How to Measure Pips On TradingviewNice quick and easy method for everyone to be able to measure pips for their risk reward ratio and risk management.
Tutorial
How to find strong Support and Resistance using Bollinger BandsHey traders, Above is my first video ever made on this Platform in which i explain a simple way to find strong support and resistance zones using bollinger bands indicator.
GBPJPY Possible Triple BottomFirst video Tutorial: Like if you prefer these to normal chart pictures ?
How to choose a broker?Hello everyone!
We discuss many different topics in our training articles and today we will touch on a very important topic that everyone avoids.
Forex trading is becoming increasingly popular among individual traders due to its immense potential for generating profits. However, with hundreds of different brokers available in the market, it can be quite a daunting task for traders to choose the right one. Choosing the right forex broker can be a crucial factor in your success as a trader. Here are some tips on how to select a suitable forex broker:
1. Look for the Reputation : It is important to conduct thorough research into the different brokers before settling on one. The internet provides a wealth of information on a wide range of brokers. Do not just go for the first broker that you come across but read through customer reviews and opinions to get an understanding of their services. This can be invaluable in assessing their level of reliability and trustworthiness.
2. Analyse Regulatory Framework : Many brokers have obtained authorization from governing bodies in their countries. Before signing up with any broker, make sure to check out the broker’s regulations. In this way, you can rest assured that your money will be safe and secure.
3. Consider Trading Costs : It is essential to find out the fees and charges associated with a particular broker before selecting one. The cost of trading can differ from one broker to another, so make sure to compare the various services to determine which is most cost-effective for your needs.
4. Look for Trade Execution and Trading Platforms : The quality of the trading platform can be another critical factor in selecting a suitable broker. It is advisable to select one that offers an easy to use platform with fast trade execution speeds. Furthermore, check the availability of different trading tools such as charting and analysis options.
5. Check the Quality of Support : It is also necessary to determine the quality of the customer service provided by the broker. Contact the support team directly to assess how helpful and efficient they are in addressing your queries.
By following the above tips, you can select the right forex broker and benefit from their services. Investing in forex requires thorough research, understanding, and due diligence in order to increase your chances of success. It is recommended to select a broker that offers competitive spreads and fees, a user-friendly platform, and reliable customer support. Doing so will go a long way towards helping you become a successful forex trader.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
HOW DOES THE FED PUSH THE MARKET?Hello everyone!
Today I want to discuss with you a very important and interesting topic.
This topic relates to fundamental analysis and it will be useful to every trader.
Let's go!
The US Dollar and the whole world
As we know, after the Second World War, the dollar became the main reserve currency.
The US economy has grown and become the largest on the planet.
The impact of the US dollar on the world seems to have no boundaries.
All central banks of all countries are forced to hold large amounts of funds in dollars.
Because it is the dollar that makes it possible to make monetary transactions between countries without any problems.
Thanks to the growing US economy, it is profitable for countries to invest in US bonds and in American companies.
Based on the above, the whole world depends on the US Dollar.
The Fed and the interest rate
The Fed has one of the most important instruments of influence on the economy – the interest rate.
The whole world is watching what the Fed decides on the interest rate.
Why?
Everything is simple.
The interest rate is the interest at which loans are issued to banks.
If the interest rate is high, it is expensive to take out a loan and therefore there are fewer loans.
If the interest rate is low, it is inexpensive to take loans, and therefore companies happily take cheap loans.
How does this affect the market?
As you know, companies need funds for growth, one of the sources of funds is credit.
If the interest rate is low, it is easy for companies to take out loans and direct funds for development – the company is growing.
When companies grow, the stock market grows, people invest in stocks, the market grows even more.
On the other hand, if the interest rate is high, it is expensive to take out a loan and companies do not grow because of this, people do not invest in them.
And where to invest in such moments?
In bonds.
The lower the interest rate, the higher the yield on the bonds.
Remember this.
People still need to invest their funds somewhere, and they choose a less dangerous option than stocks, which will help save their funds, and at this moment many choose bonds, the demand for them has lost, the yield is growing.
Interest rate data pushes the market, forces huge amounts of funds to flow from bonds to stocks, big banks take loans or vice versa, all this affects the American economy, on which the whole world depends.
That is why it is so important to monitor the Fed data, understand how they affect the market and the ability to correctly interpret the data can ultimately bring you a lot of profit.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
Chart pattern!!!The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern!
For target measure the distance from the start of the pattern, at the lowest point of the rising trendline to the flat support line. That same distance can be transposed later on, starting from the breakout point and ending at the potential take profit level!
QML pattern Quasimodo | SMART MONEY CONCEPTHello all. Today we will talk about the reversal pattern "Quasimodo" or QML. Schematically it looks like this:
The price moves in the trend, in POI the structure breaks and after that, the price can not update the previous HH and the downward movement continues (consider a schematic example).
In this example, after the breakdown of the structure, the price reverses to soften and remove internal liquidity, after which a reversal occurs. This is done in order to close a losing position at the expense of those who put their stop losses behind the maximum of the substructure.
There are many names for this pattern, such as three tap setup, but I'm more accustomed to calling it quasimodo. If you like, it's a reworked version of the "head and shoulders" pattern, but in this case you're focusing on the price action instead of the picture.
Criteria for QML formation
1. Use it in HTF POI
2. Watch HTF POI
3.Watch the price action.
4. Premium or Discount zone
To use the pattern effectively, you must analyze the chart of all TFs. And use the pattern as an entry model. For example, the daily TF is bearish. The price is in the premium zone, as well as on the H1 TF began an uptrend, a full of bullish trend in the lower TF, after which we see that the substructure (red) has changed from a rising to a descending. And thus, we expect a continuation of the downtrend.
Important
Don't use this pattern in terms of "drawing". They can draw anything on the chart. I recommend to look for POI in POI of higher TFs.
An additional factor could be substructure fluctuations before FWG or OB. You need to see how the price behaves after their update.
Where to put a stop loss
The first option is a stop-loss for a local FVG/OB
The second - above swing high of substrucutre
Third - above the HTF point of interest, if your RR allows it
EXAMPLE
After updating the all-time high, the daily structure was broken. Then price consolidated, it was worth waiting for the manipulation. It was possible to enter from HTF POI - aggressive entry, but it was possible to wait for confirmation on the LTF (as I do).
I'm expect bullish OF on 4H chart to HTF POI (2D ob)
This "entry into position" is shown as an example, so that you can form an understanding of how to act in this or that situation. In conclusion, the more factors you take into account in your analysis, the higher the probability of working out of the pattern. Also, it's up to you to choose what kind of stop loss you will use. There is no right and wrong, everything depends on your strategy and money management.
The position was opened after the second liquidity raid in the premium market. I hope it was helpful to you. Thank you for your attention
DOUBLE BOTTOMHello everyone!
It's time to repeat the most popular patterns in trading.
One of these patterns is a DOUBLE BOTTOM.
Forming
There are several factors that you should pay attention to.
First, a new minimum appears.
This breakthrough is accompanied by increased volumes.
Such volumes are fixed by the indicator at this point, because there were a lot of stop orders here and the market absorbed them.
After this breakdown, the price begins a correction.
Nowhere without correction.
The correction is usually made to the breakout level, which used to be support, and now is resistance.
Having reached the level, the price turns down again.
And here is an important point.
If this breakdown is strong, then the price should go to update the lows further.
In theory, you can open short positions in the rebound area in the hope of continuing the trend.
Then we see the formation of the second bottom.
One of the main factors that the price will not fall further is the declining volumes.
This is a divergence.
From this we understand that forces are shifting to the other side and the trend may change.
In addition, we see that the price could not gain a foothold below the first bottom, which tells us about the weakness of sellers.
results
A double bottom is often found on the chart and serves as a signal for closing short positions and possibly opening long positions.
With a proper understanding of this pattern, you can get a lot of profit from trading.
The main thing is not to forget to monitor volumes, divergence and candlesticks that indicate the strength or weakness of the trend.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
Learn a Triple Top Pattern | Classic Reversal Pattern You Must
🟢What is the Triple Top Pattern?
A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend.
This pattern is formed with three peaks above a support level/neckline.
The first peak is formed after a strong uptrend and then retrace back to the neckline.
The formation of this pattern is completed when the prices move back to the neckline after forming the third peak.
When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed.
🟢Trading the Triple Top
There are some rules when trading the Triple Top chart pattern.
✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend.
✔️Traders should spot if three rounding tops are forming.
✔️Traders should only enter the short position when the price breaks out from the support level or the neckline.
🟢Stop Loss
In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern.
🟢Price Target
The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below.
Like, comment and subscribe to boost your trading!
Hey traders, let me know what subject do you want to dive in in the next post?
THE WAY THE TREND CHANGESHello everyone!
We continue our training.
Today we will try to figure out how the trend changes its direction.
I want to say right away that this is a schematic designation, having understood which, you will be able to identify important zones and structures of trend change.
When you understand the principles, then you can make money on it.
Accumulation
The first area to pay attention to is the accumulation zone.
These zones collect large volumes of limit orders on both sides of them, which is liquidity.
This liquidity will be eaten up by the market at some point.
Breakdown
At some point, the price makes a breakdown in one of the sides, thereby eating up liquidity.
This breakdown may be a normal continuation of the trend, and in order not to confuse it with a reversal, you need to wait for the next phase.
Update
After the breakdown, the price turns sharply and updates the minimum of the accumulation zone.
What happened here?
If the trend had the strength to continue its movement, the price would not have formed a new low
After updating the accumulation zone, the price indicated to us a possible trend change.
Correction
Then we can observe a return to the accumulation zone, but this movement turns out to be weak, and we do not see an update of the maximum of the accumulation zone.
At this point, it is possible to consider opening a short position.
But if you don't have time to open a position, don't worry, the price will give you another chance.
After updating the last minimum, the price is again adjusted to the accumulation zone, but this peak is lower than the previous one.
This reversal is a good signal to enter a position.
This is how the price behaves when the upward movement is reversed.
To reverse a downtrend, the same rules work only in the opposite direction.
Conclusions
This scheme works perfectly.
Using it, you will be able to find excellent entry points and close positions that were opened against the emerging trend.
History repeats itself, and you can see it on the graph.
Learn how to work with these schemes in order to be able to enter the position in time in the future.
Learn, practice and earn.
How To Use TradingView - Part 2 ⚙️Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.
In this video, we will learn How to use Tradingview - Part 2
Today we will go over:
- Indicators' Template
- Alerts
- Chart Layout
- Watchlist
- Minds
Sit back, grab a cup of coffee, and enjoy the video :D
Cheers!
All Strategies Are Good; If Managed Properly!
~Rich
SPX. The Certainty Trap ‘Never’ &‘always’ have no place in MKTS!Just passing this cool info written by a guy called Ben Carlson.
- Ben discusses the differences between probability and certainty:
"There are two arguments I see on a regular basis that show up as a result of data overload:
…because that’s never happened before.
…because that’s what’s always happened before.
-The problem with this line of thinking is that it can lead investors to fall into what I like to call the certainty trap. It’s this all-or-nothing line of thinking that causes so many to constantly attach extremes to every single market move or data point they see. The beginning of the recovery or the end of the world is always right around the corner. The assumption is that we’re always either at a top or a bottom when most of the time the markets are probably somewhere in the middle."
-The reason the investing certainty trap is so easy to fall for is because historical data can feel so safe and reassuring. Look here, my data says that this has never (always) happened in the past. Surely this trend will continue. I’ll just sit here and wait for my profits to start rolling in.
-‘Never’ and ‘always’ have no place in the markets because no one really knows what’s going to happen next. ‘Most of the time’ is a much more reasonable goal, because nothing works forever and always in the markets. If it did everyone would simply invest that way. I think a much more levelheaded approach is to follow the Jason Zweig 10 word investment philosophy:
-Anything is possible, and the unexpected is inevitable. Proceed accordingly.
MARKET CONDITIONS Hello everyone!
We continue the series of training articles.
Today I want to touch on the topic of MARKET CONDITIONS .
Go.
What is the market like?
As you know, the market does not move only up or only down.
The price always makes fluctuations of a wave nature.
What does it mean?
BEARISH TREND
This trend is characterized by the fact that the price updates the previous lows, but cannot update the previous highs.
If you look at the monthly chart, such a movement may consist only of falling candles.
In fact, if you switch to a smaller timeframe, you can see corrective movements.
And this can be observed on all movements.
In a bearish trend, it is best to open short positions.
A good moment to open a position can be the end of the correction, which confirms that buyers are not able to update the maximum, which means that the downtrend is still strong.
RANGE
This period of the market is the most boring, because the price is not particularly moving anywhere.
In fact, there is an accumulation of large positions.
But boring does not mean that it is impossible to make money on it.
The simplest trading tactic under such conditions is to sell from the resistance level and buy from the support level.
Do not forget to put a stop loss, because sooner or later there will be a breakdown.
BULLISH TREND
This trend is characterized by an increase in price, an update of the highs and the inability to update the lows.
The fact that sellers cannot push the price below the previous minimums tells us that the strength is on the buyers' side.
It is best to open long positions and press the updates of the highs.
STRUCTURE
This structure or model: BEARISH TREND - RANGE - BULLISH TREND, will occur very often.
This is exactly how the trend is changing.
At first, the price is controlled by one star, it can be bears and then there will be a downtrend, it can be bulls and then there will be an uptrend.
At some point, the dominant force loses power over the price, and the opposite one gains momentum, at such moments the range begins.
There is a struggle going on here and whoever wins will rule the price.
Sometimes it also happens that after the range, the previous trend continues, which means that the opposing force did not have enough power to change the trend, be prepared for this.
CONCLUSIONS
Do not think that the trend will continue forever.
Do not believe that you know the future and the price will go exactly where you predicted.
Be objective and study the market.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
THE MOST TRADED CURRENCIES IN THE WORLDHello everyone!
Today we will touch upon an interesting and important topic of the forex market.
There are enough opportunities in the world to trade currencies of all countries, but most of the trade volume is occupied by the main ones.
Let's figure out which currencies are traded by traders more than others.
US Dollar
The most important currency on the planet is the US Dollar.
There is nowhere without it: most of the operations on the market take place through the American dollar.
In addition, the United States is currently the largest economy on the planet. A huge part of world trade is concentrated in the USA or occurs through the USA.
The dollar itself is the reserve currency in the world, central and commercial banks hold large reserves of dollars in their accounts to make international transactions.
Yes, Gold, Copper, Oil and much more are valued in dollars.
Wherever you look, there is a dollar everywhere and everyone uses it.
Because of these factors, the dollar is No. 1 in terms of volumes with an average daily volume of 2.9 trillion US dollars.
Euro
The second largest trading currency in the world.
The main reason is the scale of the economies of the countries that are part of the eurozone.
Currently, the eurozone unites 20 countries.
Countries such as Germany, France, Italy have quite large economies, in total, together with other European countries, the euro accounts for 20% of world reserves.
The average daily volume is almost 1.1 trillion US dollars
Japanese Yen
Over the past decades, the Asian region has developed strongly.
Countries improved and increased production, which eventually led to the fact that Asian countries are now of great importance in the global economy.
Japan's manufacturing sector has a strong influence on the world and on the yen.
Therefore, when export figures increase, the yen rises.
The Japanese yen currently ranks third in terms of trading volumes in the world, with an average daily volume of 554 billion US dollars.
Since China is a key competitor of Japan in the industrial goods market, the weakening of the Chinese yuan has a detrimental effect on the yen, because then the export of Chinese goods will become more attractive.
In addition to China, the yen is also affected by the price of oil, since Japan is a major importer of this raw material.
Pound Sterling
The official currency of the United Kingdom and its Territories is the Pound sterling.
The economy of the Kingdom is of great importance for the entire world economy, since England is one of the main financial centers of the world.
In terms of volume, the pound sterling ranks fourth in the world with an average daily volume of almost 422 billion US dollars.
The share of this currency accounts for about 4.5% of world reserves.
The main indicator of the strength or weakness of the currency is the UK.
The monetary policy of the Bank of England, the GDP of England has a strong influence on the currency.
The exit of England from the European Union also had a strong impact.
It is the Pound Sterling that closes the four largest volumes of the planet.
Then there are such currencies as the Australian dollar, Canadian Dollar, Swiss Franc, Chinese Yuan.
All of them in total, of course, lose to the big four listed above, but these currencies also have sufficient volume, which makes it possible to trade pairs with these currencies quite profitably.
Volatility
Given the volume of a particular currency in the global economy, we can understand which currency pair will have greater volatility and which will not.
If you are a trader who wants to make a profit quickly, then the EURUSD pair is suitable for you – the two largest economies in the world.
Next comes – USDJPY. The economies of these countries are in first and third place, respectively, which means greater volatility.
If you need something in between, then you should pay attention to such currencies as – AUDUSD, USDCAD, NZDUSD. These currencies are linked to the first economy of the world, which will give sufficient volatility, while the second currency in these pairs does not have a huge volume, so price movements will not be so dangerous for a conservative trader.
You can also pay attention to pairs where countries with a smaller global volume are involved. Movement in these pairs will be slow and sometimes even boring, but definitely very safe.
Conclusion
Knowing which currency is strong on the world stage and which is not is very important for choosing a pair for trading.
Knowing what affects a particular currency helps to understand the future price movement.
Professional traders understand these issues and choose currency pairs suitable for their style.
Beginners trade everything in a row.
Do not be lazy to study and then the profit will come to you.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
BUYERS vs. SELLERSHello everyone!
Who are the stronger sellers or buyers right now?
The one who finds out the answer will be able to earn a lot.
Over time, one side weakens, the other gains strength.
It is not easy to catch this moment, but there are several methods for determining a possible change in the dominant force in the market.
Japanese candles, namely their bodies, can help us with this.
The body shows how strong or weak one or the other side is.
The body shows whether buyers are losing strength and whether sellers are gaining strength.
Are buyers or sellers strong?
By looking at a particular candle and its body, we can understand what was happening in the market in a given period of time.
If we see a full-bodied green candle that has no shadows, then we can say with confidence that buyers are winning.
The point is that buyers were able to push the price up after the opening and until the closing, which sellers could not resist.
On the other hand, if we see a full-bodied candle of red color, we can say that the sellers won.
Without much resistance, sellers pushed the price down from the beginning to the end and were able to close at the very bottom of the candle.
Full–bodied candles speak of enormous strength, they can appear confirming the trend or starting it, in any case - this is a strong sign.
Still strong, but…
If you see a green candle with a long body and small, short shadows on the chart, then you can say that buyers dominate the market.
But what are these shadows?
These shadows remind us that sellers, although losing heavily, still did not give up.
It's the same with candles that have long red bodies and short shadows.
Sellers are strong, but buyers are still here, as the shadows remind us.
Seeing such shadows, you should not be afraid and open positions in the opposite direction, no.
It's just a reminder.
The fight is getting harder.
A candle with a small green body, which is located at the top, shows us that buyers have taken over the market, but the victory turned out to be very difficult.
The long shadow under the body indicates to us the rage of the sellers, who dragged the price down for a very long time, but still lost in the end.
Maybe it was the last impulse of buyers?
This fight was almost on an equal footing, but the victory remained with the buyers.
In such situations, you can ask the question - Will there be a U-turn?
Red body on top, with a long shadow.
The sellers won here, but the buyers fought with dignity.
Depending on the context, this figure can serve as a signal of an imminent reversal.
After all, sellers were able to push the price very deep, but buyers did not give them a foothold there.
The last push?
The short body is green, and above it is a long shadow.
The victory remained with the buyers, but was it easy? No.
Perhaps it was the last rush of buyers, after which there is no strength to fight anymore.
Maybe the price will not turn right away, because the buyers have won and they still have strength, but their strength is clearly running out.
The same is the case with candles, whose bodies are red, indicating the victory of sellers, but long shadows over the body indicate the strength of buyers.
The forces of buyers were able to push the price, but not to fix it.
This signal is even more bearish, because the price closed below the opening.
Conclusion
Each candle is important, but the context is more important.
Candles help to get the first signals if you are able to understand them correctly.
The shadows of candles are the story of a struggle that usually escapes the eye, but at the same time carries a lot of information.
Be careful and don't stop learning.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
GUIDE TO JAPANESE CANDLESHello everyone!
Today we will discuss JAPANESE CANDLES!
Let's try to understand what they mean and how to use this information in your trading.
LET'S GO!
Bullish and Bearish PIN BAR
A bullish pin bar is a candle with a long shadow, the body of which is located at the top of the candle.
Such a candle was formed under the pressure of sellers who were able to push the price down, after which buyers turned on, who pushed the price above the opening and were able to gain a foothold there.
This strength of buyers signals to us that sellers are losing dominance in the market and a trend reversal is possible soon.
A bearish pin bar has a mirror structure relative to a bullish pin bar.
Buyers can't keep the price high, and sellers take up the trend.
At these points, we can expect the early completion of the previous impulse and a possible trend change.
Bullish and bearish harami
Bullish harami consists of two candles: the first is a long full-bodied candle, the second is small with a small body.
After a strong downward impulse (the first candle), a sharp reversal begins (the second candle).
At the same time, the second candle often opens with a gep.
The momentum of the first candle is the last spurt of the market, after which buyers take over the market.
The gap in the opening of the second candle and the closing of the first confirms the strength of buyers.
Bear harami has a similar structure, but a mirror movement.
The last impulse of buyers, was replaced by the gep of sellers.
This sign indicates a possible reversal.
Bottom and top tweezers
These Japanese candles are characterized by two long full-bodied candles.
After the first strong impulse, there is a sharp reversal in the opposite direction.
This reversal has a huge force, as it is able not only to turn the price against the main trend, but will immediately gain a foothold low.
This figure is called tweezers, as the price pierces the level and abruptly returns back.
A very strong signal for a reversal.
Conclusion
These patterns are very popular and useful.
The ability to use them correctly in trading can bring significant profits.
These patterns help to determine the price reversal, which contributes to a better entry into the position.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
💨 Elliott Wave Pattern: Single Zigzag 🌊
❗❗ 𝙍𝙪𝙡𝙚𝙨
● A zigzag always subdivides into three waves.
● Wave Ⓐ always subdivides into an impulse or leading diagonal.
● Wave Ⓒ always subdivides into an impulse or ending diagonal.
● Wave Ⓑ always subdivides into a zigzag, flat, triangle or combination thereof.
● Wave Ⓑ never moves beyond the start of wave Ⓐ .
● Wave Ⓑ always ends within the price territory of wave Ⓐ .
● Wave Ⓒ almost always ends beyond the end of wave Ⓐ . (failure to comply with this requirement is called «truncation»)*
*guideline, but should be followed as a rule
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Wave Ⓒ should not fail to reach the end of wave Ⓐ by more than 10% of the length of wave Ⓐ . (Q&A EWI)
● In a zigzag, the length of wave Ⓒ is usually equal to that of wave Ⓐ , although it is not uncommonly 1.618 or .618 times the length of wave Ⓐ (rarely 2.618).
● Wave Ⓑ typically retraces 38 to 79 percent of wave Ⓐ .
● If wave Ⓑ is a contracting triangle, it will typically retrace 38 to 50 percent of wave Ⓐ .
● If wave Ⓑ is a running contracting triangle, it will typically retrace between 10 and 40 percent of wave Ⓐ .
● If wave Ⓑ is a zigzag, it will typically retrace 50 to 79 percent of wave Ⓐ .
● In a zigzag, if wave Ⓐ is a leading diagonal, then we would not expect to see an ending diagonal for wave Ⓒ .
● A line connecting the ends of waves Ⓐ and Ⓒ is often parallel to a line connecting the end of wave Ⓑ and the start of wave Ⓐ . (Forecasting guideline: Wave Ⓒ often ends upon reaching a line drawn from the end of wave Ⓐ that is parallel to a line connecting the start of wave Ⓐ and the end of wave Ⓑ .)
● Waves Ⓐ and Ⓒ within the zigzag often appear in the form of impulses, but more often alternate according to the type of motive waves: if wave Ⓐ is an impulse, expect wave Ⓒ in the form of a diagonal, and vice versa. It is much less common to find waves Ⓐ and Ⓒ in the form of diagonals, but in this case they will alternate in form: contracting / expanding, and vice versa. (TWEWA)
● If a similar amplitude and duration of waves Ⓐ and Ⓒ within a single zigzag is expected, the line passing through the top of Ⓐ , which is parallel to the line connecting the beginning of wave Ⓐ and the end of wave Ⓑ , often turns out to be the level of completion of wave Ⓒ . In case of a extended wave Ⓐ within a single zigzag, expect the wave Ⓒ to reach the middle line of the channel, and in case of signals in favor of a extended wave Ⓒ , it is worth resorting to the technique of doubling the channel to determine potential support or resistance. (TWEWA)
__________________________
🔗References:
Elliott Wave Principal 2005
Trade Waves / Elliott Waves Analysis (TWEWA)
📚 Elliott Wave Guide & Ellott Wave Archive ⬇️⬇️
ETC/USDT Main trend. Triangle (pennant). Psychology. Pamp.The coin is the "parent" of the expensive ethereum.
Coin in the coenmarket : Ethereum Classic
Major trend. Which has formed a large upward channel. Timeframe 1 week. Huge pump (fractal repeat of 2017 May). Pullback. Which formed a triangle (potential upward pennant canvas) in case of a breakout of resistance and the price going up to the upper limits of the channel. Zones of levels to work showed on the chart.
Hamsters and "experts" recommend to buy now and even before the decision of the local trading situation on the triangle. After all, the price is now about +1500% of the average accumulation price, and from the bottom of the channel more than +2000%. This is the best time to buy "Hold" and it is very important, if the triangle will be broken through and the price will grow to the resistance of the outer channel, then in no case do not sell, otherwise the main postulate of hamsters and expert bloggers will be broken:
[BUY IN THE MAXIMUM, AND SELL MUST ON THE LOW IN THE POCKET!!! .
There are two potential position reset zones. The price is in just one of them right now. But that does not mean that there will not be waves. For example, on DOGE the position is reset with a partial payoff (pours when holding zones), but the price is growing and significantly. But this is relevant for traders (real, not imaginary), people who are good at risk management and know how to work on the situation, and not the situation leads their emotional decisions and unpreparedness if the price goes against their expectations.
My previous work on this coin.
Posted when the price was in accumulation before this pumping. Working in and out of a horizontal channel. Not a public trading idea. Published 09 26 2020.
ETC/USD Local work. Potential entry points
Press play on the chart, press the left button and pull the chart up, you will see the exact level of the first reset of the hamsters position 43,221.
The price at the pumpe is pushed much higher (no sellers, all liquidity and sales are absorbed at the lower values, usually near the accumulation resistance zone up to +100% of it), so weak market participants are not afraid to buy "cheap" when they see the previous price. The more expensive the price, the more willingly the weak (stupid, lazy) market participants buy the asset for the long term.
Most people are afraid to buy cheap and without a team. Everything cheap to them is scam, but if scam goes up in price, it is whitened in the eyes of stupid market participants. It becomes no longer a scam. There is already a cult of believers in the next crypto phantom of promise. They foam at the mouth to defend their stupidity. Admitting their mistakes confirms the former stupidity of man. Not everyone is capable of this.
A foolish person does not see what was in the past, but only what he has fantasized about. Consequently, he only sees the potential very expensive price, but doesn't see what the price was in the accumulation just 1-2 months ago before pumping. Buying +1500%-2000% is common for the likes of him. It's useless to prove it.
The programmed man of the crowd thinks only by its opinion, single conscious thoughts with a difference from the main mass will be crushed in a moment by "experience and expert opinion of the majority".
The man does not trust himself, he trusts the majority. The crowd always loses. The rare win is nothing more than a planned tactical move to direct the game background of the characters to shape the reality of the players in their game.
Play with dignity, think for yourself. Don't be background characters and "stock players" in someone else's game. Even your erroneous self-made decision is true, at least at the time it is made for you, even if it ultimately turns out to be not quite right. Of your many truths right and wrong is not an easy path to truth.
Publication 10 01 2021 Non-Public Work.
ETC/USD Mid-Term Work
+3100% from accumulation lows/maxims. Over +1000% profit in areas of acceptable liquidity.
Local work. This triangle on a large scale .
ETC/USDT Secondary Trend Pivot Area Triangle 327
In order to make money in the market, you need someone to give you money all the time. If no one is giving, no one is making money! The cryptocurrency market is super profitable, so giving money away is a super fantastic percentage.
I've attached my previous work on this trading pair over the past 3 years under the idea.
Pitchforks Follow Normal DistributionPitchforks are a very popular TA tool and easy to use. However the fundamentals are often glossed over. For example, many beginners and vets don't know that it is based on Normal Distribution which has 3 Sigma Limits . This is commonly referred to as a "Bell Curve" . It's a natural rule of thumb used in Statistics and Probability Theory, for all manner of sciences. The 3 Sigma Limits are 3 Standard Deviations from the median line, which is located in the center of the mean distribution of data. For us, this data is price action.
The 3 Standard Deviation on a fork are:
1st STD DEV from -0.5 to +0.5
2nd STD DEV from -1.0 to -0.5 & +0.5 to +1.0
3rd STD DEV from -1.5 to -1.0 & +1.0 to +1.5
The 3 Sigma Limits Rule is also known as the 68-95-99.7 Rule.
What this means is, while in a trend, natural price action will:
1) Remain within the 1st STD DEV 68% of the time.
2) Remain within the 1st & 2nd STD DEVs 95% of the time.
3) Remain within all 3 STD DEVs 99.7% of the time.
What about the remaining .3%?
Usually breaking out of the 3rd standard indicates the trend is done, however .3% of the price action can fall outside of the 3 STD DEVs and still continue the trend!
This is a rule of thumb for natural law, but stock market price action can be manipulated! If the price action doesn't fit the Normal Distribution model, then it is likely unnatural. Also, since our data never stops coming, the mean can move over time, while staying in the same general trend; making the previous median lines invalid. If a unnatural amount of your price action is falling outside of the 1st STD DEV, then your original median line is likely invalid.
A new pivot should show itself to correct the median.
That could be what's happening here on the chart, if the bear trend continues back into the fork, with so much price action outside of the 3 STD DEVs. You can draw a new pitchfork on the pivot from June to August which would include more price action. I will include that below.
Wyckoff Madness: A guide for the average JoeWyckoff Madness: A guide for the average Joe
Table of Contents
I. Introduction
Definition of the Wyckoff Pattern
Brief background on its creator, Richard D. Wyckoff
II. Overview of the Wyckoff Pattern
Description of the four stages: accumulation, markup, distribution, and markdown
Explanation of how these stages repeat in a cyclical manner
III. The Accumulation Stage
Characteristics of this stage (low volume, narrow price range)
Role of professional traders (smart money) in buying up securities
Stages of Accumulation
Indicators
The Golden Rules
IV. The Markup Stage
Characteristics of this stage (increased volume, widening price range)
Involvement of the public in pushing prices higher
V. The Distribution Stage
Characteristics of this stage (decreased volume, narrowing price range)
Professional traders selling positions to the public at higher prices
VI. The Markdown Stage
Characteristics of this stage (further decreased volume, widening price range)
Public panic selling causing prices to drop
VII. Key Principles of the Wyckoff Pattern
Concept of supply and demand
Use of chart patterns to confirm trade signals
VIII. Benefits and Applications of the Wyckoff Pattern
Particularly useful for long-term investors
Can be applied to different time frames (daily, weekly, monthly charts)
XI. Limitations and Risks
X. Mastering the Wyckoff Pattern: A Five-Step Approach to Stock Selection and Trade Entry"
I. "Step One: Market Analysis for Dummies"
II. Overview of the Wyckoff Method's Five Steps
Determine market trend and direction using bar and Point and Figure charts
Decide whether to enter market and take long or short positions
III. "Stocks That Aren't Total Duds"
Choose stocks that are stronger in uptrends and weaker in downtrends
Use bar charts to compare individual stocks to relevant market index
IV. "Setting Goals for Your Stocks"
Identify price targets using Point and Figure projections for long and short trades
Choose stocks under accumulation or re-accumulation with sufficient "cause" to meet objectives
V. "Is Your Stock Ready to Move Its Ass?"
Use nine tests to determine readiness to buy or sell
Use bar and Point and Figure charts to assess individual stocks
VI. "Let the Market Carry You to Victory"
Three-quarters or more of individual stocks move with the overall market
Use Wyckoff principles to anticipate market turns and put stop-loss in place
Trail stop-loss until closing out position.
I. Introduction
Wyckoff Pattern in trading - The Wyckoff Pattern is a trading strategy that was developed by Richard D. Wyckoff, a Wall Street trader and analyst who lived in the late 19th and early 20th centuries. The Wyckoff Pattern is based on the premise that market trends, whether bullish or bearish, follow a similar pattern of development. Traders may use the Wyckoff Pattern to identify market trends, determine the best times to enter or exit positions, and set price targets for their trades. It can also be used to identify market manipulation and understand the behavior of larger market participants, such as institutional investors.
The Wyckoff Pattern can be applied to various financial markets, including stocks, cryptocurrencies, and commodities. It is a widely used and well-respected trading strategy that can be a valuable tool for traders looking to improve their trading performance.. This pattern includes four macro stages: accumulation, markup, distribution, and markdown.
II. Overview of the Wyckoff Pattern
The accumulation stage is characterized by low volume and narrow price ranges. During this stage, professional traders, also known as "smart money," are quietly buying up a security in large quantities. The markup stage is marked by an increase in volume and a widening of the price range. This is the stage where the public becomes aware of the security and starts to buy it, pushing the price up further.
The distribution stage is characterized by a decrease in volume(after a heavy increase) and a narrowing of the price range. During this stage, the professional traders start to sell their positions to the public at increasingly higher prices. The markdown stage is marked by a further decrease in volume and a widening of the price range as the security's price starts to fall. This is the stage where the public starts to panic and sell their positions, causing the price to drop further.
The Wyckoff Pattern is based on the idea that these four stages are repeated in a cyclical manner, and that traders can use this knowledge to make informed decisions about when to buy and sell a security. This strategy is particularly useful for long-term investors, as it allows them to take advantage of the natural ebb and flow of the market.
One of the key principles of the Wyckoff Pattern is the concept of supply and demand. The accumulation and markup stages represent a surplus of demand, while the distribution and markdown stages represent a surplus of supply. By understanding these trends and analyzing the volume and price action of a security, traders can get a sense of where the market is in its cycle and make informed decisions about their trades.
Another important aspect of the Wyckoff Pattern is the use of chart patterns to confirm and validate trade signals. The most common chart patterns used in conjunction with the Wyckoff Pattern are the flag and the wedge. These patterns help traders identify key support and resistance levels and confirm whether a trade signal is valid or not.
In this article, we will thoroughly discuss the Wyckoff Method. By understanding the principles of supply and demand as they apply to long-term investing, traders can use the Wyckoff Method to make informed decisions about when to buy and sell securities.
III. The Accumulation Stage
The accumulation stage is an important part of the Wyckoff Pattern, a trading strategy developed by Wall Street trader and analyst Richard D. Wyckoff. The accumulation stage is characterized by low volume and narrow price ranges, and it is during this stage that professional traders, also known as "smart money," quietly buy up a security in large quantities.
The accumulation stage is typically marked by a lack of interest or attention from the general public, as prices remain relatively stable and volume remains low. This is the stage where professional traders, who are often better informed and have access to more resources, take the opportunity to accumulate positions in a security.
The accumulation stage is an important indicator of the potential future trend of a security, as it signals that professional traders believe the security is undervalued and has the potential to rise in price. By analyzing the volume and price action of a security during the accumulation stage, traders can get a sense of the strength of the "smart money" buyers and make informed decisions about their trades.
Disclaimer: It is important to note that the accumulation stage is just one part of the Wyckoff Pattern, and traders should always consider the overall market trend and use other indicators and studies in conjunction with the Wyckoff Pattern to make informed trades. However, understanding the characteristics and importance of the accumulation stage can provide valuable insight for traders looking to make long-term investments.
To recognize accumulation on a bar chart, traders should look for the following characteristics:
Low volume: During the accumulation stage, volume should be relatively low as professional traders quietly accumulate positions in a security.
Narrow price range: The price range, or the difference between the highest and lowest prices during a given time period, should be relatively narrow during the accumulation stage.
Stable or rising prices: Prices should remain stable or gradually rise during the accumulation stage, as professional traders believe the security is undervalued and has potential for future price appreciation.
Bullish chart patterns: Traders may also look for bullish chart patterns, such as uptrends or higher highs and higher lows, as these can indicate that professional traders are accumulating positions and expect the security to rise in price.
When it comes to identifying accumulation in a stock, forex or other asset, it is important to consider both the long-term trend and short-term price action. One way to determine if a security is being accumulated is to look for signs of a long-term uptrend, such as higher highs and higher lows on the price chart. However, it is important to note that this is not always a clear-cut indication, as there can be periods of consolidation or correction within an uptrend.
In addition to considering the long-term trend, traders can also look for specific candlestick patterns or technical indicators that may indicate accumulation. For example, a security with a rising on-balance volume (OBV) or accumulation/distribution (A/D) line may be a sign that professional traders are accumulating positions in the security.
It is worth noting that accumulation is not always a straightforward process, and there may be periods of confusion or conflicting signals. To make the most informed decisions, traders should consider a variety of indicators and factors, such as market trends, volume, and price action, and always use sound risk management practices.
Review:
The accumulation phase is characterized by a sideways and range-bound period that follows a prolonged downtrend. During this phase, larger players, also known as "smart money," try to build positions in a security. This is typically done quietly, with low volume and narrow price ranges.
Stages of Accumulation:
There are six distinct parts to the Wyckoff accumulation phase, each with an important function. The first part is the "Preliminary Support," which is the initial phase of the accumulation process. This is when smart money begins buying up the security, often at lower prices.
The second part is the "Selling Climax," which is characterized by a sharp price decline and high volume. This is a sign that the larger players are aggressively selling their positions, likely in an effort to shake out weaker hands.
Following the Selling Climax is the "Automatic Rally," which is a short-term price increase that occurs as the smart money starts buying back their positions at lower prices. This rally is typically marked by increased volume and a narrowing of the price range.
The fourth part of the accumulation phase is the "Secondary Test," which is a retest of the previous low prices. This is a key moment in the accumulation process, as it allows the smart money to gauge the strength of the security and make any necessary adjustments to their positions.
The fifth part of the accumulation phase is the "Spring," which is a strong price move higher that is often accompanied by high volume. This is a sign that the smart money is aggressively buying the security, likely in anticipation of a larger price move higher.
The final part of the accumulation phase is the "Last Point of Support," also known as the "Back-up" and "Sign of Strength." This is the final phase of the accumulation process, in which the smart money continues to buy up the security, pushing the price higher and establishing a new uptrend.
The "Preliminary Support" (PS)
Occurs after a prolonged down move
Signs of high volume and spreads widening
Indication that the selling may be coming to an end as buyers begin to show up
The "Selling Climax" (SC)
PS fails, and price begins to violently sell off
Panic selling phase
Prices may jump by more than their norm and spreads may widen to extremes
Price often closes far from the low and candlestick chart displays a large wick
The automatic rally (AR)
Late sellers punished as buyers cause price to reverse with same intensity as SC but in opposite direction
Result of short sellers covering positions
High of this point often defines upper range extreme for consolidation that follows
The secondary test (ST)
Price revisits lows of structure but in a controlled manner
Volume should not increase from sellers
Multiple secondary tests common
The spring
Hard test of low to mislead participants into believing trend is resuming downwards
Equivalent to a "swing failure pattern" or shakeout
May not always be required
Price should quickly reclaim prior structural level after spring
Last point of support, back up, and sign of strength (LPS, BU, SOS)
Clear shifts in price action from prior activity into beginning of range
Price begins to reclaim microstructural pivot points established earlier
Sign of strength may occur immediately after spring
Rapid, one-sided move that signifies buyers in total control
Volume at end of range should be high and result in significant ground covered
Marks the beginning of the mark up phase, where larger players take supply from smaller players.
Volume
Use Indicators
There are several indicators used on the TradingView platform that can be used to help assist in identifying accumulation. Some examples include:
On-Balance Volume (OBV): The OBV indicator uses volume data to measure buying and selling pressure. A rising OBV line can indicate accumulation, as it suggests that there is more buying than selling and that professional traders are accumulating positions in the security.
Chaikin Money Flow (CMF): The CMF indicator uses both price and volume data to measure buying and selling pressure. A positive CMF value can indicate accumulation, as it suggests that there is more buying than selling and that professional traders are accumulating positions in the security.
Accumulation/Distribution (A/D): The A/D indicator uses price and volume data to measure the flow of money into and out of a security. A rising A/D line can indicate accumulation, as it suggests that there is more buying than selling and that professional traders are accumulating positions in the security.
The Golden Rules
The market and individual securities never behave in exactly the same way twice, and the significance of price movements can only be understood in the context of past price behavior.
Context is everything in the financial markets, and the best way to evaluate current price action is to compare it to what has happened in the past.
Analyzing a single day's price action in isolation can lead to incorrect conclusions.
In addition to these rules, Wyckoff also identified three types of trends - up, down, and flat - and three time frames - short-term, intermediate-term, and long-term - and observed that trends can vary significantly depending on the time frame being analyzed. These rules can be used to help traders identify and analyze trends and make informed trading decisions.
IV. The Markup Stage
The markup stage is a crucial part of the Wyckoff Pattern, a trading strategy developed by Wall Street trader and analyst Richard D. Wyckoff. The markup stage is characterized by an increase in volume and a widening of the price range, and it is during this stage that the public becomes aware of a security and starts to buy it, pushing the price up further.
The markup stage typically follows the accumulation stage, during which professional traders, also known as "smart money," quietly accumulate positions in a security. As the professional traders start to build their positions and the security's price begins to rise, the public becomes aware of the security and starts to buy it as well. This increased buying activity drives the price up further and widens the price range.
One way to identify the markup stage on a price chart is to look for an increase in volume and a widening of the price range. This can be a sign that the public is becoming more interested in the security and is starting to buy it, pushing the price up further. The markup phase can be further measured by the slope of the new uptrend, with pullbacks to new support offering potential buying opportunities known as throwbacks, similar to modern buy-the-dip patterns. Re-accumulation phases may also interrupt the markup phase with small consolidation patterns, while steeper pullbacks known as corrections can also occur.
It is important to note that the markup stage is just one part of the Wyckoff Pattern, and traders should always consider the overall market trend and use other indicators and studies
V. The Distribution Stage
The distribution stage is characterized by a decrease in volume and a narrowing of the price range, and it is during this stage that professional traders start to sell their positions to the public at increasingly higher prices.
The distribution stage typically follows the markup stage, during which the public becomes aware of a security and starts buying it, pushing the price up further. As the price continues to rise, professional traders begin to sell their positions to the public at increasingly higher prices. This selling activity leads to a decrease in volume and a narrowing of the price range.
One way to identify the distribution stage on a price chart is to look for a decrease in volume and a narrowing of the price range. This can be a sign that professional traders are selling their positions to the public and that the security's price may be reaching a peak.
There are five parts to the Wyckoff distribution phase: the "Preliminary Supply," the "Buying Climax," the automatic reaction, the secondary test, and the spring.
The "Preliminary Supply" is the first sign that professional traders are starting to sell their positions. This is typically marked by an increase in volume and a widening of the price range.
The "Buying Climax" is a sign that the public is becoming aware of the security and is starting to buy it. This is typically marked by a further increase in volume and a further widening of the price range.
The automatic reaction is a short-term pullback in the security's price as professional traders continue to sell their positions. This is typically marked by a decrease in volume and a narrowing of the price range.
The secondary test is a retest of the low of the automatic reaction. This is typically marked by a further decrease in volume and a further narrowing of the price range.
The spring is a sharp, low-volume move up in the security's price as professional traders start to accumulate their positions again. This is typically marked by an increase in volume and a widening of the price range.
The Wyckoff distribution phase also includes three important terms: SOW, LPSY, and UTAD. SOW stands for "supply over whelming demand," LPSY stands for "last point of supply," and UTAD stands for "upthrust after distribution." These terms refer to specific points in the distribution phase where professional traders are particularly active in selling their positions.
The Distribution cycle is characterized by dominant traders selling off their positions when the price is high
The Distribution cycle has five phases: Preliminary Supply (PSY), Buying Climax (BC), Automatic Reaction (AR), Secondary Test (ST), and Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD)
The Preliminary Supply phase occurs after a significant price rise and is marked by dominant traders selling off large portions of their positions
The Buying Climax phase is characterized by retail traders buying up positions, causing the price to continue rising
The Automatic Reaction phase is marked by a decrease in the number of traders buying up positions, resulting in a drop in price to the lower boundary of the Distribution cycle
The Secondary Test phase sees the price rise back to the range of the Buying Climax, as traders test the balance of supply and demand
The final phase, Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD), is characterized by the asset's price falling near or below the initial boundaries of the Distribution cycle, indicating price weakness. The LPSY phase sees traders testing the support of the asset's price at these lower levels, and the UTAD phase, if it occurs, is marked by increased demand and a push to the upper price boundary of the entire cycle.
VI. The Markdown Stage
The markdown period, also known as the distribution stage, is a crucial part of the Wyckoff Cycle. It follows the markup stage, during which professional traders, or "smart money," start to build their positions and the security's price begins to rise. As the price continues to rise, the public becomes aware of the security and starts to buy it as well, driving the price up further and widening the price range.
However, as the price reaches its peak and the professional traders start to sell off their positions, the markdown period begins. This is characterized by a decrease in volume and a narrowing of the price range, as the professional traders sell off their positions to the public.
It is important to note that the markdown period is just one part of the Wyckoff Cycle, and traders should always consider the overall market trend and use other indicators and studies in conjunction with the Wyckoff Pattern to make informed trades. However, understanding the characteristics and importance of the markdown period can provide valuable insight for traders looking to make long-term investments.
VII. Key Principles of the Wyckoff Pattern
The Wyckoff Method, a trading strategy developed by Wall Street trader and analyst Richard D. Wyckoff, is based on three fundamental laws that provide insight into market trends and help traders make informed decisions. These laws are: the law of supply and demand, the law of cause and effect, and the law of effort vs. result.
The law of supply and demand is one of the most basic principles of financial markets, stating that prices rise when demand is greater than supply, and drop when the opposite is true. This law can be represented by the following equations: if demand is greater than supply, the price will rise; if demand is less than supply, the price will drop; if demand is equal to supply, there will be no significant price change (low volatility). Many investors who follow the Wyckoff Method use price action and volume bars to visualize the relationship between supply and demand and gain insights into potential market movements.
The law of cause and effect states that the differences between supply and demand are not random, but rather the result of specific events or periods of preparation. In Wyckoff's terms, a period of accumulation (cause) eventually leads to an uptrend (effect), while a period of distribution (cause) eventually results in a downtrend (effect). Wyckoff developed methods of defining trading targets based on periods of accumulation and distribution, allowing him to estimate the probable extension of a market trend after breaking out of a consolidation zone or trading range.
The law of effort vs. result states that the changes in an asset's price are a result of an effort, as represented by the trading volume. If the price action is in harmony with the volume, there is a good chance the trend will continue. However, if the volume and price diverge significantly, the market trend is likely to stop or change direction. For example, if the market experiences high volume but low volatility during a consolidation phase, this may indicate that the trend is coming to an end and a reversal is imminent.
In terms of benefits and applications, the Wyckoff Pattern is particularly useful for long-term investors who are looking to take advantage of the natural ebb and flow of the market. It can also be applied to different time frames, such as daily, weekly, or monthly charts. However, it is important to note that the Wyckoff Pattern is not without its risks and limitations. As a standalone strategy, it may not always provide reliable signals and should be used in conjunction with other indicators and studies.
One indicator that traders can use to help identify the markdown period is the relative volume indicator. This indicator compares the current volume of a security to its average volume over a certain period of time, helping traders to identify unusual changes in volume that may be indicative of a change in the market trend.
To use the relative volume indicator in TradingView, first select the security you are interested in and then click on the "Indicators" tab. From the list of indicators, select the "Volume" category and then choose the "Relative Volume" indicator. You can then customize the settings for the indicator, including the period of time over which you want to compare the volume.
Once the relative volume indicator is applied to the chart, you can use it to identify changes in volume that may be indicative of a change in the market trend. For example, if the relative volume is significantly higher than normal, it may be an indication that the markdown period is beginning, as professional traders start to sell off their positions. On the other hand, if the relative volume is significantly lower than normal, it may be an indication that the markdown period is coming to an end, as the professional traders have finished selling off their positions.
The Volume indicator in Tradingview is a useful tool for analyzing the volume of a security or asset over a specified time period. To access the Volume indicator in Tradingview, simply click on the "Indicators" tab in the chart menu and select "Volume" from the list of available indicators.
Once you have added the Volume indicator to your chart, you can customize its appearance and settings to suit your needs. For example, you can adjust the length of the moving average applied to the volume data, as well as the color and style of the volume bars.
To turn on the internal moving average for the Volume indicator, simply click on the "Settings" button in the indicator menu and check the box next to "Show MA." From here, you can also specify the length of the moving average by entering a value in the "MA Length" field.
Using the Volume indicator with an internal moving average can be helpful in identifying trends in volume over time. For example, if the volume is consistently rising over a period of several days or weeks, this may be a sign of increased interest in the security or asset. On the other hand, if the volume is declining over time, this could indicate a decrease in interest or liquidity.
In addition to the Volume indicator, you can also use the relative volume indicator in Tradingview to compare the volume of a security or asset to its average volume over a specified time period. To do this, simply add the relative volume indicator to your chart and customize its settings as needed.
Overall, the Volume and relative volume indicators can be valuable tools for traders and investors looking to analyze the volume of a security or asset and identify trends in liquidity over time.
One of the best tools I have personally found, created by LUXALGO (Thank you humbly for this!)
The Smart Money Concepts indicator is a technical analysis tool developed by Luxalgo that is used to identify the behavior of professional or "smart money" traders in the market. It is based on the principles of the Wyckoff Method, which suggests that market trends follow a similar pattern of development that includes four stages: accumulation, markup, distribution, and markdown.
To use the Smart Money Concepts indicator in Tradingview, follow these steps:
Open the Tradingview platform and select the asset you want to analyze.
Click on the "Indicators" tab in the chart toolbar and select "Add Indicator."
In the search bar, type in "Smart Money Concepts" and select the indicator from the list.
Adjust the indicator's settings to your preference. You can choose the length of the moving average, the color of the lines, and whether you want to show the accumulation and distribution lines on the chart.
Click "Apply" to add the indicator to your chart.
Once you have the Smart Money Concepts indicator on your chart, you can use it to identify the behavior of smart money traders. The accumulation line represents the buying activity of professional traders, while the distribution line represents their selling activity. When the accumulation line is above the distribution line, it indicates that professional traders are buying more than they are selling, which may be a sign of bullish sentiment. Conversely, when the distribution line is above the accumulation line, it indicates that professional traders are selling more than they are buying, which may be a sign of bearish sentiment.
The SMC is designed to help traders accurately identify liquidity and find optimal points of interest in the market. It does this by displaying real-time market structure, order blocks, premium and discount zones, equal highs and lows, and more on the chart, allowing traders to automatically mark up their charts with widely used price action methodologies.
One of the key features of the SMC indicator is its ability to label internal and swing market structures in real-time, including Break of Structure (BOS) and Change of Character (CHoCH). These structures can provide insight into the behavior of institutional market participants and help traders determine where buy and sell side liquidity may be located.
The SMC indicator also includes alerts for the presence of swing structures and other relevant conditions, as well as options for styling the indicator to make it easier to display these concepts. It allows users to select between historical and present modes, and offers customization options for things like internal structure, swing structure, equal highs and lows, and fair value gap detection.
One of the benefits of using the SMC indicator is its ability to help traders filter out non-significant internal structure breakouts and fair value gaps using its confluence filter and auto threshold settings. It also allows users to display previous highs and lows from different timeframes, such as daily, weekly, and monthly, as significant levels.
You can also use the Smart Money Concepts indicator in combination with other technical analysis tools, such as trend lines and chart patterns, to help you make more informed trading decisions. For example, if the accumulation line is trending upwards and you see a bullish chart pattern forming on the chart, it may be a good time to consider entering a long position.
For more information and use cases please refer to the authors page:
Accumulation and Distribution Review and Memorization Tactic:
For the accumulation phase:
"P-S-C-A-R-S-L"
Preliminary Support (PS)
Selling Climax (SC)
Automatic Rally (AR)
Secondary Test (ST)
Spring (S)
Last Point of Support, Back Up, Sign of Strength (LPS, BU, SOS)
For the distribution phase:
"P-B-A-S-S"
Preliminary Supply (PSY)
Buying Climax (BC)
Automatic Reaction (AR)
Secondary Test (ST)
Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD)
Reminder! Review the GOLDEN RULES ABOVE!
Finding Patterns
The key principles of the Wyckoff Pattern involve understanding the concept of supply and demand and using chart patterns to confirm trade signals.
When it comes to understanding supply and demand, the Wyckoff Pattern is based on the idea that prices rise when demand is greater than supply and drop when the opposite is true. This is one of the most basic principles of financial markets and is a central concept in the Wyckoff Method. By analyzing price action and volume bars, traders can get a better sense of the relation between supply and demand and gain insight into potential market movements.
In addition to understanding supply and demand, traders using the Wyckoff Pattern also rely on chart patterns to confirm trade signals. Some of the most common chart patterns used in conjunction with the Wyckoff Pattern are the flag, the wedge, and the head and shoulders pattern.
Two of the most common chart patterns used in conjunction with the Wyckoff Pattern are the flag and the wedge. These patterns are typically formed when there is a sudden and sharp price move followed by a period of consolidation.
The flag pattern is formed when the price of an asset makes a sharp move in one direction, followed by a period of consolidation in a narrow range. The consolidation period is often referred to as the "flag" because it appears as a rectangular shape on the chart. The flag pattern is typically seen as a bullish pattern, as it suggests that the asset is likely to continue its uptrend after the consolidation period. To identify the flag pattern, traders should look for a sharp price move followed by a period of consolidation in a narrow range.
The wedge pattern is similar to the flag pattern, but it is formed when the price of an asset makes a sharp move in one direction followed by a period of consolidation in a gradually narrowing range. The consolidation period is often referred to as the "wedge" because it appears as a triangular shape on the chart. The wedge pattern can be either bullish or bearish, depending on the direction of the initial price move. To identify the wedge pattern, traders should look for a sharp price move followed by a period of consolidation in a gradually narrowing range.
Note that the flag and wedge patterns are just two of many chart patterns that traders can use in conjunction with the Wyckoff Pattern. Other common chart patterns include the head and shoulders, the double top and bottom, and the triangle. Traders should always consider
Head and Shoulders: This chart pattern is characterized by a series of three peaks, with the middle peak (the head) being the highest and the two peaks on either side (the shoulders) being lower. This pattern is often seen as a bearish reversal, indicating that the trend is likely to reverse from an uptrend to a downtrend.
Double Top: This chart pattern is characterized by two consecutive peaks at approximately the same price level, with a valley in between. This pattern is often seen as a bearish reversal, indicating that the trend is likely to reverse from an uptrend to a downtrend.
Double Bottom: This chart pattern is the opposite of the double top, and is characterized by two consecutive valleys at approximately the same price level, with a peak in between. This pattern is often seen as a bullish reversal, indicating that the trend is likely to reverse from a downtrend to an uptrend.
Triangle: This chart pattern is characterized by a series of peaks and valleys that converge towards a point, forming a triangular shape. There are three types of triangles: ascending, descending, and symmetrical. The direction of the breakout from the triangle can be used to confirm the direction of the trend.
Pennant: This chart pattern is similar to the triangle, but is characterized by a smaller price range and a faster time frame. It is typically seen as a continuation pattern, indicating that the trend is likely to continue in the same direction.
It is important to note that chart patterns should not be used in isolation, and should always be used in conjunction with other indicators and studies to confirm trade signals and make informed investment decisions
VIII. Benefits and Applications of the Wyckoff Pattern
The Wyckoff Pattern is a well-respected and widely-used trading strategy that has been used by traders for decades. It is particularly useful for long-term investors who are looking to make informed decisions about the direction of a security's price. Here are some of the benefits and applications of the Wyckoff Pattern:
Provides insight into market trends: The Wyckoff Pattern is based on the premise that market trends, whether bullish or bearish, follow a similar pattern of development. This pattern includes four stages: accumulation, markup, distribution, and markdown. By understanding these stages, traders can gain insight into the direction of a security's price and make informed trades.
Can be applied to different time frames: It can be applied to different time frames, such as daily, weekly, and monthly charts. This allows traders to use the pattern in conjunction with their preferred time frame and trade accordingly.
Helps traders confirm trade signals: Wyckoff can be used in conjunction with other chart patterns, such as flags and wedges, to confirm trade signals. By using multiple indicators, traders can increase the likelihood of making successful trades.
Useful for long-term investors: The Wyckoff Pattern is particularly useful for long-term investors who are looking to make informed decisions about the direction of a security's price. By understanding the different stages of the pattern, long-term investors can make informed decisions about when to buy and sell a security.
Can be used in conjunction with other strategies: It can be used in conjunction with other trading strategies, such as technical analysis and fundamental analysis. By combining multiple strategies, traders can increase their chances of making successful trades.
Overall, the Wyckoff Pattern is a useful tool for traders looking to make informed decisions about the direction of a security's price. By understanding the different stages of the pattern and using it in conjunction with other chart patterns and trading strategies, traders can increase their chances of making successful trades.
IX. Limitations and Risks
While the Wyckoff Pattern can be a valuable tool for traders looking to make long-term investments, it is important to note that it is not without its limitations and risks.
One potential limitation of the Wyckoff Pattern is that it is based on historical price and volume data, which may not always accurately predict future market movements. This means that traders should always consider other factors, such as economic news and analysis, when making investment decisions.
Another risk to be aware of when using the Wyckoff Pattern is the possibility of price manipulation. As mentioned earlier, traders should be aware of the potential for "pump and dump" schemes, in which unscrupulous traders or groups artificially inflate the price of a security through deceptive marketing tactics and then sell their positions at a profit. To protect themselves, traders should thoroughly research a security before buying and be aware of any red flags or warning signs that may indicate manipulation.
Additionally, the Wyckoff Pattern is a long-term investment strategy, which means that traders may have to hold their positions for extended periods of time. This can be risky, as market conditions can change quickly and traders may not always be able to exit their positions at the optimal time.
Finally, it is important to note that the Wyckoff Pattern is just one of many tools that traders can use to make informed investment decisions. While it can be a valuable resource, it should not be relied upon as a standalone strategy. Traders should always consider a variety of factors and use a variety of tools when making investment decisions.
X. Mastering the Wyckoff Pattern: A Five-Step Approach to Stock Selection and Trade Entry"
I. "Step One: Market Analysis for Dummies"
Mastering the Wyckoff Method requires a combination of technical analysis skills, market knowledge, and experience. Here are some tips on how to improve your Wyckoff identification skills:
Start by learning the basic principles of the Wyckoff Method. The Wyckoff Method is a technical analysis strategy developed by Richard D. Wyckoff in the early 20th century. It is based on the premise that market trends follow a similar pattern of development, including four stages: accumulation, markup, distribution, and markdown. Understanding these stages is essential to identifying Wyckoff patterns in the market.
Practice chart analysis. The Wyckoff Method relies heavily on analyzing price and volume charts to identify market trends and patterns. Therefore, it is important to develop your chart analysis skills. Start by familiarizing yourself with different chart types and indicators, such as moving averages and relative strength index. Practice analyzing charts for different assets and timeframes, and compare your analysis with real market movements.
Learn to identify key chart patterns. There are several chart patterns that are commonly used in conjunction with the Wyckoff Method, such as flags, wedges, and head and shoulders. Practice identifying these patterns on different charts and learn to recognize their characteristics and implications for market trends.
Use relative volume indicator. The relative volume indicator is a helpful tool for identifying Wyckoff patterns, as it shows the volume of a particular asset relative to its average volume. By comparing the current volume to the average volume, you can identify whether there is an unusual increase or decrease in volume, which can be a sign of accumulation or distribution.
Look for changes in market structure. The Wyckoff Method emphasizes the importance of market structure, or the relationship between supply and demand. Pay attention to changes in market structure, such as the formation of new support and resistance levels, and use this information to identify
II. Overview of the Wyckoff Method's Five Steps
Mastering the Wyckoff Method also involves a five-step approach to stock selection and trade entry. The first step is to conduct market analysis in order to determine the trend and direction of the market. This can be done using bar charts and Point and Figure charts to visualize the supply and demand dynamics in the market. The second step is to select stocks that are stronger in uptrends and weaker in downtrends, using bar charts to compare individual stocks to the relevant market index.
The third step in mastering the Wyckoff Method is to set goals for your stocks. This involves identifying price targets using Point and Figure projections for long and short trades, and choosing stocks that are under accumulation or re-accumulation with sufficient "cause" to meet these objectives. The fourth step is to determine whether a stock is ready to move, using nine tests to assess its readiness to buy or sell. These tests include evaluating the stock's market structure, volume, and price action, as well as its relationship to the overall market.
The final step in mastering the Wyckoff Method is to let the market carry you to victory. This involves recognizing that three-quarters or more of individual stocks move with the overall market, and using Wyckoff principles to anticipate market turns and put stop-loss in place. It is also important to trail stop-loss until closing out a position.
III. "Stocks That Aren't Total Duds"
Choose stocks that are stronger in uptrends and weaker in downtrends
Use bar charts or range candles to compare individual stocks to relevant market index
In the Wyckoff Method, it is important to choose stocks that are strong in uptrends and weak in downtrends. This means that when the overall market is trending upwards, these stocks will tend to outperform and when the market is trending downwards, these stocks will tend to underperform. One way to identify these types of stocks is by using bar charts to compare the performance of individual stocks to a relevant market index.
To do this in TradingView, you can start by creating a chart of the market index you want to compare your stocks to. For example, you may choose to compare your stocks to the S&P 500 index. Once you have the chart of the market index, you can add the individual stocks you are interested in to the same chart using the "Compare" feature. This will allow you to see how the performance of the individual stocks compares to the market index.
In addition to using bar charts to compare the performance of individual stocks to a market index, you can also use other technical indicators to help identify strong stocks. For example, you may want to look for stocks that are consistently above their moving averages, which can be a sign of strength. You can also use indicators like the relative strength index (RSI) to help identify stocks that are overbought or oversold.
It is important to keep in mind that no single indicator or analysis technique is perfect, and it is always a good idea to use multiple tools and approaches to help identify strong stocks. By using a combination of chart analysis and technical indicators, you can improve your chances of identifying stocks that are likely to perform well in different market environments.
Overall, the key to success in using the Wyckoff Method is to be proactive and disciplined in your approach to stock selection and trade entry. By following a structured process and using the right tools, you can improve
Using the number of stocks in the S&P 500 index that are above or below their 20-day and 50-day moving averages on larger time frames can be a useful tool for identifying potential trading opportunities. When the number of stocks above their 20-day moving average is increasing, it may indicate that the overall market trend is bullish and that there are more buyers in the market. On the other hand, if the number of stocks above their 50-day moving average is decreasing, it may signal that the market trend is bearish and that there are more sellers in the market.
Traders can use this information to make informed decisions about their own trades. For example, if the number of stocks above their 20-day moving average is increasing and the number of stocks above their 50-day moving average is also increasing, it may be a good time to consider taking a long position in the market. Conversely, if the number of stocks above their 20-day moving average is decreasing and the number of stocks above their 50-day moving average is also decreasing, it may be a good time to consider taking a short position in the market.
In addition to providing information about the overall market trend, tracking the number of stocks above or below their 20-day and 50-day moving averages can also help traders identify potential trading opportunities within individual stocks. For example, if a stock is consistently above its 20-day moving average but below its 50-day moving average, it may be a good candidate for a long trade. Similarly, if a stock is consistently below its 20-day moving average but above its 50-day moving average, it may be a good candidate for a short trade.
Overall, using the number of stocks in the S&P 500 index above or below their 20-day and 50-day moving averages on larger time frames can be a useful tool for identifying potential trading opportunities in both the overall market and individual stocks. By tracking this information and making informed decisions based on it, traders can potentially improve their chances of success in the markets.
IV. Setting Goals w/ X’s and O’s, I love you!
The Wyckoff Method emphasizes the importance of setting clear goals for your trades, as this can help guide your decision-making process and increase your chances of success. One way to set goals for your stocks is by using Point and Figure projections.
Point and Figure charts are a type of technical analysis tool that plot price movements without taking time into consideration. They are created by marking up a chart with X's when the price increases and O's when it decreases. These charts can be used to identify potential support and resistance levels, as well as to project potential price targets for long and short trades.
To use Point and Figure projections for setting goals, you first need to determine the current trend of the market and the direction in which you want to trade. If you are looking to take a long position, you will want to identify a target price that is above the current market price. On the other hand, if you are looking to take a short position, you will want to identify a target price that is below the current market price.
Once you have identified your target price, you can use Point and Figure projections to determine the likelihood of the stock reaching that price. This involves analyzing the number of X's and O's on the chart and identifying patterns that may indicate a potential trend. For example, if the chart shows a series of higher highs and higher lows, this may be an indication that the stock is in an uptrend and is likely to continue moving higher.
In addition to using Point and Figure projections, it is also important to choose stocks that are under accumulation or re-accumulation with sufficient "cause" to meet your objectives. "Cause" refers to the underlying factors that may be driving the stock's price action, such as changes in the company's financial performance or shifts in market conditions. By choosing stocks with strong "cause," you can increase your chances of success and achieve your price targets more easily.
Overall, setting clear goals for your trades and using Point and Figure projections and "cause" analysis can help you make more informed decisions and increase your chances of success in the market. By following the Wyckoff Method's principles for setting goals and identifying trade opportunities, you can improve your stock selection and trade entry strategies and achieve your financial objectives.
IV. "Setting Goals for Your Stocks"
By using Point and Figure projections, traders can establish realistic and achievable goals for both long and short trades.
There are a few key considerations to keep in mind when setting price targets using Point and Figure projections. Firstly, it is important to understand the underlying trend of the stock. Is the stock in an uptrend or a downtrend? This will help to establish the likely direction of price movement and inform the target levels you set.
In addition to the trend, it is also important to consider the current phase of the Wyckoff Cycle. Is the stock in an accumulation phase, where larger players are building positions? Or is it in a distribution phase, where larger players are selling off their positions? Choosing stocks that are in accumulation or re-accumulation phases with sufficient "cause" can help to increase the chances of meeting your objectives.
Another key factor to consider when setting price targets is the strength of the stock. Are there any clear levels of resistance or support that the stock is likely to encounter on its way to your target price? Understanding the stock's underlying strength can help you to refine your target levels and increase the chances of success.
Overall, setting price targets using Point and Figure projections is a key aspect of the Wyckoff Method. By carefully considering the trend, the phase of the Wyckoff Cycle, and the strength of the stock, traders can increase their chances of success and achieve their objectives.
To customize the stock scanner in TradingView to find stocks above/below the 20 day and 50 day moving averages:
Go to the stock scanner page in TradingView.
Under the "General" tab, select "Simple Moving Average" from the "Indicator" dropdown menu.
In the "Condition" field, choose "crosses above" or "crosses below" depending on your desired criteria.
In the "Value" field, enter the desired moving average value (e.g. 20 or 50).
Repeat steps 2-4 for the other moving average value.
Click the "Add Condition" button to add another condition.
Under the "Market" tab, select the desired market (e.g. S&P 500) from the "Market" dropdown menu.
Click the "Scan" button to run the scan.
To compare the findings to the heatmap using relative monthly volume as the sorting method:
Go to the heatmap page in TradingView.
Under the "Sort by" dropdown menu, select "Relative Monthly Volume".
In the "Group by" dropdown menu, select "Market".
Click the "Apply" button to update the heatmap.
Compare the stocks in the scan results to the heatmap to see which ones have relatively high monthly volume and are in the desired market.
www.tradingview.com
V.”is your stock ready to move its ass?”
The Wyckoff Method includes nine tests to determine whether a stock is ready to move in a particular direction, either upwards or downwards. These tests can be used in conjunction with bar and Point and Figure charts to assess the readiness of a stock and make informed trade decisions.
Trend: The trend of a stock should be evaluated to determine whether it is moving upwards or downwards. This can be done using bar charts or Point and Figure charts.
Volume: The volume of a stock should be analyzed to determine whether it is increasing or decreasing. Increasing volume can indicate that the stock is ready to move, while decreasing volume may indicate that the stock is not ready to move.
Range: The range of a stock, or the difference between its high and low prices, should be evaluated to determine whether it is expanding or contracting. Expanding ranges can indicate that the stock is ready to move, while contracting ranges may indicate that the stock is not ready to move.
Reactions: The reactions of a stock to price changes should be evaluated to determine whether it is moving in a bullish or bearish direction. Bullish reactions can indicate that the stock is ready to move upwards, while bearish reactions may indicate that the stock is ready to move downwards.
Tests: Tests of previous highs or lows can indicate whether a stock is ready to break out of its current range. A successful test of a previous high or low can indicate that the stock is ready to move in the opposite direction.
Stops: The placement of stops, or points at which traders will exit their positions if the stock moves in an undesirable direction, can indicate the readiness of a stock to move. If a large number of stops are placed at a particular price level, this can indicate that the stock is ready to move in the opposite direction.
Distribution: The distribution of a stock, or the process of selling off a large portion of a position, can indicate that the stock is ready to move in the opposite direction.
Accumulation: The accumulation of a stock, or the process of buying a large portion of a position, can indicate that the stock is ready to move in the same direction.
Selling Climax: A selling climax, or a period of panic selling, can indicate that the stock is ready to move in the opposite direction.
By carefully evaluating these nine tests, traders can make informed decisions about the readiness of a stock to move in a particular direction and take appropriate action.
VI. "Let the Market Carry You to Victory"
The Wyckoff Method emphasizes the importance of understanding market trends and identifying when a stock is ready to move. In order to maximize profits and minimize risk, it is essential to have a clear understanding of the market's direction and to know when to enter and exit a trade.
One key principle, as said before, of the Wyckoff Method is the idea that approximately three-quarters of individual stocks move with the overall market. This means that it is important to pay attention to the overall market trend and to use Wyckoff principles to anticipate market turns. This can help you determine when it is a good time to enter or exit a trade, and it can also help you set appropriate stop-loss levels.
To put stop-loss in place and trail it until closing out a position, it is important to use the Wyckoff Method's nine tests to determine readiness to buy or sell. These tests include analyzing the stock's price and volume patterns, as well as considering its trend, relative strength, and other factors. By carefully analyzing these factors, you can make informed decisions about when to enter and exit trades and minimize risk.
Overall, the Wyckoff Method's emphasis on market analysis and understanding market trends can be a valuable tool for stock traders looking to maximize profits and minimize risk. By following the principles of the Wyckoff Method, you can make informed, strategic decisions about when to enter and exit trades and take advantage of market trends.
GOLD in 2023Hello everyone!
Today I want to try to analyze the factors that will affect gold in the new year.
We will try to understand what to expect from gold and where the price may end up.
The difficulty of predicting GOLD prices
Predicting a possible future is a difficult and thankless task for itself.
Predicting the future price of gold is also difficult, because gold is an independent asset and it can be perceived as a separate currency.
At the same time, if currencies can be tied to the economies of countries, then what should GOLD be tied to?
The main indicators for gold are the volume of its purchases, the volume of invested funds of gold mining companies and the cost of gold production in general.
Since gold is used in the jewelry industry, it is possible to predict the future price movement of an asset if you understand the future demand for jewelry, which is very difficult to do.
With economic growth, people become richer and buy jewelry, which increases demand.
Moreover, during economic downturns, it increases the amount of money invested in gold, so people try to escape from inflation and loss of money in a crisis.
It is difficult to compare all these data with each other, because there is a lot of uncertainty in them, which is why the forecast for gold is a difficult matter.
Profitable?
Historically, gold is constantly growing.
Since 2000, the price of gold has increased 6 times.
Since 1970, gold has grown 51 times.
Does this mean that it will grow next year as well?
No. Such a large historical period gives us an idea of the direction of the main trend.
2023
The World Bank has made a forecast for the next year, which indicates that the price of gold will fall.
But don't blindly believe other people's analytics.
For example, the World Bank in 2018 predicted that in 2021 the price of gold will be equal to $ 1,247.
Now we know that the price in 2021 was in the range from 1676 to 1950.
You always need to conduct your own analysis and draw your own conclusions.
Now let's try to understand what will happen in 2023.
There are several main factors that point to the growth of gold next year:
1. Low interest rates
2. Raising inflation expectations
3. Higher oil prices
4. Increased demand from institutional investors
5. Devaluation of currencies of emerging economies
Low interest rates
The yield on 10-year Treasury bonds is at a historically low level.
Now investing in such bonds will bring you 1.5% per year.
That is very little and investors will look for alternative sources of income.
Since the stock market is overheated, investing in gold looks like an attractive option.
A large amount of investment funds will push up the price of gold.
Rising inflation expectations
Inflation is accelerating already this year and the US Federal Reserve predicts an increase in inflation in 2023.
Inflation is growing every year and in 2022 it amounted to more than 4%.
Inflation, as you know, devalues the currency, which increases the value of gold.
The amount of gold that you could buy for $ 1,000 a few years ago is already worth more, and it will no longer be possible to buy the same amount for the same money, and this trend is expected to continue.
Higher oil prices
Historically high oil prices contribute to an increase in the value of gold.
This can be explained by the fact that oil is an important factor in increasing inflation, the growth of which, as we noted above, weakens the currency, which positively affects the price of gold.
Everything that makes the currency weaken makes gold only stronger.
In 2023, according to analysts' forecasts, the price of oil will rise, respectively, we can expect an increase in gold.
Increased demand from institutional investors
In 2022, the record for the volume of gold purchases was updated.
Central banks bought 400 tons of gold worth $ 20 billion, which is the highest figure in half a century.
And there is an explanation for this: low interest rates and currency printing leads to currency depreciation.
Banks need to somehow avoid losses.
The stock market is overheated, and bonds give too small a percentage of profit, which, according to expectations, will not help to avoid even inflationary risks, and what remains?
The market correction forces Central banks to buy huge volumes of gold, which inevitably pushes the price.
Conclusions
These are not all factors that may affect the growth of gold next year.
In addition, the world is extremely volatile and there is a possibility of factors that will push the price down, for example, an increase in interest rates or other drastic changes related to inflation and, for example, the adoption of cryptocurrencies by world banks.
Unexpected and drastic political decisions and the actions of some countries have already been able to affect the global economy this year.
That is why long-term forecasting of such an important asset for the global economy as gold is extremely difficult.
It is necessary to be objective in the analysis, open to the possible emergence of new factors and soberly assess the real situation.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
Trading with Candlesticks Harmony - Above 80% Win RateIn this video I discuss how to use simple wave-analysis and how to use candlesticks harmony in 5 or 15 minutes time-frames to trade with success. This sterategy even works on 1 minute time-frames for some forms of countable harmonies...
---
Gerald Mann was born Mr. Peiman Ghasemi on February 16, 1988. He got deported from Turkey to Iran where he is exit banned now. Alongside trading, he is also wishing to gain the freedom to leave the country. On the other side the silence of the related governmental departments of the U.S. is obvious. There is no answer.
ANALYSIS OF THE BULLISH MOVEMENTHello everyone!
Today I want to discuss with you the bullish movement or bullish momentum.
The topic is interesting, and most importantly profitable!
Beginning of observations
To begin with, we need an uptrend.
If you open long positions when there is an uptrend in the market, you will make a profit more often.
The best entry point will be a reversal, after correction.
This is the moment we are waiting for.
The beginning of the correction will be marked by the renewal of the lows and the scrapping of the upward trend.
An imbalance appears on the chart, usually in the area of the level breakout..
Reversal+position opening
The beginning of an upward movement begins to emerge when the price cannot update the minimum and begins to form each new minimum above the previous one.
In addition, the structure breaks down and an imbalance appears in the area of breaking the level up.
Long positions can be opened at these points.
If you did not have time to open a position or want to wait for a conservative opportunity to enter, you can open a long position when the price returns to the previously broken level and tests it again.
Goals
Previous highs may be the targets.
This price movement pattern is observed on all timeframes every day.
With the correct use of this method, if you have trained well and learned how to correctly identify these points, you will be able to earn.
Train, study and earn .
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
