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Exploring the Crucial Components of a Powerful Trading Journal In one of the previous posts, we discussed the significance of a trading journal. In the today's article, I will share with you the key elements of a trading journal of a professional trader. And first, a quick reminder that a trading journal is essential for your trading success. No matter on which level you are at the moment, you should always keep track of your results. Let's go through the list of the things that you should include in your journal. 1 - Trading Instrument The symbol where the order is executed. You need that in order to analyze the performance of trading a particular instrument. 2 - Date The date of the opening of the position. Some traders also include the exact time of the execution. 3 - Risk Percentage of the account balance at risk. Even though some traders track the lot of sizes instead, I do believe that the percentage data is more important and may give more insights. 4 - Entry Reason The set of conditions that were met to open the trade. In that section, I recommend to note as much data as possible. It will be applied in future for the identification of the weaknesses of your strategy. 5 - Risk Reward Ratio The expected returns in relation to potential risks. 6 - Results Gain or loss in percentage. And again, some traders track the pip value of the gain, however, in my view, the percentage points are more relevant for studying the statistics. Here is the example of the trade on Gold: Here is how exactly you should journal the following trade: Instrumet: Gold (XAUUSD) Date: 03.07.2023 Risk: 1% Entry Reason: H&S Pattern Formation, Neckline Breakout & Retest R/R Ratio: 1.77 Results: +1.77% Of course, depending on your trading strategy and your personal goals, some other elements can be added. However, the list that I propose is the absolute minimum that you should track. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
What you need to know about being Bullish!As a long time trader and professional investor, it's been awesome seeing the evolution of Bitcoin. It's a place for influencers to say stupid things like Bitcoin to 100k or 250k without any real merit or logic behind such a price point. Often the analysis consists of a handful of useless lines drawn from nowhere to somewhere of interest on the chart. To understand what Bitcoin and the larger crypto market is doing, doesn't take a lot. Especially as it becomes more and more institutional. I've talked about this for a long time here on @TradingView and showed each step of the way. These moves are not as random as they appear. There's a great book by Richard Ney, actually he has a couple talking about market makers and the effect on the markets. However, one little snippet he talks about how the market or a stock/instrument such as Bitcoin can be seen as a warehouse, think of the scale and number of shelves. Now think of the length of time to fully stack that warehouse. This isn't a quick factor... Now break that idea down further & apply it to BTC. If the market makers are the owners of the warehouse, who do they sell to? Well retail of course. The issue is retail simply do not buy in bulk. Once retail get the urge to buy, the warehouse stock gets depleted 'over time'. In addition the market makers need to stock back up. So for them, they need to buy cheap and sell higher. Trading 101 Over the last couple of years, I have shared a chart showing COT data, this is a US based sample size of in essence what the market makers are doing. The data is slow and clumpy, it's lagging much like all the other indicators - maybe even more so. However, that does not matter as all you are looking for is a general bias. You only need to look at Larry Williams who won the Robbins World Cup Championship of Futures Trading, COT data is a key part of his strategy. I've written several posts here covering the topic in more depth, but here's the current snapshot. Asset Managers: This image clearly shows a long, long term bias. Next you have the Leveraged Funds: This image is almost the inverse, we have a negative delta shown. Now in the past I have had people say to me "ah look, institutions getting REKT. Price going up and their short" What you need to understand is how this works. Let me ask you this "Who is selling to you in the rally" Well the guys who bought it cheaper. So here's the lesson: The factors for Bitcoin currently are pretty simple; you have a long term Bullish bias as seen by the Asset Managers . You have a shorter term Bearish bias of the Leveraged Funds Therefore we can look at some other factors. Let's start with a zoomed out view of the market - let's go to a Monthly timeframe. What do you see? Well, I see an overbought stochastic, I also see price moved up as volume fell down (more visible lower TF's). To translate this, the accumulation for the bigger picture is not quite over. Influencers think we are resting on 30k to rally to 250k next week. Unfortunately for their Demo accounts, the market doesn't think like that. Nor do the market makers! Next you can also dig a little deeper into things like Dark Pools again I have covered this in another educational post. As this is an educational post, let's put all of the pieces together. 1> COT data shows Leveraged Funds still have positions to sell 2> Asset Managers have a Bullish Bias 3> Monthly stochastic overbought 4> Volume doesn't match the move up 5> Dark pools... How much is being soaked up under the radar? In the TradingView show back in May, I covered Wyckoff and Elliott and a little about composite man (market makers). www.tradingview.com When using such tools and techniques, the price becomes obvious. Why up or down and at what key levels. Moves like this are pre programmed into the liquidity algorithm. Things you can spot from miles away. So let's finish on putting it all together - The conclusion would be, we are early on in an accumulation phase, we need to stockpile the warehouse to have momentum to newer highs. IF we go directly here we are capped - think of it like fuel in the tank. I have talked about this on several of my streams here. Coupled with the current view of the overall economy. This doesn't have to be difficult. I hope this helps some of you out. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
10
📚 Bow & Arrow Pattern 🏹Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Today, I want to share an interesting pattern that I always use to speculate (to an extent) the next move of an asset. 🏹 I call it the "Bow & Arrow" pattern. This pattern can be either bullish or bearish, but for today, I will be focusing on the bullish reversal patterns. On the chart, I have highlighted three previous examples for illustration purposes (in red, orange, and purple). The pattern consists of three cycles: 1️⃣ First, there is a bearish impulse that breaks below a major low. 2️⃣ Second, a correction forms followed by another bearish impulse. 3️⃣ Third, the bulls take over, resulting in a complete shift in momentum. 📉 We can clearly see this pattern playing out nicely on the XRP weekly chart. If we apply the same logic and pattern to the current price action, we would expect the next bullish impulse movement (3️⃣) to start soon, which should be confirmed on lower timeframes. 🗒 What do you think? Always remember to follow your trading plan regarding entry, risk management, and trade management. Good luck! And always remember: All strategies are good if managed properly! ~Rich
Education
by TheSignalyst
22
Trading week recap for NASDAQ, DOW, DAX & FTSE (01/07/2023)We had successful trades with the NASDAQ and the DAX. Let's look back at the past trading week and learn from it. What went well? What could be better? This is an experiment. Educational content to become a good waver. If you like this video, please let me know by commenting. Any suggestions? Please let me know. Something went wrong with the recording for the last part on the FTSE. We continue the analysis on Monday.
OANDA:NAS100USDEducation
by AndyCuckoo
Target Reached! XAGUSD ReviewPrice reversed strongly from our resistance level to the support level at 22.20. But how did it happen? Join Desmond in today's analysis review to have a quick recap on the elements that led to this strong reversal. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:XAGUSDEducation
by FXCM
MOST THINGS SUCCESSFUL TRADERS DO AND THE SECRET BEHIND FOREX A single formula for success for trading in the financial markets. Think of the markets as being like the ocean and the trader as a surfer. Surfing requires talent, balance, patience, proper equipment, and mindfulness of your surroundings. Would you go into water that had dangerous rip tides or was shark-infested? Hopefully not. The attitude to trading in the Forex markets is no different. By blending good analysis with effective implementation, your success rate will improve dramatically, and, like many skill sets, good trading comes from a combination of talent and hard work. Here are the four strategies to serve you well in all markets, but in this article, we will focus on the Forex markets. Approaching Forex Trading Before you trade, recognize the value of proper preparation. It's important to align your personal goals and temperament with relatable instruments and markets. For example, if you understand retail markets, then it makes sense to trade retail stocks rather than oil futures, about which you may know nothing. It also helps to begin by assessing the following three components: Given its low commissions and fees, the Forex market is very accessible to individual investors. However, before you trade, make sure you have a solid understanding of what the Forex market is and the smart ways to navigate it. Learn the basics and see real-time examples of the approaches and strategies detailed in my youtube video Time Frame The time frame indicates the type of trading that is appropriate for your temperament. Trading off a fifteen-minute chart suggests that you are more comfortable taking a position without exposure to overnight risk. On the other hand, choosing weekly charts indicates comfort with overnight risk and a willingness to see some days go contrary to your position. In addition, decide if you have the time and willingness to sit in front of a screen all day or if you prefer to do your research over the weekend and then make a trading decision for the week ahead based on your analysis. Remember that the opportunity to make substantial money in the Forex markets requires time. Short-term scalping, by definition, means small profits or losses. In this case, you will have to trade more frequently. Methodology Once you choose a time frame, find a consistent methodology. For example, some traders like to buy support and sell resistance. Others prefer buying or selling breakouts. Some like to trade using indicators, such as MACD (moving average convergence divergence) and crossovers. Once you choose a system or methodology, test it to see if it works on a consistent basis and provides an edge. If your system is reliable more than 60% of the time, you should consider that an edge, even if it's a small one. Test a few strategies, and when you find one that delivers a consistently positive outcome, stay with it and test it with a variety of instruments and various time frames. Market (Instrument) You will find that certain instruments trade much more orderly than others. Erratic trading instruments make it difficult to produce a winning system. Therefore, it is necessary to test your system on multiple instruments to determine that your system's "personality" matches the instrument being traded. For example, if you were trading the EUR/USD currency pair in the Forex market, you may find that Fibonacci support and resistance levels are more reliable. Your Forex Trading Attitude Behaviour is an integral part of the trading process, and thus your attitude and mindset should reflect the following four attributes: Patience Once you know what to expect from your system, have the patience to wait for the price to reach the levels that your system indicates for either the point of entry or exit. If your system indicates an entry at a certain level but the market never reaches it, then move on to the next opportunity. There will always be another trade. Discipline Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Sometimes, the price action won't reach your anticipated price point. At this time, you must have the discipline to believe in your system and not second-guess it. Discipline is also the ability to pull the trigger when your system indicates to do so. This is especially true for stop losses. Objectivity Objectivity or "emotional detachment" also depends on the reliability of your system or methodology. If you have a system that provides entry and exit levels that you find reliable, you don't need to become emotional or allow yourself to be influenced by the opinion of pundits. Your system should be reliable enough so that you can be confident in acting on its signals. Realistic Expectations Even though the market can sometimes make a much bigger move than you anticipate, being realistic means that you cannot expect to invest $100 in your trading account and make $1,000 each trade. Although there is no such thing as a "safe" trading time frame, a short-term mindset may involve smaller risks if the trader exercises discipline in picking trades. This is also known as the trade-off between risk and reward. Motivating Forex Trading Factors Instruments trade differently depending on the major players and their intent. For example, hedge funds vary in strategy and are motivated differently than mutual funds. Large banks that are trading in the spot currency markets usually have a different objective than currency traders buying or selling futures contracts. If you can determine what motivates the large players, you can often align that knowledge to your advantage. Alignment Pick a few currencies, stocks, or commodities, and chart them all in a variety of time frames. Then apply your particular methodology to all of them and see which time frame and instrument align with your system. This is how you discover alignment within your system. Repeat this exercise regularly to adapt to changing market conditions. Implementing a Forex Trading Strategy There is no such thing as only profitable trades, just as no system is a 100% sure thing. Even a profitable system, say with a 65% profit-to-loss ratio, still, has 35% losing trades. Therefore, the art of profitability is in the management and execution of the trade. Risk Control In the end, successful trading is all about risk control. Try to get your trade in the correct direction right out of the gate. Evaluate your trading system, make adjustments, and try again. Often, it is on the second or third attempt that your trade will move in the right direction. This practice requires patience and discipline to achieve success. The Bottom Line Trading is nuanced and requires as much art as science to execute successfully, which means that there is only a profit-making trade or a loss-making trade. Warren Buffet said that there are two rules in trading: Rule 1: Never lose money. Rule 2: Remember Rule 1.1 Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
Education
by wakaman
Part [A] Basic of Wave PrincipleElliott Wave background In the 1930s, R.N Elliott identified the price of the stock trends and reversed a specific pattern. This pattern is repetitive in form and, the patterns have predictive value. He decided to use this pattern (Elliott wave theory) to predict the market. The Elliott wave is not primarily a trading system. It is a detailed description of how the market acts. The Elliott wave is part of technical analysis. Also, the Wave principle is the reassembled form of dow theory. -Elliott Wave Principle The key To Market Behavior] Waves in the market? We all know that price never moves in a straight line. It will neither fall in a straight line nor rise in a straight line. Price will create highs and lows. And this high and low creates waves. Elliott wave theory is all about counting waves and, we are going to use the Elliott wave to trade the market. Now, the concept of waves is acceptable for you. Elliott wave theory is made of 5+3= 8 waves. Let me show you that structure in both trends. In bull market ( UP Trend ) : Figure 1.1 This is the Elliott wave structure in an uptrend. As we discussed, Elliott's wave theory is made up of 5+3=8 waves. Where five waves move with the trend and three waves move against the trend. In Bear market (downTrend) Figure 1.2 This is an example of Elliott wave theory in the Bear market. We can see that five waves move with the trend and, three waves move against the trend. Take a deep breath, I know you have lots of doubts in your mind. Let me solve some. 1. Elliott wave theory works in any time frame. 2. These 5+3=8 waves will give us a market edge. It will provide strong trends & trend reversals. 3. The accuracy of Elliott wave theory is 84% of you are using the wave principle correctly. Practical Example of Elliott wave theory : In the Bull market : Figure 1.3 This is the TATA MOTORS 4 hour timeframe chart. I used bar charts because It is easy to recognize Elliott's waves in bar Patterns. Well, it works for me to recognize if you feel that you can recognize patterns in another chart, go ahead with bar charts! In Bear Market: Figure 1.4: This is the ITC daily time frame chart. It shows the beautiful Elliott wave structure in the Bear market. Elliott wave structure : Now, we all know that Elliott is made of a 5+3= 8 wave structure. So, Let's start getting into it! To understand the wave principle, we have divided the wave structure (5+3=8) into two Phases which are an Impulse phase/structure & a corrective phase/structure. Figure 1.5 This picture illustrates Two phases of the Elliott wave principle. The impulse phase is made up of 5 waves and, the corrective phase is made up of 3 waves. Figure 1.6: This picture divides the wave principle into two phases. 1. Impulse phase/structure ( which includes five waves and, which moves with the trend you can see in bull market impulse phase is going upward and in a bear market, impulse phase is going down which is directional move.) & 2. Corrective Phase/structure ( which includes three waves and which moves against the trend, you can see that in bull market corrective phase is going downward and In bear markets, the corrective phase is going upward, which is a counter-trend move. Figure 1.7 , Elliott wave has 2 phases. motive/Impulse phase ( directional move ) and corrective phase(counter trend move). We can divide these 2 phases into two types of waves. Impulsive waves and corrective waves. Let’s zoom in on the impulse phase to understand the underlying structure and wave behavior. Motive/Impulse Phase : Important things about the impulse phase 1). Motive/Impulse phase is a Five wave structure that includes wave1,2,3,4 & 5. 2). motive/Impulse phase is a directional move ( moves with the trend.) 3). The Ending point of the impulse phase is the starting point of the corrective phase. 4). motive/Impulse structure is powerful than corrective structure. 5) Impulse phase can divide into two types of waves i) Impulse waves: 1, 3,5 ( move with Trend of impulse Phase ) ii) Corrective waves: 2,4 ( Moves against the trend of Impulsive Phase) Let me give you a quick understanding because we are going to cover these waves in-depth, Impulsive waves are trend-following moves. We can find this type of wave structure in both phases. Impulsive waves create trends. Impulsive waves are (1,3,5,A,C). Corrective waves are counter-Trend moves. We can find this type of wave structure in both phases. Corrective waves provide pause to continue the trend, Corrective waves : (2,4,B) Motive/Impulse Phase in Bull market Figure 1.8(A) , wave 1,3,5 is an impulsive wave of impulse phase because The trend of impulse phase up and, Impulsive wave are following the trend and heaving upward move. And wave 2,4 is the corrective wave of an impulse phase because the trend of the impulse phase is up but, the corrective wave is moving down, which is against the trend. Figure 1.8(B) , wave 1,3,5 is an impulsive wave of impulse phase because the trend of Motive/impulse phase down and Impulsive wave are following trend and heaving downward move. And Wave 2,4 is the corrective wave of an impulse phase because the trend of the Impulse phase is down but, the corrective wave is moving upward, which is against the trend. Corrective Phase/structure : Important things about the impulse phase 1). The Corrective Phase is a three-wave structure that includes waves A, B, C. 2). The corrective phase is a counter-trend move ( moves against the trend.) 3). The Ending point of the corrective phase is the starting point of the Impulse phase. 4) correction phase can divide into two types of waves i) Impulse waves: A, C ( move with Trend of correction Phase ) ii) corrective waves: B ( moves against Trend of correction Phase ) Corrective Phase in a bull market: Figure 1.9(A) : wave A, C is the impulsive wave of the Correction phase because the trend of the correction phase is down and Impulsive waves are following the trend and heaving downward move. And Wave B is the corrective wave of a Correction phase because the trend of the Corrective Phase is down but, the corrective wave is moving upward which is against the trend. Figure 1.9(B): wave A, C is the impulsive wave of the Correction phase because the trend of correction phase Up and Impulsive waves are following the trend and heaving Upward move. And Wave B is the corrective wave of a Correction phase because the trend of the Corrective Phase is Up but, the corrective wave is moving down, which is against the trend. Impulsive wave structure: 1. Impulsive waves are directional moves that are bigger than corrective waves. 2. Impulsive waves create trends. 3. Impulsive waves are subdivided into five waves. ( that means wave 1,3,5, A, C which moves with the trend will have five sub-waves.) 4. Impulsive waves are easy to recognize. (Impulsive waves can also be called motive waves) 5. Ride of impulsive wave can give us a high probability trade setup with high Rewards We are going to cover impulsive wave formations in the next part. (diagonals,extensions,Impulse,Truncation) Figure 1.10: As we discussed, Impulsive waves subdivide into five waves. Here wave 1,3,5, A, C has five subwaves which you can see in the chart. See you in the next part. @forextidings
BITSTAMP:BTCUSDEducation
by forextidings
2
How to Count Waves Using Chart Patterns?We can count waves using traditional patterns like Head and shoulders, Double Top and Bottom, Triangle, cup & handle, etc. This article is about how you can count waves by identifying chart patterns. I have covered Three chart patterns in this article, 1) Triangles 2) Head and shoulders 3) Double Top and Bottom 1) Head and shoulders: In addition, the two lows formed when the price failed to rise and fell back down were basically at the same level. The horizontal line is often referred to as the "neckline" When the price fails to fall back for the third time neckline will break. So "head and shoulders" was officially established. Changes in volume with head and shoulders: During the formation of "head and shoulders", the left shoulder has the largest volume, the Head has a slightly smaller volume, and the right shoulder has the smallest volume. The phenomenon of diminishing trading volume shows that when the stock price rises, the chasing force is getting weaker and weaker, and the price has the meaning of rising to the end. Operation plan after the Head and shoulders appear: When the head and shoulders formed, you can decisively follow up the short order. The formation of the head and shoulders indicates the beginning of a new round of decline in the market, and the minimum drop is the distance from the head to the neckline. The profit is very substantial. Therefore, studying the formation of the Head and Shoulders is also a necessary analysis process for band enthusiasts. Wave Count: The left shoulder: wave 3/A. The first touch on the neckline: wave 4/B Head: wave 5/C The second touch on the neckline: wave A/1 The right shoulder: wave B/2 The ending point of the right shoulder: wave C/3 2) Triangles: These are the most commonly used triangle patterns. In this motion, we are going to understand the triangle in terms of the Elliot wave. We'll be talking about the classical triangle pattern in an upcoming educational series. Wave Count: A triangle forms in corrective waves. There are Four corrective waves in Elliott wave theory. The corrective waves are 2,4, B, and X. There are four waves in a triangle which are A, B, C, D, E. The starting point of wave A of the triangle is the ending point of impulsive wave 1/3/A/W. After the completion of wave E of wave 1/3/A/W, the Impulsive wave will initiate. 3) Double Tops and Bottom: In the chart, you can sometimes see the stock price fluctuations. The stock price fell back after reaching the highest price. After some sorting, it rose again to near the previous stock price level and then fell back. Two "normally highs" The high point is formed on the circuit diagram and will not be seen again in the short term. Wave Count: In a Bull market, The first Top of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Top and labeled it as A, B, and C waves. In a Bear Market, The first Bottom of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Bottom and labeled it as A, B, and C waves. After wave C is complete, we can ride the impulsive waves.
NASDAQ:TSLAEducation
by forextidings
3
ELLIOTT WAVE STRUCTURE BASICShere is some basic principles to discern between Corrective and Impulse. For corrective waves, it helps contextually to have a wave prior to measure the timing and retracement to. A simple way to tell the two apart is their retracements either do or do not intersect each other. A trending impulse wave will never have wave 4 enter wave 1's territory, and never surpasses 2. Otherwise the wave count is incorrect. The left-most corrective waves (ABC) are generally classed as 2nd wave structures, and the corrective waves on the right (ABCDE) are generally wave 4s. important to actually do the homework and chart the waves, and the waves within the waves. With many revisions, will notice that waves in whole are congruent within the structures within, and so forth. aka fractals.
BITSTAMP:BTCUSDEducation
by jjbuttersnaps
The Power of Volume: Understanding Volume Analysis in TradingIn the dynamic world of financial markets, successful traders know that understanding volume analysis is crucial for making informed trading decisions. Volume, the number of shares or contracts traded during a given period, provides valuable insights into market dynamics and helps identify potential trends, reversals, and the strength of price movements. In this Educational article, we will explore the power of volume and its significance in trading, uncovering the key principles of volume analysis, practical strategies for incorporating it into your trading toolkit. 📊 The Basics of Volume Analysis 📊 Volume analysis is the study of trading activity represented by the volume of shares or contracts traded within a specified time frame. By analyzing volume alongside price movements, traders gain insights into market sentiment, liquidity, and the overall strength of a trend. Here are some fundamental concepts to consider: Volume and Price Relationship: Volume often accompanies significant price moves. When volume surges during an uptrend or downtrend, it suggests increased participation and conviction from market participants. Conversely, low volume during consolidations or indecisive periods can indicate a lack of interest or involvement. Volume Patterns: Patterns in volume can reveal important clues about market dynamics. For example, a gradual increase in volume during an uptrend may suggest a healthy and sustainable trend, while a sudden spike in volume near key support or resistance levels could signal potential reversals. 📊 Analyzing Volume in Different Market Scenarios 📊 Volume analysis can be applied across various market scenarios to gain insights into the underlying dynamics. Here are a few examples: Breakouts: When a stock or asset price breaks out of a key resistance level with high volume, it suggests strong buying interest and potential continuation of the uptrend. Reversals: A significant increase in volume accompanied by a sharp price reversal may indicate a trend exhaustion and potential reversal. Volume analysis helps validate potential reversal signals. Divergence: When the price is moving in one direction while volume is moving in the opposite direction, it can indicate a weakening trend. Divergences between volume and price can provide valuable early signals of trend reversals. Example: FINPIPE _ breakout with huge volume & reversal candle at retest (at support) of breakout with huge volume 📊 Integrating Volume Analysis into Your Trading Strategy 📊 To effectively incorporate volume analysis into your trading strategy, consider the following tips: Confirmation: Volume analysis can act as a confirmation tool for other technical indicators or chart patterns. For example, if a price breakout occurs with high volume, it confirms the strength of the breakout. Relative Volume: Compare current volume to historical averages to gauge the intensity of trading activity. Unusually high or low volume relative to average volume can highlight potential trading opportunities. Multiple Time Frames: Analyzing volume across different time frames can provide a broader perspective on market dynamics. Higher time frames can reveal long-term trends, while lower time frames offer insights into intraday trading activity. 📊 Volume Indicators 📊 To assist traders in analyzing volume effectively, several technical indicators have been developed. These indicators help visualize and interpret volume data in meaningful ways. Here are a few commonly used volume indicators: Volume: The most basic volume indicator, volume bars represent the volume traded during each price bar or candlestick. By comparing the height of volume bars across different periods, traders can identify anomalies or significant shifts in trading activity. Moving Average in volume indicator: Moving Average calculates the average volume over a specified period. It smoothens out volume data, making it easier to identify volume spikes. On-Balance Volume (OBV): OBV measures the cumulative volume by adding or subtracting the volume based on whether prices close higher or lower. It helps identify periods of accumulation or distribution and can provide early signals of trend reversals. Wave Volume Divergence: A unique addition to volume indicators, this indicator enhances volume analysis by providing wave volume divergence and cumulative volume information. Traders can utilize this indicator to identify potential divergences between volume and price, as well as observe the cumulative volume trends. If you found this article helpful, please give it a like and feel free to share your observations in the comments section. Your support and feedback are highly appreciated, as they keep me motivated to write consistently. Thank you for your support, likes, follows, and comments! For more articles and trade setups, don't forget to follow me on TradingView: in.tradingview.com Keep exploring the power of volume analysis, and remember: 🌟 "Success in trading comes to those who diligently study the market and adapt their strategies." 🌟 📊🚀📈 #TradingView #TechnicalAnalysis #VolumeAnalysis #MarketInsights
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NSE:NIFTYEducation
by AfnanTAjuddin
75
Learn The Market Volatility | The Double-Edged Sword Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring? In this educational article, we will discuss the market volatility, how is it measured and how can it be applied for making smart trading and investing decisions. 📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time. High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily. High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains. On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest. The chart on the left is the perfect example of a volatile market. While the chart on the right is a low volatility market. 📰 The main causes of volatility are economic and geopolitical events. Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements. On the other hand, the absence of the news and the relative stability are the main sources of a low volatility. Here is the example, how the Covid pandemic affected GBPUSD pair. The market was falling in a very rapid face in untypical manner, being driven by the panic and fear. But how the newbie trader can measure the volatility of the market? The main stream way is to apply ATR indicator, but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated. 📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks. The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles. Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset. Take a look at a price action and candlesticks on Bitcoin. The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility. 🛑 For traders who just started their trading journey, high volatility is the red flag. Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level. Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves. The best solution is to look for the market where the volatility is average, where the market moves but on a reasonable scale. Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
👻The Movers and Shakers: Meet the Big Forex Players👻 🍀The forex market is a dynamic and complex marketplace, with billions of dollars changing hands every day. At the center of this volatile financial landscape are a handful of key players who wield immense power and influence over the direction of global currencies. In this article, we'll introduce you to some of the biggest and most influential forex market players. 🌸The Central Banks: "We set the tone for the entire forex market." Perhaps the most important forex market players are the world's central banks. These powerful institutions have the ability to control the supply and demand of their respective currencies, through interest rate policies and other monetary maneuvers. Whenever a central bank makes a move, traders around the world sit up and take notice. 🌺The Big Banks: "We are the gatekeepers of the forex market." Big banks are another major group of forex market players, and they play a critical role in providing liquidity to the market itself. These institutions act as intermediaries, buying and selling currencies on behalf of their clients and helping to facilitate trades between different market players. 🌼Hedge Funds and Trading Firms: "We thrive on volatility and uncertainty." Hedge funds and trading firms are a relatively new entrant to the forex market, but they have quickly become some of the most important players. These firms are often staffed by experienced traders and analysts who use complex algorithms and trading strategies to capitalize on short-term market movements. 🌹In conclusion, the forex market is a complex and ever-evolving landscape, but understanding the key players involved can help investors and traders make more informed decisions. Whether you're following the moves of central banks, working with big banks, or leveraging the insights of hedge funds and trading firms, the forex market is full of opportunities for those who are willing to take the risk. Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
7
today we will talk about 5 TYPES OF ELLIOTT WAVE PATTERNStoday we will talk about 5 TYPES OF ELLIOTT WAVE PATTERNS ( FIRST SOME BASIC INFO ) What is Elliott Wave Theory? The Elliott Wave Theory suggests that stock prices move continuously up and down in the same pattern known as waves that are formed by the traders’ psychology. The theory holds as these are recurring patterns, the movements of the stock prices can be easily predicted. Investors can get an insight into ongoing trend dynamics when observing these waves and also helps in deeply analyzing the price movements. But traders should take note that the interpretation of the Elliot wave is subjective as investors interpret it in different ways. (KEY TAKEAWAYS) The Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing. Before discussing the patterns, let us discuss Motives and Corrective Waves: What are Motives and Corrective Waves? The Elliott Wave can be categorized into Motives and Corrective Waves: 1. Motive Waves: Motive waves move in the direction of the main trend and consist of 5 waves that are labelled as Wave 1, Wave 2, Wave 3, Wave 4 and Wave 5. Wave 1, 2 and 3 move in the direction of the main direction whereas Wave 2 and 4 move in the opposite direction. There are usually two types of Motive Waves- Impulse and Diagonal Waves. 2. Corrective Waves: Waves that counter the main trend are known as the corrective waves. Corrective waves are more complex and time-consuming than motive waves. Correction patterns are made up of three waves and are labelled as A, B and C. The three main types of corrective waves are Zig-Zag, Diagonal and Triangle Waves. Now let us come to Elliott Wave Patterns: In the chart I have mentioned 5 main types of Elliott Wave Patterns: 1. Impulse: 2. Diagonal: 3. Zig-Zag: 4. Flat: 5. Triangle: 1. Impulse: Impulse is the most common motive wave and also easiest to spot in a market. Like all motive waves, the impulse wave has five sub-waves: three motive waves and two corrective waves which are labelled as a 5-3-5-3-5 structure. However, the formation of the wave is based on a set of rules. If any of these rules are violated, then the impulse wave is not formed and we have to re-label the suspected impulse wave. The three rules for impulse wave formation are: Wave 2 cannot retrace more than 100% of Wave 1. Wave 3 can never be the shortest of waves 1, 3, and 5. Wave 4 can never overlap Wave 1. The main goal of a motive wave is to move the market and impulse waves are the best at accomplishing this. 2. Diagonal: Another type of motive wave is the diagonal wave which, like all motive waves, consists of five sub-waves and moves in the direction of the trend. The diagonal looks like a wedge that may be either expanding or contracting. Also, the sub-waves of the diagonal may not have a count of five, depending on what type of diagonal is being observed. Like other motive waves, each sub-wave of the diagonal wave does not fully retrace the previous sub-wave. Also, sub-wave 3 of the diagonal is not the shortest wave. Diagonals can be further divided into the ending and leading diagonals. The ending diagonal usually occurs in Wave 5 of an impulse wave or the last wave of corrective waves whereas the leading diagonal is found in either the Wave 1 of an impulse wave or the Wave A position of a zigzag correction. 3. Zig-Zag: The Zig-Zag is a corrective wave that is made up of 3 waves labelled as A, B and C that move strongly up or down. The A and C waves are motive waves whereas the B wave is corrective (often with 3 sub-waves). 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 for spotting a triangle, it may take a little practice for identifying 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 moneyhacksrwanda
1
Why do Patterns fail so often?To answer this question, let's try to take a classic Pattern as an example: the "Head and Shoulders" . Typically Traders take short position (in this example) on neckline breakout and place stop loss above right shoulder or head. If we only take these elements into consideration, it often happens that pattern fails. Why does this happen? Because these elements are not enough and we need to use some "filter". One of these filters, and perhaps the most important, is the "placement". For example, the Head and Shoulders is considered a Reversal Pattern that should only appear at the end of a Trend, and this is where the "Elliott Waves" come into play. In fact Elliott claims that a Trend is formed of 5 waves (3 + 2) and often the first signal of the end of the trend is the first bearish leg after wave 5 (Wave A). Another important filter could be RSI indicator because often some divergence also appears in wave (5). In conclusion, the Patterns work very well on the market but you also need to learn how to use them correctly, trying to use some filters to get some more confirmation and limit losses as much as possible. Naturally these considerations are personal and come only from my experience, but they are absolutely subjective and therefore open to criticism. ...I hope I was helpful.
Education
by TheAnonymousBanker
4
Easiest Way To Trade Forex Directions: 1) Wait For Pullback 2) Wait For PA to Break Top of Structure Left 3) Buy When PA Hits Left Structure 4) Set Stop Loss To Below Pullback 5) Stops & Targets Can Be 1:1 RR or higher, but ALWAYS control risk If you understand the Elliot impulse waves in Forex, then you can trade the easiest way in Forex. Just wait for pullbacks in the major trade of the day on the hourly TF (if scalping or day trading), or on higher TFs if swinging or position trading. Noted on AJ pair for Friday was two buy trades, which would have been easy to spot and to set up, before pa hits your entry, you should have your stops and targets set & already have calculated the risk associated in this trade.
Education
by Anbat
3
Every man and his dogI have seen more and more Wyckoff posts recently, well - here's another one! I was trading Wyckoff methodology when it wasn't cool. Unfortunately for the masses, it's not as easy as an 'influencer' will have you believe, from seeing their posts - they clearly lack the understanding and are simply joining the 'HYPE' club for view count. A few years back I went into some depth on Bitcoin's phases as you can see below; Here you would expect the mark up and straight into a Point and Figure forecasted level, which then became 'Re-accumulation' As the price moved up, you could see as clear as day a nice AR move; I'll go into that shortly. But this was the sign of professional involvement. This chart was posted on the 18th of March to highlight the BC (also cover in a second) Why was it so obvious? It was smacking us in the face with the fact it had it's re-accumulation phase earlier - although many said the 60+ thousand level was the accumulation. Point and Figure analysis had the range mapped out and as we neared the zone, the AR come into play. To understand this, I have drafted the help of my good friend Chat GPT to explain this like we are 10 years old. Imagine you have a jar filled with your favorite candies, and you really want to collect as many as possible. Here's how the stages of a Wyckoff accumulation schematic can be related to this candy scenario: Stage 1: Markdown Phase In this stage, you notice that the candies are on sale and their price has been reduced. This makes you excited because you can buy more candies with the same amount of money. So, you start buying some candies, taking advantage of the lower prices. Other people also notice the sale and start buying candies too. This is like the first stage in Wyckoff accumulation, where prices are falling, and smart investors start buying. Stage 2: Absorption Phase In this stage, you and other candy lovers continue buying candies, but you start to notice that even though you're buying a lot, the price doesn't go down as much as it used to. It's like the candies are getting harder to find on sale. This means that there are fewer candies available at the lower price, and more people are buying them. You and others keep buying as many candies as you can, but you start to realize that the sale might be ending soon. Stage 3: Markup Phase Now, the sale is over, and the candies are back to their regular price. However, you notice that the candies you bought during the sale are now worth more than what you paid for them. You feel happy because you made a smart decision to buy them when they were cheap. Other people who missed the sale also want to buy candies now, but the price is higher. You may decide to sell some of your candies at a higher price to those who want them. This is like the third stage in Wyckoff accumulation, where prices start to rise, and the smart investors who bought earlier can sell for a profit. So, to summarize, in the Wyckoff accumulation schematic, we have the markdown phase where prices fall, the absorption phase where prices stabilize, and the markup phase where prices rise. Just like buying candies on sale, smart investors try to buy assets when their prices are low and sell them when prices go up. ===================================================================== So now you got the basic idea of Wyckoff phases; this is still a very hard thing to spot. It helps if you have a bias and of course background as to where the price has been. When I posted the "Rocket call" in March 21, we had seen the Buyers Climax which can be defined like this; A major panic that occurs at the end of a steep ascent in prices. In its classical form it is typified by large range reversal in prices accompanied by large volume. However to simplify this further; contrary to popular 'influencer' belief - Large operator don't go chasing 100x returns, their seeking to make money in all environments and often over a much longer time frame than retail would like. So think of a buyers climax like the bigger players have reached a target that they are comfortable with, the level of returns are sufficient. They sell off as retail are buying every little dip on their 15 minute chart. An AR is an Automatic Reaction to either a buyers or sellers climax (for more, read the post below - Wyckoff basics explained) Once we dropped to the 4 level marked up in March. The move away was ugly, it was low volume from the get go. Meaning a lack of overall interest (at the time) But under the surface, there was more to it. A lot more to it to be honest! I covered the Wyckoff Distribution in this educational post; So, we dropped "exactly as predicted" into a range that was measured only to rise on low, depleting volume. You would then expect a re-accumulation and the measurement for the extension is again mapped out. Re-read the Chat GPT section above. You see, Wyckoff can be useful if you know how to use it properly... People often say things like "it's over 100 years old, it can't work in these markets" Or they try and make patterns out of every move, clearly lacking the understanding. As I explained in August 21 on the way to the current All Time High - the price could be plotted as the image above shows. Volume and COT intel plays a major part here, the sell off was going to be quick to the 40k level - why? Well, it was re-distribution in play. And just like that January 22 through to May was also mapped out... Once we got that break down lower, you could assess the Point and Figure regions. And just like that, we are back into Accumulation. To the MOOOOON!!! ... Not so fast, as this is a much bigger cycle you have to look out for volume, what the bigger players are manipulating and assess the overall situation, being a bigger schematic it is likely to be a slower burner. Refer back to the Chat GPT section above. ======================================================================== Wyckoff, Elliott and Dow Theory still works today as it's not a study of technical charts to be honest, they understood the depth of psychology, retail sentiment based on an individuals own mindset. I have covered the psychology around this in several posts including the Simpsons one! Here's a quick look at the cycle. Now, place these retail sentiment analysts together. You see, things don't have to be complex to work. Zoom out and if you have read this post well enough, you might spot the next clue as to where exactly we are. If you already know me or follow my posts and educational content, you might spot not only where we are, but why. Anyways, I hope this helps at least one person out there! Have a great week! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
10
Positive NFP Data for the USDNFP May 2023 - 339,000 jobs have been created. While this sounds like a good thing, it’s also a bad thing. The entire point of the Federal Reserve hiking interest rates was to ‘slow down inflation’ by making people lose their jobs, in turn leaving them with less disposable income to flood back into the economy. What this NFP data shows is that the current interest rate hikes aren’t working, so this will now be another excuse for the Federal Reserve (really the US government) to be more aggressive with rate hikes, which will end up destroying the economy. This’ll create higher unemployment rates, higher mortgage rates (people default & lose their homes) & higher poverty. This’ll have a knock on effect on the global economy such as the U.K. World Economic Forum - “You Will Own Nothing & Be Happy”
TVC:DXYEducation
by BA_Investments
How to pick winning stockswhen it comes to market analysis there would be an intense argument on what type of aalysis works for the market. While there is no correct answer for this since it all would depend on the individual trader. Some traders prefer technical analysis for several reasons. One key advantage of technical analysis is its focus on price action and market behavior. Technical analysis examines historical price patterns, trends, and chart formations to identify potential trading opportunities. It helps traders understand market sentiment, supply and demand dynamics, and investor psychology. By analyzing price charts and using indicators, technical analysis allows for more precise entry and exit points, helping traders manage risk and maximize profits. Additionally, technical analysis can be used in various timeframes, making it suitable for both short-term and long-term trading strategies. Another advantage of technical analysis is its ability to provide real-time insights. Price movements are reflected in charts and can be analyzed immediately, allowing traders to adapt quickly to changing market conditions. In contrast, fundamental analysis often requires extensive research into financial statements, economic factors, and industry trends, which may not provide immediate or accurate information about price movements. Ultimately, the choice between technical analysis and fundamental analysis depends on individual preferences and trading styles, and many successful traders employ a combination of both approaches. Introduction: Technical analysis is a crucial tool in the arsenal of successful stock traders. It involves analyzing historical price and volume data to make informed decisions about future price movements. By studying patterns, trends, and indicators on price charts, technical analysis helps traders identify potential buying and selling opportunities. This article serves as a comprehensive introduction to technical analysis, covering its basic principles, key components, and its significance in the stock market. What is Technical Analysis? Technical analysis is a method of evaluating securities by examining historical price and volume data. Unlike fundamental analysis, which focuses on factors such as company financials and industry trends, technical analysis is primarily concerned with price action. It assumes that historical price patterns and trends can provide insights into future price movements. Key Principles: Technical analysis is built on several key principles. The first principle is that market prices reflect all available information, including fundamental data and investor sentiment. Technical analysts believe that market participants act rationally, and this behavior is reflected in price patterns. The second principle is that price movements are not random; they follow identifiable trends and patterns that can be analyzed and predicted. Lastly, technical analysts believe that history repeats itself, and patterns that have occurred in the past are likely to occur again in the future. Components of Technical Analysis: Price Charts: Price charts are graphical representations of historical price data. They provide a visual depiction of price movements over time, helping traders identify trends, support and resistance levels, and chart patterns. Common types of price charts include line charts, bar charts, and candlestick charts. Candlestick charts are particularly popular as they provide more detailed information about price action within a given time period. Support and Resistance Levels: Support levels are price levels at which buying interest tends to outweigh selling pressure, preventing prices from falling further. Resistance levels, on the other hand, are price levels at which selling pressure tends to outweigh buying interest, preventing prices from rising further. Identifying these levels is crucial as they help traders determine entry and exit points for their trades. Chart Patterns: Chart patterns are recognizable shapes formed by price movements on a chart. These patterns provide insights into potential future price movements. Common chart patterns include head and shoulders, double tops, double bottoms, flags, pennants, and triangles. By understanding these patterns, traders can anticipate price breakouts, reversals, and continuation trends. Indicators: Indicators are mathematical calculations applied to price and volume data to provide additional insights. There are two main types of indicators: trend-following indicators and oscillators. Trend-following indicators, such as moving averages, help identify the direction and strength of a trend. Oscillators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), help identify overbought and oversold conditions and potential trend reversals. Significance in Stock Trading: Technical analysis plays a crucial role in stock trading for several reasons. Firstly, it helps traders identify entry and exit points for trades, optimizing profit potential and minimizing risk. By studying chart patterns and indicators, traders can spot potential breakouts or reversals and make timely trading decisions. Secondly, technical analysis helps traders gauge market sentiment. Price charts reflect the collective actions of market participants, providing insights into supply and demand dynamics. Lastly, technical analysis can be used in conjunction with other forms of analysis, such as fundamental analysis, to enhance decision-making and validate investment strategies. Conclusion: Technical analysis is a powerful tool in stock trading, enabling traders to make informed decisions based on historical price and volume data. By studying price charts, support and resistance levels, chart patterns, and indicators, traders can identify potential opportunities and manage risk effectively. While technical analysis does not guarantee accurate predictions, it provides a systematic approach to Follow us over the next weeks as we explore topics that will guide you become a better trader and enable you choose the best stocks for your portfolio.
NASDAQ:CROXEducation
by thesharkke
2