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USDJPY: Bulls Still in Control 👋Hello everyone! What do you think about FX:USDJPY ? The pair is currently trading around 152.8, continuing to maintain a steady bullish trend. The upward momentum is strongly supported by the wide interest rate gap between the U.S. and Japan — with the U.S. dollar still benefiting from the Federal Reserve’s “higher-for-longer” stance, while the Bank of Japan (BoJ) keeps its ultra-loose monetary policy intact. From a technical perspective, after the recent breakout from the sideways range and a strong liquidity recovery, USDJPY has gained even more bullish momentum. I expect the pair to continue forming a Break of Structure (BOS) pattern. If the price holds above the current resistance zone, the next targets could be 154.0 – 155.0 in the coming sessions. What about you — how do you see the trend for USDJPY? Share your thoughts in the comments below! 💬
Long
by Kevinn_Nguyen
1
USDJPY – Yen Weakens as Japan Forms New Coalition👋Hello everyone, what are your thoughts on FX:USDJPY ? At the start of the new week, USDJPY is showing interesting movements following news that Japan’s ruling Liberal Democratic Party (LDP) and the Japan Innovation Party have agreed to form a coalition government. This development paves the way for Sanae Takaichi to become Japan’s first female Prime Minister, sparking market expectations of increased fiscal spending and a more accommodative monetary policy. From a market perspective, these expectations tend to weaken the yen, as investors anticipate low interest rates to continue and ample liquidity support from the Bank of Japan. As a result, USDJPY is likely to maintain its upward momentum, with potential for further gains if the U.S. dollar continues to be supported by higher Treasury yields and solid U.S. economic data. What about you — do you think USDJPY will keep rising or start to fall? 💬Share your thoughts in the comments below! Good luck!
Long
by Kevinn_Nguyen
18
EURJPY - Buy the gap, ride the trend!EURJPY remains overall bullish inside an ascending channel. Price is pulling back toward a support zone that coincides with the lower channel trendline—a strong confluence where I’ll look for trend-following longs. The small gap overhead adds fuel for a potential snap-back if buyers step in. I’ll wait for a bullish rejection (wick rejections, H4 bullish engulfing, or a break-retest back above the intraday lower highs) around 172.8–173.4 to enter. As long as this intersection holds, I’ll target the mid-channel first, then the upper boundary near 176.5 and 178.0–178.8. The plan is invalidated on a clean H4 close below 172.3 (under the zone and trendline), which would open a deeper correction before any new buy setup. ⚠️ Not financial advice. Do your own research and manage risk (position sizing, stops, partials). All Strategies Are Good; If Managed Properly! ~Richard Nasr
by TheSignalyst
4
GBPJPY - Strong Bullish Surge👋Hello everyone, what do you think about the trend of OANDA:GBPJPY ? The GBP/JPY pair has recently broken out of its consolidation phase, showing a strong upward momentum, primarily driven by optimistic sentiment around the UK economy and the recent weakening of the Japanese Yen. With positive economic data from the UK and upbeat comments from the Bank of Japan, the British pound is gaining momentum against the yen. From a technical perspective, the bulls are in control, clearly demonstrated by the recent breakout and the price gap seen on the chart. This area also serves as a key support level for potential pullbacks. In the near term, I expect a short-term correction within the Fibonacci range to reclaim liquidity before buyers push the target higher. What do you think about this currency pair? 💬Feel free to leave any thoughts in the comments below! Good luck!
by Kevinn_Nguyen
4
USDJPY - Strong Rise as the New Week Begins👋Hello everyone, let's dive into FX:USDJPY ! USDJPY has recently shown significant upward momentum. While the USD has faced some challenges lately, it is still outperforming the Japanese yen due to Japan's economic difficulties and lower interest rates. This fundamental driver has led to a strong push as the new week begins. On the chart, we can see that USDJPY has bounced sharply from the lower trendline area and formed a large gap. The price is now facing nearby resistance, and personally, I believe USDJPY may experience a slight pullback to fill the gap before the current trend continues. If the price holds above the trendline, I’m still betting on a breakout, with the target being the highs above the resistance zone. 💬What do you think about USDJPY? Will it continue to rise, or could a pullback occur due to USD weakness?
by Kevinn_Nguyen
10
When will Microsoft (MSFT) close its monthly gap?NASDAQ:MSFT Microsoft (MSFT) saw a 7% gap up following its earnings report in May. To fill this gap, the stock would need to drop about 28.59% from its high, or 23.33% from the current level. Historically, gaps on the monthly chart have eventually been filled, so it’s reasonable to assume that this one might be as well in the long term. However, given that MSFT is one of the top three companies by market capitalization, a decline of more than 20% would likely trigger a broader correction across the Nasdaq index. Therefore, this potential gap fill should not be seen merely as an individual stock event, but rather as part of a broader market correction scenario. Your follow and boost would mean a lot. 🚀 I am Korean and I used Google Translate.
NASDAQ:MSFTShort
by Now_Trading
Mind the Gap! The Euro's Waiting GameShadows and Gaps: The Market’s Inside Joke Euro FX Futures (6E, M6E) are doing that thing again… you know, when the chart leaves a Long Upper Shadow (LUS) on the weekly candle and basically whispers, “Don’t get too comfortable up here, bulls.” Shadows this long usually mean buyers tried to party at higher levels, but sellers crashed the event and sent everyone home early. And just to make life interesting, the daily chart left an open gap below — like an unfinished side quest in a video game. Gaps are notorious for pulling price back, sooner or later, because the market hates leaving things undone. The Setup: Simple but Sweet Here’s how the trade idea shapes up: Trigger: Wait for a break below 1.17865 (prior low). Target: 1.17475 — the “gap magnet” zone. Stop: 1.18090, based on volatility so it isn’t just a random guess. Reward-to-Risk: Around 2:1. Clean, balanced, and not too shabby. ⚠️ Quick heads-up: right under that gap sits a support zone. Translation? Don’t overstay your welcome. Get in, fill the gap, and don’t go fishing for extra ticks where a bounce might kick you out. Why This Combo Works This setup is a little like peanut butter and jelly — two different flavors that just click. Weekly chart = a big ol’ rejection shadow. Daily chart = a gap that’s basically screaming, “Fill me!” Put them together, and you’ve got multi-timeframe confluence — a fancy way of saying “both charts agree.” And when charts agree, traders pay attention. Big vs. Mini: Futures Contract Fun 6E (Euro FX Futures): Big contract, €125,000. Each tick = $6.25. Great for heavy hitters. M6E (Micro Euro FX Futures): Mini-me version, 1/10th the size. Each tick = $0.625. Perfect if you’d rather test the waters than dive headfirst. Micros make scaling in and out a breeze, and honestly, they’re underrated for learning without risking the farm. The Takeaway The Euro is caught between rejection above and a magnet below. No downside break yet, but once 1.17865 goes, the path to 1.17475 could be quick. Moral of the story? Candlestick shadows troll the highs, gaps tempt the lows, and patience is the secret sauce. Want More Depth? If you’d like to go deeper into the building blocks of trading, check out our From Mystery to Mastery trilogy, three cornerstone articles that complement this one: 🔗 🔗 🔗 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.
CME:6E1!Short
by traddictiv
Possible Pre-Skyrocket ManipulationSince every soul on this earth knows that we will see huge bull-moves with given and upcoming rate cuts + october price action, its not unlikely that we COULD manipulate even lower after the Billion Dollar liquidation move overnight. IF we do so, we would do it pretty fast and continue the displacement from the bearish head and shoulders pattern that broke the daily 50 EMA%SMA in the next few weeks. On a technical site, there is still a huge amount of liquidity on CRYPTO:ETHUSD left (around 20B$), most accumulated at around 3.450$. Strangely enough, that area matches the current ranges equilibrium, standard deviation levels of prior bearish manipulation moves, KEY SR Levels of 3400 and 3200, monthly and daily imbalances (which will get filled sooner or later), the 200D EMA and 50W EMA, AND the current htf bullish trendline and broken triangle resistance... If we hit this before mid-October, these will be free longs, and I will DCA into my position, which sits at 1.794$ currently.
CRYPTO:ETHUSD
by mats42
6
Synopsys — a sharp sell-off, risky entry and clear opportunitySynopsys plunged roughly 30–34% on 10 September 2025, wiping out a large chunk of market value after quarterly results missed expectations and guidance was cut. That kind of move often feels like a “falling knife”: attractive on paper, dangerous in practice. Price action and technical context The stock has gapped lower and left a sizeable down-gap to fill. From a technical viewpoint the setup resembles a fast, impulsive sell-off inside a broader downtrend established since the spring; price is now testing levels that were former support in April 2025. Short-term momentum indicators show oversold readings, but volatility is elevated and trend-following measures still favour the downside until a reliable base is formed. Key technical reference points to watch: Gap zone/topside resistance: around the pre-drop range near the mid-$600s. Immediate support / stop placement: just below the April 2025 lows (your stated stop). Possible gap-fill target: if the market rotates back, reclaiming the gap by January 2026 implies roughly a ~55% upside from current depressed levels (as you noted). Fundamentals and why this remains an opportunity Despite the headline shock, Synopsys’s underlying business remains high-quality: Market-leading positions in EDA tools and IP libraries. Strong, recurring revenue mix (software subscriptions and maintenance). Long secular tailwinds from AI, advanced node design and chiplet modularity. Valuation has re-rated materially after the drop — the company is no longer priced at the frothy multiples of earlier in the cycle. Analysts have revised estimates downward but many still target stock levels clustered around $600, reflecting belief in recovery by late 2025 / early 2026. Options flow and timing There is notable open interest concentration in both calls and puts around the $600 strike with expiries in December 2025 and January 2026. That concentration suggests the market expects meaningful activity/interest around that level into the winter and gives a window where a gap-fill or relief rally could materialize before January expiries. Risk management and trade plan Trade type: speculative rebound / gap-fill play, not a buy-and-forget investment. Target: gap-fill / recovery toward pre-drop levels by January 2026 — roughly +55% potential from current depressed price (per your scenario). Stop: just below April 2025 lows (limits downside if the downtrend resumes). Position sizing: small relative to portfolio — treat as a high-volatility, event-driven trade. Alternatives: consider defined-risk option structures (e.g., debit spreads) to cap downside while retaining upside exposure to a gap fill. Catalysts to monitor Any updates to guidance or profitability from Synopsys management. China demand/FX developments and IP licensing commentary. Options positioning into December 2025 / January 2026 expiries. Broader semiconductor capital spending and AI-related design win announcements. Technical indicators to watch 200DMA and April lows (support/resistance anchors). RSI(14) and MACD for bullish divergence and momentum confirmation. Volume on any recovery day — strong volume on up days increases odds of a sustained bounce. Bottom line This is a high-risk, high-reward setup: a classic “ falling knife ” that can be dangerous if you’re early, but presents a credible opportunity because Synopsys’s fundamentals remain solid, valuation is more attractive, and market positioning (options interest near $600) favors a potential recovery window through January 2026. Use tight risk controls (stop under April lows) and consider defined-risk option plays if you prefer limited downside.
NASDAQ:SNPSLong
by dPEngineering
CISCO: bearish pattern foundCisco (CSCO) Forecast: Double gap pattern spotted for Cisco (CSCO), with expectations for the price to decline to the $64-$65 range in the next days. Confirmation This forecast is supported by my script, "Volatility Bars". Additional Insights I expect that the price will retest support area $64-$65 before initiating a new bullish trend. Keep an eye on market conditions and any news that may impact Cisco's performance. Trading Ideas Short Position: Entry: Current market price Take Profit (TP): Set at 5%-6% below the current price. Long Position: Entry: Wait for a retracement to the $64-$65 area to buy. Feel free to share your thoughts or any additional insights!
VANTAGE:CISCO
by dPEngineering
GAP Earnings Jackpot? 75% Bullish Call Setup Into AMC! # 🚀 GAP Earnings Play (8/28 AMC) 🚀 💰 **Bullish Call Setup – 75% Conviction** 💰 ### 🔥 Thesis * 📈 4 straight EPS beats (avg +29% surprise) * 💵 Strong margins & \$2.2B cash cushion * 🔮 Technicals bullish → Price \$22.30 > 20/50/200 MA * 📊 Options flow: heavy \$23C OI, hedging on \$20P (bullish skew) * 🌎 Low VIX (14.9) supports directional move **Conviction: 75% (Moderate Bullish)** 🎯 --- ### 🎯 Trade Setup * **Ticker**: \ NYSE:GAP * **Direction**: CALL * **Strike**: \$23.00 * **Expiry**: 2025-08-29 * **Entry Price**: \$0.61 (ASK) * **Entry Timing**: Pre-earnings close (8/28 AMC) * **Size**: 1 contract (risk \$61) --- ### 📏 Risk / Reward Plan * 🛑 **Stop Loss**: \$0.30 (-50%) * 🎯 **Profit Target**: \$1.83 (200%) → \$122 profit per contract * ⚡️ **Breakeven**: \$23.61 (+5.9% move) * ⏰ **Exit Rule**: Within 2 hrs post-earnings open OR hit target/stop --- ### 📌 Scenarios ✅ **Bull Case**: EPS beat + guide up → Gap to \$24.5–25.5 → Calls \$1.83–\$2.40 (200–300%) ➖ **Base Case**: Inline → stock \$21–23 → IV crush → stop \$0.30 ❌ **Bear Case**: Miss → stock <\$21 → calls near 0 --- ### 🤝 Model Consensus * Claude: \$22C @0.99 ✅ * Gemini: \$23C @0.61 ✅ * Llama: \$23C @0.61 ✅ * Grok: \$22C @0.97 ✅ 📊 **All bullish (72–78%)** → Only debate = strike (\$22 vs \$23) --- 🚦 **Final Call**: 👉 BUY \ NYSE:GAP 8/29 \$23C @0.61 BEFORE 8/28 CLOSE ⚡️ Quick exit post-print to dodge IV crush --- \#️⃣ Hashtags: \#EarningsPlay #OptionsTrading #GAP #CallOptions #TradingSetup #StockMarket 🚀📊
NYSE:GAPLong
by quantsignals
Uptrend resuming SHIN ZU SHING CO TWSE:3376 is looking at a resumption of the uptrend after price action indicates a strong bullish after breaking above the bullish flag and it has successfully cleared above the bearish gap zone which occurs on 10 Apr 25. We believe further upside is likely to continue as long-term MACD’s histogram and its signal/MACD line has returned to the upside. Stochastic has risen steadily. Volume is also in a healthy position. Short-term target is at 282.50 while long-term target is at 345.00. Support to accumulate on pullback is at 209.20.
TWSE:3376Long
by William-trading
EURNZD: Bullish Confluence Aligns for Buy Setups at Key ArraysGreetings Traders, In today’s analysis of EURNZD, we identify that the current institutional order flow is bullish. With this bias in mind, we aim to capitalize on high-probability buying opportunities from key points of interest aligned with institutional behavior. Higher Timeframe Context: The weekly timeframe is showing a clear bullish narrative. This bullish order flow is confirmed by the H4 timeframe, which is also delivering higher highs and higher lows—providing confluence between both the macro and intermediate timeframes. This alignment increases our confidence in seeking long setups. Key Observations on H4: Buy-Side Liquidity Sweep: Price recently took out H4 buy stops, which triggered a retracement into internal range price action. Re-Delivered Re-Balanced Zone (RDRB): Price has now pulled back into a re-delivered, re-balanced array—a significant institutional level that typically offers low-risk buy setups. Given the nature of this zone, we do not anticipate a deeper pullback into the fair value gap (FVG), thereby treating it as a potential breakaway gap. Draw on Liquidity: The next probable target is the external liquidity pool resting in premium prices. The market appears poised to gravitate towards that area. Trading Plan: Entry Strategy: Monitor the lower timeframes for bullish confirmations within the RDRB array. Targets: The primary target is the engineered liquidity pool in premium prices. For a detailed analysis, please watch this weeks Forex Outlook:https://www.tradingview.com/chart/EURNZD/BZC9xW1L-July-21-Forex-Outlook-Don-t-Miss-These-High-Reward-Setups/ Remain patient, trust the structure, and execute with precision as the bullish narrative unfolds. Kind Regards, The Architect 🏛️📈
Long
by The_Archi-tect
UNH bear flag and gapsUNH has been top of my radar for a bullish reversal. With 2 major gaps to fill after the epic collapse in share price this ticker has a lot of potential. Currently sitting in what appears to be a bear flag, it is holding above the monthly 200EMA (overlayed on this 4H chart). However price recently rejected off the daily 21ema (overlayed on this 4H chart) and if the bear flag is any indicator price may head lower for another liquidity sweep before the inevitable bullish reversal. A side note: insiders have been buying $millions since the share price collapsed which is always a good indicator of what's to come.
NYSE:UNHLong
by BorrowedClothes
How to Trade Smart Money Concepts (SMC)\ How to Trade Smart Money Concepts (SMC)\ \ This article explores the foundation, key tools, and practical insights of Smart Money Concepts — and why it’s worth your attention.\ In today's fast-changing financial landscape, Smart Money Concepts (SMC) has become a popular strategy among modern traders. But what is SMC exactly, and how can it improve your trading decisions? This article breaks it down in a simple, professional way for traders at all levels. --- \ What Are Smart Money Concepts?\ SMC is a trading approach based on the belief that large institutions ("smart money") like banks and hedge funds control most of the market's movements. These institutions often move the market in ways that confuse or trap retail traders. The goal of SMC is to understand and follow the footsteps of these big players. Instead of relying on simple patterns or indicators, SMC focuses on: \ - Market structure\ \ - Supply and demand zones\ \ - Liquidity pools\ By aligning your trades with the behavior of smart money, you can position yourself more strategically in the market. --- \ Key SMC Concepts Explained\ \ Order Blocks\ Order blocks are zones on the chart where large institutions have placed significant buy or sell orders. These zones often lead to strong price reactions and act as hidden support or resistance levels. Order blocks are considered more precise than traditional supply and demand areas. Example: () \ Fair Value Gap (FVG)\ A Fair Value Gap occurs when price moves sharply in one direction, leaving a gap or imbalance in the price action. These areas often get filled later and can act as magnets for price. In a bearish move, the FVG is the gap between the low of the previous candle and the high of the next one. In a bullish move, it's the reverse. Example: () \ Timeframe Consideration\ If you can’t monitor charts during the day, avoid relying on 5–30 minute setups. Consider 4H or daily timeframes for clearer signals and more manageable trading decisions. \ Liquidity\ Liquidity refers to price zones where lots of pending orders exist. These are usually at obvious highs, lows, or trendlines. Smart money often targets these areas to trigger stop-losses and generate movement. One common tool to identify liquidity is a "pivot point," which is a candle with a lower low or higher high than its neighbors. Example: () \ Break of Structure (BOS)\ BOS occurs when price breaks above or below a previous high or low, signaling a possible trend continuation. Example: () \ Change of Character (ChoCH)\ ChoCH happens when the market changes direction. For example, if price breaks a higher low in an uptrend, it may signal a reversal. Example: () Combined with BOS: () --- \ How SMC Compares to Wyckoff\ The idea of "smart money" isn't new. Richard D. Wyckoff, a pioneer in technical analysis, laid the foundation for understanding market cycles driven by institutions. His price cycle theory includes four phases: \ 1. Accumulation\ Smart money buys while the public is unaware. \ 2. Markup\ Price rises as smart money pushes the market. \ 3. Distribution\ Smart money sells into public buying. \ 4. Markdown\ Price falls as the cycle completes. SMC borrows from this logic but focuses more on structure and liquidity zones. Still, the core idea is the same: understand what big players are doing, and follow them. \ For deeper insights into Wyckoff, explore additional resources focused on accumulation/distribution cycles.\ --- \ Summary\ Smart Money Concepts give traders a deeper look into market mechanics. By focusing on order blocks, fair value gaps, liquidity, and structure breaks, SMC helps identify high-probability trade setups based on institutional behavior. It may seem complex at first, but once you understand the basics, SMC can become a powerful tool in your trading strategy. Whether you’re new or experienced, aligning with smart money can improve your edge in the market.
Education
by Midas_Indicator_US_Official
Mastering Inverse Fair Value Gaps (IFVG) - How to use them?In this guide, I’ll explain the concept of the Inverse Fair Value Gap (IFVG), how it forms, and how you can use it to identify high-probability trading opportunities. You'll learn how to spot the IFVG on a chart, understand their significance in price action, and apply a simple strategy to trade them effectively. What will be discussed? - What is a FVG - What is an IFVG - What is a bullish IFVG - What is a bearish IFVG - How to trade the IFVG ------------------------------- What is a FVG? A FVG is a technical concept used by traders to identify inefficiencies in price movement on a chart. The idea behind a fair value gap is that during periods of strong momentum, price can move so quickly that it leaves behind a "gap" where not all buy and sell orders were able to be executed efficiently. This gap creates an imbalance in the market, which price may later revisit in an attempt to rebalance supply and demand. A fair value gap is typically observed within a sequence of three candles (or bars). The first candle marks the beginning of a strong move. The second candle shows a significant directional push, either bullish or bearish, often with a long body indicating strong momentum. The third candle continues in the direction of the move, opening and closing beyond the range of the first candle. The fair value gap itself is defined by the price range between the high of the first candle and the low of the third candle (in the case of a bullish move), or between the low of the first candle and the high of the third (in a bearish move). This range represents the area of imbalance or inefficiency. ------------------------------- What is an IFVG? An Inverse Fair Value Gap (IFVG) occurs when a traditional Fair Value Gap (FVG) is not respected by price, and instead of acting as a support or resistance zone, price breaks through it with strength. Normally, a Fair Value Gap represents a price imbalance left by a strong move, and when price returns to this area, it often reacts by respecting the gap, bouncing off it or reversing, because it's seen as a high-probability level where orders may rest. However, in the case of an IFVG, price does not respect this imbalance. Instead, it slices through the FVG in the opposite direction, showing that the initial momentum behind the imbalance has weakened or reversed. This breach is a strong indication that market sentiment is shifting. What was once a zone of strength now becomes invalid, and this failed reaction signals that the opposite side of the market (buyers or sellers) has taken control. The IFVG highlights a key transition in momentum. It tells traders that the prior bias, bullish or bearish, is breaking down, and the new dominant force is pushing price beyond levels that would typically hold. This makes the IFVG useful not only as a sign of failed structure but also as a potential confirmation of a trend reversal or strong continuation in the opposite direction. Essentially, where an FVG usually acts as a wall, an IFVG is what’s left after that wall gets knocked down. ------------------------------- What is a bullish IFVG? A bullish Inverse Fair Value Gap (IFVG) occurs when price breaks through a bearish Fair Value Gap (FVG) instead of respecting it. In a typical bearish FVG, the expectation is that when price retraces into the gap, it will react to the imbalance, usually by reversing lower, as the area represents previous selling pressure or inefficiency caused by aggressive sellers. However, when price does not react bearishly and instead breaks cleanly through the bearish FVG, it signals a shift in market sentiment and momentum. This breakout through the imbalance suggests that buyers are now in control and that the bearish pressure in that zone has been absorbed or invalidated. What was once considered a resistance area is now being overpowered, often leading to continued bullish movement. ------------------------------- What is a bearish IFVG? A bearish Inverse Fair Value Gap (IFVG) occurs when price breaks through a bullish Fair Value Gap (FVG) instead of respecting it. In a normal bullish FVG, the expectation is that when price returns to the gap, it will act as support and prompt a move higher, as this area represents a previous imbalance created by strong buying pressure. However, when price fails to respect the bullish FVG and instead breaks down through it, this signals a shift in momentum to the downside. The anticipated support fails to hold, suggesting that buyers are no longer in control or that their efforts have been overwhelmed by aggressive selling. This kind of move transforms the bullish FVG into a bearish signal, as it confirms weakness in what was previously considered a demand zone. ------------------------------- How to trade the IFVG? Trading the Inverse Fair Value Gap (IFVG) requires patience, precision, and clear confirmation of a shift in momentum. The process involves waiting for key conditions to form before entering a trade. Here's how to approach it step-by-step: First, you need to wait for a liquidity sweep. This means price must take out a recent high or low, typically a short-term liquidity pool, trapping traders on the wrong side of the market. This sweep sets the stage for a potential reversal and indicates that the market is ready to shift direction. After the liquidity sweep, watch for a 1-minute Fair Value Gap (FVG) to form and then get broken in the opposite direction. This break is crucial, it’s what creates the Inverse Fair Value Gap. The invalidation of this initial FVG confirms that momentum has switched and that the market is no longer respecting the previous imbalance. Once the IFVG has formed, your entry comes on the close of the candle that breaks and closes beyond the IFVG, above it in a bullish scenario, or below it in a bearish one. This close confirms that the gap has not held and that price is likely to continue in the new direction. Place your stop loss below the low (for a bullish setup) or above the high (for a bearish setup) of the structure that formed the IFVG. This gives you protection just beyond the level that would invalidate the setup. ------------------------------- Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!
Education
by Youriverse
49
When Intuition Beats the Algorithm█ When Gut Feeling Beats the Bot: How Experience Can Improve Algorithmic Trading In today’s world of fast, data-driven trading, we often hear that algorithms and rules-based systems are the future. But what happens when you mix that with a trader’s intuition, the kind that only comes from years of watching charts and reading price action? A recent study has some surprising results: A seasoned discretionary trader (someone who trades based on what they see and feel, not just rules) was given a basic algorithmic strategy. The twist? He could override the signals and use his instincts. The result? He turned a losing system into a winning one, big time. █ What Was the Experiment? Researchers Zarattini and Stamatoudis (2024) wanted to test whether a skilled trader’s experience could boost a mechanical system. They took 9,794 stock “gap up” events from 2016 to 2023, where a stock opens much higher than the day before, and let the trader pick which ones looked promising. ⚪ To make it fair: All charts were anonymized — no names, no news, no distractions. The trader had only the price action to guide his choices. He could also manage open trades — adjusting stop-losses, profit targets, and position sizing based on what the price was doing. ⚪ The Trading Setup █ What Did They Find? The trader only selected about 18% of all the gap-ups. But those trades performed far better than the full list. Here's what stood out: Without stop-losses, the basic strategy lost money consistently (down -0.25R after just 8 days). With the trader involved, profits rose fast, hitting +0.80R just 4 days after entry. Risk was tightly managed: only 0.25% of capital was risked per trade. ⚪ So what made the difference? The trader could spot things the system missed: Strong momentum early in a move Clean breakouts from long sideways ranges Patterns that had real follow-through, not just random gaps He avoided weak setups and managed trades like a pro, cutting losers, letting winners run, and trailing positions with smart stop placements. ⚪ Example An experienced trader can quickly identify a breakaway gap, when a stock gaps up above a clear resistance level. Unlike random gaps, this setup often signals the start of a strong move. While a system might treat all gaps the same, a skilled trader knows this one has real potential. █ What Does This Mean for You? This research shows that trading experience still matters — a lot. If you’re a systematic trader, adding a discretionary filter (whether it’s your own review or someone else’s) could drastically improve your results. A clean chart read can help you avoid false signals and focus only on the best setups. If you’re a discretionary trader, this study is proof that your skills can add measurable value. With the right tools and discipline, you don’t need to throw away your instincts, you can combine them with structure and still win. █ Key Takeaways ⚪ Gut feeling isn’t just noise, trained instincts can spot what rules miss. ⚪ Trade selection matters more than just following every signal. ⚪ Managing risk and exits well is just as important as picking good entries. ⚪ Hybrid trading, rules plus judgment — might be the most powerful combo. ----------------- Disclaimer The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
NASDAQ:TSLAEducation
by Zeiierman
13
$SPY – Bearish RSI Divergence + Gap Below = Risky Setup👀 The RSI divergence has been signaling weakness for several sessions — with lower highs on momentum while price made higher highs. And now, we’re stalling right at a volume shelf (see VRVP) with a big unfilled gap looming just below. ⚠️ Things to watch: Bearish RSI divergence ✔️ Price breakdown confirmation below $582 Gap fill target = ~$572 VRVP shows thin volume beneath current price If momentum rolls over from here, this could accelerate fast into that gap zone.
AMEX:SPY
by SmartSignalss
Mastering Fair Value Gaps (FVG) - How to use them in trading?In this guide, I’ll explain the concept of the Fair Value Gap (FVG), how it forms, and how you can use it to identify high-probability trading opportunities. You'll learn how to spot FVGs on a chart, understand their significance in price action, and apply a simple strategy to trade them effectively. What will be explained: - What is a FVG? - How can a FVG occur? - What is a bullish FVG? - What is a bearish FVG? - How to trade a FVG? ------------------------------- What is a FVG? A FVG is a technical concept used by traders to identify inefficiencies in price movement on a chart. The idea behind a fair value gap is that during periods of strong momentum, price can move so quickly that it leaves behind a "gap" where not all buy and sell orders were able to be executed efficiently. This gap creates an imbalance in the market, which price may later revisit in an attempt to rebalance supply and demand. A fair value gap is typically observed within a sequence of three candles (or bars). The first candle marks the beginning of a strong move. The second candle shows a significant directional push, either bullish or bearish, often with a long body indicating strong momentum. The third candle continues in the direction of the move, opening and closing beyond the range of the first candle. The fair value gap itself is defined by the price range between the high of the first candle and the low of the third candle (in the case of a bullish move), or between the low of the first candle and the high of the third (in a bearish move). This range represents the area of imbalance or inefficiency. ------------------------------- How can a FVG occur? There are several factors that can trigger a fair value gap - Economic news and announcements - Earnings reports - Market sentiment - Supply and demand imbalances ------------------------------- What is a bullish FVG? A bullish FVG is a specific type of price imbalance that occurs during a strong upward move in the market. It represents a zone where the price moved so aggressively to the upside that it didn’t spend time trading through a particular range, essentially skipping over it. This gap usually forms over the course of three candles. First, a bullish candle marks the beginning of upward momentum. The second candle is also bullish and typically has a large body, indicating strong buying pressure. The third candle opens higher and continues moving upward, confirming the strength of the move. The bullish fair value gap is the price range between the high of the first candle and the low of the third candle. This area is considered an imbalance zone because the market moved too quickly for all buyers and sellers to interact at those prices. ------------------------------- What is a bearish FVG? A bearish FVG is a price imbalance that forms during a strong downward move in the market. It occurs when price drops so rapidly that it leaves behind a section on the chart where little to no trading activity happened. This gap is identified using a three-candle formation. The first candle typically closes bearish or neutral, marking the start of the move. The second candle is strongly bearish, with a long body indicating aggressive selling pressure. The third candle opens lower and continues the move down. The bearish fair value gap is the price range between the low of the first candle and the high of the third candle. That range is considered the imbalance zone, where price skipped over potential trade interactions. ------------------------------- How to trade a FVG? To trade a FVG effectively, wait for price to retrace back into the gap after it has formed. The ideal entry point is around the 50% fill of the FVG, as this often represents a balanced level where price is likely to react. During the retracement, it’s helpful to see if the FVG zone aligns with other key technical areas such as support or resistance levels, Fibonacci retracement levels, or dynamic indicators like moving averages. These additional confluences can strengthen the validity of the zone and increase the probability of a successful trade. Enter the trade at the 50% level of the FVG, and place your stop loss just below the most recent swing low (for a bullish setup) or swing high (for a bearish one). From there, manage the trade according to your risk-to-reward preferences—whether that’s 1:1, 1:2, or a higher ratio depending on your strategy and market conditions. ------------------------------- Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!
Education
by Youriverse
87