The confluence of institutional positioning, bearish trend confirmation, and market depth insights support a sell bias. Watch price action at key levels and manage your risk accordingly! 🔥 What’s your bias? Drop your thoughts in the comments! 🔥
Short
by LDForex_
How To Identify Market Reversals Using the MAD IndicatorOverview The Market Anomaly Detector (MAD) Indicator is designed to capture market reversals, trend shifts, and volatility cycles using a combination of its Mainline (blue), Upper Band (green), and Lower Band (red) . This idea explores how the indicator performed in real market conditions, highlighting how price interactions with these bands provided trading signals. How It Works • Mainline (Blue Line - Dynamic Market Structure Guide) • This acts as a key trend reference. When price trades above the Mainline , the structure is bullish ; when below, it’s bearish . • Acts as floating resistance in downtrends and support in uptrends. • Upper Band (Green Line - Dynamic Resistance Zone ) • Expands and contracts based on volatility. • Acts as a dynamic resistance—when price struggles at this level, it often signals an overextended move. • Breakout Above Green Band → Possible bullish expansion, highlighted by Green Background. • Rejection at Green Band → Signals potential price exhaustion and reversal. • Lower Band (Red Line - Dynamic Support Zone) • Functions as a strong support—if price holds, a reversal is likely. • Break Below Red Band → Sell confirmation, as bearish momentum increases highlighted by Red Background. Performance in This Case Study (Based on this chart) 1. Reversal Accuracy & Trend Reactions • Multiple green buy signals were generated as the price bounced from the red lower band, confirming it as a strong support zone. • When price broke below the red band, sell signals followed, aligning with the continuation of a bearish move. • Sell signals near the green upper band played out well, confirming resistance rejection. 2. Trend Shrinking & Expansion Dynamics • The bands contracted during sideways market phases, signaling low volatility and a lack of momentum. • Expansion occurred before sharp price moves, giving early volatility warnings. 3. Resistance & Support Behavior • The Blue Mainline rejected price during a downtrend, acting as dynamic resistance. • Price failed to hold above the Green Upper Band, confirming trend weakness. 4. Strong Market Moves & Confirmation • The break below the red band led to a clear downward trend, reinforcing the sell signal’s validity. • The indicator effectively filtered false breakouts by ensuring a clean move beyond its bands before confirming signals. Key Takeaways ✅ Lower Band (Red Line) = Strong Support → If price holds, reversals occur; if broken, sell-offs follow. ✅ Upper Band (Green Line) = Strong Resistance → Price rejection confirms weakness; breakout signals potential expansion. ✅ Mainline (Blue Line) = Dynamic Trend Guide → Price below = bearish, price above = bullish. ✅ Band Contraction = Low Volatility, Band Expansion = Impending Breakout. ✅ MAD Indicator accurately detected reversals and trend shifts in this case study.
Short
by TradeTechanalysis