Hello guys!
Today I will tell you about ADX indicator. This instrument allows determining trend strength without any additional analysis of the graph.
The indicator has ADX line. It is a scale of 0 to 100 that illustrates the dynamic of trend strength.
Remember: ADX points only to trend strength but no to its direction.
My tips on using it:
1) A value...
See callout bubbles. This is very strange and worth looking into further. The VIX and SPY certainly *can* move in tandem with each other, but a majority of the time, as the market is UP, the VIX is DOWN. As markets rise, price is *less* volatile. As markets fall, price is *more* volatile.
Why might the VIX be moving up along with the SPY? Nobody can say for...
Cause and effect.
That's all that you really need to know.
Always ask yourself, 'which area started the move that caused a long term key level to break?'
What is this important? Because it shows a clear supply and demand imbalance at that price.
It shows that there is interest at this specific zone, at which, there is likely to be unfilled pending orders, as...
To clarify an earlier post, I thought I would explain the signs that told me to sell my coins just before the beginning of the recent fall, in the hopes that it might help someone at some point in the future if they see something similar. It also helps me to write my thoughts down.
A dramatic price rise can be seen on the chart as the popularity of...
2017 brought incredible popularity to cryptocurrencies and the market now contains a lot more people prone to 'fear of missing out' and panic selling. As a result the chances of a currency finding price stability at the end of a consolidation are slim, so as price amplitude gets narrow it tends to drop (or shoot up) and enter yet another consolidation pattern. In...
Hello Traders. Hope everyone is staying warm. Snow and zero degree temperatures expected in Virginia.
Many traders use many different indicators. There are so many its impossible to tell which ones are useful. Simplicity is key.
The most important tool in a traders toolbox is the ability to deceiver the prevailing trend. Using higher high/ lower low analysis we...
The wave is currently finalized and is working as planned:
I ended the previous post pointing at the lack of the volume required to confirm trend reversal at supposed point 5.
And in fact, for quite a while the price kept slowly drifting up and down without substantial moves in any direction.
This situation lasted until bearish volume spike on 07/11 that...
I first heard about Supply and Demand trading from @Tradewonk, his analysis using this are great!
I also ask him about it and he gave me a link to his Ideas about it
I also tried searching the internet about it and came up with this idea. @Tradewonk, can you confirm if I got the idea correct?
Note: This idea only explains Supply Zone, but this is also true for...
Another example of:
1) Drop- Base- Rally
2) Rally-Base-Drop
3) Rally-Base-Rally
4) Drop-Base-Drop
Supply and demand levels work the same in point and figure as they do in other styles of charts. Look for an area where trend reversed strongly. Your typical rally-base-drop or drop-base-rally would do just fine. You should look to buy or sell when you receive...
Price Structure
There are four common structures that are used to identify supply & demand levels on forex charts:
1) Drop- Base- Rally
2) Rally-Base-Drop
3) Rally-Base-Rally
4) Drop-Base-Drop
We now know that supply and demand are fundamental driver of price.
Now lets look it into simple context to better understand how supply exceeds demand.
Its worth considering what market cycles can tell us about when this run will end. I won't (can't) explain the logic behind cycles, but they appear in every aspect of nature, which includes human behaviour. Seasonality is a well known example.
Using the Dow Jones as a barometer, its clear that there were 7 years between the 2002 and 2009 lows. We can't...
Determining the strength of the fresh zones.
Every time the trend changes direction, it is because of a change in the balance of supply and demand, but to use this to our advantage we need to know the likelihood of that imbalance being there the next time price returns to that zone. Supply and demand zones are similar to support and resistance lines in that...
1) We have to find the strong impulse move ( At least three impulse move, I like the big bars). Lets say a rally or a drop.
2) Right underneath we have to find a consolidation area where we will mark the zones from the body to the wicks.
3) Drawing the zones is an art, so make sure you have a good look at them, Ignore the wicks at the top if you are buying and...
