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Support and Resistance

Higher resolutionHigher resolutions aka lower timeframes have several uses: HIgh res levels 1) For more precise entries past the positioned levels. You have a level on your current resolution, a level you want to use, let's call it "X". You turn in higher resolutions, and scale in around the levels there, past the X; 2) For precise entries during positioning. You have a level that you expect to be positioned 'that way', let's call it "Y". You turn in higher resolutions, and scale in around the levels there, past the Y. An example on the chart is exactly about that. Suppose we expected a 1M level (red line) to be positioned as support. We've opened 1W chart and scaled in at 1W levels below the level; 3) Overridden levels. Forgot to mention, just as overridden waves, overridden levels do exist. It really concerns an imaginary level called value aka fair price. Usually, when you have an overridden wave -> value level in the middle of this wave, the real levels around value exist only deep in higher resolutions, and are already cleared, long time ago. So, they kinda "reactivate" again inside an overridden wave, near the value; 4) For scaling out. When offloading risk, you don't want to do it at the levels that You, yourself, expect to be cleared xD. And that includes the levels from the high ress. HIgh res waves 1) To fine tune the location of back levels. Positioning of a level on a given resolution is a so called pattern seen on higher resolutions. I can't say much about the predictive power of dem patterns, but can say for sure that fine tuning the back levels by finding boundaries of these patterns is a good idea; 2) Simply monitoring the action on higher resolutions gives information about what's happening around your levels of interest. Everything explained in "Current resolution" can be applied there. You may come up with more uses. The main part is to understand what higher resolutions are: less data in greater detail. Now how would you leverage this info?
CME_MINI:ES1!Education
by gorx1
Lower resolutionMore data on lower resolutions, smth that others call higher timeframes. Low res waves While being on a given resolution, the lower resolutions are mostly used to understand the trends within the overall fractal. In general, you want to trade along with the strong low res wave, and don't trade against an exhausted low res wave. While being on given resolution, you're interested in all the lower resolutions, not only in the first adjacent one. So if you operate on 1H charts, you also need to consider 6H, 1D, 1W etc, not only 6H. For example, imagine being in a strong up trend on 1W chart. It won't go 4 ever. There's no exhaustion in 1M wave. But here we go, and exhaustion on 1Q chart. And "suddenly", the levels on 1W chart start to position as resistances! Before that, the overall trend on 1Q surely showed some weaknesses, but there was no evident evidence. This kind of info could've been only gained from more data. Low res levels Now that's really interesting. As I mentioned somewhere before, while being on any resolution, ALL the levels from ALL the lower resolutions should be monitored. That's why people say that it's harder to trade on lower timeframes (higher resolutions), simply because they don't know that simple fact I just mentioned. They see a reversal "in the air", but, as you already know, there's always a level. So, a level from 1Y chart does matter on 1 minute chart. Yes, it does. How? The action around low res levels are somewhat common with the action around option strikes. In a sense, it's a microstructural phenomena as well. Without further analysis, what you know 4 sure is that low res levels might produce reactions, even if a level is from 1Y chart and you are on 1 sec chart. In general, they allow rapid price moves to come through, and produce reactions when prices approach these levels in normal way. Why? As you know, it becomes cheap/expensive PAST the level, never before. Now imagine price comes to a level in a usual manner, or even slower. Chances for a deep dive past the levels are low. What you do? You scale in closer to the level. And now imagine price flying fast. It'll make sense to scale in deeper with a bigger size, to get better prices, to reduce risks. Why not if the market activity allows it? It's a 1H chart on the screen there, and the yellow level is a support from 1W chart. Take a look how the 1H action unfolds around that level.
CME_MINI:ES1!Education
by gorx1
Current resolutionAside of the usual things ie waves & levels, being on a given resolution, mainly we are interested in the direction in which trading activity develops (so called, trend, gradient, slope etc). It is not exactly necessary if you follow a vehicle on every resolution, this way you always know the direction by simply understanding whether we are in low res buying wave or we are in low res selling wave. Still it's useful, especially for spotting in real time how the trading activity reverses, how a low res wave ends (or not) . All these higher high and lower lows, mark ups & mark downs, trend lines (omg), "value" moving up or down, it was all close but not exactly on point. A trend aka tendency has not much doing about movement per se, it's all about a certain sequence of events. After numerous logical experiments, you will arrive to the following minimalist understanding. First let's define 2 things: long event and short event. Long events: 1) a level gets positioned as support; 2) a resistance gets cleared; Short events: 1) a level gets positioned as resistance; 2) a support gets cleared; When you see a sequence of 2 unidirectional events in a row, it means you have a tendency = trend. 1) when you see multiple long events in a row (2 is enough), this is up trend; 2) when you see multiple short events in a row (2 is enough), this is down trend; 3) when there's no sequence, this is "everything else"; Everything else is in fact a loosely defined case. Yes by definition it's the iteration between long & short events, and it works well, however this kind of activity may 'invite" emergence of very short lived trends (2 unidirectional events). That tells us this: 1) While being in an up trend, levels are expected to be positioned as supports and then hold when approached by the exhausted selling waves. 2) While being in a down trend, levels are expected to be positioned as resistances and then hold when approached by the exhausted buying waves. 3) While being in a "everything else" situation. You expect an iteration of long & short events. There are clues that can help in dealing with "everything else" cases, provided by comparative analysis between positioned level and waves. Comparison between levels is made the same way as with waves. Best of 3: 1) Price: distance between front & back parts of a level. Narrower - stronger; 2) time: a level that formed later in time is always stronger; 3) volume: you compare the current amount of volume gathered & consumed during positioning & testing processes. Higher remaining volume - stronger level. This way you can take 2 levels and obtain a binary answer which level is stronger. Now, you can compare the current level (the last level that was positioned) and the previous level positioned in the opposite direction. While being in "everything else" situation, in general, that'll mean comparing a support below and resistance above. Prices tend t go where it's easier. Yet another thing you can do is to compare waves as explained in "Wave exhaustion", but this time you'll be comparing current wave and the previous wave in the opposite direction. While being in "everything else" situation, in general, that'll mean comparing the current wave with the previous wave, and that wave will have the opposite direction. Comparing these 2 waves, you'll now in which way the order flow is stronger. On the chart, you can see a red arrow, a bar that produced 2 short events in a row: positioning of 3896 as resistance and clearing the support at 3890. Btw, another thing you can do is comparing levels in the same direction while being in a trend. When the're such sequence that levels in the same direction become weaker and weaker, usually it means that the overall trend is loosing motive strength. That's the info you can gain being on a given resolution, without having any other data.
CME_MINI:ES1!Education
by gorx1
Flawed concepts: the way they sell volume & market profilesImagine daily profiles put on each day on the chart, and let the words in purple provoke some fruitful doubts in your mind. The presented and advertised way of using volume & market profiles is essentially a way of approximating the real levels. This way is very bad. 1) The most fundamental and very obvious flaw is that it disregards the sequence of events. You can take a chart, reshuffle bars in order, or lol, just invert it horizontally. and you'll end up with different charts that have the same profile. All good bro? It's time series lol, sequence does matter. That's why you can't use profiles and non-weighted stats unless you have a very specific goal; 2) 70% rule, normal distributions & standard deviations have nothing to do with aggregated tick data. As a process, it can all can be modeled as a morphing distribution, a constant fight between normal and uniform distributions, the double auction dynamic distribution. But yeah, ofc course you can't read it in a book, gotta think for yourself a lil aye? In normal distribution 70% make sense, in the uniform one it makes sense to consider 100% (the whole distribution) as the area of interest. So overall it's somewhere in between 70 and 100. Also, confirmed with my R&D, bots give the best performance when a price channel includes 80-90% of data (mostly 80), best metrics converge around this number; The real way to use profiles is when you consciously need to disregard an order of events within a certain period and have some kind of summary of it. It's applicable when a certain period has some distinguishable significance: when levels are formed, positioned and cleared. There, you are not really interested in order of things within these events, rather in summaries of these events, there you're doing the right thing. Otherwise, POCs of 'every' period doesn't have equal significance. Summarizing volumes within a week/day/months etc, making a profile & taking 70% so you gonna get VAHs and VALs of it won't magically calculate you the real levels, only approximate em, but 4 real there are better and less computationally intensive ways of doing it, just get a box plot with 10th and 90th percentiles. This video might be really mind opening for you, I really respect it & its creator. If you wanna know how to find levels 4 real, check the linked ideas & use it with pleasure.
NYMEX:CL1!Education
by gorx1
Microstructural phenomenons: pre-testOn the chart, Oct '94 is a pre-test of 92.26 I'm not sure it's a good example here, but it'll suffice to explain this easy concept. Again, it's not the system's behavior principle, the reason of this microstructural phenomenon is all of us. Forgot to mention before... There's no such thing as, "A new wave started after "almost" hitting a level". NO. In 100% cases, a level should always be touched. because cheap/expansive is always 1 tick past the level, the main responsive activity will be concentrated after the level, never before. However, some of us sometimes gets a lil heavy handed in scaling in/scaling out of the previously acquired position. That's why prices start to react (sometimes quite strong) in front of the level. The main things to learn from here: 1) Pre-tests are not the systemic events, if you're responding at a level / a lil deeper past the level, nothing had changed for you at this points; 2) If you started to scale in before the level and got caught in a pre-test, just simply close your position with whatever revenue this pre-test offers a lil bit later and start scaling in again like nothing happened; Caution: pre-tests are also a part of the recorded market activity as everything else, during which the things may change or may not change. Pre-tests should be taken out of the context and be processed as independent entities.
GEducation
by gorx1
Microstructural phenomenons: option strikesThere's no such thing as round levels , instead: 1) You open the option chain of given vehicle; 2) You notice the step between the strikes that have significantly higher volume/OI than the other ones; 3) for example on ES dem would be xx50.00 and xx00.00; Without further analytics of the option chain, the very general rule is that these levels usually stop & repel the sharp jumps in prices, and allow the average activity to pass through em with a little stuck around em. Again the reason is microstructural, some of are hedging current & anticipated option positions on good prices. Usually market allows to do it right after economic releases. About the example, if you have any platform that offers a liquidity heatmap, try to find that reversal on ES & correlated assets, that moment in time that I market with a circle, you might be surprised.
CME_MINI:ES1!Education
by gorx1
Microstructural phenomenons: re-positioning 4 real, levels can't be re-positioned, but there's a lil detail. As explained in "Real levels: positioning and clearing", positioned levels can't switch direction, ie once a level was positioned as support it can't become a resistance, once a level was positioned as resistance it can't become a support. A positioned level can only be cleared with time, price or volume. However, there are things that do exist and not based on the ways of the system behavior, but rather on some lil details how the sub-systems and the super-system work. Aye aye, easy, a level can switch directing for a very specific and short period of time, but not due to the principles of how things work, rather by a microstructural reasons. The reason is all of us & common sense. When we scale in near a positioned level, but shortly after it becomes obvious with evidence that a level was consumed/cleared (ie there's no more level anymore), in most occasions there's no reason to take a loss right away, it makes sense to try scaling out at around break-even. 1879 was positioned as support in the end of march 2022, the same time 1788 was discovered as a back level of 1879. Point 1: we enter @ ~ the level; Point 2: the level gets definitely proved as a cleared one; Point 3: we leave at break-even, concentrating the liquidity around 1879 (~ when we've entered); Point 4: we see the result, a pop. If we would've dropped much deeper than 1788 (technically said, if we would've contacted another deeper level), that phenomenon would've never occurred (there would've been no1 to scale out at breakeven).
COMEX:GC1!Education
by gorx1
🔥✅HOW TO GET 70% WIN RATE USING VOLUME PROFILE🔥 Hi friends! Today we will talk about a very important trading tool that can give you 70% win rate if you will know how to use it as a pro trader. This tool is a volume profile. 📊 WHAT IS THE VOLUME PROFILE? The volume profile is a real traded volume. Unlike the usual vertical volumes that show the amount of volume traded over a certain amount of time, the horizontal volume shows the volume traded over a certain price range. The volume profile has 2 components:
 🔥 value area (yellow areas), which is the biggest resistance/support for the price. There can be several value areas, but the largest value areas called HVN or High Volume Nodes. 🔥 liquidity gap (white area) is the area where the least volume is traded. Usually, the price "cuts" through these areas very quickly. 📊 HOW TO USE THE VOLUME PROFILE? I want to show you how it works. If we want to understand the next price movement, we should identify the biggest value areas. So you see the most significant liquidity (value) areas and wait when the price tests it: 1. if the price breaks the value area and tests it as support , you can enter a trade because bulls are strong and the price should go higher. 🚩 The clear trade example on how to use HVN (value area) as support (+20% of clear move). 2. if the price test it as resistance , this means that bears are stronger and bulls haven`t enough power to push the price higher. 🚩 The clear trade example on how to use HVN (value area) as resistance (+26% of clear move). So the value areas or HVN are a stop on the way of price movement in one direction or another. The better you determine where the price will go after testing this HVN (value area), the more profitable you will be. 🚩 If you use this approach on lower timeframes, you can get more trades. This is ideal if you are an intraday or swing trader. Try using horizontal volumes yourself, and in the following ideas, I will tell you how I and other advanced traders use them. ✅ So this approach has 50-70% win rate, but if you want to increase it, you need to use additional filters. Personally, I use the DOM and Footprint to identify the whales' orders and buy crypto with the big guys. These indicators can easily add 25-35% to your win rate. I make a lot of video lessons and articles about them, so enjoy and make money. 💻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
9
Everything you need to know about order block 5 RULES | TUTORIALToday we're going to talk about orderblocks. Very simply, an orderblock is the support and resistance of big players. It is stronger and more important than what you draw on a chart expecting a price reaction by classical technical analysis. This works absolutely everywhere in cryptocurrency, forex, and the stock market. I have deduced for myself 5 rules of confirmation, and now we will go over each of them. Let's start with schemes and end with an example on a chart. Orderblock is a candlestick that shows purchases or sales of large capital. When a bullish orderblock is formed, an accumulation or reaccumulation takes place in order to further markup the asset. When a bearish orderblock is formed, a short position is accumulated or reaccumulated. With the purpose of further asset markdown. The first rule is liquidity. We have a zone from which the price gets a reaction and goes in the opposite direction. This forms a support zone for those who trade classic technical analysis. Traders place their orders in this zone, which is what the big capital hunts for. Accordingly, this level is pierced by the flow of orders, which activates these stops. This is how liquidity is removed from the area. The last bearish full-body candle will be our orderblock. It is important that it updates past lows. An analogy would be the wicks of candle, which removes liquidity from past lows. The wick of a candle in this case is an orderblock on a lower TF. The second rule is confirmation After withdrawal of liquidity we expect confirmation of this orderblock - that is absorption and movement in the opposite direction. The confirmation should be impulsive. That is, we should not see how the price is stuck in this confirmation. It concerns the absorption (updating) of the order block. It is possible inside the candle (orderblock). But personally, I try to take the "book variant". Local consolidations can indicate the weakness of the movement. It doesn't mean that the orderblock will not work out in the end, but the probability decreases. The third rule is structure breaking (bos) One of the key points is the breakdown of structure that this orderblock provides. This is how we can understand the mood of the market and the intentions of big capital. In this example, we can highlight the main structure with the yellow line. It is after updating a significant structural element that we can be almost sure of the truth of our orderblock. If we don't see a break in structure, then this movement may just be a correction within a downtrend. So keep an eye on this one. The fourth rule is the law of force (momentum) After confirming our orderblock, we can see a prolonged correction in the OTE (make a Fibo). That is, we should see an impulse and after it a slow sluggish movement downwards, which will also form liquidity behind each local high. This is not a necessary factor, but if it is present, the probability of a trend reversal will increase many times over. The fifth rule - the volume and spread of candles The candlesticks should be full-bodied with increased volumes. It will be important to monitor the "distance" that the price has done. All these factors will also indicate the veracity of the movement. This recommendation concerns more about swing trading, moments when the price is in a trend for a long time without a serious correction and test of the formed order block. Examples on the chart On the daily TF I marked a Sell to Buy move. I marked it this way because there were no warrant blocks to satisfy me on the higher timeframe. This area will act as a zone of interest. The structure on the Hourly TF looks like this. Consequently, we expect a confirmation of our orderblock through a break of the structure. The price entered the sell to buy zone and tested the order block, which was formed from the wick of the candle. We saw an impulse exit and watch the price go up sluggishly, forming liquidity behind each low. Therefore, we expect an orderblock test. I recommend backtesting on chart history to better understand how order block works. Thank you for your attention, I hope it was useful
Education
by Patronofbargain
5
Retail vs. Smart Money - Truth vs. Manipulation tutorial - *SMT* SMT= Smart Money Theory. Look at the related idea for a previous tutorial on this. This will be a continuation of that tutorial, how we're taught to trade is manipulation tactics by the institutions, and how to realize whats actually happening. When I first started, I started to learn how to trade under a an MLM company called iMarkets Live. Some instructors were good and were starting to catch on to what was happening to price action. Others just marked levels,. or tried to use way too many jndicators to find a trade. I ended up losing a lot of money that year because there was no cohesion. I find myself asking "why?" a lot. And if this "Trade the trend is supposed to work so well, why was I getting screwed so bad everytime I went to trade off that trend line. Until I fdinally found the one person who dug deep into the charts and found the truth and I've never seen any other trade get more accurate while trading live. 1. Price is manipulated on every chart. That is their commodity to protect and they'll go down in flames protecting their commodity. Whether that commodity is currency or stocks, there's someone or groups that own enough to control the chart. And that algorithm re-starts everydsay at midnight NY Time. Just before the London session starts 2. The charts above represent what a smart Money Technical Analyst would create for his chart, the second is the retail theory, how your "Taught" to think what tedhnical analysis is supposed to be. Fore example, you would normally out a trendline going down atop the downtrend, and when the price breaks that down trend then you'll told wait for the "Retest" of the price to hit that trend line. But sometimes it doesn't and you've missed your opportunity at a breakaway right? No, you just followed the wrong path on how to read price action. And could've caught that breakaway knowingt that it's not "retesting" the top trendline, instead it's finding the last price that the institutions sold off hard to try and make the retail traders sell as well. Evidently they were successful because the institution then come in and buy it up and a huge discount. And they buy up so much at the start of the run, it breaks the structures previous swing high In fact they probabloy are still holding a short position near that swing high so aftyer it breaks the high and closes above it, it retraces slightly back to the price area of the the previous high. Why? So they can then breakeven on the trade of holding that short while also capitalizing on the long they are taking because of how much of a discount they were able to buy up. Lets take the current chart for example. When you see the price formation of a low / high / lower low, The last bullish candle in the high formation is now Resistance that will turn Support. I have the Low / High / Lower Low Color Coordinated with it's Breaker Blocks Border or just "Breaker." As you can see it, each time it breaks the previous structures high (Where I write Break of structure with a line at the top of previous DAILY body that was broke and closed abnove, thje price then slighjtly retreats, back into that High candle's price range, doesn't close below it and then makes another large move to the upside. Its retreating down to a place where they could still be hold a short from the previous quarter (yes, you read that right, they have deep pockets, they can be in the red forever and ity weon't matter, they;'ll manipulate it until they get what's theirs, this is why Larry Williams has 90 day lookbacks in his analysis) Here's the scary part. Now that you have read that and it seems so obvious and your going "Why was I taught to think about it like this?" (See Next Chart) I was taught to think of analysis this way, I'm sure you have at one point. When the trendline breaks then we should see a retest and more bullish trend / channel. However, after it breaks the trendline, it didn't retest, neither is it really following the "Channel" it created. It's inside the channel but Following the trend as you would like to see, correct? even if we look a little closer on the 4 hour it looks further off Why is it not doing exactly as we were taught it should? Because we were taught wrong. Price doesn't know if it's following a channel, it doersn't know if it's creating a Triangle, it doesn't know if it's making a flag. What does it remember? Price levels. Therefore, the way we were taught was wrong and the correct way to look at support and resistance is actually an area within a price range. Why? As mentioned before, it's the institutions ,manipulating the charts to retreat back to an are to where it may have been holding a short and is now looking to break even while cranking up the long earnings. This is all by design. Now look at the chart again with how I just explained it, look for the break of structure, check for the close above the previous swing high close, then see where the price falls to, check to see if it is within a high of a previous swing high candle. If it breaks lower and closes lower, then we have 1 of 2 things 1) Price could have run into a Bearish Breaker (Where you have a High / Low / Higher High and the Low of that formation is a breaker that reject the price and we could see the price start to retrace lower. or 2) Also Look to see if the Break of structure that was broken has a string of balanced bullish candles to form one large Breaker. If so, the price may look like it is lower than what it should, but still within the breraker. i.e. CURRENT PRICE (see chart) We have a large breaker if you consider the two balanced bullish candles on the far left. If the are balanced, they act as one candle (Meaning their wicks touch, there's no fair value gap) See Chart - So I see this as still being within the Bullish vain, and we'll have to see if it's going to keep reaching for the break of structure. Why is it going tio the break of Structure? That is where the Liquidity is sitting by the retail user and the institutions want to take that liquidity for their own pockets. Howevever, We'll Save Liquidity for Next "Smart Money Knowledge Tutorial" If you have any questions please shoot them below. I'll do my best to answer. If it doesn't make sense to you and you see a flaw in my analysis, a flaw in my reasoning as to why it would be manipulated, please let me know. Personally, I like having an answer as to why price does what it does, which is why I am behind the Smart Money theory of Manipulation. It makes way more sense than the previous explanation of "It just breaks trend and will continue in that direction." ..... where I feel "This is the area price was before on a short and the institutions need to break even after blowing past it making profit up to that point" I hope I was able to break this "Smart Money" theory down a bit further and was able to help make sense of thewe things.l This was inspired by a meme I had seen on LinkedIn of the price running up pasty the break of structure and there's a trendline on top of the rear down slope and the price retests and starts moving up. The meme was based off this with a person almost in tears of joy. My point? Don't see the price action as a result above. Understand it as this I went to write my explanation that was a different interpretation and by the time I finished I couldn't find the Meme again. So I felt it was my calling to continue writing a major Smart Money Analysis points that many people need to see and hear. If you enjoy these explainations of Smart Money, please let me know and I'll continue on a series of these with a point behind each one. Thank you! - Bodies X Wix OANDA:GBPUSD FX:GBPUSD CAPITALCOM:GBPUSD
Education
by BodiesXWix
7
Imaginary levels: fair price aka valueIntro So called "value" or fair price is like limits in math, can be infinitely approached but never reached. We can model it, anticipate it, imagine it , but it doesn't make it real. In double/dual auctions fair price is an idea. We can surely say that some prices are too cheap and too expensive, these are real levels that can proved with evidence. The only thing we can surely say about value is that it's somewhere in middle between these 2, everything else ain't better than just making projections or extrapolations. Neither time nor volume profile won't magically calculate you a fair price buy finding mode of the distribution, it's not better (and probably worse) than just taking an average. None can prove a price to be fair for both buyers and sellers. It cannot even consistently exist due to the nature of double/dual auction. We have bid & asks, not just bids. A simple illustration is GE futures, that can trade at 2 neighboring ticks for ages, in order for a fair price to even appear for a second, bid should move one tick down or ask should move one tick up, so a free space will be created, only at this point a fair price starts to exist. But guess what? You can't make a trade at this price while it's fair, because in in order for a trade to happen there some1 should place a bid or ask at this free space, at this point the fair price disappears. You're automatically quoting CL futures at 19:00 Chicago time, BBO is 89.56-89.57. An imaginary fair price of 89.565 can't neither exist nor be traded due to tick size of 0.01. There's a buy action and a sell action, there's no action in the middle. You can place either bid or ask, the're no "in the middle". We can go for ages logically proving that fair price is always imaginary, but what we know 2 things: it's in the middle between cheap & expensive, and it appears when there's widening of prices. The same principle applies to all the resolutions due to the fact that recorded trading activity is quasi-fractal (quasi because fractals go infinitely in both directions, it's not our case exactly). Howto After an exhaustion/overexertion a wave should stop and produce another wave in the opposite direction, whatever the size. Sometimes due to other factors it does not happen, and an already overextended/exhausted wave continues to go much further. This wave can be called an overridden wave because this kind of event happens due to an exogenous (not in the data analyzed) event. This event "overrides" the exhausted wave and fuels it to continue. In every overridden wave, its middle aka fair price aka value is an imaginary level that can be used. A wave that started at 337.89 became overextended/exhausted in both price and time when it reached ~450. After hitting 450 it didn't stop but continued and went really far. It has finally stopped in year 2000 and a sell wave emerged. Knowing that we witness an overridden wave, we start to consider value as a temporary legit level. Imaginary, but still a level, ain't no options aye? And again, we use imaginary levels when there's nothing else, but a decision has to be made. Statistically, overridden waves are the structural breaks. A serious change. Fair price is supposed to become new cheap or new expensive.
SP:SPXEducation
by gorx1
Imaginary levels: wave exhaustion priceCan't explain this 4 real until I explain how to properly locate levels & distinguish buying & selling waves. I KNOW I'M MESSING UP WITH ORDER OF INFO SUPPLY, SORRY. Still... Pretty soon you'll understand that 3393.52 and 2191.86 are the levels, and there's one buying wave between em. Point 1 is the wave start. Point 2 is the wave end. When 3393.52 get cleared, another buying wave starts originating @ 3393.52 & point 2. All the details & questions will be explained & answered later. Now just focus on the wave exhaustion prices. Every wave becomes exhausted in terms of price when it's range exceeds the range of the previous wave in the same direction. Not a lil bit before, exclusively past the threshold value. So after getting past this level and considering the other conditions that would be explained later the current wave becomes prone to end and consequent start of another wave in the opposite direction. Just as with partition levels (that are imaginary as well), these levels don't make much use any more when the real price activity start to emerge there. Imaginary levels are used when there's no alternative, but a decision has to be made.
SP:SPXEducation
by gorx1
Imaginary levels: partitionsImaginary levels are used when there’s no alternative, but a decision has to be made. We need something to "snap" to. No, these are not the binary levels like 512, 8912 or 65536 that I'm sure a lot of funny people are hiding or present as super secret, lol no. When there's truly nothing else and just the empty medium, we take partition function, give her all the integers, and get the levels around which the long-term order flow might change direction. Dem are already calculated, called Sequence A000041 , more info there . That's the natural way how to find level in the emptiness. After having the real trading activity at these levels we can forget dem partition levels, ain't no reason to use em anymore. Since the start of 20th century, mainstream text book science seem to forget about the concept of aether (tldr the emptiness is an object itself, and it's not uniform, 'everything' exists in a medium including waves & light, totally obvious if you use your own head for thinking). As usually, the lovely market, as a sub-universe in our universe, is the same, teaching the real stuff & proving fakies wrong.
SP:SPXEducation
by gorx1
NQ - a textbook short setup: breakdown-failed-test-plungeThis is a textbook short setup, break under Monthly Support followed by a bounce back to the broken-support-turned-resistance. As soon as bulls failed to reclaim the broken support that became a trigger that attracted new shorts. The Rule of thumb is: ⚠️ when bears manage to break a support and then bulls attempted to reclaim it but fail, bears get reasons to believe that bulls got exhausted and as a result new bears open fresh short positions turning the price down and starting another leg down. You can get that free Month Opening Range indicator here:
CME_MINI:NQ1!Education
by CastAwayTrader
📊How to use HORIZONTAL VOLUMES? Tutorial with examples!Horizontal Volume Indicator or Volume Profile is a simple indicator that helps to identify: value areas (support or resistance zones) and liquidity gaps. In this idea I will explain how to use the indicator and mark these areas to make trades and why it works. Let's start at the beginning. 💹What are value areas (support and resistance zones)? 🔶The value zone is the price range at which the most trades are made. On the chart we can mark the value zones: 33600-41000, 46000-49500, 54600-58200. I also marked how these zones were support or resistance to price. The value zone becomes a support for price if the price, when it is tested, does not continue its downward movement. A value zone becomes a resistance if price does not continue to rise above that zone. The zone simply doesn't let the price go higher because there aren't enough buyers. 🔶Liquidity gaps are called that way because no trades were made in that zone and there is no liquidity for traders (buyers or sellers), and price, as we know, goes from liquidity to liquidity (from one zone to another). On the chart I have marked for you the liquidity gaps and we can see that the price can' t stay in these zones for a long time. ✅Why do horizontal volumes work? Price reacts to these zones for a simple reason. Many traders pay attention to these areas and put their limit orders to buy or sell or when the area is tested, so the price moves up or down. If there are more sellers than buyers, the price will go lower and lower ; if there are more buyers, the price goes higher and higher. 🚩How can I add this indicator to my chart? 3 steps to add the indicator to your chart: 1. open "prediction and measurement tools" at the left part of chart 2. choose the "Fixed Range Volume Profile" 3. choose the price range from some date till another date. I chose from Dec 10, 2021 till May 6, 2022. So now you can see and mark all areas on your chart. 🏁This indicator helps to identify areas and can suggest stop points or price reversal, but it should be used with different methods. If the market is in a strong rising trend (UPTREND), it is unlikely to be stopped by a local zone of value, but a global zone may stop it. Also, the support zones can be good entry point. Be more tricky than the market and use different tools. You can use the indicator on different timeframes for scalping or swing trading and with different ALTCOINS. Also, pay attention to the volume indicator, trend lines and key levels that I show in my ideas. 💻Please write in the comments if you still have questions about Horizontal volumes! I`ll try to explain you additional tips 🎇 Press the "like"👍 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
54
🔥🚩POINT OF CONTROL: THE MOST USEFUL TOOL FOR TREND TRADER🔥 Hi friends! Point of control is a part of volume profile indicator and very useful tool to identify upcoming BTC or any other asset move. I will explain you how to use this tool in your trading and make a good profit in this idea. 💹 Horizontal Volume Indicator or Volume Profile is a simple indicator that helps to identify: value areas (support or resistance zones), points of control and liquidity gaps. 📊 HOW TO USE POINT OF CONTROL Point of control (red line on the chart) is the place of the largest accumulation of liquidity. We can say that this is the place of "the biggest battle between bulls and bears": 🔥the point of control becomes a resistance in case of "bears' victory" and crypto start to fall 🔥the point of control becomes a support in case of "bulls' victory and crypto start to grow 🚩 When one of the sides wins the "battle", this is the best time to enter the trade in short or long. ✅ No matter how complicated this tool looks, it is very easy to use: 1. extend the volume profile indicator from the lows to the highs. The indicator automatically shows the largest accumulation of liquidity showing POC (red line). 2. wait until the price tests the POC as support or resistance . From time to time the price can consolidate directly on the POC, which indicates the "battle" of long and short traders. Pay attention to the chart. I have selected for you 4 cases of using POC on the volume profile: 1. Bitcoin just touched the POC at $39,700 and bounced up 72%. 2. the price tested the POC as resistance at $61,100 after which the price fell by 45% from the absolute highs. 3. Bitcoin consolidated around the POC at $39,000 for some time. The price fell by 31%. 4. POC is at the price of $19,150 per Bitcoin. Now you have to expect the price to return to this level and carefully watch the price reaction on POC. 🔥If the POC is tested as resistance , then it is very likely that we will see the level of $13,000-14,000 for BTC. 🔥If the POC is tested successfully as support , then the price will be able to make higher highs and start a bullish trend for Bitcoin. I talked about this scenario in previous ideas. 🚩 HOW TO ADD VOLUME PROFILE INDICATOR WITH POC TO YOUR CHART? 3 steps to add the indicator to your chart: 1. open "prediction and measurement tools" at the left part of chart 2. choose the "Fixed Range Volume Profile" 3. choose the price range from some date till another date. So now you can see all important value areas and point of control. ✅ Point of control help you to identify the power of bulls or bears on different timeframes and make the right trading decision in the most of cases. Personally, I use this tool effectively for swing trading and scalping as well. Traders, do use this indicator and such tools as POC in your trading? What is your favorite idicator for trading? Let me know 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
Harmonic Pattern with Multiple Confluence for Point X and DThis is an example of regression channel with harmonic pattern. By using Simple OHLC Custom Range Interactive, we able make confluence point (blue) to get Point X of Bullish Butterfly. There are many confluence points (orange flag and teal table), which shows Point D of Butterfly starting to complete. For Point D, best to monitor price changes using RSI or other similar RSI (Cyclic RSI, etc). Indicator used : 1. Regression Channel Alternative MTF 2. HH-LL ZZ 3. XABCD Harmonic Pattern Custom Range Interactive 4. Simple OHLC Custom Range Interactive 5. Cyclic RSI High Low With Noise Filter
MYX:FKLI1!Education
by RozaniGhani-RG
The Last Kiss trade. Eurusd The first step of the last-kiss trade is to identify the consolidation zone. One way to visualize a consolidation zone is to draw a box on the chart. This box will contain the choppy movements of the directionless market. This box should encompass the market movement during the choppy, drifting-market phase. It should be obvious that the market is stuck between both of the zones. Typically, there will be several touches on either side of the zones. The last-kiss trade is based on the retouch principle. The market will often come back to a significant zone once the market has expanded beyond the zone, and the last-kiss trade is designed to take advantage of this typical market behavior. The reason for waiting for the market to come back to the consolidation box is to confirm that the market will, indeed, respect the boundaries that were formed by the consolidation box. In this way, the trader will jump on the trade only when the market comes back to kiss a consolidation box. Once the market returns to the edge of the consolidation box, it must print a strong candle in the direction of the breakout. Therefore, if the breakout is a bullish breakout (up), then the retouch candlestick must be a strong bullish candlestick. A buy stop is placed above the high of this bullish candlestick.
Education
by EMkioko
Learn How to Trade Descending Triangle Pattern Descending triangle formation is a classic reversal pattern. It signifies the weakness of buyers in a bullish trend and bearish accumulation. ⭐️The pattern has a very peculiar price action structure: Trading in a bullish trend the price sets a higher high and retraces setting a higher low. Then the market starts growing again but does not manage to set a new high, setting a lower high instead. Then the price drops again perfectly respecting the level of the last higher low setting an equal low. 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 predictor 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. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
5
Drawing Volume Based Trendlines Support and ResistanceFor this to work you're going to need your bull bear power void oscillator. I have mine set on its default settings but you can also set it up with the following. Click the image below for that indicator for free The Setup the length is 50 the moving average is 20 the macd settings are 12 / 26 / 9 With this I have a 50 period EMA on my chart. Drawing Support and Resistance Levels Based on Volume When drawing support and resistance levels you should always do them on a 1 hour time frame or higher. You can do them on a 30 minute time frame but some of them will be less relevant. Since most people and most institutions do them a 1 hour time frame and hire you might as well be doing the same. Support and resistance levels are found in the non-tradable areas of the oscillator. in other words it's the area of the oscillator where it has a black background. As an example if you have a pink volume bar coming down first followed by a red volume bar afterwards this would mean resistance. But both of these bars must clear the void If you have a light green bar first outside with the tradable area followed by a dark green bar this means support and both bars must be outside the void. As an example if you have more than one light colored bar in the tradable area followed by a darker colored bar volume then you draw your support or resistance level at the 1st alternating color bars. Find out where your current price level is and then draw about 2 or 3 support and resistance levels above current price and two or three below current price. You don't really want more than that. Drawing Trendlines Based on Volume To draw trend lines you need to have a background that goes from one color to Black and then to the alternate color for example green to Black to red or red to Black to Green. if you get the same color twice then what you have is a continuation of your trend. In a trend that goes from green to Black to Red you're looking for the highest volume in the non-tradable area and then drawing of line from there to the very first tradable volume in the red area. Once you do this you can't move to a smaller time frame and use that trend line as a Target when moving to it or an exit point.
Education
by CoffeeshopCrypto
10
Depth of corrective waves. Elliott Wave.Elliott Wave Guidelines: Depth of Corrective Waves Understanding Elliott Waves is much more then the basic rules and 3s and 5s. A largely underused aspect of Elliott Waves is the Elliott Wave Guidelines. These go beyond the guidelines for each specific pattern and are meant to assist in determining the most probabilistic wave pattern. This is just the primary guideline of this larger Elliott Wave guideline. If you have found this inspiring/helpful, please consider a boost and follow! Also, check out the links in my signature to get to know me better! Cheers!
Education
by CryptoKnee
Learn How to Apply Multiple Time Frame Analysis Hey traders, In this article, we will discuss Multiple Time Frame Analysis. I will teach you how to apply different time frames and will share with you some useful tips. Firstly, let's briefly define the classification of time frames that we will discuss: There are 3 main categories of time frames: 1️⃣Higher time frames 2️⃣Trading time frames 3️⃣Lower time frames 1️⃣Higher 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. 2️⃣Trading 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. 3️⃣Lower 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. 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. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
73