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Wave Analysis

ENGULFING CANDLE | powerful price reversal📚 ✅The engulfing model (external bar) is mainly a reversal pattern (although in rare cases it may indicate a continuation of the trend). It looks like two candles, the first of which is small, and the second is large, with a body larger than the entire previous candle, and directed in the opposite direction. ✅From the point of view of crowd movement, such a pattern means that the strength of the current trend is drying up (this is evidenced by the small size of the first engulfing candle). The crowd does not know in which direction to move and, figuratively speaking, is marking time. The appearance of a powerful candle that absorbed the previous one and closed in the opposite direction marks the beginning of a new, strong trend. ⚠️There are several mandatory conditions that the pattern must meet in order for its signal to provide the maximum probability of working out: 1️⃣Before the pattern itself, there must be a downtrend or an uptrend in the market. The movement may be small, but its presence is mandatory; 2️⃣The body of the second candle should be of a different color and orientation (bearish after bullish and bullish after bearish). Shadows may not be absorbed, but then the signal is considered weaker; 3️⃣The body of the second candle should have a contrasting color with respect to the body of the first. The exception is when the body of the first candle is very small (doji or close to it). ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
7
BTCUSD | What if...?Hello, dear TW community. Today I would like to introduce my "ridiculous hypothesis" about BTC. As we all know, "Elliot Waves" have 5 impulsive moves. If we look at 1M chart, we are easily to see that BTC has never been bear market at all, all humble blocks (2014-15, 2018) that it have been through so far I might call them as "corrections". What if BTC's real bear market comes every 10 years? Then, 1 BTC's worth is equal to me between $110-$1300 right today. Good luck in trades, buddy.
BITSTAMP:BTCUSDEducation
by maximleanke
12
Spread triple top and BottomThe normal triple top has no gaps between the tops. The same philosophy applies in this pattern as in the triple top. In each case, the stock rises to a certain price level and is repelled two times. The third attempt at that price is successful by the stock’s moving through the level shown by a column of X’s exceeding the point of resistance. since the stock was repelled twice at that same level, there are apparently sell orders there. The reason is not important. What is important is that there are sellers at that particular level. The only way to know if demand can overtake the selling pressure is to see how the stock negotiates the level again. simply stated, if the stock is repelled again at this level of resistance, the sellers are still there. You need not know any more. If the stock exceeds that level, then demand has overcome the supply that previously caused it to reverse. This is why we always wait for a particular level to be exceeded before we make a long or short commitment in the stock. Friends, I conduct training in an individual format and in a limited number of students, since a large number will interfere with my trading! The training course includes : The Wyckoff Method Demark method VSA A trading method tailored to your psychotype Psychology of trading For details, write in a personal message I can also introduce you to my own unique indicators , of my own design Wykoff Zone (You determine the activity and zones of smart money and also gives buy and sell signals ) is a Demark indicator that has no analogues on the platform - since most of the indicator are far from the essence of the Demark technique and are too simplified , which violates the basics of the principle For investors, I can shift a 2-week lazy investor course where you can learn how to invest correctly and in which stocks + the tic-tac-toe method supplemented with your own developments taking into account the imbalance of supply and demand
NASDAQ:NUROEducation
by StudentWyckoff
How To Analyze Any Chart From Scratch - Episode 2Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on XRP, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BITSTAMP:XRPUSDEducation
by TheSignalyst
77
BABA, a beautiful example of ANTI complete cycle !BABA is a beautiful example of ANTI complete cycle ! Many Elliott wave practitioners are not aware of different types of wave cycles ! They may consider themselves as a genius in a bull market ( As everyone else !! ) but suddenly thing change and they can not understand what is happening in a stock or market ! On the left side of the chart there is a schematic drawing showing an ascending complete cycle . In this well know wave cycle waves go up in 5 leg and go down in 3 legs. Correction will never go below the start of wave cycle in this type ( does it go in some other types? of course goes ) !!. Many investors and traders were hoping for this cycle ( and may be were not aware of alternatives ) in BABA, opened long position at the possible end of wave 4 at related retracement levels and now have lost huge amount of money !!! An ascending ANTI complete cycle is shown on the right side of the chart. In this cycle waves go up in 3 legs and go down in 5 legs and correction will never go below the start of the wave cycle. Does BABA play like this wave cycle? So far yes. Is there any other alternative ? Of course yes ! please note we have many other types of wave cycle and we just showed two of them here !. For example, we have neutral or descending antic cycles ( for example of descending anti cycle see my related idea about BROS stock ). It is worth to note many Chinese stocks like TIGR and XPEV showed anti cycles and this is not a surprise as BABA is leading Chinese stocks in the market. Things sound complicated? Yes they are ! but we can extract many useful tips among all these complications : 1. Overconfidence is dangerous ! always set stop loss . Things may change suddenly in a way that we did not predict. 2. Be mindful there are many types of wave cycles . Things are not as simple as they may seem at first look. 3. Do not jump blindly into a long position after apparent up going 1 2 3 form of wave ! 4. Retracement more than 50 % in what we consider a wave 4 is a dangerous warning. We can add many other implications to the list by thinking deeply about different types of wave cycles. Hope this publication to be helpful. Good luck every one !
NYSE:BABAEducation
by SaeedSajedi
4
btc usdt perp ending diagonal tutorialIn this tutorial I'll try and explain how to trade an ending diagonal. You would want to see a market that moves in converging channels(at times these can be too steep like those of rising/falling wedges). Next confirm 5 waves with respect to the channel. Waves 1, 3, 5 should make a triple top, whereas 2 and 4 are joined with one diagonal. Divergences are imperative as well, upon wave confirmation, the RSI divergence should support your bias, in this case, it's a medium bearish RSI, as the price rises, the oscillator remains holding the same region. The guidelines for entries and stop losses are simple. Wait for a break of wave 4's extreme and place the initial stop loss slightly above wave 5. At times there is a retest, which pulls back close to where the extreme of the 5th wave, which is ideal for entries and dcaing. Another approach is entering at wave 5. More often than not, wave 3 of an ending diagonal is shorter than wave 1, and wave 5 is shorter than wave 3, since wave 3 can never be the shortest among 1, 3 and 5. There are a lot of profit taking strategies out there. For this setup, I take profits as a whole rather than fib levels. A typical ending diagonal results in a correction(abc) that completely retraces it (i.e wave c terminates where wave 1 begins). Note: for ellioticians, you'll find that with ending diagonals, wave 4 gets into the territory of wave one, which is valid with ending diagonals and usually this is the case where 1>3 and 3>5. Now this is the setup in summary: 1) entry triggers: - ending diagonal - waves 1 - 5 - RSI divergence - triple top - breakout/breakdown 2) entry: (i) at break of wave 4 (ii) at wave 5 (aggressive approach) If opting for ii, make sure wave 1 is longer than 3 and 5 is shorter than 3 3) stop loss: slightly above wave 5( can be adjusted once significant gains have been made) 4) take profit: wave 2, let the price move till it's the same level as wave 2, otherwise use any profit taking strategy of your choice. 5) enjoy the profits ! That's it for this tutorial, take care and thanks for dropping by :)
Education
by initmx
A Comprehensive Guide to Elliott Wave Degrees (Timeframes)Hello Traders. In this supplemental post to my Elliott Wave guide, I will help you understand wave degrees, and what the numbers actually mean when you are labeling each wave. Identifying the wave level (degree) that you are trading is going to be identified at any given time and will be based on what's known as a "degree". One of the biggest problems that new Elliott Wave traders have is grasping the structure or "nesting" of the wave patterns (check the diagram within the chart above). The patterns identified by Elliott himself, occurs across multiple time frames. This means that a completed "five wave" wave structure on a smaller time frame, for example, the 15 minute chart, may represent just the first wave of a larger wave structure unfolding on a 60-minute chart, and so forth. In a micro-macro sense, each of the unfolding wave patterns is just part of a bigger wave pattern unfolding in the higher timeframes. The sequence from wave 1 through 5 completes one wave of a higher degree (again, refer to the diagram above), that is, a wave belonging to the next higher tier of wave sequences. The movements from wave 1 through 5 completes either a wave 1, 3 or 5 of the higher degree, while the a-b-c sequence completes either a wave 2 or 4 of the higher degree. When you are getting into lower degrees, each wave of the sequence can be broken down into smaller waves accordingly to the same dynamic (this is not so important as many claim to be). The most commonly used degrees are the Primary, Intermediate, and Minor degrees when labeling your micro-macro wave counts. In the diagram above you can see how Wave 1 of the high degree is made up of a smaller 5-wave impulse waves and Wave 2 is made up of smaller three wave corrective waves. And each of these waves is, in turn, always comprised of smaller wave patterns, and so forth.
BYBIT:BTCUSD.PEducation
by XForceGlobal
15
A Comprehensive Guide to Elliott Wave Rules & GuidelinesHello Traders. In this post I will be discussing every single Elliott Wave rule and guideline according to the Elliott Wave Theory. There are many confusions upon traders when applying Elliott Wave rules, as there are also guidelines to be considered when trading. ***RULES AND GUIDELINES ARE TWO DIFFERENT SET OF TOOLS!*** Elliott Wave Theory "Rules" MUST be obeyed, I repeat, they MUST be obeyed, and obeyed precisely for an Elliott Wave pattern to qualify as an Elliott "Wave" - However, the "Guidelines" do not have to be obeyed. The more Guidelines obeyed by an Elliott pattern, the higher its "rating" or "probability" of being correct. This guide is purely a supplement guide and a quick reference for ANYONE who is trying to remember the rules and guidelines. I hope this guide helps you to further advance into the Elliott Wave Theory. Please write in the comment section below if I have missed anything, I will be glad to add them in the update section. ------------------------------------------------------------------------------ We can categorize the Rules and Guidelines into TWO distinctive pattern groups: 1. Impulsive Wave Patterns (5 wave moves), and, 2. Corrective Patterns (3 wave moves) ------- **IMPULSIVE WAVES** Impulsive Wave Rules: •Wave 2 may NEVER move beyond the origin of wave 1 (it cannot retrace more than 100% of wave 1). •Wave 4 may NEVER enter the price territory of wave 1. •Wave 3 may NEVER be the shortest wave. •Impulse waves ALWAYS subdivide into 5 waves. •Waves 1, 3, and 5 are ALWAYS 5 waves. Impulsive Wave Guidelines: •Wave 3 most often exceeds the pivot of wave 1 •On rare occasion, wave 5 will not move beyond the pivot of wave 3. This is known as TRUNCATION (refer to my EW guide). •Usually, wave 3 will extend and have 5 waves within the third wave. Occasionally, two waves will extend (3rd and 5th waves). Never will all three extend. •When wave 3 extends, wave 5 tends to EQUAL in length with wave 1. •When wave 5 extends, it frequently reaches to the length of waves 1 plus 3. •Wave 1 is the least likely to extend, but can be valid. •Sometimes, the extended wave corresponds with the current parent wave. (for example, In a higher degree wave 5, it is common for the lower degree wave 5 to extend as well) •Sometimes, the extended wave will match the number of the current parent wave •The center of Wave 3, normally has the steepest slope of the entire 5 wave structure. •Wave 2 will develop into a ZIGZAG correction, FLAT, or a COMBINATION wave (WXY, WXYXZ). Wave 2 cannot be a triangle in its entirety. •Wave 4 will develop into a ZIGZAG, FLAT, COMBINATION (WXY, WXYXZ), or TRIANGLE. Diagonal Rules: a. Leading Diagonal b. Ending Diagonal A Diagonal is a common 5 Wave Impulsive pattern labeled as a 1-2-3-4-5 that moves with the larger trend (up or down). Diagonals move within two channel lines drawn from Waves 1 to 3, and from Waves 2 to 4. A Diagonal MUST be contracting. There exist two types of Diagonals; Leading and Ending. They have a different internal structure and are seen in different positions within the larger degree pattern. Ending Diagonals are usually more common than Leading Diagonals in terms of probabilities. •Wave 1 of a Leading Diagonal must be an Impulse or a Leading Diagonal. •Wave 1 of an Ending Diagonal must be a Zigzag family pattern. •Wave 2 may be any corrective pattern except a Triangle. •Wave 2 must be less than Wave 1 by price. •Wave 3 of a Leading Diagonal must be an Impulse. •Wave 3 of an Ending Diagonal must be a Zigzag family pattern. •Wave 3 must be greater than Wave 2 by price. •Wave 4 may be any corrective pattern. •Waves 2 and 4 must either overlap or be within 10% of length Wave 3 of doing so. All internal data points are considered. •The time taken by Wave 4 must be between 10% and 10 times the time taken by Wave 2. •Wave 5 of an Ending Diagonal must be a Zigzag family pattern. •Wave 5 of a Leading Diagonal must be an Impulse or Ending Diagonal. •If Wave 1 is a Leading Diagonal then Wave 5 cannot be an Ending Diagonal. •Wave 3 must not be shorter than both Waves 1 and 5. •Wave 5 must be at least 80% of Wave 4 by price. •Wave 5 is never the longest when compared with Wave 1 and Wave 3. •Wave 5 is always less than Wave 3 by price. •The intersection of the channel lines must be beyond the end of the pattern. •Diagonals must move within the two channel lines or be within 10% of gross movement. •Channel lines must converge, slope in the same direction and neither be horizontal. •The maximum number of pattern lengths into the future that the channel lines intersect is 4. •The minimum time for Wave 5 is 10% of Wave 4. The maximum time for Wave 5 is 5 times Wave 3. Diagonal Guidelines: •Wave 1 of a Leading Diagonal is usually an Impulse, but in rare cases may be a Leading Diagonal. •Wave 2 is usually ZigZag family pattern. •Generally Wave 2 is greater than 35% of Wave 1's total price movement. •Wave 4 is commonly a Zigzag. •It is rare that at least either Waves 2 or 4 of an Ending Diagonal is not a Zigzag family pattern. •Generally Wave 4 is greater than 35% of Wave 3's gross price movement. •The end points of Waves 1 and 4 generally overlap. •Expect the time taken by Wave 4 to be between 20% and 5 times Wave 2. •Wave 5 is usually greater than Wave 4 by price. •It is typical for Wave 5 of a Leading Diagonal to end before reaching the channel line. •It is typical for Wave 5 of an Ending Diagonal to exceed the channel line. ---------- **CORRECTIVE WAVES** ZigZag Rules: A ZigZag is a three wave structure labeled A-B-C, generally moving counter to the larger trend. It is the most common three wave Elliott pattern. Zigzags are corrective in nature. •Wave A must be an Impulse or a Leading Diagonal. •Wave B can only be a corrective pattern. •Wave B must be shorter than Wave A by price. All internal points are considered. •Wave B must be at least 20% of A by price. •Although there is no minimum time constraint for Wave B, it must not exceed 10 times the time taken by Wave A. Wave C must be an Impulse or an Ending Diagonal. •If Wave A is a Leading Diagonal, then Wave C must not be an Ending Diagonal. •Wave C must be longer than 90% of Wave B by price. •Wave C must be less than 5 times Wave B by price. •It is not allowable to have both Wave 5 of A a failure (Wave 5 is shorter then Wave 4) and Wave 5 of C a failure. •Wave C must be no more than 10 times either Wave A or B in price or time. ZigZag Guidelines: •It is unusual for a Wave within Wave A to have a greater gross price movement than Wave A. •Wave B should end nowhere near beginning of Wave A •Wave B should retrace at least 30% of Wave A. •Wave B is most likely to retrace Wave A by about 38.2%. •Wave B is next most likely to retrace Wave A by about 50%. •Wave B is next most likely to retrace Wave A by about 61.8%. •The largest Wave in B is usually less than the gross price movement of Wave A. •The time taken by Wave B is usually between 61.8% and 161.8% of the time taken by Wave A. •Wave C is most likely to have a similar price length to Wave A. •The next most likely price lengths for Wave C are 61.8% and 161% of Wave A •The next most likely price length for Wave C is 61.8% of Wave A beyond the end of Wave A. •If Wave C is much longer than 161.8% of A, then the pattern is more probably the beginning of an Impulse than a Zigzag. •If Wave C is complete, and has a greater slope than Wave A, expect the Zigzag to extend to an Impulse. •Although Wave C should always be greater in price to Wave B, in rare cases Wave C can be up to 10% shorter than Wave B. •The largest Wave within C by price is usually less than the gross price movement of Wave A. •The time taken by Wave C is usually between 61.8% of Wave A and 161.8% of the shortest Wave of A and B. Flat Rules: A Flat is a three wave pattern labeled A-B-C that moves generally sideways. It is corrective and counter-trend and is a very common Elliott pattern. •Wave A can be any corrective pattern except a Triangle. •Wave B can be any corrective pattern except a Triangle. •Wave B must retrace more than 70% of Wave A. •Wave B is less than twice the price movement of Wave A, including internal points of Wave B. •Although there is no minimum time constraint for Wave B, it must be less than 10 times Wave A. •Wave C must be an Impulse or Ending Diagonal. •Wave C must share some common price territory with Wave A. •Wave C must be less than twice the longest of Waves A and B, including internal points of Wave C. •Wave C must be less the three times the price distance of Wave A. •Disallow back to back failures. •Wave C must be no more than 10 times either Waves A or B in price and time. •There is no minimum time constrains for Wave A. Flat Guidelines: •Wave A is usually a Zigzag family pattern. •Wave A is rarely an Expanding Triangle. •The largest Wave within Wave A is usually less than Wave A by price. •Wave B is usually a Zigzag family pattern. •Wave B is rarely a Flat. •Wave B is usually greater than 95% of Wave A by price. •Wave B is usually less than 140% of Wave A by price. •The largest Wave within B is usually less than Wave A by price. •The time taken by Wave B is generally between 61.8% and 161.8% of Wave A. •Wave C is rarely an Ending Diagonal. •Wave C is often about the same length as both Wave A and B. •Wave C often ends at point which is a percent of Wave A beyond end of Wave A equal to the same percentage away from the start of Wave A. •Wave C usually retraces a minimum of 100% of Wave B. •Wave C normally reaches to the end of Wave A •Wave C is not often more than 140% of the longer of Wave A or B. •If Wave C is longer than Wave B, then Wave C is often about 61.8% of A beyond end of A. •If Wave C is longer than Wave B, then Wave C is often about 161.8% of Wave A from end of Wave B by price. •The time taken by Wave C is generally between 61.8% of Wave 1 to 161.8% of the shortest of Waves A and B. Triangle Rules: CT = Contracting Triangle, ET = Expanding Triangle A Triangle is a common 5 Wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D. A Triangle is either Contracting or Expanding depending on whether the channel lines are converging or expanding. Expanding Triangles are rare. •Wave A of a CT is always either a Zigzag based pattern or a Flat. Wave A of an ET can only be a Zigzag based pattern. •Within Wave A of a CT, Wave B must be less than 105% of Wave A's price length. The same rule applies for Waves C and D of the CT. •Wave B must be a Zigzag based pattern. •Wave C of a CT can be any corrective pattern except a Triangle. Wave C of an ET must be a Zigzag based pattern. •Wave B of a CT must retrace Wave A by 50%. •For a CT, Wave C must be less than Wave B by price and Wave C must be greater than or equal to 50% of Wave B by price. •For an ET, Wave B must be less than Wave C by price and Wave B must be greater or equal to 50% of Wave C by price. •Wave D of a CT can be any corrective pattern except a Triangle. Wave D of an ET must be a Zigzag based pattern. •Wave B, C and D must not move more than 10% beyond the A-C & B-D channel lines (based on the length of Wave C). •In an ET, Wave C must be less than Wave D by price and Wave C must be more than 50% of Wave D by price. •In an ET, Wave A must move within the A-C channel or pass through it by no more than 10% of the length of Wave B by price. •In an CT, Wave D must be less than Wave C by price and Wave D must be greater than or equal to 50% of Wave C by price. •The intersection of the channel lines must occur beyond the end of a CT, and before the beginning of an ET. •The channel lines must either converge or diverge. They cannot be parallel. •Wave D of a CT must not end such that when retraced 25% by E, E will not reach the price territory of A. •Only one channel line in a CT may be horizontal. Neither channel line of an ET can be horizontal. •The maximum time for Wave D is 4 times Wave C. •Wave E of a CT can either be a CT or a Zigzag family pattern. For an ET, Wave E must be a Zigzag based pattern. •In an ET, Wave E must be greater than Wave D by price and Wave D must be greater or equal to 50% of Wave E by price. •In an ET, either Wave A or B will be the shortest Wave in the pattern. •In a CT, Wave E will be less than Wave D by price and Wave E will be greater than or equal to 25% of Wave D by price. •In a CT, either Wave A or B will be the longest Wave in the pattern. •In a CT, the maximum time for Wave E is 4 times Wave C. •Wave E must end in the price territory of A. •Wave E must not pass through the B-D line, or if it does, by no more than 10% of the length of Wave D. •The maximum number of pattern lengths into the future that the channel lines intersect is 6. Triangle Guidelines: •Wave A is usually a zigzag family pattern. •Wave B is usually a zigzag family pattern. •Wave C is often a zigzag family pattern. •Wave C usually takes more time than any other Wave in the pattern. •Wave D is usually a zigzag family pattern. •Waves B, C and D rarely move outside the B-D line. •Waves A, B, C and E rarely move outside the A-C line. •Wave E is usually a zigzag family pattern or the same type of Triangle as the larger pattern. •Usually at least two Waves travelling in the same direction will relate by about 61.8%. •It is common for two or more adjacent Waves will be related by 61.8%. •In a CT, Wave E normally retraces Wave D by about 70%. •Double and Triple ZigZag Rules: •Double (DZ) and Triple (TZ) Zigzags are similar to Zigzags, and are typically two or three Zigzag patterns strung together with a joining Wave called an x Wave, and are corrective in nature. Doubles are not common, and Triples are rare. Zigzags, Double Zigzags and Triple Zigzags are also known as Zigzag family patterns, or 'Sharp' patterns. Double Zigzags are labeled w-x-y, while Triple Zigzags are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double Zigzag is illustrated below. Double and Triple ZigZag Rules: •Wave W must be a Zigzag. •Wave C of W cannot be a failure. •Wave X can be any corrective pattern except an ET. •Wave X must be smaller than Wave W by price. •Wave X must retrace at least 20% of W by price. •The gross price movement of Wave X must be less then 3 times the price movement of Wave W. •Wave X must be no more than 5 times Wave W by time. •Wave Y must be a Zigzag •Wave Y must be greater than or equal to Wave X by price. •Back to back and double failures are not allowed. •Wave Y must be greater than 90% of Wave W by price, and Wave Y must be less than 5 times Wave W by price. •Wave Y must be no more than a factor of 5 times either Wave X or W in price or time. •Wave C of Y cannot be a failure. •Wave XX can be any corrective pattern except an ET. •Wave XX must be smaller than Wave Y by price. •Wave XX must retrace at least 20% of Y. •The gross price movement of Wave XX must be less than 3 times the gross movement of Wave W. •Wave Z must be a Zigzag •Wave Z must be greater than or equal to Wave XX by price. •Wave Z must be less than 5 times Wave Y by price, and must also be less than 5 times Wave W by price. •Wave Z must be no more than a 5 times either Waves XX, Y, X or W in both price and time. •Double and Triple ZigZag Guidelines: •The largest Wave in Wave W is usually less than Wave W by price. •Wave X is usually a Zigzag family pattern. •Wave X is usually less than 70% of Wave W by price. •Wave X will usually retrace at least 30% of Wave W. •Wave X is most likely to be a 38.2% retracement of Wave W. •Wave X is next most likely to be a 50% retracement of Wave W. •Wave X is next most likely to be a 61.8% retracement of Wave W. •The largest Wave in Wave X is usually less than 140% of Wave W by price. •The time taken by Wave X is usually between 61.8% and 161.8% of Wave 1. •Wave Y is next most likely to be equal to 61.8% or 161.8% of W by price. •Expect the time taken by Wave Y to be between 61.8% of Wave W and 161.8% of shortest of Wave W and X. •Wave XX is usually a Zigzag family pattern. •Wave XX is usually less than 70% of Wave Y by price. •Wave XX will usually retrace at least 30% of Wave Y. •Wave XX is most likely to be a 38.2% retracement of Wave Y. •Wave XX is next most likely to be a 50% retracement of Wave Y. •Wave XX is next most likely to be a 61.8% retracement of Wave Y. •The largest Wave within Wave XX is usually less than 140% of Wave Y by price. •Wave Z is most likely to be about equal to Wave Y by price. •Wave Z is next most likely to be about equal to 61.8% or 161.8% of Wave Y. •The largest Wave in Wave Z is usually less than Wave Y by price. Double and Triple Sideways Rules: Double (D3) and Triple (T3) Sideways patterns are similar to Flats, and are typically two or three corrective patterns strung together with a joining Wave, called an x Wave, and are all corrective in nature. Doubles are not common, and Triples are rare. Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double 3 is illustrated below. •Wave W may be any corrective pattern except a Triangle, double or triple. •Wave C of W cannot be a failure. •Wave X may be any corrective pattern except a Triangle, double or triple. •The minimum X Wave retracement is 70% of Wave W. •The maximum price distance of Wave X is 150% of both the previous Wave and ensuing Wave. All internal data points are considered. •Although there is no minimum time for Wave X, the maximum time is 10 times the time taken by Wave W. •Wave Y may be any corrective pattern except double, triple or a Triangle in a Triple Zigzag. However, Wave Y cannot be a Zigzag if Wave W is a Zigzag. •Wave Y must be greater than or equal to Wave X by price, except if Wave Y is a Triangle. •Wave C of Y cannot be a failure. •Wave Y must be no more than 5 times either Wave X or W in price and time. •Wave Y has no minimum time constraint. •Wave XX may be any corrective pattern except a Triangle, double or triple. •The minimum Wave XX retracement is 70% of Wave Y. •The maximum Wave XX retracement is 150% of previous Wave and ensuing Wave. All internal data points are considered. •Wave Z may be any corrective pattern except double or triple. However Wave Z cannot be a Zigzag if Y is a Zigzag. •Wave Z is greater than or equal to XX by price. •Wave Z must be no more than 5 times either Waves XX, Y, X or W in price and time. •Back to back and double failures are not allowed. •If Wave Y is greater than Wave W by price, then the maximum Wave Z price movement is twice the price movement of Wave W. Double and Triple Sideways Guidelines: •The largest Wave in Wave W is usually less than 140% of Wave W by price. •Wave X is usually a Zigzag family pattern. •The largest Wave in Wave X is usually less than Wave W by price. •Wave X is usually less than 140% of W by price. •Wave X is usually greater than 95% of Wave W by price. •The most likely retracement for Wave X is 110% of Wave W. •Time for X is generally between 62% of W1 and 1.618 of the time of W1. •If Wave Y is a Triangle, the most likely length of Wave Y is about 61.8% of Wave W. If Wave Y is not a Triangle, the most likely lengths for Wave Y are 100% of Wave W, 161.8% of Wave W and 10% of the length of Wave W beyond the end of Wave W. •The largest Wave in Wave Y is usually less than 140% of Wave W by price. •Wave Y is usually less than twice the longest of Wave W and Wave X in price. •Wave Y is generally between 61.8% of Wave W and 161.8% of Wave W in time. •Wave XX is usually a Zigzag family pattern. •The largest Wave in Wave XX is usually less than Wave Y in price. •Wave XX is usually less than 140% of Wave Y by price. •Wave XX is usually greater than 95% of Y by price. •The most likely retracement for Wave XX is 110% of Wave Y. •If Wave Y is a Triangle, most likely length by price is 61.8% of Wave W. If Wave Y is not a Triangle, then the most likely lengths are 100% of Wave W, 161.8% of Wave W and 10% of length of Wave W beyond the end of Wave W, all by price. •The largest wave in Wave Z is usually less than 140% of Wave Y by price. •Wave Z is usually less than twice the longest of Wave Y and Wave XX.
COINBASE:BTCUSDEducation
by XForceGlobal
47
Elliott Waves - How to Identify Ending Diagonal?Why is it critical to be able to identify Ending Diagonal waves - because normally their completion is followed by the reversal of trend and in some cases with explosive price movements. Above are the general rules for all the internal waves and for different variations of the pattern - Expanding and Contracting Ending Diagonals. Why is Ending Diagonal forming instead of Impulse When in wave 5 - usually it occurs at the end of a growth cycle like we are observing now when the risks of investment (in case of equities) are increasing, and energy of bulls is slowly getting overwhelmed by the strength of bears, and a rapid reversal happens with some trigger point - Covid in 2020 When in wave C of zig-zag - similar but in reverse, the energy of bears is weakening when forming a correction and bulls are taking over and a new growth cycle begins It is important to note though that with great potential gains for investors, Ending Diagonal can be confused in some cases with complex corrections so traders need to be careful and considering only those cases where there is a very clear structure of waves. Here are few examples from the real equities to see the different types of this extremely important wave structure. Booking Holdings - an Expanding Ending Diagonal has been forming since the crash of the great financial crisis and with the current poor fundamentals the upcoming correction may be very deep Tesla - just recently a lengthy Running Flat correction has completed with an Ending Diagonal in wave C (although it is still risky to assume this scenario given fundamental risks) Amazon - the historic high in July 2021 was completed by an Ending Diagonal and notice how deeply it has corrected since then And here are few examples where an Ending Diagonal is potentially developing: Berkshire Hathaway - waves 1 to 4 have been formed and we are awaiting the final zig-zag of wave 5 AMD - after forming historic high the price has been correcting with ABC pattern and potential Ending Diagonal in wave C HP - waves 1 to 4 of a global impulse have been formed and it is noticeable how choppy is the movement in the final wave 5 which is likely to be an Ending Diagonal MA - similar situation as in HP Thank you for reading my post. Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.
Education
by vitalalyt
Wave personality (PART 1)Characteristic waves "1": -Commonly,during the bottom start of waves "1"the accompanied news is generally bad, the period often exhibits the occurrences of recession (during intermediate wave degrees),or even depression and war(during large wave degrees). -At this point and given that the input information on the current economic situation dos not look good,fundamental analysts continue to lower their earning estimates. -Quite commonly, wave "1" are formed as a part of the bottoming phase or more generally, during periods of disbelief and thus, tend to demonstrate deeper corrective movement in wave "2" -Wave"1",the rebound from a preceding bear trend, is constructive and offers a more structured rebound from undervalued price levels.this move often displays a subtle increase in volume and is relatively supported by market breadth. -The short interest level peaks as the majorly of market participants believe that the overall trend is to the downside.investors view the rally as last chance to sell and get out. -When waves"1" rise from either large base formed by the previous correction, or from extreme compression. They appear as dynamic and dramatic , and result is that only moderate retraced is seen in waves"2" Characteristic waves "2": -Waves"2"act so as interrupt the progress and the directional move of price.They tend to heavily retrace (but not extend) wave"1",especially, since they themselves occur mostly during the periods of disbelief,prior to the market-up phase. -More often then not,news ans fundamentals tend to be worse during the end (bottom) of wave"2"when compared to the beginning(bottom) of wave"1". -systematically,during wave"2",investors are convinced that the bear market is proceeding once more following the termination of wave"1"or what they had perceived to be another counter trend rally. -Waves"2"are often associated with downside non-confirmations.This usually takes the shape of a wakening downside momentum and breadth.adding to this , waves "2" are often accompanied by low volume an volatility,indicating a drying up of selling pressure. It is not uncommon for waves"2"to take more time in formation compared to their preceding waves "1". Characteristic waves "3": -Waves"3"are strong and broad;the trend at this point is unmistakable.waves"3" occur are confirmed during the start of what the classic approach highlight as the 'mark-up' phase. -Turnaround fundamentals stories begin to flow in the financial arena,causing an investor confidence re-build. -Waves"3" usually generate the greatest volume and price movement,as they most often extended beyond their normal limits,with respect to both time and distance. -During waves"3",successful classical pattern-breakouts are commonly observed;multi-continuation gaps,volume expansions,exceptional breadth(since almost all share price and market sectors participate),as well as major Dow Theory confirmations and runaway price movement,which create large gains in the market,depending on the wave degree. -Corrections in waves"3' are usually weak and short-lived as those who bet on buying pull-backs suffer the likelihood of missing the move. Characteristic waves "4": -In principle,the occurrence of wave "4" implies that the best part of the growth phase which was evident in wave"3" has ended. -More often then not, waves"4" appear as a form of a sideways interruption.they develop as part of the building of a base for the final fifth wave move.in part,wave "4"is seen as the "public participation phase" as termed by the classical approach(Dow Theory). -Lagging stocks build their tops and begin declining during this wave,since only the strength of wave "3" is thought to have pulled them along for the upside participation.This initial deterioration in the market sets the stage for breadth divergences,non-confirmations and subtle signs of weakness during the fifth wave. Characteristic waves "5": -specifically,in stocks,waves"5"are always less dynamic than waves"3" in terms of breadth.With the exception fifth wave extensions,they usually display a weaker momentum as well. -As a general feature, volumes in waves"5" tend to be less when compared to wave"3" volumes. -during advancing waves"5",optimism runs extremely high as further public participation emerges, despite a narrowing of breadth. Nevertheless,market action dose improve relative to prior corrective wave rallies. -Commonly,during the top (end) of waves"5",the accompanied news is positive,implying that prosperity and peace guaranteed forever as arrogant complacency becomes evident in the financial community and financial news. Characteristic waves "A": -During "A" waves of bear markets;the investment world is generally convinced that this reaction is just a pullback pursuant to the next leg of advance. the public surges to the buy side despite the first valid technically damaging cracks in trend patterns of individual stocks. -The "A" waves set the tone for the waves that follow. A five-wave "A" indicates a start of a directional or trending mode,while a three-wave "A" indicates that a flat or sideways mode will likely follow. Characteristic waves "B": -"B" waves are phonies. They are sucker plays,bull traps , speculators paradise, orgies of oddlotter mentality or expressions of dumb institutional complacency (or both). -They are often accompanied by an emotional advance of narrow list of stock,which would be evident through non-confirming signs of TA-breadth and momentum indications. -"B" waves are often unconfirmed by all/broader market indices and are almost always expected to be completely retraced by the following wave "C". Characteristic waves "C": -"C"waves inherit most of characteristic and properties of third waves in the sense that they are persistent and broad . -In the case of bearish "C"waves: +They are usually devastating in their destruction . +There is virtually no place to hide except cash +The false impression that the bull trend is "back on track" which was held throughout its preceding waves "A" and "B" tend to fade away,as fear and occasionally multiple panic phase take over. +Fundamentals ultimately collapse in response of the market action. -In the case of bullish "C" waves: +They are constructive and often render sizable gains or return in waves of large degrees. +They usually give a fake indication that the bull trend is back to stay. Source IFTA
Education
by aliasadii
Morning Star Pattern: how to trade?🌟 ❗️The Morning Star pattern is a market reversal pattern consisting of three candlesticks that indicate bullish superiority. This pattern warns us about the weakness of the ongoing downtrend, which, in turn, suggests the beginning of an uptrend. ⚠️Traders observe the formation of the "Morning Star" pattern on the price chart, and then confirm with the help of other technical tools on the Forex currency market. ✅Morning Star pattern: Three forming candles ⏺Big Bearish Candle ⏺A small bullish or bearish candle ⏺Big Bullish Candle The most important thing to remember is always that the market must be in a downtrend in order to trade according to the "Morning Star" pattern. In order to confirm the downtrend, mark the lowest lows and the lowest highs. 1️⃣The big bearish candle is the first part of the Morning Star reversal pattern. This candle indicates that the bears are in full control of the market, which means that sellers continue to pressure the market. At the moment, you should only look for sale deals, since there are no signs of a reversal yet. Here the Morning Star pattern is just beginning its formation. 2️⃣A small bullish/bearish candle is the second candle that starts with a bearish gap down. This candle indicates that sellers are unable to lower the price, despite very great efforts. The price action ends with the formation of a rather small bullish/bearish candle (Doji candle). If this candle is bullish, then we have an early sign of a trend reversal. 3️⃣A large bullish candle is the third candle that has the greatest significance, because here the real pressure of buyers is manifested. If the candle starts with a break, and buyers can push prices up by closing the candle even above the first red candle, this is a clear sign of a trend reversal. ✅Morning star: how to trade this pattern on Forex? As we already know, the Morning Star pattern is a reversal pattern. As a rule, it indicates that bulls are capturing the trend, and bears are losing control. Most beginners trade using the "Morning Star" pattern on their own, without using technical tools, or at least tips from more professional traders. We do not recommend doing this — it is not as reliable as it may seem. Always connect this pattern with other reliable indicators, support and resistance levels, as well as trend lines. So, in this strategy, we combined the Morning Star pattern with volume. Volume plays an important role in the formation of the model. If the first red candle shows a low volume, then this is a good sign for us. Then, if the second candle is green and the volume is growing, this indicates buyer pressure. After all, the volume of the third long green candle should be high. The large volume of the last candle indicates the confirmation of the upcoming trend and the entrances to purchase transactions. If the third bullish candle has a low volume, do not pay attention to the fact that the Morning Star is forming. This volume does not indicate a bullish reversal. To sum up: do you observe the closing of the third candle with a large volume? Open buy positions and move along with the uptrend until there are signs of a reversal. ✅Morning Star pattern: entry, take profit and stop loss We have to open a deal when the next green candle closes. There are many ways to lock in profits. We can close a position in any resistance zone or supply-demand zone. In this deal, we hold our positions because we have opened a deal since the beginning of a new trend. You can also close your positions when the price approaches a significant resistance level on the higher timeframe. ⚠️Combining this pattern with volumes makes trading more reliable. Therefore, you need to place a stop loss just below the second candle. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
10
How To Analyze Any Chart From Scratch - Episode 1Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on USDCHF, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
49
What makes trading different from gambling? [No Trading Zone]#Notradingzone #Tocademy #PrincipleTrading #Confluence Hello traders from all over the world. Observing thousands of retail traders during my lessons, lectures, and consulting, I realized that a lot of novice traders in contemporary market have some bad trading habits. Especially if you are a daily trader or scalper who usually take small and many short-term trades, please pay attention! Someday in the future, hopefully, you will eventually realize that the best and most ideal position in the world is to take neutral position. What I mean here doesn't imply that you should not trade at all and rest the whole time. After entering this world of trading, within the process of becoming a mature trader there is a time when you realize the power of the TA(Technical Analysis). Once you start to practically utilize what you have studied and even see how the numbers on your account grow, you literally become mesmerized. This magical thing called ‘Trading’ would feel like the ONE you have been searching for the whole life. I know, calm down! It feels great when the price reacts to the lines and indicators you have drawn and put on the chart by yourself. In this particular stage, I see many traders sit in front of the monitors or watch their smartphones all day long, being addicted to trading. Well, here’s a truth that I deducted through years of my trading career and the data that I have researched; addictive traders hardly become successfully. Always remember that our ultimate purpose of trading is to solely make money, not just for fun. Of course, making money would be fun but for some of you, the priorities of these two are switched. Before you even notice, you might find yourself gambling rather than trading. Now put your hands down, close your eyes, and think for a minute. Are you anxious when you are not in a position? Do you frequently regret that you closed your position too early? Do you become angry when you miss big long or short? Are you so urgent to recover your loss as soon as possible? Does trading disturb your primary work? (Hard to focus both, isn’t it?) Does trading masses up your lifestyle and relationship with people? If you replied ‘Yes’ to majority of the questions, please cancel all of the pending orders right now, turn off the chart, get some rest, and forget about trading just for a while. I understand more than anyone that you are full of desire to chase all these micro trends or minor waves in 1 minute chart. Especially those who are trying to recover all the losses you made this week ASAP, before you encounter a bigger loss, trust me, take some time, and cool your head. I am sorry to say but you might be more of a gambler than a trader right now. Sure, there would be few that still do fine with all those conditions but if you eventually keep ending up bad due to excessive entries or lose entire seed at one cue after series of consecutive wins, your addiction might be interfering your judgment. Irrational trading decisions are the biggest risk that human traders have to face and restraining our emotions during trading is integral. (Please click the image/link below for details) As the image below indicates, since we humans cannot perfectly control our emotions every single day, the total number of trades and the net performance are not always proportional in a short-term period. In other words, spotting thousands of entries in a single day does not always lead to daily accumulative profit. Not only you pay high transaction fees, but your physical and mental exhaustion can lower your concentration seducing your irrationalized perceptions to break your trading principles. Accordingly, the more excessive amount of time spent looking into the chart, the more likely our logical sense becomes numb and vague which can easily cause FUD and FOMO. Researches have shown that the relationship between the entry rates and the performance (per certain period of time) of retail traders is averaged out as a curved shape with a local maximum coordinate. This peak point implies the ideal amount of profit and entries of a trader. It would be different for each trader depending on their preferences, capabilities, and other circumstances. For instance, 3~4 entries and $10,000 profit per day might be ideal set or oriented goals for some traders, while 10~15 entries and $100 profit per day might be those for other traders. Hence it is important for us to figure out each of our own boundary and refer to it when designing strategies and PnL first of all. Therefore, a well systematically designed strategy that can effectively weigh and quantify technical signals based on the scientific and reliable evidences must be adapted. Once validities of each are scaled, we would be able to comprehend which signals are relatively more reliable than others. Shown on the main image above, even though entering a 80% credibility zone will provide low entry rate, higher RR ratio and win-rate can be achieved. We need to train ourselves to be able to call “No Trading Zone” when the identified trends and derived price action zones do not meet the minimum standards of our own. Some of the talented and successful daily traders I’ve met are not very much different from most of us here. They analyze the market and design trading setups just like we do. If anything, that made them superior, they have a proficient sense for spotting the “No Trading Zone”. They are amazingly good at consistently stepping aside if the signals are not reliable enough or do not meet their standards. They know time is on their side and they wait in patient. It's just simply deciding whether to take certain trades or not, filtering out some of less potential entries and maintaining no position when they are less convinced about the signals, but these tiny differences ultimately result in a huge difference in performances. Investors who trade with technical charts like us can measure the credibility of signals based on the confluency of technical signs and indicators. Here are two traders: trader A and B. Trader A considers eight signals (techniques, indicators, and theories). For example, trader A observes volumes, trendline, Fibonacci levels, moving averages, Bollinger band, Ichimoku cloud, RSI, Stochastic, and Elliott wave theory. Trader A won’t enter position unless majority of those signals are giving signs simultaneously relatively at the same price and time. On the other hand, trader B only considers trendline and moving averages. If only one of the two gives a signal, trader B enters immediately. Which trader would be more successful? Even though entry rate is low, trader A would be able to secure higher RR ratio and win-rates because the trends and price action zones that trader A has deducted through TA are more reliable than those deducted by trader B. As mentioned, Confluence Zone is an area where multiple technical evidences overlap at the same price or time period. In TA world which is 2-dimensional, a price action zone would be expressed with a dot, a line or a box. When multiple indicators signal certain trends and PRZs both in price and time wise, we need to keep our eyes on those coordinates. We as a trader, need to utilize these confluence zones which indicate major price range within certain time period, to design trading setups. The more overlapping elements there are, the higher RR ratio and win-rate we can secure. And this is what makes gambling different from trading. Both of us fight with numbers, but we can control that numbers while gambler cannot manipulate the RR ratios and the win-rates they are given. Thanks for reading my post. I will see you guys next time! Your subscriptions, likes, and comments are the greatest motivations for me to write more posts!
Education
by Tommy_Trader
4
Description of Each Indicator WITHIN Phoenix Ascending IndicatorHi Everyone! Josue, has been a "gift" sent to us all in regard to updates to Phoenix Ascending indicator and Bad Ass B-Bands Indicator. Josue, has provided a more descriptive explanation of each indicator within Phoenix Ascending. So, I'm sharing this with everyone here today. Also, I'm no longer going to say, "Blue LSMA," "Red RSI," "Green RSI" and "White Energy." Instead, I'm going to say, "Blue Line," "Red Line," "Green Line" and "Energy." This will make it easier for me to say during publications with less syllables to say. Here's Josue's brief description: I am going to provide further information regarding the Phoenix Ascending indicator, based on my research, so this kind of discussion regarding what each indicator line is better understood in the future. All the lines inside the Phoenix Ascending (P.A.) Indicator are based on the GREEN line. This is the conclusion of my research: # Phoenix ascending ## Green line The Green line is the average of three indicators: 1. Wave trend oscillator Refs: usethinkscript.com 2. Money flow indicator www.investopedia.com 3. RSI over three candles. The following indicators are also computed inside P.A. script: 1. Money flow index. 2. Williams %R. However, they are not used to compute the green line in the final version. ## Red line It is a simple moving average of the green line over six candles. ## Blue line It is a linear regression of the green line over the last 32 candles. ## White energy It is the difference of the green and red lines multiplied by two and centered around 50 Hence, the energy (or momentum) tells as the difference between the current green line, and its average over the last six candles. This idea is similar to how MACD is used to find buy/sell points. This is why I have mentioned multiple times in the past that the energy is just the difference between the green line and the red line. If you have time, check all the information I have posted above to have a further understanding of the P.A. (Phoenix Ascending) indicator. If you are wondering how I (Josue) found this information, I simply followed the P.A. (Phoenix Ascending) script's code and looked for the scripts of the cited authors in the script. The indicators that form the green line, and the calculation of the red line has been tuned by David. So you will find some minor differences. Also, the blue line was added by David as he has mentioned in the past. This is the original God Mode Oscillator indicator End of Josue's explanation... Me (David) talking again: I want to thank Josue again for his due diligence and attention to detail. I hope this was helpful to everyone and I look forward to saying less "syllables" in future video publications. LOL As always, you know the drill, Let's all "Stay Awesome!" David PS - I first began playing around with Godmode in September, 2016 (changing inputs, adding an LSMA, etc...) In April, 2017 I posted my first publication for Godmode indicator and some changes I made to it. I've learned a LOT since then. Of course I also added "Bad Ass B-Bands" since then. Why? Phoenix Ascending (Godmode) helped me determine the "odds" for potential movement of price action going up or down AND for how long price action could potentially "continue" up OR "continue" down. The "issue" was Phoenix Ascending (Godmode) could not tell us WHERE the price action could go WHEN it moves up OR down. THIS is where "Bad Ass B-Bands" came into play to help solve that dilemma. Here is that first post from April, 2017:
BITSTAMP:BTCUSDEducation
by WyckoffMode
21
Higher Timeframe analysis Hi, fellow traders I find that majority of traders have common problems when doing MTF (multi-timeframe) analysis, usually, most of the traders are applying the same strategy all over the timeframes, so they end up using entry strategy on higher timeframes, and then also on lower timeframes, which puts then in an ever-spinning situation, where they end up being too early or too late and flip flop all over the place. it is important to understand : 1) you need flow / structure / direction analysis 2) that will enable to create trade plan 3) based on trade plan you execute your trading strategy Regardless what is trading strategy: Elliot wave correction waves, harmonic waves, candle patterns, confluence of indicators, pivot points .... what ever. Strategies are mainly not problematic. What is problematic is where you use them. On the internet there is this false theory that strategies go through periods with profitable performance and that this profitable performance periods need to make up/cover up for the losing performance period. That Idea is generally false. for Example: If on given day,EUR/USD was trending LONG, from 1.038 to 1.064 value, in London Session. Every strategy that gave LONG trade signal between 1.038 to 1.05 was highly likely correct, and trader pocketed few pips of profit. THIS is not because of trading strategy, but because trader took LONG trades in UP MOVING DIRECTION. Major problem with strategies is that they are used all over the place cross all timeframes. If Price is moving up, majority of strategies that gave long signal in that UP MOVE , were correct, this has nothing to do with Elliot wave, or RSI, or MACD or Pivots. IF was long signal in long direction. If we now return to beginning of this post: Based on flow/structure/direction/bias analysis you can create you trade plan. For Example: EURUSD was trending SHORT, it stoped at 1.035. Based on manipulation of LOW (price broke short, than imediatly retrace back to 1.035 and is now holding around 1.035 but above it) You can assume that there is: A) no selling interest B) buying value Trader can't know which one it is, but can assume and speculate on future direction. Out of this information trader can create Trade plan. FOR EXAMPLE: take every opportunity LONG between 1.035 and 1.065. Many times traders MIX zig zag drawings , with trade plan. Now that the trader has some idea of what might happen. He/She can open up his strategy. And take only the trade signals in direction of his trade plan, within the given range. Meaning if speculation is that High will be at 1.065, taking a long trade at 1.06 would be too late. But taking long between 1.035 and 1.05 will give enough room to at least scale out if not closing the entire trade. On the picture above, you can see what I use to determine direction. I seek potential Buying and selling values on HTF, after selling or buying value is confirmed I take trades in that direction on much smaller timeframe until Price action on HTF changes. Cheers
Education
by ForexVizionist
1
EURO under pressure - Key element to watchEURO under pressure - Key element to watch Context : Since 2000 EUR/USD is evolving between 0,82 and 1,60 providing two clear floor and cap level following the trend of global macro economy and the strategies deployed in the differents major central banks. The last past weeks following the decision to lower the Quantative Easing, the different actions took in the world in order to control the inflation and the good figure confirming the pursuit of the accumulation of the growth (even slower than last year) in the develop countries - The consensus for the Euro were quiet clear => main research highlighted 1,08/1,12 as strong support area and 1,18/1,23 as strong resistance for a further trading range without significant element for EUR or USD to take significant advantage regarding Growth, inflation and monetary policy. Today the situation is a bit different with less visibilty regarding the situation in Ukraine and even if we can exclude potential risk of global war, we can't ignored the risk about bilateral sanction between NATO countries and Russia. It means significant problem with energy/metals/commodities supply and price, political destabilisation, cyber attack, etc... This kind of modification take time to be absorbe and modified in order to set up a new strategy were russia will stay isolated from global economy for a while. The first economy to be impacted will be definitely the Europe in this crisis and the EURO since one week is in a free fall mode. So what to understand from EURUSD chart and what to focus on? : - Only a Weekly Chart Basis 1/ The previous upside trend ABC 0,82 to 1,60 has been follow by a consolidation in ABC towards 1,02 (or a construction of the long-term downside swing within a huge triangle) 2/ For now the ABC downside pattern within the bearish channel seems to be finished with the test of the 1,02 support - Then we are evolving within a range/triangle dynamic (Blue Frame) ---> That the graphical situation illustrating the context above. 3/ If the ABC downside pattern is not finished we gonna see a downside breakout from the triangle/range structure on going (inside the blue frame) to open further downside risk ----> Risk = Irregular running Range (Test of the 1,0075/0,9750) ----> Risk = poursuit of the bearish channel within a complex ABC X ABC pattern towards 0,8450 4/ RSI indicators is approaching support but didn't reached the previous oversold area where bullish reaction started = It is more likely to see more bearish momentum to be developed. 5/ Moving averages are now capping the market at 1,1530 Analysis Regarding the key elements and giving more weight to the Waves structures and the recurrence of Fibonacci levels, we can still giving more credit to see a development of a further trading range (blue frame) than a free fall of the Euro within the bearish channel towards 0,8450. Where it is more tricky to to have conviction is between a range in irregular with the test of parity before swinging up or triangle pattern with 1,0750 as key support before developing a new upside swing The key resistance is for now clearly set at 1,1530 and only a break out of this resitance can lower the downside risk significantly. Trading => Intraday/multi days traders will use 1,0750 as stop loss level to catch the dip and play agressive recovery with for now the Moving Average as Target to watch => Mid-term Institutional trader seems already in restructuration of the strategy by activating action to hedge the commodities upside risk and the pressure on Europe, so i would say that the hedge in place is between 1,0750/0,97 for the downside risk and 1,1530 (Neutrality area protection to adjust option)
Education
by JeanJean1983
Don’t bite the bait. Time is money. This is a case of comparative advantage. Which means the less time it takes the coin to produce oil or energy, maybe even transactions. All will go down and then pop back up, much like a sinking ship. Within the next 5 hours, an entry point will be present. It’s time to glean for Q2, because after this the prices will hit an all time high and then go back down until July. A lot will assume now is too soon, but yesterdays price isn’t todays price. However, the cup and handle has presented its self. Now the next sign of equilibrium the price will make will be like a Nike check. Or a Wolfe wave. The eagle has left the nest. 2. API CRUDE OIL U.S.: anything under 5 is a sink. Forecast is in the -1.0 range. TOTAL VEHICLE CAR SALES: Elon and Twitter Don’t hire the bait just yet.
BITSTAMP:BTCUSDEducation
by Traliciaa
2
Keep your trading charts clean!🧹 ✅Keeping Charts Clean: Since a trader's charting platform is his or her portal to the markets, it is important that charts improve rather than hinder a trader's market analysis. Easy-to-read charts and workspaces (the entire screen, including charts, news feeds, order entry windows, etc.) can improve a trader's situational awareness, allowing him to quickly decipher market activity and react to it. Most trading platforms allow you to largely customize the color and design of the chart, from the background color, style and color of the moving average to the size, color and font of the words that appear on the chart. Setting up clean and visually appealing charts and workspaces helps traders use indicators effectively. ✅Information overload: Many modern traders use multiple monitors to display multiple charts and order entry windows. Even if six monitors are used, you should not consider every square inch of the screen as technical indicators. Information overload occurs when a trader tries to interpret so much data that in fact they are all lost. Some people call this analytical paralysis; if too much information is presented, the trader will most likely not be able to respond. One way to avoid information overload is to exclude any extraneous indicators from the workspace; if you don't use it, lose it – this will help reduce clutter. Traders can also view charts to make sure they are not burdened with multicollinearity; if multiple indicators of the same type are present on the same chart, one or more indicators can be deleted. ✅Tips for organizing: Creating a well–organized workspace using only relevant analysis tools is a process. The set of technical indicators that a trader uses may change from time to time depending on market conditions, strategies used and trading style. ❗️On the other hand, charts can be saved if they are configured in a user-friendly form. There is no need to reformat the charts every time the trading platform closes and reopens. Trading symbols can be changed together with any technical indicators without disturbing the color scheme and layout of the workspace. ✅Recommendations for creating easy-to-read diagrams and workspaces include: ⏺Colors. The colors should be easy to view and provide great contrast so that all data can be easily viewed. In addition, one background color can be used for order entry charts (the chart that is used to enter and exit a trade), and a different background color can be used for all other charts of the same symbol. If more than one symbol is traded, you can use a different background color for each symbol to simplify data isolation. ⏺Layout. Having more than one monitor helps to create a comfortable workspace. One monitor can be used for entering orders, and the other for price charts. If the same indicator is used on several charts, it is recommended to place similar indicators in one place on each chart using the same colors. This makes it easier to find and interpret market activity on individual charts. ⏺Sizes and fonts. Bold and clear font makes it easier for traders to read numbers and words. Like colors and layout, font style is a preference, and traders can experiment with different styles and sizes to find a combination that creates the most visually pleasing result. Once convenient labels are found, fonts of the same style and size can be used on all diagrams to ensure continuity. ⚠️It is important to note that technical analysis deals with probabilities, not certainty. There is no combination of indicators that accurately predicts market movements in 100% of cases. While too many indicators or improper use of indicators can blur a trader's view of the markets, traders who use technical indicators carefully and effectively can more accurately determine trading attitudes with high probability, increasing their chances of success in the markets. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
24
1977 Interactive Double Zigzag Elliott Wave TheoryS&P 500 Index (SPX) Trying to dive into some Elliott wave theory and I have a more "interactive" chart to present based off of historical data. I chose this sequence and timeframe because it seems easiest to understand with confirmed examples from some of my own reading materials. This was notated by previously known EWT masters to be a "Double Zigzag" corrective wave, in a bull market. I have taken the time to attempt to notate the subdivisions more clearly. This may not be perfect, but it is the best I can provide of a learning resource at this moment from my current understanding of EWT. The wave degrees may be slightly wrong but I think the wave count is technically correct as long as the first wave C of the first move down is actually some sort of diagonal. I also speculated that it could be a triple-three but I think a diagonal impulse makes more sense in that phase of wave C. Thanks for checking it out! Follow for more EWT ideas! My Elliott wave analyses could be wrong at any moment , this is practice solely for educational purposes. Please do your own research as always! Thanks for tuning in :) Disclaimer, anyone in the trade needs to do their own due diligence and decide what is right for YOU. My charts can be wrong at any time and it's very important that you have your own strategies and plans in place. I run this channel for my own educational purposes of learning to trade, and I will never be 100% right, so please do not let me confirm any bias for you! (Dangerous to do so, stay safe and remember the basics & rules of risk assessment.) Expect the unexpected and happy trading!
TVC:SPXEducation
by Hambooger
Pattern Trading\EW Impulse BTC 2018-20 ExplainedPattern trading with the knowledge of how to set targets and an understanding of busted patterns and their respective probabilities can lend accurate data with which to build stratagems for long term investing. I believe targets are eventually met and often lead into other patterns that create new targets along the way. A long term trader\investor must be patient with the market and wait for conditions to be met. Set your targets as you journey along with PA. Here we see a series of LTF events carving out a cup on the HTF along the way. The handle itself, after a pullback, triggered the 1st EW impulse wave which led to a wave 5 peak of 64k. For a complete guide into pattern trading, busted patterns, EW analysis and candlestick patterns check out www.thepatternsite.com. The site has a wealth of information for trading. I recommend knowing and understand Reversal, Continuation and Bilateral patterns and how to use them to set targets. Also know the odds of single, double, and triple busted patterns with each type of triangle and EW principles. Thank you for taking time out of your day to read this, I wish you well on your trading journey. If you have any questions please feel to ask, I'll do my best to answer them ASAP.
BITSTAMP:BTCUSDEducation
by Happy_Candles