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Understanding The Basics Of AI/Inference Engine ConstructionRecently, there has been a lot of discussion related to my SPY Cycle Patterns and how they work. In short, without disclosing proprietary code/quants, I built an inference engine based on Fibonacci, GANN, and Tesla theories. Part of this inference engine is to identify the highest probable outcome related to the patterns. This is not rocket-science. This is the same process your brain does when determining when and what to trade. The only difference is I'm doing a bunch of proprietary calculations/quants related to data and price theory in the background, then the inference engine determines the best, most likely outcome. Take a few minutes to watch this video and try to understand the difference between static and dynamic modeling. Again, my objective is to help as many traders as possible. My Plan Your Trade videos are my opinions based on my skills, knowledge, and proprietary modeling systems/tools. None of my tools are 100% accurate all the time - nothing is. But, I do believe the quality of information and instructional information I provide is invaluable to most traders. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
NASDAQ:QQQEducation
by BradMatheny
2
This Simple Strategy Could Make You a Fortune in the Gold Marketprice action of Gold Spot (XAU/USD) in relation to the trendlines and patterns indicated. Chart Analysis 1. Weekly Flag Trendline: - The first chart shows a trendline forming a "flag" pattern on a higher time frame (possibly weekly or daily). This flag appears to be a bullish continuation pattern, indicating that after the consolidation within the flag, the price might continue in the direction of the prior trend, which seems to be up. 2. Price Action Inside the Flag: - Within the flag, there is a period of consolidation marked by the parallel trendlines. The price has been respecting these lines, creating higher lows and lower highs, indicating indecision or preparation for a breakout. 3. Potential Breakout Zones: - Key breakout zones are marked by the upper resistance of the flag pattern around the 2,530 level and the lower support trendline of the flag around the 2,470 level. A breakout above the upper resistance could signal a continuation of the prior uptrend, while a break below the lower support could indicate a reversal or deeper pullback. 4. Smaller Patterns: - On the second chart (1-hour time frame), there's a more detailed view of recent price action with a potential bearish flag or pennant forming, suggesting a temporary pullback or consolidation within the larger flag. This smaller pattern appears to be within a trading range bounded by the horizontal support and resistance levels. 5. Key Support and Resistance Levels: - The charts show horizontal support around the 2,433.301 level, which aligns with a historical low that could serve as a significant support level. Similarly, the resistance level is around 2,530, where the price has repeatedly failed to break above. 6. Current Market Context: - The price is currently hovering around 2,497, near the middle of the trading range, suggesting indecision. This midpoint could be a neutral zone where the price could move in either direction based on upcoming market momentum or news. Trading Strategy and Considerations - Entry Points: - If considering a bullish scenario, a long entry could be planned near the lower support line of the flag, around 2,470, with a stop loss slightly below the flag's support to manage risk. A breakout above the 2,530 resistance could also provide a good entry point for a continuation of the uptrend. - For a bearish scenario, a short entry could be considered if the price breaks below the 2,470 support level, confirming a breakdown from the flag pattern. - Risk Management: - The proximity of the price to both upper and lower boundaries of the flag pattern provides clear levels for stop placement. This helps in managing risk effectively, keeping losses contained if the trade goes against the initial bias. - Monitoring Price Action: - Watch for potential breakouts from the smaller patterns within the flag, as these could provide early signals of the larger move's direction. It would also be essential to keep an eye on volume changes, as increased volume could confirm the validity of a breakout or breakdown. By aligning your trades with these patterns and key levels, you can take advantage of the potential setups provided by the price action within these consolidating formations. Ensure to adapt to new market conditions and stay disciplined in executing your trading plan.
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OANDA:XAUUSDEducation
by Adlercon333
2
Cancellation of “Head-and-Shoulders” Pattern. Bears trapThe "Head-and-Shoulders" (H&S) pattern is considered a powerful trend reversal indicator. However, it can also become very costly for new traders. Yesterday, the S&P provided a great example of H&S cancellation. Traders who entered short on the break-out of the shoulders line (and Monday's low) incurred losses after the price returned to the previous day's range and rallied all the way up. Such scenarios happen more often than you might think. To avoid being caught in such traps, it is important to consider two things: 1. Higher Level Context : In this example, the H&S pattern formed on the hourly time frame. But if we zoom out, we'll see that on the weekly chart, the price is in a strong uptrend, currently making new historical highs. This is a very bullish context, with buyers having full control over the price. 2. Price Behavior on the Break-out : Upon confirmation of a reversal pattern, you should expect sellers to jump in and drive the price down as fast as possible. It is "abnormal" to see the price returning to the previous range and gaining acceptance. This is a trigger that something is not right. Some people will add volume analysis on the break-out, but I’m personally not a fan of it, especially for SPY.
AMEX:SPYEducation
by hermes_trisme
Why You Should Avoid Trading Standard Patterns: Deeper AnalysisTrading based on technical analysis is a popular way for traders to identify market opportunities. One of the most common methods of technical analysis is the use of chart patterns. These patterns are recognizable formations created by price movements on a chart. Traders use these patterns to identify potential areas of support and resistance, as well as trend reversals. However, there are several reasons why you should avoid trading standard patterns: 1. Widespread Awareness and Anticipation: Standard patterns are well-known and widely anticipated by market participants. This means that they are already priced in, making trading them a low-probability strategy. 2. Potential for False Signals: The formation of a pattern on a chart does not guarantee the expected outcome. In fact, standard patterns can often lead to false breakouts and failed trades. 3. Difficulty in Trading Effectively: Trading standard patterns effectively requires a high level of skill and experience. Without a deep understanding of market structure and price behavior, traders can easily fall victim to false signals and whipsaws. Advantages of Trading Liquidity Patterns: Liquidity patterns offer a more effective and reliable alternative to standard patterns. These patterns are based on the concept of market liquidity, which refers to the ease with which an asset can be bought or sold without impacting its price. By identifying areas of high and low liquidity, traders can gain an edge in the market. In-depth Analysis of Popular Patterns: 1. Double Bottom: The classic double bottom pattern is a bullish reversal pattern that forms when the price of an asset makes two consecutive lows at the same level, followed by a rally. However, the standard double bottom pattern has a significant drawback: it leaves liquidity below the lows, which can lead to false breakouts and failed trades. A more effective way to trade this pattern is to look for a lower low. This occurs when the price makes a new low below the previous two lows. This indicates that the market is absorbing all the sell liquidity and is ready to move higher. 2. Triangle: A triangle is a consolidation pattern that forms when the price of an asset ranges between two converging trendlines. Traders often look for breakout trades in triangles, but this can be risky. False breakouts are a common occurrence in triangle patterns. This is because market makers often manipulate the price to induce traders to break out of the pattern, only to reverse the price and trap them in losing trades. A more effective way to trade triangles is to look for liquidity grabs. This occurs when the price moves outside of the triangle, only to quickly return back inside. This indicates that market makers are taking liquidity from the market and are preparing to move the price in the opposite direction. Practical Tips for Trading Liquidity Patterns: Always trade with the trend. Liquidity patterns are most effective when they are traded in the direction of the overall trend. Use stop-loss orders to protect your downside. This will help to limit your losses if the trade does not go your way. Be patient and wait for the right setup. Don't force trades and only take those that meet your criteria. Additional Considerations: Market context: It is important to consider the overall market context when trading liquidity patterns. For example, patterns are more likely to be successful in trending markets than in range-bound markets. Risk management : Always use sound risk management principles when trading, regardless of the pattern you are using. This includes using stop-loss orders and position sizing appropriately. False signals: It is important to be aware of the potential for false signals when trading liquidity patterns. Not all patterns will lead to successful trades, and it is important to be prepared for losses.
Education
by Yaroslav_Krasko
3
THE METHOD : A RELIABLE, REPEATING, CONSISTENT CRYPTO PATTERN I have an archive of screenshots of this, going back years. After my crypto baptism of fire, using all the money I'd earned from my first international art sale, knowing nothing and choosing leveraged trading for it's potential returns, I initially set out to find the perfect pattern that I thought I sensed when I looked at a financial chart for the first time.. And yes.. To recover my initiation fees also.. I lasted all of 4 hours.. But I was hooked.. This is my ongoing account of what I found and how it all fits together to explain visually and without any "it kinda works" theories. It's clear as day, and it blows my mind every time I see it. Will keep posting new ones as they occur. Please note that I'm not on a pattern hunt. I'm only tracking them on the coins I'm interested in at the time.. Currently: BIGTOE
Education
by Rebelmedia
What do you do when your trading plan fails? Yesterday I wrote about a beautiful chart pattern that was forming on the Bitcoin daily time frame that ended up failing not long after I wrote the post. That kind of thing will shake a trader to their core, especially if they thought it was going to play out, but ended up losing their shirt. This is why it is important to set stop losses, so that if the trade does go the other way, you will be out of the trade before it gets too bad. This is simply called risk management, and is one of the biggest things that any trader, especially new traders need to master. Trading is a business of statistics and probabilities. Just because something has worked for you in the past, doesn't mean it is going to work for you every time. So when something like a bullish pattern that you have traded many times fails, you have to reassess and move on to the next trade. Out of 100 trades, that pattern may only work 6 or 7 times which gives you a 60-70% chance of it working in your favor. That's how it works, nothing is ever 100% in this game. So you always have to be ready for things to not work out the way you think they should. If they don't work out, don't freak out! Just learn from your mistakes, readjust your plan, and move along to the next trade! Hopefully things like this will help you better understand the importance of a good risk management plan. Be safe out there everyone and trade logically!
COINBASE:BTCUSDEducation
by thelogicaldude
How to trade Double Tops to the Short Side using 1 hour barsI always ask myself: What's my favorite chart pattern for finding high probability entries? I look at my stats, I look at my various strategies, and I always find I like one type of trade best: Trend Continuation trades using double tops for shorts and double bottoms for longs. The strategy is simple: Using 1 hour wickless bars, (I'll show you how in the video), identify a trending stock by seeing where price is clearly up or down, then identify a double top or double bottom occurring along the trend. When you have two confirmed tops or bottoms, get short or long, as the case may be. The patterns really do come in all shapes and sizes, but they are best when they occur along a resistance line, be it VWAP, a 20 EMA, or some other. They also can be confirmed by looking at your RSI chart which will indicate clearly two v bottoms for a long entry or two peaks for a shorty entry. Seeing where on the RSI chart these double patterns are forming is also instructive. Longs should show up on the RSI chart as a pair of v bottoms occuring at the bottom of the upper half of the chart, above the 50% line. Shorts should show up on the RSI chart as a pair of peaks at the top of lower half of the chart, just below the 50% line. Because you're using 1 hour bars to find entries, it naturally stands to reason that your setups will trigger at the top of the hour, when there is typically a burst of volume. If your analysis is correct, that volume burst will push your trade in the proper direction within seconds, so if you like instant gratificatrion like I do, you'll enjoy that aspect of trading this way.
CAPITALCOM:US100Education
by BlackCar
What Traders and Detectives Have in Common 📊🕵️‍♀️In this article, I want to talk about the interesting similarities between trading and detective work. Like detectives solve mysteries to find the truth, traders explore the market to understand patterns and make smart decisions. 1️⃣ Gathering Clues: Both trading and detective work rely on the acquisition of timely and relevant information. Traders stay informed about market news, economic indicators, and patterns, just as detectives gather clues from witnesses, documents, and other sources. In both cases, the quality of information directly impacts decision-making. 2️⃣ Risk Assessment: Detectives must carefully assess risks and probabilities to navigate the unknown. Similarly, traders must evaluate market risks, weighing potential rewards against potential losses. Just as a detective gauges the likelihood of various scenarios, a trader assesses market conditions to make calculated decisions that align with their risk tolerance. 3️⃣ Patience and Persistence: Success in both trading and detective work demands patience and persistence. Detectives may spend long hours sifting through evidence, and traders may patiently wait for the right market conditions. Like a detective unraveling a case, a trader must persistently analyze data and adapt strategies to changing market dynamics. 🔎 In essence, trading is a financial investigation, where observation, critical analysis, and connecting the dots play a crucial role. As we navigate the market's complexities, let's embrace the spirit of a detective, ever vigilant and ready to uncover hidden truths that guide our decisions. Wishing you successful trades and discoveries in your financial journey. Did I forget any similarities? What are your thoughts? Also, what would you like me to compare traders to next? 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Richard Nasr
Education
by TheSignalyst
32
Three White SoldiersGreetings, traders! Today, let’s dive into a powerful candlestick pattern: the Three White Soldiers. This pattern, often regarded as a bullish signal, can provide valuable insights. Understanding the Three White Soldiers Pattern: The Three White Soldiers pattern is identified by three consecutive bullish candles, symbolizing a robust influx of buying pressure. When these candles appear in a sequence, it suggests a shift in market sentiment from bearish to bullish. Key Characteristics: Bullish Momentum: The pattern signifies a strong uptrend, indicating a potential continuation of the existing market trend. Candlestick Size: Pay attention to the size of the candles. In this pattern, large-bodied candles with minimal wicks reflect substantial buying activity. This emphasizes the dominance of buyers in the market. Volume Confirmation: Volume indicators on charting platforms can validate the pattern. An uptick in volume during the formation of the Three White Soldiers further strengthens its significance. Trading Strategies with the Three White Soldiers Pattern: Confirmation with Volume: Ensure the pattern is supported by increased trading volume, affirming the authenticity of the bullish move. Combine with Other Indicators: Enhance your trading strategy by integrating the Three White Soldiers pattern with trend lines, Fibonacci retracement levels, or other technical indicators. This synergy can provide a more comprehensive view of the market. Wait for Confirmation: Patience is key. Wait for the bullish candles to close before considering the pattern confirmed. This approach reduces the risk of false signals. Consider Timeframes: Analyze the pattern across multiple timeframes. A Three White Soldiers formation on higher timeframes (such as daily or weekly charts) often indicates stronger bullish potential. Risk Management and Trade Execution: Set Stop-Loss: Establish stop-loss below first candlestick of the Three White Soldiers. Diversify Your Trades: Avoid over-concentration in a single asset. Diversifying your trades across different instruments can mitigate risks associated with individual market volatility. By combining this pattern with meticulous analysis, strategic planning, and risk management, traders can enhance their overall trading prowess. Happy trading, and may the markets be ever in your favour!
Education
by Vestinda
4 Classic Bullish Patterns EVERY TRADER Must Know In the today's post, we will discuss accurate bullish price action patterns that you can apply for trading any financial instrument. 1️⃣Bullish Flag Pattern Such a pattern appears in a bullish trend after a completion of the bullish impulse. The flag represents a falling parallel channel. The market corrects itself within. Bullish breakout of the resistance line of the channel is a strong bullish signal that can be applied for buying the market. Best entries should be placed immediately after a breakout or on a retest. Safest stop loss is below the lows of the flag. Target - the next key resistance. Here is the example of a bullish flag pattern that was formed on Gold on a 1H time frame. As you can see, after the breakout of the resistance of the flag, a strong bullish rally initiated. 2️⃣Ascending Triangle Such a pattern forms in a bullish trend on the top of the bullish impulse. The market starts consolidation, respecting the same highs and setting higher lows simultaneously. The equal highs compose a horizontal resistance that is called the neckline. Its breakout is an important sign of strength of the buyers. Buy the market aggressively after a violation, or set a buy limit order on a retest. Stop loss should lie at least below the last higher low within a triangle. Target - the next strong resistance. Take a look at that ascending triangle formation on EURUSD. Bullish breakout of its neckline was a perfect bullish signal. 3️⃣Falling Wedge That formation is very similar to a bullish flag pattern. The only difference is that the price action within the wedge is contracting so that the trend line of the wedge are getting closer to each other with time. Your signal to buy is a bullish breakout of the resistance of the wedge. Stop loss is strictly below its lows. Target - the next key resistance. GBPUSD formed a falling wedge on a 4H time frame, trading in a strong bullish trend. You can behold how nicely the price bounced after a breakout of its upper boundary. 4️⃣Horizontal Range Similarly to the ascending triangle, the horizontal range forms at the top of a bullish impulse in a bullish trend. The price starts consolidation, then, setting equal highs and equal lows that compose a horizontal channel. Breakout of the resistance of the range is a strong trend-following signal. Buy the market aggressively after a breakout or conservatively on a retest. Stop loss will lie below the lows of the range. Target - the next strong resistance. Dollar Index formed a horizontal range, trading in a strong bullish trend. Breakout of the resistance of the range triggered a bullish rally. The best part about these patterns is that they can be applied on any time frame. Whether you are a scalper, day trader or swing trader, you can rely on these formations and make consistent profits.
FOREXCOM:XAUUSDEducation
by VasilyTrader
10
Mastering Engulfing Candle Trading 📚Engulfing candles are an essential feature of technical analysis in forex trading. An engulfing pattern happens when a larger candle engulfs the entire body of the previous candle, signaling a potential reversal of the current trend. Engulfing candles, which can be either bullish or bearish, are trusted by many traders for their reliability in predicting future price movements. However, to become an expert in engulfing candle trading, one needs to learn how to identify the best ones and leverage their body size effectively. In this article, we will look at the crucial steps to master this trading strategy. 🔎Identifying the Best Engulfing Candles One of the key aspects of trading using engulfing candles is knowing how to spot the strongest signals. The best engulfing candles should be resistant to the noise and inconsistent movements that can often occur in the forex market. The first step towards identifying the best engulfing candles is to focus on the size of the preceding candles. Candles with small bodies and long wicks produce too much noise and can lead to false signals. Instead, seek engulfing candles that develop after a significant price move, ideally with a larger body and shorter wick. Higher timeframe charts - like the 4-hour and daily - offer better accuracy in identifying reliable engulfing patterns. 💪Leveraging Body Size for More Efficient Trading The size of an engulfing candle’s body plays a crucial role in determining the strength of a trend. A larger body indicates more significant price movement and more active participation from traders. The size of the engulfing candle can also help ascertain the potential strength of the new trend. Bigger body sizes usually signal a stronger trend, whereas smaller bodies usually represent a more moderate price move. Traders can leverage body size to adjust their trading strategy – for instance, employing wider stop losses for more significant movements or using tighter take profit targets for moderate trends. I have collected couple of good engulfing candles that we were trading with our team. Take a closer look at their body sizes and the previous candles. Such candles alone can provide fantastics trading opportunities. 🔔Conclusion Engulfing candles are an essential tool in forex trading, and their size can significantly help traders identify the best entry signals. Traders who master engulfing candle trading can develop a more accurate technical analysis strategy that yields high returns. By continually analyzing candlestick patterns and using other technical analysis tools, traders can build robust investment strategies that enable them to become profitable forex traders. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
9
✅ 8 important patterns! How to trade with them? ⭐Bearish Symmetrical Triangle - Bearish + Bullish trendline - Take price at lenght of triangle height - Stop loss above last high ⭐Symmetrical Triangle - Bearish + Bullish trendline - Take price at lenght of triangle height - Stop loss below last low ⭐Bearish Flag - flag pole - Bearish channel in bullish trend - Take price at lenght of - flag pole - Stop loss above last high ⭐Bullish Flag - Bearish channel in bullish - Take price at lenght of flag pole - Stop loss below last low ⭐ Risisng Wedge - Two bullish trendlines - Stop loss above last high - Take Price at Wedge low ⭐Falling Wedge - Entry after breakout confirmation - Take Profit at the Wedge high - Stop loss below last ⭐Descending Triangle - Support + bearish trendline - Stop loss above last high - Take Price at triangle height ⭐Ascending Triangle - Take Profit at triangle height - Stop loss below last low ✅If this post was useful for you, like it ❤️ and if you think it is useful for your friends, be sure to send it to them. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 🌍Thank you for seeing idea . Have a nice day and Good luck.
Education
by CobraVanguard
4
❗️USE STOP LOSS AND BECOME A BETTER TRADER❗️ 🟩STOP LOSS IS:A stop-loss order is an order that automatically closes a losing position once the price hits the pre-specified level. We usually calculate SL in pips, but there can be many ways to set it. It can be time based, percentage based or volatility based. For some investors SL is some piece of critical news, which alters their perception of the value of the asset. Regular stop losses can be many and varied too, for example trailing stop. Also, we sometimes move SL to entry after the half close to protect the gains and make our position risk free.However, all situations I listed above have one thing in common and it is the fact that the SL was used! 🟥Honestly, I am amused by the massive number of people who send me screenshots of their MT4 with several open trades on the same pair all of them without SL and with 90% of account lost. And they ask me what should they do? A great illustration of what is would take to recover from such a loss, is on the drawing above. With the 90% loss, you have only one tenth of the original account left. That means you need to make ten times more money than you have left just to recover your losses. 999% gain needs to be made just to have your old account back. It took you a day to blow it, and might take months to recover the losses. This is the brutality of the trading. The market is unforgiving and will punish you if you treat is without respect. If you are careless or if you make mistakes. The market always comes back to collect, waiting for the moment you drop your guard and relax for a second. Please always use Stop Loss, because, as it happens, it stops you from losing too much! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
❗️5 CRUCIAL TRADING CONCEPTS❗️ ✅Forex trading can be an exciting and lucrative way to make money. However, it can be very challenging, even for seasoned traders. To be successful, it's essential to understand some essential concepts that can help you navigate the market and make more informed decisions. ✅One crucial concept to keep in mind is the impact of position sizing on trading success. Position sizing refers to the number of units you buy or sell when entering a trade. A lot of traders overlook the importance of proper position sizing, which can lead to significant losses. To increase the chances of success, traders should aim to limit their risk per trade to less than 2% of their account balance. ✅Another idea that can help traders is to focus on the outcome of their trades rather than their hit rate. Many traders believe that having a high hit rate is critical to success; this is not true. While accuracy is essential, profitability ultimately depends on the amount of money you make versus what you lose on each trade. Therefore, it's more crucial to focus on a trading strategy that controls losses and maximizes profits. ✅The third concept that successful traders implement is simplicity. Simple and robust systems tend to perform better than complex strategies. Overcomplicating a trading plan can lead to confusion and can even trigger emotional responses that may drive you to make impulsive decisions during trading. ✅This brings us to the fourth critical concept, which is psychology. Trading is 80% psychology, and the remaining 20% is skills and knowledge. A trader with the right mindset is much more likely to succeed than one who lacks the discipline to adhere to a trading plan. ✅Finally, traders who focus on learning one pattern or strategy tend to be more profitable than those who search for fancy strategies or systems. As the trading market constantly evolves, traders must always stay on their toes and keep learning. However, instead of trying to master everything, it is helpful to focus on a single pattern or strategy until it becomes your specialty. ✅In conclusion, Forex trading is a complex practice that requires patience, discipline, and the ability to adapt. With these five principles in mind, traders can become more successful, minimize risk, and increase their profits. By keeping things simple, controlling emotions, and making smart decisions about position sizing, traders can maximize their potential and achieve their financial goals. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
10
What is the difference between a pro-trader and a beginner? The difference between pro traders and new traders is how they approach trading. Pros commit to trading. They do not see it as an opportunity, they see trading as a form of work. They are not looking for the best trade every time, instead, pros are looking for many trades because they see loss and gain as a fundamental part of how trading works. It would not be too absurd to think of pros as survivors. Pros have realized losses and gains over time, injecting capital only to lose some more, yet they have accepted that that is the nature of trading. There are both good and bad trades that range in how profitable or unprofitable they may be. Pros respect the markets, they are not trying to prove that they are right -they just follow the flow of the market. Lastly, pros understand that a lot of things cost money in the day trading world; however, they are willing to spend it because they like to have the tools that will lead them to success. New traders differ from pros in plenty of ways. For starters, they are looking for that original piece of validation to continue their day trading ventures. This is why new traders tend to look for only the best trades in the markets they are monitoring. They instinctively want to make money right away and gain some working capital to buffer any future loss. Furthermore, new traders suffer a lot when they fail because they take it personally and naturally reject their losses. This behavior eventually leads to them quitting altogether which ties into their commitment to trading as a whole. New traders (unlike pro traders) do not like to commit; for them trading is an opportunity to get as much money as possible from their trades. Furthermore, they are looking to minimize their costs by acquiring tips, shortcuts and various other content for free. As a result, new traders often sprinting to make a quick buck while if they simply took the time to slow down and educate themselves they will make more successful trades in the long run. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Wealth Unleashed: Wedge Pattern Power - Hidden Gem Revealed!Introduction : Are you looking to skyrocket your trading profits? Look no further! Today, we will uncover the hidden gem of trading patterns: the Wedge Pattern. This powerful tool has the potential to transform your trading strategy and help you achieve financial success. Let's dive into the world of wedge patterns and explore how you can capitalize on their power. What are Wedge Patterns? Wedge patterns are popular among traders due to their high probability of forecasting trend reversals. These patterns appear when the price of an asset consolidates between converging support and resistance lines. There are two primary types of wedge patterns: the rising wedge and the falling wedge. Rising Wedge: In an upward trend, the rising wedge is considered a bearish pattern. It forms when the price consolidates between an upward-sloping support line and an upward-sloping resistance line that are converging. As the price approaches the apex of the wedge, the upward momentum weakens, signaling a potential trend reversal to the downside. Falling Wedge: Contrary to the rising wedge, the falling wedge is a bullish pattern. It appears in a downward trend when the price consolidates between a downward-sloping support line and a downward-sloping resistance line that are converging. As the price nears the apex of the wedge, the downward momentum loses strength, indicating a possible trend reversal to the upside. Trading Strategies: To capitalize on the power of wedge patterns, follow these steps: ✅Identify the pattern: Observe the chart for converging support and resistance lines to spot a rising or falling wedge pattern. ✅Confirmation: Wait for a breakout from the wedge pattern, either above the resistance line (for falling wedges) or below the support line (for rising wedges). ✅Entry point: Open a long position after a breakout above the resistance line in a falling wedge, or a short position after a breakout below the support line in a rising wedge. ✅Stop-loss and take-profit: Set your stop-loss order below the breakout level (for falling wedges) or above the breakout level (for rising wedges). Establish your take-profit target at a level that aligns with your risk-reward ratio and trading plan. Conclusion: The wedge pattern is a hidden gem that can potentially boost your trading profits when used correctly. By mastering the art of identifying and trading wedge patterns, you can strengthen your technical analysis skills and increase your chances of success in the market. Remember, no single tool guarantees success, so always use additional technical indicators and maintain a disciplined approach to risk management. Happy trading!
Education
by Yaroslav_Krasko
5 IMPOTANT TYPES OF ELLIOTT WAVE PATTERNS!Zigzag patterns are sharp declines in a bull rally or advances in a bear rally that substantially correct the price level of the previous Impulse patterns. Zigzags may also be formed in a combination which is known as the double or triple zigzag, where two or three zigzags are connected by another corrective wave between them.‘ 4. Flat: The flat is another three-wave correction in which the sub-waves are formed in a 3-3-5 structure which is labelled as an A-B-C structure. In the flat structure, both Waves A and B are corrective and Wave C is motive having 5 sub-waves. This pattern is known as the flat as it moves sideways. Generally, within an impulse wave, the fourth wave has a flat whereas the second wave rarely does. On the technical charts, most flats usually don’t look clear as there are variations on this structure. A flat may have wave B terminate beyond the beginning of the A wave and the C wave may terminate beyond the start of the B wave. This type of flat is known as the expanded flat. The expanded flat is more common in markets as compared to the normal flats as discussed above. 5. Triangle: The triangle is a pattern consisting of five sub-waves in the form of a 3-3-3-3-3 structure, that is labelled as A-B-C-D-E. This corrective pattern shows a balance of forces and it travels sideways. The triangle can either be expanding, in which each of the following sub-waves gets bigger or contracting, that is in the form of a wedge. The triangles can also be categorized as symmetrical, descending or ascending, based on whether they are pointing sideways, up with a flat top or down with a flat bottom. The sub-waves can be formed in complex combinations. It may theoretically look easy to spot a triangle, but it may take a little practice to identify them in the market. Bottomline: As we have discussed above Elliott wave theory is open to interpretations in different ways by different traders, so are their patterns. Thus, traders should ensure that when they identify the patterns. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
6
🐹ENGULFING CANDLE TRADING STRATEGY EXPLAINED🐹 🐣If you are looking for a simple yet powerful trading strategy that can help you spot potential trend reversals in the market, then the engulfing candle trading strategy might be the one for you. 🐙What is an engulfing candle, you might ask? Well, an engulfing candle is a candlestick pattern that occurs when a larger-bodied candle completely engulfs the smaller-bodied candle that preceded it. It is a sign of a shift in market sentiment, from bullish to bearish or vice versa, and can be used to identify potential entry and exit points for trades. 🐵To use this strategy, you need to be familiar with candlestick charts and understand the basic concepts of support and resistance. Here are the steps to follow: 🐿Step 1: Identify the trend The first step is to determine the current trend of the market. You can do this by analyzing the price movement of the asset you want to trade over a certain period. If the trend is bullish, you should look for bullish engulfing patterns. If the trend is bearish, you should look for bearish engulfing patterns. 🦔Step 2: Look for engulfing candle patterns Once you have identified the trend, you can start looking for engulfing candle patterns. A bullish engulfing pattern consists of a small red candle followed by a larger green candle that completely engulfs the previous candle. A bearish engulfing pattern is the opposite, with a small green candle followed by a larger red candle. 🐳Step 3: Confirm the pattern Before entering a trade based on an engulfing candle pattern, you should confirm that it is indeed a valid signal. This can be done by checking the volume of the larger-bodied candle and ensuring that there are no major resistance or support levels nearby. 🦋Step 4: Enter the trade If the engulfing candle pattern confirms the trend and there are no major obstacles, you can enter the trade. You should set your stop-loss and take-profit levels based on your risk tolerance and the size of the engulfing pattern. 🦄Overall, the engulfing candle trading strategy is a simple yet effective way to identify potential trend reversals in the market. However, it is important to remember that no trading strategy works 100% of the time, and you should always practice proper risk management to minimize losses. 🌺Hope u like my article. Please let me know what you think💋 Love, Anabel❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
8
Learn The Most Accurate Price Action Pattern Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
10
🌀Golden Cross And Death Cross Patterns Explained🌀 💱Today, we're talking about the exciting world of technical analysis, specifically the golden cross and death cross patterns. 💱So, what exactly are these patterns? Well, let me break it down for you. The golden cross pattern is a bullish signal in which a shorter-term moving average rises above a longer-term moving average. On the other hand, the death cross is a bearish signal in which a shorter-term moving average falls below a longer-term moving average. Simply put, the golden cross is a sign that the stock is on an upward trend, while the death cross indicates a downward trend. 💱Now, I can hear some of you thinking, "Why are we talking about crosses? Shouldn't we be discussing actual trends and data?" And I get it, the terminology can be a bit confusing. But the reason these patterns are so important is that they can give you an early indication of an approaching trend. 💱For example, let's say you're a savvy investor on the hunt for the next big thing. You spot a stock that's been on the decline for months, but suddenly, the shorter-term moving average crosses above the longer-term moving average, creating a golden cross. This could be a good sign that the stock is about to turn around and start heading upwards. 💱On the flip side, if you're already invested in a stock that's been doing well, but suddenly a death cross appears, it could be a sign to cut your losses and sell before the stock drops further. 💱Now, don't get me wrong, these patterns aren't foolproof. There are plenty of instances where a golden cross or death cross doesn't accurately predict a trend. But it's still a valuable tool to have in your toolbox when it comes to analyzing the markets. 💱So, whether you're a seasoned investor or just dipping your toes into the world of stocks, keep an eye out for those golden and death crosses. They may just give you the edge you need to make informed trading decisions. Happy investing! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
Learn The Most Accurate Price Action Pattern Hey traders, If you are learning price action trading, you definitely must know a double bottom pattern. Double bottom is a reversal pattern. It is applied to spot early market reversal clues and catch the initiation of a new bullish trend . Preconditions for a double bottom: 1️⃣ The market must trade in a bearish trend . 2️⃣ After a formation of the last lower high, the price must set equal low. 3️⃣ The price must return back to the last lower high level. ✅Once these conditions are met the pattern is considered to be completed. The formation of the pattern is considered to be a ⚠️WARNING sign. Even though many traders buy the pattern once it is completed, for me it is not enough. ❗️Remember that the price can easily start to consolidate and form a horizontal channel for example. The trigger that we will look for is the breakout (candle close above) the last lower high level (based on a wick and its highest candle close) - the neckline. Being broken to the upside, the market sets a new higher high. It signifies a violation of a current bearish trend . ⬆️Attempting to catch an initiation of a bullish trend , we will buy the market with a buy limit order on a retest of a broken neckline. ❌Safest stop will lie below the lows of the pattern. 💰Your reward must be at least 1.5 of your risk. Following these simple rules, you will be impressed by how accurate this pattern is! Let me know, traders, what do you want to learn in the next educational post?
TVC:DXYEducation
by VasilyTrader
16
Beginners’ Guide to Asset Allocation and Diversification Even if you are new to investing, you may already know some of the most fundamental principles of sound investing. How did you learn them? Through ordinary, real-life experiences that have nothing to do with the stock market. For example, have you ever noticed that street vendors often sell seemingly unrelated products - such as umbrellas and sunglasses? Initially, that may seem odd. After all, when would a person buy both items at the same time? Probably never - and that’s the point. Street vendors know that when it’s raining, it’s easier to sell umbrellas but harder to sell sunglasses. And when it’s sunny, the reverse is true. By selling both items - in other words, by diversifying the product line - the vendor can reduce the risk of losing money on any given day. If that makes sense, you’ve got a great start on understanding asset allocation and diversification. This publication will cover those topics more fully and will also discuss the importance of rebalancing from time to time. Asset Allocation Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The process of determining which mix of assets to hold in your portfolio is a very personal one. The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk. Time Horizon Your time horizon is the expected number of months, years, or decades you will be investing to achieve a particular financial goal. An investor with a longer time horizon may feel more comfortable taking on a riskier, or more volatile, investment because he or she can wait out slow economic cycles and the inevitable ups and downs of our markets. By contrast, an investor saving up for a teenager’s college education would likely take on less risk because he or she has a shorter time horizon. Risk Tolerance Risk tolerance is your ability and willingness to lose some or all of your original investment in exchange for greater potential returns. An aggressive investor, or one with a high-risk tolerance, is more likely to risk losing money in order to get better results. A conservative investor, or one with a low-risk tolerance, tends to favor investments that will preserve his or her original investment. In the words of the famous saying, conservative investors keep a “bird in the hand,” while aggressive investors seek “two in the bush.” Stocks Stocks have historically had the greatest risk and highest returns among the three major asset categories. As an asset category, stocks are a portfolio’s “heavy hitter,” offering the greatest potential for growth. Stocks hit home runs, but also strike out. The volatility of stocks makes them a very risky investment in the short term. Large company stocks as a group, for example, have lost money on average about one out of every three years. And sometimes the losses have been quite dramatic. But investors that have been willing to ride out the volatile returns of stocks over long periods of time generally have been rewarded with strong positive returns. Bonds Bonds are generally less volatile than stocks but offer more modest returns. As a result, an investor approaching a financial goal might increase his or her bond holdings relative to his or her stock holdings because the reduced risk of holding more bonds would be attractive to the investor despite their lower potential for growth. You should keep in mind that certain categories of bonds offer high returns similar to stocks. But these bonds, known as high-yield or junk bonds, also carry higher risk. Cash Cash and cash equivalents - such as savings deposits, certificates of deposit, treasury bills, money market deposit accounts, and money market funds - are the safest investments, but offer the lowest return of the three major asset categories. The chances of losing money on an investment in this asset category are generally extremely low. The federal government guarantees many investments in cash equivalents. Investment losses in non-guaranteed cash equivalents do occur, but infrequently. The principal concern for investors investing in cash equivalents is inflation risk. This is the risk that inflation will outpace and erode investment returns over time. Stocks, bonds, and cash are the most common asset categories. These are the asset categories you would likely choose from when investing in a retirement savings program or a college savings plan. But other asset categories - including real estate, precious metals and other commodities, and private equity - also exist, and some investors may include these asset categories within a portfolio. Investments in these asset categories typically have category-specific risks. Before you make any investment, you should understand the risks of the investment and make sure the risks are appropriate for you. 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?
OANDA:XAUUSDEducation
by TopTradingSignals
11
📉Bearish Reversal Patterns & Showcase📉What are Reversal Patterns? In trading, candlestick patterns are used to analyze the behavior of the market and identify potential opportunities to enter or exit a trade. Reversal patterns and continuation patterns are two types of candlestick patterns that traders look for. Reversal patterns are characterized by a change in the direction of the trend. These patterns indicate that the market is likely to reverse its direction and move in the opposite direction. In contrast, continuation patterns signal that the trend is likely to continue in the same direction after a temporary pause or consolidation. Reversal patterns usually take longer to form than continuation patterns because it's easier for the market to continue moving in the same direction than to change course. For example, if sellers are pushing the market lower, it takes more effort for buyers to turn the market around and initiate an uptrend. A reversal pattern may occur after a period of strong selling or buying pressure, as traders become exhausted or the market reaches a key support or resistance level. Once this happens, traders who missed the initial move may see an opportunity to enter a new trade in the opposite direction of the previous trend. However, for a reversal pattern to be considered valid, there must have been a previous trend in place. A sideways market cannot be classified as a reversal because it doesn't reflect a change in trend direction. Traders typically look for confirmation of a reversal pattern, such as a breakout from a trendline or a significant price movement in the opposite direction of the previous trend. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2