Get started

Wave Analysis

XBTUSD The Theory of the Wolfe Wave : The theory of my Wave structure is based on a law of physics that for every action there is an equal and opposite reaction. This action/reaction often shows a definite rhythm with extremely valuable projecting capabilities to the trained eye. Many times however, little waves mix with larger waves and the waters become muddied. Sometimes everything is in synch and you will get a rogue wave effect similar to what occurs in the oceans of the world. These can be extremely profitable in the futures and stock market. On the following two pages, you will find the rules and the theoretical, bullish and bearish Wolfe Wave structures. Rules for Bullish Wolfe Wave Structure : Please not the odd sequence in counting, as you will see, it is necessary for the inductive analysis. By starting with a top we are assured of beginning our count on a new wave. The 2 point is a top. The 3 point is the bottom of the first decline. The 1 point is the bottom prior to point 2 (top), that 3 has surpassed. The 4 point is the top of the rally after point 3. The 5 point is the bottom after point 4 and is likely to exceed the extended trend line of 1 to 3. This is the entry point for a ride to the EPA line (1 to 4). Estimated Price at Arrival (EPA) is trend line of 1 to 4 at apex of extended trend line of 1 to 3 and extended trend line of 2 to 4. Estimated Time of Arrival (ETA) is apex of extended trend line of 1 to 3 and 2 to 4. Trend line of 1 to 3 and trend line of 2 to 4 must converge.
BITMEX:BTCUSD.PEducation
by Satoshi_Magnet
2
TOTAL 2Days Cycles Hello Traders As you can see in the chart above, every red circle represents an important area in my opinion. As it is seen candle bodies in 2D chart are somehow important. When price is closed lower than a lower line (blue lines in each area), or above an upper line (yellow lines), it continued its way in that direction, almost sharply. This point of view may be used in further areas found in 2D TOTAL chart. ------------------------------------------------------------------------ What is your opinion? Comment below. If you like the idea, please hit the like button and follow me so that you won't miss the updates. The information given is never financial advice. Always do your research too. Good luck.
CRYPTOCAP:TOTALEducation
by Crypto_MD
Elliot Waves Complete Guide | Chapter 4.5 - "Fibonacci Lengths"Hello Traders. Welcome to Chapter 4.5, where we will be learning about the "Fibonacci Ratio Lengths and Motive Wave Multiples" in Elliott Waves. This chapter dives into how we can determine the target for the next impulse wave. This one is an extremely important chapter if you want to primarily find the next possible targets for each consecutive wave. I have made sure to simplify it as simple as possible. 📚 Chapter 4 Glossary: 4.1 Alternation 4.2 Channeling 4.3 Psychology 4.4 Fib-Ratio 📖 4.5 Motive Wave Multiples 4.6 Corrective Wave Multiples ----- Here are the ratios for the waves: • Wave 1 - Has no target, this is the beginning of the wave structure for wave 2-5. • Wave 3 • 161.8-261.8% extension of wave 1 • There are cases when the 261.8% extension goes past this level (Extension wave within the extension wave - please refer to the guide below about extensions: • Wave 4 • Wave 4 is related to Wave 3 that will retrace to either the 23.6% or 38.2% • Wave 5 • 100% of wave 1 • 100% of wave 3 • 61.8% of wave 1-3 • so forth. - Wave 5 is usually the most difficult ones to calculate as there are variations due to possible extensions as we can see in waves 3 or 5. Wave 3 is the most likely to be extended, and if so, Waves 1 and 5 are probably going to be similar in size and time. If waves 1 and 3 look similar in size, wave 5 will most definitely be extended.
BITSTAMP:BTCUSDEducation
by XForceGlobal
46
Basic Elliot Wave - EducationalThis post is intended for educational purposes only. SCUSD is one of the better Elliot Wave examples I've seen and in my opinion a good use case for the theory. The aim of the post is to share some basic notable points to look for when trying to establish likely scenarios or just review what has happened in a previous impulse and subsequent correction(s). Firstly, EW does not predict the future. Any analyst claiming a 100% accuracy is more likely to have access to a time machine. Patterns take different routes, waves extend and fail, and corrections can transform into a complex uncountable mess. However, the theory has its benefits and can be useful to determine where an asset is in the trend and the likely price & time targets for a future move, whether up or down. Looking back on the case of SCUSD, a list of the notable points mentioned earlier: 1. 5 waves from low to high, clearly visible and difficult to misinterpret a. 3 in the direction of the trend (impulses) and 2 against the established trend (corrections) 2. Alternation between the two corrections (wave 2 & 4) a. Wave 2 was deep at 61% or the initial impulse b. Wave 4 was shallow at 38% at took less time to complete than wave 2 c. Second waves will often have deeper corrections because it's early in the trend. It's simply harder to identify whether the asset will trend or not 3. Wave 3 is 161% of wave 1, a typical extension found in a third wave a. Third waves are typically the longest and will have a much higher participation rate than any of the other waves b. Usually, there's a lot of good news around an asset in third waves, and trend chasers are good at identifying these moves c. As mentioned the participation rate is high and this is clearly visible in the volume exchanged 4. Wave 5 is 61% of wave 1 & 3 combined. There are a number of ways to anticipate the length of a fifth wave but the length can vary based on the asset class a. Fifth waves typically have less participation. Traders tend to take profit in the third when volumes are high and the asset is loved b. Fifth wave participants tend to be retail traders that are late to the party and expect the asset to continue in one direction "up only" c. Notice the difference in Relative Strength (RSI) between the peaks of the third & the fifth. It's rare to see more strength in a fifth wave because of the aforementioned d. With big players out of the market the strength and volumes exchanged during a fifth rarely meet that of the third 5. The wave 2 & wave 4 trendline. Once broken, the new trend is confirmed a. Note, this is not something one wants to wait for confirmation on because price will most likely have already retraced 50+% 6. Bear! The first wave (wave 1) of a higher degree is now complete and so commences wave 2 of the higher degree a. This is not something one would enjoy sitting through. As mentioned in the wave 2 of a lower degree, second waves tend to be deep and take a lot of time b. You can expect a 61% haircut and in the case of SC, that's exactly what happened. c. A wick below and close above on a high timeframe is perceived bullish. This can be expected and a point where traders will be hoping to get some lucky bids filled. d. Expect bad news during this period. The trend will only change once the bad news has no affect on the price, usually once everyone has been flushed out. 7. Correlation in time between the initial impulse and the subsequent correction should be noted. In the case of SC, multiple conditions have been met. a. It has retraced 61% of the initial impulse b. There is a one-one (+/-) correlation in time of the impulse and correction c. Time is too often overlooked. Time and price are the two data points you have by default on a chart. You're missing out if you're using one and not the other d. Wave 2 typically takes a lot of time to complete but provided it has completed at least 38% in time of the initial impulse, the condition of time is met e. Aiming for 61-100% of the initial impulse, and considering price action during that period is a decent approach 8. Resumption of higher degree trend after conditions are met. a. After a first and second wave is complete, the expectation is a third wave. b. A good target for a third wave in the case of SC would be 161% of the first impulse measured from the end of the second. 9. Can you be sure that even if the prior wave 1 high is broken that SC for example is going to complete five waves? a. No, just because an asset is moving upwards does not mean it's a 5 wave (higher degree) impulse. It is also possible that the entire move is a correction (e.g. 5-3-5) b In this case, a likely take profit target could be a one-one extension of the first wave which explains why you will often see selling at price points like the one-one ext. 10. If you made it this far then well done. Hopefully you'll take something valuable away from reading this post or maybe this isn't new information to you and I missed something / mentioned something that is not correct. Let me know in the comments. Good luck out there!
POLONIEX:SCUSDEducation
by MM-Charts
6
Trading - Expectations VS RealityHey Traders, In this post we will aim to clear some of common misconceptions of trading and how we can help you go further in your trading career by giving you all the tools you need to better understand the market and kill the game. ____________________________________________________________ 1. Trading is easy. Trading is relatively easy IF you know the rules of the market and use certain analytical techniques. Once you have a full arsenal of technical tools, you can easily understand the market and figure out where it may go next. 2. Market moves in one direction. That can be true to a certain extent where we have trending markets. However, within that trend there are various types of pullbacks. Once you understand the different market phases, you can make money whether it's a trending or ranging market. Opportunities are endless! 3. Buy when low. Sell when high. If only things were that straight forward, right? Sometimes the lows aren't really the lows and the highs push higher and higher. This is when you need to understand the different patterns and structure of the market to help you figure out where the best possible place is to buy or sell. Once we understand the market, we need a trading plan. How do we enter? Where do we enter? Where is the stop loss? This is where having rigid checklist really helps! You can tick things off the list and grade the trade setup from good to bad and then enter accordingly using various entry methods. It may sound like a lot of but once broken down into little bits, you can learn this EASILY and know exactly how to analyse and enter trades! ____________________________________________________________ What we will be covering: - Market structure: Impulse & Corrections - Using Index charts to correlate your trades (Very important Topic!) - Drawing a trendline and levels correctly – There’s a hack to it! - Using Moving Averages Correctly - Combining higher timeframe & lower timeframe - Different patterns and how to trade them - More topics to come! Comment below on what other topics you would like to see! I hope this post help clarify some of the misconceptions of trading and the different elements involved. See the links below for information on how we can help you!
OANDA:XAUUSDEducation
by WicktatorFX
30
Do you know the inside of the candle?A typical candle will have an Open, High, Low, Close. You will see these referred to in some text, articles and indicators as O,H,L,C Below is the structure of both a Bullish (Green) & Bearish (Red) Candle The cycle shown below, is the action within a candle, think about this – the candle opens at say 100, it dips to 95 and starts gaining ground to 120, before dropping a little to 115 and closing there. Why is this important? Think of it like a football (soccer) match – the game starts and plays out during a set time, much like the candle – and at the end we have a score. The actions in the match tell the story, but it’s the end result that counts. So, what is the story? The middle of the candle known as the body is equal to the spread and gives a clue as to the sentiment of this particular candle. Sentiment A wide spread gives the indication of strong sentiment, of course if the candle is red with a long body it would be strong bearish sentiment. If the body is narrow – it suggests a weak bias overall. Do the wicks matter? – well yes, of course. They tell another story, the wick can give you the equivalent of the match highlights – how much time/effort was committed in the oppositions half. If you think of it still as a sports match. Although the body (spread) is small this image shows a different type of strength, well actually it is more weakness to the upside than downside strength. The market has tried to push higher and failed. Wicks in some more detail. Inside the wick you can see effort with lack of reward. Shown in the image above, this can be exaggerated and emphasised if accompanied by a small body or spread. Especially in the other direction. By this I mean a large wick on the top and then the bar closing red would have emphasis on bearish sentiment – however, a small red body would show little buying interest but no real intent to the downside. The candles can tell a story, often on their own. However various formations give more detail and can be used to identify events prior to a major move. This is especially powerful when used with some other methods, that can zone in on areas of interest. Did you know? Inside @TradingView indicator tab; there is a sub section for candlestick patterns – to automate the recognition. This feature has several scripts for Doji, Engulfing, Hammers, Spinning tops and many more. This was only a quick dive into candlesticks – nothing major and not much depth, but as usual, I hope this helps even with the appreciation of what a candle represents. Some additional educational posts; Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
BITSTAMP:ETHUSDEducation
by Mayfair_Ventures
34
💨𝙀𝙡𝙡𝙞𝙤𝙩𝙩 𝙒𝙖𝙫𝙚 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡🌊●●● 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (D) ❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨 ● A diagonal always subdivides into five waves. ● Wave 2 never goes beyond the start of wave 1 . ● Wave 3 always goes beyond the end of wave 1 . ● Wave 4 never moves beyond the end of wave 2 . ● Wave 4 always ends within the price territory of wave 1 (overlap). ● An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat . ● A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag. ● Waves 1 , 2 , 3 , 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags. ● In a leading diagonal, wave 5 always ends beyond the end of wave 3 . ❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Waves 1 , 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses (all zigzags or all impulses ). ● Within an impulse , if wave 1 is a diagonal, wave 3 is likely to be extended. ● Within an impulse , wave 5 is unlikely to be a diagonal if wave 3 is not extended. ● A leading diagonal in the wave one position is typically followed by a zigzag retracement of 78.6 %. ●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Contr.D) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● In the contracting variety, wave 3 is always shorter than wave 1 , wave 4 is always shorter than wave 2 , and wave 5 is always shorter than wave 3 . ● Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves 1 and 3 . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● In the contracting variety, wave 5 usually ends beyond the end of wave 3 . (Failure to do so is called a truncation.) ● In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3 . (Ending beyond that line is called a throw-over. ● In the contracting variety, wave 3 may be equal .618 to .786 the length of wave 1 , and wave 5 may be equal .618 to .786 the length of wave 3 . ●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Exp.D) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● In the expanding variety, wave 3 is always longer than wave 1 , wave 4 is always longer than wave 2 , and wave 5 is always longer than wave 3 . ● Going forward in time, a line connecting the ends of waves 2 and 4 diverges from with the line connecting the ends of waves 1 and 3 . ● Wave 5 always goes beyond the end of wave 3 . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave. ● In the expanding variety, wave 3 may be equal to 1.618 the length of wave 1 , and wave 5 may be equal to 1.618 the length of wave 3 . ● In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3 . Elliott Wave Principal 2005 and Q&A EWI .
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
10
Elliott Corrective & Impulse Waves Understanding Impulsive and Corrective Waves We need to review some basics around price movement before moving into the exact mechanics of the Elliott Wave Theory. Each price chart has three basic types of price action phases. Elliott Wave (EW) price patterns are divided into: impulsive, corrective, and consolidation. Impulsive waves (momentum/motive waves) An impulsive wave is price movement that initiates progress in one direction, which is called the trend. Price usually moves more distance (in pips) and quicker (less time) when trending. This makes trending moves more appealing for trade setups. The waves are split into 5 impulsive waves with the trend and 3 corrective waves against the trend. Corrective waves (correction) Corrective waves are against the trend (price movements that are reactionary in relation to the previous trend-setting move). They essentially attempt to revert or undo the movement that was initiated by the preceding motive wave. Price usually moves less distance (in pips) and slower (more time), although fast corrections can occur as well (zigzags). This makes corrective moves less appealing for trade setups. If the trend is bullish, then the correction of the trend would be bearish. If the trend is bearish, then the correction of the trend would be bullish. Main Elliott Wave Rules The Elliott Wave Principle has three core rules. Your wave analysis must match these Elliott Wave rules, otherwise the wave count is incorrect. 1. Wave 2 never retraces more than 100% of wave 1. 2. Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3, and 5. 3. Wave 4 does not overlap with the price territory of wave 1, except in the rare case of a diagonal triangle formation. Elliott waves will keep you trading on the right side of waves and not against the big banks and traders, keep your trading as easy as possible.
Education
by Anbat
Trading - Expectations VS RealityHey Traders, In this post we will aim to clear some of common misconceptions of trading and how we can help you go further in your trading career by giving you all the tools you need to better understand the market and kill the game. ____________________________________________________________ 1. Trading is easy. Trading is relatively easy IF you know the rules of the market and use certain analytical techniques. Once you have a full arsenal of technical tools, you can easily understand the market and figure out where it may go next. 2. Market moves in one direction. That can be true to a certain extent where we have trending markets. However, within that trend there are various types of pullbacks. Once you understand the different market phases, you can make money whether it's a trending or ranging market. Opportunities are endless! 3. Buy when low. Sell when high. If only things were that straight forward, right? Sometimes the lows aren't really the lows and the highs push higher and higher. This is when you need to understand the different patterns and structure of the market to help you figure out where the best possible place is to buy or sell. Once we understand the market, we need a trading plan. How do we enter? Where do we enter? Where is the stop loss? This is where having rigid checklist really helps! You can tick things off the list and grade the trade setup from good to bad and then enter accordingly using various entry methods. It may sound like a lot of but once broken down into little bits, you can learn this EASILY and know exactly how to analyse and enter trades! ____________________________________________________________ What we will be covering: - Market structure: Impulse & Corrections - Using Index charts to correlate your trades (Very important Topic!) - Drawing a trendline and levels correctly – There’s a hack to it! - Using Moving Averages Correctly - Combining higher timeframe & lower timeframe - Different patterns and how to trade them - More topics to come! Comment below on what other topics you would like to see! I hope this post help clarify some of the misconceptions of trading and the different elements involved. See the links below for information on how we can help you!
OANDA:XAUUSDEducation
by WicktatorFX
15
Elliot Waves Complete Guide | Chapter 4.4 - "Fibonacci Ratios"Hello Traders. Welcome to Chapter 4.4, where we will be learning about the "Fibonacci Ratios" in Elliott Waves, a very important aspect of understanding the major points of entries, exits, and predictions of wave counts; furthermore, the Fibonacci Ratio is an extremely useful tool to measure the target of a wave's move within an Elliott Wave structure. Different waves in an Elliott Wave structure relate to one another with other Fibonacci Ratio points. 📚 Chapter 4 Glossary: 4.1 Alternation 4.2 Channeling 4.3 Psychology 📖 4.4 Fib-Ratio 4.5 Motive Wave Multiples 4.6 Corrective Wave Multiples ----- The actual practical application of Fibonacci (abbreviated fib) levels and Elliott Waves can be divided into two separate categories: • Retracement (indicated in the yellow) = identifies probable targets for a corrective wave • Extensions (indicated in the purple) = identifies probable targets for the next impulsive wave The Retracement measures how far the correction retraces the previous wave via the Fibonacci Retracement tool located on the left side of your list on the TradingView platform. Fib guidelines for retracement on all of the waves: • Wave 2 = 50%, 61.8%, 76.4%, 85.4% of wave 1 • Wave 3 = 161.8%, 261.8% only of wave 2 • Wave 4 = 38.2% to 61.8% of wave 3 • Wave 5 = 61.8%, 100%, or 123.6% of wave 4 Invalidation points: • Wave 2 retracement cannot exceed 100% of wave 1. • Wave 3 cannot be the shortest wave. • Wave 4 will NEVER go into wave 1 price territory. ❗ If you refer to chapter 4.1 on the "Alternation" theory, the guideline for waves 2 and 4 is more reliable for retracements than fib levels alone; however, wave 2 generally corrects deeply (61.8%), while wave 4 is shallow, it only reaches the 38.2%. If the daily price action candlestick signals occur, most of the time a retest and entry at the 50% level is possible.
BITSTAMP:BTCUSDEducation
by XForceGlobal
22
mastering elliot waves. whats lean cattle doing?Lean cattle, given the selection of m1 that I have chosen to focus my attention on, is showing Rule 7, condition c. This is an unfortunate selection for the lazy-hearted. Rule 7 Condition c has a lot of extensions, and given the different circumstances could be labeled with an F3, L3, L5, or sL3. I still don't know what those mean, but I can draw some conclusions based off of how the author is writing that an "Irregular Failure Flat" is linked to L5's, "Contracting Triangles" are linked to L3's, "Expanding Terminal Impulses" are linked with :sL3, and "Running Corrections" are also linked to L5's somehow. Furthermore, I don't know what those terms mean, but I am confident that I haven't drawn any false conclusions. Why doesn't this book come with flashcards? I can't label m1 all of these things. I will now choose the description that I think fits it most closely: I selected ":F3" because -- if m1 takes the same amount of time (or less) as m0 or m1 takes the same amount of time (or more) as m2, despite any other circumstances, ":F3" is a good possibility; place ":F3" at the end of m1. The other choices all needed too many things to be true for them to be the proper designation. The next closest was an ":L3" designation. I discarded this idea because m2 was supposed to be sharper than m2 and it is not. m0 was very sharp on this one. This was the contracting triangle one, which I don't know what that means exactly, but it does break out of a triangle to the casual viewer. What do you think would you place an F3 or an L3 at the end of m1? ----------- Wow, this was a ton of work to come up with a shaky conclusion. Looks like I need to read ahead a little because I have no idea how F3 fits into anything anyways. Here is the definition of (F3): This structure label is the abbreviation for "First three (3)." An ":F3" either starts a series, occurs after an "x:c3" or is found between two ":5's" (all variations). If you find two ":F3's" next to each other, a new pattern (of a smaller magnitude) begins with the second ":F3." Circle the start of both ":F3's", but do not attempt to connect the two until the second ":F3" can become part of a polywave pattern using waves which proceed it (a polywave is an Elliot pattern composed of three or more monowaves). It goes on to give a couple lists of how an F3 would fit into a sequence. An example of that would be 1. ? - F3 - c3 - L5 (circle start of F3). ...And so on. This is mostly just to say none of this really makes sense to me right now, but I have to keep trying to shape these ideas or else I won't be able to use any of this info. I don't really like this book. I have to read every passage several times to make it stick :/ ... Not nearly as enjoyable as looking for simple patterns. I was going to give more accurate take on live cattle vs feeder cattle, but now I'm kind of bummed so I'll do that another time perhaps.
CME:LEQ2021Education
by emehoke
EDUCATION - Moving Average Trading Tutorial ⚡⚡What is a Moving Average? In technical analysis, there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market. How is moving average calculated? A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis. How do you use moving average? In very simple terms: if the price is above the moving average, you can assume that the market is bullish. If price is below the moving average, you can assume that the market is bearish. The way we use the moving average is that we see it as dynamic resistance/support. Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off. Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower. Transition from bearish to bullish (vice versa) We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action. What moving average do we use? 100 and 200 moving average. Examples
Education
by Altsignals
4
EDUCATION - Moving Average Trading Tutorial ⚡⚡What is a Moving Average? In technical analysis, there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market. How is moving average calculated? A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis. How do you use moving average? In very simple terms: if the price is above the moving average, you can assume that the market is bullish. If price is below the moving average, you can assume that the market is bearish. The way we use the moving average is that we see it as dynamic resistance/support. Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off. Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower. Transition from bearish to bullish (vice versa) We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action. What moving average do we use? 100 and 200 moving average. Examples
Education
by Altsignals
24
CAD/JPY Short - 01 June 2021 | Hybrid Move Result: +3.00%Hey all, Another quick breakdown of a Hybrid setup taken this month.. The trade initiated from a Sr. Daily Zone which was created all the way back in January 2018, where price showed a beautiful trendline break and a huge crash in price. Overall the monthly time-frame was sitting at major value as well together with the weekly chart being in need of a reversal after the strong 2020 and 2021 volatility in the markets. The 4hour started to top out here after the daily showed a clearly over-extended run. When the double top formed at the 4hour chart, price confirmed the bearish bias with a clean 4hour star formation to the downside and a clean move later on. The orange candles at my chart are from our unique entry indicator developed to be optimal for our supply and demand zones. If you have any questions, feel free to comment below! Kind regards, Max Nieveld
Education
by newcapitalfx
NZD/CHF Long - 21 May 2021 | Hybrid Move Result: -1.00%Hey All, The trade initiated from a Daily Counterzone stacked with a clean area of weekly demand as well perfect in my opinion with the main idea to break the daily trend and continue the higher-timeframe bias to the upside. Overall the setup was pretty complex due to the Counterzone analysis, yet clear enough to find and edge. The 4hour strategy was executed after price formed a clean star formation and exploded to the upside after some more deceleration. The 4hour started to create a small double bottom formation with our automatic Hybrid Strategy entry when the 4hour star closed. At the daily time-frame prices reached the downward sloping trendline formation which was never broken to the upside, instead price moved towards the downside creating a deeper daily lower low and continue the trend. Good trade, good edge.
Education
by newcapitalfx
mastering elliot waves. positive progress. not much else.mostly just mustering the energy to label additional waves beyond m0,m1, and m2. Feel like I have had one or both feet in the grave this past week. Ok, enough with the relaxing thoughts. I was going to say that this wave falls under rule 1 condition a... but I was trying to do this from memory, and I'm not that confident in what the logical extensions of rule 1 condition a are. I think I'm supposed to label m1 with ":5", but I don't know what that label means besides it's part of an impulse pattern, and I'm not sure which pivot of m1 that ":5" goes on. I can see that it's an impulse without doing a lot of measuring, so I'm kind of getting impatient to understand what all the measuring is about. I can say that I'm further along today than yesterday, and I'm going to have to learn to be ok with that at least until I get some energy back. I'm feeling like typing on my computer adds 0 value to my life, and debatably subtracts from it.
NYSE:CEducation
by emehoke
Continuation Chart Patterns - Falling WedgeHello guys, this is an additional Tutorial idea following the previous one. You can also use this trick to read your chart if you want to make sure if it's bullish or not. It's called a Falling Wedge. What is a Falling Wedge? When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making. "The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When this pattern is found in a downward trend, it is considered a reversal pattern, as the contraction of the range indicates the downtrend is losing steam. When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making." Now let's talk... Have you used this patterns? What are your experiences? Any tricks you got in mind so that we can improve reading charts based on it? Comment below!
Education
by ShawnMCR
5
Top 10 Patterns (Wolfe Wave) #7Wolfe Waves:Example of a bullish Wolfe wave on 15 mn GbpChf chart. Can be both bearish or bullish and on any time frames. The key to recognizing the setup is symmetry. Ideally, waves 1-3-5 are established with very regular timing intervals between moves. The other key ingredient is that the wave 4 should revisit the price range established by waves 1-2 for the best results. Another way to describe the pattern is that it comes as a rising wedge / channel in an uptrend, or falling wedge / channel in a downtrend. Wave 5 is often a false breakout move beyond the bounds of the pattern. Unlike either bull or bear flags, the movement is in the same direction as the overall trend, with the overlapping waves giving signals that an impending reversal is taking shape. This pattern has different names, depending on the source - Larry Pesavento describes the pattern as "3 pushes to a top/bottom" and uses Fibonacci relationships to confirm the setup (waves 3 and 5 are 127% or 162% extensions of the previous pullback.) Jeff Cooper uses "Cooper 1-2-3 swing" nomenclature, and Linda Raschke likes to call this setup "3 indians". The unique quality about Wolfe waves, however, is the objective target projection from waves 1 -> 4. Despite the great explanation and examples provided on Bill Wolfe's site, I continue to get questions about how much I trust this setup. Very much so.
Education
by Anbat
BTC Wyckoff Accumulation Accumulation: Wyckoff Events school.stockcharts.com PS—preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR—automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Note: Springs or shakeout usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements: Accumulation Schematic 1 depicts a spring, while Accumulation Schematic 2 shows a TR without a spring. Test— Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. SOS—sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. LPS—last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU—“back-up” . This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. Accumulation: Wyckoff Phases Phase A: Phase A marks the stopping of the prior downtrend. Up to this point, supply has been dominant. The approaching diminution of supply is evidenced in preliminary support (PS) and a selling climax (SC). These events are often very obvious on bar charts, where widening spread and heavy volume depict the transfer of huge numbers of shares from the public to large professional interests. Once these intense selling pressures have been relieved, an automatic rally (AR), consisting of both institutional demand for shares as well as short-covering, typically ensues. A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume, generally stopping at or above the same price level as the SC. If the ST goes lower than that of the SC, one can anticipate either new lows or prolonged consolidation. The lows of the SC and the ST and the high of the AR set the boundaries of the TR. Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above. Sometimes the downtrend may end less dramatically, without climactic price and volume action. In general, however, it is preferable to see the PS, SC, AR and ST, as these provide not only a more distinct charting landscape but a clear indication that large operators have definitively initiated accumulation. In a re-accumulation TR (which occurs during a longer-term uptrend), the points representing PS, SC and ST are not evident in Phase A. Rather, in such cases, Phase A resembles that more typically seen in distribution (see below). Phases B-E generally have a shorter duration and smaller amplitude than, but are ultimately similar to, those in the primary accumulation base. Phase B: In Wyckoffian analysis, Phase B serves the function of “building a cause” for a new uptrend (see Wyckoff Law #2 – “Cause and Effect”). In Phase B, institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup. The process of institutional accumulation may take a long time (sometimes a year or more) and involves purchasing shares at lower prices and checking advances in price with short sales. There are usually multiple STs during Phase B, as well as upthrust-type actions at the upper end of the TR. Overall, the large interests are net buyers of shares as the TR evolves, with the goal of acquiring as much of the remaining floating supply as possible. Institutional buying and selling imparts the characteristic up-and-down price action of the trading range. Early on in Phase B, the price swings tend to be wide and accompanied by high volume. As the professionals absorb the supply, however, the volume on downswings within the TR tends to diminish. When it appears that supply is likely to have been exhausted, the stock is ready for Phase C. Phase C: It is in Phase C that the stock price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked up. As noted above, a spring is a price move below the support level of the TR (established in Phases A and B) that quickly reverses and moves back into the TR. It is an example of a bear trap because the drop below support appears to signal resumption of the downtrend. In reality, though, this marks the beginning of a new uptrend, trapping the late sellers (bears). In Wyckoff's method, a successful test of supply represented by a spring (or a shakeout) provides a high-probability trading opportunity. A low-volume spring (or a low-volume test of a shakeout) indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position. The appearance of a SOS shortly after a spring or shakeout validates the analysis. As noted in Accumulation Schematic #2, however, the testing of supply can occur higher up in the TR without a spring or shakeout; when this occurs, the identification of Phase C can be challenging. Phase D: If we are correct in our analysis, what should follow is the consistent dominance of demand over supply. This is evidenced by a pattern of advances (SOSs) on widening price spreads and increasing volume, as well as reactions (LPSs) on smaller spreads and diminished volumes. During Phase D, the price will move at least to the top of the TR. LPSs in this phase are generally excellent places to initiate or add to profitable long positions. Phase E: In Phase E, the stock leaves the TR, demand is in full control and the markup is obvious to everyone. Setbacks, such as shakeouts and more typical reactions, are usually short-lived. New, higher-level TRs comprising both profit-taking and acquisition of additional shares (“re-accumulation”) by large operators can occur at any point in Phase E. These TRs are sometimes called “stepping stones” on the way to even higher price targets. source:https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
BITFINEX:BTCUSDEducation
by SALEHvert
Assigning Elliott Wave DegreesDid you know that you're able to change the labeling of the degree of a wave when drawing Elliott Waves? Elliott Wave Degree labels assist in the identification of the fractal patterns of Elliott Waves. These degrees are used for both motive and corrective waves (though only motive waves are labeled here). Each of the degrees have a standardized notation that indicates the degree of the wave, allowing the user to identify them more easily. While the different degrees of waves can be applied however someone would like on a chart, the order and length of time for degrees that are most often used from largest to smallest are: Grand supercycle: multi-century Supercycle: multi-decade Cycle: one to multiple years Primary: months to years Intermediate: weeks to months Minor: weeks Minute: days Minuette: hours Subminuette: minutes **Times associated with degrees are approximate** There are six more degrees that are used less often due to the extremely high and low time frames, they are: Supermillennium, Millennium, Submillenium, Micro, Submicro and Miniscule. In order to change the degree of the Elliott Wave, simply Double-click on the drawn wave, or select it and click the settings gear in the toolbar Go to Style Select desired degree from the dropdown Thats it! How often do you use Elliott Waves in your analysis?
BITSTAMP:ETHUSDEducation
by TradingView
95
ESSENTIAL FOREX TRADING CONCEPTS YOU SHOULD KNOWI want to start by talking about something that I frequently see when trading and “how-to” trade is being discussed. The concept of trading having to be simplistic and not too complex, that the simpler your trading is, the better. Having a simplistic approach to trading is not realistic; you must balance trading between simplicity and complexity. There’s a reason why 90-95% of “trying-to-be-traders” never become or will be consistently profitable. Think of it in terms of having data; if you have limited data, your system or edge won’t be effective. Most likely, it will be random. But having too much data and information can be overwhelming and too confusing to do anything with it. So the question becomes, how do you balance your trading approach between simplicity and complexity? We do this by understanding that trading falls into three categories. And by knowing the components and elements of each category, we can define the way we trade so that our decision-making and observations are guided by objectivity. Basically, a well-formed trading setup consists of these three elements. ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- SMASH that follow button! 👍 💡 Leave a comment and/or message me on how I can improve and provide better content, I'm open to suggestions to create a better experience for you! RISK DISCLAIMER: Please be advised that I am not telling anyone how to spend or invest their money. Take all of my videos as my own opinion, as entertainment, and at your own risk. I assume no responsibility or liability for any errors or omissions in the content of this channel. This content is for educational purposes only and is not tax, legal, financial, or professional advice. Any action you take on the information in this video is strictly at your own risk. We, therefore, recommend that you contact a personal financial advisor before carrying out specific transactions and investments. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Inotfancy.com and all individuals affiliated with this channel assume no responsibility for your trading and investment results.
FX:NGASEducation
by INotFancy