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Wave Analysis

An Equation of the Financial Markets in form of an Endless Loop.Elliot Wave Theory claims that Markets form similar patterns of formations on smaller time frames that are visible on higher time frames, (higher/lesser degree). Crowd behaviour which the theorist defined for traders or market participants is predictable in a manner that it ought to cause a definite result after each sequential or circumventing interval. First half of idealised Elliot Wave is Motive Wave, which consists of 5 kinds of movements but majority are in the direction of higher degree trend (3) and 2 the even movements are retracements or corrections from that higher degree trend. For example on a Monthly chart there is an Upward Trend in the markets then at weekly time frame motive wave would have 1,3,5 actionary movements in upward direction and two corrective movements in downward direction. Motive Wave is further categorised with Impulse Sub-Wave and Diagonal Sub-Wave. Impulse Wave is the normal Motive wave whereas the Diagonal Wave forms consolidation in a channel at 3rd level. The Cycle that I have marked on the chart is Elliot Wave Bearish Cycle which consists of 5 Motive Waves( 15 levels of downward trend and 10 corrective retracements in upward trend) plus 3 corrective Waves as in form of 2nd phase or 2nd overall wave of the Cycle. In my calculative assumption the Corrective Waves are ending ending 18200 levels for nifty and began at 16850. I hope I could make this loopic concept a bit clearer.
NSE:NIFTYEducation
by INDEXKING0
7
Trading channelsHello, Channels are great setups to catch reversals. When price trends upward or downward and fits between two parallel trendlines, the chart pattern is called a channel. Channel trading is a popular strategy in financial markets that involves identifying and trading within a channel formation on a price chart. A channel is formed when a financial instrument's price movement oscillates between two parallel trendlines, one acting as a resistance level and the other as a support level. Traders can use channel trading to identify potential buying and selling opportunities. The strategy involves buying when the price reaches the lower trendline (support) and selling when the price reaches the upper trendline (resistance). Traders can also use other technical indicators, such as momentum indicators and moving averages, to confirm their trades. When trading channels, it is important to consider the strength of the channel and the overall trend of the market. A strong channel is one that has been tested multiple times and has a consistent slope. If the channel is weak, it may be more susceptible to breakouts and false signals. Channel trading can be used in a variety of financial markets, including stocks, currencies, and commodities. However, as with any trading strategy, there are risks involved, and traders should carefully consider their risk tolerance and develop a solid trading plan before using this approach in the markets. Good luck
NSENG:WAPCOEducation
by thesharkke
BTCUSD : Technical Indicators and Step-by-Step StrategyHere's a step-by-step strategy for using the 15-minute BTCUSD chart: Step 1: Set up your chart with the chosen indicators 1. Add the 50-period (blue) and 200-period (red) Exponential Moving Averages (EMA) to the Bitcoin price chart. 2. Add Bollinger Bands with a 20-period moving average (green) and 2 standard deviations. 3. Add a volume chart below the price chart. 4. Add the 14-period Relative Strength Index (RSI) in a separate panel below the volume chart. 5. Add the Moving Average Convergence Divergence (MACD) with periods of 12, 26, and 9 in another separate panel. Step 2: Analyze the trend and identify support and resistance levels 1. Suppose the Bitcoin price is above the 50 and 200 EMA, indicating an overall uptrend. If it's below both, it signals a downtrend. 2. For example, if the price bounces off the 50 EMA multiple times, this level acts as a support in an uptrend. In a downtrend, it acts as resistance. Step 3: Use Bollinger Bands to identify buying and selling opportunities 1. On February 10th, 12:45 PM, the Bitcoin price touches the lower Bollinger Band and then moves upwards, representing a potential buying opportunity. Similarly, on February 11th, 4:15 PM, the price touches the upper Bollinger Band and then reverses, signaling a selling opportunity. Step 4: Analyze volume 1. On February 10th, 1:00 PM, a significant increase in volume corresponds to a strong upward price movement, suggesting bullish activity. Step 5: Analyze momentum and trend indicators 1. On February 11th, 9:30 AM to 10:45 AM, the Bitcoin price makes higher lows while the RSI shows lower lows, indicating a bullish divergence, suggesting a potential trend reversal. 2. On February 11th, 11:30 AM, the MACD line (blue) crosses above the signal line (orange), indicating a potential shift to an uptrend. Step 6: Synthesize the information and make a decision 1. Using the previous examples, a possible trading strategy could be to buy when the price touches the lower Bollinger Band and the RSI shows bullish divergence during an overall uptrend, and sell when the price touches the upper Bollinger Band during an uptrend. 2. Entry points: February 10th, 12:45 PM (buy) and February 11th, 4:15 PM (sell). Set stop-loss and take-profit levels based on your risk tolerance and trading plan. Please note that these examples are for illustrative purposes and past performance does not guarantee future results. It is essential to adapt your analysis and trading strategy to changing market conditions and develop a comprehensive understanding of these indicators to make informed decisions.
Education
by Julien_Eche
2
Trade talk with A.IQ1. Your Advise to the experienced traders. As an AI language model, I cannot provide personalized advice to specific individuals. However, here are some general tips that experienced traders may find useful: 1.1 Stick to your trading plan: Experienced traders know the importance of having a solid trading plan and sticking to it. Your trading plan should include your risk management strategy, entry and exit points, and profit targets. Avoid deviating from your plan based on emotions or market noise. 1.2 Continue learning: The markets are constantly evolving, so it's important for experienced traders to continue learning and adapting to changes. Stay updated with market news and events, learn new trading strategies, and be open to new ideas and perspectives. 1.3 Practice good risk management: Experienced traders understand the importance of managing risk. Make sure you understand risk management principles and use tools like stop-loss orders and position sizing to limit your risk. 1.4 Stay disciplined: Trading can be a stressful and emotional experience, but experienced traders know the importance of staying disciplined and keeping their emotions in check. Stick to your trading plan, avoid impulsive decisions, and don't let fear or greed drive your trading decisions. 1.5 Review and analyze your trades: Successful traders are always looking for ways to improve their performance. Take the time to review and analyze your trades, identify areas for improvement, and make adjustments to your trading plan as necessary. Q2. How to trade Head and shoulder patterns? 2.1 The head and shoulders pattern is a technical analysis pattern that is commonly used by traders to identify potential trend reversals. Here are the basic steps for trading a head and shoulders pattern: 2.2 Identify the pattern: The head and shoulders pattern consists of three peaks, with the middle peak (the "head") being higher than the other two (the "shoulders"). The neckline is a line that connects the lows between the shoulders. 2.3 Wait for confirmation: Once you have identified the pattern, wait for a confirmed breakout below the neckline. This confirms that the pattern is valid and increases the probability of a trend reversal. 2.4 Set a stop-loss: Place a stop-loss order above the right shoulder of the pattern to limit your risk if the market moves against you. 2.5 Set a profit target: Calculate the distance between the head and the neckline, and use this to set a profit target for your trade. 2.6 Monitor the trade: Monitor the trade closely and adjust your stop-loss and profit target as necessary. Q3. Do people get rich day trading? While it is true that some traders have become wealthy from trading, it is important to understand that trading is not a guaranteed path to riches. Trading involves risk, and losses are a natural part of the process. In fact, the majority of traders lose money, and only a small percentage are consistently profitable over the long term. Furthermore, becoming a successful trader requires a significant amount of time, effort, and dedication. It's not something that can be achieved overnight, and there are no shortcuts or easy solutions. In addition, it's important to have realistic expectations about trading. While it is possible to make money from trading, it is not a get-rich-quick scheme. Successful traders typically have a long-term perspective, and they focus on building consistent profits over time. In summary, while trading can potentially lead to wealth, it is not a guaranteed path to riches. Trading involves risk, requires a significant amount of time and effort, and success is not guaranteed. As with any other profession, success in trading requires hard work, dedication, and a commitment to ongoing learning and improvement. Q.4 Can you help someone to become a profitable trader? As an AI language model, I can provide educational information and guidance to help someone become a profitable trader. However, becoming a profitable trader requires more than just information and guidance - it requires a combination of knowledge, experience, discipline, and a commitment to ongoing learning and improvement. Some of the ways in which I can help someone become a profitable trader include: 4.1 Providing educational resources on trading fundamentals, technical analysis, risk management, and other key trading concepts. 4.2Assisting with the development of a personalized trading plan based on an individual's unique goals, risk tolerance, and trading style. 4.3 Offering insights into market conditions and potential trading opportunities across a range of asset classes. 4.4 Providing support and guidance on managing emotions and maintaining discipline in the face of market volatility and uncertainty. 4.5 Offering feedback and analysis on trading strategies and performance, with a focus on identifying areas for improvement and optimization. 4.6 It's important to note that becoming a profitable trader is a long-term process that requires patience, discipline, and a willingness to learn from both successes and failures. With the right guidance and approach, however, it is possible to achieve consistent profitability and success in the markets. Q5. Do prayers help in trading? As an AI language model, I do not have a religious belief, but I can provide a general response to your question. Prayer is a personal spiritual practice that may bring comfort and guidance to an individual. However, it is not a guaranteed method for achieving success in trading or any other activity. Trading success depends on a combination of factors, including knowledge, experience, discipline, and a sound trading strategy. It's important to approach trading with a rational and analytical mindset, rather than relying on external factors such as prayer or luck. While prayer may provide emotional support and help manage stress, it is not a substitute for a well-developed trading plan and disciplined approach to the markets. In summary, while prayer may have personal and emotional benefits, it is not a reliable or effective means for achieving success in trading. A disciplined and rational approach to trading, based on sound principles and a well-developed trading plan, is key to long-term success. Q6. How to trade triangle pattern? The triangle pattern is a common chart pattern that occurs when the price of an asset consolidates between two converging trendlines. Trading the triangle pattern involves identifying the breakout direction and taking a position in that direction. Here are some general steps to trade the triangle pattern: 6.1 Identify the triangle pattern: Look for a period of consolidation where the price moves between two converging trendlines, forming a triangle shape on the chart. 6.2 Determine the direction of the breakout: As the price nears the apex of the triangle, it will typically break out in one direction or the other. Look for a breakout that is accompanied by high volume and follow-through price action. 6.3 Enter a position: Once you have determined the direction of the breakout, enter a position in that direction. This can be done through buying or selling, depending on whether the breakout is to the upside or downside. 6.4 Set stop-loss and take-profit levels: It's important to manage your risk by setting stop-loss levels to limit potential losses and take-profit levels to lock in profits. These levels should be based on your risk tolerance and trading strategy. 6.5 Monitor the trade: Keep an eye on the price action after the breakout to ensure that it continues to move in your favor. If the price fails to continue in the breakout direction, it may be wise to exit the trade with a small loss. 6.6 Consider other factors: It's important to consider other factors, such as market conditions and economic events, that may affect the price of the asset. This can help you make more informed trading decisions. In summary, trading the triangle pattern involves identifying the breakout direction and taking a position in that direction while managing risk through stop-loss and take-profit levels. However, it's important to consider other factors that may affect the price of the asset and to monitor the trade closely to ensure that it continues to move in your favor.
Education
by Aadil1000x
LOOKING FOR TRADESHello, Looking for trades using structured patterns is very helpful in trading the markets. The above/below shows how you can identify this moves for you to be aware of what to expect. An impulse is a strong move in one direction mostly referred to as the trend. From this its clear that we are in a downward trend for this stock. Tradingview also allows you to check and review Financial statements of cos by just clicking on any earnings date. This tells you where a company is at and where it is going. Good luck
NASDAQ:RIVNEducation
by thesharkke
2
🌊 Elliot Wave Cheatsheet📍 What Is Elliott Wave Theory? In technical analysis, the Elliott Wave theory is the analysis of long-term trends in price patterns and how they correspond with investor psychology. These price patterns, referred to as ‘waves’, are built on specific rules that were developed by Ralph Nelson Elliott in the 1930s. Specifically, they were designed to identify and predict wave patterns within stock markets. Importantly these patterns are not intended to be certain, but instead provide probable outcomes for future price movements. 📍 How Do Elliott Waves Work? Within Elliott Wave theory, there are different forms of waves, or price formations, from which investors can glean insight. Impulse waves, for example, include both an upward or downward trend that carries five sub-waves that may last hours or even decades. They possess three rules: the second wave cannot retrace more than 100% of the first wave; the third wave cannot be shorter than wave one, three, and five; wave four cannot surpass the third wave ever. Along with impulse waves, there are corrective waves, which fall in patterns of three. 📍 Impulse Wave The impulse wave in Elliott Wave Theory is the wave that pushes the prices in the same direction as the trend at one larger degree. It’s the action wave. While the corrective wave is the reaction to the first wave. Therefore, the corrective wave moves in the opposite direction of the main trend. The impulse wave is composed of 5 waves according to certain conditions & rules. Impulse waves are always composed of five waves, labeled 1,2,3,4,5. Waves 1,3 & 5 are in the direction of the main trend. Whereas, waves 2 & 4 are in the opposite direction 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Objective Logic for Swing Highs and Swing Lows█   OVERVIEW This is an introduction to my idea of objective swing highs and swing lows. The objective logic for swing highs and swing lows I hope will form somewhat of a foundational building block for traders, researchers and developers alike. Not only does it facilitate the objective study of swing highs and swing lows it also facilitates that of ranges, trends, double trends, multi-part trends and patterns. The logic can also be used for objective anchor points. Concepts I will introduce and develop further in future publications. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a high price equal to or above the price it opened. • A red candle is one that closes with a low price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of green candles followed by a single red candle to complete the swing. • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Peak and Trough Prices (Advanced) • The advanced peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the highest preceding green candle high price, depending on which is higher. • The advanced trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the lowest preceding red candle low price, depending on which is lower. Green and Red Peaks • A green peak is one that derives its price from the green candle/s that constitute the swing high. • A red peak is one that derives its price from the red candle that completes the swing high. • A green trough is one that derives its price from the green candle that completes the swing low. • A red trough is one that derives its price from the red candle/s that constitute the swing low. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. █   SWING COUNTER INDICATOR Alongside this publication I have also released an open-source indicator that counts the number of swing high and swing low scenarios on any given candlestick chart and displays the statistics in a table. As can be seen in the example picture above. I have added plots as a visual aid to the swing scenarios listed in the table. Green up-arrows with ‘HP’ denote higher peaks, while green up-arrows with ‘HT’ denote higher troughs. Red down-arrows with ‘LP’ denote higher peaks, while red down-arrows with ‘LT’ denote lower troughs. Similarly, blue diamonds with ‘DT’ denote double-top peaks and blue diamonds with ‘DB’ denote double-bottom troughs. These plots can be hidden via indicator settings. I have also added green and red trendlines as a further visual aid to the swing scenarios listed in the table. Green lines denote return line uptrends (higher peaks) and uptrends (higher troughs), while red lines denote downtrends (lower peaks) and return line downtrends (lower troughs). These lines can be hidden via indicator settings. What I find most fascinating about this logic, is that the number of swing highs and swing lows will always find equilibrium on each new complete wave cycle. If for example the chart begins with a swing high and ends with a swing low there will be an equal number of swing highs to swing lows. If the chart starts with a swing high and ends with a swing high there will be a difference of one between the two total values until another swing low is formed to complete the wave cycle sequence that began at start of the chart. Almost as if it was a fundamental truth of price action, although quite common sensical in many respects. As they say, what goes up must come down. Don't just take my word for it. You can find my indicator on my profile page under scripts, or by searching for Swing Counter in community scripts! █   LIMITATIONS Some higher timeframe candles on tickers with larger lookbacks such as the DXY , do not actually contain all the open, high, low and close (OHLC) data at the beginning of the chart. Instead, they use the close price for open, high and low prices. So, while we can determine whether the close price is higher or lower than the preceding close price, there is no way of knowing what actually happened intra-bar for these candles. And by default candles that close at the same price as the open price, will be counted as green. You can avoid this problem by utilising the sample period filter. The green and red candle calculations are based solely on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES I feel it important to address the mention of advanced peak and trough price logic. While I have introduced the concept, I have not included the logic in my scripts for a number of reasons. The most pertinent of which being the amount of extra work I would have to do to include it in a public release versus the actual difference it would make to the statistics or outcomes. Based on my experience, there are actually only a small number of cases where the advanced peak and trough prices are different from the basic peak and trough prices. And with adequate multi-timeframe analysis any high or low prices that are not captured using basic peak and trough price logic on any given time frame, will no doubt be captured on a higher timeframe. See the example below on the 1H FOREXCOM:USDJPY chart (Figure 1), where the basic peak price logic denoted by the indicator plot does not capture what would be the advanced peak price, but on the 2H FOREXCOM:USDJPY chart (Figure 2), the basic peak logic does capture the advanced peak price from the 1H timeframe. Figure 1. Figure 2. █   RAMBLINGS “Never was there an age that placed economic interests higher than does our own. Never was the need of a scientific foundation for economic affairs felt more generally or more acutely. And never was the ability of practical men to utilize the achievements of science, in all fields of human activity, greater than in our day. If practical men, therefore, rely wholly on their own experience, and disregard our science in its present state of development, it cannot be due to a lack of serious interest or ability on their part. Nor can their disregard be the result of a haughty rejection of the deeper insight a true science would give into the circumstances and relationships determining the outcome of their activity. The cause of such remarkable indifference must not be sought elsewhere than in the present state of our science itself, in the sterility of all past endeavours to find its empirical foundations.” (Menger, 1871, p.45). █   BIBLIOGRAPHY Menger, C. (1871) Principles of Economics. Reprint, Auburn, Alabama: Ludwig Von Mises Institute: 2007.
Education
by theEccentricTrader
2
📚 Elliott Wave Pattern: Flat 🌊●● Flat ❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨 ● A flat always subdivides into three waves. ● Wave A is always a zigzag , flat or combination. ● Wave B is always a zigzag . ● Wave C is always an impulse or a ending diagonal . ❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Wave A is usually a zigzag . ●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙚𝙙 𝙁𝙡𝙖𝙩 ( Exp . FL ) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● Wave B always ends after the start of wave A . ● Wave C always ends past the end of wave A . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Wave B usually retraces 123.6 or 138.2% of wave A , less often — 161.8% . ● Wave C is often equal to 161.8% of wave A , less often — 261.8% . ● The most common type of flat. ●● 𝙍𝙪𝙣𝙣𝙞𝙣𝙜 𝙛𝙡𝙖𝙩 (Runn. FL ) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● Wave B always ends after the start of wave A . ● Wave C never goes beyond the end of wave A . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Within such a flat wave B should end well above the origin of wave A and that means wave C might reflect a 61.8% or even a 100% relationship to wave A . ● A running flat indicates that the forces in the direction of the larger trend at next higher degree are powerful. ● Wave B is usually no more than twice the length of wave A . ● Keep in mind that a running flat is rare. ●● 𝙍𝙚𝙜𝙪𝙡𝙖𝙧 𝙛𝙡𝙖𝙩 (Reg. FL ) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● Wave B never goes beyond beyond the start of wave A . ● Wave B always retraces at least 90 percent of wave A . ● Wave C always ends past the end of wave A . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● The rarest type of flat. __________________________ 🔗 References: Elliott Wave Principal 2005 Trade Waves / Elliott Waves Analysis (TWEWA) 📚 Elliott Wave Guide & Ellott Wave Archive ⬇️⬇️
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
3
Elliot wave counting in the WMT stockHello, Elliot Wave theory is a technical analysis method that is commonly used in trading to analyze price movements in financial markets. It is based on the idea that prices move in repetitive patterns, and that these patterns can be used to predict future price movements. When applied to Walmart stock, Elliot Wave analysis can provide traders with insights into the stock's price movements and potential future trends. According to Elliot Wave theory, price movements in financial markets follow a repetitive pattern that can be divided into five waves. These waves can be used to identify the direction of the current trend and predict potential future price movements. Applying this theory to Walmart stock, a trader may look for the five waves in the stock's price movement and identify potential buying or selling opportunities based on the direction of the trend. By analyzing the patterns and trends in the Walmart stock price, traders can use Elliot Wave theory to make informed decisions about when to enter or exit the market, as well as when to place stop-loss orders to minimize potential losses. As per this chart we are in the corrective phase for more upside. Good luck!
NYSE:WMTEducation
by thesharkke
Elliot Wave Chapter 1: The Overall CycleRule is rule • Impulse wave subdivide into 5 waves. In the chart, the impulse move is subdivided as (1), (2), (3), (4), (5) in minor degree Wave 1, 3, and 5 subdivision are impulse. The subdivision in this case is 1, 2, 3, 4, and 5 in minute degree. • Wave 2 can’t retrace more than the beginning of wave 1 • Wave 3 can not be the shortest wave of the three impulse waves, namely wave 1, 3, and 5 • Wave 4 does not overlap with the price territory of wave 1 • Wave 5 needs to end with momentum divergence
OANDA:XAUUSDEducation
by rayshen0411
Trend Channels, One of the best trading strategy 🤓The channel is a powerful chart pattern for trading. Channels combines several forms of technical analysis to provide traders with entry and exiting points as well as risk control. In this training, I will explain one of the simplest trading strategies called " Trend channel trading strategy ". Please note, this post is a summary of this strategy and I only mention its main points. 😏 Types of channels and best for this strategy A channel consists of at least four contact points because we need at least two low points to connect to each other and two high points to connect to each other. In general, there are three types: Channels that are angled up are called ascending channels. Channels that are angled down are descending channels. Channels in which the trendlines are horizontal are called horizontal channels, range channels, trading ranges, rectangle channels. The channels are also divided into three categories according to the time periods who make the price range : Macro channels , which are made with 12-Hour time frame, daily time frame and above. Mini channels , which are made with a time frame from 1-Hour to a maximum of 12-Hour. Micro channels , which are made with time frames of less than 1-Hour. **Tips: 1- Macro channels are made of Mini channels, and Mini channels are made of Micro channels, However, it is only an estimate and may not always be accurate, and they are Not the main rules and condition for Identifying channels or drawing them. 2- There is no special formula or law for naming the channels according to their time frames with these names (Macro, Mini and Micro) and you can use any time period for any type of channel. Trade Reliability Conformations represent the number of times the price has hits the channels trend lines and rebounded from the top or bottom of the channel. These are the important confirmation levels to remember: 1-2: Weak channel (not tradeable) 3-4: Adequate channel (tradeable) 5-6: Strong channel (reliable) 6+: Very strong channel (more reliable) **these numbers are just for each one of trend line (up line or down line of channel). I will write the continuation of this tutorial in the comments of this post. 😎
Education
by Arash-RK
Using different tools to make your analysis easierHello, Tradingview gives you tools you will never find in any platform. The tools are very key in making you a better trader. Below are my favourite tools 1:arrow: This tool is very key because t helps me set and indicate my targets clearly 2:Trendline: This is the yellow line on my chart that helps me identify the charts and make them clear for everyone 3: date & price range tool: This tool is very key to my analysis because it shows me the increase/decrease in percentage terms while it also shows me how many days/hrs it took for that move to happen. Good luck in your journey!
NSEKE:SCOMEducation
by thesharkke
How Wyckoff & Elliot Wave Theory applied togetherMaybe this near "full-stack" technical analysis using Wyckoff and Elliot Theory along with relevant indicators such as Moving Average and Cumulative Volume Delta (CVD) will puzzled some of the traders who used to have a simpler analysis on the market. But to those who curious this is something that is really interesting to know. The chart above is showing us how the two theories can be complementary to each other. Lets analyze the chart above of BTC/USD in 4h timeframe from left to right comprehensively based on the Wyckoff phases of the 2nd accumulation model. Phase A: During the early November of 2022, BTC was under heavy sell-off after Binance dumping hard on FTX where the price crossunder 200 EMA and 100 SMA. The waterfall crash of BTC was printing a 5-wave of zigzag wave. We can see that the lowest point of wave 3 shows the highest selling volume in a single 4h HA candle and also act as Preliminary Support (PS) where then I put the 1st support line there. The sell-off continue to form the last zigzag wave where we can see multiple high selling volume bars and made a very deep negative cumulative volume delta in which it represents as Selling Climax (SC) in Wyckoff. A massive buying then occurred which immediately push the price back up to the wave 4 of zigzag wave area, which in Wyckoff we can name it as Automatic Rally (AR). By using these to extreme high of AR and low of SC we can draw a rectangle to have a better view on the consolidation area. After the dramatic push and pull of price, the market volume gradually decreasing followed by price having a contracting highs and lows, forming a classic contracting triangle, where we can see some of the lows are respecting the 2nd support line. Phase B: The end of contracting triangle followed by another zigzag wave of smaller degree, where it breaks the 2nd support line and creating the second lowest low which we can name it as Secondary Test (ST) that the selling volume is much smaller hence also creating a shallower negative CVD. Price then go up back to the 2nd support line and able to reach back to 100 SMA although still not able to candle close it on the first attempt but eventually able to close it on the second attempt. Price then going on a small rally creating an ascending channel of 5-wave leading diagonal and able to close above the 1st support line, the 200 EMA and even able to make a higher high. But the volume is still not enough to make a change of character breakout. Phase C: The mini rally is identified as the 1st wave of primary impulsive wave, so the reactionary move where the price breaking down the ascending channel, the 1st support line, 200 EMA and 100 SMA and going back down to the 2nd support line can be identified as wave 2. Most of phase C volume going under the Volume Mean Level, it is the lowest volume of all of the phases. Combination of multiple minor corrective waves creating a WXY wave and we can see the 2nd support line is holding the price quite well where it represents as Last Point of Support (LPS). Phase D: The volume and price gradually moving up and able to close above 100 SMA and 200 EMA, then going higher to 1st support line with higher volume to a point of Show of Strength (SOS) where a change of character breakout is formed and also breaking out from the box or the whole Trending Range. Phase D is the perfect time to make an entry. The identifying of the first two waves of an impulsive move also creating a high confidence that we are entering the wave 3 or we can also call it as the money wave. Phase E: Just enjoy the rally This whole chart actually representing a very textbook Wyckoff Theory of the 2nd Accumulation Model and we can also see in this chart the transition between corrective wave and motive wave of Elliot Wave Theory. In Phase A and the early Phase B, the corrective wave is on its end, where the rest of the Phase B to E we can see how the scaffoldings of early structure of an impulsive move is constructed. making a consolidating of accumulation before going a strong trending move. Wyckoff explains this transition of corrective wave to a motive wave in a beautiful way and surely we can also use it on the transition of motive wave to a corrective wave using the distribution model. This is just one variation where we can use Elliot and Wyckoff hand in hand in order to have a much better technical analysis on the market and maybe this combined analysis that I made on the above chart could be the best scenario to apply for both theories. Hopefully this helps to educate for anyone of you who read this post, thank you
INDEX:BTCUSDEducation
by derahmanov
STX - Corrective wave endedWe can see how we clearly have 5 waves (Yellow line) with 3 impulsive moves. We can observe how each impulsive move is followed by another 5 clear waves with its respective higher highs (Blue Aqua line). Those are then followed by 5 corrective waves also (Qhite line). Adding 2 Fib retracement patters we get a range of what, in my opinion, could be the bottom for the current corrective wave we are experiencing right now. We the get a price range between the short term move fib (38.20%) and the long term fib (23.60%). What could be next? This should come followed by a new 5 small waves and possibly form another 5 corrective waves, creating a new accumulation schematic. Like and follow Raf
Education
by Cryptplosive
2
The Essence of Trading Games1.The essence of trading games is constantly seeking the optimal strategy in a dynamic and changing environment. 2.The essence of trading is a group game. To trace it back, it is about constantly evaluating the amount and inclination of potential buyers outside the market, against the amount and inclination of chips held inside the market. Buy when the former is greater than the latter, and sell when the latter is greater than the former. The reasoning for buying inclination mostly comes from the effect of making profits, while the reasoning for selling inclination mostly comes from the effect of losing money. Then, combined with the overall market trend and the current hot spots, instant operational judgments are made. Operations are instantaneous while judgments are dynamic. 3.The essence of stock price movement is a game between holders and fund raisers. One should understand the motivations of both parties and position themselves on the active side. As the market sentiment shifts from limited downside to disappointment and exiting, the emotional part of the chips held inside the market gradually dissipates. At the same time, outside funds gradually accumulate. When the moment of market sentiment reversal arrives, funds will flock in, and this process will continue to repeat. If there are any regularities in the stock market, this process of emotional transformation is one of them and will not change greatly within the next thousand years. 4.During a strong market, the logic of buying stocks is that capital under the effect of making profits continuously enters the market, so the probability of selecting strong targets by later funds is high. Therefore, strong targets are chosen. During a weak market, the logic of buying stocks is that the spreading effect of losing money in the market leads to the continuous outflow of panic-selling. Thus, only a small amount of buying can push prices up. Therefore, buying at a low price is advisable. 5.Studying history provides insights into the rise and fall of things. This is also true for the stock market. Once the regularity of the rotation of past hotspots is grasped, the accuracy of natural expectations will improve. 6.If one understands the heart of the market, success will follow closely. If one's heart is controlled by the market, failure will persist. 7.Not all phenomena can be explained, but some have universal regularities. For example, the good timing for left-trading is after a continuous decline followed by a collective sharp decline. One should be particularly careful when there is a collective limit up after a continuous increase.
Education
by Ice_and_Fire1
Harmonic Bat Pattern for traders can apply on any time frameThe Bat is defined by the .886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities: Move AB should be the .382 or .500 retracement of move XA. Move BC can be either .382 or .886 retracement of move AB. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consequently, if move BC is .886 of move AB, then CD should be 2.618 extension of move BC. CD should be .886 retracement of move XA.
Education
by BasharatAliMaher
4
wyckoff Accumulation 1 can apply on any timeframe PS—preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR—automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Note: Springs or shakeouts usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements: Accumulation Schematic 1 depicts a spring, while Accumulation Schematic 2 shows a TR without a spring. Test—Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. SOS—sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. LPS—last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU—“back-up”. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level
Education
by BasharatAliMaher
Redistribution schematic 1 PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by the public being filled by professional interests at prices near a top. A BC often coincides with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. AR—automatic reaction. With intense buying substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of the distribution TR. ST—secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. For a top to be confirmed, supply must outweigh demand; volume and spread should thus decrease as price approaches the resistance area of the BC. An ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs before quickly reversing to close below resistance. After a UT, price often tests the lower boundary of the TR. SOW—sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. LPSY—last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. UTAD—upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution Schematic #1 contains a UTAD, while the TR in Distribution Schematic
Education
by BasharatAliMaher
wyckoff Redistribution always we can fin in Down Trends A Distribution is a range-bound price structure that precedes a markdown (downtrend) after completion of the prior uptrend. Re-accumulations often scare traders and investors into believing that a Distribution is forming which can cause them to exit their positions. Re-accumulations form repeatedly in a major uptrend. Distributions, on the other hand, result in a reversal of trend into what Wyckoffians call a Markdown Phase.
Education
by BasharatAliMaher