What is the Breakout? Breakout is a price moving outside a defined resistance level with increased buying volume. The breakout traders enter the long positions after the price breaks the resistance level. What is the Breakdown? Breakdown is a price moving outside a defined support level with increased selling volume. The breakdown traders enter the short...
In trading, support and resistance are key concepts that help traders analyze price movements and make informed decisions. Here's a basic explanation: Support: Definition: Support is a price level at which a financial instrument (like a stock, currency pair, or commodity) tends to stop falling and may even bounce back up due to buyers. Analogy: Think of support...
Hello Traders, and welcome to a new year of endless learning opportunities! Today, we will kick off 2024 by exploring the concept of support and resistance, how to identify these levels and common misconceptions about them. Support and resistance levels play a crucial role in technical analysis and can greatly impact your trading strategy. Understanding these...
I'm going to explain Wyckoff to you in a simplified manner and show you how you can use it for entries & exits. What is Wyckoff? Large market orders by huge entities come in gradually. If the market only consisted of buying and selling, it would be too easy to make money as it would be too predictable. So instead, orders are injected into the market via an...
We can learn a very interesting lesson by looking at the SPY chart. Anyone who tries to guess the next top or bottom is a gambler, not a trader, and as someone who has gambled a lot in the past, this rally brings back some memories. It's very easy for someone to see such an explosive movement and think: "It's already gone up a lot, it's going to have to come down...
Hey traders, In this post, we will discuss two efficient ways to apply the moving average(s) indicator in your trading. Please, note that the settings for a moving average depend on many factors and can not be universal. Time frame, your style of trading and many other factors should be taken into consideration when you define the settings. 1️⃣The first very...
Imagine support and resistance zones as floors on which lemmings walk. When a lemming enters a different floor, it usually walks around that floor for a while before deciding to go up or down to another floor. What would happen in your trading if you started to perceive the price as such lemmings walking between the floors of a building?
In the today's article, we will discuss how smart money manipulate the market with a bullish trap. In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand on an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions...
Hey traders, In this post, I will share with you my strategy to apply a trailing stop. Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are...
Hey traders, In this post, we will discuss 3 very important market situations that every trader must be able to recognize: breakout, retest, and fakeout. ❗️ Please, note that the essential element of all these terms is structure: vertical and horizontal key levels. 📍 Breakout is a situation when the market breaks the identified horizontal support or...
Have you ever considered using the Ichimoku Cloud, a powerful and versatile technical analysis tool that goes beyond traditional chart analysis? 💜 If you appreciate our guides, support us with boost button 💜 Discover the Ichimoku Cloud, technical analysis tool developed by Japanese journalist Goichi Hosoda in the late 1960s. This method visually represents...
Hey traders, In this article, we will discuss a very common pattern that is called gap. In technical analysis, the gap is the difference between the closing price of the previous candlestick and the opening price of the next candlestick. 📈Gap up represents a situation when the price bounces up sharply at the moment of a transition from one candlestick to...
Having an Eagle Eye from above on the sector gives us an overall perspective how the group of companies with similar business might perform. Having seen the performance or out performance of the sector we can than fine tune our direction towards one or two top companies of that particular sector or the companies that look best on charts in that particular sector...
In the today's post, we will discuss the essential element of price action trading - a pullback. There are two types of a price action leg of a move: impulse leg and pullback. Impulse leg is a strong bullish/bearish movement that determines the market sentiment and trend. While a pullback is the movement WITHIN the impulse. The impulse leg has...
What Are Initial Balances? Initial balances refer to a specific time frame at the beginning of a trading session, typically the first few minutes or hours when a market opens. During this period, traders closely observe price movements and volume to gauge market sentiment and establish trading strategies for the rest of the session. How Initial Balance Trading...
Hello traders, This is the complete breakdown of my favourite ICT Day Trading Model. This is so easy to replicate on any two time frames. One must be higher, while the second one which is for entry should be lower. The higher time frame is for market direction, orderflow, trend. Identify your discount and premium levels on higher time frame. above 50% of your...
In the video I talk through the two trades namely trading continuation with Trend and then trading Countertrend Reversals. Both have their own price action points but are very different. I review a continuation trade and the setups I look for when trading from level to level...but the main focus on the video is trading Reversals which can be very rewarding but...
Here are the entry conditions in detail: Before getting in a trade, find your trend confirmation signals. They let you know which direction the market is moving in. Trend confirmation signals (for a buy): - 2 candle lows above the cloud (shows that the trend has changed) - Lagging line above the cloud - Price/Lagging line has to be above the trendline Trend...