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Wave Analysis

Broadening Formations and Order BlocksLast cycle price bottomed 59 days before halving. I expect lots of traders to be aware of this fact and buy around that time which is around February 16. Given this knowledge I propose buying before this day in order to "Front Run" those traders. If you expect a huge wave of buyers are coming in anticipation of the halving you want to buy before them because they will push up the price making it more expensive for you later on. Additionally, at the start of the year there tends to be lots of new institutional buying due to rebalancing and new allocations from larger players. This is why I have highlighted the region from Dec 28 to Feb 16 as the key time to pay attention to look for a bottoming formation. It encompasses some time just before the start of the year that gets you ahead of institutional money and about a month and a half before Feb 16 which is 59 days before the halving, this gets you ahead of Traders buying in anticipation of Halving. During this Date Range I will look for a bottoming formation which is a sharp rejection from some of the Order Blocks in Blue OR sharp rejection from Broadening Formation support lines (in downward sloping in blue, there are 3 of them.) For the latter it does not necessarily have to touch the support line once it drops below a prior touch of that line you can start looking for reversal patterns. Using OBs there are 3 main levels just under 20k, 15k-17k, and just under 12k. The OB just under 20k that includes the low from March corresponds to a fib retracement between .618 and .786 which is the target entry zone after a market structure shift which occurred at the start of the year once we started seeing Quarters with Higher Lows and Higher High instead of Quarters with Lower Highs. However Smart May want to manipulate the price lower to get better fills. The 1 Week OB in Blue just under 17k and in Bold indicates its high degree of validity because it has not been revisited and has a FVG just above it (because there is no overlap between that Red Weekly Candle and the 2nd Weekly Candle after that). It seems even more valid because there was a very strong markup on the 2nd Weekly Candle after that. There is very strong evidence to suggest this was a Smart Money accumulation level too because of the Markdown --> Accumulation --> Markup pattern that played out. Overall, just under 17k is a zone with strong Institutional Demand. It could include a drop to just under 15.4k to sweep the lows as there tends to be retail liquidity around swing lows. A third possibility is just under 12k to touch the lowest Order Block, which is the last Red 1 Month Candle before a strong rally that left behind a FVG. This would also correspond to lowest broadening formation support line. In summary between Dec 28 and Feb 16 I will look for a reaction at these key price levels just under 20k, 15k-17k, and just under 12k to buy Bitcoin. One strategy could be to buy 20% of your desired position at just under 20k, 60% at 16k, and the remaining 20% at just under 12k if it reaches. Which level do you think is most likely? How would you go about buying it?
COINBASE:BTCUSDEducation
by rorodr
Ichimoku Waves + Japanese PatternExample of how to combine Ichimoku Wave with Japanese patterns. Important Notes: The best practice is to calculate waves or J-Patterns in a Daily chart (It Can Be Done in 4H) find the targets in the Daily or 4H chart for Long Term Trades Use a lower time Frame for Swing or Scalp Trading Remember that after a series of J-Patterns, the P & Y will appear to change the cycle(Trend), Or enter the new Zone, and continue the Bullish or Bearish Trend.
Education
by Chris_Japsian
15
Ichimoku Wave Theory's | Time CycleA set of equations AB=C A=C C=B(AB) A=B+C can be used to create waves that can be applied to every high and low or trend cycle. Combining these waves with Japanese Patterns can help to create more accurate TP and exit points. Some tips for better results include using the nearest Japanese/Japsian number if the numbers are shy of the main Japanese Number. For instance, instead of using A=60, use A=63. Similarly, use AB=99 instead of AB=97. Below are some Japsian Key Numbers that can be used to enter new cycles and create better results: - First Cycle: 9, 17, 26 - Second Cycle: 35, 44, 52, 63, 72, 77 - Entering New Cycle: 90, 99, 108, 129, 153, 216
Education
by Chris_Japsian
22
🔍 Understanding the Volatility Crush: Navigating ETH Recent PA Hello, traders! In the ever-evolving world of cryptocurrency, we often encounter intriguing phenomena like the "volatility crush." 📊 🔍 What is a Volatility Crush? A volatility crush occurs when the price of an asset, in this case, Ethereum (ETH), experiences a significant reduction in its price volatility. It's like the storm clouds clearing after a turbulent period, leading to calmer, less erratic price movements. 💡 Recent ETH Price Action: Indeed, as you've observed, ETH exhibited rapid price movements at the end of last month. However, at the start of this month, there's been a noticeable decrease in trading volume and price volatility. This suggests a potential volatility crush in progress. 🌪️ Adaptability in Wild Times: So, how can traders adapt during such times of reduced volatility? Diversification: Consider diversifying your portfolio beyond ETH. Explore other cryptocurrencies or assets to spread risk. Risk Management: Tighten your risk management strategies. Lower leverage and set stop-loss orders to protect your capital. Stay Informed: Keep a close eye on news and developments. Crypto markets are sensitive to external factors, and unexpected news can spark volatility. Patience: Be patient. Reduced volatility doesn't mean inaction. It might be a good time to reassess your long-term goals and strategies. Education: Continuously educate yourself about market dynamics. Understanding the underlying technology and market sentiment can guide your decisions. Remember, adaptability is the name of the game in the crypto world. The ability to shift your strategies as market conditions change can help you not only survive but thrive in wild times. Stay vigilant and trade wisely! 🚀📉 #CryptoInsights #VolatilityCrush #Adaptability #ETHPriceAction
Education
by GMthepipgod
Learn What is Impulse & Retracement Legs | Price Action Basics Hey traders, As you asked me, in this educational post we will discuss some price action basics. No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis. You should always know where the market is going, if it is bullish or bearish. One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements. ➖ The impulse leg is a trend-following move. It is characterized by heightened movement dynamics and speed. Usually the completion point of the impulse: sets a new lower low in a bearish trend, sets a new higher high in a bullish trend. ➖ A retracement leg is a correctional movement within the trend. Its’ initial point is the completion point of the impulse or retracement leg and its completion point might be an intitial point of a new retracement leg or of a new impulse leg. In the picture above, USDJPY is trading in a bullish trend. Bullish moves are called the impulses and bearish moves are called the retracements because bearish movements complete within the ranges of the bullish impulses. In the example above, AUDCHF is trading in a bearish trend. Bearish moves are called the impulses and bullish ones are called the retracements. Usually, a retracement leg is characterized by a slow zig-zag movement. Usually the completion point of the impulse leg: sets a lower high in a bearish trend, sets a higher low in a bullish trend. Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns. Hey traders, let me know what subject do you want to dive in in the next post?
COINBASE:BTCUSDEducation
by VasilyTrader
4
THE ART OF RANGE MANAGEMENT - WITH THE TREND OR AGAINST Hey Everyone, Here at GVFX, we are currently buying dips. What that means is that we buy on the dips and therefore only concentrate on long positions/buys with the odd sells for fun. As mentioned before, having both sell and buy positions open in your account will affect your psychology and in turn, your trading decisions. Now a question that typically arises here is why would it still be advisable to buy when the market is pushing down? Firstly, let me assure you that the same algorithms, experience and strategies that we use to achieve a 97% hit rate with our bullish directional bias also gives us the heads up, or down if you will, on when the market is going down. Don't think for a moment that we only know how to analyse a bull market or up trends. We share targets/signals for both buys and sells but choose not to hedge out of choice. Our published results remain consistently profitable month in month out!! In my experience, in the current market conditions, it is much safer to get out of a stuck buy position than a stuck sell position. That's not to mention the clean PSYCHOLOGICAL PROFILE that is achieved when trading in just one direction. And although hedging can in theory work, it requires years of experience and in the end, is simply not worth the effort. I am more than capable of hedging effectively but the fact that I do not should tell you something. Let us look at an example to further answer the question highlighted above. When you have short-term bearish momentum down, we take buys from key supports or MAs which act as dips. Remember that the market does not go up or down in a straight line (with the rare exception of short-lived parabolic moves). So, when the market is going down and hits one of our key levels, a buy from that point will go back up for 20 to 30 or 30 to 40 pips (this number of pips has been calibrated based on back testing) before resuming back down. You can think of it like this. The market moves in a zigzag manner. The zig is that part of the leg which is going down to create lower lows (if the downward trend is continuing). The zag is that part of the leg which takes a breather and pushes back up with momentum for our entry and quick pip-take range to create a lower high (if the downward trend is continuing) before heading back down again. We catch the right and safest waves (buys) in and out and surf to success. When price hits a key structural support or stops creating lower lows and lower highs, we then reassess for entries with a wider range of pip capture. Hope this post helps our followers to understand how we keep our psychology strong!! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
44
Navigating Grid Bots: Frequently Asked QuestionsHello, traders! I've set aside some time today to address the questions you've sent me via DM. Let's get started! What settings should I use? Find the middle ground – not excessively tight, not much loose. Set your upper and lower limits at about 5% above and below the current market price. This approach ensures you stay comfortably distant from triggering orders, even amidst the exhilarating market fluctuations. How much is your monthly profit range for this strategy? Balancing profit with stability is a delicate dance. In volatility markets, it may be wise to opt for a wider spread - consider 2% to 5%. In calmer waters, you may want to explore a narrower spread of 0.5% to 1.5% for Swiffer profits. The decision ultimately depends on your risk tolerance. How much should I risk from my capital? Your deposit isn't merely a number – it represents your "lives" in the crypto market. A common rule of thumb is to avoid allocating more than 20% to 30% of your total investment in any single trading strategy. It's cushion guards against sudden downturns while affording your trades room to breathe. How can I test it? You should use historical market data to simulate work under diverse market conditions. It's practice fine-tunes your parameters and helps you identify potential pitfalls before real capital is at stake. This feature you can use on Bitsgap :) Stay alert to market fluctuations and be ready to adjust your strategy as needed. Remember that your insight, attention and thorough research are immeasurably valuable. I always pay attention to three factors: Coin volume and volatility (up to 10% and more) News-based influences Examination of EMA behavior – the farther it diverges from the price, the greater the potential for fluctuations. Do you trade with GRID bots? You are welcome to write in the commentary below! I always appreciate your likes and subscriptions!
Education
by Ingwina
2
Mastering Chart Patterns: Unlocking Pro-Level Trading Insights In the dynamic world of financial markets, successful trading demands more than just a basic understanding of price movements. Chart patterns are the secret weapon wielded by seasoned traders to decipher market psychology and forecast future price directions. From the simplicity of triangles to the complexity of head and shoulders formations, these patterns offer invaluable insights into market trends. In this exclusive article, we'll delve into the fascinating realm of chart patterns, revealing the strategies used by pros to make informed trading decisions. Whether you're a novice investor or a seasoned trader looking to elevate your skills, this guide is your ticket to deciphering the language of charts like the pros. **Section 1: Decoding Chart Patterns** Chart patterns are like a language that allows traders to decipher the hidden messages embedded in price movements. By analyzing the historical behavior of asset prices, traders can identify recurring shapes and formations that indicate potential future price actions. These patterns serve as a roadmap, guiding traders to anticipate market sentiment shifts and make informed decisions. In this section, we'll delve deeper into the fundamental concepts of chart patterns, understanding their significance and the insights they offer to traders. **1.1 The Language of Patterns** At its core, chart analysis is about recognizing patterns that repeat over time. These patterns emerge due to the psychological factors driving market participants. Human emotions such as fear, greed, and uncertainty influence buying and selling decisions, giving rise to recognizable formations on price charts. **1.2 Continuation Patterns** Continuation patterns are indicative of a temporary pause in the prevailing trend before it resumes. These patterns suggest that market participants are catching their breath, consolidating their positions, or reevaluating their strategies before the trend's next leg. They are like pit stops during a race, allowing traders to prepare for the upcoming stretch. **1.2.1 Examples of Continuation Patterns** * **Triangles**: Triangles are formed by connecting the highs and lows of price movements with converging trendlines. Symmetrical triangles show a balanced tug-of-war between buyers and sellers, while ascending triangles suggest increasing buying pressure, and descending triangles imply mounting selling pressure. A breakout from a triangle can signal a continuation of the existing trend. * **Flags and Pennants**: These patterns are characterized by a short-term consolidation after a strong price movement. Flags are rectangular, while pennants are small symmetrical triangles. Both indicate a brief pause before the trend resumes, providing traders with opportunities to capitalize on quick price movements. **1.3 Reversal Patterns** Reversal patterns mark a potential shift in the prevailing trend. These formations suggest that the ongoing trend might be losing steam, paving the way for a trend reversal. Reversal patterns are like warning signs that alert traders to potential changes in market sentiment. **1.3.1 Examples of Reversal Patterns** * **Head and Shoulders**: This iconic pattern consists of three peaks – a higher peak flanked by two lower peaks – resembling a head between two shoulders. It indicates a transition from a bullish trend to a bearish one, or vice versa. The neckline, a support or resistance level, confirms the pattern's completion upon its breach. * **Double Tops and Double Bottoms**: Double tops occur when an asset reaches a peak price level twice, signaling a potential reversal from an uptrend to a downtrend. Conversely, double bottoms form when prices hit the same trough twice, indicating a potential reversal from a downtrend to an uptrend. By understanding these basic concepts of chart patterns, traders gain a foundational grasp of how to interpret the language of price charts. Continuation patterns offer insights into temporary pauses within a trend, while reversal patterns hint at potential trend shifts. In the subsequent sections, we'll dive deeper into specific chart patterns, exploring their intricacies and uncovering the strategies employed by professionals to maximize their trading edge. **Section 2: Common Chart Patterns** In this section, we'll dive into some of the most prevalent chart patterns that traders frequently encounter. Each of these patterns provides valuable insights into market dynamics, helping traders make well-informed decisions. By understanding the intricacies of these patterns, traders can gain an edge in predicting potential price movements. **2.1 Head and Shoulders Pattern** The Head and Shoulders pattern is a classic reversal formation that stands out due to its distinctive shape resembling, as the name suggests, a head and two shoulders. This pattern occurs after an uptrend and is composed of three main peaks: 1. **Left Shoulder**: The initial peak in an uptrend, signaling a potential weakening of bullish momentum. 2. **Head**: The central and highest peak, often accompanied by high trading volume. It indicates the last attempt of bulls to push prices higher. 3. **Right Shoulder**: The third peak, usually lower than the head, signifies another failure of bulls to sustain the uptrend. The neckline, a support level connecting the low points between the left and right shoulders, is a critical element of the pattern. A breach of the neckline confirms the pattern's completion and suggests a potential reversal from a bullish trend to a bearish one, or vice versa. **2.2 Double Tops and Double Bottoms** Double tops and double bottoms are twin formations that provide insights into potential trend reversals: * **Double Tops**: This pattern occurs after an uptrend and forms when an asset reaches a peak price level twice. It signals that buyers are struggling to push prices higher, and a reversal to a downtrend might be imminent. * **Double Bottoms**: The counterpart to the double top, this pattern forms after a downtrend. It emerges when prices hit the same trough twice, suggesting that sellers are losing momentum, and a reversal to an uptrend could be on the horizon. These patterns are a reflection of the tug-of-war between buyers and sellers and can help traders identify critical support and resistance levels. **2.3 Triangles** Triangles are consolidation patterns that indicate a temporary balance between buyers and sellers. There are three main types of triangles: * **Symmetrical Triangles**: Formed by connecting lower highs and higher lows with converging trendlines, symmetrical triangles suggest uncertainty in the market. Traders watch for a breakout, which can lead to a continuation of the existing trend. * **Ascending Triangles**: Comprising a horizontal resistance level and an upward-sloping support line, ascending triangles indicate increasing buying pressure. A breakout above the resistance level could signal a bullish move. * **Descending Triangles**: The opposite of ascending triangles, descending triangles have a downward-sloping resistance line and a horizontal support level. This pattern suggests mounting selling pressure, and a breakdown below the support level might lead to a bearish move. **2.4 Flags and Pennants** Flags and pennants are short-term continuation patterns that provide traders with opportunities to capitalize on brief pauses within an ongoing trend: * **Flags**: These patterns resemble rectangular flags and are formed by parallel trendlines. Flags indicate a temporary consolidation before the trend resumes. Traders often look for a breakout from the flag pattern to enter trades in the direction of the prevailing trend. * **Pennants**: Pennants are small symmetrical triangles that form after a strong price movement. Similar to flags, they signal a brief consolidation period before the trend continues. Traders watch for a breakout from the pennant pattern to make trading decisions. By familiarizing themselves with these common chart patterns, traders can harness the power of historical price movements to predict potential future trends. Each pattern provides unique insights into market sentiment and dynamics, giving traders a strategic advantage when making entry and exit decisions. In the subsequent sections, we'll delve into more advanced chart patterns and explore the strategies used by professionals to extract maximum value from these formations. **Section 3: Advanced Chart Patterns** In this section, we'll explore more sophisticated chart patterns that can provide traders with deeper insights into market movements. These advanced patterns offer opportunities to forecast trend continuations, reversals, and potential breakout movements with increased accuracy. By understanding and mastering these patterns, traders can elevate their trading strategies to a new level of sophistication. **3.1 Cup and Handle Pattern** The Cup and Handle pattern is a longer-term continuation formation that often indicates a bullish trend continuation. This pattern resembles a teacup with a handle and consists of two main components: * **Cup**: The cup forms a rounded bottom, resembling a semicircle or a "U" shape. It indicates a gradual shift from a downtrend to an uptrend, where the asset's price recovers. * **Handle**: Following the cup formation, a brief consolidation occurs, forming a handle-like structure. This handle represents a short-lived pullback before the uptrend resumes. Traders often consider a breakout from the handle as a signal to enter a long position, expecting the bullish trend to continue. **3.2 Wedges** Wedges are patterns characterized by converging trendlines, suggesting a potential breakout in the near future. There are two types of wedges: * **Rising Wedge**: This pattern features a series of higher highs and higher lows, but with the upper trendline slanting more steeply than the lower trendline. A breakout below the lower trendline indicates a potential trend reversal or downward breakout. * **Falling Wedge**: The falling wedge has a series of lower highs and lower lows, but the lower trendline is steeper than the upper trendline. A breakout above the upper trendline suggests a potential reversal or upward breakout. Wedges can provide traders with insights into potential breakout directions, depending on the type of wedge and the prevailing trend. **3.3 Gartley and Butterfly Patterns** Gartley and Butterfly patterns are examples of harmonic patterns, which combine Fibonacci ratios and price symmetry to forecast potential trend reversals. These patterns are based on the idea that markets move in repetitive and predictable cycles. * **Gartley Pattern**: This pattern resembles the letter "M" or "W" on price charts. It consists of specific Fibonacci ratios that define the length of each leg of the pattern. Traders watch for a completion of the pattern, which can signal a potential reversal in the market. * **Butterfly Pattern**: Similar to the Gartley pattern, the Butterfly pattern is characterized by specific Fibonacci ratios that create a distinct shape. This pattern also indicates a potential trend reversal. Harmonic patterns require precision in identifying Fibonacci ratios and symmetry, making them a more advanced tool for experienced traders. By delving into these advanced chart patterns, traders can refine their skills and gain a deeper understanding of market dynamics. These patterns provide valuable insights into longer-term trend continuations, potential reversals, and breakout movements. As traders become proficient in recognizing and interpreting these formations, they can leverage their insights to make well-informed trading decisions that align with their overall trading strategies. **Section 4: Pro-Level Strategies** In this section, we'll delve into the strategies that elevate traders to a professional level by enhancing their chart pattern analysis. These strategies go beyond mere pattern recognition, providing a comprehensive framework for making informed trading decisions, managing risks, and adapting to changing market conditions. **4.1 Confirmation and Validation** While chart patterns provide valuable insights, it's essential to confirm their validity using additional tools and analysis techniques. Professional traders rely on the following methods to enhance the reliability of their trading decisions: * **Technical Indicators**: Incorporate technical indicators such as Moving Averages, Relative Strength Index (RSI), and MACD to corroborate the signals generated by chart patterns. For instance, a bullish chart pattern supported by bullish divergence on the RSI can provide stronger confirmation. * **Volume Analysis**: Analyze trading volume accompanying the pattern's formation. High volume during a breakout or reversal can validate the pattern's strength, indicating higher market participation. * **Price Action**: Study price behavior around key support and resistance levels to confirm the pattern's integrity. A pattern that aligns with significant price levels gains added credibility. By integrating these confirmation techniques, traders can reduce the chances of false signals and increase the accuracy of their trading decisions. **4.2 Risk Management** Managing risk is a cornerstone of professional trading. When trading based on chart patterns, risk management becomes even more crucial. Here are key risk management practices: * **Stop-Loss Orders**: Set stop-loss orders at logical levels, such as below support for bullish trades and above resistance for bearish trades. This protects capital by limiting potential losses in case the trade goes against you. * **Position Sizing**: Determine the appropriate position size based on your risk tolerance and the distance to the stop-loss level. Never risk more than a predefined percentage of your trading capital on a single trade. * **Diversification**: Spread your capital across different trades and instruments to minimize the impact of a single trade's outcome on your overall portfolio. * **Risk-Reward Ratio**: Aim for trades with a favorable risk-reward ratio. Professional traders typically seek trades with a potential reward that outweighs the risk by a certain multiple, like 2:1 or 3:1. **4.3 Pattern Failure and Adaptation** Not all chart patterns play out as expected. Professional traders understand that pattern failures are part of trading and have strategies to adapt: * **Cutting Losses**: If a trade based on a pattern starts moving against you and violates key levels, it might be time to exit. Professionals accept that not all trades will be winners and prioritize protecting capital. * **Adaptive Strategies**: If a pattern fails, consider adjusting your strategy based on new price developments. For instance, a failed bullish pattern might turn into a range-bound scenario, offering alternative trading opportunities. * **Market Context**: Always consider the broader market context. A pattern might fail due to unexpected news or changing market dynamics. Adapt your strategy based on the bigger picture. Professional traders understand that flexibility and adaptability are vital traits. Being prepared to pivot when patterns don't unfold as expected is a hallmark of a seasoned trader. By mastering these pro-level strategies, traders can enhance the accuracy of their trading decisions, manage risks effectively, and navigate the complexities of ever-changing markets. These strategies serve as the bedrock for maintaining consistent profitability and evolving as a successful trader over the long term. **Section 5: Putting Theory into Practice** In this final section, we'll bridge the gap between theory and real-world trading by delving into practical applications and guiding you through the process of creating a robust trading plan that integrates chart pattern analysis, risk management, and your individual trading objectives. **5.1 Case Studies** Case studies provide tangible evidence of how chart patterns can be successfully employed to navigate different market situations. By analyzing real-world examples, traders can gain insights into the intricacies of pattern recognition, confirmation techniques, risk management, and adaptation strategies. These studies highlight the nuances of making informed decisions in dynamic market environments. * **Example 1 - Successful Head and Shoulders Reversal**: Explore a case where a head and shoulders pattern accurately predicted a trend reversal. Analyze how technical indicators and volume corroborated the pattern's signals, and see how traders could have managed their positions and risks. * **Example 2 - Failed Cup and Handle Pattern**: Delve into a scenario where a cup and handle pattern did not lead to the expected bullish continuation. Learn how traders adapted their strategies and cut losses to mitigate potential risks. * **Example 3 - Breakout from a Symmetrical Triangle**: Investigate a case study showcasing a breakout from a symmetrical triangle pattern. See how traders identified the breakout point, confirmed it with volume and indicators, and managed their positions to capture the subsequent price movement. By studying these case studies, traders can gain a more nuanced understanding of how to apply chart pattern analysis in real trading scenarios and adapt their strategies based on market dynamics. **5.2 Developing Your Trading Plan** A comprehensive trading plan is the backbone of successful trading. It serves as a roadmap that guides your actions, ensures discipline, and helps you stay focused on your goals. Here's a step-by-step guide to developing a trading plan that incorporates chart pattern analysis: 1. **Define Your Objectives**: Clearly outline your trading goals, risk tolerance, and time commitment. Are you trading for income, growth, or a combination of both? 2. **Chart Pattern Strategy**: Specify the chart patterns you will focus on and the timeframes you'll trade. Define the conditions that must be met for a pattern to be considered valid. 3. **Confirmation Techniques**: List the technical indicators, volume analysis, and price action methods you'll use to confirm pattern signals. 4. **Risk Management Rules**: Detail your risk management rules, including stop-loss placement, position sizing, and risk-reward ratios. 5. **Adaptation Strategy**: Describe how you'll adapt your strategy in the event of a failed pattern or changing market conditions. 6. **Trade Execution Plan**: Outline your entry and exit criteria. Determine how you'll enter trades once patterns are confirmed and how you'll exit to secure profits or limit losses. 7. **Journaling and Review**: Emphasize the importance of maintaining a trading journal to track your trades, decisions, and emotions. Regularly review your journal to identify areas for improvement. 8. **Backtesting**: Test your trading plan using historical data to assess its effectiveness and refine your strategy. 9. **Continuous Learning**: Highlight your commitment to ongoing education and staying updated on market trends and developments. 10. **Emotional Control**: Detail strategies to manage emotions like fear and greed, which can impact decision-making. Creating a trading plan tailored to your skills, goals, and risk tolerance helps you approach trading with discipline and consistency. It provides a framework to make objective decisions based on a well-defined strategy rather than impulsive reactions. Conclusion: The journey through this guide has unveiled the intricate world of chart patterns, transforming theory into practical tools that empower traders to navigate financial markets with confidence. By immersing you in real-world examples and guiding you through the process of crafting a comprehensive trading plan, we've bridged the gap between theory and application. Mastering chart patterns is a transformative skill that separates seasoned professionals from the crowd. These visual cues serve as a unique window into market sentiment and price movements, offering traders a distinct advantage when making informed decisions. Armed with the knowledge of various chart patterns, the application of advanced strategies, and the lessons gleaned from practical examples, you are poised to unlock the potential to trade like a pro. Whether you're a novice seeking to elevate your trading acumen or an experienced trader looking to explore new dimensions of market analysis, this article stands as your indispensable guide. It equips you with the tools to navigate the complexities of financial markets, make informed trading decisions, and pave your way to success. As you embark on your trading journey, remember that mastering chart patterns is not just about understanding shapes on a chart – it's about deciphering the language of the markets and transforming that knowledge into profit. TCPLTP
VANTAGE:XAUUSDEducation
by TradeChartPatternsLikeThePros
2
Trading Lesson 👨‍🏫#2 - Understanding Consolidations in CryptoIn today's lesson I will explain the difference in consolidations. Some of you are new to the market and are probably wondering what's happening exactly when it's not moving in price and when it's moving down more than up but would later return to the last price it was. Well to best answer that question. It's called consolidation: It's a thing that happens in the crypto market where waves of prices fluctuate up and down calculating the sells and buys of the market until it meets a point of exit - after consolidating the actual price of the market you're in, and only has two places it can go. There are two types of consolidation. The first is where it does a price correction where you have rapid 📉drops or rapid 📈rises. An lastly is a repeated wave🏄🏼‍♀️ that can run in the same location for a few hours, sometimes days, give or take how many orders were made within the past few minutes - hours - days - weeks or months. Consider it like a balloon🎈 being blown into until it 💥pops!💥 Now this is where the problem begins - we don't know where it may go once it's done, could go up or down and when that balloon has popped it's rapidly going there. We could see the 0.00002000 - range within a few hours or just see 0.00000900 range within a few minutes, depending on the orders made for shib and the rest of the market as a whole, this can last for days, weeks depending on the amount of buys or sells. Also note these are when you get the same surprise jumps like we did in 2021. It started off from the 850's and jumped to the 0.00001300 within a day. However; right behind it, is a price correction waiting for a peak in the returns to meet its end. Once that happens it'll just fall or rise back to where the price actually suppose to be and starting the process all over again. You may not know it but there are all forms of consolidations on ever chart from 1 minute to 4 hours to 1 day to 12 months. You're in a consolidation right now and you don't even know it. Like the ones that occur on a weekly chart, This is what I call "a Seasonal Trend" the day, week, or month, is in a seasonal consolidation and is trending high or low. But note anything can stop a seasonal trend and disrupt the flow of it, but it will continue the process as long as the damage done was not to bad such as major crashes in a seasonal up trend due to outside interferences such as massive sell-offs, regardless it'll still attempt to rise back because it's in a wave that's trending up-word, if the wave was trending down then it would do way more damage than expected. But the worst thing to do in a consolidation day - is to sell while it's consolidating, the price may not go no higher or no lower, and if you sell while at a low price in a consolidation you will likely lost position and will have to wait for it to finish to get more shares let alone the original shares, that's if it drops, so best to hold while in a consolidation day, at least until closing. So I hope this answers anyone question as to why your crypto stock of choice is not moving anywhere, it may not move for hours or even days. you'll just have to wait for closing hour to see if it will pop - hopefully on a positive outcome. So Happy Trading Everyone
Education
by Grandmaster_Oz
U.S. Dollar Index (DXY)The US Dollar Index (also known as DXY or USDX) measures the value of the US dollar against a basket of foreign currencies. Therefore, it provides us with an insight into whether the dollar is strengthening or weakening compared to other major currencies. This index has a positive correlation with currency pairs where the dollar is the base currency. Conversely, there is an inverse correlation. The DXY or USDX measures the exchange rate of the US dollar against 6 currencies. The currency with the most weight in its composition is the euro. It is a key indicator in analyzing the value of the dollar to determine its trend. Additionally, it can be used to study the global macroeconomic situation, as well as to gauge the level of economic and financial uncertainty at a particular moment. (🇬🇧)
TVC:DXYEducation
by FinanzasTip
1
Overview of the Elliott Wave TheoryThe theory of Elliott Waves, an intricate subject we've delved into in previous posts, beckons me once more to distill its essence. Let's gather the pivotal elements anew, unraveling the complexities to forge a deeper understanding. Elliott Waves exhibit fractal characteristics. Each wave possesses segments that closely resemble the entire wave, a quality known in mathematics as "self-similarity." A trending market adheres to a distinct 5-3 wave structure. The initial 5-wave pattern is termed the impulse wave. One among the three impulse waves (1, 3, or 5) always extends, with Wave 3 typically being the elongated one. The subsequent 3-wave pattern is recognized as the corrective wave, denoted by letters A, B, and C in lieu of numbers for tracking the correction. Waves 1, 3, and 5 consist of smaller 5-wave impulse patterns, while Waves 2 and 4 are comprised of lesser 3-wave corrective sequences. While there exist 21 varieties of corrective patterns, they fundamentally stem from three straightforward and comprehensible formations. These core corrective wave shapes encompass zig-zags, flats, and triangles. Three fundamental principles define the labeling of waves within the Elliott Wave Theory: First Principle: Wave 3 must NEVER be the shortest impulse wave. Second Principle: Wave 2 must NEVER surpass the commencement point of Wave 1. Third Principle: Wave 4 must NEVER overlap with the price region of Wave 1. Upon thorough chart analysis, you'll observe that the market indeed advances in waves. Since the market seldom conforms precisely to theoretical models, honing your ability to analyze waves requires extensive practice over numerous hours before you find yourself at ease with Elliott waves. 🙌🏻Persevere diligently and remain steadfast in your pursuit!Happy trading! Your Kateryna💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
3
Elliott Wave C/3 Entry Model ExampleIf you find this information inspiring/helpful, please consider a boost and follow! Any questions or comments, please leave a comment! Also, check out the links in my signature to get to know me better! Elliottwave and Elliotwave 3/C Entry Model. This is the minimum you should consider doing when laying out,"on paper", your favorite/profitable trade setups. Especially if it is new to you. More can be added as you see fit. I left most of my other confluences off TBH.
Education
by CryptoKnee
How I entered the world of the Elliot Wave Principle!Hello, friends. I wanted to share that I've been studying the Elliott Wave principle for three years now. Initially, I began with Kendel and binary options, but I always strive to find the right path when I enter a profession. I've also worked with Price Action, which I found to be good and preferable to using candles. However, I discovered Elliott Wave through a video where someone explained its complexity and how it takes at least a decade to master. I appreciate all the support and comments you've provided throughout my journey. Thank you! I created an account on Trading View and on that day, I was closely observing the euro to dollar market. I noticed there were five waves going up, but then I questioned what would happen next - would there be three waves followed by a pullback before continuing the upward trend with five more waves? It was a bit confusing! I have returned to using the price action style after a three-month break. While observing the market, specifically the EUR/USD chart, I revisited the same chart that I had previously analyzed using the Elliott wave principle. I have dedicated countless hours to learning about the Elliott wave principle and gaining valuable experience. Friends, please forgive me if my opinions may differ and cause confusion. Sincerely! My approach to the market is similar to playing chess with unknown outcomes. However, I consider various possibilities and rely on three key ideas to guide my decisions. According to Mr.Jeffrey Kennedy, a top analyst of the Elliott wave principle, professional analysts trade based on probabilities. Wishing you all a productive and successful week ahead. Sincerely, (Mr.Nobody)
Education
by Mehdi_Abbasi_EWP
1
Metrics: Expected Value (EV)Expected Value (EV) is a statistical concept that indicates whether our trading system or strategy will yield positive, negative, or neutral results in the medium or long term. It is based on previous results. As we know, past performance does not guarantee future results, but it helps us get an idea of how it might work and allows us to base our decisions on objective terms. The formula for calculating Expected Value (EV) is as follows: Expected Value (EV) = (Win Rate * Average Win) - (Loss Rate * Average Loss) When interpreting the result, it indicates whether you will gain or lose in the medium or long term per unit of currency at risk. An example: A trader achieves an expected value of 0.5 with their trading operations. This means that every time they risk 1€ in the market, they gain 0.5€ in profit.
BITSTAMP:BTCUSDEducation
by FinanzasTip
1
Mastering Elliott Wave: The importance of channelingI wanted to share my thoughts on the significance of using channeling technique in Elliott Wave theory when analyzing charts. To begin, we draw what we call a "base channel," starting from the beginning of wave 1 and extending it to the end of wave 2. This initial channel provides us with a foundation for analysis. The following occurrence of an impulsive breakout beyond this channel signals the initiation of wave 3. At this point, we create a new "Acceleration Channel" to track the movement of wave 3. If this newly drawn channel is breached to the downside, it suggests the possibility of a correction for wave 3 underway. As seen in the picture, the original base channel we drew earlier now acts as a support level for wave 4, accompanied by consolidation around Fibonacci levels. This observation has been witnessed numerous times in the past. When the corrective channel experiences a breakout with above-average volume, it serves as a signal indicating the completion of wave 4. This event provides an opportunity for us to establish Fibonacci targets for profit-taking. In this particular example, I have chosen to draw the corrective channel only on the final leg of the ABC correction, enabling us to catch the breakout at an earlier stage. A more conservative approach, however, would involve waiting for the breakout to occur after wave B has been surpassed. Hope this was helpful for those wanting to learn more about channeling and Elliott Wave.
TVC:GOLDEducation
by Ingvar77
IDEA!CHALENGGreetings, dear friends. I wanted to share with you an interesting idea regarding chart labeling. Instead of labeling the chart, I suggest focusing on your trend line and channel. My analytical tools include the Elliott wave principle, harmonic patterns, chart patterns, and the simple yet powerful trend line. I appreciate all of my companions and followers who support my ideas. It is my hope that the information I provide may be useful to you. Thank you for all of your support and encouragement. Warm regards, Mr. Nobody, with two years of experience
Education
by Mehdi_Abbasi_EWP
1
DCA bot and my experience with it!Hey there, fellow crypto enthusiasts! Welcome to my blog, where we break down the complex trading world into bite-sized knowledge nuggets. Today we're diving headfirst into the exciting strategy of Dollar Cost Averaging (DCA) and how it works with trading bots. Dollar Cost Averaging Demystified Alright, folks, let me break it down for ya. Dollar Cost Averaging (DCA) is an investment strategy that's all about taking it slow and steady. Instead of going all-in at once, DCA has you regularly buying a particular asset, like bitcoin, in small chunks over time. It's like sipping your favorite beverage gradually instead of chugging it down in one go. We want to savor those gains, people! Smooth Sailing through Market Turbulence Here's the kicker, my friends. DCA helps you ride out the crazy rollercoaster of price fluctuations. Picture this: Bitcoin's price takes a nosedive. Ouch, right? But fear not! With DCA, you're buying during the dip, baby! So when the price inevitably bounces back up, you'll sit pretty and reap the rewards. On the flip side, if the price skyrockets, well, you might have some losses when it takes a breather. But fear not again! Since you're investing small amounts regularly, you're not putting all your hard-earned cash at risk. It's like having a financial safety net during those market downswings. Sweet, isn't it? What figures and patterns do I recommend using? Firstly as a continuation pattern, I would like to search for a triangle, flags, and wedge. Also, you can catch the price squeeze and the volume spike to catch the volatility on it. For example, the last setup of that pattern was on $Matic. How I automated trading with the DCA strategy I try to be smart with my time, and after figuring out how DCA works, I regularly practice automation using this strategy. Here are my tips and personal configurations: so, if you want to trade with small leverage, 3x-6x will be enough for you. The maximum risk is 10x. Try to make simple trades, and think about trends at the beginning of your charts. And then you will start to win. Here are the results of trading with the DCA Futures bot As you can see, it's possible to make money with bots. However, it requires understanding of how they work and knowledge of coin analysis. The case is that you free up your time for other things. Also, note that my advice is not a call to action. Everyone is responsible for their own trading decisions. Questions: New trading strategies. Do I analyze myself with VSA indicators, like BOS? ( Break out structure) I often use wedge and triangle patterns with significant consolidations in my work. Once I identify these patterns, I wait for a push of the price increase resulting from the liquidity and then activate my trading bots. This way, I actively participate in the market and observe how my strategies perform. Are you interested in learning more about the settings you can use with the DCA BOT? I'll be happy to share that information with you next time. Hang tight for more mind-blowing posts where I uncover various investment strategies and financial wizardry to help you conquer your financial dreams. I wish you successful trades!
WEducation
by Ingwina