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Support and Resistance

📉 Downtrend Identification CheatsheetWhat Is a Downtrend? A downtrend is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market. A downtrend can be contrasted with an uptrend. Downtrends are characterized by lower peaks and troughs and mimic changes in the perception of investors. A downtrend is fueled by a change in the supply of stocks investors want to sell compared with the demand for the stock by investors who want to buy. Downtrends are responses to changes that surround the security, whether macroeconomic or those associated with a company's business activity. 🔹Understanding and Identifying Downtrends As much as it is important to look out for uptrends when trading, it is equally important to understand and identify downtrends. A trader may potentially save money if they decide to sell off a declining stock. If many traders decide to sell a stock at the same time, it will result in a sharp decline in the stock price. The stock market is sentiment-driven, and fear of a further decline may result in even further selloffs of a stock. Some traders that frequently day trade may decide to implement stop-loss orders to protect themselves against a downtrend. A stop-loss order placed with a broker helps a trader sell once the price of the security reaches a certain price. Downtrends can vary from a gradual continuation to a sharp decline. A sharp decline may occur as a result of news-related topics, such as a poor quarterly earnings report or loss of a lawsuit. A downtrend can be identified and understood through various forms of technical analysis. One simple area of technical analysis is the use of trendlines. Trendlines connect a series of high or low points. The reversal of a declining trendline signals an uptrend. Another simple area of technical analysis is the moving average technical indicator. The moving average takes the mean of prices over a period in the past. If the price of a stock tends to stay below the moving average, it signals that the price is on a downtrend. 🔹Trading on a Downtrend Many traders look to profit from sell offs of a stock. While many traders will sell, taking the view that a price will decrease further in the future, some traders take the opposite view of hoping for a price increase. Downtrends may also lead to attractive valuation and present new opportunities for traders to purchase shares of stock. In another sense, downtrends allow traders to make money by short-selling stocks. In order to short a stock, a trader borrows shares and immediately sells them, in hopes that the price will fall. If the price of the stock goes down, then the individual will repurchase the shares back at the lower price and return the borrowed shares. The difference between the old price and the new price is the profit that a short-selling trader holds. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Market Reversal & Candlestick Pattern | Spot & Trade It Like Pro Candlestick patterns are frequently applied for the identification of early trend reversal signs. Here are the three most common reversal formations that you may encounter trading different markets: 1️⃣ - Equal inside bar formation Once the price reaches some important pivot point quite often it tends to form a weak candle with a long rejection wick (long in comparison to the buddy of the candle). In case if the consequent candle's body has the same range, we call that the equal inside bar. It can be treated as the reversal formation ONLY with additional confirmation. Without an additional trigger, chances will be high that the market will start a sideways movement instead. 2️⃣ - Engulfing candle Once the price reaches some important pivot point quite often it tends to form a weak candle with a long rejection wick (long in comparison to the buddy of the candle). In case if the consequent candle's body engulfs (has a bigger range) the previous candle, we call that the engulfing candle. By itself, it is a quite strong reversal signal and can be applied as a trigger for opening a trading position. 3️⃣ - Engulfing candle (2X) Sometimes, the engulfing candle engulfs not only the previous candle but also one more preceding one. We also can call such a candle a high momentum candle. It is considered to be the strongest reversal formation (among these 3) and can be applied as a signal for a trade entry. ❗️Remember that candlestick patterns work only on strong pivots /structure levels. Being formed on random levels, the performance of these formations is relatively low. Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
10
Why leverage size is not matterHello dear community. Each trader is a part of discussion about leverages. Some of them say that it's risky, another just playing in casino with 50x. But why leverages is not matter, and how do not lose all deposit? Read below. Firstly, you need to know about 2 things. Support line Risk management Support line I am confident that you know about support line a lot of info, but just reminder. Support line is a zone when price jump back multiply time and coin start growing again. Support line can be detected on each timeframe. But for our case we need to see on 1D and 4H timeframe. Risk management If you are trading without risk management, you will be bankrupt. However, what is that? Risk management is the amount of funds in cash or percentage that you can risk in some trade. For example: You trade BTCUSDT with deposit 1000 USDT. Before you make a trade, you need to decide how many USDT or % will be your risk. The funds that will be lost in the worst scenario of trade. It can be 3-5% for start. In USDT, it will be 30 - 50 USDT. What is next? Next, you should calculate your position size. I suggest using next formula: Position size = Risk /(Buy level - Stop loss). It means if closer to stop-loss you buy order the bigger position you have. Buy level Current chart has support zone on 22546-22261. I suggest split your buy order on few slices on this zone. Stop loss I usually set stop loss behind this zone, in current example my stop at 22222 In this case, the formula will be: 50/(22403,5 - 22222) = 0.276 BTC is your position with risk in 5%. In this example, will be ~6X leverage. But if increase risk until 10%, leverage will be 12X. Trading is not about casino, is about math. Good luck and have good trades!
Education
by JoFiBaTaL
How to Spot the Confluence Zone | Pro Fibonacci Technique If you are struggling with the identification of accurate trading entries, you definitely should try confluence zones. Note: there are hundreds of variations of confluence elements. In this example, we will discuss trend lines and fibonnachi. ❗️To identify a confluence zone, the price must follow a trend line (it should match higher lows if the market is bullish ; it should match lower highs if the market is bearish ). Once the trend line is confirmed by at least two touches and consequent reactions, you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line . 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish , swing high to swing low in case if the market is bearish ). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line . In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
9
🔥SECRET METHOD TO IDENTIFY LONG TERM TREND:VOLUME PROFILE+POC🚀🔥Hi, friends! Trend is the most important thing in trading, so you have to know how to identify it and be a successful trader. In this idea, I will explain to you the most easiest and useful method for trend identification. I know that you haven't heard about that. 📊 THE INSTRUMENTS WE USE TO IDENTIFY THE TREND: 🔥 Fixed Range Volume Profile (FRVP) 🔥 Point of control or POC 🔥 Bitcoin monthly candles/bars. They help to identify the long-term trend without local noise ✅ IF YOU WANT TO UNDERSTAND IF THE BULL MARKET BEGINS AND CONTINUES, YOU NEED: 1. Use the Volume Profile. Just pick it at the left side of the TradingView chart at "Prediction and Measurement Tools". 2. Stretch the volume profile on a monthly candle/bar. 3. After this you will see the Point of Control (POC, red line) which shows you where the most liquidity is concentrated. 4. If the price continues to close above the POC each month, this means that we have a healthy bull market. 5*. If you see that the monthly candle is close below the POC, you need to be more careful with your trends. This can indicate about a trend change, but it happens at least 1 time in the middle of the bull market. Check the precious bull market. Thats work perfectly! 🚩 You can check if it rule works for the BEAR market and write it in the comments. 📊 WHY IT'S IMPORTANT TO UNDERSTAND THE LONG TERM TREND I know that you guys know the most famous trading quote: "Trend is your friend." . Naive but very useful recommendation. The understanding of the long term trend helps you to reduce 50-70% of your losing trades and increase your winrate at least to 60-80%: 🔥 you can use only trend following strategy and make much more money (open only long trades on bull market or open only a short trades on bear market) 🔥 reduce the risk when opening a trade against the trend and cut the losses. 🚩 Additionally, if you buy crypto (BTC, ETH or other alts) on spot, you can use this method to buy and hold crypto till BTC not change the trend. This method helps you to make a huge profit. So friends, this 5 min educational idea helps you to grow your deposit much faster and don't get big losses during the trading. Traders, was it useful for you? I know I have is a lot of experienced traders. Write your most useful trading tips in the comments to help the newbies. 💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
4
E-Book Gift + TRADABLE VS NON-TRADABLE ORDER BLOCKSABBREVIATIONS & DEFINATIONS ORDER BLOCK OB is a Down/Up Candle at/near Support or Resistance before the move Up/Down, respectively. Down Candle is a Bearish Candle Up Candle is a Bullish Candle Bullish Order Block is Down candle at/near Support level, before the move up Bearish Order Block is Up Candle at/near the Resistance level, before the move down IMBALANCE This is Insufficient Trading in the market. Sometimes called Liquidity Void . When there is insufficient trading in the market, the price often comes back to fill out the orders that were left. Imbalance is created by 2-3 or more Extended Range Candles ERC candle often closes at 80% of the candle range Assumptions; When the Market Maker want to move price up at a certain level, it is assumed that, there should be enough sell orders to pair their buy orders with (this is how they make profit). So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV (IMB), we can use this to assume that sell orders that were available at that level were not enough to pair with their Buy Orders. Therefore, the MM will, often, come back at this level for mitigation MITIGATION Mitigation means; to reduce risk. When the MM moves price away from a level with strength and magnitude, say they are buying; it is assumed that this is used to entice retail traders to join the move. And because most retail traders are price chasers, they join the ride with their Stop Loses set. This is the reason (assumed) that the MM will come back to clear retail traders SL. When their (Retail Traders) SL are hit, they are knocked out of the move, hence MM mitigating their risk (THEY WILL RESUME THE INITIAL TREND HENCE MOVING ALONE). you can download that E-book from below URL
Education
by HoneyCreateMoney
trendlines do not workI was with a close friend of mine also a trader a few days ago, he told me that "trendlines do not work" and i am in several social media trading groups and some traders share the same opinion regarding the charting tool. The reason for this is that some traders rely on the basing's that they have been taught or read without taking the time to backtest and get experience , in the trading world you find that theory is a different playing field compared to practical. A trading book may teach to for example , buy breakout of bearish but when traders use this methodology they experience price false breakout , leading to getting stopped out ,but this does not mean the trendline was invalid. Or in another setup they are taught to sell the touch on bearish trendline , then the price rallies and breaks the bearish trendline , this also does not mean that the trendline was invalid. I for one do not take trade signals off trendlines unless there is other factors of confluence in line with the trendline. see , trendlines are used too illustrate prevailing direction of price by connecting highs and lows , so alone they don't give much indepth when analysis apart from mapping out current trend. from my experience and hours of backtesting there are 2 ways i use trendlines. NB: I NEVER ANALYSE PRICE CHARTS WITHOUT USING TRENDLINE. I hope my methodology on trendlines can help make your chart work easier. 1. Momentum Momentum measures the rate of change in prices as opposed to the actual price changes themselves. Momentum is measured by continually taking price differences for a fixed time period , this is why sometime trendlines have to get readjusted to suite current market conditions. Trendlines can be used as a leading indicator of momentum for example , when price breaks a bullish trendline , it does not mean sell immediately or it is not a sell signal , all that it means is that momentum has shifted from bullish to bearish , meaning that you should look for sell setups that are inline with your criteria or strategy vice versa for break of bearish trendline. These setups are called momentum setups. another type of momentum setup is when for example , price is creating higher highs and higher lows connecting the higher lows gives a bullish trendline , as long as price is trading above the trendline it indicates bullish momentum meaning high probability of valid setups are buy setups given that price is above , vice versa for bearish trendlines 2.Dynamic support and resistance Dynamic support and resistances levels are levels are not horizontal or static. When price trades above trendline it is more likely to pull back and test the trendline as support indicating bullish momentum , or it can come and break below (false breakout) and react off it as resistance indicating bearish momentum. This methodology is complex and its important to understand the order flow and using top down analysis to get a higher probability of knowing which move is valid. These methods also are important for traders who prefer trading inline with the current trend , as most time it pays to trade with the trend than against it. I thank God for my failures , maybe not at the time but surely after reflection. I never feel like a failure just because something i tried failed - Dolly Parton
PEPPERSTONE:XAUUSDEducation
by currencynerd
2
Pre Market Levels are CRITICAL in Day Trading 10X Gains For MeCME_MINI:ES1! AMEX:SPY NASDAQ:QQQ CME_MINI:NQ1! NASDAQ:TSLA I wanted to share a basic strategy I've been using that has helped me increase my profitability almost 10X Most people don't know that when the regular trading hours (RTH) markets are closed, the futures markets are running Generally overnight action during the pre market will set a clear high and a clear low. Those key pivots are hidden support and resistance that you WILL NOT see on the normal chart. Strategy 1 - Draw the Pre Market High/Low 2 - Use the Fibonacci tool in the direction of the overnight action either Bullish or Bearish 3 - Use the 0.618 Level as the KEY Algo level where you BUY THE DIP or SELL THE RIP 4 - Rinse and repeat - Always have a stop loss at the last major pivot and scale out profits over 25% Here is a more complete video guide from a trade I took last week: www.youtube.com
CME_MINI:ES1!Education
by tradingwarzone
3
Types of Markets in TradingView Land !!!👨‍🏫Hello👋 dear traders. I am Pejman👦, and today I want to explain the types of markets📈 with another story from TradingView🎢. Maybe you love the world of animation👶 like me, and I'm trying to make the trading world as beautiful and colorful as the animation👶 world🌍. So let's dive into another Tradingview🎢 land story. Once upon a time⏳, in Hundred Acre Wood, Christopher Robin decides to go to Stocktopia to live with other traders and try to learn trading skills📉. Since Winnie the Pooh🧸 likes Christopher Robin very much, he and his friends decided to go with him and move to the city🌆 of Stocktopia. They all knew that the path might be long and complicated😢, so they decided to compare different Types of Markets 📈 and talk about markets📈 along the way🛣. Do you know the Wise Owl 🦉? He always has many experiences of everything and explains them loudly. On the other hand, he had a lot of experience in technical analysis and said: When I was a beginner, I was baffled😟 and even lost a lot of money🤑 because I didn't have a good perception of the market📈. When my buy orders were filled, the stock would face a crash💥. And when I was selling, green candles📊 jumped one after the other. Annoying!😡 I only found out why when I went to Stocktopia and realized that the market📈 has its own types. Trends are essential in the market📈, and you need to learn to recognize trends. For training, first, I had to know what technical analysis📊 and its benefits are. There was a moment something caught my eyes👁 when I was surfing🏄‍♂️ on a website called “Tradingview,” and I opened the post to see what technical analysis is.👇 During my trading, I learned three types of markets 📈. Bullish 🟢, Bearish 🔴 & Range market📈. Tiger🐯: Whoo Whoo Whoooooo! I liked the name of the Bullish trend🟢. Can we start from that first? What is a Bullish trend🟢? The Wise Owl🦉 showed Tiger🐯 a chart from the book that was with him and said: Dear Tiger🐯, to find a Bullish🟢 market📈, you must first draw a trendline like a dynamic support trend line. Do you remember dynamic support and resistance lines? If you don't know these lines, it is better to read the story of Princess👸 Snow❄️White Chart and Trader Dwarfs before hearing the story of the market📈 types.👇 By the way, the Bullish🟢 market📈 is very similar to Tiger🐯. In the Bullish 🟢trend, buyers are happy and positive emotions are seen in the market📈 atmosphere. There are more buyers than sellers. That is, buyers hope for the growth of a stock. In the Bullish trend🟢, you must be fast, so that you don’t lose opportunities. As you can see in the chart, the price inflates more like a balloon🎈. It goes Higher High (HH)every time and forms a Higher Low(HL)🗻 than the previous one. But no Bullish trend🟢 is permanent. The market📈 will experience a crash eventually. So you have to be smart because shopping will only sometimes be profitable. You will get bloody candles if you wait to buy them in time. The Wise Owl 🦉 continued: The Bullish market📈 has conditions that I will explain based on my experience: Each Low should be at least one step higher than the previous one and make a Higher Low(HL) like the Tiger🐯. Usually, each High🗻 is formed one step Higher High(HH) than the previous one. Preferably, when the price rises above a High🗻, it is better not to return below it. This type of trend is called a Bullish market 📈 because when the bulls🟢 want to attack, they raise their horns from the bottom to the top. And the buyers increase the stock higher and higher by buying. Christopher Robin asked: What if Higher High(HH) doesn’t touch the previous High🗻? The Wise Owl🦉 said: This is a sign of a strong Bullish trend🟢. If you see such an event, prepare your dollars for shopping. Does anyone have any other questions? Eeyore said: What is the trend of Bearish🔴? Why is it named like this? Wise Owl🦉: How interesting that Eeyore himself asked this question because the Bearish trend🔴 is exactly like Eeyore. Ivor John has some negative feelings about him. Shareholders also feel disappointment😩 and fear😱 in the trend. Because of this, the number of buyers decreases, and the number of sellers increases. Candles turn red like roses🌹; the more sellers there are, the bigger this red flower garden🏡 will be. Highs and Lows🗻 form one after the other lower⬇️ and lower⬇️. In a downward trend🔻, if you are in a one-sided market📈, you should sell your shares, but if the market📈 is two-sided, you can present yourself for a sell/short position. In this trend, negative emotions may dominate the market📈, but sellers will be happy. Like the upward trend, the downward trend also has its conditions. Can you guess them before I say them? Po said: Ah, in the growth trend, each High🗻 should be formed lower⬇️ than the previous High(LH)🗻, and each Low should be formed below the previous one(LL). On the other hand, if the price falls below a Low in the downward trend, it is better not to return above that Low. The Wise Owl🦉: It was great, Pooh🧸. Now let's take a look at this Bearish trend🔴 chart. As you can see, there is no news of going up(HH)🔺 in downward trends🔻. Instead, we see Lower Lows(LL) and Lower Highs(LH). But the market📈 is only sometimes bullish🟢 or consistently bearish🔴. Does anyone remember the name of the third type of market📈 that I mentioned? Piglet answered with a bit of stress: Ummm, I think it was Range Market 📈. Wise Owl🦉: Hohohoho, you are right, Piglet. But don't be afraid and don't stress because this market📈 has no particular trend. If you looked at the chart and could not find an upward🔺 or downward trend🔻, the sea market📈 is tame, and no waves move the candles up🔺 or down🔻. The number of buyers and sellers in the Range market📈 is almost equal. In the market📈, Range traders are like piglets. A group of them have hope for stocks and buy with confidence, and another group is still afraid, like piglets, and thinks that the value of their shares may decrease. So they sell it. Neither bears🔴 or bulls🟢 win in the Range market📈 because they need more trading volume to pull the market📈 in the same direction and form a strong up🔺 or down🔻 movement. In the market📈, the price range is involved in two Ranges: buy or demand Range and sell or supply Range. The support zone pushes the price upwards🔺 in the buying Range, but the resistance one does not allow the price to advance. Therefore, the price is passed between these Ranges like a yo-yo until one of the parties enters more volume and breaks this price compression. The head will run away from one side when the price is done. As you can see in the picture, finally, the sellers ran away from the price :) And the bears🔴 won over the bulls🟢. Rabbit: I have heard that most financial markets are Range, and it’s more difficult to trade in this type of market. By the way, I don't want to rush, but I guess it's time to tell us the use of all this information. The Wise Owl🦉 laughed and replied: "Hey, you didn't rush. Now that you are familiar with different types of markets📈, it is time to learn how to trade in these markets📈." You must first draw trendlines in trending markets📈 to get a general view of the chosen stock📈. Then you can take a position in the direction of the trend. Be sure to remember that you’re entering at the right points. Take your time, because waiting is a flower that doesn’t grow in everyone's garden. The owl🦉 opened a new page and showed a downward trend🔻, which later turned into an upward trend🔺. Owl🦉 continued: As you can see from the chart below, the price is caught under the bears' claws, and the market📈 is bearish🔴. It has formed Lower Lows(LL) and Lower Highs(LH). But after the Bullish engulfing candlestick pattern, the trend changed and turned into a Bullish🟢 market📈. If you want to learn about candlesticks and how to trade with them, you can go to the following post because I have collected how to trade with all candlestick patterns in this post.👇 As you know, the more the price collides with a trendline📈, the more valid the trendline will be. So these lines📈 will become valuable, like support or resistance lines📉. In this example, we learned how effective candlesticks could be in identifying or finding the end of trends. Now it's the turn of the Range market📈, and it is possible to trade in this market📈 considering the volatility of the trend. In the Range market📈, as I said, the price is like a small fish🐠 stuck in a fast Eeyore. The flow of water💧 and the flow of buyers and sellers move this fish🐠 into the Eeyore bed🛌. As a trader, if you want to catch fish🐠 from this water, you must wait until it approaches one of the Eeyore beds🛌. Up🔺 or down🔻 bed, i.e., support line or resistance line. You can buy when you see the price on the support line, and when you see it on the resistance line, it is time to sell. Rabbit said: Haha. That is very easy. Buy low and sell high. The wise owl laughed😂 and said: You are exactly right. Trading in this market📈 may seem simple, but this fish🐠 can escape anytime. Trading in Range Market📈 is like eating a sandwich🥪. If you press your sandwich🥪 too much, the fillings of the sandwich🥪 maybe spilled out from the top or bottom. Everyone heard the sound of Po's stomach and laughed😂. Po said: We have been walking for a long time, and I also ate my honey🍯 on the way. How much is left? Christopher Robin looked around with his camera📸 and said we're finally there. I can see the lights💡 of Trading Wave🌊 Land🎡. The Wise Owl🦉 continued: Now, knowing the types of markets📈, you can learn more than technical analysis in this land. All of them went to the land of Trading Wave🌊, happy😊 that they got good information along the way🛣 by heaRange about the experiences of the wise owl. If you want to learn how to trade well like the people of this land🎡, practice today's tips and join me every week because I have many stories to tell about this market📈. This land🎡 is full of traders who lost their capital💸 and became disappointed😔 without carefulness and practice. If you don't want to be one of them, remember to manage your capital💸 and training. I hope you are always healthy and prosperous😎.
Education
by pejman_zwin
9
🟢Support🟢 & 🔴Resistance🔴 in TradingView Land !!!👨‍🏫Hello, guys🤪; I'm Pejman, and today we will change the regular TradingView to TradingView Disneyland🎡 . I want to tell the story of Snow White and the trader dwarfs. Once upon a time🌞, in the kingdom👑 of Stocktopia, there was a young princess👰‍♂️ named Snow White Charts. She was the heir to the realm of Stocktopia. Still, unlike her father, the King of Stocktopia, a successful businessman🧔‍, Princess needed help understanding the stock market. She often lost money💸. One day, while walking in the forest🌿🌲, Princess Snow White Charts stumbled upon an old house called Dwarf traders. She became curious and decided to visit this house🏠. Dwarves lived in this house🏠 whose job was to help the traders. They directed the price of different stocks by creating support and resistance lines or zones, and each dwarf was responsible for one of them. The Princess did not know anything about these lines. So she decided to stay to learn about these powerful lines. One of these dwarves, named Doc, looked older and wiser than the other dwarves. The Princess enlisted the help of Doc to learn how these lines worked. Doc was proficient in various methods of technical analysis and had an exceptional talent for simplifying complex issues😝. So he tried to teach these lines to the Princess👰‍♂️ in the simplest and best way possible. If you also want to master technical analysis like Doc before learning support and resistance lines/zones, read the following post to learn what technical analysis is. 🤓👇 Doc showed the following picture to the Princess. Can you tell what the role of support lines is before reading Doc's explanation❓👇 As you can see in the picture, the candles are placed in a downward trend, and they go down🔴 like playful children🧒🧒 playing on the slide. Doc explained that support lines are like a bouncy castle🕍 for price. When the candles reach these Lines, they'll push them up just like a trampoline; the price will grow. Remember that they prevent the price from moving too far down or falling.😅 The candles are safe on the support lines, so Sleepy sleeps peacefully. Doc believes that when a stock's price hits support lines, it can indicate a potential buying opportunity. Still, when it breaks down🔴 the support line, it can show a possible selling opportunity; but I will discuss this in the following. Now you may ask, what are resistance lines❓ The exact same question came up for Princess Snow White Charts😁. First, look at the chart below.👇 Resistance lines are like the roof of a bouncy castle. In an uptrend🟢, when the candles are happy and constantly jumping higher and higher, the resistance lines prevent them from going further. The resistance line is guarded by Goupy, who pushes the candles down🔴 like a bully, whenever the candles hit the resistance line. Let's suppose all these price lines & dwarfs want to lead candles in a particular direction. Now that you are familiar with support and resistance lines, you might have the same question as Princess👰‍♂️had again. How to recognize and find these lines❓ According to Doc, there are several ways to find these lines: Past Price Data: Sir John says: "Price data is like a roadmap, showing you where the market has been and where it might be heading." Looking at past price data is like checking the tracks of a criminal. It may be seen, but it is simply not correct. You can know how he behaved in the past because he may repeat the same behavior in the future. So, to better understand the price, you must also know its past. Even Philip Fisher also believes that: "Price data is the lens through which we can see the market's true nature." Previous Lines: By finding previous support and resistance lines, it's as if you've found a criminal's 🔫 recorded files. Price data is the story of the market, and those who ignore it are doomed to repeat their mistakes. You can't predict the future without understanding the past, and the market's past performance is the best indicator of its future performance. Wow, speak of the devil🤐, I forgot that indicators also have important points to say too. Indicators: Maybe price data is like a roadmap🚨 or past lines like a criminal recorded file. But indicators are like GPS. Indicators are the GPS of the financial markets, and they guide us to our destination and help us avoid getting lost. Indicators are the financial markets' fingerprints, revealing the underlying patterns and trends. Doc and I found some indicators helpful in identifying supply(resistance) and demand(support) zones, such as: Moving Average/Parabolic SAR/Bollinger Bands/Ichimoku Kinko Hyo/Fibonacci/Pivot point There are many ways to recognize these lines and even indicators that help you find them like an assistant, but you should still try to know and learn them yourself. For example, Doc says there are additional support and resistance lines. Like the slides in the game, they can be straight or sloping, going up🟢 or down🔴. I'm kidding, but they really have these types 🙂. In the previous pictures, I showed you only static lines. Now, look at the pictures below because I will show you all the types of these lines with examples. For example, if the support and resistance lines are like a road🛣 on the ground, they are called static support and resistance lines . Now, what if this road turns into steep ropes❓ Well, it is known that they are called dynamic support and resistance lines . For example, if you want to go mountain🗻 climbing, it is as if you are climbing with dynamic support. In general, in an upward🟢 trend, dynamic support lines like a ramp🚧 prevent the price from falling. Now that we are talking about climbing let's introduce another game🎲. The zipline🤐😄. The price decreases from the dynamic resistance lines like a zipline in downward🔴 trends. 😄 I must say that theoretically, the price will go down after hitting the dynamic resistance lines and these lines prevent price growth🟢. Dynamic resistance or support is also called a trend line. Trendlines are helpful in many parts of technical analysis, such as classical patterns. Just take a look at the below post. You will find that trend lines help us effectively identify these patterns or trade with them. That's how I am! COOL!😎😎.👇 Don't worry and don't rush because, as said: Patience is bitter, but its fruit is sweet. Soon I will teach all these patterns in future posts, but we have to go step by step together.😎😎😎 But I must add that the price is also very playful😛. The price may cross these lines, be above the resistance or below the support, and escape from them. "If price can make a credible breakout, this could be a good place to trade and make some sweet dollars," Doc whispered to Princess Snow White Charts. What is a valid breakout❗️❓ This was the question that arose in the Princess's 👰 mind, and I think it is your question as well. Imagine that the resistance line is like a prison that confines the candles. A diligent & playful candle needs the support of buyers to escape from this prison. If the buyers support it, it can get out of this prison. After escaping the breakout candle, if another candle, called the confirmation, escapes from this prison and jumps above the breakout candle, the way will be clear for other prisoners, and they can run. So a valid breakout will happen. A valid breakout is created with a strong candle called a breakout candle(such as the Marubozu candle); after that, a candle as a confirmation candle will confirm this breakout. Don't worry about selling below the Support line or buying above the resistance line. If a valid breakout has occurred, the target stock will decrease/rise further, and the trend will not stop or end anytime soon. Let's walk through an example of a valid breakout with Doc. As you can see, the price broke this line with a strong candle and made a confirmation candle. As a result, we consider this a valid breakout. If you have noticed, finally, the price went back to this line to greet the previous line. This movement is called Pullback . In general, to say that a breakout is valid, there are several conditions: Preferably, the breakout candle and the confirmation candle are the same color. The point where the breakout candle closes must be above resistance or below support. The breakout must have happened with the body of a candle, not with the candle's shadow. Even the closing point of the confirmation candle should be above the resistance breakout candle or below the support breakout candle. But I should mention that the trading volume increases when a valid breakout occurs. Now that you know a valid breakout, we can also check an invalid breakout, so dive down🔴 to the chart below. As you can see, the price tries to be playful😜😜 and break the support line. But there are no buyers to support the price for this movement, so this breakout will be temporary and short-lived. The price will soon return below the Support line. The invalid breakouts are sometimes known as bull traps or bear traps which I will explain in future posts. I advise you to only sometimes look for a straight line for support or resistance. I use support and resistance lines in my analysis to draw trend lines. But when I want to determine the support and resistance of a currency, I draw them as support and resistance zones. Using zones makes you no longer involved in each line's small & fake breaks, and you won't make mistakes with each break. Now that you have learned almost everything about these lines😎😎, it's time to start fishing and apply these tips to real trades. I have considered all the necessary items for trading with these lines in the chart below. You might understand the reason for trading by looking at the picture before reading the description. ( The First Method ) The picture shows the price below this resistance zone, and they tried to escape several times. Still, finally, when the trading volume and the number of buyers increased, it could cross its resistance zone with a strong candle(breakout candle), and then the confirmation candle formed. Now, as traders, we should place our Entry Point(EP) slightly higher than the confirmation candle. And also, be careful;😱 maybe this break is invalid, or it returns below its resistance. So we place our Stop Loss(SL) a little lower than the breakout candle. Now, look at this chart again. But I am going to teach you another method for trading. ( The Second Method ) You should only sometimes enter into a position at one point. For example, when the price returns to its resistance to greet(Pullback), it's a good time to divide your money into two parts & re-enter the position. With this, your average Entry Point will be lower, and the Risk/Reward(RR) ratio will increase. ( I know that the Risk/Reward(RR) is something that some of you are unfamiliar with, so don't worry cause I'm going to talk about it in future posts.) There is another way to trade with these lines. (The Third Method) You've got another way to trade with two Entry Points. You can enter the position when the pullback accrues; the other entry point is a little higher than the highest price before the pullback. In this method, you will be more confident about the position, but at the same time, the Risk/Reward (RR) is decreased compared to the previously mentioned methods. The Stop Loss is the same as the others. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Prince Snow White Charts learned all these tricks along with Doc and the other Dwarves. Excited to try this new knowledge, he immediately returned to Stocktopia😊and applied what he had learned to his trading. To his surprise, his trades became more profitable. The king was pleased with his daughter's improvement, & these lessons were taught to all the traders in the kingdom👑 of Stocktopia. From that day, Stocktopia was known as the kingdom with the most successful traders, thanks to the wisdom of Doc and Princess Snow White Charts.😊😊 Stocktopia's traders lived happily ever after, thanks to the protection and guidance provided by the Seven Dwarfs of Support.😇😇 I hope you enjoyed this story and use support and resistance lines/zones in your trading. But never forget that before using any new method, try it several times to master that method.😎😎😎. Now let's leave the world of stories and return to the real world of traders. Take advantage of the following posts. In the end, I wish you health and success.
Education
by pejman_zwin
80
TECHNICAL ANALYSIS is the new KING ok here me out. i'll go straight to point this message is for the newbies (oldies gonna hate) what is pure Minimalist Technical Analysis Trader ( MTAT : i just made this up) -it is when u leave out all so-called indicators and focus on the chart -some of these indis are: MACD, RSI, ATR, STOCHT.... -it's when u leave out the FUNDAMENTAL analysis and focus on the chart pattern - i'm talking here about financial news and garbage flash news - didn't u sometimes realize that a news come out, but the dollar act contrary to the news it-self? HOW TO APPLY this MTAT ? let's be practical, but first u need to watch so many charts until ur eyes pops out (it's a prerequisite). 1- always pick a 4h-time frame chart 2- always brush ur teeth before bed time 3- always look for a bullish pair to trade (this is essential for the plan to succeed) 4- after identifying the bullish pair, start looking for SUpport & Resistance...but never make the chart too complicated, u really need like 2-4 lines drawn only 5- after u draw the S&R lines, look for retracements (the pair is going down slightly) 6- use the FIBONACCI drawing tool and draw from the lowest to highest point (before the retracement) 7- it's best to focus on the 61.8% line 8- look for a confirmation candle: a- a red Bar, which the low point of it touched (crossed) the 61.8% Fib line b- followed by a green bar which closed ABOVE THE fib 61.8% line c- place ur buy trade when the green candle closes 9- how to set your target: a- use the (-61.8% or -100%) FIb levels or b- use the Resistance line u drawn previously now the question is, do u really need MACD or RSI or STOCH? of course NO, if you google it, u'll know that these reflects previous price actions? so why use it for FUTURE price actions? what to do when big news are coming out? IT WILL ACT ACCORDINGLY THE PREVIOUSLY SET CHART PATTERN...this will never fail you DO YOU PLACE STOP ORDERS? NEVER, never put pre-set stop orders, you should be active on ur screen and wait for the price to fall to the price u set as a stoploss, AND CLOSE TRADE MANUALLY WHY?, because when we have big news, we have volatility the pair will go up and down so hard to close all stoploss orders then it will continue to obey the technical chart pattern as a fukn slave! let's practice: use the FIB Ret tool: identify the red and green candle: place your buy order: et voila.... #STOP_BEING_POOR
XEducation
by meez_PremiumNOT
2
TOP 5 Price Action Secrets You Must Know 🔴Multi-candle patterns are more reliable The more candles a specific pattern contains, the more reliable it usually is. 3 candle patterns are better than single candle patterns. 30 candle patterns are usually better than 3 candle patterns. Patterns like head and shoulders, double and triple tops are among my favorites, exactly because of this reason. They consistently result in higher probability trades, which is what we’re all after. It doesn’t mean that a good pin bar setup won’t work, it just means there’s a higher probability of having these multi-candle setups resulting in a winning trade. 🟠Know where to place your stop loss Knowing where to place an order is just the beginning. Where do you place your stop loss? Fixed pips stop loss levels are hardly a good approach since the market volatility can change and every trade should be looked at within the context of the recent market history. 🟢Always look for confluence This is absolutely one of the most important secrets you have to know about. Confluence is everything. So you’ve found a sweet price action setup. Great! Now make sure it has confluence, meaning that it coincides with other valid signals that support your trading idea. 🔵Tell a story of what happened Every chart tells a story. It might be a story of clear direction or a story of messy back-and-forth battling between buyers and sellers. In a similar way, we can talk about clean price action vs messy price action. It is up to the trader to find the story and better understand what the market might do. 🟣Context is everything Depending on where a price action setup occurs, you should interpret it differently. The same pin bar could be bullish or bearish, depending on if they show up at the bottom of a downtrend or top of an uptrend, respectively. Not all patterns are also worth taking if they are not preceded by the right price action and happen at the levels that are in one way or the other of significance. 🟤Identify key support & resistance zones Support and resistance (or S&R for short) are terms used to denote areas where price reverses at its lowest point (support) and the highest point (resistance) on a chart. Often, these zones are “tested” multiple times as traders look for an increased buyer and seller activity around these levels. It’s important to note that support and resistance are usually not thin lines, but rather zones. 🔴The Bottom Line The price action strategy is one of the most powerful tools for extracting money from the markets with predictability and manageable risks, but only if used correctly. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
15
Learn to Read the Strength of the Candlestick | Trading Educati What it is? Candlestick rejection strategy is a pure price action swing trading strategy. It makes use of the concept of price rejection or candlestick rejection patterns to invalidate counter-trend momentum for a trade continuation. By applying such candlestick rejection strategy onto swing trading, it allows trades to capture spots at which market prices are at rest during retracements before rejoining back the existing dominant trend. How to use? Some trade recommendation for such candlestick rejection strategy is to use it as a candlestick rejection pattern on counter-trend moves. This means that we pick candlestick rejection pattern only for the sake of searching for breakout continuation with the dominant trend at counter trend waves.Entry can be made after the breakout occurs at the high or low of The Mother Bar and stop loss order can be placed at the opposing breakout side's high or low. Further trade help can also be incorporated to help increase the trade's probability of success. For instance, it can be used together with other technical tools such as dynamic moving averages and Fibonacci retracement tool. Some may even want to consolidate other trading strategies to further increase trade’s probability of success. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
5
🔥WHAT IS NEEDED FOR BITCOIN TO GROW HIGHER? 1300%vs4900%🚀🔥Hi friends! A lot of newbies consider these things as something bad. These make them very unhappy and disappointed because their position gets the loss. These things are the pullbacks or corrections after significant growth. Everyone is waiting for it now to buy more cheap crypto. 📊 The pullback is the price fall after significant growth. But why is it so good for price growth: 🔥 1. it makes the market (BTC as well) much healthier because it liquidates overleverage traders. For example, -40% pullback liquidates all traders with 1.5x leverage and coll down the market (as it was in the 2016-2017 bull market). 🔥 2. it gives the opportunity to enter the long traders for the advanced traders. If we have 5-6 pullbacks every time after 100-150% growth, you can use already earned money in new trades (increase the risk per trade). When the price doesn't make the pullbacks and you enter the trade at the very beginning of the bull market, you have no chance to exit the trade and use the margin from the profit to increase the risk per trade. ✅ COMPARISON OF 2016-2017 AND 2020-2021 🚩 2016-2017 BULL MARKET The market had made 4900% of profit in just 2 years. I mention 6 huge dumps with 30-40% drawdowns. These dumps cool down the market and liquidate overleveraged traders. Lots of entrance opportunities. Hope the next bull market will be the same. Of course, you can say that market was not as big as now and I agree with you. But the whole BTC capitalization is equal to 3.5% of the entire gold cap, so it's just the beginning for crypto. 🚩2020-2021 BULL MARKET This bull market as well as the 2019 local bull market was almost with no pullbacks and entrance possibilities. Bitcoin had made just +1300% in 2 years. Just 3 pullbacks with +16-30%. Almost no liquidations and no cool down of the market. Not the best growth as the result. In that bull market, the beginners can't even normally use their gaining margin to open new trades. 🔥 WHAT WILL HAPPEN IN THE NEXT BULL MARKET? I think that this growth will be the same as at the last bull market. Of course, it will be some surprises as at each bull market, but it will grow nonstop. I make a huge update about this in the last idea. Check it if you want to know what to expect from BTC and the crypto market here👇 🚩Traders, what is your expectation about BTC bull market? Do you agree with me or have another argument? Write it in the comments! 💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
7
📢 The Broadening FormationA technical chart pattern recognized by analysts, known as a broadening formation or Megaphone Pattern, is characterized by expanding price fluctuation. It is represented by two lines, one ascending and one descending, that diverge from each other. This pattern typically appears after a significant increase or decrease in security prices and is denoted by a sequence of higher and lower turning points. Normally this pattern is visible when the market is at its top or bottom. The greater the time frame is better the pattern will work. 🔹How to identify Generally, the Broadening Formation consists of 5 different swings. But the swing has to have a minimum of two higher highs and two lower lows. A trend line is drawn by connecting point 1 and point 3 while points 2 and 4 are also joined together to draw a line. These two lines create a shape that looks like a megaphone or inverted symmetric triangle. These swings’ highs and lows have to close above or below its pivot line and therefore they will create swing high as pivot high (R1, R2, and R3) and swing lows as pivot lows (S1, S2, and S3). A breakout occurs when the line does not respect its support or resistance line and closes outside the shape after making the 5th swing. 🔹Volume Volume plays an important role when it comes to the recognition of this pattern. In the Broadening Top, volume usually peaks along with prices. An increase in the volume, on the day of the pattern confirmation, is a strong indicator. 🔹Failures This pattern also can be traded when it fails but is necessary to identify the failure perfectly. A failure can be spotted when it fails to break the trend line (upper or lower as the case may be) after completing the 5th swing. Suppose in a bull market condition, this pattern is formed and if it fails to break the upper trend line, traders go short when the price goes below 3rd swing high (R2). Similar is the scenario, when the market is in a bear phase and it fails to break the lower trend line (S2), traders take a long position when the price closes above the 3rd swing high. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Are Retracements Stair-Stepping Toward a Breakout?The S&P 500 has frustrated traders for months as a tightening range punishes both bulls and bears. Picking levels in a market like this can be a huge challenge because prices keep revisiting the same spots as they narrow. It’s a bit like trench warfare, with armies battling futilely for weeks over a few yards of territory. But one basic technique has provided some clarity to help navigate the back-and-forth: Fibonacci retracements. Notice how SPX surged from below 3500 on October 13 toward 4100 by early December. The rally stalled around the 200-day simple moving average (SMA). Sellers quickly returned, and for a while it looked the bears were in control again. But then the index held 3800: a low from May 2022 and a “nice round number.” The level had other relevance because it represented almost exactly a 50 percent retracement of the preceding rally. (See the yellow markings.) SPX sat for the next two weeks before returning to the 200-day SMA. The bears tried another attack, but couldn’t get prices to close under 3890. This matched the December 21 high, but it was yet another 50 percent retracement. (Marked in white.) Here are two potential lessons for traders: First, retracements of current moves can be a simple way to find levels and manage risk. This is especially true when many price points and indicators compete for your attention. Second, this kind of Fibonacci analysis may suggest the bulls are taking charge. After all, if prices rallied, retraced and continued higher two times in a row, it could be trying to tell us that a new uptrend is taking shape. Are we stair-stepping toward a breakout? TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
SP:SPXEducation
by TradeStation
3
230113 - EQUINOX, SOLSTICE, AND ZENITH IN LTF CHART ANALYSISNOMENCLATURE It is reference to the position of the sun relative to the Earth. When the sun is directly over the Tropics of Cancer and Capricorn (21 June and 21 December respectively) are the Solstices. When the sun is directly over the Equator (21 March and 21 September) are the Equinoxes. A 5th line is the Zenith, the point in the day, when the sun appears at it highest. lIKEWISE When price is over the Zenith, it is in balance. The further price is removed from the Zenith, it enters extremes, where macro-economic conditions are no longer 'normal', and where imbalances in payments are expected. HOW TO DRAW SOLSTICE, EQUINOX AND ZENITH? This can be arbitrary. Look for a Price Level where most rejections are found, indicated as the arrows on the illustration. Particularly, those S&R Levels that come back into play many years later. WHEN TO USE SOLSTICE, EQUINOX AND ZENITH? In ranging markets, like FX and commodities – with Gold currently possibly an exception. It is useless in trending markets, as in Dow Jones. HOW TO TRADE SOLSTICE, EQUINOX AND ZENITH? It is useful in position trading. Price is expected to bounce up and down in its channel, until it breaks. Solstice, Equinox and Zenith are very established S&R zones, and not easily broken. But when it breaks, price WILL go to the next S&R line. When it hits a Solstice, Price will go back all the way to the opposite Solstice. It may take a few years, but it makes 2008 and 2020 are easy trades with a lot of money to be made, having confidence in this method alone. Assume normal price levels when Price is in between Equinoxes. Normal economic conditions. Normal Balances of Payments. When Price Action is ranging near a line, distribution and accumulation is taking place. Look at the lower TF to choose your side of the market. Expect the Zenith to be a reversal point, unless price is approaching at a great speed in the middle of economic crisis. From a macroeconomic and geopolitical point of view, breaking the Zenith is an event that changes the world. When price is trading below the Zenith, it is a sign of recession, taking a bearish stance gives more probability of being profitable, until something ‘weird’ happens, like oil futures dipping below $0.00. Conversely, when Price is Trading above the Zenith, probability dictates to take a bullish stance.
NYMEX:CL1!Education
by UnknownUnicorn39208297
1
Why Daily Time Frame Analysis Will Make You a Better Trader Most beginner traders often think that money is made in the short-term timeframes, so they go the way of intraday trading, believing that it will enable them to quickly grow their small trading accounts. They have this belief that the lower timeframe provides more trading opportunities that can allow them to make more money in the long run. Given, the daily timeframe offers fewer trading opportunities and may seem slow and non-exciting to most traders, but there in lie the benefits — it forces you to have patience, trade less often, and make better trading decisions. While the intraday timeframes offer more trade setups, most of them fail, making you lose more money. The benefits of using the daily timeframe: A better view of the market structure The daily timeframe helps you to have a broader perspective of the market so you can have a better view of the price structure and the stage of the market cycle. It gives you a bigger picture of the market — you can see the price action over a longer period. More significant support and resistance levels The price swing points on the daily timeframe are more significant than those on the lower timeframes, and you know why — more traders are watching the daily timeframe than any other timeframe. More reliable price action patterns One price bar on the daily timeframe represents all the transactions that took place on that trading day, including during news releases. So, it captures the entire day’s volume of orders, which is more significant — the lower timeframes that may even be too small to absorb all the others from a high-volume trader. Always start your analysis from a daily time frame. It is very insightful, and it will bring your trading to the next level. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
12