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Support and Resistance

How to Find Key Levels on Gold XAUUSD Chart Easily In this short article, you will learn how to find powerful levels on a gold chart. I will explain to you what is a key level, how to apply it in trading. We will discuss key levels and different time frames, valid and invalid key levels. I will share with you a lot of useful trading tips. First, let's start with a definition of a key level. Key level is a single important historic price level on the chart, from where a significant price movement initiated. Usually, key levels are based on the edges of candlestick wicks. Look at Gold chart on a 4H time frame. I underlined a key level. You can see how strong was a bullish reaction to that. The price tested that level, bounced up and formed a long wick. Key levels that are above current prices will be called resistances . We will assume that sellers are placing their selling orders there. Above is the example of a key resistance on Gold on an hourly time frame. The price tested 2479 level, dropped rapidly and formed a long wick. From a key resistance level, a bearish movement is expected. Key levels that are below current prices will be called supports. We will assume that buyers are placing their buying orders there. That is the example of a key support level on Gold chart on a daily. From a key support level a bullish movement is expected. Key levels that are lying close to each other will compose support and resistance clusters. Look at 2 key support levels on Gold on a 4H time frame. These 2 levels are lying very close to each other and compose a support cluster. 3 key resistance above will compose a resistance cluster on Gold on a daily time frame, because these levels lye close to each other. With time, the market tends to break key levels. If the price violated a key support level and closes below that, it turns into a resistance level. Look at a breakout of key support on an hourly time frame on Gold chart. After a candle close below that, the broken key level turned into resistance. If the price violates a key resistance level and closes above that, it turns into a support level. Above is a recently broken horizontal resistance on Gold on a 4H time frame. After a breakout, that key level turned into support. Key levels tend to lose their significance with time. Key level that is broken by the buyers and the sellers or vice versa loses the status of a key level. The underlined level was a significant resistance in the past. However, the market stopped respecting this level and it lost its importance. Remember that you can find key levels on any time frame. But key levels are not equal in their significance. Key levels that are spotted on higher time frame will be stronger than key levels that are spotted on lower time frames. On the chart on the left, I underlined key support and resistance levels on a daily time frame on Gold. While on the right, I market key support and resistance levels on a 4H time frame. Daily structures will be considered to be more significant structures. Hence, the market reaction to such structures tend to be stronger. In comparison to support and resistance areas, key levels provide the safest points to look for a trading opportunity from. Once you spotted a confirmation after a test of a key level, simply set your stop loss below a support or above a resistance. You will have a very good reward to risk ratio. Key levels play a crucial role in technical analysis of Gold. No matter whether you are day trader, scalper, swing trader or investor, key levels is the first thing that you should always start your analysis from. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
Gold Trading- How to Avoid false breaks- 3 simple tipsIf you’ve been trading long enough, you know the rush of seeing a big bullish breakout. Those massive green candles make it tempting to jump in immediately, fearing you might miss the move. But if you’ve experienced a few of these moves reversing sharply, you also know the sting of buying at the top. False breakouts—when price appears to break out but quickly reverses—can be frustrating. You can’t avoid them entirely, but using a few smart strategies can help reduce the risk of getting caught on the wrong side of a trade. Let’s dive into key strategies for breakout trading, including buying dips in an uptrend and selling rallies in a downtrend. 1. Don’t “Chase” the Markets When the market suddenly surges higher with multiple big bullish candles, the temptation to enter is strong. This move can make it feel like you’ll miss out if you don’t buy immediately. But in most cases, strong moves like this mean the market is likely due for a pullback. In an uptrend, these fast, high candles can often reverse or slow down, leaving those who bought at the high with losses. Pro Tip: If you spot three or more large bullish candles in a row, it’s usually too late to enter. Waiting for a pullback (which we’ll discuss soon) is often the safer approach. 2. Trade with the Trend: Buy Dips in an Uptrend and Sell Rallies in a Downtrend One of the most effective strategies for avoiding false breakouts is trading with the trend. Here’s the basic principle: In an Uptrend: Buy dips. When the market is trending upward, buying during short-term pullbacks is often a better strategy than buying during strong rallies. This approach allows you to get in at a lower price, reducing the risk of buying at the high. Example: Suppose the market is moving steadily upward but experiences brief pullbacks to a support level. This is an ideal opportunity to buy, as it aligns with the trend's direction without chasing after a breakout that could reverse. In a Downtrend: Sell rallies. During a downtrend, the market will often move lower, but with periodic upswings. These rallies are temporary and typically followed by further downward moves. Selling during these rallies can help you align with the downtrend while avoiding the risk of a sudden reversal. This buy-dip, sell-rally strategy aligns your trades with the overall market direction, minimizing the chances of getting caught in short-lived breakouts. 3. Look for a Buildup Before Entering a Breakout Trade One key strategy to avoid false breakouts is waiting for a buildup near a key resistance or support level. A buildup is a tight consolidation (or a “squeeze”) pattern that suggests the market is coiling up energy to make a sustained move in one direction. Here’s how it helps: Buildup at Resistance: If an uptrend is approaching a resistance level, a buildup (narrow price range) near that level often indicates strong buying pressure. It suggests that sellers are struggling to push prices lower, increasing the likelihood of a successful breakout above resistance. Stop Loss Placement: If the price breaks out from a buildup, you can use the low of the buildup as a stop-loss point. This gives you a more favorable risk-to-reward ratio because if the breakout is genuine, it’s unlikely to fall below the buildup low. Pro Tip: Patience is key. Wait for the buildup pattern to appear near resistance in an uptrend or support in a downtrend before taking a breakout trade. This approach is particularly useful when combined with buying dips in an uptrend or selling rallies in a downtrend. Very recent example (yesterday): Summary: Strategies for Breakout Trading and Trend Alignment To avoid getting caught in false breakouts, follow these steps: - Don’t chase big moves after three or more bullish or bearish candles. - Align with the trend by buying dips in uptrends and selling rallies in downtrends. - Use buildup patterns to time your entries, placing stop losses below the buildup for better risk management. By focusing on trend alignment, buildup patterns, and avoiding the urge to chase, you’ll find yourself in stronger positions and with greater control over your risk in the market. These strategies can help you catch trend-following breakouts without falling prey to the frequent traps that catch traders off guard.
FX:XAUUSDEducation
by Mihai_Iacob
MATH - This is how you REALLY use Elliott WaveThis is a great example of a beautiful setup and how to lay out a low risk, high reward trade, especially for those that are still learning and wondering how to apply Elliott Wave. Or maybe you are unfamiliar with Elliott Wave or someone who thinks it's nonsense. Well let me show you how I do it and hopefully help you learn the best technical strategy. These are the setups I salivate on. And I don't care if I lose 8 out of 10, because the 2 that hit will more than pay off the losers. Support box is clear. Below the September low and I'd be out as we'd be below the reliable 61.8% retracement. Breaking that fib retracement level means that it can do anything from bullish, to diagonal, to sideways, to bearish moves. And we don't want to waste our time with stocks that aren't trending. Nothing is reliable anymore - therefore, we don't want to trade it below that. Toss it away. Move on to the next one. For this play, you could accumulate shares under $2.25 which is the previous high. I have it labeled as a Wave (1) but it could easily just be an (A) wave. As a quick refresher, trending impulsive moves happen in 5-wave moves. Since we don't know for 100% certainty that this will become that, we have to prepare for the other likely scenarios. We are already protected from significant downside with our stop below the 61.8% retracement, so I just don't care what might happen in a bearish count. So for bullish, I want to accumulate under the last high and catch the breakout. Once broken out, minimum target is $4.25. That's the 100% extension of (1) from the bottom of (2), the first resistance. If this ends up being a 3-wave (A)(B)(C), it would top out there at the 100%, so we want to make sure we have all of our money back by then. A full bullish follow through could take it anywhere between $12 (161.8% fib) and $22.50 (200% fib, which is where a standard impulsive 5-wave rally is expected to end with no extensions). If you buy a stock like this with stop below the 61.8%, you can go net free (return of original equity) by selling however many shares are needed to get your original money back at the previous high around $2.25 which should reject at first try (as it is the most likely landing spot for Wave 1 inside of Wave (3). Once a higher low forms from there (Wave 2 of (3)) between $1.20 and $1.75, you could go in even harder, buying more shares, and moving your stop on all shares to that higher low, providing a very low risk scenario. By the time $4.25 is hit, you should be completely net free with plenty of shares left and maybe even take some good profits. Remember, this is an outline NOT A PREDICTION. That's why we have a stop, a plan, and multiple targets. As it plays out, we gain more clarity and update our outline. Probably even find a trend channel. This is Elliott Wave. This is Fibonacci Pinball (the creation of Avi Gilburt at elliottwavetrader,net). It's not telling you what's going to happen. It's telling you what could happen, laying out the most probable path, limiting your risk, and telling you when it might be wrong and how to pivot. And don't go thinking this will happen all at once. Keep good notes of your entry and all sales. This likely takes 1-3 years. Standard disclosures: 1. This is 100% my idea. It was not sourced from any other avenue. 2. I am not invested in this company, though I am likely buying shares soon. 3. I am not paid to post content nor do I receive any contributions of any kind. 4. While this is outlining a potential profitable setup, this article is not investment advice. You should do your own due diligence on any company you invest in and apply your own trading strategies. 5. I know nothing about the fundamentals of this company. I suggest doing your due diligence if fundamentals are important to you. 6. Readers should always remember that markets are their own creature made up of millions of individuals and institutions each following some combo of inherent bullishness, inherent bearishness, fundamentals, technicals, stupidity, and pure emotion. Elliott Wave, and specifically Fibonacci Pinball (developed by Avi Gilburt at elliottwavetrader.net and prominent Seeking Alpha author), merely provide a framework based on the observed price action to date. 7. I know that while my wave outline is based on years and years of data and application from not only me, but some of the best in the game, I also know that markets do not follow a set path and that sentiment can remain irrational far longer than I can remain rational. That is why you MUST consider the alternatives and manage risk appropriately. Know the pivot zones that could lead to the primary path failing. I warrant that the information created and published by me on TradingView is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors. My analysis is not a recommendation for a specific trade. My analysis outlines a potential scenario and provides risk assessments for multiple alternate scenarios. My analysis is purely educational.
NASDAQ:MATHEducation
by mazag08
How my chart look, using (S)&(R) with OrbFib. Open~Close.When Market open: 1) wait 5min close to draw Orb Fibonacci(0%,0.5%1.0%,1.5%,2%) wait 15min to close to draw Orb Fib. 2) Keep looks for (S) anf (R) to draw after 5min&15min candles close. 3)use (Support)&(Resistance) from your "drawing" and (Support)&(Resistance) from "Orb Fib" levels to CALCULATE your Risk to decide where is to enter trade. Sniping tips: Entry signal look for (S) or (R) pullback rejection by bouncing the level of (S)/(R), Reason is bc it show solid respect to that specific (S) or (R).ITo me it's an area that Price is not ready to break over/under yet. That will allow you time use that current new (S)/(R) rejection entry to aim that prev (S)/(R)! and Possibly break out of that too, just make sure you are following the bigger picture trend!
AMEX:SPYEducation
by FIBivanSPY
Pulse of an Asset via Fibonacci: NDX at ATH Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology: (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related. .
NASDAQ:NDXEducation
by EuroMotif
Mastering Range Trading for Higher ProfitsRange trading is a strategy focused on capturing price movements within a defined range, marked by consistent oscillation between two levels—support and resistance. In this approach, support is the level where buyers prevent further declines, while resistance is the level where sellers cap price increases. Range traders aim to profit from buying at support and selling at resistance, capitalizing on predictable price swings. While range trading is effective during periods of sideways movement, it has its limitations, particularly when the market becomes volatile or when a trend emerges. By integrating range trading with trend-following and breakout strategies, traders can better adapt to changing market conditions. This blended approach allows traders to capture profits in both consolidating and trending markets, maximizing trading opportunities. Understanding Range Trading Range trading focuses on identifying a price range where an asset consistently fluctuates between established support and resistance levels. Traders use this predictable pattern to generate profits by entering long positions at support and selling at resistance. Technical indicators, such as oscillators and volume analysis, help confirm entry and exit points within the range. The primary goal is to capitalize on repetitive price movements, with no expectation of a breakout or major trend shift. Example of Range pattern in S&P500 Key Advantages of Range Trading -Consistent Trading Opportunities: Ideal for non-trending markets, offering regular chances to profit from predictable price movements. -Lower Risk: Relies on established support and resistance levels, minimizing the risk of sudden price swings. -Simplicity: Easy to understand and implement, making it suitable for traders of all levels. Limitations of Range Trading -Vulnerability to Breakouts: Prone to significant losses if a breakout occurs and the price moves beyond the defined range. -Smaller Profit Margins: Focuses on short-term price moves, resulting in lower profits compared to trend-following strategies. -Market Dependency: Effective only in non-trending conditions; becomes less reliable during strong trends. Combining Range Trading with Trend-Following Trend-following strategies focus on riding sustained price movements in one direction. By entering positions in the direction of the trend, traders aim to capture larger gains as the trend progresses. The integration of range trading and trend-following can create a more adaptive trading plan, allowing traders to capitalize on both sideways and trending markets. Example Range Trading on EUR/USD Following the trend - SMA 50 How to Blend Range Trading and Trend-Following -Transition Points: During consolidation phases, range trading can be used to capture smaller price movements. When a breakout occurs, traders can shift to trend-following to capture larger price swings. Indicators for Blending Strategies: Use the Relative Strength Index (RSI) to identify overbought and oversold conditions within a range. Practical Implementation: For example, when a currency pair is range-bound, traders can buy at support and sell at resistance using range trading. If a breakout follows, they can switch to a trend-following strategy by placing trades in the direction of the breakout. Integrating Breakout Trading with Range Trading Breakout trading aims to capture significant price movements when the market breaks beyond support or resistance levels. When combined with range trading, it can maximize trading opportunities, especially during high volatility periods. Breakout example Range Trading EUR/USD How to Integrate Breakout Trading with Range Trading Spotting Breakout Setups: Use range analysis to identify potential breakout points, as repeated tests of support or resistance often signal an impending breakout. Managing Risk: Set Stop Loss orders just below/above the breakout level to protect against false breakouts. Use position sizing to manage risk according to your risk tolerance. Maximizing Profits: Use trailing stops to lock in profits as the market continues to move in the breakout direction. Key Technical Indicators for Blending Strategies Moving Averages (MA): Identify trends and confirm breakouts. -Relative Strength Index (RSI): Help identify momentum and reversals, suitable for both range trading and trend-following. Example of RSI Use on Range Trading Choosing the Right Trading Platform To effectively blend range trading, trend-following, and breakout strategies, it’s essential to use the right trading platform. TradingView: Known for its intuitive interface and wide range of indicators, ideal for technical analysis. Backtesting Tools: Use backtesting features ( from Tradingview ) to evaluate the performance of your integrated strategy against historical data. In Conclusion combining range trading with trend-following and breakout strategies can significantly enhance your trading performance. This comprehensive approach allows you to capitalize on consolidation phases, trend shifts, and breakout opportunities. By adapting to different market environments, traders can achieve more consistent and profitable results. ✅ Please share your thoughts about this article in the comments section below and HIT LIKE if you appreciate my post. 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Education
by FOREXN1
1
Learn Best Time Frames For Scalping Any Forex Pair I am trading forex with top-down analysis for many years. In this article, I will teach you powerful combinations of multiple time frames for scalping any currency pair. For scalping financial markets with multiple time frame analysis, I recommend applying 3 time frames: 4H, 15 minutes and 5 minutes time frames. 4H time frame will be applied for trend and structure analysis. On a 4H time frame, you should identify the direction of the market and significant supports and resistance. Key supports in a bullish trend will be applied for buying the market. While key resistances will be applied for counter trend trading. Above is USDJPY chart, 4H time frame. The trend is bullish and I have underlined important historical structures. Key resistances in a bearish trend will be applied for selling the market. While key supports will be applied for counter trend trading. Look at a structure and trend analysis on EURUSD on a 4H time frame. 15 minutes and 5 minutes time frames will be applied for confirmation, entry signal and trade execution. The logic is that once you identified key levels on a 4H time frame, you are patiently waiting for the test of one of these structures. Once one of the key levels is tested, you start analyzing 15 minutes and 5 minutes time frame and look for a signal there. What should be the signal? It can be a specific candlestick pattern, price action pattern, some signal from a technical indicator or some other stuff. Personally, I look for a price action pattern. I am looking for a bearish price action pattern on a 4H resistance and a bullish price action pattern on a 4H support. Look at GBPUSD. The pair is trading in a bearish trend on a 4H time frame, and it tests a key horizontal resistance. On 15 minutes time frame, we see a strong bearish price action signal. Head and shoulders pattern formation and a bearish breakout of its horizontal neckline. That will be our strong scalping short signal. If you sell the market in a bearish trend on a 4H from a key resistance, you can anticipate a bearish movement to the closest 4H support. Look how nicely GBPUSD dropped after a strong bearish confirmation of 15 minutes time frame. In that case, we did not apply 5 minutes time frame in our analysis, keep reading and I will explain when we apply 5 minutes time frame for scalping. Above is USDCAD. On a 4H time frame, I executed trend and structure analysis. We see a test of a key support in a bullish trend. At the same time, no pattern is formed on 15 minutes time frame after a test of structure. In such a situation, analyze 5 minutes time frame. If there is no pattern on 15m, probabilities will be high that the pattern will appear on 5m. On 5 minutes time frame, the pair formed the ascending triangle formation. A bullish breakout of its neckline is a strong bullish signal and confirmation for us to buy. If you buy the market in a bullish trend on a 4H from a key support, you can anticipate a bullish movement to the closest 4H resistance. You can see that after our confirmed bullish signal, the price went up to Resistance 1. Both trading opportunities that we discussed are trend following ones. Remember that the trades that are taken against the trend are riskier and have lower accuracy. For that reason, if you are a newbie trader, strictly trade with the trend! Good luck in scalping with multiple time frame analysis! ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
US dollar rally faces hurdle as rates unwind stalls at key levelWhether it reflects US economic exceptionalism reducing the need for large-scale rate cuts from the Federal Reserve or improved prospects for Donald Trump winning the US Presidential election, or a combination of both, it’s obvious the US interest rate outlook is dictating direction across FX markets. Higher US yields are sucking capital from other parts of the world, helping to fuel US dollar strength. With short-dated Treasury futures teetering above a key technical level, what happens next could be highly influential in determining the path for currencies and global borrowing costs as we move towards year-end.
TVC:DXYEducation
by FOREXcom
2
Uptrend or Fadeout? Learn the Key to Catching Market Breakouts1. Recognizing Market Structures: Uptrends and Downtrends Higher Highs (HH) and Higher Lows (HL): These are signs the market is in an uptrend—prices keep moving up, forming new highs (peaks) and lows (dips) that are higher than the previous ones. Think of it like climbing stairs: each step higher shows the market’s strength. Lower Highs (LH) and Lower Lows (LL): When prices stop climbing and start forming lower peaks and lower dips, it signals that the market might be slowing down or reversing into a downtrend. In the chart: The first part shows a bullish (upward) move with Higher Highs and Higher Lows. Later, the market shifts to lower highs, signaling a potential slowdown or shift toward a downward move. 2. What Is the LQZ (Liquidity Zone)? Liquidity Zone (LQZ): This is a key price area where a lot of trading activity happens—like a hotspot where buyers and sellers clash. When price reaches such a zone, it either breaks through and keeps moving in that direction (bullish continuation) or bounces back down (rejection). Think of it like a soccer goal line: if the ball crosses the line, the team scores a goal (bullish move); if it’s blocked, the ball goes the other way (bearish move). In the chart: The LQZ is highlighted as the key level to watch. A clean breakout (with more than just a quick spike or wick) signals that buyers are strong enough to push the market higher. If the price gets rejected at this zone, the sellers regain control, and the market might move down. 3. Scenarios: What Happens Next? The chart offers two possible outcomes based on how price behaves near the LQZ. Bullish Scenario: If the price breaks above the LQZ and stays there, it’s likely to continue upward towards: Target 1: 2,661.38 Target 2: 2,673.60 These are the next levels where buyers might take profits or where new sellers could appear. Bearish Scenario: If the price gets rejected at the LQZ and drops lower, it could move towards: Bearish Target 1: 2,569.49 Bearish Target 2: 2,546.25 This suggests the sellers have taken control, pushing the market down. 4. How to Know When to Enter a Trade? The chart highlights the importance of waiting for confirmation before jumping into a trade. Here’s a simple trade plan: For a Buy (Long) Trade: Wait until the price breaks above the LQZ and stays above it. Enter on the first pullback (dip) after the breakout—this is often called a flag or retest. For a Sell (Short) Trade: If the price gets rejected at the LQZ, wait for a clear downward movement. Enter after the first lower high forms, confirming that the sellers are in control. Why wait for confirmation? Jumping in too early might cause you to get caught in a false breakout or fake move. Think of it like waiting to see which team scores first before betting on the game. 5. Avoid Emotional Trading and Manage Risk This chart reflects a key lesson: trading is a game of patience and probabilities. If the trade doesn't go as expected, it’s important to step back and wait for the next opportunity. Don’t chase trades just because you fear missing out (FOMO). You might enter too soon and hit your stop loss unnecessarily. Risk Management Tip: Use stop losses to protect your account from big losses. Avoid placing multiple risky trades on the same pair just because you’re impatient. It’s better to wait for high-probability setups. 6. Summary: A Simple Trading Plan Watch the LQZ level: If the price breaks above, look to buy on the next dip. If the price gets rejected, look to sell when it starts forming lower highs. Set Clear Targets: For bullish trades, aim for Target 1 and 2 above. For bearish trades, aim for Bearish Targets 1 and 2 below. Don’t Rush: Wait for clear confirmation before entering. Follow your trading plan and avoid emotional decisions.
OANDA:XAUUSDEducation
by Adlercon333
Learn Supply and Demand Zones in Gold Trading In this article, I will teach you how to identify supply and demand zones on Gold chart easily. You will learn what are supply and demand zones and how to apply it in Gold trading. In order to identify supply and demand zones on Gold chart, the first thing that you should do is to execute a complete structure analysis. You should identify horizontal structures: support and resistance levels/zones; vertical structures - trend lines. That's how a complete support and resistance analysis should look. On a daily time frame, I have underlined all significant horizontal and vertical structures. First, let's look for demand zones. A demand zone is a specific area on a price chart that combines multiple key structure supports: horizontal or vertical ones. Buying orders of the market participants will be placed within that entire area. Our first demand zone will be based on a Horizontal Support 1 and a Vertical Support 1. A trend line and a horizontal support compose an expanding area. We will call such an area a demand zone, simply because we assume that buying volumes will accumulate within that entire zone. And lower the price will move inside that area, more buying orders will become active. Our second demand zone will be based on Horizontal Support 3/4/5. All these structures are lying very close to each other. Some supports even have common boundaries. These supports will compose a demand zone , a wide horizontal area where buying orders will be placed. Vertical Support 2 is lying very closely to our Demand Zone 2. A horizontal demand zone and a trend line will compose and expanding demand zone. Now let's discuss supply zones. A supply zone is a specific area on a price chart that combines multiple key structure resistances: horizontal or vertical ones. Selling orders of the market participants will be placed within that entire area. There is one supply zone on our Gold price chart. It will be based on a Horizontal Resistance 1 and Vertical Resistance 1. Both structures are lying very close to each other. We will assume that selling orders will be placed throughout that entire area and the higher the price moves within that, the more selling orders will become active. Remember that you can identify Supply and Demand Zones on Gold on any time frame. A bullish movement and a bullish reaction will be expected from a Demand Zone. While a bearish movement and a bearish reaction will be expected from a Supply Zone. Because Supply and Demand Zones are relatively large areas, it is very important to analyze a price action within these zones before you place a trade. Thank you for reading! ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
Understanding the Renko Bricks (Educational Article)Today we are going to study a chart which is called a Renko chart. Renko chart is a chart which is typically used to study price movement. I use Renko chart many times to determine supports and resistnace. I find it easy and accurate way of determining supports and resistances. The word Renko is derived from Japanese word renga. Renga means brick. As you can see in the chart below it shows a kind of Brick formation. The brick size is determined wither by the user and mostly it depends of typical average movement on the stock historically. A new brick is formed once the price moves upwards on downwards in the same proportion or ratio of the typical brick. New brick is only added post the price moves in that particular proportion. A new brick might not be added in months if the price movement is not as per the ratio. At the same time a new brick might be added in a day or few bricks in a week is price moves accordingly. We will try to understand this concept further by looking at the chart in the post. We have used the chart of Reliance industries to understand this concept and concept only. Please do not consider this buy or sell call for the stock. As you can see in the above chart I have used a combination of RSI, EMA (50 and 200 days) and Bollinger band strategy. RSI support for Reliance is at 35.89 with current RSI at 40.13. Bollinger band suggests that support might be round the corner for the stock. The peaks from previous tops are used to find out further supports and resistances. Mid Bollinger band level and Bollinger band top level coincide with other pervious tops making them tough resistance when the price moves upwards. Mother line EMA is a resistance now and Father line EMA support is far away. All these factors indicate the support zones for the stock to be around 2736, 2657, 2601 and 2561 in the near term. Resistance for Reliance seem to be at 2814, 2972, 3006, 3048 and 3202 levels. Let me give a disclaimer again. The above data is for analysis purpose and to understand Bollinger band, RSI, effect of EMA and Renko Bricks only. Please do not trade based on the information provided here as it is just for understanding Renko charts. Disclaimer: There is a chance of biases including confirmation bias, information bias, halo effect and anchoring bias in this write-up. Investment in stocks, derivatives and mutual funds is subject to market risk please consult your investment advisor before taking financial decisions. The data, chart or any other information provided above is for the purpose of analysis and is purely educational in nature. They are not recommendations of any kind. We will not be responsible for Profit or loss due to descision taken based on this article. The names of the stocks or index levels mentioned if any in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
NSE:RELIANCEEducation
by Happy_Candles_Investment
3 Technical Analysis Tools to Identify Resistance Levels on GOLD How to trade Gold when it is constantly setting new all-time highs? When Gold is trading beyond historical levels, technical analysis can help you to identify the next potentially strong resistance levels. In this article, I will teach you the only 3 technical analysis tools you need to find the next key resistances and predict future correctional movements on Gold chart. Tool 1 - Trend Line The first technical analysis tool that will help you to identify a potentially strong resistance is a trend line based on previous highs. Simply analyze the previous historic highs and try to find a trend line that was respected by the market at least 3 times in the past. It means that such a trend line should be based at least on 3 historic highs. Look at that rising trend line on Gold on a daily time frame. It is based on 3 historic highs, and it can be a potentially strong resistance. Tool 2 - Psychological Levels The second technical analysis tool is psychological levels. These levels are based on round, whole numbers. In our example, the closest psychological level is 2500 level. This level is based on round numbers, it is a multiple of 500 and 100. It can compose a potentially strong resistance cluster. Tool 3 - Fibonacci Levels The third technical analysis tool is Fibonacci extension and confluence. In order to identify a potentially strong resistance with Fibonacci extension, you should identify at least 3 last bullish impulses/waves. Above is the example of 3 significant impulse legs on Gold chart on a daily. Draw Fibonacci Extension levels based on these 3 impulse legs. Here are important Extension levels to consider: -1.272 -1.414 - 1.618 Above, you can see how I draw Fibonacci Extension levels based on all the impulse legs that we identified. Your task is to identify the point where the extension levels of 3 impulses match in one point. Such a point will be called confluence zone. This confluence zone will be the next potentially strong resistance. These 3 technical tools helped us to identify the resistances beyond all historical levels easily. Remember that there is no 100% guarantee that all the resistances that we spotted will be respected by the market. For that reason, you should strictly analyze a price action and a reaction of the price to these levels before you open a short trade. Alternatively, remember that these resistances can be applied as the targets for long trades. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
How To Have An Edge Over The Markets!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Today I want to share a basic trading plan that you can follow to quantify your trading edge. 📌Step 1: First, start from the higher timeframes like Daily/Weekly to identify the current long-term trend. is it bullish, bearish or stuck inside a range? If the price is sitting in the middle of nowhere, then it is a NO trade zone as price has 50% change to go either up or down. Thus no edge! 📚Wait for the price to approach the lower bound or upper bound. Then proceed to Step 2 📌Step 2: No matter how strong a horizontal / non-horizontal support or resistance is, it can still be broken. Thus don't buy/sell blindly as price approaches a support/resistance. Instead, zoom in to lower timeframes like H1 and M30 to look for setups. 🏹A basic approach would be to wait for a swing low to be broken downward around a resistance as a signal that the bears are taking over. In parallel, wait for a swing high to be broken upward around a support for the bulls to take over. This would be the confirmation to enter the trade. ⚙️Of course, your second edge would be through risk management by targeting at least double than your indented risk. But that's a topic for another post 😉 Always follow your trading plan regarding entry, risk management, and trade management. Hope you find the content of this post useful 🙏 All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
14
MARKET STRUCTURE explained (THE ULTIMATE SIMPLIFIED GUIDE)(In this guide I will attempt for explain Market Structure in the most simplified and easy to understand terms) WHAT IS MARKET STRUCTURE? Market structure is the overall framework of a market that helps traders understand price movements and trends. Think of it as the skeleton of the market, showing how prices move over time and where key levels of support and resistance are located. COMPONENTS OF MARKET STRUCTURE: TRENDS: Trends are the general direction in which the market is moving. There are three main types of trends: - UPTREND: This is when the market is moving upwards. It is characterized by a series of higher highs (HH) and higher lows (HL). Imagine a staircase going up; each step represents a higher high and a higher low. - HIGHER HIGH (HH): The highest point reached during a price movement before the price starts to fall again. - HIGHER LOW (HL): The lowest point reached during a price movement before the price starts to rise again. - DOWNTREND: This is when the market is moving downwards. It is characterized by a series of lower lows (LL) and lower highs (LH). Think of a staircase going down; each step represents a lower low and a lower high. - LOWER LOW (LL): The lowest point reached during a price movement before the price starts to rise again. -LOWER HIGH (LH): The highest point reached during a price movement before the price starts to fall again. - SIDEWAYS/RANGE-BOUND: This is when the market is moving horizontally, neither up nor down. It is characterized by equal highs (EQH) and equal lows (EQL). Picture a flat road; the price moves back and forth within a certain range. - EQUAL HIGH (EQH): The highest point reached during a price movement that is roughly the - EQUAL LOW (EQL): The lowest point reached during a price movement that is roughly the same as previous lows. SUPPORT & RESISTANCE LEVELS: - SUPPORT: A support level is a price point where the market tends to find buying interest, preventing the price from falling further. Think of it as a floor that supports the price. - RESISTANCE: A resistance level is a price point where the market tends to find selling interest, preventing the price from rising further. Think of it as a ceiling that resists the price. SWING POINTS: Swing points are the peaks and troughs that form the structure of the market. They help in identifying the trend direction. - SWING HIGH: A peak formed when the price reaches a high point and then starts to decline. - SWING LOW: A trough formed when the price reaches a low point and then starts to rise. ANALYZING MARKET STRUCTURE: IDENTIFY THE TREND: To identify the trend, look at the sequence of highs and lows on the price chart: - UPTREND: Look for a series of higher highs and higher lows. - DOWNTREND: Look for a series of lower lows and lower highs. - SIDEWAYS: Look for equal highs and equal lows. MARK KEY LEVELS: Identify and mark significant support and resistance levels on the chart. These levels are where the price has previously reversed or paused. OBSERVE PRICE ACTION: Analyze how the price reacts at these key levels. Look for patterns such as: - BREAKOUTS: When the price moves above a resistance level or below a support level. - REVERSALS: When the price changes direction after reaching a support or resistance level. - CONSOLIDATIONS: When the price moves within a narrow range, indicating indecision in the market. RISK MANAGEMENT: Always use stop-loss orders to manage risk. Place stop-loss orders: - Below support levels in an uptrend. - Above resistance levels in a downtrend. ================================================================================== This is the basics of Market Structure, explained in the most simplified manner as possible. I hope this publication was simple and easy to understand and helps you understand Market structure better. I will be doing more easy to understand publications like this within the upcoming days so stay tune... ================================================================================== HAPPY TRADING :)
NEducation
by avziofficial
Trend Based Fib Extension (PRO HACK) SUPPORT & RESISTANCE is one of the most important key elements in trading. Without knowing the key Support & Resistance levels, you will never have a true understanding of where the market could go to or reverse from. One very important factor worth knowing is the markets overall, trend Support & Resistance levels. While there are a lot of different methods in finding these levels, like pivot points, previous day high and low, or monthly or yearly and so on. One of the most promising, tried and tested ways is to use a Fibonacci Tool. Now YES, there are MANY Fibonacci Tools to choose from and use but if you need to know the fib levels for a trend, use the TREND BASED FIB EXTENSION. Along with using the TREND BASED FIB EXTENSION, you need to know the correct time frame to actually plot this tool on. There is no right or wrong time frame nor is there no right or wrong way in plotting this tool, BUT we need to know and understand the overall picture of the market as a whole and if you are thinking about the market as a whole, we need to use the correct time frame to show us that. So we turn to the 12M TIME FRAME! The 12M Time Frame is what's going to show us the OVERALL TREND of the asset we are looking at, from the start right to current time. Now keep in mind that this can work on EVERY SINGLE ASSET. We use the 12M time frame because we need to plot the trend base fib extension to show us our MAJOR FIBONACCI SUPPORT AND RESISTANCE LEVELS. These levels are for the OVERALL TREND OF THE GIVEN ASSET. By plotting it this way we actually have an idea as to where the market is going LONG TERM. So head over to whichever asset you are tracking, choose the 12M time frame and make your chart large enough to fit the screen. In order to plot this tool, you need to know your highs and lows because this tool is used from your lowest point to the first swing high and down to your next swing low, once those 3 are connected the tool will automatically plot your levels. One easy way to find your swing highs and lows is to use a ZIGZAG with a length of either 1 or 2. That setting will give you the most accurate points. In the drawing tool box you can you the TREND BASED FIB EXTENSION tool, once you select it and you know where your 3 points are then you plot it accordingly, you will start from your Lowest, to your Swing High and then down to your Swing Low. To get accurate plots, use the data window and get the exact low and high prices and enter the accordingly into the fib tool settings (coordinates tab). Adjust your settings with your style preferences, the fib levels that you want to see on your chart, and once done, lock the tool in place and BOOM, YOU NOW HAVE YOUR MAJOR ALL TIME SUPPORT AND RESISTANCE LEVELS PLOTTED ON YOUR CHART. Now you have a full understanding on the market overall trend by knowing where the major support and resistance levels are. You can go back to your lower time frame in which you trade from and now you will have a much clearer understanding as to where the market might stop or reverse from, according to the bigger picture. With that in place, you can use other methods of confluence to get entries, set stops, find direction, you can even go down to lower time frames to use a Fibonacci retracement tool or the trend based fib extension to get sniper entries and set targets. The key takeaway from this is for you to know the overall direction of the market you are trading and to know where potential areas of support and resistances are which leads to the major reversals in the market. I do hope this publication helps you in some way or another, even if it helped just 1 person out of many, I will be glad. HAPPY TRADING :) ==if you have any questions then please drop a comment, thanks==
OANDA:NAS100USDEducation
by avziofficial
What is Structure Mapping in Gold Trading XAUUSD? Structure mapping is essential for day trading, scalping and swing trading gold. It is applied for trend analysis, pattern recognition, reversal and trend-following trading. In this article, I will teach you how to execute structure mapping on Gold chart and how to apply that for making accurate predictions and forecasts. Take notes and let's get started. Let's discuss first, what is structure mapping? With structure mapping, we perceive the price chart as the set of impulse and retracement legs. Structure mapping can be executed on any time frame and on any financial market. Look at a Gold chart on a 4H time frame. What I did, I underlined significant price movements. Each point where every leg of a movement completes will have a specific name and meaning. On a gold chart, I underlined all such points. These points are very important because it determines the market trend and show the patterns. When you execute structure mapping, the first thing that you should start with the identification of a starting point - the initial point of analysis. On a price chart, such a point should be the highest high that you see or the lowest low. If you start structure mapping with a high, that high will be called Initial High. A completion point of a bearish movement from the Initial High will be called Lower Low LL. A bullish movement that completes BELOW the level of the Initial High or Any Other High will be called Lower High LH. A bullish movement that completes on the level of the Initial High or Any Other High will be called Equal High. A bullish movement that completes above the level of the Initial High or Any Other High will be called Higher High HH. If you start with the low, such point will be called Initial Low. A completion point of a bullish movement from the Initial Low will be called Higher High HH. A bearish movement that completes ABOVE the level of the Initial Low or Any Other Low will be called Higher Low HL. A bearish movement that completes on the level of the Initial Low or Any Other Low will be called Equal Low. A bearish movement that completes below the level of the Initial Low or Any Other Low will be called Lower Low LL. Look how I executed structure mapping on Gold chart. Starting with the lowest low, I underlined all significant price movements and its lows and highs. You should learn to recognize these points because it is the foundation of gold structure mapping. Combinations of these points will be applied for the identification of the market trend, trend reversal and patterns. According to the rules, 2 lower lows and a lower high between them are enough to confirm that the market is trading in a bearish trend. While 2 higher highs and a higher low between them confirm that the trend is bullish . In a bullish trend, a bullish violation of the level of the last Higher High will be called a Break of Structure BoS. That event signifies the strength of the buyers and a bullish trend continuation. A bearish violation of the level of the last Higher Low will be called Change of Character CHoCH . It will mean the violation of a current bullish trend. In a bearish trend, a bearish violation of the level of the last Lower Low will be called a Break of Structure BoS . It is an important event that signifies the strength of the sellers and a bearish trend continuation. While a bullish violation of the level of the last lower high will be called Change of Character CHoCH. That even will signify a violation of a bearish trend. That's how a complete structure mapping should look on Gold chart. With the identification of the legs of the move, highs and lows, BoS and ChoCh you can clearly understand what is happening with the market. Gold was trading in a bearish trend. Once the level of our Initial Low was tested, the market started a correctional movement and started to trade in a bullish trend. Once some important resistance was reached, the market reversed. We saw a confirmed CHoCH and the market returned to a bearish trend. Structure mapping is the foundation of technical analysis. It is the basis of various trading strategies and trading styles. It is the first thing that you should start your trading education with. I hope that my guide helped you to understand how to execute structure mapping in Gold trading. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
XAUUSD: Navigating Key LQZ 4 HIGH-PROBABILITY shortMulti-Timeframe Analysis of XAUUSD 1. 4-Hour Chart Key Structure: All-Time High (ATH) at $2,600.318: This level acts as a strong resistance. Price has rejected this zone, showing an initial failure to break higher. Corrective Channel: The price has formed a small ascending corrective channel after the ATH rejection, which often indicates a potential continuation move downwards. Key Liquidity Zones (LQZs): 4H LQZ at $2,522.172: This zone could act as the next support if the downtrend continues. Daily LQZ at $2,511.042: Deeper support that aligns with the broader timeframe. Implication: Based on the corrective channel and the rejection of ATH, a continuation down towards the 4H and Daily LQZ is likely unless a strong bullish push occurs. 2. 15-Minute Chart Bearish Momentum: The price formed a sharp drop after the ATH rejection, leading to a corrective structure forming. Ascending Channel: A bearish ascending channel (corrective) is visible, which may suggest further downside. A clean break below the lower boundary of this channel would confirm bearish continuation. 1H LQZ at $2,542.056: This zone is likely to be the first target if the breakout occurs. Implication: If the price breaks below the corrective channel, a potential short entry targeting the 1H LQZ is a strong play. A further drop to the 4H LQZ could follow if momentum continues. 3. 5-Minute Chart Current Reaction: The price is bouncing from the lower part of the small corrective structure. There is a minor bounce from the 5M LQZ at $2,562.855. Next Step: Monitor for price rejection or failure at the 5M LQZ. If it fails to sustain this level, a short opportunity arises. Implication: A break below the 5-minute structure could lead to a fast move down toward the 1H LQZ. Watch for strong rejections at this level. --- Trade Setup Suggestion: 1. Entry: Aggressive: If the price breaks the corrective channel on the 15-minute chart, you can enter short near $2,562-$2,564. Conservative: Wait for a confirmed break and retest of the lower channel boundary. 2. Stop Loss: Set above the corrective channel high, around $2,580, to protect against sudden bullish reversals. 3. Targets: First target: 1H LQZ at $2,542.056. Second target: 4H LQZ at $2,522.172. Third target: Daily LQZ at $2,511.042 if further downside persists. Conclusion: The price structure and liquidity zones indicate a bearish continuation is possible, especially if the corrective channel breaks down. Keep an eye on how price interacts with the liquidity zones to refine entries and exits.
OANDA:XAUUSDEducation
by MommaPreneur
Triple Your Trade Accuracy with This Simple Trick Like a PROGood Morning Tradingview, Apologies for the delay in my recent posts over the past two days. Unfortunately, this was due to an oversight on my part. I missed a key detail in the trading platform's rules and mistakenly included my watermark on the charts. As a result, several of my posts were removed, and I was temporarily unable to post for 24 hours. I completely understand and respect the platform's guidelines, but I wanted to keep you informed and ensure you're not left wondering about my absence. Here’s a breakdown of potential entry points and trade management based on the chart I've shared, aligned with multi-touch confirmation and The Trinity Rule. We'll focus on how to approach both the bullish and bearish scenarios with structured decision-making: 1. Bullish Scenario (Green Path): The price currently appears to be testing a weekly trendline (third touch), which often signals a potential bullish continuation after the third touch confirms a reversal or trend continuation. Here's how to structure the trade: Entry Point: Wait for a Breakout: If the price breaks and closes above the upper consolidation zone, look for a confirmed breakout with momentum. Avoid entering prematurely, as false breakouts can occur. Confirm with Retest (Higher Probability Entry): After the breakout, wait for a potential retest of the consolidation zone or the top of the ascending wedge. A retest that holds (with rejection wicks or bullish engulfing patterns) adds confirmation for a long position. Reduced Risk Entry: You can enter with a smaller position on the breakout and add to the position on the retest, increasing exposure as the price confirms your bias​​. Stop-Loss Placement: Place the stop-loss just below the consolidation zone or below the retested area. This level serves as your risk threshold, accounting for potential fakeouts. If you are entering after the third touch of the trendline, the stop-loss can be placed below this key level to minimize risk​. Take-Profit Targets: First Target: Aim for the next key resistance zone at around 2,576 based on historical price action. Second Target: If momentum is strong, hold a portion of the trade for a larger move toward 2,592 (upper resistance). Trail the stop as price continues to move upward​. 2. Bearish Scenario (Yellow Path): If the price fails to break above the current consolidation and rejects the trendline, it indicates a potential bearish reversal. The descending path might target the 1-hour liquidity zone around 2,541, where you can expect the price to react. Entry Point: Breakout of Consolidation: If the price breaks below the consolidation, this signals a bearish continuation. Enter on a confirmed breakout, with a strong bearish candle close below support. Aggressive Entry: You may consider entering on the third rejection at the top of the consolidation, especially if there's a clear bearish reversal pattern (e.g., shooting star or bearish engulfing)​​. Reduced Risk Entry: Wait for the price to break below the consolidation and enter on a retest of the broken support, confirming the bearish momentum. This provides a lower-risk entry with better confirmation​. Stop-Loss Placement: Above the consolidation or the most recent swing high where rejection occurred, giving enough room for market fluctuations. Ensure that the stop isn’t too tight, as you could get caught in price noise​. Take-Profit Targets: First Target: The 15-minute liquidity zone around 2,560 is a reasonable first target, where you may partially close your position. Final Target: The key 1-hour liquidity zone at 2,541 is the more substantial target for a full bearish continuation. Be mindful of how price reacts near this zone; you may want to take profits before a reversal happens​​. Management Tips: Scaling In and Out: Whether bullish or bearish, consider splitting your position into smaller entries. This allows you to enter part of the trade with confirmation and add more as price action continues in your favor. Use of Flags for Re-entries: After the initial breakout in either direction, look for flags or continuation patterns to re-enter the trade or add to an existing position. For example, after a bullish breakout, wait for a flag and enter on the next wave up​​. Regular Monitoring and Adjustments: As the price moves in your favor, trail your stop-loss to lock in profits. This is especially important during strong momentum moves to avoid giving back profits to the market. Psychological Considerations: Avoid FOMO: Don’t rush into trades if you're unsure about the breakout or failure of a level. Let the price action confirm your bias. Avoid Overtrading: Stick to your Rule of Three guidelines. Ensure at least three confirming factors align with your analysis before entering​.
OANDA:XAUUSDEducation
by Adlercon333
Catch Big Market Moves: How to Trade Liquidity Zones Like a Pro The charts provided showcase potential scenarios based on different liquidity zones (LQZ) on multiple timeframes, such as 15M, 1H, and 4H. Let's break down the key insights from the images: Key Levels: Weekly Flag Trendline: This yellow trendline represents the long-term trend and acts as a major resistance or support. It’s crucial to monitor price action around this level for significant moves. 4HR LQZ (Liquidity Zone) at 2,532.077: This level signifies an important area of liquidity on the 4-hour chart. It’s a potential reversal point or continuation area depending on how the price interacts with it. 1HR LQZ and 15M LQZ: These shorter timeframe liquidity zones are at 2,482.129 and 2,470.544 respectively. They act as interim targets or bounce zones based on the smaller trend movements. Price Action Context: Wedge Formation: The rising wedge pattern visible in all the charts, combined with slowing momentum near the top, suggests possible bearish pressure. Wedges often lead to sharp breakouts, so a breakout to the downside would align with the wedge structure. Multi-Touch Confirmation: The multiple touches on trendlines, both support and resistance, increase the probability of significant movements. This concept is supported by multi-touch confirmation techniques​. Scenario Planning: Upside Potential: A breakout above the 4HR LQZ suggests further bullish momentum, likely toward higher liquidity zones. This can result in a continuation to the upside, as shown with the green line projection on some charts. Downside Risks: A breakdown below the wedge support and failing to hold the 15M or 1HR LQZ may lead to a bearish move toward the lower liquidity targets. The yellow line projections suggest a pullback to 2,485.055 and potentially lower. The Trinity Rule Approach: Confluence Setup: If price interacts with three major zones (like the 4HR LQZ, wedge support, and Weekly Flag Trendline), we can assess whether these align with other signals. This rule adds extra confirmation for higher-probability setups, as discussed in your document​​. Overall, price action shows a decision point around the wedge and liquidity zones, with strong reactions expected in either direction.
OANDA:XAUUSDEducation
by Adlercon333
3