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Wave Analysis

How Is The Market Shifting Trading Liquidity?How Is The Market Shifting Trading Liquidity? The first phase: With the start of the war between Russia and Ukraine, we saw that the market shifted liquidity mainly to safe currencies, USD, CHF, JPY and Gold, OIL (metals in general). This is a normal scenario that usually happens. The shift of stock liquidity: In a war event like the one we are already experiencing between Russia and Ukraine, we all know that the first companies to benefit are the guns and ammunition companies, the Aerospace, and the defense sector in general, etc. The war will require high resources if it escalates further, so these companies are the first to benefit from this situation. So consequently their stock price tends to rise quickly. 2. Given the fact that Russia is one of the largest exporters of oil and gas in the world, this topic would be the second issue. Here we have the second sector that increases the value of their stocks, "Oil & Gas Integrated", "Oil & Gas Midstream". So everything related to the production, distribution, and services of oil and gas. Phase 2 As long as Europe is very close to war the eyes of the market are on it. Free liquidity has shifted to countries far away from Europe that is safer and not economically connected to Russia. Money moved to Australian Dollar (AUD) and New Zealand Dollar (NZD) Also the governor of Japan in a press conference last week said that they can be affected by the European economy as they have close business relations. Is that true? Japan does not want their currency to be too strong as they lose in exporting their goods. So here it comes ... JPY starts depreciating by losing ground as a safe haven currency. We also have a Swiss bank that is preparing to intervene and also stop the strength of the CHF. Other economies are trying to do the same through interest rates. Some of them want to raise interest rates due to rapid and large devaluation. Some others want to weaken their currencies so as not to hurt exports of goods. Phase 3 Close all your foreign exchange profits and stock investments as the market has already absorbed the war and the economic problems associated with it. Financial institutions will want to close the profits on their investments as the stock price will not rise indefinitely. It is the same situation as with pharmaceutical companies during pandemics. Once Wallstreet players leave the market, then you are alone. So be smart and do not be greedy in these situations. Phase 4 We will now stage the real economic crisis and the inflationary pressure that is happening. So now you need to think about the next sectors where you can invest and benefit from the coming events. #stocksmarket, #forexanalysis, #cryptocurrency, #stockinvesting, and #tradingstrategies #forex #commoditymarkets #commodities #commodity #stocks #forex #investing #forexanalysis #finance #cmt #cft
TVC:DXYEducation
by KlejdiCuni
12
GOLD'S NEXT MOVE?Little educational post for you guys! If my analysis is correct & the current uptrend is Wave 5, an effective way to estimate how far this last bullish cycle will go is to go back & look at Wave 1, when Gold first started its uptrend in 2006. Wave 1 & Wave 5 tend to be very similar in how many PIPS they move, with a few hundreds PIPS difference which is very accurate for higher TF analysis. I have done this on my chart & it shows me where Wave 5 will possibly end before correcting itself over the next few years! Do this for yourself & you'll find the results you're looking for. I have covered out the price it could go to as it'll only be exclusive on the Market Breakdown Report for Investors. Markets are looking juicy for the foreseeable future🦾
OANDA:XAUUSDEducation
by BA_Investments
FHZN - The power of elliot waves | Volume 2The zurich airport is tough, but in the coming months this toughness will be tested once again! SIX:FHZN Our last analysis on this share was published on January 12, in which we warned about a potential sell-off. In this analysis we highlighted the importance of the wedge formation to our subscribers. In the last days the stock fell by more than -20% and we have now left this formation. Today zurich airport published its earnings and based on them we can evaluate the progress of the company. The airport was able to slightly reduce its net loss in the past year but disappointed investors with lower revenues than expected . Revenues were just under 680 million , which is about half of what they were before the Corona crisis. The management announced that a full recovery to the pre-crisis level of 2019 is not expected until the end of 2025. Investors will have to be patient with the company and as most assumed there won't be a dividend payout again this year. This however gives the management the opportunity to direct the money to where it's most needed. Overall, the airport is recovering in small steps from the shock of the Corona crisis. The upcoming years will bring further difficulties, but the management will concentrate on navigating the company back to profitability. Technical explanation of the elliot wave structure: As mentioned above, the share price has fallen by almost -20% since we last warned of a sell-off. We as Mendenmein Capital see this as another confirmation of our calculations. Nevertheless, we assume that the share has now expanded a first downward impulse in the white wave (1) and in the coming weeks a slight recovery must be expected in the white wave (2). This wave will lay the foundation for further sell-offs and the target for the next year is located at just 95 swiss francs. The white wave (3) should be able to reach this target without any problems. After a short recovery in the white wave (4), a final wave (5) will continue to correct towards our final target of 80 swiss francs. We assume that this downward impulse will occupy us in the coming months and years. In the long term however, we are extremely bullish and the formations of the last years point towards a very large wave I / wave II super cycle. This means that we have a multi-year bull market ahead of us after the completion of wave II, our subscribers are familiar with this term by now. The long-term price target for this stock is 450.- and we at Mendenmein Capital are extremely confident in our optimistic views. On our website investors can learn more about the zurich airport share and other stocks! www.mendenmein-capital.com Disclaimer: According to legal regulations, Mornau-Research is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk. Mornau-Research cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence. =============================================================================================================== If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
SIX:FHZNEducation
by Mendenmein-Capital
Three Black Crows Candlestick Pattern 📉📉📉Three black crows is a phrase used to describe a bearish candlestick pattern that may predict the reversal of an uptrend. Candlestick charts show the day's opening, high, low, and closing prices for a particular security. For stocks moving higher, the candlestick is white or green. 🎯 The three black crows candlestick pattern is considered a relatively reliable bearish reversal pattern. Consisting of three consecutive bearish candles at the end of a bullish trend, the three black crows signals a shift of control from the bulls to the bears. ✅ The black crow pattern consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed lower than the previous candle. Often, traders use this indicator in conjunction with other technical indicators or chart patterns as confirmation of a reversal. ✅ Three Black Crows Explained Three black crows are a visual pattern, meaning that there are no particular calculations to worry about when identifying this indicator. The three black crows pattern occurs when bears overtake the bulls during three consecutive trading sessions. The pattern shows on the pricing charts as three bearish long-bodied candlesticks with short or no shadows or wicks. In a typical appearance of three black crows, the bulls will start the session with the price opening modestly higher than the previous close, but the price is pushed lower throughout the session. In the end, the price will close near the session low under pressure from the bears. This trading action will result in a very short or nonexistent shadow. Traders often interpret this downward pressure sustained over three sessions to be the start of a bearish downtrend. ✅ Limitations of Using Three Black Crows If the three black crows pattern involves a significant move lower, traders should be wary of oversold conditions that could lead to consolidation before a further move lower. The best way to assess the oversold nature of a stock or other asset is by looking at technical indicators, such as the relative strength index (RSI), where a reading below 30.0 indicates oversold conditions, or the stochastic oscillator indicator that shows the momentum of movement. Many traders typically look at other chart patterns or technical indicators to confirm a breakdown, rather than using the three black crows pattern exclusively. As a visual pattern, it is open to some interpretation such as what is an appropriately short shadow. Do you use this candlestick pattern ?
BITFINEX:BTCUSDEducation
by AnonimFXRO
GBPUSD | Why This Pattern Today?A corrective pattern like the descending triangle usually begin to form when the price is pausing from the predominant trend movement. This happens too often when any big news is expected to be published in the near future. Like today that we have NFP 1. Price makes the first Impulsive move 2. The next stage is the corrective movement. Here we can see market players waiting for the news to come out or for a specific situation to be clarified. 3. During these moments we see that the buyers are positioned at the bottom and the sellers at the top of the support area. 4. Until the price breaks above or below the pattern, we will never know if this pattern will change trend, or it will continue to move with the prevailing trend. 6. Trading within the model is risky but can be done with strict rules and commercial management. 6. The Descending Triangle is usually a bearish continuation pattern. Thank you and Good Luck!
Education
by KlejdiCuni
9
Japanese Candlesticks: learning to read and understand🕯 ✅Japanese candlesticks are the most popular way to read the price movement on charts. They are visual, easy to learn and the main thing is that they work. ✅The first mention of candle patterns can be found in the Japanese rice trader Homma Munehisa in the 1700s. Almost 300 years later, candles were rediscovered by Steve Neeson in his book titled "Japanese Candles. Graphical analysis of financial markets". ✅Candlestick charts provide much more information compared to linear charts and are currently the preferred market analysis tool for traders and investors. What are Japanese candles? 🟢Each of the candles tells us four facts about itself: the opening price, the maximum price movement, the closing price, and the minimum price movement. ⏺A bullish candle is formed when the price rises. In financial markets, the term bullish means a long position or a buy. ⏺A bearish candle is formed when the price falls. In financial markets, the term bearish refers to a short position or sale. ❗️The body of the candle is the space between the opening and closing of the candle. If the body is green, it means that the closing price of the candle is higher than the opening price. If the color is red, it means the closing price is lower than the opening price of the candle. ❗️Candle wicks represent the highest or lowest points that the candle has reached. 🟢Each candle represents a selected time frame or time interval during which it opens and closes. For example, on a 4-hour chart, candlesticks open and close every 4 hours. 🟢If we line up several candlesticks, we can compare them with a linear chart. Candle wicks also show price fluctuations. Thus, we immediately get the maximum information that we need for effective market analysis. ⚠️A trader who knows how to analyze and interpret candlestick patterns or patterns already understands the actions of financial market participants a little better. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
14
MARKET STRUCTURE AND PATTERNS TRADING GUIDELINES. 1. Identify trend direction from monthly, weekly, or daily 2. Scale down to lower timeframes for proper entries 3. Look for such patterns 4. Don't expect the market to play out as above, your lines are your limits, not the limits of the market. 5. The diagram is a road map, the market will deviate after getting enough liquidity but it will follow the trend afterward. 6. Be fluid enough to adjust to the current market conditions. Don't fight it. 7. Have defined risk management and enjoy trading 😉
Education
by INFINITY_WAVES
4
ELON MUSK QUOTES. For powerful thinking👨‍🎓 1️⃣"When it is important enough, you do it even if the odds are not in your favor." 2️⃣"No, I don't ever give up. I'd have to be dead or completely incapacitated." 3️⃣"Persistance is very important. You should not give up unless you're forced to give up." 4️⃣"I think it is possible for ordinary people to choose to be extraordinary." 5️⃣"Don't confuse schooling with education, I didn't go to Harvard, but people who work for me did." 6️⃣"Constantly think about how you could be doing better and keep questioning yourself." ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
12
The ART of profit booking I am posting a chart for educational purpose using S&p 500 index with heikinAshi candle and elliott waves trading is an art of buying at low and selling at high, looks easy to do? if so why more people loosing and big players minting money? trading is a money making process when the crowd has extreme interest in one direction(buy /sell). when everyone in the street is buying, it is the RIGHT time to sell. The ART of profit booking without harming buyers(they don't know what's happening) is described in the chart. Because if they knew in advance then to whom the seller has to sell? Actually speaking the BULLS AT THE BEGINING OF THE TREND NOW BECOME BEARS! SELVAM BE, MBA option trader
SP:SPXEducation
by selvamB
1
Why gold is the king during all kinds of crisis? You might have heard a lot of things about the benefits of investing in gold these days. Gold has been called the best and the king of investment, or it is no longer worth investing in because it will not grow anymore. Gold will remain king forever in investing, let me explain why. The price of gold will increase in the coming days but will not decrease in the same way as the world is moving towards the day. The Corona Pandemic and the Russia-Ukraine issue, in particular, have shown it with our fingers in the eye. There are a thousand reasons why investing in gold can be explained. Why investing in gold is safe and profitable. I will try to explain some of the significant reasons that can easily inspire you to invest in gold. Some put their money into stocks, bonds, and real estate, but what does it give them? Gold has gone through many ups and downs and still has a long way to go. There’s no limit to how much you can own with stocks and bonds. With gold, there’s only so much that can be mined or dug up from the earth, which means you won’t be seeing any inflation on your value as time goes on. Inflation with stocks and bonds creates losses in value over time if your investments don’t keep up with price fluctuations. Gold has always been called the best investment during a crisis. Gold has been called the best investment globally, but you have to do your research before you put your money in an unknown commodity like gold. Researching gold will give you an idea of its value over time. You can also check other websites to find out what others think about gold and how it stacks up against other investments. There are lots of benefits to investing in gold. There are several different types of investments, such as stocks, cryptocurrency, and bonds, that have many risks involved because they go up and down with market fluctuations. With gold, there’s no chance for significant fluctuations. Rather than that, gold is more stable and less volatile and follows proper rules. It’s always worth the same amount, which makes this type of investment safer than others. During Corona Pandemic in the last two years, we have come to realize this very well. Although stocks, bonds, and cryptocurrencies have risen in value since the beginning of the Corona, over time, everything except gold has seen a bubble up. No asset other than gold has been able to sustain them. If you look, Nasdaq has dropped about 15% since November last year. The shares of Apple, Microsoft, Google, Tesla, PayPal, Facebook, Amazon, and almost all the big companies have dropped hugely. Cathie Wood’s ARKK fund illustrates the beating that mid-to-large cap tech has taken. It’s down 58% since last February and 47% since November. You will be more frustrated when you look at cryptocurrencies. Most cryptocurrencies have lost much of their value. But gold has surpassed everything and has only risen to the top, giving investors a stable profit. Gold is a hedge against inflation. Gold is a hedge against inflation because you would still own an amount that could be sold today even if it were to lose value. Gold is a hedge against inflation because you would still own an amount that could sell today even if it were to lose value. Inflation has started rising a few days after the Pandemic. Since the Pandemic has caused a lot of business losses, inflation has naturally increased, and economic growth has slowed down. As inflation rises, central banks naturally try to control inflation by raising interest rates. Typically, if the bank rate increases, the gold price drops. But if the economic uncertainty increases, then the gold price does not drop that way but the reverse increases. We have seen that gold has been a hedge against inflation in the last few months. Although almost all the assets have lost their colossal value, gold is still rising due to inflation. I think during inflationary pressure investment in gold is a good choice. Gold will be valuable for a long time. The value of gold has been on the rise over the years, and so will the return on your investment. Gold is a hedge against inflation because you would still own an amount that could be sold today even if it were to lose value. Inflation has started rising a few days after the Pandemic. Since the Pandemic has caused a lot of business losses, inflation has naturally increased, and economic growth has slowed down. As inflation rises, central banks naturally try to control inflation by raising interest rates. Usually, if the bank rate increases, the gold price drops. But if the economic uncertainty increases, then the gold price does not drop that way but the reverse increases. We have seen that gold has been a hedge against inflation in the last few months. Although almost all the assets have lost their vast value, gold is still rising due to inflation. Gold is a haven in times of crisis, such as war, economic instability, or natural disaster. It’s also an excellent investment to make when you require extra cash or need to protect your wealth from inflation while the market crashes or fluctuates wildly. If you want to get long-term profit, investment in gold could be a good choice. Gold is Formidable Gold is formidable because it has a long way to go before reaching its final value. Gold is still new and doesn’t have the same recognition as other investments. So, you could consider gold an investment option for now until it becomes more widely known and eventually becomes even more valuable. If your investments don’t keep up with price fluctuations, you are losing value over time. But with gold, since there’s only so much that can be mined or dug up from the earth, your value will gradually increase over time without any risk of loss in value. As mentioned before, gold is currently an unknown investment and might not be recognized or valued by many investors yet. With this in mind, if you’re looking for an option that doesn’t require too much work and isn’t too risky, then gold is an excellent option to think about investing in today. You can’t deny investment in gold is more formidable than investing in another asset in the current time. The Amount Of Gold Is Limited You can’t make gold in the laboratory or the factory even if you want to. So gold stocks are always limited. Many of us say that bitcoin cannot be made arbitrarily, so the price of bitcoin will exceed one million dollars. Cryptocurrency has not been created for many years. So it cannot be said yet; this is the last word. And Bitcoin is not the only cryptocurrency on the market. For the sake of argument, bitcoins can no longer be made after a certain amount, but there are now over 6,000 cryptocurrencies on the market, all of which are being used as alternatives to one another. But since the days of gold, gold has been used as a medium of exchange. What is the alternative? No answer. You might say that there are money notes as an alternative to gold. Wait! Money notes have no instinctual value like gold. It’s just a piece of paper. Its value is also different in different countries. Maybe the money of one country cannot go to another country. But gold runs all over the world, and it has instant value. Gold is a safe haven asset. Gold is a safe haven asset. While the price of everything goes down during any crisis, the price of gold goes up in reverse due to its peak demand as a safe haven. Gold prices have risen almost all the time since the 1970s, according to the Economic and Political Crisis. You don’t have to look too far. Just look at the 2008 economic crisis. See the chart above. The economic crisis began in late 2008. When the economic crisis started, the price of gold was 670 / ounce. It took almost three years to overcome this economic crisis. And in these three years, the price of gold has risen by about 1230 USD, which is 12300 pips in pips. Let me make it a little easier for you when Corona Pandemic started in early 2020, the price of gold rose by about 614 dollars per ounce in 6 months, 6114 pips per pips. See the chart above. Overall, gold is the only asset that is truly a safe haven asset. Now you can say the price of bitcoin went up more, then? Wait! Bitcoins are not as stable as gold. Too risky, too volatile. Just as bitcoin has risen, so has it. You should never invest in such a risky and high volatile asset as an investor. And yet you see gold is about to rise later. With stocks and bonds, there is always that chance for financial ruin. You could wake up one morning to find out that the company you’ve put all of your faith in decided to cut their production or even just close their doors. But gold will never fail you because those factors do not affect you. This makes it easy to compare prices with other investments, like stocks and bonds, because they keep changing over time, so it can be hard to figure out what they’re worth at any given point in time. Gold is easy to cash. If you cash in your gold, you can get your money back, even if it’s just a few years later. Another good aspect of gold is that what can readily cash gold. You need cash now, and you can sell it instantly if you want. The money of one country may not go to another country, but if you have gold, you can quickly cash it. If you have gold, you can quickly get a bank loan against those goals and very fast. Gold can also be invested in many aye, such as physical gold coins, bars, or gold bullions. These are very easy to cache. Gold Stocks, ETFs, Gold Options, Gold Bonds, Sovereign Bonds, Gold Funds are some of the more options you can easily invest and cash in, which is often not possible with other assets. Cryptocurrency transactions are not allowed in many countries of the world. But there is no country where gold transactions are prohibited. It is easier to cash in on gold than on any other asset, and the options for investing in gold are more than any other asset. What happens when the stock market crashes? The value of your stocks and bonds will drop and leave you with debt or even bankruptcy, but with gold, you can still have peace of mind that you are financially stable. Central banks reserve gold Almost all the countries in the world have more or less gold reserves. The United States itself has more dollars in reserves than other countries. That is America but the number 1 country in the gold reserve. America also knows very well that this paper money will not be of any use in case of danger. Commodity and gold are the hope then. The United States has imposed economic sanctions on many countries in its interest. Those countries support their economies with this gold. And they deal with the outside world either with gold or their home currency. And the more gold reserves a country has, the more foreigners come to that country. External investors do not feel the risk. Because outside companies think they can easily take the profit after investing. And day by day, America is imposing an economic blockade on different countries. That day is not far away. Different countries will reduce their dollar reserves and not use gold or home currency. However, it is safe to say that gold will soon gain the confidence of many countries as a reserve currency and will use gold as a medium of exchange, excluding the dollar. Conclusion Gold is a safe haven for the world’s currencies. It’s not just a valuable investment, it’s a hedge against inflation, and it’s an excellent way to save for retirement. Given that the amount of gold is limited, it’s not going anywhere anytime soon. And if you’re looking for an investment that is easy to sell when the time comes, gold is your answer.
TVC:GOLDEducation
by Gold_Trading_Expert
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