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Harmonic Patterns in Trading: A simple introductionIntroduction In the world of trading, we often hear about harmonic patterns. These are very special tools in the trader's toolkit. They are complex but very important. In this article, we look into these patterns, how traders use them, and why they are crucial. Understanding Harmonic Patterns Harmonic patterns are part of technical analysis in trading. They come from Fibonacci numbers and show potential future price movements. These patterns are not random; they are specific geometric shapes in the markets. Some well-known patterns are Gartley, Bat, Butterfly, Crab, and Shark. Each pattern is unique and uses Fibonacci in a different way. Top Harmonic Patterns Gartley Pattern: This is a very famous pattern. It looks like an 'M' or 'W' shape. It helps traders to find good points for buying or selling. Bat Pattern: This pattern is similar to Gartley but with different Fibonacci measurements. It's known for its high accuracy in predicting market reversals. Butterfly Pattern: This pattern indicates a strong reversal. It's like Gartley and Bat but has a longer 'wing'. Crab Pattern: Known for its extreme accuracy, the Crab pattern offers precise entry and exit points. Shark Pattern: This is a newer pattern. It helps to identify very sharp and sudden changes in the market. Fibonacci and Markets: A Symbiotic Relationship Fibonacci sequence is a series of numbers important in many areas, including markets. Traders use these numbers to predict where the market might go. Importance of Harmonic Patterns in Trading Predicting Markets: These patterns help traders to guess future market movements, unlike other tools that only analyze past data. Strategic Trading: They offer clear points for entering and exiting trades, which helps in planning. Versatility: Useful in various markets like forex, stocks, and cryptocurrencies. Risk Management: They provide structured ways to manage trading risks. Complementing Strategies: Harmonic patterns can be combined with other market analysis methods for stronger trading strategies. Learning Curve Understanding harmonic patterns requires time and market knowledge. But they offer a clear insight into market behavior, which is very valuable for traders. Challenges Using harmonic patterns can be tricky. They need correct identification, and market volatility can sometimes affect their accuracy. So, traders need to be adaptable. Conclusion Harmonic patterns are a mix of mathematics and market understanding. They use Fibonacci to interpret market movements. For traders willing to learn, they offer deeper market insights. In trading, understanding these patterns can be a great advantage.
Education
by GreenCryptoTrades
Learn What is PULLBACK and WHY It is Important For TRADING In the today's post, we will discuss the essential element of price action trading - a pullback. There are two types of a price action leg of a move: impulse leg and pullback. Impulse leg is a strong bullish/bearish movement that determines the market sentiment and trend. While a pullback is the movement WITHIN the impulse. The impulse leg has the level of its high and the level of its low. If the impulse leg is bearish, a pullback initiates from its low and should complete strictly BELOW its high. If the impulse leg is bullish, a pullback movement starts from its high and should end ABOVE its low. Simply put, a pullback is a correctional movement within the impulse. It occurs when the market becomes overbought/oversold after a strong movement in a bullish/bearish trend. Here is the example of pullback on EURJPY pair. The market is trading in a strong bullish trend. After a completion of each bullish impulse, the market retraces and completes the correctional movements strictly within the ranges of the impulses. Here are 3 main reasons why pullbacks are important: 1. Trend confirmation If the price keeps forming pullbacks after bullish impulses, it confirms that the market is in a bullish bearish trend. While, a formation of pullbacks after bearish legs confirms that the market is trading in a downtrend. Here is the example how bearish impulses and pullbacks confirm a healthy bearish trend on WTI Crude Oil. 2. Entry points Pullbacks provide safe entry points for perfect trend-following opportunities. Traders can look for pullbacks to key support/resistances, trend lines, moving averages or fibonacci levels, etc. for shorting/buying the market. Take a look how a simple rising trend line could be applied for trend-following trading on EURNZD. 3. Risk management By waiting for a pullback, traders can get better reward to risk ratio for their trades as they can set tighter stop loss and bigger take profit. Take a look at these 2 trades on Bitcoin. On the left, a trader took a trade immediately after a breakout, while on the right, one opened a trade on a pullback. Patience gave a pullback trader much better reward to risk ration with the same target and take profit level as a breakout trader. Pullback is a temporary correction that often occurs after a significant movement. Remember that pullbacks do not guarantee the trend continuation and can easily turn into reversal moves. However, a combination of pullback and other technical tools and techniques can provide great trading opportunities. Please, let me know if you have any questions! Also, please, support this post with like and comment! Thank you for reading!
OANDA:XAUUSDEducation
by VasilyTrader
32
Slippery Slope: What is Slippage? With the unfortunate demise of the prop firm My Forex Funds, the issue of slippage has recently become a hot topic. This educational post takes a look at the slippery issue of slippage, beginning with the basics all the way to addressing popular theories and speculations about slippage. Something to remember is that every trader, regardless of expertise, will encounter slippage during their trading activity. What exactly is slippage? Slippage is the term used in the forex market to describe the difference between the requested price at which you expect to fill your order and the actual price that you end up paying. Slippage most often occurs during periods of high market volatility, when market conditions are very thin due to low volumes traded or when the market gaps; all of these scenarios then lead to market conditions being such that orders cannot be executed at the price quoted. Therefore, when this happens, your order will be filled at the next available price, which may be either higher or lower than you had anticipated. Understanding how forex slippage occurs can enable a trader to minimise negative slippage while potentially maximising positive slippage. Market Gap High Market Volatility Slippage is part of trading and cannot be avoided. This is due to forex market volatility and execution speeds. When a market experiences high volatility, it generally means there’s low liquidity. The reason for this is that during this time, market prices fluctuate very quickly. Where this affects forex traders is when there’s not enough FX liquidity to fill an order at the requested price. When this happens, the liquidity provider will complete the trade at the next best available price. Another cause of slippage is execution speed. This is how fast your Electronic Communication Network (ECN) can complete a trade at your requested price. With market prices changing in fractions of a second, having faster execution times can make a difference, especially on large trades. What is the difference between positive slippage, no slippage, and negative slippage? When slippage occurs, it is usually negative, meaning you paid more for the asset than you wanted to, though at some times it can also be positive. When slippage is positive, it means you paid less for the trade than you expected and therefore got a better price. To get a better understanding of this, let's see the image below. How do you calculate slippage? Let's assume that the price of the EUR/USD is 1.05000. After doing your research and analysing the market, you speculate that it’s on an upward trend and long a one-standard lot trade at the current price of EUR/USD 1.05100, expecting to execute at the same price of 1.05100. The market follows the trend; however, it goes past your execution price and up to 1.05105 very quickly—quicker than a second. Because your expected price of 1.05100 is not available in the market, you’re offered the next best available price. For the sake of the example, let's assume that the best next price is 1.05105. In this case, you would experience negative slippage (positive for the broker), as you got in at a worse price than you wanted: 1.05100 – 1.05105 = -0.00005, or -0.5 pips. On the other hand, let’s say your trade was executed at 1.05095. You would then experience positive slippage (negative for the broker), as you got in at a cheaper price than you wanted: 1.05100 – 1.05095 = +0.00005, or +0.5 pips. Negative Slippage Example Is slippage a technical glitch in a broker’s software, or is it built and designed to bring in extra revenue? There are popular beliefs that slippage is a software glitch or that it is made just to give brokers and liquidity providers extra revenue. This is not true, as slippage is something that is unavoidable. There are times when the markets are extremely volatile and price movements are too quick due to a lack of liquidity. Slippage does bring in extra revenue for brokers and liquidity providers, but you need to remember that slippage goes both ways; while brokers and liquidity providers will generate profits from negative slippage, they will also generate losses from positive slippage. Though there are times when brokers (very rare) use price manipulation on their clients to generate additional revenue (more on this later).  How can a trader avoid or minimise slippage? While slippage is impossible to fully avoid, there are a few things you can do to minimise the impact of slippage and protect yourself as much as possible in the markets, including using stop-loss orders to limit their exposure and placing orders during less volatile times. Stop-loss orders are instructions to your broker to immediately exit a trade if it reaches a certain price. By using stop-loss orders, you can limit your losses if the market moves against you. High liquid markets such as Forex enable you to take advantage of market swings to enter and exit trades rapidly, limiting your exposure to the market but also increasing the risk that your stop-loss order may not be executed at the price you expect if the market moves quickly against you. Additionally, there are some brokers that offer traders guaranteed stop-loss orders called 'Guaranteed Stop Orders' (GSOs), meaning that the stop-loss price is guaranteed, which makes the trader unaffected by slippage when getting stopped out. Another way to reduce the impact of slippage is to trade during less volatile times. The forex market is open 24 hours a day, but not all hours are equal. There are times when there are hardly any trading volumes being generated, and you want to avoid trading during this time at all costs as trading spreads will be wider and you will most likely get slipped due to the lack of liquidity in the markets. The best times to trade are usually when the market is most active, which is typically during specific trading sessions such as the Eurpoean or US trading sessions. To summarise, to minimise slippage, you should: What is slippage tolerance, and how should you factor that into account with regard to your stop-loss and risk-to-reward calculations? Some brokers will enable a feature called the 'Market Order Deviation Range' where the trader can adjust the slippage's maximum deviation. This is done so a trader can estimate his or her tolerance to slippage. For example, if you set the maximum deviation to 3 pips, the order will be filled as long as the slippage equals 3 or below. If the price slips beyond the set maximum, the order won't be filled. This is an effective way of managing your risk-to-reward calculations because if you have a strict risk-to-reward set-up and do not have much leeway to give in terms of slippage, you can adjust the slippage tolerance setting so that if the trade comes with more slippage than your trade can afford, it will not enter you in the trade. How can a trader tell if his or her broker is being predatory with regard to slippage? Although rare and illegal now that regulators are prevalent in the industry, in some cases, brokers may manipulate prices to cause slippage. This usually happens during times of high volatility when there are a lot of market orders. By creating a large amount of slippage, brokers can increase their profits. Forex brokers that are not regulated by the major governing bodies are more likely to do this. For a broker to gain the regulation of a major governing body, they must adhere to very strict guidelines set out by the regulating authority. Firstly, if you suspect that your broker is manipulating prices, you should immediately look for another broker. If you have evidence of your broker manipulating prices, you should report that broker to the financial authorities. A good way to gauge if a broker is potentially manipulating prices is by requesting a trade journal from them. A good and reputable broker usually offers trade journals to their clients. Trade journals show execution times of trades and will have a comment on the journal if the trade was slipped. On a standard trade journal, slippage comments should not appear there often (unless you are trading at times when the market is volatile, thin, or trading outside liquid hours). A broker that manipulates prices to their clients is usually hesitant to offer trade journals to their clients because it shows this on the trade journals. So if your broker is not willing to share the trade journals with you, you might want to think twice about continuing to trade with them. To add to that, you can also check if your broker is either a market maker or directly connected to the interbank market, as they will handle slippage differently. To recap, slippage is a part of forex, and no trader is immune to getting it. It occurs most often during periods of high market volatility. Though slippage is almost impossible to avoid and can impact your profit and losses, there are a few things you can do to minimise slippage and its impact. This includes the use of limit and stop-loss orders, placing orders outside of volatile market times, avoiding major economic and news events, and only using brokers that are regulated by the major governing bodies. BluetonaFX
Education
by BluetonaFX
14
5 Technical Indicators for Smart TradingNavigating the intricate world of trading requires a keen understanding of technical indicators. These powerful tools serve as guiding stars, illuminating market trends and potential entry or exit points. Today, we unravel 5 top technical indicators that stand as pillars in the realm of trading. Whether you're a beginner seeking foundational knowledge or an experienced trader aiming to refine your strategy, consider these indicators to enhance your analysis. 1. Moving Averages: Riding the Waves of Market Trends Moving Averages (MA) are foundational tools in technical analysis, smoothing out price data to identify trends over specific periods. Simple Moving Averages (SMA) provide straightforward trend indications, while Exponential Moving Averages (EMA) offer more weight to recent prices, making them highly responsive to market shifts. Traders often use crossovers between different MAs to pinpoint entry and exit points and utilize different lengths on different time frames. One common way traders use MA’s is to identify the overall trend using one or two moving averages. 2. Relative Strength Index (RSI): Gauging Overbought and Oversold Conditions RSI measures the speed and change of price movements. It oscillates between zero and 100, traditionally using levels of 70 for overbought and 30 for oversold. Traders interpret divergences between RSI and price movements, seeking potential reversal points. Additionally, hidden divergences, where RSI disagrees with the underlying trend, are valuable for trend continuation strategies. 3. Bollinger Bands: Embracing Volatility for Profitable Trades Bollinger Bands consist of a middle line being an MA (often 20 period) and two outer bands representing standard deviations from the middle band. Volatility increases the distance between the bands, offering a visual representation of market volatility. When the price touches the upper band, it signals potential overbought conditions, while touching the lower band indicates potential oversold conditions. Traders also observe "band squeezes" as precursors to significant price movements. 4. Moving Average Convergence Divergence (MACD): Capturing Trend Changes The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that highlights the relationship between two Moving Averages (MAs). The MACD line represents the difference between a short-term EMA (often 12 periods) and a long-term EMA (typically 26 periods). The signal line, usually a 9-period EMA of the MACD line, acts as a trigger for buy and sell signals. Traders observe MACD crossovers, where the MACD line crosses the signal line, as potential entry points. Additionally, MACD histogram bars visualize the distance between the MACD and its signal line, offering insights into the strength and direction of a trend. By understanding these components, traders gain a nuanced understanding of potential trend changes and momentum shifts. 5. Average Directional Index (ADX): Measuring Trend Strength The Average Directional Index (ADX) is a trend strength indicator that quantifies the strength of a market trend without specifying its direction. Typically, an ADX above 25 indicates a strong trend, while below 20 suggests a weak trend. Traders use ADX crossovers and divergences with the price chart to distinguish between trending and ranging market conditions. A rising ADX suggests a strengthening trend, while a falling ADX may indicate a weakening trend strength. Combining ADX with other technical indicators enhances a trader's ability to identify robust trends and potential reversals, providing a more comprehensive view of market dynamics. Wrapping Up: This article scratches the surface of the indicators listed, there are whole books written on some of them. We have gone more in-depth with most of these indicators in our previous articles. We have linked those articles below if you would like to learn more about any of these foundational indicators. Remember, while these indicators provide valuable data, combining them with a robust risk management strategy, other indicators for confirmation, and a deep understanding of market fundamentals ensures a holistic approach to successful trading. Happy Trading!
NASDAQ:AMZNEducation
by LeafAlgo
Learn 2 Essential Elements of Trading In the today's post, we will discuss how trading is structured , and I will share with you its 2 key milestones. Trading with its nuances and complexities can be explained as the interconnections of two processes: trading rules creation and trading rules following. 1️⃣ With the trading rules, you define what you will trade and how exactly, classifying your entry and exist conditions, risk and trade management rules. Such a set of consistent trading rules compose a trading strategy. For example, you can have a following trading plan: you trade only gold, you analyze the market with technical analysis, you buy from a key support and sell from a key resistance on a daily, your entry confirmation is a formation of a reversal candlestick pattern. You set stop loss above the high/low of the pattern, and your target is the closest support/resistance level. Here is how the trading setup would look like. In the charts above, all the conditions for the trade are met, and the market nicely reached the take profit. 2️⃣ Trading strategy development is a very simple process. You can find hundreds of different ones on the internet and start using one immediately. The main obstacle comes, however, with Following Trading Rules. Following the rules is our second key milestone. It defines your ability to stay disciplined and to stick to your trading plan. It implies the control of emotions, patience and avoidance of rationalization. Once you open a trade, following your rules, challenges are just beginning. Imagine how happy you would feel yourself, seeing how nicely gold is moving to your target after position opening. And how your mood would change, once the price quickly returns to your entry. Watching how your profits evaporate and how the initially winning position turns into a losing one, emotions will constantly intervene. In such situations, many traders break their rules, they start adjusting tp or stop loss or just close the trading, not being able to keep holding. The ability to follow your system is a very hard skill to acquire. It requires many years of practicing. So if you believe that a good trading strategy is what you need to make money, please, realize the fact that even the best trading strategy in the world will lose without consistency and discipline. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
AUDUSD... look for the SELL setup now!Part 1 of the buy2sell setup is complete. +50 pips Now, we look for the sell setup. Target will be the low. There are two FVGs to look for a valid setup. I'm looking for the sweep of a high, a bearish displacement that breaks market structure and leaves a FVG, then a pullback to that FVG for the entry. Like this video if you found a benefit in it. Consider subscribing to my channel if you like my content and want more. Thank you.
Short
by RT_Money
8
SMC Trading Basics. Change of Character - CHoCH In the today's post, we will discuss one of the most crucial concepts in SMC - Change of Character. Change of Character relates to market trend analysis. In order to understand its meaning properly, first, we will discuss how Smart Money traders execute trend analysis. 🔘 Smart Money Traders apply price action for the identification of the direction of the market. They believe that the trend is bullish , if the price forms at least 2 bullish impulse with 2 consequent higher highs and a higher low between them. The market trend is considered to be bearish , if the market forms at least 2 bearish impulses with 2 consequent lower lows and a lower high between them. Here is how the trend analysis looks in practice. One perceives the price action as the set of impulse and retracement legs. According to the rules described above, USDCAD is trading in a bullish trend because the pair set 2 higher lows and 2 higher highs. 🔘Of course, trends do not last forever. A skill of the identification of the market reversal is a key to substantial profits in trading. Change of Character will help you quite accurately identify a bullish and bearish trend violation. 📉In a bearish trend , the main focus is the level of the last lower high. While the market is trading below or on that, the trend remains bearish . However, its bullish violation is a very important bullish signal, it is called a Change of Character, and it signifies a c onfirmed violation of a bearish trend. In a bearish trend , CHoCH is a very powerful bullish pattern. Take a look, how accurate CHoCH indicated the trend reversal on Gold. After a massive selloff, a bullish breakout of the level of the last lower high confirmed the initiation of a strong bullish wave. 📈In a bullish trend , the main point of interest is the level of the last higher low . While the price is trading above that or on that, the trend remains bullish . A bearish violation of the last higher low level signifies the violation of a current bullish trend. It is called a Change of Character, and it is a very accurate bearish pattern. Take a look at the example on Dollar Index below. In a bullish trend, bearish violation of the last higher low level quite accurately predicted a coming bearish reversal. Change of Character is one of the simplest, yet accurate SMC patterns that you should know. First, learn to properly execute the price action analysis and identify HH, HL, LL, LH and then CHoCH will be your main tool for the identification of the trend reversal. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
7
Learn 6 Common Beginner Trading Mistakes In the today's post, we will discuss very common beginner's mistakes in trading that you should avoid. 1. No trading plan 📝 That is certainly the TOP 1 mistake. I don't know why it happens but 99% of newbies assume that they don't need a trading plan. It is more than enough for them to watch a couple of educational videos, read some books about trading and Voilà when a good setup appears they can easily recognize and trade it without a plan. Guys, I guarantee you that you will blow your trading account in maximum 2 months if you keep thinking like that. Trading plan is the essential part of every trading approach, so build one and follow that strictly. 2. Overtrading 💱 That mistake comes from a common newbies' misconception: they think that in order to make money in trading, they should trade a lot. The more they trade, the higher are the potential gains. Same reasoning appears when they choose a signal service: the more trades a signal provider shares, the better his signals are supposed to be. However, the truth is that good trades are very rare and your goal as a trader is to recognize and trade only the best setups. While the majority of the trading opportunities are risky and not profitable. 3. Emotional trading 😤 There are 2 ways to make a trading decision: to make it objectively following the rules of your trading plan or to follow the emotions. The second option is the main pick of the newbies. The intuition, fear, desire are their main drivers. And such an approach is of course doomed to a failure. And we will discuss the emotional trading in details in the next 2 sections. 4. Having no patience ⏳ Patience always pays. That is the trader's anthem. However, in practice, it is extremely hard to keep holding the trade that refuses to reach the target, that comes closer and closer to a stop loss level, that stuck around the entry level. Once we are in a trade, we want the price to go directly to our goal without any delay. And the more we wait, the harder it is to keep waiting. The impatience makes traders close their trades preliminary, missing good profits. 5. Greed 🤑 Greed is your main and worst enemy in this game. It will pursue you no matter how experienced you are. The desire to get maximum from every move, to not miss any pip of profit, will be your permanent obstacle. Greed will also pursue you after you close the profitable trades. No matter how much you win, how many good winning trades you catch in a row, you always want more. And that sense main lead you to making irrational, bad trading decision. 6. Big Risks 🛑 Why to calculate lot size for the trade? Why even bother about risk management? These are the typical thoughts of the newbies. Newbie traders completely underestimate the risks involved in trading and for that reason they are risking big. I heard so many times these stories, when a trading deposit of a trader is wiped out with a one single bad trade. Never ever risk big, especially if you just started. Start with a very conservative approach and risk a tiny little portion of your trading account per trade. Of course there are a lot more mistakes to discuss. However, the ones that I listed above at the most common and I am kindly recommending you to fix them before you start trading with a substantial amount of money. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
8
The Trader's Odyssey: Navigating the Financial Seas 🌊💼📈 The journey of a trader is a dynamic and often challenging expedition through the world of finance. This comprehensive guide embarks on the trader's odyssey, shedding light on the trials, triumphs, and key waypoints that define the path to success. Join us as we navigate the intricate journey of a trader, enriched with real-world examples and insights to help you embark on your own trading adventure. The Trader's Voyage: Charting the Course The Aspiring Trader's Dream 🌟 Every trader begins with a dream—a vision of financial success and independence. This dream motivates aspiring traders to explore the markets and embark on their journey. Learning the Ropes: Education and Preparation 📚 Successful traders invest time in understanding the financial markets and the tools they'll be using. They undertake courses, read books, and follow the guidance of experienced mentors to build a solid foundation. Example 1: John's Journey Navigating the Markets: Strategies and Techniques 🗺 As traders gain knowledge, they develop and fine-tune trading strategies. This phase includes identifying preferred asset classes, risk management plans, and the use of technical and fundamental analysis. Example 2: Sarah's Expedition Weathering the Storms: Trading Psychology 🌦 Trading psychology plays a significant role in a trader's journey. The ability to control emotions, handle losses, and maintain discipline is paramount for success. Making Landfall: Achieving Consistency and Adaptation 🏝 Consistent profitability is the goal. Traders need to adapt to changing market conditions and continuously refine their strategies. The Elusive Treasure: Risk and Reward 💰 The trader's journey involves assessing and managing risk. Success requires striking a balance between risk and reward, understanding that losses are part of the voyage. The journey of a trader is a remarkable expedition filled with challenges and opportunities. Through education, strategy development, psychological resilience, and continuous adaptation, traders can chart a course towards their financial goals. Just like sailors navigating uncharted waters, traders brave the ever-changing seas of the financial markets, and their success depends on their skills, knowledge, and unwavering commitment. May your journey be filled with favorable winds and profitable horizons. 🌊💼📈 Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
🔥 Learn To Trade With FT: Fibonacci RetracementsAs of today I will start a new series for the TradingView community: Learn To Trade With FieryTrading. I will be doing deep-dive analyses on different trading strategies to explain how they work and especially why they work. The idea behind this overview is to make you a better, more well informed trader. If you learn anything from this post, please give it a like! Learn To Trade With FT: Fibonacci Retracement Entry Introduction: Fibonacci retracements are a popular technical analysis tool used by traders to identify potential support and resistance levels in financial markets. Derived from the Fibonacci sequence, this tool can help you make more informed trading decisions. In this guide, we'll walk you through how to use Fibonacci retracements effectively and how to draw them accurately. Understanding the Fibonacci Sequence: Before diving into Fibonacci retracements, it's essential to understand the Fibonacci sequence. The sequence begins with 0 and 1, and each subsequent number is the sum of the two preceding ones. The sequence goes like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. The ratios derived from these numbers are used in Fibonacci retracements. The primary Fibonacci ratios used in retracements are: 0.236 (23.6%) 0.382 (38.2%) 0.500 (50.0%) 0.618 (61.8%) 0.786 (78.6%) 1.000 (100.0%) How to Draw Fibonacci Retracements: Select a Trend: Identify a significant price trend (either up or down) on your chart. Fibonacci retracement reversals usually work better in strong trends. Choose the Swing Points: Locate the swing points of the trend. A swing low is the lowest point in an upward trend, and a swing high is the highest point in a downward trend. Draw the Fibonacci Lines: Using Tradingview's Fibonacci Retracement Tool (ALT+F), draw a horizontal line from the swing low to the swing high (for an uptrend) or from the swing high to the swing low (for a downtrend). Identify Key Levels: The lines you've drawn will automatically divide the trend into various retracement levels, as per the Fibonacci ratios mentioned earlier. The most common levels to pay attention to are the 38.2%, 50%, and 61.8% retracement levels. Learn To Trade Once you have spotted a strong trend on the chart, it's to be expected that the price will pull back somewhat, which is where you will be waiting as an expert trader. Once the price starts pulling back, look at which Fibonacci Retracement it will stick. Once the price starts trading horizontally for a while, there's a decent probability that the Fibonacci Retracement will hold and that the price will continue its longer-term trend from there onwards. To make this strategy even better, try to combine it with the RSI. A severely oversold RSI after a pull-back from a strong bullish trend is likely to find support at one of the key Fibonacci Retracements. Put it on your chart and see for yourself! Note: this strategy is not a one-size-fits-all solution. Learn how to use it in conjunction with your current strategies. Use this strategy to create order in a world of chaos. Why Does This Work Like many other trading indicators and strategies, it's a self fulfilling prophecy . If a lot of people is watching a certain indicator or line, it's more likely that they will react to it. Same reason that supports and resistances often cause reversals, same goes for longer period moving averages like the 50 and 200 period MA's. Real Life Examples In the screenshots below I'm going to show that the 0.382 / 0.5 / 0.618 Fibonacci Retracements offer strong support and resistance on Bitcoin's chart in practically every timeframe. Skilled traders were ready for the Fibonacci Retracements and got good entries in their trades. Next time this can be you! This strategy works on every asset. Apply correct risk-management on your trades by always using a stop-loss.
COINBASE:BTCUSD
by FieryTrading
47
Learn What Time Frame to Trade If you just started trading, you are probably wondering how to choose a trading time frame . In the today's post, I will go through the common time frames , and explain when to apply them. 1m; 5m, 15m Time Frames These 4 t.f's are very rapid and are primarily applied by scalpers. If your goal is to catch quick ebbs and flows within a trading session, that is a perfect selection for you. 30m, 1H Time Frame These 2 are perfectly suited for day traders. Executing the analysis and opening the trades on these time frames, you will be able to catch the moves within a trading day. 4h, Daily Time Frames These time frames are relatively slow. They are mostly applied by swing traders, who aim to trade the moves that last from several days to several weeks. Weekly, Monthly Time Frames These time frames reveal long-term historical perspective and are mostly used by investors and position traders. If your goal is to look for buy & hold assets, these time frames will help you to make a reasonable decision. 📝When you are choosing a time frame to trade, consider the following factors : 1️⃣ - Time Availability How much time daily/weekly are you able to sacrifice on trading? Remember a simple rule: lower is the time frame, more time it requires for management. 2️⃣ - Risk Tolerance Smaller time frames usually involve higher risk, while longer-term time frames are considered to be more conservative and stable. 3️⃣ - Your Trading Goals If you are planning to benefit from short term price fluctuations you should concentrate your attention on lower time frames, while investing and long-term capital accumulation suite for higher time frames. Time frame selection is nuanced and a complex topic. However, I believe that these simple rules and factors will help you to correctly choose the one for you. ❤️Please, support my work with like, thank you!❤️
TVC:DXYEducation
by VasilyTrader
4
4 Classic Bullish Patterns EVERY TRADER Must Know In the today's post, we will discuss accurate bullish price action patterns that you can apply for trading any financial instrument. 1️⃣Bullish Flag Pattern Such a pattern appears in a bullish trend after a completion of the bullish impulse. The flag represents a falling parallel channel. The market corrects itself within. Bullish breakout of the resistance line of the channel is a strong bullish signal that can be applied for buying the market. Best entries should be placed immediately after a breakout or on a retest. Safest stop loss is below the lows of the flag. Target - the next key resistance. Here is the example of a bullish flag pattern that was formed on Gold on a 1H time frame. As you can see, after the breakout of the resistance of the flag, a strong bullish rally initiated. 2️⃣Ascending Triangle Such a pattern forms in a bullish trend on the top of the bullish impulse. The market starts consolidation, respecting the same highs and setting higher lows simultaneously. The equal highs compose a horizontal resistance that is called the neckline. Its breakout is an important sign of strength of the buyers. Buy the market aggressively after a violation, or set a buy limit order on a retest. Stop loss should lie at least below the last higher low within a triangle. Target - the next strong resistance. Take a look at that ascending triangle formation on EURUSD. Bullish breakout of its neckline was a perfect bullish signal. 3️⃣Falling Wedge That formation is very similar to a bullish flag pattern. The only difference is that the price action within the wedge is contracting so that the trend line of the wedge are getting closer to each other with time. Your signal to buy is a bullish breakout of the resistance of the wedge. Stop loss is strictly below its lows. Target - the next key resistance. GBPUSD formed a falling wedge on a 4H time frame, trading in a strong bullish trend. You can behold how nicely the price bounced after a breakout of its upper boundary. 4️⃣Horizontal Range Similarly to the ascending triangle, the horizontal range forms at the top of a bullish impulse in a bullish trend. The price starts consolidation, then, setting equal highs and equal lows that compose a horizontal channel. Breakout of the resistance of the range is a strong trend-following signal. Buy the market aggressively after a breakout or conservatively on a retest. Stop loss will lie below the lows of the range. Target - the next strong resistance. Dollar Index formed a horizontal range, trading in a strong bullish trend. Breakout of the resistance of the range triggered a bullish rally. The best part about these patterns is that they can be applied on any time frame. Whether you are a scalper, day trader or swing trader, you can rely on these formations and make consistent profits.
FOREXCOM:XAUUSDEducation
by VasilyTrader
9
📝 ALWAYS review your trades and improve your trading strategy.ALL your trades should get a good in-depth review. Unless, of course, you're just gambling, then the market isn't for you, and you're likely not even using TradingView -- because why would you need a chart? 🙂 If you make a red trade, review it, do better next time. If you make a green trade, but you were like this the whole time: :sweating: ... chances are you were lucky. Review it, do better next time. If you make a green trade and it doesn't "continue", so to speak, either you knew exactly what you were doing (nice!), or you were lucky. Review it, do better next time. If you make a GREAT trade and it continues to RIP after (aka "left gains on the table"), NICE JOB.. Review it. Do it again. And again. Keep reviewing all your trades till you have a bullet proof strategy. There is no other way to advance as a trader. If you don't review your trades, you will not improve. Open your mind to learning from other traders. You may be better than them in some things, but they may be better than you in some things. Kobe, Lebron, Ronaldo, Messi, Brady, and every athlete you can name has went to practice every day throughout his/ her career. Pros don't stop practicing. Neither should you. In the referenced trade, I made a quick +10% in NASDAQ:QQQ calls. Although the intention was to scalp, I got lucky to not get burned. Here's how I normally review my trades: Remember to NOT force trades. There's no point. I warned against forcing any trades yesterday in my quad/ triple witching post. Volatility is no joke. More volatility coming next week. Remember that. Follow for more insight & share/ like this with others who can benefit. Welcome to join my community. Link below.
CME_MINI:NQ1!Education
by kingdips
Is US30 low at 34024 going to hold and confirm weekly bottom?(4)We have entered this trade on 4h confirmation bar and it has now gone onto confirm the 2nd bottom on the daily timframe. The weekly potential bottom is still holding. For it to have a higher probability to confirm the weekly bottom, it has now got to take out the last swing high as shown in the image. Let's see how the trade plans out according to our smart money framework indicator. US30(Long) E - 34607 SL - 34023 T - To be confirmed(TBC) We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look on our channel profile or at our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com
CAPITALCOM:US30Long
by masterthemarkets2010
A Simple Method Of Evaluating Trade Setups For Everyone - IIThis second video reinforces the concepts supporting my simple method of validating or invalidating trade setups using price channels, Fibonacci price theory, Stochastics, RSI, and simple price metrics. Anyone can do this - it just takes a little patience and learning. The trick to the ENTRY is to WAIT to see how price reacts near support/resistance. REJECTION is very important in terms of seeing price REJECT near the price channels and near support/resistance. Learn to use these techniques to help you learn to become a better trader. Hope you enjoy.
NYSE:FEducation
by BradMatheny
Learn the 4 Best Strategies to Maximize Your Profits Today In the today's article, we will discuss 4 classic yet profitable forex and gold trading strategies. 1️⃣Pullback Trading Pullback trading is a trend-following strategy where you open the positions after pullbacks. If the market is trading in a bullish trend, your goal as a pullback trader is to wait for a completion of a bullish impulse and then let the market correct itself. Your entry should be the assumed completion point of a correctional movement. You expect a trend-following movement from there. In a bearish trend, you wait for a completion of the bearish impulse, let the market retrace, and you look for short-entry after a completion of the retracement leg. Here is the example of pullback trading. On the left chart, we see the market that is trading in a bearish trend. A pullback trader would short the market upon completion of the correctional moves. On the right chart, I underlined the buy entry points of a pullback trader. That strategy is considered to be one of the simplest and profitable and appropriate for newbie traders. 2️⃣Breakout Trading Breakout trading implies buying or selling the breakout of a horizontal structure or a trend line. If the price breaks a key support, it signifies a strong bearish pressure. Such a violation will trigger a bearish continuation with a high probability. Alternatively, a bullish breakout of a key resistance is a sign of strength of the buyers and indicates a highly probable bullish continuation. Take a look, how the price broke a key daily resistance on a daily time frame. After a breakout, the market retested the broken structure that turned into a support. A strong bullish rally initiated from that. With the breakout trading, the best entries are always on a retest of a broken structure. 3️⃣Range Trading Range trading signifies trading the market that is consolidating. Most of the time, the market consolidates within the horizontal ranges. The boundaries of the range may provide safe points to buy and sell the market from. The upper boundary of the range is usually a strong resistance and one may look for shorting opportunities from there, while the lower boundary of the range is a safe place to buy the market from. EURCAD pair is trading within a horizontal range on a daily. The support of the range is a safe zone to buy the market from. A bullish movement is anticipated to the resistance of the range from there. Taking into considerations, that the financial instruments may consolidate for days, weeks and even months, range trading may provide substantial gains. 4️⃣Counter Trend Trading Counter trend trading signifies trading against the trend. No matter how strong is the trend, the markets always trade in zig-zags. After impulses follow the corrections, and after the corrections follow the impulses. Counter trend traders looks for a completion of the bullish impulses in a bullish trend to short the market; and for a completion of bearish impulses in a downtrend to buy it. Here is the example of a counter trend trade. EURJPY is trading in a bullish trend. However, the last 3 bearish moves initiated from a rising trend line. For a trader, shorting the trend line was a perfect entry to catch a bearish move. Such trading strategy is considered to be one of the most complicated, because one goes against the crowd and overall sentiment. With the experience, traders may combine these strategies. Try them all, and find the one that suites you the most. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
37
Learn the KEY PRINCIPLES of Technical Analysis In the today's article, we will discuss the absolute basics of trading - 3 key principles of technical analysis. 1️⃣History Repeats History tends to repeat itself in the Forex market. Certain trends are cyclical and may reemerge in a predictable manner, certain key levels are respected again and again over time. Take a look at the example: Silver perfectly respected a historical horizontal resistance in 2011 that was respected in 1980 already. Moreover, the price action before and after the tests of the underlined zone were absolutely identical. 2️⃣Priced In All relevant information about a currency pair: economical and political events, rumors, and facts; is already reflected in a price. When the FED increased the rate 26th of July by 25 bp, EURUSD bounced instead of falling. Before the rate hike, the market was going down on EXPECTATIONS of a rate hike. The release of the news was already price in. 3️⃣Pattern DO Work Some specific price models can be applied for predicting the future price movements. Technicians strongly believe that certain formations - being applied and interpreted properly, can give the edge on the market. Depending on the trading style, different categories of patterns exist: harmonic patterns, price action patterns, wave patterns, candlestick patterns... Above, I have listed various price action patterns that are applied by many traders and investors as the main tool for analyzing the financial markets. If you believe in these 3 principles , you are an inborn technician! Study technical analysis and learn to apply these principles to make money in trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
8
Your ULTIMATE Guide For Time Frames in Trading If you just started trading, you are probably wondering what time frames to trade. In the today's post, I will reveal the difference between mainstream time frames like daily, 4h, 1h, 15m. Firstly, you should know that the selection of a time frame primarily depends on your goals in trading. If you are interested in swing trading strategies, of course, you should concentrate on higher time frames analysis while for scalping the main focus should be on lower time frames. Daily time frame shows a bigger picture. It can be applied for the analysis of a price action for the last weeks, months, and even years. It reveals the historical key levels that can be relevant for swing traders, day traders and scalpers. The patterns that are formed on a daily time frame may predict long-term movements. In the picture above, you can see how the daily time frame can show the price action for the last years, months and weeks. In contrast, hourly time frame reflects intraweek & intraday perspectives. The patterns and key levels that are spotted there, will be important for day traders and scalpers. The setups that are spotted on an hourly time frame, will be useful for predicting the intraday moves and occasionally the moves within a trading week. Take a look at the 2 charts above, the hourly time frame perfectly shows the market moves within a week and within a single day. 4H time frame is somewhere in between. For both swing trader and day trader, it may provide some useful confirmations. 4H t.f shows intraweek and week to week perspectives. Above, you can see how nicely 4H time frame shows the price action on EURUSD within a week and for the last several weeks. 15 minutes time frame is a scalping time frame. The setups and levels that are spotted there can be used to predict the market moves within hours or within a trading session. Check the charts above: 15 minutes time frame shows both the price action within a London session and the price action for the last couple of hours. It is also critical to mention, that lower is the time frame, lower is the accuracy of the patterns and lower is the strength of key levels that are identified there. It makes higher time frame analysis more simple and reliable. The thing is that higher is the time frame, more important it is for the market participants. While lower time frames can help to predict short term moves, higher time frames are aimed for predicting long-term trends.
OANDA:XAUUSDEducation
by VasilyTrader
10
Trading Exposed: The Hard-Hitting Truth Behind the 99% Who Fail The picture above completely represents the real nature of trading: We all came here because we all wanted easy money. Being attracted by catchy ads, portraying the guys on lambos, wearing guccies and living fancy lives, we jump into the game with high hopes of doubling our tiny initial trading accounts. However, the reality quickly kicks in and losing trades become the norm. The first trading account will most likely be blown. In just one single month, 40% of traders will be discouraged and abandon this game forever. The rest will realize the fact that the things are not that simple as they seemed to be and decide to start learning. The primary obstacle with trading education though is the fact that there are so much data out there , so many different materials, so many strategies and techniques to try, so the one feels completely lost . And on that stage, one plays the roulette: in the pile of dirt, he must find the approach that works. 80% of the traders, who stay after the first month, will leave in the next 2 years. Unfortunately, the majority won't be able to find a valid strategy and will quit believing that the entire system is the scam. After 5 years, the strongest will remain. The ones that are motivated and strong enough to face the failures. With such an experience, the majority of the traders already realize how the things work. They usually stuck around breakeven and winning trades start covering the losing ones. However, some minor, tiny component is still missing in their system. They should find something that prevents them from becoming consistently profitable. Only 1% of those who came in this game will finally discover the way to make money. These individuals will build a solid strategy, an approach that will work and that will let them become independent. That path is hard and long. And unfortunately, most of the people are not disciplined and motivated enough to keep going . Only the strongest ones will stay. I wish you to be the one with the iron discipline, titanic patience and nerves of steel.
OANDA:XAUUSDEducation
by VasilyTrader
10
Gold BUYGold is continuously falling and now has reached on its daily support level around 1905 to 1910 also gold has formed a trendline structure which also followed its sell baised but it seems like on daily level of support price is going to break above its H1 trendline also on daily level price is also taking support on 200EMA which is also a good sign for BUY side We will waiting and watching price if it breaks above 1910 level with a price action Bullish engulfing Morbozu we will buy this pair Good luck 🤞
OANDA:XAUUSDLong
by Wakeel_Saab
Blueprint to Success: How to Master Trading Sessions & Planning👑 Pre-Trading Sessions & Planning: 🔥 Key Details + Concepts -------------------------------------- (Psychological, Technical & Concepts): 🟠 Psychological: - Don’t trade if your emotions aren’t aligning with what is on the screen. - If you’re not super happy about entering, and you don’t fully accept the loss, don’t take the trade. - Don’t ‘force’ something to work because it won’t. - Trade as if you are looking for buys and sells in your markup. This removes mental bias, and effectively emotion in trading. 🟠 Technical: - Cause is the most important factor in trading – find what caused the injection of volume (‘follow the money’). Did it get effectively mitigated? Did it leave imbalance? … Find that block of orders and don’t get liquidated - The more inducement respected, the more liquidity to take out, the bigger the move - Zones to trade from must have resting orders to mitigate. Make sure they have inducement above/below (or create it), and they are the cause of structural breaks, demand/supply fails etc - Start analysing on the daily first! Find the intention of price and follow it - Mark out S/R – (support becomes resistance levels vice versa) as that level will be liquidated to usually meet our orderblock above/below it - Previous daily/weekly highs/lows can act as strong structural inducement points - Price needs reason to move to certain levels – imbalance - Often when we have a low Phase 2 inducement, we will sweep it’s orderblock as a SMT because of the zone’s large imbalance = lack of inducement - If you don’t spot the buyers/sellers who got swept before entering, you’ll become liquidated - Mark out pullback zones too - If we break our LPOD/S, we are effectively going to run through all mitigated price until the next valid orderblock - Ensure you wait for your respective time-frame reaction (e.g., don’t look for a 1m reversal from a 4h zone) - If price taps the outside of a zone but doesn’t enter it, it can still be used as inducement - We don’t recommend stacking countertrend trades - A mitigation can be confirmed when price sweeps into its previous range over another small-range inducement. 🟠 Concepts - The demand/supply that took out the Phase 1 inducement then gets broken confirms a shift in market structure. If it is respected, we can trade a continuation. - A ‘slight mitigation’ is when price sweeps liquidity into a range, but doesn’t properly mitigate the orderblock where the high-volume orders lie. Even though we may react from there, we can come back to this orderblock and properly mitigate it, using the ‘slight mitigation’ level as a point of inducement. - It is important for the AR (automatic rally) to ‘fail’ in a reversal range after the B/SC (Buyers/sellers climax) as it often grabs the LPOD/S (the last point of demand & supply), so it is successfully mitigated - News candles can be targeted high/lows as they don’t have inducement - Price works with momentum. You will never see something shoot up or down randomly - Refine zones by excluding the inducement it swept before it – draw a line through the orderblock from the inducement it swept. This will refine your orderblock to the pure manipulation *has exceptions* - If an inducement phase isn’t very clean or only sweeps a small range, there will be another opportunity as more manipulation is needed to fuel a larger move - Weak highs and lows are determined after a leg has been properly mitigated; the 5-15m TF is best to determine an active zone - A high/low is likely to be targeted when it wicks the other side’s high/low (to sweep) instead of having a candle closing over (BoS) - The first part of a ChoCh is often formed from Phase 1 inducement getting swept, creating a slight pullback, then breaking it again to hit the refinement Used Word Definitions: - LPOD/S – Last point of demand/supply - ChoCh – Change of character (a sweep of liquidity then a break of structure) - BoS – Break of structure (a failure of supply or demand creating a price leg break) - OB – Orderblock (a valid zone to trade from) - FVG – Fair value gap (a form of inefficiency/price gaps in the market) - IMB – Imbalance (a form of inefficiency/price gaps in the market) - IPA – Inefficient price action (imbalance) - S&D – Supply and demand (the levels of buying and selling) - IFC – Institutionally funded candle (a candle created by institutions to push price to a certain area) - IPB – Inducement Pullback (The level where price pullbacks before a continuation) - PA – Price action (how price is moving) - B2S – Buy to sell (often seen as a wick to mitigate or sweep) - S2B – Sell to buy (often seen as a wick to mitigate or sweep) - AOI – Area of interest (an area of price that is reactive or tradable) - POI – Point of interest (a specific point where price is reactive or tradable) - IND – Inducement (placement of liquidity that is used to manipulate traders) - EQH/L’s – Equal highs/lows - SMT – Smart money trap (a zone that doesn’t have liquidity under/above it, and gets run, trapping SMC traders) - MSS - Market Structure Shift (a confirmed shift in the markets direction towards the next reversal zone) - Vectors – Large-bodied, impulsive candles that are to push price to its purposeful target - V-SR – V-Shaped Recovery (quick movement of price to enter and exit a zone) - TF – Time frame - FR – Failed Reaction (Internal supply/demand failure) - OF – Order-flow (the movement of money through the market) - True Zone – The actual orderblock that will be used which holds the high volume or orders - PDH/PWH or PDL/PWL – Previous daily/weekly high/low 🟠 Colour Codes: 🟠 Time and Price (Times in AEST): ASIA > FRANKFURT > LONDON > NEW YORK - Asia: – Asia is important to analyse as it can create the model for New York and London its purpose is to create liquidity above and below its session. Mark the bottom and top to create a range, as well as the midline. Often, price will aim to take a high/low or both (AWS) starting with Frankfurt + London Open. If Asia takes a form of liquidity and is impulsive, a continuation trade can be played. - Frankfurt: - Frankfurt often prepares London for its main movement of the day. It often does this by taking out the high or low of Asia to create an orderblock mitigation for London, creates more Phase 1 inducement for London to take out, or helps to move price to an already-made valid orderblock. - London: - When London opens, there is a volatility spike in price. London’s purpose is to attack the liquidity created during Asia. Often, London creates a continuation mitigation after 1.5 hours, but can also contribute to a larger liquidity build-up for New York. Entries that induce + mitigate can be taken at the open (sometimes +30). After 2 hours of opening, we often see a shift in direction. - Pre-NY: - Before New York opens, we often see an impulsive move that directly contributes to the New York session. Sometimes, we can create a valid zone for New York to play from by mitigating high-volume orders. Most often, we see an impulse in price to move into a higher timeframe orderblock to then become targeted liquidity, or we create more low timeframe reversal inducement to then be swept. - New York: –We open with a volatile shift of momentum. New York’s purpose is to attack the liquidity created during the London session, or to create a continuation from London. The New York trap usually starts 1 hour after opening and reverses. After 1.5 hours of opening (MMM), we often see a clean mitigation of the ‘correct’ orderblock and liquidate the opening move. Sometimes, New York Open can mitigate the high-volume orders and continue in the correct direction of the day. - London Close – mitigates the peak of NY open / Reversal for a continuation in NY open direction. Sometimes there is a mitigation-inducement before London Close. - Magic Minute Mitigations (MMM) - refer to high probability trading times that mitigate active continuation orderblocks. We can best see these 1.5 hours after London and New York Opens – rarely, we can see these 3.5 hours after these opens instead. In the next post I will continue with my 8-step daily markup process and my Asian session manipulation formulas. If you found this article helpful, please share it with your friends and leave a comment! Cheers!
Education
by algoat