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Support and Resistance

What is Support and Resistance in Trading. Key Levels Basics In the today's article, we will discuss the absolute basics of technical analysis: support and resistance levels. I will explain to you why support and resistance are important , how to identify them properly, and we will discuss what is the difference between support and resistance level and support or resistance zone. Let's start with a definition of a support . A support is a historically significant price level that lies below the current prices of an asset. While a resistance is a historically significant price level that is above the current prices. From a key resistance, a bearish movement will be anticipated in futures, while from a key support, a bullish reaction will be expected. Take a look at EURAUD pair, we can see a perfect example of a key resistance level. 2 times in a row, the market dropped from that in the past, confirming its significance. By a historical significance , I mean that the price reacted strongly to such price level in the past and a strong bullish, bearish movement initiated from that. Above is the example of a key horizontal support on EURCHF. The underlined key level was respected by the market multiple times in the past. From time to time, the market breaks key levels. After a breakout , a support turns into resistance and a resistance turns into support. Above is the example of a breakout of a key support on GBPNZD, after its violation it turned into resistance from where a bearish movement followed. Always remember, that in order to confirm a breakout of a key support, we strictly need a candle close below that. By the way, the structure here is also the zone, but we will discuss it later on. Above is the example of a breakout of a key resistance, that turned into support after a violation. Very often, newbie traders ask me, how many times the price should react to a key level to make it valid. I do believe that 1 time is more than enough, however, make sure that the reaction to that is strong . Above are key support and resistance on GBPCAD. Even though both structures were respected just one time in the past, the reaction to them was strong enough to confirm that the underlined levels are the key levels. However, historical significance of a key support or resistance is not enough to make it valid. What matters is the most recent reaction of the price to that. Key supports and resistance lose their significance with time, and your job as a technical analyst, is to stay flexible and adapt to changing market conditions, regularly updating your analysis. Above is a key resistance level on AUDJPY from where the market dropped heavily 2 times in a row. However, with time, the underlined resistance lost its significance. Such a structure is not a key level anymore. Remember a simple rule: if a key structure is not respected by the sellers, and by the buyers after its breakout. Or vice versa: if a key structure is not respected by the buyers, and then by the sellers after its breakout. Such a structure is not a key level , and you should not rely on that in the future. In our example, the resistance was broken - it was neglected by the sellers. After the breakout, it should have turned into support, but the buyers also neglected that and the structure lost its strength. Now, a couple of words about time frames, you can identify key support and resistances on any time frame, but the rule is that higher is the time frame, more significant are the supports and resistances there. In my analysis, I primarily rely on support and resistance on a daily time frame. Always remember that the financial markets are not perfect and the prices will quite rarely respect the exact support or resistance levels. Quite often, the markets may fluctuate around key levels so it is highly recommendable to rely not on single key levels but on zones. I recommend taking into consideration not only the exact level from where a strong reaction followed, but also a candle close level of such a candle. The support zone above is based on a wick and a candle close of a candle. Also, quite often there will be the situations when multiple key levels will lie close to each other. In such a case, it is better to unite all this structures in one single zone. Above we see multiple key resistances. We will unite all these resistances into one single zone. The upper boundary of a resistance zone will be the highest wick and its lower boundary will be the highest candle close. Above we have 2 key supports lying close to each other. We will unite these supports into one single zone. The lower boundary of a support zone will be the lowest wick and the upper boundary will be the lowest candle close. Here is how a complete structure analysis should look. Following the rules that we discussed, you should identify at least 2 closest key resistances and 2 closest key supports. These structures will be applied as the entries for various trading strategies. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
23
Profitable Triangle Trading Strategy Explained Descending triangle formation is a classic reversal pattern . It signifies the weakness of buyers in a bullish trend and bearish accumulation . In this article, I will teach you how to trade descending triangle pattern. I will explain how to identify the pattern properly and share my trading strategy. ⭐️ The pattern has a very peculiar price action structure : 1. Trading in a bullish trend, the price sets a higher high and retraces setting a higher low . 2. Then the market starts growing again but does not manage to set a new high, setting a lower high instead. 3. Then the price drops again perfectly respecting the level of the last higher low, setting an equal low . 4. After that, one more bullish movement and one more consequent lower high , bearish move, and equal low . Based on the last three highs , a trend line can be drawn. Based on the equal lows , a horizontal neckline is spotted. ❗What is peculiar about such price action is the fact that a set of lower highs signifies a weakening bullish momentum : fewer and fewer buyers are willing to buy from horizontal support based on equal lows. 🔔 Such price action is called a bearish accumulation . Once the pattern is formed it is still not a trend reversal signal though. Remember that the price may set many lower highs and equal lows within the pattern. The trigger that is applied to confirm a trend reversal is a bearish breakout of the neckline of the pattern. 📉Then a short position can be opened. For conservative trading, a retest entry is suggested. Safest stop is lying at least above the level of the last lower high. However, in case the levels of the lower highs are almost equal it is highly recommendable to set a stop loss above them all. 🎯For targets look for the closest strong structure support. Below, you can see the example of a descending triangle trade that I took on NZDCAD pair. After I spotted the formation of the pattern, I was patiently waiting for a breakout of its neckline. After a breakout, I set a sell limit order on a retest. Stop loss above the last lower high. TP - the closest key support. 90 pips of pure profit made. Learn to identify and trade descending triangle. It is one of the most accurate price action patterns every trader should know.
OANDA:XAUUSDEducation
by VasilyTrader
1
Importance of zones!Hey traders, here is a great example of why I set specific zones for all my trades. When I do my analysis for the day, I create zones based off of strict support and resistance zones and trend line breaks as well. These zones and all my trades are based off the daily candle close. I choose to drop down to the 15 min chart but you can just go off the 4hr chart if it’s easier but you might not get as many trades. I always shoot for 5 pips but 8 out of 10 times price moves way farther. With 3 crazy kids I have to set targets and they are either gonna hit or stop out. I really hate losing so I try my damn best to make sure momentum is in my favor. For my trade set ups, typically what I would like to see is a daily candle closing bearish and the 4 hour candle closing bearish and vice versa. Discipline is a major key factor in my trading strategy something that I have acquired over the years. Stick to the plan and WAIT FOR IT! OANDA:CADCHF I could have 20 great trades lined up for the day and not one of them break my zone. It’s ok though, there’s always tomorrow. If price doesn’t break my zone by the end Tokyo session I’m out cuz the London session is just a bully that likes to go the opposite direction. I also cleaned up my chart so it’s easier to read both for you and myself. If I ever post an idea, I might just post my trade then go back into the comments and explain the details later. Happy trading. Aloha and much love
Education
by W8_4it
Divergence: RSI vs. PriceHey everyone! In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE! Today, I took some time to put together an Educational Video on: 1) What a Divergence Is? 2) How to Spot them! & 3) How to Trade them! I hope you find this helpful! **Tips - Divergence is never good enough to trade alone, YOU NEED CONFIRMATION! - The longer the Divergence takes, the more reliable it is - Change in Momentum is KEY!
Education
by Novi_Fibonacci
6
Learn How to Apply Top-Down Multiple Time Frame Analysis In this article, we will discuss how to apply Multiple Time Frame Analysis in trading . I will teach you how to apply different time frames and will share with you some useful tips and example of a real trade that I take with Top-Down Analysis strategy. Firstly, let's briefly define the classification of time frames that we will discuss: There are 3 main categories of time frames: 1️⃣ Higher time frames 2️⃣ Trading time frames 3️⃣ Lower time frames Higher Time Frames Analysis 1️⃣ Higher time frames are used for identification of the market trend and global picture. Weekly and daily time frames belong to this category. The analysis of these time frames is the most important . On these time frames, we make predictions and forecast the future direction of the market with trend analysis and we identify the levels , the areas from where we will trade our predictions with structure analysis . Above is the example of a daily time frame analysis on NZDCAD. We see that the market is trading in a strong bullish trend. I underlined important support and resistance levels. The supports will provide the safest zones to buy the market from anticipating a bullish trend continuation. Trading Time Frames 2️⃣ Trading time frames are the time frames where the positions are opened . The analysis of these time frames initiates only after the market reaches the underlined trading levels, the areas on higher time frames. My trading time frames are 4h/1h. There I am looking for a confirmation of the strength of the structures that I spotted on higher time frames. There are multiple ways to confirm that. My confirmations are the reversal price action patterns. Once the confirmation is spotted, the position is opened. Analyzing the reaction of the price to Support 1 on 1H time frame on NZDCAD pair, I spotted a strong bullish confirmation - a triple bottom formation. A long position is opened on a retest of a broken neckline. Lower Time Frames 3️⃣ Lower time frames are 30/15 minutes charts. Even though these time frames are NOT applied for trading, occasionally they provide some extra clues . Also, these time frames can be applied by riskier traders for opening trading positions before the confirmation is spotted on trading time frames. Before the price broke a neckline of a triple bottom formation on an hourly time frame on NZDCAD, it broke a resistance line of a symmetrical triangle formation on 15 minutes time frame. It was an earlier and riskier confirmation to buy. Learn to apply these 3 categories of time frames in a combination. Start your analysis with the highest time frame and steadily go lower, identifying more and more clues. You will be impressed how efficient that strategy is.
OANDA:XAUUSDEducation
by VasilyTrader
17
Unlock the Secrets of Gold Trading: Pericles' Ancient WisdomIn this video, we explore the profound perspectives on fear from historical figures like Pericles and modern thinkers like Ryan Holiday. Pericles, the esteemed Athenian statesman, saw fear as a natural emotion that should not paralyze us. He believed in confronting fear with courage, rational thought, and strategic planning, using it as a tool for effective decision-making. Ryan Holiday, drawing on Stoic philosophy in his works, echoes these sentiments with stories of historical figures who turned fear into fuel for success. He recounts how John D. Rockefeller faced market crashes with calm calculation and how Theodore Roosevelt overcame health challenges by embracing adversity. Both Pericles and Holiday teach us that fear, when managed correctly, can become a powerful ally. By acknowledging fear, confronting it with rationality and courage, and using it to sharpen our focus and strategy, we can transform challenges into opportunities for growth and success. This approach is especially relevant in the realm of trading, where mastering fear can lead to better decision-making and greater resilience. Key Levels and Patterns: Higher Highs (HH) and Higher Lows (HL): The chart shows a series of higher highs (HH) and higher lows (HL), indicating an overall uptrend. This pattern suggests that the bullish momentum is still in play. Ascending Channel: There is a well-defined ascending channel where the price has been moving upwards within parallel trendlines. This channel can act as a guide for potential support and resistance levels. Reversal Points (LQZ): 1-Hour LQZ / Reversal Point: Located at 2,429.190. This level is a potential area where price may reverse or find support. 4-Hour LQZ / Reversal Point: Located at 2,391.394. This level also serves as a significant support zone. Take Profit (TP) Levels: TP 1: 2,319.385 TP 2: 2,288.085 TP 3: 2,265.369 Recent Price Action: The price recently reached a higher high at around 2,458.755 and then pulled back slightly, indicating a potential short-term correction within the overall uptrend. The ascending channel suggests that if the price remains above the lower boundary of the channel, the uptrend is likely to continue. If the price breaks below the 1-hour LQZ / Reversal Point at 2,429.190, it could test the 4-hour LQZ / Reversal Point at 2,391.394. A further breakdown below this level might lead to the next support at TP 1. Analysis Summary: Bullish Scenario: The price could bounce from the current levels or the lower boundary of the ascending channel, aiming for new highs. Traders might look for buying opportunities near the support levels of the channel and reversal points. Bearish Scenario: If the price breaks below the identified reversal points and the ascending channel, it might signal a deeper correction, potentially heading towards the TP levels for possible buying opportunities at lower prices. By applying Pericles' wisdom of confronting fear with rationality and Ryan Holiday's insights on turning fear into strategic advantage, traders can approach these levels with a clear, disciplined mindset, making informed decisions even in volatile market conditions.
OANDA:XAUUSDEducation
by Adlercon333
2
Best Price Action Pattern For Beginners to Start FOREX Trading There are a lot of price action patterns: wedges, channels, flags, cup & handle, etc. If you're just starting out your Forex journey, it's natural to wonder which one to trade and focus on. In this article, I will show you the best price action pattern for beginner s that you need to start forex trading. I will share a complete trading strategy with entry, stop and target, real market examples and useful trading tips. High accuracy and big profits guaranteed. The pattern that we will discuss is a reversal pattern. Depending on the shape of the pattern, it can be applied to predict a bearish or a bullish reversal. Its bearish variation has a very particular shape. It has 4 essential elements that make this pattern so unique: A strong bullish impulse, A pullback and a formation of a higher low, One more bullish impulse with a formation of an equal high, A pullback to the level of the last higher low. Such a pattern will be called a double top pattern. 2 equal highs will be called the tops , the level of the higher low will be called a neckline . Remember that the formation of a double top pattern is not a signal to sell. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Its violation is an important sign of strength of the sellers and increases the probabilities that the market will drop. Once you spotted a breakout of a neckline of a double top pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest support. Stop loss will lie above the tops. A bullish variation of a double top pattern is called a double bottom. It is also based on 4 main elements: A strong bearish impulse, A pullback and a formation of a lower high, One more bearish impulse with a formation of an equal low, A pullback to the level of the last lower high. 2 equal lows will be called the bottoms , the level of the lower high will be called a neckline . The formation of a double bottom pattern is not a signal to buy. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Once you spotted a breakout of a neckline of a double bottom pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest resistance. Stop loss will lie below the bottoms. Double top & bottom is a classic price action pattern that everyone knows. Being very simple to recognize, its neckline violation provides a very accurate trading signal. Moreover, once you learn to recognize and trade this pattern, it will be very easy for you to master more advanced price action patterns like head and shoulders or triangle. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
Elementary Bitcoin in its entirety for beginnersUnlike all kinds of cryptocurrencies, the issue of Bitcoin is limited by the condition of a regular reduction in the size of the mining reward. Naturally, the American dollar will always be issued without any special restrictions. This allows you to make a basic calculation: “infinity” divided by “21 million” = “infinity”. That is, theoretically, in the infinite future, Bitcoin can cost as much as you like; based on general data, you can already calculate the nearest maximum target of $120k at the end of 2025. Of course people won't spend all their dollars on Bitcoin because they have other needs to survive. People will buy and sell Bitcoin to achieve their budget goals. Therefore, the price will not rise every day. Looking at the figure, you can see three symbolic exponents (blue at the bottom, red at the top and orange in the middle) the struggle between buyers and sellers unfolds. But this is not a fact that the price will reach them, since the real exponential median is extended into eternity, or at least for the next hundred years until all Bitcoin is mined. The most likely upward trend will fluctuate around a straight white line. I think the price will charge below this line and shoot exponentially much higher again and again as mankind's speculative sentiment never runs out. Therefore, in the near future, since the price has not reached its nearest maximum immediately, a break is needed to recharge. Anything can happen at once, but most likely it will drop below the previously mentioned orange exponential and below the white straight line to collect at least part of the liquidity between $28k-33k and reverse fast back to its nearest target at $120k. I believe this downward and upward movement will occur before the end of 2025. However, from my own experience, I can note that my scenarios are implemented much faster because we are not given time, we create it ourselves. Therefore, just stay in touch and watch the unfold of events vertically if you are not in a hurry. =] I still provide brief comments as the story progresses from that “Watchlist, details and news” section in the upper right corner of the screen on the stationary monitor. Best wishes.
BITSTAMP:BTCUSDEducation
by tradephenomena
Best Trend Following Strategies for Gold. XAUUSD Day Trading The recent bull run on Gold is a perfect example of a strong trending market. For traders, such sentiment always provides very profitable trading opportunities. In this article, I will share with you 3 best trend-following strategies for day trading Gold that showed extremely high performance this year. So what I did, I back tested 4H/1H time frame since the middle of February when the bull market started. I tested various strategies: price action, SMC, multiple indicators, candlestick patterns ; and I was looking for the ones that showed the highest accuracy and profitability. 1. Moving Averages Crossover The first strategy that showed a very high performance was based on a crossover of 2 moving averages. Exponential MA with 30 length. Simple MA with 9 length. For entry signal, Simple MA should cross Exponential MA from the downside and a candle should close above both MAs'. Stop loss will be below the closest horizontal support. The setup is considered to be profitable if, after the entry, the price moved up at least by pips distance from entry to stop loss. 13 setups we spotted. 9 of them were profitable. Total winning rate is 69%. 2. Trend-Following Patterns The second strategy that showed a very high performance was based on classic price action patterns. I was looking for bullish patterns like bullish flag, falling wedge, horizontal range, double bottom, head and shoulders, ascending triangle, cup & handle. Bullish confirmation was a breakout and a candle close above a neckline of the pattern. The pattern is considered to be losing if after the breakout of the neckline, the price dropped below its lows. The pattern is considered to be profitable if, after the entry, the price moved up at least by pips distance from entry to stop loss. From 14th of February to 8th of April, I found 37 bullish patterns. According to the rules that I described above, 31 pattern turned out to be profitable. That gives 83% winning rate. 3. Break of Structure (BoS) The Break of Structure strategy is very old and based on breakouts of current highs. In a bullish trend, after the price violates the levels of a current Higher High HH, a bullish continuation is expected. A long trade is opened after the candle closes above HH or on a retest. With such a strategy, Stop Loss is lying below the last Higher Low HL. The setup is considered to be profitable if, after the entry, the price moved up at least by pips distance from entry to stop loss For the same period, I identified 21 Breaks of Structure. According to the rules, 18 setups were profitable. Total win rate is 85%. Remember that you should not overestimate the performance of these strategies. They work perfectly only in times of a strong bullish market. Such periods are extremely rare. However, once you see a strong bullish season, these strategies will help you to get maximum from it. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
Psychological Levels and Round Numbers in Technical Analysis When traders analyze the key levels, quite often then neglect the psychological levels in trading. In this article, we will discuss what are the psychological levels and how to identify them . What is Psychological Level? Let's start with the definition. Psychological level is a price level on a chart that has a strong significance for the market participants due to the round numbers. By the round numbers, I imply the whole numbers that are multiples of 5, 10, 100, etc. These levels act as strong supports and resistances and the points of interest of the market participants. Take a look at 2 important psychological levels on EURGBP: 0.95 and 0.82. As the market approached these levels, we saw a strong reaction of the price to them. Why Psychological Levels Work? And here is why the psychological levels work: Research in behavioral finance has shown that individuals exhibit a tendency to anchor their judgments and decisions to round numbers. Such a decision-making can be attributed to the cognitive biases. Quite often, these levels act as reference points for the market participants for setting entry, exit points and placing stop-loss orders. Bad Psychological Levels? However, one should remember that not all price levels based on round numbers are significant. When one is looking for an important psychological level, he should take into consideration the historical price action. Here are the round number based levels that I identified on AUDUSD on a weekly time frame. After all such levels are underlined, check the historical price action and make sure that the market reacted to that at least one time in the recent past. With the circles, I highlighted the recent reaction to the underlined levels. Such ones we will keep on the chart, while others should be removed. Here are the psychological levels and proved their significance with a recent historical price action. From these levels, we will look for trading opportunities. Market Reaction to Psychological Levels Please, note that psychological levels may trigger various reactions of the market participants. For instance, a price approaching a round number may trigger feelings of greed, leading to increased selling pressure as traders seek to lock in profits. Alternatively, a breakout above/below a psychological level can trigger buying/selling activity as traders anticipate further price momentum. For that reason, it is very important to monitor the price action around such levels and look for confirmations . Learn to identify psychological levels. They are very powerful and for you, they can become a source of tremendous profits. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
1
RSI Indicator LIES! Untold Truth About RSI! The Relative Strength Index (RSI) is a classic technical indicator that is applied to identify the overbought and oversold states of the market. While the RSI looks simple to use, there is one important element in it that many traders forget about: it's a lagging indicator. This means it reacts to past price movements rather than predicting future ones. This inherent lag can sometimes mislead traders, particularly when the markets are volatile or trade in a strong bullish/bearish trend. In this article, we will discuss the situations when RSI indicator will lie to you. We will go through the instances when the indicator should not be relied and not used on, and I will explain to you the best strategy to apply RSI. Relative Strength Index analyzes the price movements over a specific time period and displays a score between 0 and 100. Generally, an RSI above 70 suggests an overbought condition, while an RSI below 30 suggests an oversold condition. By itself, the overbought and overbought conditions give poor signals, simply because the market may remain in these conditions for a substantial period of time. Take a look at a price action on GBPCHF. After the indicator showed the oversold condition, the pair dropped 150 pips lower before the reversal initiated. So as an extra confirmation , traders prefer to look for RSI divergence - the situation when the price action and indicator move in the opposite direction. Above is the example of RSI divergence: Crude Oil formed a sequence of higher highs, while the indicator formed a higher high with a consequent lower high. That confirmed the overbought state of the market, and a bearish reversal followed. However, only few knows that even a divergence will provide accurate signals only in some particular instances. When you identified RSI divergence, make sure that it happened after a test of an important key level. Historical structures increase the probability that the RSI divergence will accurately indicate the reversal. Above is the example how RSI divergence gave a false signal on USDCAD. However, the divergence that followed after a test of a key level, gave a strong bearish signal. There are much better situations when RSI can be applied, but we will discuss later on, for now, the main conclusion is that RSI Divergence beyond key levels most of the time will provide low accuracy signals. But there is one particular case, when RSI divergence will give the worst, the most terrible signal. In very rare situations, the market may trade in a strong bullish trend, in the uncharted territory, where there are no historical price levels. In such cases, RSI bullish divergence will constantly lie , making retail traders short constantly and lose their money. Here is what happens with Gold on a daily. The market is trading in the uncharted territory, updated the All-Time Highs daily. Even though there is a clear overbought state and a divergence, the market keeps growing. Only few knows, however, that even though RSI is considered to be a reversal, counter trend indicator, it can be applied for trend following trading. On a daily time frame, after the price sets a new high, wait for a pullback to a key horizontal support. Your bullish signal, will be a bearish divergence on an hourly time frame. Here is how the price retested a support based on a previous ATH on Gold. After it approached a broken structure, we see a confirmed bearish divergence. That gives a perfect trend-following signal to buy the market. A strong bullish rally followed then. RSI indicator is a very powerful tool, that many traders apply incorrectly. When the market is trading in a strong trend, this indicator can be perfectly applied for following the trend, not going against that. I hope that the cases that I described will help you not lose money, trading with Relative Strength Index. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
34
Profitable Multiple Time Frames Smart Money Strategy Revealed In this post, I will share with you a very accurate SMC strategy that combines top-down analysis, liquidity, imbalance, order block and inducement. Step 1 - Identify liquidity zones on a daily Liquidity zones are the areas on a price chart, where big players are placing their orders. From such areas, significant bullish and bearish movements initiate. Liquidity zones that are above the current price will be the supply zones, while the liquidity zones that are below the current price will be the demand zones. We will look for shorting opportunities from supply areas and for buying opportunities from demand zones. Here are the liquidity zones that I identified on EURJPY. Step 2 - Wait for a test of one of the liquidity zones Let the market test the liquidity zone. For buying, the price should reach a lower boundary of a demand zone. For shorting, the price should test an upper boundary of a supply zone. I underlined the exact levels that the price should test on EURJPY. Here is the test of the lower boundary of the demand zone. Step 3 - Look for inducement on an hourly time frame With the inducement, smart money make the market participants think that the liquidity zone that the price is testing doesn't hold anymore. When the price tests a supply area, an hourly candle close above its upper boundary will be a bullish inducement. With that, the smart money incentivize buying orders. When the price tests a demand area, an hourly candle close below its lower boundary will be a bearish inducement. With that, the smart money incentivize selling orders. The price closed below a lower boundary of a demand zone on EURJPY on 1H time frame. Step 4 - Look for imbalance on an hourly time frame After a violation of a supply area on an hourly time frame, look for a bearish imbalance. Bearish imbalance is a strong bearish candle with wide range and big body. With that candle, the market should return within a supply zone and closed within or below that. After a violation of a demand area on an hourly time frame, look for a bullish imbalance. Bullish imbalance is a strong bullish candle with wide range and big body. With that candle, the market should return within a demand zone and closed within or above that. Here is the example of a bullish imbalance on EURJPY. After a bearish inducement, the price formed a high momentum bullish candle and closed within the demand zone. The imbalance signify that a liquidity zone violation was a trap . With that, smart money simply was trying to grab the liquidity. That will be a signal for you to open an order. Step 5 - Look for an order block After the formation of the imbalance, the market becomes locally week and quite often corrects to an order block. Order block will be the closest hourly liquidity zone. After a formation of a bearish imbalance, look for a supply zone on an hourly time frame. That will be your perfect zone to sell. After a formation of a bullish imbalance, look for a demand zone on an hourly. That will be your area to buy from. Here is the order block on EURJPY. Step 6 - Set a limit order Set a sell limit order within a supply area after a formation of bearish imbalance on an hourly time frame. Set a buy limit order within a demand area after a formation of a bullish imbalance on an hourly. Here is your buy entry level on EURJPY. Step 7 - Select the target If you sell, your target should be the closest daily structure support: horizontal or vertical one. If you buy, your target should be the closest daily structure resistance: horizontal or vertical one. In our example, our closest structure resistance if a falling trend line. Step 8 - Set stop loss If you sell, stop loss will lie above a bullish inducement. If you buy, stop loss will lie below a bearish inducement. Here is a perfect point for a stop loss for a long trade on EURJPY. Step 9 - Trade Let the price trigger your entry, and then be prepared to wait. It took many days for EURJPY to reach the target. Trading Tips: 1. Make sure that you have a positive reward/ratio. It should be at least 1.2 2. Risk no more that 1% of your trading account per trade Being applied properly, that strategy shows 70%+ accuracy. Try it by yourself and let me know your results. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
Pulse of an Asset ala Fibonacci: ETH at a key Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology: (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
COINBASE:ETHUSDEducation
by EuroMotif
4
Using Multi-Timeframe analysis for a major WinnerMulti-timeframe analysis is a key techniques for prepping a market prior to a trading session. The first thing to do before trading is to understand the major moves and longer term price action. This enables us to get on the right side of a sessions move and avoid a lot of the chop. We take a look at the DOW from the previous trading session and talk through the 30 min timeframe and why it was so important for the 500 pt rally into the close. I talk through the key price action, the trap of shorts before the big move up and why we needed to be on the long side of the action. ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !! ** If you like the content then take a look at the profile to get more ideas and learning material ** ** Any Comments and likes are greatly appreciated **
CBOT_MINI:YM1!Education
by TradeTheStructure
Learn What is Inducement and Trap in Smart Money Concepts SMC Smart Money Concepts can be applied for the identification of trend reversal in Forex and Gold trading. In this article, we will discuss what is an inducement and a trap in SMC . And how to apply them to spot an accurate trading signal. We will study the important theory and go through real market examples on XAUUSD chart. Imagine that there is a strong historical resistance on a price chart. Because the price reacted to that strongly in the past, many sellers will place selling orders on that in future, anticipating a similar reaction. Placing short trades, their stop losses will lie above the resistance. In case of a bullish violation of the underlined resistance, sellers will be stopped out from their short trades and close their positions in loss . After the violation of a resistance, according to the rules, it should turn into support . Many traders will place their buy orders there, anticipating a bullish continuation. Bearish violation of such a support will stop out the buyers as well. Such a price action will be called an inducement and a bullish trap. With that, smart money grab the liquidity both from the buyers and from the sellers. After that, with a high probability, the market will drop . For example, Bullish violation of an all-time-high on Gold can easily be a bullish trap. To confirm that, the price should simply break and close below a broken horizontal resistance. That will confirm a local bearish reversal. With a bullish trap and inducement, smart money are quietly placing HUGE SELLING ORDERS , making the retail traders close short trades in loss (buy their positions) and buy from the broken structure, providing them the liquidity. The ability to recognize the traps will let you understand real intentions of smart money and trade with them. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
The ''Pulse'' of an asset times Fibonacci: Chapter 2Every move in a price chart starts with an ''Impulse'', imagine it like a ''Pebble''. When the Pebble hits water it creates ''Ripples'' that are captured by the Fib Series. Each Ripple has equal distances between peaks and troughs, or what I call the ''Pulse''. Each Line has Gravity. Each Line must be Tested. Each Line has a Personality. Every Asset Class behaves this way. Every Time Frame shows these ripples. Every Human Brain is susceptible to them. This is a followup to my previous tutorial linked below. That one has gotten very long with so many updates as examples. PLEASE spend some time on the numerous examples in the first publication below:
COINBASE:LTCUSDEducation
by EuroMotif
4
Best Technical Indicator to Identify Liquidity Zones Liquidity zones are the essential element of Smart Money trading . These zones provide the safest and the most accurate trading opportunities. The problem is, however, that it is quite complicated for the newbie traders to identify these zones properly. But there is ONE technical indicator that can help. In this article, I will show you the best technical indicator for the identification of liquidity zones. This technical indicator is called Volume profile. Adding that on your chart, you should look for low volume and high volume nodes. High volume nodes indicate the price levels on the chart where big volumes were traded and a high activity of the market participants occurred. The indicator plots 3 significant volume spikes. These are 3 high volume nodes. After you identified high volume nodes, you should analyse a price action and recognize related historical structures. By related structures, I mean historical levels that were respected by the market and from where significant price movements initiated. When you underlined these structures, you should consider the wicks and candle closes. Low volume nodes indicate the price levels on the chart where it has been relatively little trading activity and limited participation from market participants. These zones indicate a lack of liquidity , which can impact the ease of price movement in those areas. Here are 2 low volume nodes that I spotted. After you spotted low volume nodes, you should analyse a price action and recognize related historical structures. Here are the liquidity zones that are based on low volume nodes. Again, these areas are based on wicks and candle closes. These 5 area will be the important liquidity zones from where Smart Money trader can look for trading opportunities. Learn to recognize liquidity zones properly and improve your trading. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Pulse of an Asset via Fibonacci: BTC at A.T.H. Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology: (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
COINBASE:BTCUSDEducation
by EuroMotif
Trapped traders provides a great Short opportunity on DOW The plan for the session was to trade short off resistance on the DOW after an initial opening drive higher. The short side was the play and paid out nicely for patient sellers. In the video I talk through the key Price Action for the move and prime trade areas on the DOW Index. ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !! ** If you like the content then take a look at the profile to get more ideas and learning material ** ** Any Comments and likes are greatly appreciated **
CBOT_MINI:YM1!Education
by TradeTheStructure
4