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3 Types of Charts You Must Know 📈 Hey traders, In this post, we will discuss 3 most popular types of charts. We will discuss the advantages and disadvantages of each one, and you will decide what type is the most appropriate for you. 📈Line Chart. Line chart is the most common chart applied by analysts. Reading financial articles in different news outlets, I noticed that most of the time the authors apply line chart for the data representation. On a price chart, the only parameter that the one can set is a time period. Time period will define a time of a security closing price. The security closing prices overtime will serve as ​data points. These points will be connected with a continuous line. Line charts are applied for displaying an asset's price history, reducing the noise from less volatile times. Being simplistic, they can provide a general picture and market sentiment. However, they are considered to be insufficient for pattern recognition and in depth analysis. 📏Range Bar Chart. In contrast to a line chart, a range bar chart does not consider time horizon. The only parameter that the one can set is a price range. By the range, I mean a price interval where the price moves. A new bar will be formed only once the prices passes the desired range. Such a chart allows to completely ignore time variable focusing only on price movement and hence reducing the market noise. The chart will plot new bars only when the market is volatile, and it will stagnate while the market is weak and consolidating. Accurately setting a desired price range, one can get multiple insights analyzing a range bar chart. 🕯Candlestick Chart. The most popular chart among technicians and my personal favorite. With just one single parameter - time period, the chart plots candlesticks. Each candlestick is formed as a desired time period passes. It contains an information about the opening price level, closing price, high and low of a selected time period. Candlestick chart is applied for pattern recognition and in-depth analysis. Its study unveils the behavior of the market participants and their actions at a desired time period. Of course, each chart has its own pluses and minuses. Choosing its type, you should know exactly what information do you want to derive from the chart. What chart type do you prefer? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
CUP & HANDLE. How the pattern works☕️ ✅This pattern is not as popular among traders as "Head and Shoulders", "Double Top" and other classic patterns of technical analysis. However, this does not mean that it is not so effective. In fact, the "Cup & Handle" pattern is in no way inferior to the above patterns in its reliability and, if used correctly, can bring considerable benefits to the trader. ✅Below we will look at how the "Cup & handle" is formed, what are the signs of authenticity of the formed pattern, and the trading strategy for it. ⚠️How the "Cup & Handle" formation is formed The formation of this pattern occurs on an uptrend and is a sure sign of its continuation (subject to the conditions of authenticity of the pattern). In essence, it is a cup - an uptrend correction. The price reaches a strong resistance level, cannot overcome it, and smoothly rolls back, forming the left wall of the cup. Then it smoothly unfolds along the bottom and rises to test the level again. Having reached the level, it rolls back down again. This rollback should be much smaller than the previous one, and it forms a handle. The handle of the cup is very often formed in the form of a "Flag" pattern. The "Cup & handle" pattern is considered fully formed when the price, having formed a "handle", returns up and breaks through the resistance level from which the pattern formation began ⚠️Confirmation of the truth of the "Cup & handle" pattern There are several conditions, without which the formed pattern cannot be considered true. These are the conditions: 1️⃣To begin with, as mentioned above, for the formation of this pattern, it is necessary to have an uptrend. Without a trend, there is no point in looking for this formation on the price chart, because even if you find a drawing of an ideal cup with a handle, it will be just a drawing that has no meaning. 2️⃣The depth of the forming cup should not exceed 2/3 of the height of the previous uptrend. The optimal depth of the cup is within 1/3 - 2/3 of this value. The depth of the forming handle should not exceed a value equal to ½ of the depth of the cup. 3️⃣The most reliable is the "Cup & Handle" pattern formed on daily or weekly timeframes. Of course, it can also be formed on hourly charts, but where the probability of its triggering is somewhat lower. 4️⃣The "Cup & handle" pattern should be confirmed by the indicators of the volume indicator. Volumes should grow at a time when the price is moving in the direction of an uptrend and fall when it decreases. Also, a sharp surge in volume should accompany the moment of breaking through the price level at the end of the formation of the figure. 🟢Trading strategy based on the "Cup & handle" The entry into the position is carried out after the completion of the formation of the figure. It is recommended to wait for the price to close above the resistance line. To do this, you must constantly monitor the schedule in anticipation of the right moment. There is also a strategy for opening a position on a pending order, in which case there is no need to sit and wait for the completion of the figure. A pending order is placed at a level slightly above the resistance level (approximately 10 points) and is triggered if the figure is completed. The target level for this pattern is the height of the cup, laid up from the resistance level. Therefore, we set the profit-taking level of TAKE PROFIT either at the target level or 10-15 points below it. As for the STOP LOSS limit order, it should be placed at the level of the bottom of the handle (or slightly lower). ❗️In conclusion, I will say once again how important it is to correctly identify the "Cup and Handle" formation before you start trading on it. Carefully re-read the rules confirming this pattern. Try not to mess with the patterns formed on small timeframes. Take your time, be patient, and remember that the absence of open positions can also be considered an excellent position. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
Improve your trading skills with PTAHey Traders! In this video we talk about Post Trade Analysis which we believe it probably the best way to develop your trading skills, trading system and general instinct of trading. Today we traded the DAX for 2 hours with complete focus, focus is a vital requirement for trading success as it allows you to be present and disciplined to follow your trading rules and system. The video explains some things we did good and some things we did bad, of-course the good should be repeated in the next trading session, the bad either improved or removed! Do you do post trade analysis? - Let us know in the comment section below! Have a fab day!
OANDA:DE30EUREducation
by PrimedGroup
Learn What is U.S. Dollar Index (DXY) 💵💲 Hey traders, I share my analysis, signals and forecasts on Dollar Index occasionally. Quite often I receive questions from you asking me to explain what exactly that index means and why it is so important. Dollar Index (DXY) is a measure of the value of the United States Dollar against a weighted basket of major currencies. This basket consists of 6 following currencies: 🇪🇺Euro (EUR) - 57.6% share 🇯🇵Japanese yen (JPY) - 13.6% share 🇬🇧Pound sterling (GBP) - 11.9% share 🇨🇦Canadian dollar (CAD) - 9.1% share 🇸🇪Swedish krona (SEK) - 4.2% share 🇨🇭Swiss franc (CHF) - 3.6% share The selection of the following basket of currencies and their weight is determined by the significance of a trading partnership between the countries. The index value is calculated with the formula: USDX = 50.14348112 × EURUSD ^ -0.576 × USDJPY ^ 0.136 × GBPUSD ^ -0.119 × USDCAD ^ 0.091 × USDSEK ^ 0.042 × USDCHF ^ 0.036 The index was launched in 1973 and had an initial value of 100. When the U.S.D is gaining strength against the above-mentioned currencies, the index is growing, while its weakness against them leads to a decline of the index value. To conclude, the Dollar Index reflects a fair value of the Dollar and its dominance in global markets. Its analysis may help to make more accurate predictions of the future direction of the dollar related instruments. Do you analyze DXY? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
5 MUST READ TRADING BOOKS 📚 Hey traders, You frequently ask me to share a list of trading books that I personally recommend. In this post, I gathered 5 books every trader must-read. Please, note that in that list I included the books that changed my perception of trading. Most of them focus on the psychological aspects of trading and do not teach any particular trading strategy. 📕Trading in The Zone by Mark Douglas. Douglas uncovers the main fallacies of newbie traders. He focuses on the psychological aspect of trading and its tremendous role in this game. Relying on studies of the human psyche the author teaches readers to beat the ingrained mental habits. 📔The Black Swan by Nassim N. Taleb. Even though that book is not about trading, it uncovers the aspect of probabilities in life and our perception of them. Especially, Taleb focuses on very rare and extremely low probability events that humans frequently neglect in their predictions and the impact of their occurrence in our lives. 📘The Disciplined Trader by Mark Douglas. One more book from Douglas. This paper describes the mindset of a successful trader, useful habits and traits. It is looking for reasons why most of the traders fail. The author teaches how to properly react to losing and winning trades and changing market conditions. 📙Market Wizards: Interviews with Top Traders by Jack D. Schwager. Best traders of the entire world share useful insights of trading. Top experts in the industry talk about their journey, about their path to success and share their valuable experience. 📗Trend Following by Michael W. Covel Trend is our friend. That is the axiom no one doubts. The only problem is that it is not that simple to follow the trend. In this book, Covel describes a profitable and efficient trend-following trading strategy adopt. Of course, reading these 5 books does not guarantee that you will become a consistently profitable trader but I consider them to be very impactful. I always said that a proper mindset is one of the most important things in trading and these books will help you to build it. Did you read these books? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
COMPOUND INTEREST | Time is on your side📚 ❗️As it turned out, not all traders are familiar with such an important concept as compound interest. Meanwhile, the use of compound interest in trading can be a very effective tool for making a profit. In short, compound interest is the accrual of interest on interest, and if in detail, then read on. ✅The formula for calculating compound interest has the form: Compound percentage = (P (1 + g)^ n) – P, where P – the amount originally invested; r – interest rate; n is the investment period. Let's say you invested an amount of $ 10,000, every year the interest received is added to the principal amount, and new interest is accrued for a larger amount. If the investment period is 5 years, and the interest rate is 10% per annum , then after the specified period, taking into account the compound interest, you will receive a profit in the amount of: (10000(1+0.10)^5)-10000=6105.1$ And without taking into account the compound interest, the profit for the same period will be: 1000050,10-10000=5000$ As you can see, using compound interest (or in other words reinvesting profits) brought additional income in the amount of: 6105.1-5000 = 1105.1 $. ✅It seems that the figures presented above are not impressive, but the use of compound interest in trading can truly work wonders. In what way? Let's take another look at the compound interest formula described above. It is obvious from the formula that you can increase profit by increasing any of its components. Let's not touch the amount originally invested, but play with the value of the investment period and the interest rate. To begin with, let's imagine that we will reinvest the profit not every year, but every month. Then the investment period will be 12 5 = 60 months. The interest rate corresponding to this investment period will be equal to: 10%/12=0.833%. Let's substitute these values into the formula for calculating the compound percentage: (10000(1+0.00833)^60)-10000=6449,8$ As you can see, under the same conditions, but with monthly reinvestment of profits, the income will already be $ 6449.8- $6105.1 =$344.7 more. Well, if the trader's income is not 0.833% per month, but, for example, 5% monthly, then under the same conditions and for the same period, the profit will already be: (10000(1+0. 05 )^60)-10000=176791,86$ Felt the difference, impressive, isn't it? And what if you reinvest profits not monthly, but daily? Let's figure it out. With an average yield of 5% per month, the average daily yield will be 5%/21= 0.238% (here 21 is the number of working days in a month). The investment period will be 5360=1800 days. Let's substitute the data into the compound interest formula: (10000(1+0.00238)^1800)-10000=711617,5$ This is already 711617.5-176791.86 = 534826 $ more than with monthly reinvestment of profits. More than half a million dollars (and this with an initial investment of only ten thousand)! That's impressive. That's what compound interest is in action. ⚠️This is about theory. In practice, it is impossible to achieve a constant percentage of profit every day. Some days a trader inevitably ends up with a loss, some with a profit, and the size of these losses and profits is always different. So it is unlikely to substitute the value of the percentage of profit per day in the above formula. However, the very essence of compound interest, clearly shown above in figures, gives the trader a fairly powerful tool for earning. A trader can and should use compound interest when creating his own money management system. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
PRICE ACTION TRADING | THREE TYPES OF TRIANGLES YOU MUST KNOW 📐 Hey traders, In this post, we will discuss 3 simple and profitable types of a triangle pattern. 1️⃣The first type of triangle is called a descending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bullish trend. Setting a new higher high the market retraces and sets a higher low, then bulls start pushing again but are not able to retest a current high and instead the price sets a lower high and drops to the level of the last higher low setting an equal low. The price keeps trading in such a manner setting lower highs and equal lows till the price sets a new lower low. Most of the time it gives a very accurate signal of a coming bearish move. Please, note that a triangle formation by itself does not give an accurate short signal. The trigger that you should wait for is a formation of a new lower low. 2️⃣The second type of triangle is called a symmetrical triangle. It is a classic indecision pattern. It can be formed in a bullish, bearish trend, or sideways market. The price action starts contracting within a narrowing range setting lower highs and higher lows. Based on them, two trend lines can be drawn. Breakout of one of the trend lines with a quite high probability indicates a future direction of the market. 3️⃣The third type of triangle is called an ascending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bearish trend. Setting a new lower low the market retraces and sets a lower high, then bears start pushing again but are not able to retest a current low and instead the price sets a higher low and bounces to the level of the last lower high setting an equal high. The price keeps trading in such a manner setting higher lows and equal highs till the price sets a new higher high. Most of the time it gives a very accurate signal of a coming bullish move. 📍Please, note that a triangle formation by itself does not give an accurate long signal. The trigger that you should wait for is a formation of a new higher high. Learn to recognize such triangles and you will see how accurate they are. Let me know what pattern do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Three pillars of trading success 📈💲It's time for my mid week educational post. Today I want to talk about the three pillars needed by all traders for success in the markets. This isn't just the forex market either this applies to trading all financial markets. Be it forex, crypto or stocks, so lets get into the the three pillars of success. PILLAR NUMER ONE- STRATEGY You MUST have an edge before entering the markets. When will you enter the market? When will you close? What % per trade will you risk? What pairs will you trade? What timeframes will you trade? If you don't have any answers to the above you are entering the markets blind and it will end in tears. In trading, edge is your ability to select trades that perform better than random. You can think of edge as the process used to generate and execute entry and exit signals. Do not enter the markets until you are working a strategy with a proven edge. The stronger your edge, the more profitable you’ll be. PILLAR NUMBER TWO- RISK MANAGEMENT We can't avoid the white elephant in the room on average 80% of trader lose money or fail in the markets. Some say its even more and you will become one of the stats if risk management isn't applied to your trading. Some of the reasons losses like these exist in trading is down to the fact that aspiring traders don’t put any thought into their risk management tolerance. We only ever see the upside when we start out and many never do anything to protect themselves from potential losses. If you never made any money as a trader before or entered the markets before ask yourself the question below before starting out. How much money am I comfortable losing? Your first priority with trading is to stay in the game So manage your risk per trade and total risk at anyone time. Understand probability and ensure you are comfortable with your maximum exposure at any one time. Understand the maximal draw down in your testing when finding your edge. That way it will help you see what a potential losing run you could experience. PILLAR NUMBER THREE- TRADING PSYCHOLOGY We need good trading psychology to keep a balanced mind whilst trading, this stops your emotions leading the trade. The trade outcome cannot be controlled and you MUST detah yourself from each trade outcome. You will know when your trading emotions are nailed on when you do not 'FEEL ' anything when trading. If you have 'emtions' with your trades or when trading simply reduce your risk further. Two emotions that need particular attention are GREED and FEAR. You need discipline in controlling these two emotions or you are going to end up making losses as a trader. We all been there we make a few profits confidence kicks in and then greed before you know it your in whole world of pain. We all be there at some point with fear to and not executing trades due to a fear being in our trading game say from a poor run of form. Emotions will always be there we are emotional beings, but they will need controlling in order for you to be a successful trader. Practice developing the emotional control needed to trade successfully. FINAL THOUHGHTS Trading requires 100% commitment most see it as a hobby to start with but this can be costly hobby if commitment to trading is lacking. The sole reason most get into trading is to make money. One purpose of a business is to make money. Treat trading as a business at the end of the day it's your personal money that's on the line. Every trader needs to have a disciplined approach to the markets. Following these three steps will help you. In order to be a successful trader and run a profitable account, it is essential that you have these three pillars in your trading. Thanks for taking the time to read my idea. Darren 👍
Education
by pow_removetheguesswork
1
Moving Average | Two Profitable Ways to Use 📊 Hey traders, In this post, we will discuss two efficient ways to apply the moving average(s) indicator in your trading. Please, note that the settings for a moving average depend on many factors and can not be universal. Time frame, your style of trading and many other factors should be taken into consideration when you define the settings. 1️⃣The first very efficient way to apply moving average is to consider that to be a strong support/resistance. Such a method is appropriate for trend-following traders. A very important condition to note applying MA as the structure is that the market should be trending: it should trade in a bullish or bearish trend, not in sideways. 📍In a bullish trend, a moving average will provide you a relatively safe point for buying the market after a pullback. Quite often after a test of MA, the price tends to bounce all the way up to a current high and even go higher to the next highs. 📍In a bearish trend, a moving average will serve as a strong resistance and quite often will indicate a completion point of a retracement leg after a strong bearish impulse. 2️⃣The second way to apply moving average is to apply a combination of 2 MAs with different settings (one with a bigger and one with a smaller length). Such a method is usually applied by counter-trend traders. And again, a very important condition to note, is that if you want to apply this method efficiently, remember that the market must be trending, it should be bullish or bearish. Your task will be to track an intersection of two MAs. 📍In a bullish trend, a crossing of two moving averages with a high probability will indicate a trend violation and initiation of a new bearish trend. Such a signal usually serves as a trigger to open a short position. 📍In a bearish trend, a crossing of two moving averages will signify a violation of a bearish trend and the start of a new bullish trend. The intersection by itself will be a signal to open a long position. Your task as a trader is to find the most accurate inputs for MAs. With backtesting and experience, you will find the settings applicable to your trading style. What indicator do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
95
ENGULFING CANDLE | powerful price reversal📚 ✅The engulfing model (external bar) is mainly a reversal pattern (although in rare cases it may indicate a continuation of the trend). It looks like two candles, the first of which is small, and the second is large, with a body larger than the entire previous candle, and directed in the opposite direction. ✅From the point of view of crowd movement, such a pattern means that the strength of the current trend is drying up (this is evidenced by the small size of the first engulfing candle). The crowd does not know in which direction to move and, figuratively speaking, is marking time. The appearance of a powerful candle that absorbed the previous one and closed in the opposite direction marks the beginning of a new, strong trend. ⚠️There are several mandatory conditions that the pattern must meet in order for its signal to provide the maximum probability of working out: 1️⃣Before the pattern itself, there must be a downtrend or an uptrend in the market. The movement may be small, but its presence is mandatory; 2️⃣The body of the second candle should be of a different color and orientation (bearish after bullish and bullish after bearish). Shadows may not be absorbed, but then the signal is considered weaker; 3️⃣The body of the second candle should have a contrasting color with respect to the body of the first. The exception is when the body of the first candle is very small (doji or close to it). ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
7
3 Important Terms Every Trader Must Know | Trading Basics📚 Hey traders, In this post, we will discuss 3 very important market situations that every trader must be able to recognize: breakout, retest, and fakeout. ❗️Please, note that the essential element of all these terms is structure: vertical and horizontal key levels. 📍Breakout is a situation when the market breaks the identified horizontal support or resistance, or a vertical trend line. Breakout is a very important event that signifies the willingness of buyers/sellers to violate the structures. Violation of support signifies a strong selling pressure while a violation of resistance signifies a high buying momentum. Usually, the structure breakout is confirmed with a candle close. For confirmation of a breakout of support, a candle close below that is needed. For confirmation of a breakout of resistance, a candle close above is required. 📍Retest is the situation when the price returns back to broken horizontal support or resistance, or a vertical trend line after a confirmed breakout. For a structure breakout, high trading volumes are needed. Usually, after a breakout, the market participants are locally exhausted and a correctional movement follows. That may lead to a retest of a broken structure. Most of the time, after a retest a strong impulse follows. For that reason, for many traders, the retest is applied for trading entries. 📍Fakeout or false breakout is the situation when the price has not enough strength to maintain its direction after a retest of a broken structure. Instead, the market returns back below/above the broken resistance/support. Fakeout is one of the main reasons, why structure traders lose money. One of the ways to avoid fakeout is to monitor trading volumes during a structure breakout. A volume spike is needed to confirm the strength of the market participants while low volumes most of the time signify a manipulation. Learn to spot breakouts and false ones, and try to trade on a retest. Let me know what do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
BITSTAMP:BTCUSD
by VasilyTrader
10
Candlestick Action | How Candles Are Formed🕯 ❗️Japanese candlesticks as a technical analysis tool were invented earlier than others, but they were not widely used immediately. By the name, it is easy to guess that Japan became the "homeland": local rice traders used this method already in the 18th century. However, due to the geographical remoteness and closeness of the country from external "visitors", this type of chart gained popularity much later, when exchange life was already actively boiling in Europe and the USA. ✅What is hidden behind the candlestick chart? 🟢A candle is formed from 4 prices: opening, closing, high and low for a certain period of time. If we take a timeframe of a minute, then each candle will indicate the price movement within this minute, if an hour is inside an hour, if a day is inside a day. The distance between the opening and closing price is the "body" of the candle, and the tails show to what lows and highs the price reached. If the opening price was higher than the closing price, then the candle will be black; and vice versa: if the opening price is lower than the closing price, then the candle will be white. It turns out that candles are, in fact, the psychology of the market, they most accurately reflect the fears and hopes of its participants. 🟢The charts of Japanese candlesticks themselves are valuable for analysis: the resulting models are interpreted as models of reversal or continuation of the trend. It is also important to understand: each individual candle or a combination of candles is just a way of depicting the actions and moods of all bidders for the period we have chosen (day/week/ month, etc.). The fact is that human behavior is quite formulaic in the same situations, and that is why various methods of chart analysis are so popular with investors and traders. 🟢Looking at only one or several candlesticks, a "savvy" viewer can easily understand whether the market is set to rise or fall, change the current trend or its continuation, increase the momentum of movement or its attenuation. ⚠️It is important to understand that the behavior of individual bidders develops into a general market movement, which can be "read" using charts of Japanese candlesticks and their basic models. Therefore, your optimal investment decisions will be supported by the most effective moments of entry or exit from the position, which will significantly improve the financial result. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
15
Trading the bleeding markets with a winning mindset ;)There's a great struggle going from profit to loss. A burst of a bubble, which in it's essence is hope. But this is false. The odds are, that your profits were on paper, so how does a loss on paper differ from a profit on paper? Truth is - It doesn't. But what it does do is play with your emotion. Our mind has a tendency of expecting the worst once things start rolling in that direction. Take a step back and think about what life threw at you so many times in the past, think about the times you thought things are going to end up the worst but actually didn't. It could be you planned a nice day outside with your partner in the park but it started to rain. But instead of crying about the day wasted and how this is just awful, you ended up cooking together a nice lunch and drinking wine while finding a new great TV show to watch, ending up being one of the best days in a while. Not let's roll back to trading. And let's cut out negative thinking completely just for 3 minutes and look only at the positive. Positive points - 1) Cheap instruments all around to invest in 2) Great practice of mental skills while trading, which truly is the most influential aspect of mastering trading 3) It reminds you the very basics of trading that we lose track of once markets start flying up - Buy low, sell high. 4) Opportunity, opportunity, opportunity - Every time you would have bought into the stock market, over a few year period you would make great returns, same thing goes even for people who bought Bitcoin after the decline of 2018 and pretty much any other pop financial instrument. 5) You're a day trader? Great! Volatility is amazing if you have a strategy which is disciplined and consistent as well as based on risk management. See how bright the light shines at this very moment? Keep it. Be positive. Be hopeful. Be practical. The negative quotes such as - I can lose everything! It's never going to rally back! This is taking too long! I don't have patience for this! This is turning out to be so not fun! I didn't expect to hold this trade this long! How will any of this benefit you in any way? Where's the logic? Where's the gain? Where's the analysis? Where's the market view? Where's the money management? Only look at what is relevant to your success. Block the negative, ignore it completely as much as you can and eventually always. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Thank you so much for reading! I hope you found my idea useful, if you did, please like and follow! It would mean the world to me. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
BITSTAMP:BTCUSDEducation
by Exactus
Morning Star Pattern: how to trade?🌟 ❗️The Morning Star pattern is a market reversal pattern consisting of three candlesticks that indicate bullish superiority. This pattern warns us about the weakness of the ongoing downtrend, which, in turn, suggests the beginning of an uptrend. ⚠️Traders observe the formation of the "Morning Star" pattern on the price chart, and then confirm with the help of other technical tools on the Forex currency market. ✅Morning Star pattern: Three forming candles ⏺Big Bearish Candle ⏺A small bullish or bearish candle ⏺Big Bullish Candle The most important thing to remember is always that the market must be in a downtrend in order to trade according to the "Morning Star" pattern. In order to confirm the downtrend, mark the lowest lows and the lowest highs. 1️⃣The big bearish candle is the first part of the Morning Star reversal pattern. This candle indicates that the bears are in full control of the market, which means that sellers continue to pressure the market. At the moment, you should only look for sale deals, since there are no signs of a reversal yet. Here the Morning Star pattern is just beginning its formation. 2️⃣A small bullish/bearish candle is the second candle that starts with a bearish gap down. This candle indicates that sellers are unable to lower the price, despite very great efforts. The price action ends with the formation of a rather small bullish/bearish candle (Doji candle). If this candle is bullish, then we have an early sign of a trend reversal. 3️⃣A large bullish candle is the third candle that has the greatest significance, because here the real pressure of buyers is manifested. If the candle starts with a break, and buyers can push prices up by closing the candle even above the first red candle, this is a clear sign of a trend reversal. ✅Morning star: how to trade this pattern on Forex? As we already know, the Morning Star pattern is a reversal pattern. As a rule, it indicates that bulls are capturing the trend, and bears are losing control. Most beginners trade using the "Morning Star" pattern on their own, without using technical tools, or at least tips from more professional traders. We do not recommend doing this — it is not as reliable as it may seem. Always connect this pattern with other reliable indicators, support and resistance levels, as well as trend lines. So, in this strategy, we combined the Morning Star pattern with volume. Volume plays an important role in the formation of the model. If the first red candle shows a low volume, then this is a good sign for us. Then, if the second candle is green and the volume is growing, this indicates buyer pressure. After all, the volume of the third long green candle should be high. The large volume of the last candle indicates the confirmation of the upcoming trend and the entrances to purchase transactions. If the third bullish candle has a low volume, do not pay attention to the fact that the Morning Star is forming. This volume does not indicate a bullish reversal. To sum up: do you observe the closing of the third candle with a large volume? Open buy positions and move along with the uptrend until there are signs of a reversal. ✅Morning Star pattern: entry, take profit and stop loss We have to open a deal when the next green candle closes. There are many ways to lock in profits. We can close a position in any resistance zone or supply-demand zone. In this deal, we hold our positions because we have opened a deal since the beginning of a new trend. You can also close your positions when the price approaches a significant resistance level on the higher timeframe. ⚠️Combining this pattern with volumes makes trading more reliable. Therefore, you need to place a stop loss just below the second candle. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
10
Rookie traders 1st idea post. Be kind.So I been watching and reading and demoing all kinds of platforms for roughly 2 years now. This year I got started with a few actual small trades and I've learned more from those few real trades than the entire 2 years educating myself with YouTube, chat groups, talking to friends etc... so today I thought, screw it, just post ur ideas and see if I learn something from it. I'm sure there will be some harsh comments and maybe even laughter, but when your done laughing or ripping at this idea, just be sure to leave a constructive critique for the guys like me trying to learn our way up... sometimes the best way to learn is to fall forward flat on ur face but if it's the best way to learn then I'm willing to learn with my face firmly seated in class.
BITSTAMP:BTCUSDShort
by Kev_Bourn
1
What is a Gap in Trading? | Different Types of Gaps Explained 📚 Hey traders, In this article, we will discuss a very common pattern that is called gap. In technical analysis, the gap is the difference between the closing price of the previous candlestick and the opening price of the next candlestick. 📈Gap up represents a situation when the price bounces up sharply at the moment of a transition from one candlestick to another. The price gap that appears between them is called gap up. 📉Gap down represents a situation when the price drops sharply at the moment of a transition from one candlestick to another, the price gap between the closing price of the previous candle and the opening price of the next candle is called a gap down. From my experience, I realized that with a high probability the gap tends to be filled. For that reason, once you see a gap, consider trading opportunities around that. Depending on the market conditions where the gap appears, there are several types of a gap to know: 1️⃣Common gap appears in a weak, calm market. When the trading volumes are low and the market participants are waiting for some trigger, or the asset reached a fair value price. 2️⃣Breakaway gap appears in a situation when the price suddenly breaks a structure (support or resistance) in a form of a gap. Such a gap usually confirms a structure breakout. 3️⃣Runaway gap usually appears when the market is growing or falling sharply. It signifies the dominance of buyers/sellers and highly probable continuation. Usually, such gaps are not filled. 4️⃣Exhaustion gap is, in contrast, appears around major key levels and signifies a highly probable reversal. The exhaustion gap is usually confirmed by a consequent strong opposite movement that fills the gap. Learn to recognize gaps on a chart and learn to interpret them. It will increase the accuracy of your technical analysis. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9
Support & Resistance Levels | Trading Basis📚 ❗️The concepts of support and resistance are fundamental concepts of technical analysis of financial markets. They are applicable to almost any market, be it stocks, Forex, gold or cryptocurrency. ❗️And although these concepts are easy to understand, in practice they are quite difficult to master, since the definition of levels is completely subjective, and their behavior depends on many conditions. So first of all it is important to learn to distinguish their types. To do this, you will have to familiarize yourself with a lot of graphs, and this guide will help you. ✅What is support and resistance? 🟢At the most basic level, support and resistance are simple concepts. To determine them, the maximum and minimum price indicators are displayed, acting as a kind of barrier. At the same time, the lower values of the chart represent the support level, and the upper values represent the resistance level. In fact, the level of support can be viewed from the point of view of demand, and the level of resistance – from the point of view of supply. 🟢Despite the fact that support and resistance levels are usually denoted by lines, in reality they usually look different. It should be borne in mind that markets are not governed by any physical law that does not allow indicators to go beyond a certain level. Therefore, it is more appropriate to consider support and resistance levels as areas. You can imagine these areas as ranges on the price chart, the approach to which is likely to cause increased activity of traders. ✅How Traders Use Support and Resistance levels 🟢Technical analysts use support and resistance levels to identify areas of interest on the price chart. At these levels, the main trend is likely to change its direction. 🟢Market psychology plays an important role in the formation of support and resistance levels. Traders and investors are guided by price levels that previously caused increased interest and trading activity. These areas will contribute to increased liquidity as many traders will be tracking the same price levels. Often, support and resistance zones create ideal conditions for entry or exit from a position for large traders. 🟢The concepts of support and resistance levels are key to effective risk management. Your trading opportunities may depend on your ability to consistently identify these zones. Usually, after the price reaches the support or resistance area, two possible events are possible. It either bounces off this area, or breaks through it and continues moving in the direction of the trend to the next potential support or resistance area. 🟢It is best to enter a trade when the price is near the support or resistance level, mainly because of its relative proximity to the cancellation point, where a stop loss order is usually placed. In case of a breakthrough of the area and invalidation of the transaction, traders will be able to reduce their losses, because the further the entry is from the supply or demand zone, the further the point of invalidation of the transaction. 🟢At the same time, you need to understand how these levels will change depending on changes in the situation on the chart. As a rule, a breakdown in the support area can turn it into a resistance area. Conversely, a broken resistance area may turn into a support area when it is retested. This pattern is called the support-resistance flip. ⚠️How to draw support levels correctly? ⏺Reduce the timeframe of your charts so that you can see the bigger picture. ⏺Draw the most obvious levels that tend to have the strongest price bounces. ⏺Adjust your levels to get the maximum number of touches. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
10