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Wave Analysis

Trading the cup and handle breakout ($ATOM) -18.02.22Ideal trading setup 1. round bottom with a small retracement What you would want to see on a classic cup and handle(cnh) is a nice round bottom with followed by a slight retracement. 2. Volume breakout After the formation of the cnh, the market will try to make a run, temporarily breaking the horizontal resistance. 3. Consolidation Even though the price drops at some point in this area, we see it bounce back up before breaking out of the consolidation zone. 4. Volume expansion on break out There is a significant increase in volume upon breakout, another good sign. 5. Breaking out of the consolidation This time around, we see the market trying to make another run up, and is eventually pulled back. 6.Volume expansion intact Although the market is dropping, we see the volume is still increasing. It is in form of a bearish candle, however since the movement happens inside a bullish channel, we can conclude that the increase is therefore bullish. 7. Bullish channel The price drops creates a bullish channels a bullish channel. I can see 4 waves in already (a-d). 8. The breakout Expecting to break out of the channel and eventually above of the consolidation ceiling thereby flipping resistance into support. If a resistance is tested several times, it weakens and the price will break through. 9. EMA squeeze and support We're looking for a crossover in EMAs (13, 21 55) withe the 55 acting as an overall support and the 21EMA running under the 13EMA. 10. Riding the wave. There are various ways of taking profits and everyone has their own preferences. Given one doesn't know when to take profits, the ideal exit will be when the price touches the 55EMA again, chances are by that time the EMAs might be flipping from being support and would now act as the resistance. Tip : You can add other tools like the MACD and the likes for better clarity. Note : This is a common alt coin breakout pattern, so it goes without saying that most coins at the moment are developing into this formation, only chose ATOM cause it was in my watchlist. Credits: @EmperorBTC Happy trading, due diligence is advised!
Education
by initmx
3
Human vs Machine, Elliott WaveThe goal of this article is to help the platform developers improve he final product..! Chart pattern beta is a new feature on the indicator menu. First let’s define what Beta version means: Beta version is an early version of a program or application that contains most of the major features, but is not yet complete. This is a very important key that needs users attention..! In the above example you see two different setting for this indicator, Absolute vs Percent. There are 3 cardinal rules that needs to be considered in Elliott wave analysis: 1: Wave 3 can NEVER be the shortest impulse wave. 2: Wave 2 can NEVER go beyond the start of Wave 1. 3: Wave 4 can NEVER cross in the same price area as Wave 1. As you can see in percent mode the first and the most important rule is not met..! Wave 3< 0.618 * wave 1 Wave 3< wave 5 So This automated feature doesn’t count correctly and breaches the cardinal rule number 1. Moreover In the absolute mode you can see wave one is bigger than wave 3 and wave 5 , interesting, wave one is equal to wave 3+ wave 5, which can not be correct. Usually, wave 3 or wave 5 is the longest or the most strong wave not the wave 1. I strongly believe these problems and basic rules need to be corrected in the future versions. Best, Moshkelgosha
NASDAQ:NDXEducation
by Moshkelgosha
2
GoldViewFX - 30M CHART SCALPING STRATEGY IN ACTION LIVE $$Hey All, This is a follow up post from the 20 pip scalping strategy we posted (SEE RELATED POST BELOW). This chart shows you live examples of the entries and exits today. Remember when scalping with this strategy SL to be set for exit when EMA5 reverses and crosses back the opposite way. Tight stops and a numbers game, so please back test aswell. I have back tested this and the wins over SLs always been profitable over my trading periods. When we refer to floating candle, we mean floating away from MA21. It can still touch EMA5. Please don't forget to like, comment and follow to support our work, so we can bring you more quality content. GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
13
$SLP - Symmetriacal triangle tradingA Simple plan for a self defeating symmetrical triangle. If your are not sure as to which side its going to break to, you can create a dual trading plan. For instance if c is penetrated then a short will be triggered, conversely a long position will be opened when d hits. This is one ewt you can never loose in 1) its easy to identify and 2) it gives you the opportunity to go in either direction Scenario 1: wave marked pink This implies that we have a bearish setup and hence expect a breakdown. Since we know that E can't go above D, a long position is placed slightly above D Scenario 2: wave in brackets Conversely, E can't go below (D) and an ideal position for a short would be just below (D) This setup prepares you for anything the market direction
Education
by initmx
My model Of Risk ManagementHello Traders! First of all, I must tell you that trading is 90% psychology 9% is Method and 1% is your deals/trades that you put. Discipline is the most important part of psychology and there are some factors that keep your discipline alive and one of them is Risk Management. The trading method has more importance than RIsk Management and if you are trading from methods that are available on the internet then I will say RIP because the knowledge available on the internet is complete trash because it needs lots of modification before applying on a live account. Learn yourself and work hard, Create your own method with a personal trading style and if you need any help then I am here to help you. Why do we need Risk Management? Risk management helps you to deal with uncertainty. If we look at the fact that 90% of the traders lose money then there is no difference between you and 90% of the traders if you completely ignore risk management. If you have not planned your Risk management yet then here is my model of Risk management. In my model, I only take 2% of the risk per trade and we will only trade if the trade will provide 1:3 or more Risk: Reward. Good risk-reward is the only key that will keep growing your account. My average Risk:Reward ratio is 1:4 and my win rate is close to 60%. Here is an amazing calculation. Suppose your trading balance is 1000$ so you will trade with 10% of the account which is 100$ and trade with 10x leverage and your stop loss must not be more than 2% means if you lose you will lose only 20$ which is 2% of the trading balance and according to my method our target will give you 1:4 means you will gain 80$ at the target. If my accuracy is 60% then if we trade 10 trades in a week means We lost 4 trades and with every trade we lost -20$. So -20$X4 = -80$ We won 6 trades and with every trade, we made 80$ profit. So 80$X6 = 480$ In the end, we will make 480$-80$ = 400$ easily. That's the power of Risk management also it's a power of a Good trading Method. Here is another Example If a method provides 1:3 R:R with 50% accuracy then here is another interesting calculation If we trade 30 trades in a month means we will lose 15 and will win 15. Same as above we will trade with 10% of the account which is 100$ and trade with 10x leverage and stop loss is not more than 2% and the target is 6%. (This is an average calculation of your all trades.) We will lose -20$ per trade and with 15 losses we will lose 20$X15 = 300$ We will gain 60$ per trade and with 15 wins we will gain 60$x15 = 900$ So in the End we will gain 900$-300$ = 600$ Even with a bad win rate, you will definitely keep growing your account. It doesn't matter if you lose 3-4 consecutive trades. You will definitely make money and will end up in profit. Also, remember I told you Method is more important than risk management and if you don't have a good method then work on it or follow my trades until you create yours. Don't forget to hit the like button and follow to stay connected.
Education
by Aadil1000x
4
BUILDING YOUR ANALYSIS WITH CONFLUENCESWhen we consider wave principles along with the basic fundamentals of the market, this will take your trading game to a whole new level. In the analysis of Gold we have a number of thing happening. 1.) Price is sitting below a market resistance zone this is an indicator for price to fall. 2.) Price is getting higher but the volume is not reflecting this momentum. (The sentiment of the market is indicating that the number of buyers are not reflecting with the market price.) 3. Elliott Wave principles indicates that after a 5 wave impulse the market must correct in a 3wave sequence. A common terminus point for wave 2 in a 5 wave sequence is the 78.6% zone. We are seeing 3 clear indication that we should be expecting a decline within the market. The more confluences you can add to your analysis the higher your probability of having a profitable trade.
FX_IDC:XAUUSDEducation
by wavefxacademy
4
Chart patterns vs price actionChart patterns are strong if well applied, take a double bottom on the chart, it could have basically occurred any where, for instance around the support zone and in the middle of the range or a trend. Same goes for the other chart patterns as the descending triangle and the head shoulders. Price action is how price reacts at a certain level, especially on the key levels (support and resistance) the most fundamental thing you will ever learn in the trading game are this levels, never take them for granted. This are the levels at which you want to spot this patterns, not just in the middle of no where, why do you think the reason they say, trading is 90% waiting and 10% selling and buying? Waiting for price to act as expected is as much important as knowing all those chart patterns or candle stick patterns. Chart patterns are more powerful at the key levels this are the levels of interest. Make no mistake, you know better.
Education
by raymond09shao
Setup Video for Phoenix Ascending and New Bad Ass B BandsThank you, Josue for the update to Bad Ass B-Bands. The main purpose for the update to Bad Ass B-Bands is to let us know the percentage spread between the White Upper and White Lower B-Bands for the purpose of assisting with measuring risk to reward when using the Short Term Group for High Time Frame Scalping. My general rule is the reward not worth the risk if less than 4 percent between the white upper and white lower B-Bands for High Time Frame Scalping. In case you're wondering, Low Time Frame Scalping uses primarily the Immediate Group of time Frames. Stay Awesome! David
BITSTAMP:BTCUSDEducation
by WyckoffMode
19
Two Types of Elliot Wave CorrectionsWhen it comes to Elliot Wave Theory, we know of two different correction patterns . On the left you can see the classic correction, which is less common in real market situations. On the other hand, the flat correction (right) occurs more frequently in the market, since modern price action is often characterized by fakeouts . In this case, a fakeout looks like a wave B making a new high above wave A. In most cases, traders would open a trade here due to a structural break, which then runs against them (bull or bear trap). In the following table you can see how the respective correction patterns differ from each other and what you need to pay attention to. It is very important that you learn how to use Fibonacci tools correctly so that you can calculate the wavelength properly. Maybe I'll do a separate educational post on the proper use of those tools in future. Thank you very much for your attention, Your RT
COINBASE:BTCUSDEducation
by RT_Trading_
9
Motive waves (key characteristics) Hi everyone, There are four different variations of a 5 wave move: 1- Impulse wave, 2- Impulse with Extension 3- Impulse with Truncation 4- Diagonal. Five wave structures : 1- Impulse: 1-1 Extensions : Appears in either wave 1, 3 or 5. 1-2 Truncations : wave 5 does not exceed the end of wave 3. often occurs after a strong third wave. 2- Diagonal triangles: Leading Diagonal, Ending Diagonal Wave 4 almost always moves into the price territory of wave 1. Normally has wedge shape
FTX:BTCUSDEducation
by BTC-XLM
4
Cyclic Nature of 23 HR charts. How to forecast volatility.I bet nobody of you looked at 23 hour chart of EUR or GBP. But this is the chart that will reveal some secrets to you as a trader. Take a better look at it. I have no logical explanation to this but its robotic nature is effective in forecasting impulsive price moves. You can use RSI with 23 hours chart. I find it esp useful as it is using closing prices, which are clearly cyclical on 23 hrs chart. FOR EDUCATIONAL PURPOSES ONLY!
Education
by ICFX
Elliott Waves. Possibility VS Certainty !Elliott wave practitioners are sometime subject of criticism because of their apparent mistakes !. An important point that many people may not be aware of is that " Elliott waves analysis is about possibilities and probability of each possibility not about certainties ! ". In fact, there is no false or true analysis in the world of Elliott waves (if a supposed scenario governs all rules). It is about choosing what you think as the most probable scenario but keeping in mind which conditions confirm or invalidate your analysis. If a most probable scenario fails , an Elliott practitioner immediately thinks about second most probable one ! and so on. TSLA at current price and wave form is a clear and typical example of different scenarios possibility. We will investigate those possibilities in the following paragraphs but before that it is worth to mention that general trend of TSLA is up and as I previously published one more leg up is still ahead in broader view . TSLA showed a decline from ATH to 886.12 with an abc zigzag form hitting a strong proposed support at confluence of former ATH, 50 % Fibo retracement and base of down going channel. ( See related idea for more details). It then made a strong bounce back but never reached a new ATH and finished it's move at 1208 just slightly above 1201.95 minor high with another 3 leg up !. This setup offers several possible scenarios. I could predict 13 of them . Please note that possible scenarios would be considerably different if TSLA made a new ATH or showed a 5 leg up move !. Different possibilities!. We had another decline from 1208 to 980 and then a bounce back to current price. At this current position TSLA may choose different paths. Be patient . We will make a conclusion at the end of idea !. Followings are the possible scenarios as shown on the chart. We have chart of TSLA on the left side and possible scenarios on the right. Please note that right side chart is just a schematic drawing so I kindly ask you to disregard dates and prices on the right side chart: 1. Double Zigzag or Double three Correction : In this scenario , The move up from 886.12 to 1208 is a wave X which connects two correcting forms. Next correcting pattern can be either a flat or another zigzag. Actually we have 2 slightly different scenarios in this part. Difference is second part flat correction ( Double three) price goes just slightly below the 886.12 low but in double zigzag goes much lower. Forms are the same and price targets are different. 2. Double Three : Triangles in the second part of corrections are more common in complex corrections. In this case , a triangle is going to form after decline from 1208 to 980. and price will never go below the 886.12 ( except expanding triangles which is not common). Triangles can have several forms themselves : Contracting, Barrier and expanding. Here we just showed a contracting triangle in second part. We have 3 somehow similar scenarios here with just 1 shown . 3. Triple Three: We may have a boring and exhausting correction continuation which is triple three. I showed on more common triple three correction on the chart with first part being a zigzag, second part being a flat and third part being a contracting triangles. Considering the third part can be a flat and even zigzag (which is not a usual one) and triangles different forms we reach to 5 possible similar scenarios here with only 1 shown. 4. Terminal wave 1 as beginning of the new impulse after end of correction at support: Impulsive waves are always 5 wave in classic Elliott waves however , there may be 3 waves wave 1 in harmonic Elliott. It may be the case for TSLA and a move up from 886.12 to 1208 can be labeled as wave 1. in this case we are in wave 2 and another leg down is expected before making a new ATH. If you doubt about occurrence of such wave 1 see SHOP stock from 26 March 2021 to 13 may 2021. We can find many other examples in the market. 5. Antic cycle wave 1 and 2 and end of correction at support : Normally impulsive waves are 5 leg and corrective waves are 3 to form a wave cycle. Sometimes wave forms show an anti cycle with 3 legs in the direction of main trend and 5 waves in counter trends. In this scenario TSLA has completed wave 1 and 2 and we are in up going wave 3. 6. Very rare bearish scenario with 3 waves truncated wave 5 : First of all, this scenario is very rare and I give very very little chance to it at the moment but I certainly keep it in mind as a possible one !. Wave fives sometime show 3 legs instead of 5. several examples can be found for example see BTC from 56206 to 68769. Truncated wave fives can not make a new ATH. Occurrence of these two together has very little chance. One may ask : So what? Are we going to be confused? What should we do now? Do we have a clear answer ? Of course we have ! Except that rare scenario, all above mentioned possibilities suggest TSLA will finally make a new ATH . They all (except the bearish case) suggest taking out 1208 high as a strong buy point therefore If we do not have TSLA shares right now we can set our buy point above 1208 and if we already have shares we can hold them to capture the profit of next up going waves. This is how an Elliott practitioner makes the final decision considering all possibilities and probabilities. This one is a complicated one in short term but sometime we have much more easier process of decision making like TSM with a clear buy point above 135.5. It is worth to note pre-requisite of all of this scenario is that TSLA has completed wave 1,2,3 and maybe 4 of larger cycle wave and will make the last wave 5. If this pre-requisite is wrong all above scenarios are wrong. For now. I am confident about the position in the larger cycle. I spent about 10 hours to prepare this 10-min read publication so I deeply hope this to be useful and show you how can one be prepared in advance for different scenarios with the help of Elliott waves. Good luck everyone and wish you all the best.
NASDAQ:TSLAEducation
by SaeedSajedi
21
Market Tutorial: Varying Degrees Investigated with ArcsHello! Well wishes to you! In this tutorial is seen varying arcs with more - or less - eccentricity. In practical trading terms, the eccentricity would be how much time the arc covers compared to how much price it covers. An arc covering one days worth of time for a set amount of price would have more eccentricity - making it more oval shaped - than an arc covering an hour worth of time for that same amount of price. In viewing charts, it can be seen that varying degrees of impulse and corrective waves arise. One way in which these waves can be viewed is by the use of arcs. First, identity the degree of impulse that is desired. Use the steepest geometric angle - typically the 8x1 - to align the axis of the impulse with. Now, use the newly generated 1x1 impulse as the axis of the arc. Next and finally, repeat this procedure for any degree of impulse desired.
BITFINEX:DOGEUSDEducation
by UnknownUnicorn27791825
How To Succeed In Your TradingFocus on one single trading strategy One thing that many people try and do is switch between strategies constantly. This is setting you up for failure, and if the concept of probabilities is truly understood, you will comprehend the reasons why a single strategy will work. Any strategy is not going to have a 100% win rate, so first you should attempt at getting 50% of your trades right. After that mastering a 2:1 Reward to risk ratio is what will make you profitable. Trying to juggle many strategies will have you working tirelessly, but not moving forward in any particular one. Less trading, more education Many people have the conception that spending countless hours in front of the screen looking for potential set ups is how it should be, however that is completely wrong in my eyes. I spend minimal time now looking at charts and set ups, I highlight key levels I want to look at, along with alerts, and simply wait for the market to head there. Time spent looking at charts should be simply for education and mastering your strategy through back testing or simply understanding previous data. Approach the market from a neutral position Anyone that knows me knows how big I am on trading psychology and how I believe it is the most important aspect of trading. Emotions in trading can be one of your greatest enemies as it can lead you to failure even after your success. There are scenarios where you can take trades and be in positive which will lead you to feel over confident, happy, and those will ultimately will lead to irrational decisions if you let them. Those emotions will make you believe you are better than the markets, or that you can outsmart them, ultimately leading your successful trade to turn into a failure. The same can happen when you feel the opposite and lack confidence to enter another trade due to a loss, or think have feelings of doubt. This is why the market needs to be approached by a completely neutral position. Once you understand that for every person on one side of a trade, there is someone on the opposite side, you will begin to understand that the market itself is just a whole bunch of neutral information moving in nobody’s favour. Write your goals Affirmations are great and something that has helped me in every aspect of my life and not just trading. It is very important to write down your goals in order to manifest them into reality. All ideas first begin in the mind, and then come into the physical. Your goals need to be solidified, definite, and written down in order for your mind and yourself to know exactly what you are going after. Every single day, you need to read your goals aloud, envision them in your mind with every bit of detail possible in order to bring them into the physical. In order to achieve a goal you need to arrive at the destination first in your mind. Relax There is no need to rush a single thing in your trading journey, and believe me take it from my experience, every time I tried to, I failed. People attend university for years before going out into a career which then takes many years before mastering it, yet people want to master trading in a year. Patience is required in all aspects of trading, whether it’s on the charts themselves, or with your strategy, or with your learning curve. It all requires patience. If you are going after trading as a serious life career which you aim to remain in, then relaxing and taking your time is the first step. Nothing great comes from rushing it, especially the markets. Know how to handle your trades Based on your strategy and the concept of probability there are a number of things needed in order to appropriately handle your trades. Firstly, don’t touch your stop loss. I cant say this enough, but stop losses are determined as the final barrier before the trade is invalid, and they are determine before entering the trade. If you find yourself moving your stop, ask yourself why. You will find out mostly its out of fear of losing your money, which is one of the 4 fears of trading. Accept your loss and let the trade stop out, you had it there for a reason. Also, don’t leave trades behind out of fear. If you have a strategy that you have confidently developed, you should understand that the overall should be a greater number of winners than losers, and you should not leave trades behind out of fear, because they can be the ones that perform the best and make up for the losers. Another thing to have in place is an appropriate strategy for exiting your trades. Many people have trades that are in profit, however due to the lack of knowledge on how to exit their trades, they still end up not profitable. You need to have a system on how to exit your trades appropriately and at what levels. Always remember, the profit running on a trade is not yours until its closed. Risk management Yes, I know you have heard it and read it a thousand times already, but you have no idea how important risk management is until the day you master it and recognise it was the single greatest thing holding you back from success. People can have amazing strategies, the best reward to risk ratios, but with the inappropriate risk management trust me it means absolutely nothing. I have seen people overleverage on a trade simply because it “looked too good” compared to other trades, only for it to be the worst of the bunch. I have seen people lose tremendous amounts of money and one thing I can promise you is not a single one of these people lost 100 trades in a row at 1% a trade. Every single one of them lost their entire accounts due to ONE trade that they married. Risk management should be one of your main areas of focus, because believe me if you have mastered it, even with an average strategy you are doing much better than someone with an exceptional strategy with no adequate risk management. Keep track of your performance The only way to improve in any aspect of life is to first recognise what needs change and then work on it. It is very important to actually understand your positives and negatives and have them all tracked. A journal is one of the first steps in order to look in the mirror. Being completely honest is the only way a journal will work, and lying is only lying to yourself. If you are after serious improvement you need to appropriately identify all your flaws in order to better them. You should never feel down or behind, remember trading the markets is one of the biggest psychological challenges one can face, and that is exactly why not everyone is suited for them. Instead see it as a challenge to better yourself and achieve the perfection and discipline you have always desired on and off the charts. Trading the markets will teach you lessons that you will carry with you throughout your entire life and not just on the trading floor.
COINBASE:BTCUSDEducation
by opes_trading_group
331