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Reversal

GBPAUD: A Case Study in Midpoint ConfluenceProbability of a midpoint projecting a valid future reversal point is increased if multiple midpoints show confluence at the same zone. Case in point, here the Swing low A, followed by midpoint E (breakout midpoint), projected a swing high at F. However, there was a smaller swing along the way which also hinted at swing high F: Swing high B, followed by midpoint C (split between the two strongest down bars in that swing) suggested a swing low at point D. This was a valid buy area on it's own. But better yet, the 1.618 extension of swing B-C-D gave additional credibility to the expected swing high of swing A-E-F. When multiple different swings line up and point to similar reversal zones such as here, the market can be considered to be in a very harmonious state and such setups have better odds of resulting in a winning trade.
Education
by CryptoBanker
How To Read Charts (Sec. 2) Mastering Reversals, Trends & RangesHey Traders, Here is Section 2 of the "How to read structure (Charts) Tutorial". In this Section, you will learn some of the methods that professional trend traders use to bring home a profit week after week, month after month, & year after year! In this Section, I will be explaining- - The Characteristics of a healthy trend (Chart 6) - A simple method that makes identifying trend reversals easy (Chart 7) - Why you should not rush your trades plus when & why you should have a neutral biased as a trend trader (Chart 8) - Mastering Reversals & how to trade them properly (Chart 9) - Continuation of GBPUSD Structure Analysis ~ How To Identify & Avoid Trading Ranges To Improve Your Trend Trading Strategies ~ The Importance Of A Candles Closing Price. (Chart 10) - One of my trend trading rules to avoid trading ranges & Intro to the 1st part of Section 3. (Chart 11) Section 1 of this tutorial is linked below. Please start with section 1 as it will lay some of the ground work for this section & will also show these methods on actual charts. This section of the tutorial is a breakdown of the methods taught in section 1 and when studied together, can really give you a good understanding of how trends, reversals, ranges etc work. Please feel free to leave feedback below regarding if these tutorials have been helpful. I will be releasing many more of these tutorials in future ideas and your feedback really helps me to improve them! It may take you a couple minutes to get use to the format of these tutorials so take your time & read over the charts multiple times as there is a lot of good information provided within these tutorials. Chart 6- Characteristics of a healthy trend Chart 7- A simple method that makes identifying trend reversals easy Chart 8- Why you should not rush your trades plus when & why you should have a neutral biased as a trend trader Chart 9- Mastering Reversals & how to trade them properly Chart 10- Continuation of GBPUSD Structure Analysis ~ How To Identify & Avoid Trading Ranges To Improve Your Trend Trading Strategies ~ The Importance Of A Candles Closing Price. Chart 11- One of my trend trading rules to avoid trading ranges & Intro to the 1st part of Section 3. You Have Completed Section 2 Of The "How To Read Structure (Charts) Tutorial. Charts 6-11"! Thank you for taking the time to finish this section of the tutorial! I hope Section 1 and 2 have been helpful to you! In section 3, we will start looking at how you can use price action/structure & the methods taught in this tutorial to design your own trading strategy! After all of the sections are complete, you will have the tools needed to read structure, create your own rules based trading strategy and much more so please stick around as this is only the beginning of a very educational tutorial. Thanks Traders!
Education
by Alec40
16
Scalping with Reversal StrategiesReversal strategies suggest that markets tend to revert, i.e. a negative movement will be followed by a positive movement, and vice versa. To examine whether markets tend to be trend revert or trend succeed (i.e. a positive movement is followed by a positive movement and a negative movement also by a negative one), we need to check historical prices for evidence of such behaviour. Then, we need to examine whether this behaviour is more likely to occur compared to a random selection, such as a coin toss. To do this, we first need to understand the notion of probability. In general, probability is the possibility of an event occurring, expressed as a percentage of total possible events. For example, the probability of tossing a coin and getting heads is the possibility of that event, i.e. 1 out of the 2 possible outcomes (heads or tails). Thus, the overall probability is ½ or 50%. In a similar setting, the probability of getting the number 12 in the roulette is 1 out of a total of 36 outcomes, hence the probability is 1/36, i.e. about 3%. An interesting complication of probabilities is that if they are independent, i.e. if the previous outcome does not affect the current outcome, such as in coin tossing, roulette, and the lottery, then we can simply multiply the events to get total probability. For example, the probability of getting two consecutive heads is ½ multiplied by ½ which gives us a total probability of ¼ or 25%. This is useful in understanding how often price movements can be viewed as random or as following a statistical pattern. To elaborate on this, I have employed EURUSD data to examine whether there is evidence of a reversal activity in the pair. As the table below shows, there is evidence of such behaviour only in the 1-minute chart, where reversals are observed in the data. Otherwise, the percentage of trend reversals appears to be very close to 50%, i.e. being random. EURUSD 1-minute 30-minute 60-minute 4-hour 1-day Probability 42.1% 51.0% 50.6% 50.2% 51.5% Random No Yes Yes Yes Yes The same holds for the USA500 index as the table below shows, albeit it suggests that reversal strategies can be non-random at the 30-minute interval as well. However, despite their statistical appeal, these strategies are not as successful as expected. As the graph in the start of this post shows, the strategy can be successful during some periods while it can be terribly disastrous in others. For example, while it worked for the 1-minute chart in the EURUSD, at times very successful, reaching gains in excess of 3%, it dropped to just above 1% in the end. EURUSD 1-minute 30-minute 60-minute 4-hour 1-day Probability 39.6% 44.9% 48.0% 49.0% 51.1% Random No No Yes Yes Yes The USA500 1-minute and 30-minute charts record a similar response: the 30-minute chart, when the probability is closer to 50%, records much worse performance, while the 1-minute chart provides a good start but ends in disappointment. So what does this tell us? Like all trading strategies, reversal strategies can be successful in some instances and unsuccessful in others. The analytics above suggest that reversal strategies are unsuccessful in longer horizons and hence there appears to be no reason to follow such a strategy. In contrast, 1-minute charts allow for a better implementation of such strategies, as historical data show. The success of the strategy appears to be more pronounced in the EURUSD case, albeit also having its ups and downs. Consequently, in addition to specifying a correct timeframe, traders need to be very careful in drafting their strategy and adjust it quickly to how the market reacts. Remember that no strategy is full-proof and fast adjustment is something which can make or break a trade. Nektarios Michail, PhD Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Education
by HotForex
Triple TOP/BOTTOM Reversal PatternTriple Top is a Bearish Reversal Pattern which means the long term uptrend will be switched into long term bearish trend Triple Top chart Pattern means the price with base candles or wicks must touch 3 times in row same level in form of peaks Peak, correction/re-fuel,peak and so on for three times in row These TOPS will become a strong strong resistance line, if after third peak the resistance line can t broke we will have a nice short oportunity First, we need a confirmation about this Triple Top Pattern so we can entry ONLY when we broke the neckline and the target will be the distance of the neckline and TOP Triple Bottom is a Bullish Reversal Pattern which means after a long downtrend the coin will change their trend to LONG TERM BULLISH We can see in this picture 3 times tried to break the huge support but they can t and after this we can say that was the BOTTOM The price of coin will increase but we can enter into this trade ONLY when we are about the neckline which is a strong resistance If we are closing above neckline(resistance will be transformed into support) and also we can continue to grow Target is the distance from BOTTOM(support) and Neckline
Education
by CryptoRomaniaTD
13 tips for tradersI had this on my hard drive, I thought I would wipe the dust of it and write in in a clean manner in a post, helps me think more clearly. I need, and everyone can benefit from (new intermediate advanced legend even), having all of this in their mind: 1) Advice that trading is 95% psychology ===> Throw it in trash container Worse advice I have ever seen, or I totally missed something. Anyway, simple proof that this is all a load of feces: 5% of the population are psycopaths (not the murdering kind) so if this was that important they would all driving roll royce's. Also I am not a psycho (I think) and I do not have much issues with this... I guess not beeing dumb enough to go ALL IN *100 helps. Also... then, let's just let a bot do the trading. Making lists like this learning more everyday and always evaluating our own performance and track record, filter what does not work in certain market conditions... This matters 10000000 times more than "muh feeling :'(" 2) Look for ideas opposite to yours, especially beginners (less than 1000 hours trading/learning) Watching what others are doing helps, and when you have an idea looking for views opposite to yours really helps. Famous billionaires do this alot. Especially they surround themselves with people that view the world differently. Of course, do not waste time arguing with bagholders, and sadly alot of ideas opposite to yours you might find are trolls drawing arrows pointing up to unrealistic targets, it could even convince you that the "opposition" are clowns and there is no way you could be wrong, so do not fall for that trap. Just because someone is stupid does not mean they are always wrong. Consider bad TA as 50/50. 3) Noobs want a sure thing. Good luck with that one. 4) "It is impossible or super hard to make money you are competing against the best" ==> Trashcan advice... First, for lighting fast scalping they are using microwaves now... You are not going to win, sure. But not only is the competition really not that good (maybe I am a little biased here idk), but you do not even have to compete with them. Big money buys, just follow the momentum, ride on their backs. Forex is full of huge money (central banks, international companies buying a currency) they are not trying to rip traders off by hunting their stops, they actually need to exchange currencies, nothing more. Beeing arrogant and thinking every one is a dumb ape but you is probably a big plus :) All that matters are facts, "Is this pattern profitable?" "What is the winrate?" "What is the risk reward I get on average" "How long does the trade last?" "What are the fees?" "What are the odds of a massive selloff?". 5) "We dropped 90%, this HAS to be the bottom. How much further can we drop?" We can drop another 90%. And another 90%. And another 90%. And so on. I did not find any statistics but I am pretty sure that looking at ANYTHING that lost 90%, you would find that the vast majority of the time it was not "a huge opportunity" well it was, but not for buyers. Afaik some great traders made and make big money by shorting dead trash before it goes to zero. If a company is dead, how do shortsellers find buyers? Because to sell you need a buyer. Well, all the idiots that skipped math class and think "this is a great opportunity". Quit trying to fool me, I am insanely bad at maths, how can you drop 90% if you alreayd dropped 90%? How many more times can we drop 90%? * points and laughs with his redneck friends that only have 5 great-grandparents * x is a real positive number (R, +, .). y is an integer. x^1 > 0 since we have said that x is >0 and x^1 = x Now, consider x^y > 0. If that is the case, x^(y+1) >= 0 since x^(y+1) = x^y * x and the product of 2 positive number is positive. And if the result was 0 then it would mean than 1 of the 2 numbers was 0 (I think I don't need to prove this) so it will be > 0. There are plenty of stories of money managers that fell for "it CANNOT fall lower" and got destroyed. The internet is full of bagholders that get destroyed all the time with that insane logic. I do not even profit from this... Maybe I should rethink my whole strategy, when I see the sheer amount of bagholders with "buy the dip" mentality I could profit from...Might have been wasting my time this whole time when I could just short bagholder crypto's/stocks. Well maybe not crypto's as they are long sideways (complacency) lmao complacency @ -95% :D 6) "Soooo this means... y can be as high as we want it to, or in other words the number of times we can go down 90% before touching 0 is INFINITE." I do not know what the "record" is. I know that some companies have started at 10000$ and more and did not disappear even when their price was at 10 cents, that is a drop of 90% 5 times in a row. There are several examples, but 1 I see alot on social networks (lots of experts were recommanding to buy the dip "opportunity of a lifetime" when it dropped 90%) Of course it made 5 90% drops in a row looking at bottoms, but if we look at bounces from the tops after it bounced, it is obviously going to be more than 5. You just... cannot make this up.. And there are people defending it and claming they did the right thing when they "bought cheap" and are thinking of their yacht color etc. I cannot make this up. 7) Use excel. Have a process. This kind of stuff. Here is what I have for 1 of my strategies, I just wrote it down yesterday, helps me think more clearly and stop thinking about it: Pre-entry: Check previous occurrences on the chart, do some TA. Note where structures are. Entry: Entry is on the level or if we're past it a little after previous low. Target and stop loss: Initial target T1 is next structure, usually 1% for FX. Set stop loss to get a reward:risk of 2. Trade management: Close half at my target 1, stay until final target as long as the price stays above 0,382 to 0.5 fib. Here is an example of a winner I would have shorted following that strategy: Another one: 8) Money is made missing out. You make money when you miss out. Let me type this a second time: YOU MAKE MONEY WHEN YOU MISS OUT "You missed out" that sentence... wow. I do not know about others, but when I miss out a move, I like it, I am happy now, I really am. Because I know I am filtering all the bad trades. If even some good ones get caught, then I must be doing a good strict job right? Let's check the Bitcoin chart real quick. Here are a few moves I missed out: a- False break b- Buy the dip c- Big money is stepping in - Yes, people really thought a major bull market was starting. Easy to say how foolish that was in hindsight, but back then I was pretty lonely saying that was a bull trap. Even got banned from TV for calling it a bull trap. 9) Do you want to have a life? Or be exceptional at one thing? Having a life translates too: beeing basic sheeple that tries to mirror the people around him to avoid feeling different, does not have it in him to do whatever he wants but a slave to what others think of him/her, and has a boring depressing life he hates and should hate. Be a sheep or be a winner, your choice. 10) Day trading is bad, you can only make money bla bla bla. The only reason why daytrading is less profitable than say swing trading is spreads. I do not have the exact numbers here, but a broker analysed the millions of trades his clients took, and the majority of losers... Their losses equaled the fees... You aiming for an intraday 0.3% move and the spread is 0.02%? That is 6.6% of your profit. It can add up really fast. You need a large edge and alot of "margin" as in much more profit than losses to not get hit by fees. I was daytrading a couple of months ago, I filtered so much I had 3 trades a week. And all winners. 3. In a week. "More is better". There is NO WAY that someone making 10+ trades a day is only taking really awesome trades and not giving up alot of his profit to his broker, unless he is trading crypto on Gdax/Bitmex but crypto trading is dead now. I did it all, and it all works, from scalping for a few seconds to holding for 2-3 months. But you have to spend a little while writing down what you want to do, make sure the fees are small compared to the profit you realistically aim for. 11) Become a specialist. Find 1 strategy and spend all your time on that. Or find 1 market... but that one... Nah find 2 markets... What will you do when your market is sideways/dead? I have 1 single strategy, I am learning about other ones at the moment but I only really have one. 12) If you are new... go for a SIMPLE strategy, do not try to reinvent trading and be greedy. These are the strategies I am looking at: - My strategy is picking tops and bottoms where reversals happen (advanced, I would not recommend to most :p) - I am learning about hidden divergence (trend continuation) (intermediary difficulty) - I am interesting also in continuation inside bars when there is strong momentum (beginner friendly) Actually my strategy has to be one of the hardest there is. I use divergence as a filter + additional reason to go against the trend. I have become an amateur-expert at reversals. I know, this is terrible, every one says not to go for this, but it worked for me till now. I still can use ALOT more experience. Maybe one day I will call myself an expert. This strategy, if I am correct, is where greedy noobs get slaughtered. It is not easy, it is so dangerous. Sure you look at the chart and think "oh these divergences pop out, I could easilly buy here and sell here". Or "This was a clear bottom/reversal I could easily buy here". Nope. Sorry. You could not. What I started with was basic trendlines. I would look for anything bullish and buy when the trendline is touched, then sell when it goes ballistic, if it drops below the line I AM OUT. I was not very excited about making money when I started, but I really really did not want to lose any. I think this is the approach people should have (right?). Here is an example of a trade I took a year ago before I got bored and switched to another non recommended highly dangerous strategy :D 13) Trading is easy, but it takes time, and all these other qualities you have heard about. Take something simple: Support and resistance. Pretty basic. Just horizontal lines. Well, I think I am someone smart, I am a very fast learner, and I do not exagerate when I say I spent THOUSANDS of hours analysing support and resistance. Plus at least several hundred looking at RSI divergence alone. Plus hundreds looking at market life/cycles. Plus hundreds looking at different market conditions. Plus hundreds looking at moving averages. In total I am at 5k in a year. To become an engineer, you will need 5 years (is this the same in all countries? Can't be much different). You get 200 class days a year, 8 hours a day + 1 for homework (well maybe some people need more idk OR skip all lessons skip homework and rush rush before exams works too I guess) so that's 1800 hours a year or 9000 total. Of course you learn alot of useless stuff, but when you start working you have to learn your new craft anyway. Would you let an 18 yo surgeon on his year 1 operate on you? Would you expect him to reinvent surgery? Yes actually, but not in the good way :D Now trading does not require 10 years of studies (hey especially if you full specialize on 1 thing and 1 thing only), but I think you will need a couple thousand years under your belt to really know what you are doing. If you are lucky and have the qualities of a good trader in you as you start, and go for that 1 simple strategy and nothing else and respect all the rules (easy as you already have all the qualities) you could start making money pretty quick but not too quick (you have all of the qualities = you don't risk too much when you don't know what you are doing), you might get hit when a bull market turns to bear, but you will not get hit hard as you have all the qualities a trader needs. Otherwise, it will take time (or beginner luck), and in both cases before being really good you will need a couple thousands hours under your belt. So, the best advice you could get: if you do not like this, forget about it. Do not force yourself. The power of greed is not going to turn you into a millionaire even if you really really want to. It will turn you into a hobo thought, for sure.
Education
by MrRenev
Trend Reversal Alerts Strategy in DepthThis idea based on one of the simplest trading strategies in the world Trend-Reversal-Alerts-Strategy that I shared recently. Now I want to spread few words about how you should make it perform better with help of buy and sell resistance and I will show you the exact methods. But first, if you still not sure how this strategy tester is actually work you should definitely read this: TradingView Blog: EN/new-features-improvements-strategy-backtesting RU/new-features-improvements-strategy-backtesting Also I want to recommend an article that I googled. It examine in depth and gives a perfomance summary on every single subject: tradingview-strategy-tester-performance-summary According to Buy/Sell Resistance. When new candle created with assigned Open value, Resistance = 0. In the second Close start moving it changes so called Resistance of that candle. It could be negative or positive. So by setting resistance you can tell this script to enter/close your trades only when Buy/Sell Resistance values are greater or equal than your settings values. * You should tweak it only after all strategy tester options are ready. Very important! I do it in a simple way : open settings -> Buy Resistance = 1 -> Sell Resistance = -1 -> then if nothing change -> Buy Resistance = 1.5 -> Sell Resistance = -1.5; otherwise -> Buy Resistance = 0.5 -> Sell Resistance = -0.5 and so on... * This is very important to do to eliminate in the future "resitance issues" - when you can't enter/close trades because of your resistance settings. That is all for now. Take care and bye bye!
SP:SPXEducation
by sequentialvision
How to spot a Trend Reversal with Price ActionMany traders like to define a trend as a series of higher highs and higher lows , or a series of lower highs and lower lows . In the chart, the price initially is in a down trend as indicated by the series of lower highs and lower lows . First indication of a reversal is a break of the trend line. The second and more important indication is the breach of the recent high and we created a higher high and subsequently a higher low. The Trend is always your friend but the skill is to identify the correct direction of a trend or eventually a reversal.
Education
by Kaetea_Ng
Bitcoin could have a near-death experience driven by FOMOIn this video I argue that there could be a limited price reversal on Bitcoin. This is about people who missed out before the big pump, thinking or fearing that they don't want to miss out the 'next time around'. So that lot pre-October 2017, are likely to jump in over the next few days or weeks. This is human nature. Caution: I predict nothing! I'm doing something different. I'm looking at the psychology of markets and some reversal possibilities. But if price goes north it's about following a reversal trend for as far as it will go.
BITSTAMP:BTCUSDEducation
by Captain_Walker
Research! Research! Research! I smell blood.I don't disagree with the notion that right now we are set up almost identical to the market in 2014. I don't disagree that we probably have a while longer before we see a bull run. But I am pretty confident we aren't going to see 2+ years of bear market and I don't think we will see a 2+ years of bull market after. I think what we are experiencing is the final days of true manipulation, the beginning days of true adoption, and a culmination of some really strong forces. The noise will continue, but the rise will be more steady. Let me explain... Maybe we haven't hit rock bottom but with the bulls crying their eyes out and people shorting so sure of themselves, I would say that it's a pretty good time for some or all to get wrekt. Think about it. There is a moment when you can make both animals cry. The minute of reversal where it's obvious that a massive gain is coming, but hasn't yet so the shorts get liquidated because of the lack of coverage. And then there are the bulls that so badly want something to moon, but in reality it's going to be a slow steady climb. Going back to the rate of adoption, think of the bell-curve that happens. No where in that curve is there a break. Adoption and price accelerate through about 1/3 of the total life cycle. There is however sometimes a chasm, much like the described perilous valley in the accepting of humanoid robots, that causes confusion before all of the early adopters get on board. The only thing there is to determine is how long the life of a cycle will be. In my last post I messed around with GDPs of five countries. I found at just one percent of their GDP in crypto-currency, the number is actually a little more than what the current market cap was listed at that day of 299B. In a perfect world right now we would see enough growth through adoption that we could take profits and new money coming in would offset the profit taking. But instead let's see what a macro story can tell us. Right now there just aren't enough retail stores taking crypto to make a difference but what happens when that threshold is crossed. 1. Some one buys something with crypto. 2. Price of crypto goes up due to fiat entering a market. 3. Amount of fiat in cirrculation goes down 4. No reason to sell crypto for fiat because enough retail to sustain oneself. 5. You get paid in crypto from work. 6. You buy more stuff gradually shifting more GDP to crypto. 6. Cycle repeats. This is what we should be striving for but due to where we are in this adoption cycle right now we are still ironing out wrinkles and people don't see a bigger picture. So Research, Research, Research! Prop up your own currency and figure out how you can make actual differences. Lastly, sniff around for the blood. Look at opposing views and see who is either scared or overly-confident. Just like bulls think the market will go up even in the short term, bears tend to think they will continue going down in the long term. Refer to my Buddhist approach to investing for inner peace if you seek the middle ground. ;-)
BITFINEX:BTCUSDEducation
by whiprush3
3
Wedge Pattern on OIL Suggests A ReversalCrude OIL has been in an uptrend since June of 2017, a five-wave cycle that can come to an end. Specifically, we see energy trading within an uptrend channel, currently in the fifth wave that is testing the upper parallel resistance line where the fifth wave can look for a top. In fact, we see a wedge pattern forming up in the last month or so, which is normally evidence of a bulls slow-down. This is also confirmed by divergence on the RSI that is very common when comparing highs of wave three and five. That being said, rather than looking and building any new bullish set-ups in this phase of a trend, we suggest being aware of a potential retracement of a higher degree. Resistance area is around $73.00 Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
TVC:USOILEducation
by ew-forecast
2
2] How to use Traders Dynamic Index and Complementary OverlayWe here learn to observe the higher time frame 360, and analyse 1D that RSIPL are crossed down parallel. So lower than daily time frame= 540, 360 allows for trend entry at a 360 RSIPL and 'TSL initial cross down for max profit. On 180 as on 360 allowed for entry using the RSIPL/TSL crosses down. Also observing Phaser very near price as it 'pushed' priced down until price could breakout Phaser which had much importance. Price breakout of black Midline meant clear reversal and price retraced to it for support with target being HighPhaser or Fibonacci retracement tool for extension target. Entry for this retracement was possible by means of the countertrendline cross. __________ Promoting free and highly useful Indicators: KK_Traders Dynamic Index_Bar Highlighting Traders Dynamic Index Overlay "Price Action Channel Master by JustUncleL Restored"
Education
by YardleyRosette
How To Read Structure (Charts) Tutorial. Charts 1-5By the time you are done with this tutorial, You will understand Structure, Trends, Reversals & much more! This tutorial will teach you how to dig deep into the charts & analyze where price is likely to go next! Reading Structure can be difficult when you first start trading, however most professional traders (if not all) understand structure very well and it is definitely a skill that will dramatically help you on your journey to becoming a professional trader. I tried to make this as clear & simple as possible for anyone to understand but do not worry if this is complicated or a little confusing at first. If you are new to trading, you will benefit by studying and looking over these charts multiple times. I have found that it is also helpful if you grab a piece of paper and a pencil so you can draw the chart that you are looking at. Draw a very simple line chart and mark the highs & lows as shown in the tutorial with support & resistance lines.. You will learn much faster by doing this while training your eyes to identify trends & reversals. After you do this enough, it will start to become 2nd nature & you will spot these crucial moments in structure with a quick glance at the charts. This is the first section of the Reading Structure Tutorial. This section will consist of 6 Charts total: Chart 1- An Easy and effective way to determine trend. Chart 2- Following The Trend with Support & Resistance (Highs & Lows) Chart 3- Continuation of Chart 2 Chart 4- Identifying Possible Trend Reversals Chart 5 - When Structure Doesn't Make Sense, Do Not Trade! Chart 6- Another Reversal I have put a lot of time & effort into this tutorial so feel free to ask any questions you may have.. I will be publishing section 2 of the "How To Read Structure" tutorial next week. Please leave a comment below or message me with your thoughts regarding this lesson. I am happy to continue publishing them if they are helpful to you. We are going to scroll through this chart & follow structure. This is a 60 Minute Chart of GBP-USD. Chart 1 Chart 2, In this Chart we are going to look at the highs & lows shown on Chart 1. Chart 2 Continued, (Continuation of Chart 2.) Chart 3, Identifying Possible Trend Reversals. Chart 4, In depth Analysis of Chart 3. Chart 5, Another Example of a trend reversal Section 2 of "How To Read Structure" will be published next week & I will be sure to update this tutorial with the new charts as well as publish a separate idea. Take your time & really study these charts. There is a ton of valuable information in this tutorial & by the time you get through all the sections, you will have a much easier time reading structure. Please be sure to give this tutorial a thumbs up if it was helpful & you would like me to continue posting them. Thanks Traders & I hope you enjoyed the 1st section of this tutorial!
Education
by Alec40
110
Explaining fractals within fractals. 15 min. vs. 5 minute charts15 minute and 5 minute charts are really low timeframes already. Especially for swing traders so let me be clear about the fact that higher timeframe and lower timeframe are to be seen as relative terms here. ----- We can see the following happening: - in the 15min timeframe there's a clear accumulation going on. - There's a run up towards old resistance and an old bearish orderblock (which I've not indicated) - There's a smart money reversal Then the interesting stuff happens. - Because of the initial drop down from the smart money reversal, the 5 minute timeframe shows an optimal entry for a buy. So there's some accumulation of long orders happening. - The lower timeframe makes a run towards resistance, accumulates there and then goes higher to form another high. - The lower timeframe also creates a smart money reversal - A lower timeframe low risk sell (which is also the same for the higher timeframe as this would have been the entire consolidation at the top there) - We can see price drop with certainty, moving away from the consolidation there - A very small consolidation forming distribution for the 5 minute chart and then - Another drop down to arrive at the new distribution/re-accumulation zone for the smaller timeframe. This is the important part. Normally the 5 minute timeframe would continue stacking long orders here, but because of the higher timeframe premise, they should not. - We can clearly see that the smaller timeframe distribution zone is actually the 1st distribution zone for the larger timeframe. - Then another drop occurs and the larger timeframe arrived at it's destination. Presumably trapping or stopping out 5 minute chart traders. -------- Both buyers and sellers can be right within both bullish and bearish markets. This is only to show why one side of the market tends to make a mistake opposite to another. Note: this serves for my own training purposes, again setting in stone whatever I've learned from the ICT.
Education
by UnknownUnicorn468659
1