Get started

Chart Patterns

Understanding Trends and Waves in TradingIntroduction In trading education, recognising price movements is crucial. Prices move in trends, and these trends move in waves. Understanding these waves is essential for successful trading. The Two Types of Waves Impulsive/Primary Trend Comprises a minimum of five waves. Dictates the overall direction of price movement. Corrective/Secondary Trend Comprises a maximum of three waves. Provides insights into the ongoing trend. This phase is the most critical for traders to master. Conclusion To trade successfully in a trending market, it’s vital to learn how to accurately count waves. Mastering this skill can significantly enhance your trading decisions. Best wishes for your trading success!
Education
by Charts247TradingAcademy
5
Real Success Rates of the "Rising Wedge" in TradingReal Success Rates of the "Rising Wedge" in Trading Introduction The rising wedge, also known as the "rising wedge" in English, is a chart pattern that has a remarkable success rate in trading. This analysis details its performance, reliability and complementary indicators to optimize its use. Success Rate and Performance -Key Statistics Overall success rate: 81% in bull markets Average potential profit: 38% in an existing uptrend -Breakout Direction Bearish: 60% of cases Bullish: 40% of cases Contextual Reliability Bull market: 81% success, average gain of 38% After a downtrend: 51% success, average decline of 9% Important Considerations The rising wedge is generally a bearish pattern, indicating a potential reversal. Reliability increases with the duration of the pattern formation. Confirmation of the breakout by other indicators, especially volume, is crucial. Complementary Indicators -Volume Gradual decrease during formation Significant increase during breakout -Oscillators RSI (Relative Strength Index): Identifies overbought/oversold conditions Stochastics: Detects price/indicator divergences -Moving Averages Crossovers: Signal trend changes -Dynamic Support/Resistance: Confirm the validity of the wedge -Momentum Indicators MACD: Identifies price/indicator divergences Momentum: Assesses the exhaustion of the trend -Other Elements Fibonacci Levels: Identify potential support/resistance Japanese Candlestick Analysis: Provides indications of reversals Conclusion The rising wedge is a powerful tool for traders, offering a high success rate and significant profit potential. The combined use of complementary indicators increases the reliability of the signal and improves the accuracy of trading decisions. It is essential to look for a convergence of signals from multiple sources to minimize false signals and optimize trading performance. _______________________________________________ Here are the best times to enter a trade after a rising wedge, in a professional manner: -The confirmed breakout Wait for the candle to close below the support line of the wedge. Look for a significant increase in volume during the breakout to confirm its validity. -The retest Look for a pullback on the broken support line, which has become resistance. Enter when the price rebounds downward on this new resistance, confirming the downtrend. -The post-breakout consolidation Identify the formation of a flag or pennant after the initial breakout. Enter when this mini-formation breaks in the direction of the main downtrend. -The confirmed divergences Spot bearish divergences on oscillators such as the RSI or the MACD. Enter when price confirms divergence by breaking a nearby support. -Timing with Japanese Candlesticks Identify bearish formations such as the Evening Star, Bearish Harami, or Dark Cloud. Enter as soon as the next candle confirms the bearish pattern. -Important Considerations Always place a stop-loss to manage risk effectively. Be patient and wait for the setup to be confirmed before entering the trade Check the trend on higher timeframes to ensure the consistency of the trade. Integrate the analysis of the rising wedge with other technical indicators to improve the quality of decisions. By following these recommendations, traders can optimize their entries on rising wedges while minimizing the risk of false signals.
BINANCE:BTCUSDEducation
by Le-Loup-de-Zurich
Silver Anatomy: Elliot Wave Insights PT IIGreetings, Everyone In part two of our silver update, I will dive into the structures of Elliott Wave Theory, focusing on Impulse Waves and Corrective Waves. Let’s break down these components for a deeper understanding. Understanding the Types of Waves Impulse Waves (1-3-5) Impulse waves are powerful, directional moves characterized by strong momentum. These waves typically occur in the direction of the main trend, with Wave 3 often being the most dominant. Corrective Waves (2-4) Corrective waves are pauses or pullbacks in the trend, often seen as sideways price action. They take forms such as: • Flat Patterns • Triangles • Zigzags (a sharp, back-and-forth movement). Using RSI to Analyze Waves The RSI provides valuable insight into wave structures: • Vertical lines mark the RSI peaks corresponding to major impulse waves. • Colored boxes on the RSI panel highlight key areas to watch. Key Impulse Wave Rules • Wave 1: Marks the beginning of the trend reversal, confirmed by the RSI breaking above the zero line and the histogram turning green. • Wave 3: Typically the strongest and longest wave in the sequence. Key Corrective Wave Rules • Wave 2: Does not retrace 100% of Wave 1. In this case, note how the RSI dips below the previous impulse level. An expanded flat pattern with a large B-wave exceeding the prior impulse is also evident. • Wave 4: Should not close below the level of Wave 1. Rule of Alternation • If Wave 2 is simple (small), then Wave 4 will likely be complex (large), and vice versa. Support and Resistance Dynamics Observe the green boxes in the price chart marking major pivot points, which often signal the end of corrective waves. These pivots align with critical support and resistance levels, frequently igniting substantial rallies thereafter. Analyzing Bias & Executing Trading Probability In my enthusiasm, I anticipated a significant breakout (bias) at the triangle peak of Wave 5, as outlined in my second silver trading post. I had drawn a triangle breakout expecting an upward move. While my bias led me to the wrong conclusion, my analysis itself wasn’t incorrect—the triangle did break out, but it moved to the downside instead against by bias. As previously mentioned, when a pattern fails, it often leads to dramatic price action in the opposite direction. For those who stayed objective and followed the chart rather than their bias, this presented a prime opportunity. The downside breakout retraced the entire impulse cycle in a remarkably short period of time, showcasing the power of trading without assumptions. It leads to question how can we stay objective while in these trades? The answer I found is to always be referencing key manual & guides. Fibonacci Applications for Traders by Robert Fischer provides a valuable solution to the dilemma I encountered (not sponsored or paid, by the way). In one section, Fischer mentions that “following the Elliott wave concept will lead you to not buy in an uptrend at the end of Wave 3.” To elaborated more on this idea — it is best to avoid buying wave 4s because Wave 5 is sometimes truncated or fails to materialize altogether, leading to a price reversal. This insight answers many questions about why wave 5 is so difficult to trade. Will it extend, will it be shorter? Will it be a .618 measurement of wave 1, 1 exact measurement of wave 1, will it extend to 1.618, or will it fail? One key rule he emphasizes is that, in an Elliott Wave cycle, only three waves may exist under certain conditions—challenging the assumption of a full five-wave sequence. Trading Strategy Improvements 1. Enter at Wave 2 Retracement Levels • Focus on taking a large position at Wave 2 retracement levels, but only after confirmation of a reversal. (Human tendency): We often experience FOMO when prices are high. However, history shows that chasing during high-FOMO moments usually signals a peak. Patience pays off at retracement levels. 2. Pyramid Positions During Wave 3 • Gradually scale aggressively into your position as Wave 3 begins moving with strong momentum. This allows you to capitalize on the high-octane movement of the impulse wave by adding to a winning trade. 3. Exit Around Wave 3.3 or 3.5 • Scale out of your position during the middle or later part of Wave 3. Exiting while the momentum remains strong ensures you lock in gains before the trend begins to fade. Conclusion By combining Elliott Wave Theory with RSI analysis, we gain clearer insight into market dynamics, helping us anticipate potential turning points with greater confidence.
FX:XAGUSDEducation
by Clemard
2
The Anatomy of a Downtrend: A case study of silver XAGUSDTopic 1: Downtrend analysis Introduction: This post serves two purposes: to educate readers and to act as a personal reference tool for future analysis. We’ll be reviewing recent price action in Silver (XAGUSD) , offering valuable insights that apply not just to commodities but also to equities. This sequence of events, while varying in scale, repeats itself across all time frames—daily, monthly, yearly. As a rule, the higher the time frame, the greater the potential returns. Rant We don’t need a million strategies. We don’t need overpriced guru courses claiming to deliver “10,000% gainers” (cue eye roll). What we need is a solid understanding of market behavior and the tools to make informed decisions. Preface Due to charting limitations, I’ve compressed the information here. Additional research may be necessary for a full understanding. This analysis incorporates: • Classical Chart Patterns (Part 1) • Elliott Wave Theory (Part 2) • Support & Resistance Levels (Blended) Getting Started: Understanding Trend Reversal Silver Price Peak Notice the rejection at $34.86 red circle on October 24. Silver spiralled lower, first to $33.08, briefly rebounded to $34.58, but lost momentum and rolled over again big purple circle. Reversal Peak Draw a trendline from $34.5 down to $30.615, connecting as many wicks as possible. Pay attention to the price swings during this dramatic decline. Downtrend Sequence Silver followed this classic pattern of lower highs and lower lows: 1. Swing Low 2. Lower High 3. Lower Low 4. Lower High 5. Lower Low Tip: Identifying Swing Extremes Use your drawing tool to circle ⭕️ or draw a square ⬛️the major swing points—areas where price reacted most sharply or moved the furthest before reversing. These are key reference points for understanding market structure. Potential Reversal Price broke out of its down trend and subsequently broke over its (lowest high) last purple swing point. At this point price formed a new high green circle 🟢 however a (higher lower) has not yet been confirmed on the higher time frame. In the next post, I’ll dive into the lower time frames, focusing on Elliott Wave Theory and key observations since the trendline break. If you found this analysis helpful, please leave a like and share your thoughts in the comments—thank you!
FX:XAGUSDEducation
by Clemard
4
Finding Ranging Market Before Happening! Part 3Question: I'm having a problem with finding the MC candle. What should I do? Answer: There are 3 distinct signs for us to know for a fact that we are in a ranging market which has been started from shaping an MC candle: 1. Inability for the price to make a new stBoS (seeing wBoS or no BoS at all). 2. For the second time, seeing a cycle of Pump&Dump happening. 3. Price cross and close both EMAs in the opposite direction of the previous minor trend. Whenever we observe any of these three signs, it indicates that we are already in a ranging market. We should look to the left to identify our MC candle, which is usually the very first Pump & Dump that occurred recently. For Ethereum to continue its uptrend, the Pump & Dump cycle must end. The price should not drop again in the ranging area.
COINBASE:ETHUSDEducation
by forexise
Silver Bullet Strategy EURUSD USDCAD AUDUSD | 26/11/2024Yesterday served as a classic example of the importance of risk management in every trader's system. We initiated three trades across three different currency pairs (EURUSD, GBPUSD, USDCAD) and plan to provide a detailed breakdown of each trade, including the outcomes. We began scouting for potential setups that matched our entry criteria at 10:00 EST. By 10:30 EST, a FVG had developed on GBPUSD, indicating potential selling opportunities during this trading session. All that remained was to wait for a retracement into the created FVG to secure an entry point for the trade The subsequent five-minute candle entered the Fair Value Gap (FVG) on GBPUSD, indicating that we could execute our trade upon its closure. Simultaneously, we were exploring additional trading opportunities across various currency pairs. It was then that we observed the emergence of a FVG on USDCAD, necessitating a wait for a retracement into the FVG before executing a trade. We executed the trade on GBPUSD while awaiting confirmation to enter the USDCAD position. The USDCAD setup provided an entry confirmation, indicating that we would have two trades active during this session. Additionally, the session was still ongoing when we observed that another EURUSD setup was approaching the fulfillment of our entry criteria. Immediately after initiating the trades on GBPUSD and USDCAD, we observed a significant drawdown on both. This was due to a large bearish marubozu candle printing on the USDCAD, while the GBPUSD experienced two successive bullish candles, casting both positions in an unfavorable light. While all this was happening the setup on EURUSD had fulfilled all the requirements on our checklist so we had to execute that trade as well. Our USDCAD position hit the stop loss, and shortly after, our GBPUSD position also reached the stop loss, resulting in a 2% reduction of our trading account for the day. This leaves us with just one active position on EURUSD. Being in such a position wouldn't be easy to bare if we hadn't managed risk properly. We entered these trades risking only 1% per trade and had already accepted the potential outcomes, which greatly diminished any emotional attachment to these trades. With that in mind, the EURUSD position began moving in our desired direction, which was a considerable relief after two out of three trades had reached the stop-loss point We patiently waited, and this time our patience paid off when our EURUSD position hit the take profit (TP) for a 2% gain. Thus, for the day, we experienced two losses and a win, but with effective risk management, our win offset both losses, and we broke even for the day. Do you see the importance of ensuring your wins outweigh your losses? We experienced just one win and two losses, yet our single win was more significant that it offset all the losses we had for the day
Education
by CleoFinance
5
Using Bollinger Bands to Gauge Market Trends and Volatility The US Thanksgiving holiday usually marks a quieter period for trading, as US financial markets are closed on Thursday and US traders often take the Friday off as a holiday to benefit from a long weekend. This can see both lower volume and volatility, so we thought we’d take this time to outline one of our favourite technical indicators, called Bollinger Bands. The aim is to increase your knowledge of a new indicator you may consider worth knowing, ahead of the first week of December, which is packed full of important events that may kick start markets moving again into the end of 2024. We intend to highlight how Bollinger Bands can potentially be applied to help read both current trending and volatility conditions for any asset. To help with this, we are using the US 500 index as an example to outline the type of band set-ups you can consider using within your day-to-day analysis and trading. What are Bollinger Bands? Bollinger bands are made of 3 lines – the mid-average, upper and lower band (see chart above). The mid-average is a 20 period moving average, with the upper and lower bands calculated using 2 standard deviations either side of the mid-average. If you are unsure of the concept or how to calculate 2 standard deviations, please don’t worry, the Pepperstone charting system will do this automatically for you and add them to the chart of any asset you may wish to analyse. The mid-average is used to reflect the direction of the on-going trending condition of a market. If its rising, an uptrend is in place, while if it’s falling, a downtrend is evident. How the bands act in relation to the mid-average is key when using Bollinger bands. They can often offer important confirmation of the trend and can show if acceleration phases in the price of a particular asset may be seen within that trend. The most important thing to know about Bollinger bands is that they react to increasing volatility within price. Periods of increasing volatility see both bands widening away from the mid-average, while if volatility is decreasing, they contract or draw closer to the mid-average. Let’s look at this further. What Set-Ups are We Looking For and What Do They Mean? There are 5 set-ups to be aware of when using Bollinger bands and each offer clues to the next activity in the price of a particular asset. 1st: Volatility Increasing Within a Confirmed Trend: When the mid-average is either rising (to highlight an uptrend) or falling (to reflect a downtrend), and the bands are widening to show increasing volatility within that trend, alongside the upper band being touched in an uptrend, or within a downtrend, the lower band being touched. When all the above conditions are evident, the potential is for that move to extend further than perhaps anticipated. On the US 500 Index chart above, the green arrows mark when these more aggressive trending conditions are in place. 2nd: Volatility Decreasing Within a Confirmed Trend: Where the mid-average is either rising (uptrend) or falling (downtrend), and the bands are contracting reflecting decreasing volatility within that trend. When these set-ups are in place, the speed of the recent directional move is slowing, and the possibilities are increasing for a consolidation in price. During this period, we may want to consider reducing or closing positions and reverting to the side lines, as a setback could materialise, as a reaction to the latest move. On the chart above, red arrows mark these consolidation periods. 3rd: Mid-Average Support/Resistance Holds Within Corrective Moves: Within these corrective or recovery phases after periods of increasing volatility and widening bands, we must watch how the mid-average support or resistance is defended. If the mid-average is rising, highlighting an uptrend and holding price weakness, it may resume the direction of the original trend. Similarly, when the mid-average is falling, highlighting a downtrend and holding price strength, it may continue in the same direction. However, past trends and technical indicators are not reliable predictors of future performance, and market conditions can change unexpectedly. On the new chart above, these points are marked by the blue vertical arrows. 4th: Trend Channels Form Between Mid-Average and Upper/Lower Band: When the rising mid-average holds as suggested in the third set-up above, this can see uptrend or downtrend channels form in price. In an uptrend, the rising mid-average holds price weakness and turns it higher. While this still sees price strength, volatility doesn’t increase but remains steady, reflected by rising parallel bands and support continues to be found by the rising mid-average. However, resistance materialises following tests of the upper band, for a setback towards the support of the still rising mid-average. This pattern ends if the price of the asset breaks below the support offered by the rising mid-average. On the latest chart above, this is marked by the purple arrows. When the declining mid-average holds price strength, as suggested in the 3rd set-up above, this can see a downtrend channel form in price. In a downtrend, the declining mid-average holds price strength and turns it back lower. While this scenario still sees price weakness, volatility remains steady and doesn’t increase, reflected by the declining bands being parallel, and resistance continues to be found by the falling mid-average. However, tests of the lower band see support materialise and a rally in price ensues towards resistance marked by the still falling mid-average. This pattern ends if the price of the asset breaks above resistance offered by the falling mid-average. This situation is the opposite of the chart above. 5th: Mid-Average Broken to See More Extended Rally/Sell-Off: Mid-average support or resistance gives way, but while price weakness or strength develops, the direction of the average doesn’t change. This sees a limited move in the direction of the mid-average break. During price weakness, if the mid-average continues to rise, the lower band can act as a support level and prompt a rally. During price strength, if the mid-average continues to fall, the upper band acts as a resistance level from which price weakness can emerge again. These signals are marked by the green rectangles in the chart above. It is important to note in this example, if an upper or lower bands is touched and then both bands start to widen alongside the mid-average changing direction, then this is highlighting the 1st set up described above, meaning we are observing increasing volatility within what is a new trending condition. In this situation, we may need to consider adjusting our trading strategy to reflect this new directional shift in price. Conclusion: While past signals within Bollinger Bands are not a guarantee of future signals, by utilising the set-ups described above, they may offer an indication of the latest trending conditions in the price of a particular asset. More importantly, they help to highlight when increasing volatility is materialising and when more sustained price moves are possibly on the cards, in the direction of the on-going trend. Also, they show when decreasing volatility can result in a period of consolidation and a reaction to the recent move due. Take a look at the Pepperstone charting system and consider whether Bollinger Bands may help you establish the next directional moves for the asset you’re trading. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
PEPPERSTONE:US500Education
by Pepperstone
7
How TradingView Helps Me Not Miss TradesHey, In this video I provide several examples that help me to not miss any trading opportunities and provide me more clarity and confidence in my trading. I share my trading style, the usage of tradingview alerts and multi-timeframe analysis to time it right. Often traders struggle with missing trades, this is why you might miss them: - Lack of confidence - Lack of chart time - Lack of knowledge If you solve them one by one, your trading performance can improve fast. Kind regards, Max Nieveld
Education
by newcapitalfx
DECEMBER ALTCOIN ANALYSIS REQUESTHello everyone, We’re excited to announce that the ALTCOIN ANALYSIS REQUESTS for December 2024 are officially open! Submission Deadline: December 1st, 2024. To maintain precision and efficiency in our analysis, we ask each member to submit only one (1) Altcoin request. Guidelines for Submissions: Use proper formats like ETHBTC, ETHUSDT, or ETHUSD. Include the exchange name where the coin is listed. Please note: We’ll be analyzing a maximum of 30 Altcoins based on the requests we receive. Let’s work together to identify market opportunities and make informed decisions. For reference, check out the links to our prior analysis sessions: #January: #February: #March #April #May #June #July #August #September #October #November We deeply value your ongoing support—please take a moment to review past analyses, share your thoughts, and hit the like button to show your appreciation! Thank you all for being part of this journey. Rest assured, we’re committed to delivering top-quality insights every time. Best regards, WESLAD
Education
by weslad
154
Finding Ranging Market Before Happening! Part 2This is how we see the market. Only in three places can we see a minor trend. All in between is just price consolidation because it is a ranging market. And we expect it to happen after spotting candle "X"! For more information, please refer to Part One . When we spot a Master Candle (MC), We expect erratic behaviour from the price. Look at the white arrows to grasp what I mean by this. This is normal for us in ARZ Trading System analyses! In fact, in a ranging market, we are looking for the price to behave like this to combine it with BB and hunt the best reversal trading positions. If the price managed to stay above LTP & EMAs, we expect this pump and dump cycle to continue in the range area.
Education
by forexise
US Markets Defy Tradition: Stocks and Bonds Rise Together◉ Introduction The relationship between bond yields and stock prices is crucial in understanding financial markets. Generally, bond yields and stock prices exhibit an inverse relationship, meaning that as bond yields rise, stock prices tend to fall, and vice versa. This dynamic is influenced by several factors, including opportunity costs, corporate financing costs, investor behaviour, and economic conditions. ◉ Opportunity Cost of Investing in Equities ● Definition: Bond yields represent the return on fixed-income investments. When bond yields increase, they provide a benchmark for what investors expect from equities. ● Impact: Higher bond yields make stocks less attractive unless they can offer significantly higher returns. ● Example: If a 10-year government bond yields 7%, investors may require at least a 12% return from stocks (including a risk premium of around 5%) to justify the additional risk. If expected stock returns fall below this level, investors may shift their capital from stocks to bonds, leading to a decline in stock prices. ◉ Corporate Financing Costs ● Definition: Rising bond yields increase the cost of borrowing for companies. ● Impact: Higher interest expenses can reduce corporate profits and cash flow, leading to lower stock valuations. ● Example: If a company’s debt interest rises from 5% to 8%, its net income may decrease significantly due to higher interest payments. This can prompt investors to reassess the company’s stock value negatively. ◉ Investor Behaviour and Market Dynamics ● Definition: Investor sentiment plays a significant role in the bond-stock relationship. ● Impact: When bond yields rise, many investors may sell stocks in favour of bonds, seeking safer returns. ● Example: During periods of economic uncertainty, such as the COVID-19 pandemic in early 2020, rising bond yields led many investors to move capital into bonds, resulting in significant declines in stock indices like the S&P 500. ◉ Economic Conditions and Inflation Expectations ● Definition: Bond yields are influenced by inflation expectations and overall economic growth. ● Impact: Rising inflation typically leads to higher bond yields, which can negatively impact stock prices as investors anticipate reduced future earnings. ● Example: Following the 2008 financial crisis, low inflation kept bond yields down, supporting rising stock prices as investors sought higher returns from equities amid low yields on bonds. ◉ Historical Context and Trends ● Definition: Historically, lower bond yields correlate with higher stock prices due to lower discount rates on future cash flows. ● Impact: Low borrowing costs encourage corporate investment and growth. ● Example: The bull market from 2009 to 2020 was fueled by persistently low Treasury yields, allowing companies to borrow cheaply and reinvest in growth initiatives. ◉ The Role of Defaults in Bond Yields ● Definition: The probability of default significantly influences bond yields. ● Impact: Increased default risk leads to higher required yields on corporate bonds, prompting a flight to safer government bonds. ● Example: During the 2008 financial crisis, rising default expectations for many companies resulted in corporate bonds offering higher yields as investors sought safety in government securities. ◉ Recent Market Trends: A Post-Election Analysis The recent market trends following Donald Trump's election as President of the United States have been quite remarkable. Typically, when equity prices rise, bond yields fall, and vice versa. However, over the last month, both equity prices and bond yields have increased simultaneously. This unusual phenomenon can be attributed to investor expectations of Trump's economic policies. The equity market has experienced a significant surge, with major indices like the S&P 500 and the Dow Jones Industrial Average reaching new highs. This rally is largely driven by expectations of: ● Corporate Tax Reductions: Expected to boost corporate earnings and drive economic growth. ● Infrastructure Spending: Anticipated to create new job opportunities and stimulate economic activity. ● Deregulation: Expected to reduce compliance costs and promote business growth. On the other hand, the bond market has experienced a significant rise in yields, driven by investor expectations of higher inflation and higher interest rates. This is largely due to Trump's economic policies, which are expected to lead to higher borrowing costs due to unchanged or higher interest rates, causing bond prices to decline and yields to rise. ◉ Conclusion The recent rise in bond yields and stock prices marks a significant change from past trends. This shift shows how economic policy, investor feelings, and market forces interact, emphasizing the constantly changing nature of global financial markets.
SP:SPXEducation
by NaranjCapital
How To Use Multi-Timeframe AnalysisHey, In this video, I dive into the methods of multi-timeframe analysis, exploring how to use daily, weekly, and monthly charts alongside intraday charts like the 4-hour to gain a clearer picture of price movement. Multi-timeframe analysis helps you view the same data through different lenses, allowing you to make predictions across various time horizons. For example, a weekly trend or a monthly move can appear as a complete trend on lower timeframes. By integrating these perspectives, you can better understand what price action is indicating and make informed decisions. Kind regards, Max
Education
by newcapitalfx
Minor Structure + Momentum: Part TwoIn this section, we will combine minor structure and momentum, along with MC and Bollinger Bands. We observed an uptrend, and then suddenly Candle "A" appeared. This indicates that the previous candle is a strong candidate for becoming an MC for us. Now, we need to analyze the market for signs that it may be transitioning into a ranging market. As we see: - Price movement from #1 to #2, is the same as #2 to #3. No momentum in a specific direction which is a clear sign of a ranging market. It confirmed MC for us. - The movement from #3 to #4 has just reversed the previous bearish candle. Nothing much. Again we are inside a ranging market. - Movement from #4 to #5 is equal to #5 to #6. Again it's ranging! Awesome! - Candle #7 is good for ranging, and we expect such sharp movements in a ranging market. But we do not expect a continuation of strong downward movement after it. If such a thing happens and could break both the low of candle #7 and the LTP level, we expect the price to continue a downtrend and create a stBoS downward in the future.
Education
by forexise
The Basics of Supply and Demand and Master Pattern TradingOk y'all, this is my first video attempt to explain the basics of how I trade. I've had lots of people ask me how it works, so figured it be easiest to make a quick video tutorial. With every trading/investing video comes a Disclaimer: This is for educational use ONLY and is not investment advice! Lol. I've learned that part of getting better at anything involves teaching others what you know in order to resell yourself on your craft. Keep in mind I am by no means a master of this. I've been a student of the game for a decade now and learning never stops. Have a great day!
COINBASE:BTCUSDEducation
by tiger_blah
3
Minor Structure + Momentum: Part OneWhen analyzing momentum, the most important question to consider is: Where should I focus my analysis of momentum? Many traders often find themselves confused by the concept of "momentum" as they try to derive meaning from every single candlestick movement. The straightforward answer is: Analyze momentum when the price is at key levels or is getting close to them! In particular, for minor structures (trends), you should pay close attention to momentum near the 13 and 20 EMAs, as we do in ARZ Trading System. Keynotes: a minor trend is still valid, if these two key points are continuously happening: 1. We always expect a loss of momentum for price when approaching the key levels, and gaining momentum when it's moving away from them, in the direction of the trend. 2. A very important sign of gaining momentum is crossing and closing the whole previous candle(s). Let's analyze this chart: - It is obvious that candles #1 to #3 are showing a loss of momentum, but they are far from key levels and it just might mean a retracement, which happened. But again it might not retrace at all! - from #3 to #4, we see price is gaining momentum, which is not good! so both key levels could easily break, which happened. But again in #5 and #6, we see the price losing momentum in the opposite direction of the previous downtrend, and gaining it in the direction of the minor downtrend. so everything is good. - Again #7 confirms the momentum in the direction of minor downtrend. - In retracement up until #8, the price is gaining momentum upward, which is not good. But candles #9 through #10 again are in our favour. - the correction to #11 is not looking good for a downtrend, and in the next candles, to #13 we are not convinced that sellers are stronger. So, we are cautious here. And the price finally gains momentum upward and we reach #14. - From #15 to #16, momentum is the same for both buyers and sellers. It is a tight range and can do nothing until we see a clear sign of gaining momentum (or losing) in one direction. And the sign came in the shape of candle #17. If this tight range were to continue, it should have been a bullish strong candle.
OANDA:XAGUSDEducation
by forexise
How the Head and Shoulders Pattern Alerts the End of a Trend🔵 How the Head and Shoulders Pattern Alerts the End of a Trend NSE:NIFTY formed a Head and shoulders pattern this summer. This is one of the most important patterns when it happens after a long bull or bear trend because a trend change or at least a large neutral period is likely to happen. The pattern is often poorly drawn, and investors make bad decisions due to a lack of knowledge about Head and Shoulders patterns. At TopChartPatterns, we let an AI to find the patterns, so we just need to decide where and when to trade the pattern. ✅ When is a Head and Shoulders pattern confirmed? A head and shoulders MUST never be traded before the support line (blue) is broken . If the line is not broken, there is NO head and shoulders unfolding. Once the price breaks below the blue support line, a short trade with tight stop losses should be initiated. 💰 How to trade this chart pattern? You should short the underlying as soon as the blue support line is broken, with a tight stop loss above the support line. Translated to money: 1. Use tight stop loss around 1-2% 2. Use a take profits as large as the pattern, 6% in the NIFTY example. The returns are 3 to4 times the risk, so enjoy the journey while risking such a small percentage. 🛡️ The risk management strategy As we have done in so many previous ideas, remember you can split the position in 2. 50% of the position in a take profits as large as your stop loss (adapt SL and this 1st TP to local supports/resistance levels) 50% of the position to a price as large as the previous pattern or even around 1,5 times the pattern. (target 3 in the chart). The second TP is less likely to happen, but as soon as the first one has been reached (extremely high probability), this becomes a risk-free trade. ✴️ BUT… Where can I profit from this pattern NOW? There are head and shoulders patterns forming in: OANDA:EURJPY NASDAQ:MSFT
NSE:NIFTYEducation
by TopChartPatterns
Timeframes and Correlations in Multi-Asset Markets1. Introduction Understanding correlations across timeframes is essential for traders and investors managing diverse portfolios. Correlations measure how closely the price movements of two assets align, revealing valuable insights into market relationships. However, these relationships often vary based on the timeframe analyzed, with daily, weekly, and monthly perspectives capturing unique dynamics. This article delves into how correlations evolve across timeframes, explores their underlying drivers, and examines real-world examples involving multi-asset instruments such as equities, bonds, commodities, and cryptocurrencies. By focusing on these key timeframes, traders can identify meaningful trends, manage risks, and make better-informed decisions. 2. Timeframe Aggregation Effect Correlations vary significantly depending on the aggregation level of data: Daily Timeframe: Reflects short-term price movements dominated by noise and intraday volatility. Daily correlations often show weaker relationships as asset prices react to idiosyncratic or local factors. Weekly Timeframe: Aggregates daily movements, smoothing out noise and capturing medium-term relationships. Correlations tend to increase as patterns emerge over several days. Monthly Timeframe: Represents long-term trends influenced by macroeconomic factors, smoothing out daily and weekly fluctuations. At this level, correlations reflect systemic relationships driven by broader forces like interest rates, inflation, or global risk sentiment. Example: The correlation between ES (S&P 500 Futures) and BTC (Bitcoin Futures) may appear weak on a daily timeframe due to high BTC volatility. However, their monthly correlation might strengthen, aligning during broader risk-on periods fueled by Federal Reserve easing cycles. 3. Smoothing of Volatility Across Timeframes Shorter timeframes tend to exhibit lower correlations due to the dominance of short-term volatility and market noise. These random fluctuations often obscure deeper, more structural relationships. As the timeframe extends, volatility smooths out, revealing clearer correlations between assets. Example: ZN (10-Year Treasuries) and GC (Gold Futures) exhibit a weaker correlation on a daily basis because they react differently to intraday events. However, over monthly timeframes, their correlation strengthens due to shared drivers like inflation expectations and central bank policies. By aggregating data over weeks or months, traders can focus on meaningful relationships rather than being misled by short-term market randomness. 4. Market Dynamics at Different Frequencies Market drivers vary depending on the asset type and the timeframe analyzed. While short-term correlations often reflect immediate market reactions, longer-term correlations align with broader economic forces: Equities (ES - S&P 500 Futures): Correlations with other assets are driven by growth expectations, earnings reports, and investor sentiment. These factors fluctuate daily but align more strongly with macroeconomic trends over longer timeframes. Cryptocurrencies (BTC - Bitcoin Futures): Highly speculative and volatile in the short term, BTC exhibits weak daily correlations with traditional assets. However, its monthly correlations can strengthen with risk-on/risk-off sentiment, particularly in liquidity-driven environments. Safe-Havens (ZN - Treasuries and GC - Gold Futures): On daily timeframes, these assets may respond differently to specific events. Over weeks or months, correlations align more closely due to shared reactions to systemic risk factors like interest rates or geopolitical tensions. Example: During periods of market stress, ZN and GC may show stronger weekly or monthly correlations as investors seek safe-haven assets. Conversely, daily correlations might be weak as each asset responds to its unique set of triggers. 5. Case Studies To illustrate the impact of timeframes on correlations, let’s analyze a few key asset relationships: o BTC (Bitcoin Futures) and ES (S&P 500 Futures): Daily: The correlation is typically weak (around 0.28) due to BTC’s high volatility and idiosyncratic behavior. Weekly/Monthly: During periods of broad market optimism, BTC and ES may align more closely (0.41), reflecting shared exposure to investor risk appetite. o ZN (10-Year Treasuries) and GC (Gold Futures): Daily: These assets often show weak or moderate correlation (around 0.39), depending on intraday drivers. Weekly/Monthly: An improved correlation (0.41) emerges due to their mutual role as hedges against inflation and monetary uncertainty. o 6J (Japanese Yen Futures) and ZN (10-Year Treasuries): Daily: Correlation moderate (around 0.53). Weekly/Monthly: Correlation strengthens (0.74) as both assets reflect broader safe-haven sentiment, particularly during periods of global economic uncertainty. These case studies demonstrate how timeframe selection impacts the interpretation of correlations and highlights the importance of analyzing relationships within the appropriate context. 6. Conclusion Correlations are not static; they evolve based on the timeframe and underlying market drivers. Short-term correlations often reflect noise and idiosyncratic volatility, while longer-term correlations align with structural trends and macroeconomic factors. By understanding how correlations change across daily, weekly, and monthly timeframes, traders can identify meaningful relationships and build more resilient strategies. The aggregation of timeframes also reveals diversification opportunities and risk factors that may not be apparent in shorter-term analyses. With this knowledge, market participants can better align their portfolios with prevailing market conditions, adapting their strategies to maximize performance and mitigate risk. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
COMEX:GC1!Education
by traddictiv
2
EMA, The correct way of usage - Part 4 - minor structure_2To confirm a minor trend, we need to see a Strong Break of Structure (BoS) with the body of a candle, in the direction of the trend. This means in the ARZ Trading System, shadows do not count as breakouts for confirming a trend continuation. let's elaborate on the concept: - after receiving pullback from 13&20EMA in A, the previous low has been broken strongly and made a stBoS. This confirms we are in a minor downtrend. So, from now on we are looking to go short any chance we get. - in B & C we are looking for a reason to sell. but weak BoS after will make us cautious and at #1 we are analyzing and not trading until the direction of the minor trend gets clear. - the strong bullish candle after #1 tells us we are indeed in a ranging market! Not an uptrend. Please note that: the minor uptrend should be confirmed. - in D we see buyers are weak, and at #2 it confirms that a minor uptrend is not going to happen. Now wait for a confirmation of a minor downtrend. - stBoS after E confirms we are in a minor downtrend, so we look for opportunities to sell after F, G, H, & I. - at #3 we are officially in a range again. So, we trade as a ranging market, until J tells us we have to trade downward. - a wBoS after K warns us, and we see the price reversed upward. Weak continuation downward at #4 & #5 confirms it. - the stBoS upward after #5 tells us we are in an uptrend, but a weak pullback up until 6 tells us the uptrend might be done. - Then, there is a stBoS downward after L. So, until it breaks upward and has a strong BoS in that direction, the price could continue declining. Keynote: Short-term traders must always trade in the direction of the minor trend. Unless they are to trade in a ranging market or are medium or long-term traders. Question: do we have to just use periods 13 & 20 for analyzing short-term trends? Answer: Absolutely not! It's the trader's choice only.
XEducation
by forexise
2
Prop Trading - All you need to know !!A proprietary trading firm, often abbreviated as "prop firm," is a financial institution that trades stocks, currencies, options, or other financial instruments with its own capital rather than on behalf of clients. Proprietary trading firms offer several advantages for traders who join their ranks: 1. Access to Capital: One of the most significant advantages of working with a prop firm is access to substantial capital. Prop firms typically provide traders with significant buying power, allowing them to take larger positions in the market than they could with their own funds. This access to capital enables traders to potentially earn higher profits and diversify their trading strategies. 2. Professional Support and Guidance: Many prop firms offer traders access to experienced mentors, coaches, and support staff who can provide guidance, feedback, and assistance. This professional support can be invaluable for traders looking to improve their skills, refine their trading strategies, and navigate volatile market conditions. 3. Risk Management Tools: Prop firms typically have sophisticated risk management systems and tools in place to help traders monitor and manage their exposure to market risks. These systems may include real-time risk analytics, position monitoring, and risk controls that help traders mitigate potential losses and preserve capital. 4. Profit Sharing: Some prop firms operate on a profit-sharing model, where traders receive a share of the profits generated from their trading activities. This arrangement aligns the interests of traders with those of the firm, incentivizing traders to perform well and contribute to the overall success of the firm. Overall, prop firms provide traders with access to capital, technology, support, and learning resources that can help them succeed in the competitive world of trading. By leveraging these advantages, traders can enhance their trading performance, grow their portfolios, and achieve their financial goals.
OANDA:XAUUSDEducation
by Snick3rSD
CHOCH vs BOS !!WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification !!Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD