Get started

Support and Resistance

How to Use Moving Averages in TradingViewMaster moving averages using TradingView's charting tools in this comprehensive tutorial from Optimus Futures. Moving averages are among the most versatile technical analysis tools available, helping traders analyze trends, identify overbought/oversold conditions, and create tradeable support and resistance levels. What You'll Learn: Understanding moving averages: lagging indicators with multiple applications Simple moving average basics: calculating price averages over set periods Key configuration choices: lookback periods, price inputs, and timeframes How to select optimal lookback periods (like 200-day) for different trading styles Using different price inputs: close, open, high, or low prices Applying moving averages across all timeframes from daily to 5-minute charts Analyzing price relative to moving averages for trend identification Using 50-day and 200-day moving averages for trend analysis on E-Mini S&P 500 Mean reversion trading: how price tends to return to moving averages Trend direction analysis using moving average slopes Famous crossover signals: "Death Cross" and "Golden Cross" explained Trading moving averages as dynamic support and resistance levels Advanced moving average types: weighted and exponential moving averages Applying moving averages to other indicators like MACD and Stochastics Balancing sensitivity vs. noise when choosing periods This tutorial may benefit futures traders, swing traders, and technical analysts who want to incorporate moving averages into their trading strategies. The concepts covered could help you identify trend direction, potential reversal points, and dynamic trading levels across multiple timeframes. Learn more about futures trading with TradingView: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting
CME_MINI:ES1!Education
by OptimusFutures
5 Elements of the Best Key Level in Forex, Gold Trading What are the best key levels to trade? This year I analyzed more than 1500 key structures on Forex, Gold, Crypto and Indexes. In the today's article, I prepared for you a list of 5 elements of a perfect support and resistance for trading. As always, remember that the best key levels are always on a daily time frame . So all the structures that we will discuss will be strictly on a daily . Also, all the structures that I analyzed and traded are available on my TradingView page, so you can back test them by your own. 1. Clear historical significance The structure that you spotted should act as a significant historical support or resistance. Here are the important historical support and resistance that I spotted on USDCAD on a daily time frame. 2. Psychological significance The structure that you identified should match with round numbers. All the structures that we spotted on USDCAD match with psychological numbers. 3. Confluence with other technical tools The best structure should align with other trading tools such as trend lines or Fibonacci levels , strengthening its significance. After adding fibonacci levels and a significant falling trend line on the chart, the confluence was found in Resistance 6, Resistance 3, Resistance 2, Resistance 1, Support 2. Other structure does not match with technical tolls. 4. Volume The level experiences high trading volumes, indicating strong participation and interest from market participants, especially smart money. All the structures that we underlined show significant volume spikes. By volume spike, I mean a volume being higher than the average volume - a blue curve on volume. 5. Multiple touches The more, the better. There are numerous instances where price has respected and reacted to the structure, confirming its strength (at least 2). Only these 3 structures were confirmed by the multiple touches. These resistances will be considered the strongest ones. That checklist will help you to identify the most significant structures from where you will be able to catch impulsive movement and make nice profits. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
7
Its Non-Farm: How much will ES Move?Hi all - Happy Non-Farm Friday! I haven't done this in a while and thought it might be helpful to share my process for estimating the size of the move that we may get on ES after the Non-Farm Payrolls data is released. I'm not trying to make a prediction on direction here - but more understand where the boundaries could be so I can determine how to trade this (what trading tool I can pull out of my box) once the announcement comes out. Hope it helps and please let me know if you find it useful and I'll create more posts . Cheers, Jeff
CME_MINI:ES1!Education
by JeffBoccaccio
2
Order Block - Powerful Key level and Entry confirmationHey whats up guys, Today we are going to break down Order Block. This powerful pattern can be used as the level and also as the lower timeframe entry confirmation. We will break down both. An Order block is the last bullish or bearish candle before a strong market move that signals where institutions placed large orders, often acting as future support or resistance. Yes, its basically Demand zone, and it will quite often will be in confluence with POC when using market profile. Not every order block is high probability one. In order to filter out best levels my order block must meet these two conditions: 1. Located at Premium / Discount Level As we can so on charts below order block which failed is one which had expansion, but not proper dip in to liquidity and not placed in the discount. And thats what makes it weak because institutions need liquidity dip to buy and they don't do it in the premium prices. So No Liquidity raid - No trade and also it has to be in the discount. 2. Must have FVG or IFVG In order to move market and create a liquidity void - gap. You need quite large money. Only big players can do it. Therefore if there is not gap, its signs that they are not trading and you should not be also. If there is gap within OB it will be strong one. As mentioned we can use order block as key level from which we can trade or we can use it as entry confirmation - Change in order flow. We use it on the lower timeframe. Here is correct timeframe alignment's Monthly OB as Key Level - Daily Order Block entry Weekly OB as Key Level - H4 Order Block entry Daily OB as Key Level - H1 Order Block entry H4 OB as Key Level - M15 Order Block entry The entry is simple you need - Pullback in to the discount - HTF key Level - LTF OB being created Once the candles close above / bellow last down / Up close candle or consecutive candles, you enter your position. Below is few examples of my successful calls before the fact. No hindsight, its working. Bitcoin - Order Block entry Bitcoin - Order Block Entry Dogecoin - Order Block Entry Palantir - Order Block Mid point entry Dollar Index - Order Block entry Don't hesitate to drop any question's. Im always glad to answer. Follow me for more educational blog posts. David Perk
BITFINEX:BTCUSDEducation
by David_Perk
31
Best Price Action Chart Patterns by Accuracy Last Year Last year I shared more than 1300 free signals and forecasts for Gold, Forex, Commodities and Indexes. In my predictions, quite often I relied on classic price action patterns. In this article, I will reveal the win rate of each pattern, the most accurate and the least accurate formations of last year. Please, note that all the predictions and forecasts that I shared last year are available on TradingView and you can back test any of the setup that I identified last year by your own. Just choose a relevant tag on my TradingView page. Also, some of the forecasts & signals were based on a combination of multiple patterns. Here is the list of the patterns that I personally trade: 🔘 Double Top or Bottom with Equal Highs The pattern is considered to be valid when the highs or lows of the pattern are equal. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Double Top or Bottom with Lower High/Higher Low or Cup & Handle The pattern is considered to be valid when the second top/bottom of the patterns is lower/higher than the first one. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Head & Shoulders and Inverted Head and Shoulders The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Horizontal Range The pattern is the extension of a classic double top/bottom with at least 3 equal highs/lows. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Bullish/Bearish Flag The pattern represents a rising/falling parallel channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Rising/Falling Wedge Pattern The pattern represents a contracting rising/falling channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Rising/Falling Expanding Wedge The pattern represents an expanding rising/falling channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Descending/Ascending Triangle The pattern is the extension of a cup & handle pattern with at least 2 lower highs/lows. The pattern gives a bearish/bullish signal when its neckline is broken. Please, also note that all the patterns that I identified and traded were formed on key horizontal or vertical structures. Remember that the accuracy of any pattern drops dramatically if it is formed beyond key levels. I consider the pattern to be a winning one if after a neckline breakout, it managed to reach the closest horizontal or vertical structure, not invalidating the pattern's highs/lows. For example, if the price violated the high of the cup and handle pattern after its neckline breakout, such a pattern is losing one. If it reached the closest structure without violation of the high, it is a winning pattern. 🔍 Double Top or Bottom with Equal Highs I spotted 85 setups featuring these patterns. Their accuracy is 62% . 🥉 Double Top or Bottom with Lower High/Higher Low or Cup & Handle 96 setups were spotted. The performance turned out to be a little bit higher than a classic double top/bottom with 65% of the setups hitting the target. 🔍 Head & Shoulders and Inverted Head and Shoulders 58 formations spotted last year. Average win rate is 64% 🏆 Horizontal Range The most accurate pattern of last year. More than 148 patterns were spotted and 74% among them gave accurate signal. 🔍 Bullish/Bearish Flag 38 setups identified last year. The accuracy of the pattern is 57% Rising/Falling Wedge The pattern turned out to be a little bit more accurate. Among 62 formations, 59% end up being profitable. 👎 Rising/Falling Expanding Wedge The worst pattern of last year. I recognized 24 patterns and their accuracy was just 51%. 🥈 Descending/Ascending Triangle 64 patterns were identified. The win rate of the pattern is 66%. The most important conclusion that we can make analyzing the performance of these patterns is that they all have an accuracy above 50%. If you properly combine these patterns with some other technical or fundamental tools, the accuracy of the setup will increase dramatically. Good luck in your trading! ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
10
Fib levels can be easy to draw but when do they matter most?So I have used Fibonacci extensions and retracement along with time based extensions to show how one can determine not only where and what levels are significant but Also, when they should be paying closer attention, that is the point of these lines along the vertical axis because one cannot simply watch the chart all the time I like to use FaceTime based Fibonacci extensions when I have observed a large move and participated in it and I’m trying to figure out a good way to move forward afterwards. I will often settle Alerts to know when price is touched the 2.8 or the 38 line so that I can check on the chart and see where things are at. It’s helped tremendously with timing, especially if you pay attention to volatility with this.
COINBASE:ETHUSDEducation
by dcpersonal_1101
How to Trade Morning Star and Evening Star Candlestick Patterns Learn to identify and trade Morning Star and Evening Star candlestick formations using TradingView’s charting tools in this detailed tutorial from Optimus Futures. Morning and Evening Stars are powerful reversal patterns that often mark turning points in the market. Recognizing them can help you anticipate when momentum is about to shift—and take advantage of new trading opportunities. What You’ll Learn: • How Morning Stars signal bullish reversals at the end of a downtrend • How Evening Stars indicate bearish reversals after extended uptrends • The three-candle structure of each pattern and what it means for trader psychology • Why indecision candles (like dojis) play a critical role in confirming momentum shifts • Using volume confirmation to validate Morning and Evening Star setups • The importance of context: spotting these patterns at major support and resistance levels • Setting effective stop losses at the high/low of the pattern for risk control • Advanced entry tactic: waiting for retracement after confirmation to optimize risk/reward This tutorial may help futures traders and technical analysts who want to harness candlestick reversal signals to identify potential market turning points. The strategies covered could assist you in creating structured setups when strong buying or selling pressure appears at key chart levels. Learn more about futures trading with TradingView: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objective
COMEX:GC1!Education
by OptimusFutures
FOMC and Market Reactions – Simple Logic Explained💎MJTrading: The Federal Open Market Committee (FOMC) guides U.S. interest rates. Their decisions ripple through all major markets, not just the dollar. 🔑 How It Works (Simple View): - When the Fed signals higher rates, the USD demand rises (investors seek higher returns), while gold, stocks, and crypto often fall because money becomes “more expensive.” - When the Fed signals lower rates or slows tightening, the USD loses demand, and money flows into assets like gold, stocks, and crypto. 🔍 Why a Rate Cut Weakens the Dollar: * Cutting rates means borrowing money becomes cheaper. * Investors earn less return by holding USD in banks or bonds. * This lowers demand for the dollar, making it cheaper in global markets. 📊 What the Current Charts Show: CAPITALCOM:DXY (Dollar Index): Sharp drop → less demand for USD. FX:XAUUSD (Gold): Demand rises as an alternative store of value. FX:EURUSD : Euro strengthens against weaker dollar. BINANCE:BTCUSD : Risk appetite returns, lifting crypto. BLACKBULL:US30 (Dow Jones): Stocks benefit as liquidity shifts from USD into equities. ⚡ The Core Reason – Demand & Supply Weaker dollar = reduced demand for USD, so supply flows into gold, stocks, euro, and crypto. 🔮 Looking Ahead – Will the Rally Continue? The rally may extend if the dollar remains under pressure and the Fed stays dovish. But caution: after the first strong impulse, markets often retrace to test demand zones before continuing. Next week’s momentum will depend on whether buyers can sustain demand beyond the initial FOMC reaction. 👉 Takeaway for Traders: FOMC moves aren’t random. They’re driven by where capital finds the best return. Understanding this demand–supply flow helps explain why all charts move together in these moments. #MJTrading #FOMC #DXY #XAUUSD #EURUSD #BTCUSD #US30 #Forex #Gold #TradingEducation #Rally Psychology Always Matters:
FX:XAUUSDEducation
by MJElahifx
1
FOMC and Market Reactions – Simple Logic Explained💎 MJTrading: The Federal Open Market Committee (FOMC) guides U.S. interest rates. Their decisions ripple through all major markets, not just the dollar. 🔑 How It Works (Simple View): - When the Fed signals higher rates, the USD demand rises (investors seek higher returns), while gold, stocks, and crypto often fall because money becomes “more expensive.” - When the Fed signals lower rates or slows tightening, the USD loses demand, and money flows into assets like gold, stocks, and crypto. 🔍 Why a Rate Cut Weakens the Dollar: * Cutting rates means borrowing money becomes cheaper. * Investors earn less return by holding USD in banks or bonds. * This lowers demand for the dollar, making it cheaper in global markets. 📊 What the Current Charts Show: DXY (Dollar Index): Sharp drop → less demand for USD. XAUUSD (Gold): Demand rises as an alternative store of value. EURUSD: Euro strengthens against weaker dollar. BTCUSD: Risk appetite returns, lifting crypto. US30 (Dow Jones): Stocks benefit as liquidity shifts from USD into equities. ⚡ The Core Reason – Demand & Supply Weaker dollar = reduced demand for USD, so supply flows into gold, stocks, euro, and crypto. 🔮 Looking Ahead – Will the Rally Continue? The rally may extend if the dollar remains under pressure and the Fed stays dovish. But caution: after the first strong impulse, markets often retrace to test demand zones before continuing. Next week’s momentum will depend on whether buyers can sustain demand beyond the initial FOMC reaction. 👉 Takeaway for Traders: FOMC moves aren’t random. They’re driven by where capital finds the best return. Understanding this demand–supply flow helps explain why all charts move together in these moments. #MJTrading #FOMC #DXY #XAUUSD #EURUSD #BTCUSD #US30 #Forex #Gold #TradingEducation #Rally Psychology Always Matters: Click on the image to read the caption.
COINBASE:BTCUSDEducation
by MJElahifx
SMC Trading Basics. Liquidity Zones & How to Identify Them In the today's article, I will teach you the concept of liquidity zones and how to identify them properly, trading Forex, Gold, Crypto and Indexes. Simply put, a liquidity zone is a certain area on a price chart where a significant concentration of trading volumes occurred. Huge trading volumes signify the presence of big players: hedge funds, banks, etc... Correct identification of liquidity zones is essential for smart money trading, because such zones provide the safest and the most profitable trading opportunities. There are 3 common characteristics of a valid liquidity zone: 1. Huge volume spikes upon its test Take a look at the underlined blue area on USDCAD. We see sharp volume spikes when the market was testing that area. 2. Strong rejections from such an area with a formation of long wicks Look how the price reacts to the liquidity zone on USDJPY. We see multiple strong rejections from that. 3. Long consolidation within that zone Bitcoin was "standing" on a liquidity zone for more than 3 weeks, barely moving while trading volumes were quietly accumulating. 4. Multiple strong bullish or bearish reactions to that area Just look how many times the underlined area was respected by the buyers and by the sellers. That is a perfect example of a liquidity zone. To underline a liquidity zone properly, follow these simple rules: 1. If the price is ABOVE the liquidity zone, its lower boundary will be the lowest wick within that area and its upper boundary will be the lowest candle close. Such a liquidity zone will be called a demand area. Here is the example of drawing a liquidity zone on GBPUSD. The lower boundary of the zone is the lowest wick, while its upper boundary is the lowest candle close. 2. If the price is BELOW the liquidity zone, its upper boundary will be the highest wick within that area and its lower boundary will be the highest candle close. Such a liquidity zone will be called a supply area. Here is the liquidity zone that I identified on Gold following our rules. Remember, that you can identify liquidity zones on any time frame. However, the rule is that the higher is the time frame, the stronger is the liquidity zone. I prefer to analyze the liquidity zones on a daily time frame. Once you underlined liquidity zones, you should realize that within these areas, big players are expected to place their orders in the future. For that reason, after the tests of such areas, a strong bullish or bearish movements will be expected. Here is a huge liquidity zone that I spotted on GBPJPY. Look at a strong bearish movement that initiated after its test. Your task as a smart money trader will be to identify bullish or bearish confirmations and understand the intentions of big players. With experience, you will learn to recognize valid signals. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
12
Identifying High-Probability Support: The Power of ConvergenceHello Friends, Welcome to RK_Chaarts Today we're going to learn Comprehensive Guide to Identifying Convergent Support Zones Which are High Probability Support areas. This post is for Educational purpose only. This detailed analysis will walk you through a step-by-step process of combining multiple technical analysis methods to identify a robust support zone. We'll explore how Elliott Wave theory, Anchored VWAP, EMA200, Fibonacci Retracements, and equality to extensions can coincidentally converge on the same support zone. Step 1: Elliott Wave Analysis Begin by identifying the Elliott Wave structure. Look for impulse waves, corrective waves, and the relationships between them. In this example: - Wave Y is potentially completing near the equality zone (100% to 161.8% extension). - This level marks a potential reversal point. Support zone as per Elliott Wave theory Analysis Step 2: Anchored VWAP Analysis Apply Anchored VWAP to identify key support levels: - Plot the VWAP from the last swing low and the second-last swing low. - Note the convergence of these VWAP levels, which can indicate strong support. Support zone as per Anchored VWAP Analysis Step 3: EMA200 Analysis Add the 200-period Exponential Moving Average (EMA) to your chart: - The EMA200 has consistently provided support during previous corrections. - Note the price approaching this level, increasing the likelihood of a bounce. Support zone as per 200 Exponantial Moving Average Step 4: Fibonacci Retracement Analysis Apply Fibonacci retracements to the previous rally: - Identify the 50%, 61.8%, and 78.6% retracement levels. - Note the current fall has already exceeded the 38% retracement. Support zone as per Fibonacci Retracement Analysis Step 5: Convergence of Support Zones Combine the analysis from each step: - Note the striking convergence of support zones: - Elliott Wave equality zone (100% to 161.8% extension) - Anchored VWAP support zone - EMA200 support level - Fibonacci retracement zone (50%-61.8%) Coincidentally all these are providing nearly same Support area (Price zone) Trading Implications With the convergence of these multiple analysis methods, you can: - Identify a high-probability support zone. - Look for buying opportunities near this zone. - Monitor price action and market sentiment for confirmation of a reversal. - Consider scaling into positions or setting limit orders within the support zone. Important Note: Failure to Hold Support If the price fails to hold support at this converged zone, it may indicate a stronger bearish trend. In this scenario: - Be prepared for a potential significant downfall. - Consider adjusting your trading plan to account for the increased bearish momentum. - Keep a close eye on price action and market sentiment for further guidance. By understanding the convergence of these multiple analysis methods and being aware of the potential risks, you'll be better equipped to make informed trading decisions and navigate the markets with confidence. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
BITSTAMP:ETHUSDEducation
by RK_Chaarts
2
Mastering indecision candlestick patterns - How to use it!In this guide I will explain the indecision candlestick patterns. The next subjects will be discussed: - What are indecision candlestick patterns? - What is the doji? - What is the spinning top? - What is the high wave candle? What are indecision candlestick patterns? Indecision candlestick patterns are formations on a price chart that suggest uncertainty in the market. They appear when neither buyers nor sellers have full control, meaning the price moves up and down during the trading period but closes near where it opened. This creates a candle with a small real body and often long wicks on either side, showing that the market explored both higher and lower prices but ended up not committing strongly in either direction. These patterns are often seen during periods when traders are waiting for more information before making bigger moves. What is the doji? One of the most well-known indecision candles is the doji. A doji forms when the opening price and the closing price are almost identical, resulting in a very thin body. The wicks, which show the highest and lowest prices of the period, can be long or short depending on market activity. A doji tells us that buying and selling pressure were almost equal, which can happen during pauses in trends or before major reversals. What is the spinning top? Another type is the spinning top. A spinning top also has a small body, but unlike the doji, the open and close are not exactly the same. The wicks on both sides are typically of similar length, indicating that the market moved both up and down significantly before settling close to the starting point. This pattern reflects hesitation and a balanced struggle between bulls and bears. What is the high wave candle? The high wave candle is a more dramatic version of indecision. It has a small real body like the other patterns but features very long upper and lower shadows. This means the market swung widely in both directions during the period, but ultimately closed without making strong progress either way. The high wave candle signals strong volatility paired with uncertainty, which can often precede sharp moves once the market chooses a direction. When you see these types of candles, they are essentially the market saying “I’m not sure yet.” They often appear at turning points or before big news events and can warn that the current trend may be losing strength. However, they are not guarantees of reversal or continuation on their own. Traders usually combine them with other technical signals or chart patterns to confirm whether the market will break out in one direction or the other. ------------------------- Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Thanks for your support. If you enjoyed this analysis, make sure to follow me so you don't miss the next one. And if you found it helpful, feel free to drop a like 👍 and leave a comment 💬, I’d love to hear your thoughts!
TRADENATION:BTCUSDEducation
by Youriverse
54
How to Identify Support and Resistance in Markets with AnologyHello Friends, Welcome to RK_Chaarts, Today we are going to learn & understand real work of Supports and Resistances in markets, and Market structure with very good examples (Educational Post) The Market's Architecture: Support and Resistance This is an excellent analogy for understanding two of the most worthful concepts in technical analysis: support and resistance. By thinking of the market as a multi-story building, we can visualize how price moves and what happens when it hits certain levels. - The Core Analogy: The Building and the Elevator - Imagine the market as a large building with many floors. The price of an asset (like a stock or a cryptocurrency) is like an elevator moving up and down within this structure. The floors and ceilings of the building are not physical barriers but represent specific price points that the market has collectively agreed upon as important. - The Floor (Support) The floor of a building provides a solid base and prevents the elevator from falling further. In the market, this is called a support level. A support level is a price point where buying pressure is strong enough to stop the price from declining. When the "elevator" (price) reaches the floor, it finds enough buyers to give it a lift, preventing a deeper fall. A strong support level is like a thick concrete floor—it has been tested multiple times and holds firm, showing that there is significant demand for the asset at that price. - The Ceiling (Resistance) - The ceiling of a building sets the upper limit for the elevator's movement on a given floor. This is the market's resistance level. A resistance level is a price point where selling pressure is strong enough to prevent the price from rising further. When the "elevator" hits the ceiling, it encounters a large number of sellers who are ready to take profits, pushing the price back down. A strong resistance level is like a low ceiling—the price hits it and retreats, indicating that many investors believe the asset is overvalued at that point. Breaking Through: New Levels The most dynamic part of the analogy is what happens when the elevator breaks through a floor or ceiling. Breakout (Breaking the Ceiling): When the price has enough momentum to push through the resistance level (the ceiling), it has essentially moved to a new, higher floor. This is a significant event. The old ceiling, which was previously a barrier, now becomes the new floor. This is a key trading principle: old resistance often becomes new support. The market has established a new, higher trading range, and if the price falls back to that level, it will likely find buyers there, who now see it as a good value. Breakdown (Breaking the Floor): Once if price falls from that floor (Support level) which is called as Breakdown in technical language, then lower floor can be the next stop for elevator (Next Support for price), The old floor, which once provided support, now becomes a new ceiling. This is the reverse principle: old support often becomes new resistance. If the price tries to rally back up, it will likely get stuck at this old support level, as it's now seen as a good place to sell. Structural Integrity (Volume) Think of market Volume like a construction team. When a lot of people are involved (high volume), the structure is stronger. Imagine a ceiling in the market. If lots of buyers (high volume) break through it, that's like a robust construction team building a new floor. It's unlikely to collapse. On the other hand, if sellers break through a floor with high volume, that's a strong sign they're serious about the downward move. But if the volume is low, it's like a weak construction team. Even if they break through, the move might not last. It's like a flimsy wall that could easily be reversed. So, volume gives us a sense of whether the market's moves are strong and reliable, or weak and likely to change. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:SANGHVIMOVEducation
by RK_Chaarts
4
Market Manipulations. Bullish Trap (Smart Money Concepts SMC) 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 for an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions in a loss . When a short position is closed, it is automatically BOUGHT by the market. Take a look at a key horizontal resistance on AUDCHF. Many times in the past, the market dropped from that. For sellers, it is a perfect area to short from. Bullish violation of the underlined zone make sellers close their position in a loss and attracts buyers. Then the market suddenly starts falling heavily, revealing the presence of smart money. Both the sellers and the buyers lose their money because of the manipulation. There are 2 main reasons why the smart money manipulates the markets in a such a way: 1️⃣ - A big player is seeking to close a huge long position When a long position is closed, it is automatically SOLD to the market. In order to sell a huge position, smart money needs a counterpart who will buy their position. Triggering stop losses of sellers and creating a false demand, smart money sell their position partially to the crowd. 2️⃣ - A big player wants to open a huge short position But why the smart money can't just close their long position or open short without a manipulation? A big sell order placed by the institutional trader, closing their long position, can have an impact on the price of the asset. If the sell order is large enough, it can push the price downward as sellers outnumber buyers. Smart money are trying to balance the supply and demand on the market, hiding their presence. It is quite complicated for the newbies and even for experienced traders to recognize a bullish trap. One of the efficient ways is to apply multiple time frame analysis and price action. Remember, that most of the time bullish traps occur on key horizontal or vertical resistances. After you see a breakout, analyze lower time frames. Quite often, after a breakout, the market starts ranging . After a breakout of a key daily resistance, gold started to consolidate within a narrow range on an hourly time frame. Bearish breakout of the support of the range will indicate a strength of the sellers and a highly probable bullish trap. Remember, that you can not spot all the traps, and occasionally you will be fooled by smart money. However, with experience, you will learn to recognize common bullish traps. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
17
Mastering bearish candlestick patterns - How to use it!Bearish candlestick patterns are a cornerstone of technical analysis, relied upon by traders across financial markets to assess the likelihood of price reversals or continued downward trends. At their core, these patterns are visual representations of shifts in market sentiment, formed by the open, high, low, and close prices over one or several trading sessions. When recognized accurately and interpreted in context, bearish candlestick setups can alert market participants to the fading strength of buyers and the increasing presence of sellers, which often precedes downward price movements. Expanding on this, a comprehensive understanding of each pattern’s nuances, psychological underpinnings, and optimal trading applications can significantly enhance a trader’s analytical toolkit. What will be discussed? - What is a shooting star? - What is a hanging man? - What is a gravestone dojo? - What is an evening star? - What are the three black crows? - How to trade the bearish candlestick patterns? Shooting star The shooting star pattern stands as a prominent candlestick configuration foreshadowing potential bearish reversals after an uptrend. This single-candle pattern is distinguished by a small real body situated near the lower end of the price range, a long upper shadow that is at least twice the length of the body, and little to no lower shadow. The psychological narrative implied by the shooting star is compelling: buyers initially control the session, pushing prices sharply higher, but by the close, sellers have overwhelmed this optimism, pulling the price back down to near or below the opening point. This abrupt shift in control suggests that the bullish momentum is waning, priming the market for a price correction or reversal. Hanging man The hanging man, while visually similar to the hammer pattern of bullish reversals, is distinctly bearish because of its position at the top of an established uptrend. This single-candle pattern features a small body at the upper part of the trading range and a markedly long lower shadow, again with minimal or absent upper shadow. During the session, substantial selling pressure drives prices down, accounting for the extended lower shadow, yet buyers temporarily regain some control, recovering much of the loss by the close. Despite this late-session recovery, the appearance of the hanging man warns traders that sellers are growing more aggressive – especially if the next candle confirms the weakness with a lower close. Gravestone doji A classic and somewhat ominous formation, the gravestone doji is a specialized form of doji candlestick that carries even greater weight when it appears after a rising market. Here, the open, close, and low are all clustered near the session’s low, forming a long upper shadow with no lower shadow. This structure vividly illustrates a dramatic shift in sentiment: buyers propel prices higher during the session, only to be met by intense selling which pushes prices back to the opening level by the close. This failed rally, marked by the upper wick, reflects the exhaustion of buying interest and the potential onset of bearish dominance. Bearish engulfing Turning to multi-candle setups, the bearish engulfing pattern is a powerful, two-bar reversal pattern. The initial candle is bullish and typically a continuation of the prevailing uptrend, but the second candle is bearish and must open above and close below the body of the first candle, “engulfing” it completely. The transition from a relatively small upward move to a much larger downward move highlights a rapid escalation in sell-side enthusiasm. Importantly, the larger the second candle and the greater the volume accompanying it, the more reliable the signal. Evening star The evening star expands the analysis further into a three-candlestick formation, representing a storyline of shifting market dynamics. The pattern commences with a long bullish candle, followed by an indecisive small candle (the star) that gaps above the previous close, and concludes with a large bearish candle that closes deep into the first candle’s body. The evening star is especially meaningful because it narrates a transition from bullish exhaustion to bearish control over three sessions, making it a robust signal of a pending trend reversal. The reliability of the evening star increases if the bearish candle is accompanied by high volume, confirming a surge in selling pressure. Three black crows Among the most striking bearish signals is the three black crows pattern. It comprises three consecutive large bearish candles, each opening within the body of the previous candle and closing successively lower. This pattern demonstrates relentless selling over several sessions, erasing prior gains and indicating that bearish sentiment is in full swing. Collectively, the three black crows can shift market psychology significantly when they appear after a lengthy uptrend, especially if accompanied by increased trading volume. How to trade the bearish candlestick patterns? Effectively using bearish candlestick patterns in a trading strategy requires more than mere recognition of shapes. The context in which these patterns emerge matters greatly; traders should analyze preceding price action, the scope of the trend, and any converging signals from other technical tools such as momentum oscillators or volume indicators. Confirmation is a best practice, waiting for a subsequent session that continues in the bearish direction can filter out false signals and decrease the chances of whipsaw trades. In practice, traders may use these patterns to identify short-selling opportunities, define entry and exit points, or adjust stop-loss levels to protect profits as a trend appears to reverse. Risk management is crucial, as no pattern is infallible. Position sizing, stop-loss placement, and ongoing evaluation of the broader market environment all contribute to the prudent use of candlestick analysis. By integrating these patterns into a comprehensive market analysis framework, traders are better positioned to interpret crowd psychology, anticipate significant reversals, and navigate the complexities of price movement with a higher degree of confidence and skill. ------------------------- Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Thanks for your support. If you enjoyed this analysis, make sure to follow me so you don't miss the next one. And if you found it helpful, feel free to drop a like 👍 and leave a comment 💬, I’d love to hear your thoughts!
TRADENATION:BTCUSDEducation
by Youriverse
53
Support & Resistance – Quick Guide In 5 StepsSupport and resistance are key concepts in technical analysis that help traders identify where price is likely to react. Support acts like a floor — a level where buying interest is strong enough to prevent further declines. Resistance acts like a ceiling — a level where selling pressure can stop price from rising. These zones often lead to bounces, reversals, or breakouts, and are used to plan entries, exits, and stop-losses. How to Identify them: 1. Assess the chart. 2. Identify Swing Points: Look for repeated highs/lows and label them. (Flags) 3. Multiple touches: Highlight the zones with multiple touches. 2+ Touches are stronger. 4. Define: Clearly define the zones. Above is resistance, below is support. 5. Entry: When price makes it way down to support, wait for the reversal. Upon reversal enter on the low time confirmation. Ensure price has failed to break below the support. Then set TP to the previous High/Resistance zone. Tips: Always treat S&R as zones, not exact lines. Combine with trend, candlestick patterns, or volume for better confluences. Avoid trading into strong S/R — wait for breaks or retests.
Education
by King_BennyBag
34
From Fakeout to Takeoff: How the V-Pattern REALLY WorksEver seen a support level break, only for the price to rocket back up in a V-shape? That’s the V-Pattern in action! In this post, Skeptic from Skeptic Lab breaks down the step-by-step mechanics of this powerful setup. From the fakeout that traps short sellers to the surge of buy orders from liquidations, you’ll learn exactly how buyers flip the script and create explosive reversals. Perfect for traders looking to spot high-probability setups. Join me to decode the markets—check out the steps and level up your trading game!
Education
by SkepticLab
1
Learning#04 : PDH & PDL🎯 Learning#04 : PDH & PDL - The 2 Levels Every Intraday Trader Must Watch Turn Yesterday’s Levels into Today’s Profits – PDH/PDL Playbook In intraday trading, simplicity often beats complexity. You don’t always need fancy indicators, dozens of lines, or complicated systems. Sometimes, two levels are all it takes to stay in sync with the market: 👉 Previous Day’s High (PDH) 👉 Previous Day’s Low (PDL) These levels may look basic, but they carry psychological weight and often mark where real action — and opportunity — unfolds. Let’s break it down into a practical strategy you can start using as early as tomorrow morning 👇 🧠 What Are PDH and PDL? PDH = The highest price the market reached yesterday PDL = The lowest price the market reached yesterday That’s it. No calculations. No indicators. Just two simple levels from the previous session. But here’s why they matter: They’re visible to everyone — retail traders, institutional desks, even algo systems. These are “memory zones” where the market often reacts — bouncing, breaking, or trapping traders in fakeouts. Think of them as psychological boundaries. When price approaches these levels, traders ask: “Will it break or bounce?” That hesitation — that moment of decision — is your opportunity. ⚡ Why These Levels Work So Well ✅ They’re objective — no subjectivity involved. Anyone can mark them. ✅ They’re reaction zones — price often stalls, breaks, or rejects here. ✅ They reflect sentiment — how price behaves around them reveals market strength or weakness. PDH and PDL often act like turning points — or springboards for continuation. The key is in reading how price behaves when it gets there. 📊 3 Smart Ways to Trade Around PDH/PDL Let’s look at three powerful setups based on how price behaves near these levels: 1️⃣ Rejection at PDH or PDL (Classic Reversal) This is the simplest setup — and one of the most effective. When price tests PDH or PDL but fails to break, it often leaves signs: Long upper/lower wicks Rejection candles (like pin bars or inside bars) Sudden volume drop 💡 Example: Nifty rallies to PDH at 22,180, prints a long upper wick, then forms a red candle closing below. That’s a reversal clue. You could enter short below the rejection candle, with a stop just above the high and a target near VWAP or mid-range. 🎯 Why this setup works: Tight risk. Logical context. High clarity. 2️⃣ Breakout and Retest (Trend Continuation) If price breaks through PDH/PDL with strength, don’t chase it. Wait for price to pull back and retest the level. If PDH was broken, wait for a bullish retest — former resistance becomes support. If PDL was broken, wait for a bearish retest — former support becomes resistance. 💡 Example: BankNifty breaks PDH, pulls back, then prints a bullish engulfing candle right at the level — confirmation to go long. 📌 This setup works best on trending days and offers cleaner entries than chasing breakouts. 3️⃣ The Failed Breakout (Trap Setup) One of the most high-probability setups — and one that traps many. Here’s how it plays out: Price breaks PDH/PDL But immediately snaps back inside the range Traders who chased the breakout are now trapped 💡 Signal to watch: A candle closes above PDH, followed by a candle that closes back below — that’s your short signal. Reverse for long setups around PDL. 🚨 Even more effective when the breakout happens on low volume — no real conviction behind the move. 🔧 Tools That Amplify These Setups These setups work great with a clean chart — but a few tools can boost your edge: VWAP: Check if price is extended or supported near PDH/PDL. When VWAP aligns with these levels — confluence zone! Candlestick patterns: Look for pin bars, inside bars, or engulfing patterns at the level. Opening range: If price breaks PDH/PDL early in the day, especially within the first 30 minutes, it signals directional intent. Volume: Strong breakouts need volume. Weak volume = likely fakeout. 🔑 Remember: You don’t trade the level — you trade the reaction at the level. ✅ Why This Simple Strategy Works Don’t underestimate the power of PDH and PDL. These levels: Show where emotions exist — greed and fear often play out here. Create natural reaction zones — ideal spots for clean entries and exits. Let you trade with structure, not guesswork. Instead of chasing price all day, do this: Mark PDH and PDL Wait for price to approach the zone Watch how it behaves React with a plan — not emotion ✨ Simple, repeatable, and highly effective — if you stay patient and disciplined. ✍️ Final Thoughts In a world full of overcomplicated strategies, PDH/PDL trading is a refreshing reminder that clarity often comes from simplicity. These levels won’t give you 10 trades a day — but they will give you high-quality, context-driven opportunities that align with how real price and volume work. See you in the next one — and until then: Keep it simple. Trade with structure. Trust the levels. — Kiran Zatakia
NSE:NIFTYEducation
by kzatakia
Learning#03 : VWAP in Intraday TradingLearning#03 : VWAP in Intraday Trading 📊 VWAP in Intraday Trading: The Market’s Fair Price GPS Ever wondered if there’s a level that shows where the real trading action is happening? That’s exactly what VWAP does — it’s like a volume-weighted compass that intraday traders use to orient themselves in the market. It’s not just another line on your chart. VWAP reflects where institutions and volume-heavy participants are active. That’s why understanding how price interacts with it can give you a serious edge. Let’s break it down 👇 🧠 What is VWAP? VWAP stands for Volume Weighted Average Price. In simple terms, it shows the average price a stock has traded at throughout the day, based on both price and volume. Unlike a simple average, VWAP gives more weight to prices where more trading volume occurred — meaning it's a better reflection of the market’s consensus value. Think of it as: A real-time fair value line for intraday decision-making. 📈 Why VWAP Matters for Intraday Traders VWAP acts as an intraday anchor. It tells you whether the price is currently trading above or below the day’s volume-weighted average — giving you quick insight into who's in control. Here’s how to interpret it: When price is above VWAP, buyers are in control and the bias is bullish. When price is below VWAP, sellers are dominating and the bias is bearish. When price is hovering near VWAP, the market is undecided, consolidating, or lacking direction. In short, VWAP tells you who’s winning the intraday tug of war — and whether it’s even worth stepping in. ⚙️ How to Use VWAP in Your Intraday Strategy 1️⃣ VWAP as a Trend Filter Before entering a trade, check where price is relative to VWAP: Price above VWAP with higher lows → Focus on long setups Price below VWAP with lower highs → Focus on short setups 🔁 Skip counter-trend trades. Stay with the flow. This helps in trending markets by keeping you aligned with momentum. 2️⃣ VWAP as Dynamic Support or Resistance VWAP behaves like a magnet. Price often pulls back to it and either: Rejects (respects the level as support/resistance), or Breaks and reclaims (signaling a potential reversal) Use it alongside: Flag patterns Inside bars Break-and-retest structures 3️⃣ VWAP Reversion Play (Snapback Trade) This is a mean-reversion setup: Price moves quickly away from VWAP at open No strong follow-through, signs of exhaustion Take a counter-trend trade back to VWAP ⚠️ Avoid this in strong trending markets — best used in choppy or fading environments. 4️⃣ VWAP with Price Action for Structure Pair VWAP with clean price action: Mark support and resistance zones Observe price behavior near VWAP Look for confirmation: inside bars, rejection wicks, engulfing candles 🎯 This adds logic and clarity to your entries — no random trades. 🔍 Bonus VWAP Tips Combine VWAP with: CPR (Central Pivot Range) for confluence zones Opening range for breakout bias Volume profile to spot high interest areas These combos create strong, repeatable trade setups. ✅ VWAP Recap: Why It Matters Here’s a quick breakdown of how VWAP can sharpen your intraday trading game: Bias Building: VWAP helps confirm whether the market structure is bullish or bearish, giving you a reliable directional bias. Trend Filtering: It keeps you aligned with the current momentum by filtering out counter-trend trades. Pullback Entries: VWAP acts as a dynamic support or resistance level, offering clean zones to enter trades during pullbacks. Mean Reversion: In sideways or fading markets, VWAP becomes a natural magnet — allowing you to target price reversions. Risk Management: It provides logical reference points for placing stop-losses and defining entry zones, adding clarity to your risk-reward planning. ✍️ Final Thoughts VWAP may sound simple, but it brings real structure to intraday trading. It tells you where volume met price, and that’s powerful. When used with price action, it creates a solid framework for: Building directional bias Finding clean entries Managing risk like a pro VWAP doesn’t predict — it reflects. And in trading, reflection is more useful than prediction. 🛎️ Respect VWAP. Trade with structure. — Kiran Zatakia
NSE:NIFTYEducation
by kzatakia
Mechanical vs. Anticipation Trades: The Fine LineWhen traders talk about discipline, they often refer to following rules — sticking to a plan, being methodical, and avoiding emotional decisions. But there's a subtle and powerful difference between being rule-based and being blindly mechanical. And even more, there's a moment in every trader’s process where discipline demands adaptation. Let’s look at a recent trade on Gold to understand this better. On Thursday, I published an analysis on Gold stating that the recent breakdown of support had turned that zone into resistance. A short entry from that level made sense. It was mechanical, clean, and aligned with what the chart was showing at the time. And, at first, it worked. Price rose into the resistance area and dropped. Perfect reaction. Textbook setup. Confirmation. The kind of trade you want to see when following a rule-based system. But then something changed. Price came back. Quickly.(I'm talking about initial 3315-3293 drop and the quick recover) So, the very next rally pushed straight back into the same resistance area, hmmm...too simple, is the market giving us a second chance to sell? That was the first sign that the market might not respect the previous structure anymore. It dipped again after, but the second drop was different: slower, weaker, choppier. That told me one thing: the selling pressure was fading. So I shifted. From mechanical execution to anticipatory mindset. This is where many traders struggle — not because they don’t have a system, but because they don’t know when to let go of it. Or worse: they abandon it too quickly without cause. In this case, the evidence was building. The failed follow-through. The loss of momentum. The compression in structure. All signs that a reversal was brewing. Rather than continuing to blindly short, referring to a zone that no longer held the same weight, I started looking for the opposite: an upside breakout and momentum acceleration. That transition wasn’t based on emotion. It was based on market behavior. ________________________________________ Mechanical vs. Anticipation: What’s the Real Difference? A mechanical trade is rule-based: • If X happens, and Y confirms, then enter. • No need for interpretation, no second guessing. • It can (in theory) be automated. An anticipatory trade is different: • It’s about reading intent in price action before confirmation. • Higher risk usually, but higher reward if you’re right. • Can’t be automated. It requires presence, experience, and context. And the tricky part? Often, we lie to ourselves. We say we’re "mechanical" while actually guessing. Or we think we’re being smart and intuitive, when in fact, we’re being impulsive. The key is awareness. In my Gold ideas, the initial short was mechanical. But the invalidation came quickly — and I was alert enough to switch gears. That shift is not a betrayal of discipline. It’s an upgrade of it. ________________________________________ Final Thoughts: Discipline is not doing the same thing no matter what. Discipline is doing what the market requires you to do, without emotional distortion. And that, often, means walking the fine line between the setup you planned for, and the reality that just showed up. Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
TRADENATION:XAUUSDEducation
by Mihai_Iacob
19
Wedge Pattern: A Key to Trend Reversals and Continuations📈 Wedge Pattern: A Key to Trend Reversals and Continuations A wedge pattern is a technical chart formation that signals a potential reversal or continuation in the market. It’s formed when price moves between two converging trendlines — either sloping upward or downward — creating a narrowing range over time. There are two main types of wedge patterns: 🔻 Falling Wedge (Bullish) Formed during a downtrend or as a correction in an uptrend. Characterized by lower highs and lower lows, with the slope of the support line steeper than the resistance line. Typically signals a bullish reversal as momentum builds for a breakout to the upside. ✅ Confirmation: Break above the resistance line with volume surge. 🔺 Rising Wedge (Bearish) Appears during an uptrend or as a correction in a downtrend. Shows higher highs and higher lows, but the support line is steeper than the resistance line. Often leads to a bearish reversal, especially when volume declines into the pattern. ⚠️ Confirmation: Break below the support line with increasing volume. 🧠 Key Characteristics Volume tends to decrease as the pattern forms, indicating a pause in momentum. The breakout direction (up or down) determines whether it’s a continuation or reversal signal. Wedges can appear on any time frame and are useful for both day traders and long-term investors. 📊 Trading Tip Always wait for confirmation of the breakout before entering a trade. False breakouts can be common, especially in low-volume environments
FOREXCOM:XAUUSDEducation
by ProfessorSingapore
How to Find Liquidity Zones/Clusters on Any Forex Pair (GOLD) You need just 1 minute of your time to find significant liquidity zones on any Forex pair and Gold. In this article, I will teach you how to identify supply and demand zones easily step by step. Liquidity Basics By a market liquidity, I mean market orders. The orders are not equally distributed among all the price levels. While some will concentrate the interest of the market participants, some levels will be low on liquidity. Price levels and the areas that will attract and amass trading orders will be called liquidity zones. How to Find Supply Zones To find the strongest liquidity clusters, we will need to analyze a daily time frame. A liquidity zone that is above current prices will be called a supply zone. High volumes of selling orders will be distributed within. One of the proven techniques to find such zones is to analyze a historic price action. You should identify a price level that acted as a strong resistance in the past. 4 horizontal levels that I underlined on EURGBP influenced market behavior in the recent past. The price retraced from these levels significantly. Why It Happened? A down movement could occur because of an excess of selling orders and a closure of long positions by the buyers. These factors indicate a high concentration of a liquidity around these price levels. How to Draw Supply Zone? One more thing to note about all these horizontal levels is that they cluster and the distance between them is relatively small . To find a significant liquidity supply zone, I advise merging them into a single zone. To draw that properly, its high should be based on the highest high among these levels. Its low should be based on the highest candle close level. Following this strategy, here are 2 more significant supply zones. We will assume that selling interest will concentrate within these areas and selling orders will be spread across its price ranges. How to Find Demand Zones A liquidity zone that is below current spot price levels will be called a demand zone . We will assume that buying orders will accumulate within. To find these zones, we will analyze historically important price levels that acted as strong supports in the past. I found 3 key support levels. After tests of these levels, buying pressure emerged. Why It Happened? A bullish movement could occur because of an excess of buying orders and a closure of short positions by the sellers. Such clues strongly indicate a concentration of liquidity. How to Draw Demand Zones? Because these levels are close to each other, we will unify them into a one liquidity demand zone. To draw a demand zone, I suggest that its low should be the lowest low among these key levels and its high should be the lowest candle close. Examine 2 more liquidity zones that I found following this method. Please, note that Demand Zone 2 is based on one single key level. It is not mandatory for a liquidity zone to be based on multiple significant levels, it can be just one. We will assume that buying interest will concentrate within these areas and buying orders will be allocated within the hole range. Broken Liquidity Zones There is one more liquidity zone that I did not underline. That is a broken supply zone. After a breakout and a candle close above, it turned into a demand zone. For that reason, I plotted that based on the rules of supply zone drawing. Start Market Analysis From Liquidity Liquidity zones are one of the core elements of forex trading. Your ability to recognize them properly is the key in predicting accurate price reversals. Identify liquidity zones for: spotting safe entry points, use these zones as targets, set your stop losses taking them into consideration. They will help you to better understand the psychology of the market participants and their behavior. I hope that the today's tutorial demonstrated you that it is very easy to find them. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Beyond ICT & SMC: The Mathematical Revolution in Zone TradingIn the world of trading, there's a fundamental divide between traders who rely on subjective interpretation and those who trust mathematical precision. While concepts like ICT (Inner Circle Trader), SMC (Smart Money Concepts), and naked chart analysis have gained popularity, they all share one critical flaw: they're based entirely on personal interpretation. The Subjectivity Problem Ask ten ICT traders to mark their Order Blocks, Fair Value Gaps, or Breaker Blocks on the same chart, and you'll get ten different answers. Why? Because these concepts rely on: Personal bias in identifying "significant" levels Subjective interpretation of market structure Discretionary decision-making on what constitutes a valid setup Emotional influence on analysis The same issue plagues SMC, CRT (Candle Range Theory), time-based analysis, and naked chart trading. One trader's "liquidity grab" is another trader's "breakout." One person's "strong support" is another's "weak bounce zone." The Mathematical Solution This indicator eliminates this guesswork entirely. Instead of relying on subjective interpretation, it: Calculates exact entry levels using mathematical formulas based on session params Identifies precise support/resistance zones Standardises signals across all timeframes, ensuring consistency whether you're on 1m or 15m charts Removes emotional bias by using algorithmic detection of significant price levels Numbers Don't Lie While an ICT trader might debate whether a level is "mitigation" or "inducement," our indicator simply states: "Entry at 1.0847, Stop at 1.0832." No interpretation needed. No second-guessing. Just mathematical precision derived from actual price action. The Inside Range Advantage: When Zones Within Zones Create Superior Trading Opportunities Most traders miss one of the most powerful setups in technical analysis: the Inside Range (IR). While ICT traders debate "nested order blocks" and SMC followers argue about "refined zones," you can easily identify Inside Ranges with this indicator and mathematically identify these high-probability setups with zero ambiguity. What Makes Inside Ranges Special? An Inside Range occurs when a new support/resistance zone forms completely within an untested larger zone. Think of it as the market revealing its hand twice – first showing you the broader area of interest, then pinpointing the precise level within it. The Mathematical Edge While discretionary traders struggle to identify these setups consistently, this indicator: Automatically detects when a smaller zone forms within a larger untested zone Calculates two precise entry options without any guesswork Eliminates the confusion of nested levels that plague subjective analysis Two Entries, Zero Confusion Documentation and full trading system instructions can be found on the indicator's publication When an IR forms, the indicator provides exactly two mathematically-derived entry options: The Outside Range entry – Using the larger zone's entry level The IR Stop-Loss entry – Converting the inner zone's stop level into an entry point Compare this to SMC's "refined OB" or ICT's "nested FVG" concepts where traders endlessly debate which level is valid. With Inside Ranges, there's no debate – just two clear, calculated levels. Inside Ranges represent areas where institutional interest overlaps. The larger zone shows initial interest, while the smaller zone within reveals refined positioning. By mathematically identifying these setups, you're trading where smart money has shown its hand twice. Real Consistent Precision Instead of squinting at charts trying to identify subjective "zones within zones," let mathematics do the heavy lifting. In trading, consistency beats creativity. Stop drawing arbitrary lines and hoping for the best. Start trading with mathematical precision. Documentation and full trading system instructions can be found on the indicator's publication → Trade with confidence. Trust in mathematics. Trust in your Edge.
OANDA:BTCUSDEducation
by BullTradingAM