Here's a throwback to Wyckoff Logic. Recall market phases, when ranging ends (accumulation or distribution) you jump the creek or break the ice then just like everything in life effect follows cause and you end up with either a mark-up or a mark-down.
What Is a Downtrend? A downtrend is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market. A downtrend can be contrasted with an uptrend. Downtrends are characterized by lower peaks and troughs and mimic changes in the perception of investors. A downtrend is fueled by a change in the supply of stocks investors...
What Is a Downtrend? A downtrend is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market. A downtrend can be contrasted with an uptrend. Downtrends are characterized by lower peaks and troughs and mimic changes in the perception of investors. A downtrend is fueled by a change in the supply of stocks investors...
When it comes to trading, many people think that it is an easy way to make quick money. However, the reality is that it takes time, effort, and patience to be a successful trader. In this blog post, we will discuss some of the key things that beginners need to do in order to be successful. Set realistic goals Setting realistic goals is important for any...
A simple way to trade EUR/USD is by taking advantage of its tendency to retest the 200-period moving average on the hourly chart. To do this, wait for the currency pair to move away significantly from the 200-period moving average and show signs of overbought or oversold conditions with two peaks or troughs, along with divergence. This presents an opportunity to...
“Timon, I’ve been following your trading tips for the last 12 years and I STILL haven’t taken my first trade." But I will soon trade... Soon? Like tomorrow? Next week or in the next 12 years? Procrastination is the thief of time. I hate clichés but I love that saying. #1: STILL not ready for losses I think most people don’t want to take losses. They are...
Phase A: Phase A in a distribution TR marks the stopping of the prior uptrend. Up to this point, demand has been dominant and the first significant evidence of supply entering the market is provided by preliminary supply (PSY) and the buying climax (BC). These events are usually followed by an automatic reaction (AR) and a secondary test (ST) of the BC, often upon...
This is not a chart reading - and i'll keep it super short ... this is just a quick reminder that we have many powerful tools that we can use to enhance our analysis and trading outcomes.. too many that we sometimes forget to use them. The above chart shows a great example of that .. I was going thru the daily analysis and thought i should share this note with...
PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by...
Phase A: Phase A marks the stopping of the prior downtrend. Up to this point, supply has been dominant. The approaching diminution of supply is evidenced in preliminary support (PS) and a selling climax (SC). These events are often very obvious on bar charts, where widening spread and heavy volume depict the transfer of huge numbers of shares from the public to...
PS—preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed...
As I keep seeing people butcher the use of fib tools figured id make this quick visual to clear up confusions on how to actually apply them for anticipating moves.
Trading is a complex activity that requires many skills and knowledge. Novices who are just starting their journey in trading often make mistakes that can lead to significant financial losses. In this article, we will discuss 5 common mistakes made by beginner traders and provide advice on how to avoid them. Lack of knowledge and experience One of the main...
Candlestick patterns are frequently applied for the identification of early trend reversal signs. Here are the three most common reversal formations that you may encounter trading different markets: 1️⃣ - Equal inside bar formation Once the price reaches some important pivot point quite often it tends to form a weak candle with a long rejection wick (long...
1. Not having a trading plan: A trading plan is a set of rules that outlines a trader's entry and exit points, risk management strategy, and overall trading approach. Without a plan, traders are more likely to make emotional and impulsive decisions. 2. Not managing risk properly: Risk management is crucial in trading, as it helps to limit potential losses and...
Break of structure (BOS) is a very important component in the smart money concept in that it allows traders to identify the continuation of an asset price in a certain direction either uptrend or downtrend. A break of structure (BOS) can be described as a new higher high break above the previous swing lower high, a new higher break above the previous swing higher...
Criteria for a dead crossover is that the short term moving average crosses below a longer term moving average while both are pointing lower. Criteria for a golden crossover happen when a shorter term moving average crosses above a longer term moving average while both are turning higher IN this example I have used a 55 and 200 day simple moving...
Even with the right markets, time frames, systems, rules and ideas… Trading is just not playing out you the way you thought it would. It’s not growing your portfolio at the rate you wished… It’s taking forever to get right… It’s overwhelming and you don’t know which strategy to choose… From my experience this is because of one reason. You’re not treating...