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Two Types of Elliot Wave CorrectionsWhen it comes to Elliot Wave Theory, we know of two different correction patterns . On the left you can see the classic correction, which is less common in real market situations. On the other hand, the flat correction (right) occurs more frequently in the market, since modern price action is often characterized by fakeouts . In this case, a fakeout looks like a wave B making a new high above wave A. In most cases, traders would open a trade here due to a structural break, which then runs against them (bull or bear trap). In the following table you can see how the respective correction patterns differ from each other and what you need to pay attention to. It is very important that you learn how to use Fibonacci tools correctly so that you can calculate the wavelength properly. Maybe I'll do a separate educational post on the proper use of those tools in future. Thank you very much for your attention, Your RT
COINBASE:BTCUSDEducation
by RT_Trading_
9
2 Types of Flags / Trading Range and Channels as FlagsWe have two flags in trading: First: Horizontal flags (Trading Range). These flags are the strongest type of flag. Horizontal flags indicate that the opposite side of the trend is incapable of creating a highs/lows opposite trend. Second: Flag with minor highs/lows. This type of flag is weaker than the first one. The opposite side of the trend was able to create the opposite highs/lows (Minor highs/lows). Flags Tips: 1) Before trading with flags, always check out the trend before them. Trends must be strong so the possibility of flag breakout increases. 2) After checking the trend before flag, check out the candles within flags. Less than 20 bars in Horizontal flags is acceptable but more than 20 bars make the market Neutral with 50-50 chance of breakout. Also in flags with minor highs/lows you have to check the latest major high/low and the opposite side must not reach that major high/low otherwise trend may be reversed. According to the points mentioned about flags, we examine the bitcoin chart: If we zoom out on the chart, we see a large trading range that we have already had a strong uptrend. This range is an ascending flag but has more than 20 candelabra, which indicates that both sides of the market are active. Within this range, a tight downtrend channel has formed over the past few weeks. It is true that we do not have a downtrend before this channel, but we consider it an ascending flag and expect it to break upwards.
Education
by AmirSoraya
83
DEFINE YOUR LEVELHello to all! Let's talk about what levels of becoming a trader are. LEVEL #1: Unconscious Incompetence When a beginner enters the forex market for the first time, he thinks that it will be easy to make money. He has heard many beautiful stories and is now ready for you to go into battle. The price is going up! So it's time to buy. These first steps of an incompetent trader lead to disaster: usually a loss of the deposit. It can only be worse if the trader manages to earn something and starts to think that he understands the market. Over time, these traders lose everything. After a series of mistakes and losses, comes the realization of one's incompetence and the desire to become better. LEVEL #2: Conscious Incompetence At this level, the trader realizes that he lacks knowledge and the trader begins to study and seek… A trader looks for the Grail, buys "super profitable" indicators, learns trading methods and changes them every week without understanding. A trader experiments with indicators, Fibonacci lines, each new figure of technical analysis seems to be the one that will lead to success. The trader is looking for a bottom, an ideal entry point in the market and loses money again. This level can last for several months or even years. The trader will study, search, be disappointed every day. It is at this stage that most of the players leave, who do not believe that it is possible to make money on the market. LEVEL #3: “Eureka!” At the end of the second level, the trader begins to understand that it is not a matter of strategy, but of psychology. The trader begins to realize his mistakes and realize that he was succumbing to emotions that were blinding. The trader begins to study books on psychology and find his mistakes on the pages. At some point comes the realization that the future movement of the market is impossible to predict. The trader chooses a strategy that suits him and determines the risks for himself, trading becomes easier. Negative transactions do not upset, because the trader understands that the strategy works and sooner or later the trader will take his toll, you just need to act according to the strategy. A trader has learned to manage risk and learn the discipline to follow a strategy clearly. LEVEL #4: Conscious Competence A trader opens trades when the system gives a signal. A trader easily closes losing positions when he realizes that the market is moving against him. The trader allows profitable trades to grow, and cuts unprofitable trades. Most likely at this stage, the trader will trade at zero, learn not to lose money, understand how the market works. Losses do not bother, but the trader allows profits to grow, and this can continue for about a year. LEVEL #5: Unconscious Competence Trading is easy and unconscious. The trader, as if on autopilot, opens and closes transactions and does not feel emotional swings. The trader mastered his emotions. 100 pips of profit don't turn the trader's head like before. Trading becomes work. The trader does not stop developing and analyzes each trade in order to improve the system. And the trader likes all this, because it is still a very exciting journey, which now brings money to life. Conclusion Trading is not easy, but it can be learned. It should be understood that the main enemy in the market is your emotions. Do not lose control over yourself, study, analyze, follow the strategy and then you will succeed. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
22
BTC DAILY POST (1/3) XABCD PATTERNShere are the XABCD Patterns I found on the bitcoin chart : ) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- If you enjoyed this post and agree with me, a like and a sub would be very nice : ) If you have any other ideas or simply disagree, manifest yourself in the comments ⬇️⬇️⬇️ Stay updated for more content Have a nice Day : ) Bye! ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
COINBASE:BTCUSD
by xtekky
SECRETS OF PROFITABLE DAY TRADING. №1. Hello everyone! Today we will discuss a very important topic - intraday trading . Intraday trading is considered not an easy task, but quite profitable. There are a few secrets that every trader should know about. These secrets will greatly improve your trading and relieve you of unnecessary stress. SECRET 1 - Don't trade below H1 During the day, the trader uses setups that will often give false signals on small timeframes, which will make trading nervous and unprofitable. On H1 timeframes and above, setups are processed much better and there will not be as many false signals as on small timeframes. The higher the timeframe, the stronger the setups formed on it. SECRET 2 - Don't make too many trades Even if you think that intraday trading involves a large number of transactions, this does not mean that you need to open transactions often. Each trade should be entered after the setup signal , don't open trades just because you feel like it. Look for clear signals, like in the books. Wait, don't rush. SECRET 3 - Number of tools Day trading involves many quick decisions from the trader. If you follow 30 pairs at once, you will not be able to clearly analyze the market and will not be able to make the right decisions. There are enough deals inside the day, so keep an eye on 3 pairs , no more. For beginners and it will be a lot, start with one pair and as you get better, add more charts. Don't make it difficult for yourself, it's not easy. SECRET 4 - Risks The old risk rule still works and works well. Do not risk more than 1% of your capital on each trade. This rule applies most to beginners. Experienced traders can deviate from this rule and risk a little more. But this applies to experienced traders and even they should not risk 50% of the capital. It's too much. SECRET 5 - News News has always influenced and will influence the market. If the news is not so scary for high timeframes, then for smaller ones it can become a big loss. Do not trade half an hour before the release of important news. This is a dangerous time when the market can go either way very quickly, stopping your position. Don't take risks. Good luck! End of the first part.
Education
by DeGRAM
15
Indexes - What are they and how do they work?Index tracks performance of multiple assets that are grouped together. One of the first people to introduce the concept of indexing were Charles Dow and Edward Jones when they created the Dow Jones index in 1896. This concept allows for an easy tracking of performance of any particular sector within the economy. For example, the Nasdaq 100 index tracks performance of hundred biggest tech companies in the U.S.; similarly, the Russell 3000 index tracks three thousand largest companies in the United States. These indexes contain U.S. securities which account for over 90% of U.S. corporate equity; therefore, analyzing an index provides an investor with information about the overall health of the economy or particular sector. Diversification Generally, investing in indexes is associated with lower risk than investing in stocks. This is because indexes are structured in such a way that they diversify risk by tracking performance of multiple assets rather than by tracking performance of one single asset. For example, if an investor's portfolio consists of shares of a single stock company and the value of those shares drops, then it directly affects the portfolio in a negative way. However, if an investor owns an index tracking performance of 10 companies instead of a one stock title, then the investor's risk is diversified among ten companies instead of one single company. Therefore, an index tends to perform well as long as the majority of its components perform well. Similarly, when the majority of companies incorporated within an index perform poorly then the index tends to reflect it. Illustration 1.01 Illustration above depicts the monthly chart of Hang Seng Index (Ticker: HSI). It is observable that the index performed well in the long-term. Though, massive drops in the index are observable too in 1997, 2000, 2007, 2015 and 2018. Source: www.tradingview.com Value of the index and weight distribution The value of an index is dependent on its underlying holdings; further, it can be based on the price, market-cap or any other metric related to these assets. There are various methods on how to weight an index which plays an important role in how it performs. For example, in an unweighted index all its components have equal significance, regardless of their size. However, in a market-cap weighted index these components hold significance that is proportional to the size of their market-cap. Therefore, a volatile move in a big company would have a bigger impact on the overall performance of an index as opposed to the volatile move in a small company. Most indexes are price-weighted and market-cap weighted. Indexes as financial assets Generally, indexes tend to move in trends and produce good results over a long-term period. Index investing is preferable for inexperienced and passive investors because it tends to outperform active management in the long run. Additionally, it takes off psychological pressure that is associated with an actively managed portfolio while providing more free time to an investor. Exposure to an index can be gained by investing in index futures, options, CFDs, ETFs and other derivatives. Major indexes include: Dow Jones Industrial Average - thirty large U.S. companies that trade on the NYSE and NASDAQ. Nasdaq 100 - hundred biggest tech U.S. companies that are publicly traded. Standard & Poor 500 - five hundred biggest companies in the U.S. that are publicly traded. Russell 2000 - two thousand smaller companies that comprise the Russel 3000 index. Russell 3000 - three thousand biggest companies in the U.S. that are publicly traded. DAX 40 - forty biggest German companies that trade on the Frankfurt Exchange. Hang Seng Index - sixty biggest companies that trade on the Hong Kong Exchange. Seasonality and trends Indexes tend to move in cyclical trends and less often in trading ranges. They are less prone to the effects of calendar and industrial seasonality when compared to stocks and commodities. Change in components Since their inception many indexes have changed the composition of their underlying assets. For example, the Dow Jones Industrial Index started as Dow Jones Transportation Average in 1896 and consisted of only twelve companies. These companies operated mainly in railroads, cotton, tobacco, gas and oil sectors. However, eventually new companies were added to the index until it reached the total number of thirty companies in 1928. Since then the composition of the index changed several times; although, the number of companies stayed the same. This concept of rebalancing indexes is common to many other indexes; and it usually occurs on a quarterly basis. Illustration 1.02 Picture above shows the monthly chart of the Nasdaq 100 Index (Ticker: NDX) between 1995 and 2006. Companies included in this index changed over time. Nowadays, the Nasdaq 100 index includes such companies as Alphabet, Apple, Microsoft, Intel, Tesla, etc. Source: www.tradingview.com If you have not read our previous articles on stocks and commodities, please feel welcome to do so. They are attached to this idea. Additionally, feel free to express your own thoughts and ideas in the comment section below. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
SP:SPXEducation
by Tradersweekly
43
How to manually adjust the axis skew.Notes: Often times adding the various indicators offered by the community can result in skewing the charts graphical environment, a problem that can be resolved manually if there isn't an alternative available. Instructions: Click on the axis and drag the mouse, then recenter the chart. About the Author: I strive to become one of Tradingview's pinescript Wizards and Top Authors, as well as build a reputable reputation & following. "Please remember to comment, like, share, and follow me!"
NASDAQ:AAPLEducation
by UnknownUnicorn28743597
How to FIND the BEST PAIRS to trade! Examples and explanations.Here the first part of the lesson: How do interest-rates effect the market and how do I find good pairs to trade? The market offers you 5 main asset-classes: 1️⃣ Bonds 2️⃣ Stocks 3️⃣ Commodities 4️⃣ Metalls 5️⃣ Financials What we want to indeifity as a trader is the cashflow, means where big players are buying or selling. They don`t buy breakouts or an obvious momentum that already happened, instead they accumulate or distribute for days / weeks as they have a lot of capital to invest and cause support / resistance aswell as bottoms / tops. Important for them are always the fundamentals such as Economic data, Inflation and so expectations for the monetary policy of central banks they price in. Before we start the journey we need to understand the effect of Interest-Rates I explain that simplyfied and in short as I its a complex topic: The Interest-rate is the rate a central-bank lends money to privat credit institutions for. So your bank aswell as mine has a bank-account at the central bank of your country. They give them money in order to have enough capital to hand out credits to privat customers aswell as companies. The lower the interst-rate is the more demand is in the market. I mean, if you want to buy a car would you rather finance it with 5% or 2% interest-rates? You have the opportunity to buy a car with less debts at the bank. Same for companies, if you need a second office, goods, more capital for production etc. you rather take that opportunity when rates are low. Credit-business has a huge competition and banks will offer lower and lower interst-rates to attract more customers. The longer lent term the more risk is involved as you could for example lose your job and won`t be able to pay back the credit anymore, means interest-rates are usually higher due to the risk than short-term-lendings. The yields are shown in the bondmarket👉 This is why everyone talks about a "reversed rate-curve" as a sign for a recession. Because your bank gets money in the short-term from the Centra Bank on order to hand them out in the long-term to make money. If the risk of an upcoming recession is present the short-term involves more risk, thus short-term yields are higher than long-term-yields and banks can`t give out any credits anymore as they pay more to the central bank than they make. Here a quick overview of interest-rate-effects: Higher interest-rates 1️⃣ Increased cost of borrowing 👉 Reduced investment 👉 Lower economic growth and bad for stocks 2️⃣ Higher mortage interest 👉 Reduced consumption 👉 Lower economic growth and bad for stocks / house prices 3️⃣ Increased return for savings 👉 Less spending 👉 Lower economic growth 4️⃣ More demand in the currency due to higher interests / returns 👉 Lower inflation Vice versa with lower interest-rates. The lower the interest-rate, the more consume and investment is in the market. You see there is a lot to learn and to understand and to give you all information I`d have to finish a course.😆 Let`s start with the corona-crises: The FED has just started to raise interest-rates after the financial crisis in 2008. And as you probably understand now, they lowered them back in the days to provide more money to the market and to boost consume / investment to rescue companies. After the raise corona came and shocked the market. The first reaction of the FED was to lower interest-rates. They do this because they want you not to keep your money on your bank-accound and instead spend it to boost the economy and of course to use the chance to get a credit for better conditions. Additionally they have raised their total balance-sheet, continued with quantative easing (printing money to buy bonds) and we`ve got the stimulus-package. Demand and Supply regulates a price ... now we have tons of supply and fear of inflation. Now ask yourself: What is the best trade here? Probably to short the US-Dollar and to BUY stocks! What currency has the strongest weight in the US-DOLLAR-BASKET? 👉 Euro with ca. 57%. Euro will have the strongest rally due to the weak US-Dollar. What is asked when the stockmarket pumps? Australian Dollar aswell as New Zealand Dollar 👉 Both will fly, but even more than EURO because of the USD weakness. Most attractive pairs: 1️⃣ AUD/USD long 2️⃣ NZD/USD long Also good pairs: 1️⃣ EUR/USD long 2️⃣ GBP/USD long We know AUD and NZD are both stronger than EURO due to the risk-on in the stockmarket means: 1️⃣ EUR/AUD long 2️⃣ EUR/NZD long Whatlese do we know? We know Crude OIL pumping due to risk-on in the market. It goes up as a pre-indication for inflation and a healthy economy. Who exports OIL? Ah yeah... CANADA. So if there is more demand in OIL and the market buys in CANADA investors have to exchange their currency into the Canadian Dollar. USD falls due to low interest-rates 👉 Canadian dollar moves up due to pumping OIL 👉 USD/CAD SHORT Just a few examples here how to think. Central-Banks are independed institutions and have the following task: 1️⃣ Provide economic growth 2️⃣ Price-Stabillity Central Banks aim for an Inflation of 2% a year (compared the year before) because they consider this as a healthy level. They basically define this as a fine line of "prices are not going crazy" and "companies make more money." A little bit of inflation, or higher prices increase earnings of companies that can as a result expand, offer more jobs etc. 👉 Which defines the first task economic growth. The problem is.. they can provide money to the market in case of fiscal support is needed, but they can`t take it back and SAY GUYS WE NEED OUR MONEY, its too much floating and inflation is too high. 1️⃣Healthy economy: Rising inflation and a growing economy "Rate hikes getting likely as economy doesn`t need fiscal support" 2️⃣Unhealthy economy: Stable inflation but a stagnation of the economy "Rate hikes getting less likely as economy needs fiscal support." Now we have a dilemma here..... 3️⃣ Disaster and current situation High inflation but a stagnation or even a slowdown in economy "Rate hikes are tricky as the economy needs fiscal support while inflation is already HIGH." Either price-stabillity or the economy suffers❗️ Now keep this in mind: Jerome Powell promised Biden to fight the inflation at all costs in order to get his second term in office. It is tricky to know what he is gonna say, but we know he promised it to the President. This is why the market is so shaky. The market hopes to see a dovish Jerome after the Sell-Off in stocks. At the same time the market knows we will see a year with rate-hikes. What do you think will be the best pair to trade after the FOMC?!
FX:SPX500Education
by Trading2ez
3
FALLING KNIVESHello everyone! Today I want to discuss with you the topic of trading against the trend. This occupation is extremely risky, while everyone wants to catch a reversal, because they can bring big profits. Why is it so dangerous to trade against the trend? We all know that the trend is our friend. And you should always remember that this friend is very strong. No one knows when the price will start to reverse, which means that if you decide to trade against the trend, you will most likely get stopped out. Therefore, trading against the trend was dubbed "CATCHING FALLING KNIVES" . Traders look at the history of price movement and it seems to them that it is easy to predict a reversal - there is a top, there is a pattern, but everything is not so simple. If you are more careful, you can find moments when the price formed peaks or patterns similar to a reversal, but there was no reversal. If you entered at such a moment against the trend, you would lose everything. Be careful! Most traders lose their money precisely because of such situations when a position is opened against the trend. This is the most dangerous occupation in Forex. You can see a lot of patterns and the price still won't reverse. Therefore, you need to analyze the whole picture as a whole, you should not rely only on patterns or indicators. Range trading When it is not clear who is stronger than the bulls or bears, that is, the market moves in a range, it is worth trading by setting small goals. And, of course, you need to trade from the levels. In range trading is carried out from level to level, there will be your goal. Range trading is harder than trend trading, but easier than counter trend trading. How to trade? The ideal situation for trading against the trend would be when, after a strong move, with large candles, a double top begins to form. A double top is a sign of a weak trend. In this case, the first vertex should not be far from the second. If the first peak is far away, then the price has reached the level. Trading from a strong level is a good idea. Here you will often see trend reversals. It is worth noting that the closer the two peaks are to each other, the stronger the sell signal. At the same time, it is worth remembering that this movement may just be a temporary correction. Do not overstay the position in anticipation of a big move. The ideal combination for entering against the trend would be the level and the formed pattern. You need to enter when the market has already reversed, that is, the second top is clearly visible on the chart. Exit Even if you entered perfectly, and the price goes where you need it for some time, you should not relax. Be aware that this may just be a correction of a previous big trend. At the slightest sign of a continuation of the previous trend, get out. It is better to take a little profit than to lose everything. If the price moves confidently enough, set a take profit according to your strategy. You can set a take profit 3 times the stop loss. Or, if you know how to hold positions correctly, you can put a stop loss at the next closest level. One good sign A candle with a long shadow is a very good sign. As a rule, after such a candle, the price goes in a different direction relative to the shadow. A long shadow means that the price passed the level, but failed to consolidate and went in the opposite direction. This is a sign of weakness in the trend and a good signal to trade in the opposite direction. conclusions Trading against the trend is the most dangerous, the most difficult thing. If you decide to trade against the trend, wait for the signals, do not rush. Watch the price very carefully, even if it goes in the direction you want. Over time, you will learn how to enter trades better and then trading against the trend will bring you more profit than losses. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
18
ABSORPTION MODELHello everyone! Today I want to share with you a very strong pattern that I use myself and that you can find on any chart. When used correctly, this pattern is able to suggest the best entry point and possible reversal, which potentially promises you good profits. Identification The engulfing pattern looks like two candles, the first of which is small, and the second is large and its body will be larger than that of the first, and the candle is directed in the opposite direction. The logic of this model is simple - there is no more strength left in the market to push the price - the first candle, after which a large one is formed and uses weakness to push the market in the opposite direction. A couple of important conditions: There must be a trend before the pattern. The second candle should be large and have the opposite direction. In addition, the first candle should close almost without a shadow, that is, at its maximum. Trading in a flat can bring a lot of losses, since a lot of false signals appear in such a market. Trade The entry into the market is made after the level of the first candle is broken - that is, the market has swallowed the candle and goes in the opposite direction. The stop loss is placed beyond the high of the first candle. Take profit . There are several ways to set a take profit. You can set it at a ratio of 3:1 or more to your stop loss. Another way is to set a take profit in the area of ​​the next level. This method can bring more profit, while it is worth remembering that the market may not reach the level. Timeframes The choice of timeframe depends on your trading style, as this pattern occurs on all timeframes. But it should be understood that the lower the timeframe, the worse the figure will be worked out. The ideal time frame for trading is 4 hours. You can choose the one that suits you. Conclusions This pattern, like all the others, provides a guide for trading, but this does not mean that the market will definitely go in the direction you need. When analyzing, it is worth analyzing the whole picture, do not rely on only one pattern, use indicators. When trading from the level, this model will be worked out more often. Use patterns correctly. Good luck!
Education
by DeGRAM
5
BTC / USD Main trend. Triangle Secondary trend reversal zone.BTC / USD on the chart is the main trend of this branded cryptocurrency. Monthly schedule. Positional trading. Symmetrical triangle. The price is already trading above the secondary downtrend line (symmetrical triangle resistance). Also, from the reversal zone, a slight pullback is possible compared to the percentage of the trend (possibly squeezing) to the mirror support level (the former resistance of the triangle) -16.66%. Maximum movement -31.21% (unlikely). If there is such a deep pullback to the main trendline, an ascending triangle will form. Maybe it's even better for the 2021 madness. Before the world moves to "new money", "China" and the cryptocurrency brand "will come to every home." The general trend of projects is predetermined in advance. Today is 18 10 2 0 2 0.
BITFINEX:BTCUSD
by SpartaBTC
12
RSI Indicator & How To Use ItHello everyone, today, we´re gonna talk about an RSI and how to use it. What is an RSI? Basically, it´s an indicator that shows if the asset is overpriced or underpriced. Basic information RSI is 0-100 if the price is at 0-30, the asset is underpriced and theoretically it should go up. if the price is at 70-100, the asset is overpriced and theoretically it should go down. Professional information You can set an MA based or RSI moves. And this is getting really interesting right now :) Every time, the MA is touching bottoms or tops of RSI, it will go up or down (touch bottom = go up, touch top = go down.) It works like an ball and floor. You just drop the ball on the floor and everytime the ball touches the floor, ball will just bounce and go up. I drew it to the chart (green circles). Okay guys, seems like we are in the end. Hope this helped you to make greater decisions and take good view at RSI. Personally, I use RSI a lot and it´s really saving my a$$. Thank you so much for reading my post, I´ll be really glad if you will hit that like button and follow me, so you can see other tutorials. Have a nice rest of your day and stay safe. Tommy.
CAPITALCOM:OIL_CRUDEEducation
by TommyTK247
Higher timeframes never lie! Look at the monthly timeframe What do you see? Higher timeframes never lie and they're very simple to understand! We see a double top around 60_70K which is a very strong resistance also we see a bearish divergence because as price making higher highs RSI making lower highs also RSI is overbought. There's a support around 18_13K and also 100 monthly EMA is exactly there to support the price in future. These are very simple and obvious. Now you look at the chart and tell me what do you expect from bitcoin?
INDEX:BTCUSDEducation
by CryptoTitans1
5
MARKET MAKER MANIPULATIONHello everyone! Today I want to discuss with you a very interesting topic - the traps of market makers. Let's get started. Traps… How often did you encounter this - you opened a position, and why did the price go sharply against you, knocking out your stop loss, and as soon as your position was closed with a loss, the price turned around again and went where you expected? You analyzed your trades and did not understand what you did wrong. Actually, it's not your fault. You just fell into the trap of a market maker. These traps are created by large players in order to collect the stops of small market participants, thereby creating liquidity for opening or closing their large positions. What do traps look like? As a rule, traps are false level breakouts. It is in these places that small players place their stop orders and this will be the main goal of a large player. The first trap pattern is the classic Double Top pattern. Everyone knows from books that the second peak should be slightly lower than the first. So the market tells us that the price no longer has the strength to make new highs and it's time to fall. In fact, above the first peak, most traders place their stop losses, and large players push the price to them in order to activate orders and gain liquidity, after which the market reverses. The second trap situation is the trend. The trend is our friend! Everyone remembers and knows this. In addition, everyone remembers that the trend changes when the price, in a bear market, renews the previous high. After the new high, we believe that the trend has changed, but the price suddenly falls even lower and the downtrend resumes again, what happened? The big player knows that traders put their stop losses above the last high and that is why the price pushes higher, so liquidity gathers, after which the bear market continues. How to trade? We cannot find out the thoughts and desires of major players. The average trader should analyze the chart and try to act in the direction the market maker is pushing the price. Pay attention to false breakouts - these are strong signals. Seeing that the price has updated the maximum, and then turned around sharply, go short, so you will trade in the same direction with a major player. Also, remember that traps are usually characterized by candles with long tails. A long shadow will be a false breakout. Conclusions Trading traps is very difficult and at the beginning of the path you will fail. Study the market, try to understand how a big player thinks. When you learn, this strategy will bring you big profits. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
16
BEST CROSS CURRENCY PAIR EUR/GBPNow the dollar is going through a turbulent time, and EURGBP will help us avoid problems related to the dollar, because the pair does not contain the main world currency. In addition, after Brexit, new interesting opportunities have opened up, which I will discuss below. Dollar Most traders choose to trade pairs in which there is a dollar due to the large liquidity. Liquidity is a trap for a trader, especially intraday traders, but beginners do not understand this. This liquidity is created by large players whose goal is to collect your stops and manipulate the market. Such a market is very difficult to predict and very often your positions will be closed by the stop. The only way out of this unfavorable situation is to trade cross-pairs. Cross-currency pairs There are 8 recognized major currencies of developed countries with stable economies. The fact that these currency pairs can interact with each other without the mediation of the dollar makes them so attractive and resistant to external news and stuffing from the United States. Cross-pairs, unlike dollar currency instruments, have the following advantages: A more unambiguous reaction to economic indicators; Limited (half-day) volatile trading period; The opportunity to calmly move positions through the night, as pairs react poorly to news from the United States; EURGBP Cross-pair The EURGBP cross-pair ranks first among the crosses in terms of transaction volumes. The EU and the UK are connected to each other geographically and politically, until 2020 it was a single union. In 2016, British citizens voted for the option of Britain exit, giving the world a new word "Brexit". After Brexit, the pair began to grow, giving a good opportunity for earnings. In addition, the EURGBP pair always reacts to problems in the global economy in the same way - with the growth of the euro, for the simple reason that the economy of the Union is larger than the economy of the island UK. The economic crises of the XXI century have raised the exchange rate of the pair to the same levels, which allows you to build countertrend strategies, as well as to fix profits in the interim. Best trading time The most active time of EURGBP trading is from 7 to 16 in London. A unique feature of EURGBP is a decrease in trading activity during the American session, which is explained by the absence of USD in the instrument. The day trader can afford not to sit waiting for the release of the Fed minutes and not to increase the stop loss before the publication of the NFP. How exactly to trade and what strategies to apply? The pair is characterized by a lower percentage of knocked-out stops, since the price does not make unexpected jumps, unlike the dollar. Thanks to this, you can trade using classic trend strategies. As a rule, the movement is most often unidirectional. That is, having opened positions in the right direction, you can safely keep it until the evening or put a take profit. The tactics of late entry, at about 10 o'clock in London, will help to weed out false breakouts. Daily trends after Brexit After Brexit, the pair gives very clear and understandable trends. You can even use a simple moving average to open good deals. The graph is literally "like in textbooks". It is unknown how long such a picture will last. Conclusion Cross-pairs are special currencies that can give a trader a number of advantages over other instruments. This situation arises because crosses are not interesting to large players, market makers work out technical trading on them without mega-fluctuations in liquidity and "hunting for stops". In general, EURGBP is a calm pair, suitable for beginners and still providing opportunities for trend trading on D1.
Education
by DeGRAM
5
Kroger stock is investor's safehaven in a volatile period.Hi everyone, Today I want to raise an interesting topic of stock market sector rotations. NYSE:KR is a great example to demonstrate that. Since late November broad risk assests have been selling off. When investors see the rise in volatility and sell their tech stocks, where do they put their money? They reinvest their money into low risk assets. NYSE:KR stock recently fired off a signal for a great buy opportunity . That's because Kroger represents Consumer Defensive stock sector and money has been flowing in from all the risk assets selling. And indeed, we can see that since November 22 stock gained around 25% in price. Now it is making all time highs, while all major indexes are nowhere near their tops. As the cycle continues, money will outflow from the stock, which will cause it to retrace back. But do not forget that Kroger is an established business with decent earnings and a long history of dividend payments. It won't crash like tech stocks tend to do. Instead, it will retrace to around 40-43 level. And when the tech recovers and we reach peak of bullish euphoria once again, just buy some Kroger stock . Trade wisely and good luck! ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise
NYSE:KR
by AyBe_Invest
STOP LOSS > TAKE PROFITHello everybody! Today I want to discuss with you a question concerning risk management – Is it possible to set a stop loss more than a take profit? History says… Historically, traders have a rule according to which a stop loss should not be more than a take profit. There is a logic in this, if you receive more losses than profits, sooner or later your account will disappear. But time goes by and the market is changing and already today it correctly seems not so ideal. Every trader should understand that after a large number of trades, the expectation should be positive. The expectation formula is as follows: (Average profit value * ratio of profitable positions) – (average loss value * ratio of unprofitable positions) - transaction costs. In order not to bother with calculations, traders have created a table that simply and clearly shows what a positive expectation is. According to the table, if only 20% of the total number of your trades are profitable, then the RISK ratio is/The PROFIT should be 5:1 and higher. If there are 50% profitable trades, then the ratio may be 2:1, and if there are 60% profitable trades, then the stop loss may be even greater than the take profit. Therefore, the main rule that a trader should follow is that the smaller the take profit, the higher the win rate should be. The difference in the markets It is worth remembering that 80% of the books where these tips on the ratio of risk to profit come from are written about the stock market, which is more inclined to rise than to fall. On the other hand, currency pairs tend to average. This is the main difference: in the forex market, if the stop is large, you can sit out the fluctuations, if the take is large– you can not wait for it to work out. You need to understand when and where to use large take profit and stop loss based on the strategy and the market. And not because you multiplied the stop loss by 10. Conclusions The conclusion may be unexpected for you, but the profit/risk ratio is not an unbreakable rule. Always adhere to the rule of positive expectation. Set a stop loss and take profit based on the strategy and the market in which you are trading.
Education
by Lingrid
13
TRIPLE TOPHello everyone Today I want to share with you a figure of technical analysis called the TRIPLE TOP. This figure occurs quite often and brings excellent profit. What does it look like? The figure looks like three maxima, approximately at the same level. These peaks are formed because the buyers' forces are drying up and with each new peak, the bears are getting stronger. Very often, the third peak will be higher than the previous two - this is the last gasp of buyers, before capitulation. How to trade? The main criterion is the formation of three peaks, after a strong uptrend. After that, the price makes the last spurt (the third peak) and breaks through the support. This breakout is the first possible entry point . Often you will observe how the price makes a retest of the level, after which it turns down. The second possible entry point will be this retest of the level. To calculate the potential profit point , you need to measure the height from the minimum to the maximum of the vertices. This value, plotted below the breakout, will be a potential profit point. The stop loss is set above the maximum of the vertices. Conclusion The figure is very profitable and often found. In addition, you can find a triple bottom on the chart, which trades in the same way as a triple top, only in the opposite direction. Very often, after a triple top, a strong downtrend begins and holding a part of the position can bring big profits. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
16
Bullish trend phases1) Use higher timeframes to determine the trend. Look for the entry point on smaller timeframes. 3) "Zone shift" is a price movement designed to accumulate and preserve volumes. In this phase, it is worth looking for entry points. 4) "Stop hunting" usually consists of three movements that occur in a short time. The minimum of the day serves as a signal point about where the reversal will occur. 2) The second zone shift serves as a profit-taking point. 5) The penetration of each accumulation zone is a potential entry point. 6) "Market maker spread" - the maximum and minimum of the initial channel. Usually this value is 25-50 points. ------------------------- Additionally: The time of termination of consolidation depends on the volume of HOD/LOD captured during the hunt. It's hard to determine. We don't know how long it will take a major player to take a position, and we don't know how much volume he needs. A) From time to time, the movement will be without consolidation, since the accumulated volume is too large, so a V-shaped bottom may form. B) The accumulation of volume always takes different time, so sometimes it will take more time to accumulate than usual. C) Accumulation may take longer, which is why a wide zone is formed, after which movement to the second stop (accumulation zone) will begin
Education
by DeGRAM
3
Bites Of Trading Knowledge For New TOP Traders #7 (short read)Bites Of Trading Knowledge For New TOP Traders #7 --------------------------------------------------------------- What is Bitcoin and from where did it originate? – Bitcoin is a digital form of a medium of exchange with no central bank control which issues fiat currencies. Instead, the financial system involving bitcoin is managed by thousands of computers distributed around the world, a decentralised ledger, where anyone can participate by downloading open-source software and connecting to the ecosystem. The invention and implementation of bitcoin is credited to the person or persons known Satoshi Nakamoto in 2009. The white paper “Bitcoin: A Peer-to-Peer Electronic Cash System“ states that bitcoin was to be, “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” What is the Blockchain? – The Blockchain is a decentralised ledger that is append-only meaning that data can only be added to it. Once information is added, it is extremely difficult to modify or delete it. The Blockchain enforces this by including a pointer to the previous Block in every subsequent Block. The pointer is a Hash of the previous block. Hashing involves passing data through a one-way function to produce a unique Fingerprint of the input. If the input is modified even slightly, the Fingerprint will look completely different. Since the Blocks are linked in a Chain, there is no way for someone to edit an old entry without invalidating the Blocks that follow, allowing a secure structure. What is Mining? – Mining is the process in which transactions between users are verified and added to the decentralised ledger. The process of mining bitcoin is responsible for introducing new coins into the existing circulating supply and is one of the key elements that allows bitcoin to work within the peer-to-peer decentralized network, without the need for a third party central authority. What Is a Blockchain Consensus Algorithm? – A consensus algorithm is a mechanism that allows users or machines to coordinate the agreement of what is a valid block in the Blockchain in a distributed setting. It needs to ensure that all participants in the system can agree on a single source of truth. Types of consensus algorithms include Proof of Work (PoW) and Proof of Stake (PoS). What is Proof of Work? – Proof of Work (PoW) is a mechanism for preventing the same bitcoin funds from being spent more than once. Proof of Work consists of a consensus algorithm which is a protocol that sets out the conditions for what makes a block in the Blockchain valid. It ensures the security and integrity of bitcoin’s distributed ledger. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Diversification: Portfolio Focused on Pairs Trading Strategies – Many individual investors use a pairs trade as a trading strategy that involves matching a long position with a short position in two markets with a high correlation. In currency trading, the most economically and politically stable and liquid currencies are commonly the focus of market participants as the focus for currency pairs trading like these eight most traded currencies: U.S. dollar (USD), euro (EUR), Japanese yen (JPY), British pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), Swiss franc (CHF), and Chinese Yuan (CNY). If an individual investor is pairing EUR with CHF as part of their pairs trading portfolio, they could use common technical indicators like moving averages as part of their analysis in forming a trade decision. For example, EURUSD on 4th May had crossed the moving average, but USDCHF had not shown similar price action, which could indicate the potential for follow through failure in the EURUSD to the downside. Contrast this with the 16th June where both EURUSD and USDCHF had both crossed the moving average and had clear follow through subsequently. Investors would need to analyze their expected returns with and without currency eThe investor could alternatively consider trading the Mini US Dollar Index ® Futures given that the analysis could point to an opportunity being in the U.S. Dollar, which had been removed as a factor in this pairing. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
BITCOIN - Wyckoff Accumulation TheoryWhat is Wyckoff Accumulation? Developed by Richard Wyckoff in the 1930s, the Wyckoff Schematic helps traders to study the supply and demand of an underlying asset. This is possible through the analysis of an asset's footprint illustrating the control of smart money. Such players take action in these ranges to build orders before making the price move. In our example, we will use the Wyckoff Accumulation to illustrate Bitcoin's current price action. What is clear during the Accumulation phase is that while the price remains flat in a macro-scale, it shows strength for buyers. Understanding such phase and patterns of the market allows investors to find a suitable buying position. To apply the Wyckoff Accumulation theory properly, there are a few rules to follow: 1. Use daily price charts for a more accurate interpretation of strong support and resistance. 2. Identify market direction based on supply and demand. To simply understand: - When Demand is superior to Supply: Price moves up - When Demand is inferior to Supply: Price moves down - When Demand is equal to Supply: No change in price Bitcoin has been in a downtrend for the past weeks and many of the market participants believe that it is oversold. KDJ, RSI, MACD in the daily are showing signs of a potential reversal. At the time of writing, Bitcoin is at a fear and greed index of 10. Therefore, we can confidently say that while price is stagnant for Bitcoin, price is expected to move up once demand exceeds supply. 3. Understand the significance of cause and effect. In this case, Wyckoff differentiates accumulation and distribution: - Accumulation (cause) leads to an uptrend (effect) - Distribution (cause) leads to a downtrend (effect) 4. Study the importance of volume. Trading volume shows sentiment, the current trend has a greater chance of continuing. On the other hand, if the volume doesn’t support the price action, it will create a divergence in the price, leading to a stop or change in direction. In our case, all price action is supported by volume. But it is decreasing, therefore suggesting a potential reversal. Phases to identify in a Wyckoff Accumulation: PS — Preliminary Support: The preliminary support appears after a long bearish trend. SC — Selling Climax: The selling climax is described as a huge sell off, breaking the PS. Price may close far from the low with a long-wicked candle. AR — The Automatic Rally: The price reverses and recovers from the selling pressure. ST — The Secondary Test: After the AR, the price will go lower again but controlled. SPRING — The Spring: In this phase, the price will perform a hard test of recent lows that will mislead traders. In this moment, it is believed that we are in this moment of the Wyckoff Accumulation! To confirm this movement, Bitcoin requires a test and make a higher low! AS — Accumulation Schematic: The last stage of the accumulation cycle. The price should break out from the range with an impulsive bullish pressure and confirm the upcoming bullish trend. Hope this short tutorial is helpful to navigate the cryptoverse in a moment where the market is in extreme fear! Trade safely and do drop a like if you enjoyed this article!
BITSTAMP:BTCUSDEducation
by aloo2k
5
FLAG and PENNANTHello everyone! I want to tell you a little about such figures as Flag and Pennant. These patterns are quite common on the chart, so every trader should know how to trade them. What does the flag look like? After a strong movement (flagpole), the price begins to correct in the form of a rectangle, which corrects against the previous trend (flag). What does a pennant look like? Just like a flag, a pennant appears after a strong trend. After that, the correction begins in the form of a narrowing triangle. How to trade the flag? A bullish flag is a flag that has formed after a strong upward movement. The entry point for a bullish flag will be a breakout and anchoring the resistance of the rectangle (flag). The stop is placed at the low of the flag. To calculate a possible profit target, it is worth measuring the flagpole of the flag - this value superimposed above the breakout will be the target for your profit. How to trade a pennant? A bullish pennant forms after a strong bullish move. To find an entry point, you need to wait until the resistance of the triangle is broken and the price fixes above the level. Stop loss is usually placed below the nearest minimum. To get an approximate profit target, you need to measure the length of the bullish move in front of the triangle - this value will be your target above the break. Conclusion These patterns are very common and give an excellent risk / reward ratio, usually greater than 1: 3. With correct trading, the profit value will be even higher. Do not forget that these shapes are continuation shapes. And don't forget to set your stop loss. Good luck 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 👩
Education
by Lingrid
14
FIGURE OF TECHNICAL ANALYSIS "DIAMOND"Today we will talk about the figure of technical analysis "Diamond" Diamond is not so common, so the figure is not so popular with traders. But when the figure appears on the chart, you will get a great opportunity to earn big profits. Identification The diamond appears after a strong upward movement, which stops at some point and an expanding triangle begins to form on the chart. After that, the expansion stops and the reverse process begins – a narrowing of the price, so the second part of the diamond is formed. The narrowing leads to the formation of a second triangle, from which the price breaks down, creating a strong downtrend. As you understand, a diamond is a reversal figure. In addition to the reversal at the peak, the diamond may appear at the bottom, starting a new bullish trend. The same rules apply for the diamond at the bottom of the trend as for the diamond at the top of the trend. Trading After you have found a diamond on the chart, you should wait for the breakout . The breakout point serves as the entry point. As soon as the price breaks out of the second part of the diamond, you can open a position. The stop loss is usually set above the last maximum, outside the triangle. To calculate the potential profit , you need to measure the height of the diamond - 60-80% of this value will be your goal. You should understand that this is only the first profit goal, since the price very often goes even further, after the diamond. Therefore, at this point, you can use a strategy with closing part of the profit. For conservative traders, there is a second entry point – it will be the price movement for the minimum of a diamond. Also, for such traders, it is possible to set a stop loss beyond the maximum of the diamond. Conclusion The figure is suitable for medium-term traders who hold positions for several days. It is the medium-term diamond that is potentially able to bring big profits. In addition, it is worth remembering a couple of rules: It is not worth trading inside a diamond; And don't forget to set a stop! Be careful and don't miss your diamond!
Education
by DeGRAM
3