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Support and Resistance

Congestion Action vs Congestion Exit – Mastering the TransitionWhen markets go quiet and churn sideways, it’s easy to get lost in the noise. But inside that congestion lies opportunity — if you understand the difference between "Congestion Action" and "Congestion Exit." Here’s how to apply Drummond Geometry to trade these phases with precision: 🔹 Congestion Action Congestion action is when the market is not ready to trend — it's swinging back and forth within a defined range, between a strong block level and a well-established dotted line. Think of it as a "resting zone" before the next directional move. 📏 Original Confines: Highest high and lowest low after a congestion entrance as shown on the chart 🚧 Expanded Confines: Price temporarily breaks out of the range but doesn’t establish a trend (3 closes on the came side of the PLdot (blue line)). 🧲 This is where scalpers and range traders thrive. Look for setups near envelope confines and use nearby energy fields. ✅ Trade Plan: Play the range — buy support, sell resistance — until proven otherwise. 🔸 Congestion Exit This is when the market transitions from ranging to trending — a trend run begins from within the congestion zone. 🚀 First bar of a new trend closes outside the congestion confines (either the block level (highest high on the chart) or the dotted line (the low on the chart)). 📊 The next bar must confirm with a trend run close — if not, it’s a failed breakout. You can see on the chart that price tried to trend lower but the trend was not confirmed! ⚡ Patterns to watch: Energy pushing in the direction of the exit (PL Dot push, c-wave continuation). 6-1 lines against the breakout direction disappear.(Not visible in this version) Resistance/support against the exit breaks. ✅ Trade Plan: Enter on breakout confirmation, not just the breakout bar. Measure energy and watch the follow-through. 🧭 Tip: Don't get faked out. If price re-enters congestion after a breakout, re-draw the boundaries — the old congestion is no longer valid. 🔥 Bottom Line: Congestion Action is where the market breathes. Congestion Exit is where it moves. Mastering the handoff between the two gives you a decisive edge.
CME_MINI:ES1!Education
by JordanMT
Mastering supply and demand zones - how to use it in trading?Supply and demand zones are key concepts in technical analysis used by traders to identify potential price reversal areas on a chart. They are based on the idea that prices move due to an imbalance between buyers (demand) and sellers (supply). ------------------------- What will be discussed? - What are supply and demand zones? - How to detect supply and demand zones? - Examples from supply and demand zones? - How to trade using supply and demand zones? ------------------------- What are supply and demand zones? Supply and demand zones are areas on a price chart where the forces of buying and selling are strongly concentrated, causing significant movements in price. In simple terms, a supply zone is an area where selling pressure exceeds buying pressure, often leading to a drop in price. It usually forms when price moves upward into a region where sellers begin to outnumber buyers, pushing the price back down. On the other hand, a demand zone is a region where buying pressure exceeds selling pressure, typically resulting in a rise in price. This occurs when price moves downward into a region where buyers see value and begin to outnumber sellers, causing the price to increase again. These zones reflect areas of imbalance in the market. In a supply zone, sellers are more eager to sell than buyers are to buy, often due to overbought conditions, news, or fundamental changes. In a demand zone, buyers are more eager to buy than sellers are to sell, often because the price has become attractive or undervalued. Traders look for these zones because they provide clues about where price may reverse or stall, offering potential entries or exits for trades. ------------------------- How to detect supply and demand zones? Identifying supply and demand zones involves analyzing price action on a chart, typically using candlestick patterns. A common way to detect a supply zone is to look for a sharp upward move followed by a sudden reversal or strong drop in price. The area where the price stalled before falling sharply is likely to be a supply zone. This zone includes the highest candle body or wick before the drop, and a few candles before it that mark where the selling pressure began. To identify a demand zone, you would look for a sharp drop in price followed by a strong rally upward. The area where the price paused before rising significantly can be considered a demand zone. Like with supply zones, the demand zone includes the lowest candle before the price reversed and a few candles leading up to it. These zones are not exact price levels but rather ranges. Price does not have to touch an exact line to react; it often moves within the general area. For more accuracy, traders often refine their zones by identifying them on higher time frames such as the 4-hour or daily chart, then adjusting them slightly on lower time frames like the 1-hour or 15-minute chart. ------------------------- Examples from supply and demand zones: ------------------------- How to trade using supply and demand zones? Trading supply and demand zones involves anticipating how price is likely to behave when it returns to one of these key areas. A common method is to wait for price to enter a zone and then watch for confirmation that it is going to reverse. For example, if price rises into a supply zone, you might look for signs like a bearish candlestick pattern, a drop in volume, or a rejection wick to signal that sellers are stepping in again. This would be an opportunity to enter a short trade with the expectation that price will fall. Conversely, if price falls into a demand zone, you would wait for bullish signals—such as a strong bullish candle, a double bottom pattern, or clear rejection of lower prices—to confirm that buyers are returning. This would be a potential setup for a long trade, expecting the price to move up from the zone. Traders often place stop losses just beyond the zone to limit risk in case the level fails. For a supply zone, the stop loss would go just above the zone, while for a demand zone, it would go just below. Targets can be set at recent support or resistance levels, or by using risk-reward ratios like 1:2 or 1:3 depending on the trader’s strategy. Patience and discipline are important when trading these zones. Not every zone will lead to a reversal, and false breakouts can occur. Therefore, combining supply and demand analysis with other tools such as trendlines, moving averages, or indicators can improve the chances of a successful trade. In summary, supply and demand zones help traders understand where large buying or selling forces are likely to influence price. By learning to identify these zones and waiting for confirmation signals, traders can enter high-probability trades with clear risk and reward levels. ------------------------- Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Thanks for your support. If you enjoyed this analysis, make sure to follow me so you don't miss the next one. And if you found it helpful, feel free to drop a like and leave a comment, I’d love to hear your thoughts!
TRADENATION:BTCUSDEducation
by Youriverse
81
How "Whales" Manipulate Markets: A Trader's Guide to SucceedEvery chart tells a story of institutional footprints. For most, it's chaotic noise. But when you understand the market's true engine — the constant need of "Smart Money" to capture vast amounts of liquidity to fill their orders — that noise turns into a clear map. This guide will teach you to read that map. We will break down the main types of manipulation and show you how to use them to identify high-probability zones for potential entries. So, why exactly is liquidity the fuel for these "Smart Money" players, which for simplicity, we'll call "Whales"? It's because a Whale holds the largest volume of funds in a specific asset and, unlike retail traders like us, it cannot open its huge position at any given moment simply because there aren't enough buy or sell offers on the market. To fill its orders, the Whale constantly carries out manipulations to capture additional liquidity. This isn't about deception or anything negative—it's how the market constantly forms its movements, how whales achieve their goals by moving from one liquidity pool to another, much like whales in the ocean hunt for plankton to get vital energy for long journeys from one feeding ground to another. Why will these principles of price movement through manipulation, which worked decades ago, continue to work forever? Because human nature doesn't change over time. The crowd is always driven by greed and fear, making it easy to manipulate. Therefore, manipulation is often the motive for the birth of a future move and is a key element in market mechanics. If you understand these mechanics, you will be able to see the footprints of whales on any chart and not only minimize your chances of becoming their food but also join their next move to get your share of the profit in the boundless ocean of market opportunities. Let's take a closer look at how whales carry out their manipulations and classify their types. The Whale is constantly in hedged positions. To fill its large-sum orders without impacting the price, it uses the principles of Sell to Buy (STB) and Buy to Sell (BTS) . The STB manipulation is used to accumulate long positions. To do this, the Whale opens an opposing short position, activating stop orders and liquidations of buyers, purchasing their positions at a favorable price. It also encourages other retail participants, especially breakout traders, to open short positions. Continuing to accumulate long positions, the Whale sharply moves the price up, liquidating short participants and absorbing their positions. After the price has moved up, the Whale is left with an open losing position from its short manipulation. To close it at breakeven or a small loss, the Whale needs to return the price back to the zone of its manipulation. This return is called mitigation . In the opposite case, when the Whale needs to drive an asset's price down, it uses the BTS manipulation . To fill its short positions, the Whale opens a long position, activating stop-losses and forced liquidations of sellers, and encouraging retail breakout traders to also open long positions. Continuing to accumulate short positions, the Whale aggressively moves the price down, absorbing and liquidating the positions of impatient longs. After the downward impulse is complete, the Whale is left with an open losing long position. Just as in the first case, to close it at zero or a small loss, the Whale needs to return the price to the manipulation zone, after which another markdown of the asset occurs, and the cycle can be repeated as many times as necessary. Thus, through manipulation, the Whale achieves two goals at once: It gets the most favorable price. It eliminates most of its competitors by liquidating their positions with an opposing move. Most of the time, the price movement between manipulations is unpredictable. Entering during this movement, for example, in the middle or end of an impulse or within a range, increases the chances that you will become a victim of the next manipulation and liquidity for the Whale. However, if you wait for the price to arrive at the manipulation zone, also known as a Point of Interest (POI) , and ensure that the Whale acknowledges this area (i.e., it has stopped there and is beginning a reversal), the probability of choosing the correct direction for a trade will be on your side. To help you recognize manipulation zones, let's look at their different types. 🔹 Order Block (OB) - A down candle (sometimes 2, rarely 3 candles) before an impulsive move up (in the case of a bullish OB), or an up candle (sometimes 2, rarely 3 candles) before an impulsive move down (in the case of a bearish OB). In most cases, this short, sharp move should sweep some form of significant liquidity. An additional confirmation of an Order Block is the immediate imbalance or Fair Value Gap (FVG) that follows it, because the Whale's intensive position accumulation and the associated impulse move don't allow enough time for all market participants' orders to be filled. 🔹 Demand/Supply Zones are similar in principle to Order Blocks but differ in that they have a more prolonged action, which can consist of many up or down candles, making these zones often significantly wider than OBs. Demand Zone - The last downward move before an intensive rally. Supply Zone - The last upward move before an intensive drop. Often, an Order Block can be found inside a Demand/Supply zone. 🔹 Range - Also a manipulation zone and essentially an Order Block, but unlike an OB, this manipulation can last for a very long time when the Whale lacks sufficient liquidity from a quick manipulation and accumulates its large position by collecting internal and external liquidity through the range. Ranges, just like Order Blocks and Demand/Supply zones, are points of interest for the Whale to close its losing hedged positions and continue moving towards its goals. Conditions for Applying and Validity of Manipulation Zones An important condition for applying manipulation zones is that they can only be used once . That is, if the price has come to a zone and reacted to it, upon a second arrival, that zone is no longer valid. For convenience in marking used zones, I shorten them to the point of the first touch so as not to consider them anymore, but to understand which way the order flow is directed—a very important concept that, unlike structure, shows the true direction of the Whale's movement. Order flow is manifested by the price reacting to manipulation zones from below in an uptrend and from above in a downtrend. It is also very important to understand that it makes sense to identify and use manipulation zones as one of a trade's entry conditions only from below for an uptrend and from above for a downtrend . Any counter-trend zones formed in the path of a trend are highly likely to be broken and serve as liquidity. In ranges, manipulations formed after deviations can be used for entries from both sides. Only manipulations that were formed at the beginning of an impulsive price move can be considered valid for entry. That is, they must be the manipulations that directly triggered the start of the move; in Smart Money terminology, they are often called the "origin" . Any manipulation in the middle or end of a move will most likely serve as liquidity on the way back to mitigate the origin zone. How long does a manipulation zone remain relevant? It remains relevant until a new structural element (a higher high or a lower low) is formed , especially if the price has already come close to the manipulation zone, for example, into the FVG before the zone. This most likely means the Whale has already finished its business there and closed one of its losing hedged positions at a small loss. When the trend changes, such a zone will act as liquidity, not a POI. So, a manipulation zone will not always be mitigated; often, a reversal occurs from the FVG before it. However, entering from an FVG is much less reliable than from an Order Block, Demand/Supply zone, or Range. I personally skip such entries and wait for a new manipulation zone to form and be mitigated; they happen on the market constantly. A good bonus that further strengthens the probability of a setup working out during the mitigation of manipulation zones is a liquidity sweep upon reaching them. Consider the context and supplementary conditions. Although manipulation zones are the strongest areas for price reversals, they should always be used in conjunction with other supplementary conditions and tools, for example, with Fibonacci retracement levels or liquidity sweeps. "Context" implies any other conditions that can either confirm or contradict the likely direction of price movement. For example: in which phase of correction is the price? For a long, safe entries can only be considered from the discount zone (below the 50% Fib level); for shorts, only from the premium zone (above the 50% Fib level). Is there significant, un-swept liquidity nearby, such as previous daily, weekly, or monthly highs/lows, or an untouched Asian session high/low? What upcoming news could affect the asset and hit the stop before the setup plays out? At what time of day did the price mitigate the manipulation? Taking context into account is a crucial and integral part of analysis in the search for entry points. Due to the fractal nature of market charts, manipulations can be seen on any timeframe. On weekly and daily timeframes, manipulation zones can be used for swing trading or investment purchases. 4-hour and 1-hour timeframes will show potential entries from manipulations for intraday trading or holding positions for several days. 5-minute and 1-minute timeframes will show manipulations in the form of order flow for final entry confirmation. Whatever type of analysis you use for your trading, understanding the nature of market manipulations and practicing their recognition will allow you to be one step ahead of most market participants and open your trades with an understanding of which way institutional capital is most likely to move next. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If you found this guide helpful, support it with a Boost! 🚀 Have a question or a "lightbulb moment" from this article? Share it in the comments! I read every single one. 💬 ► Follow me on TradingView for more educational content like this and to not miss my next detailed trade idea . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
OANDA:XAUUSDEducation
by TheWhaleSM
74
What is Dynamic Support and Resistance Levels & Zones in Forex Dynamic supports and resistances play a crucial role in technical analysis. Unlike classic supports and resistances, these zones change and adapt to a market price action in real time. Learn what is dynamic support and resistance in Forex, Gold trading and how to find it easily. Discover its main types and real market examples. Let's start with the basics. There are 2 major types of supports and resistances in technical analysis. The first type is called static . Such supports and resistances are fixed and don't change with time. It should be strictly horizontal key levels or the zones. Market price action and momentum beyond them do not affect these supports and resistances. In the example above, you can find static supports and resistances on Gold. The market may return to one of those levels or the zones today, tomorrow or in a month, but it will not move. In comparison to static supports and resistances, the dynamic ones shift with time. They constantly change and adjust as the time flies. One of the obvious types of dynamic supports and resistances is a trend line. Above is the example of a dynamic rising support based on trend line. As the time goes, a support shifts and becomes higher and higher. I found a great example of a dynamic resistance on Dollar Index. Depending on the moment when the price tests that, the resistance will be on different levels. The later the price tests the trend line, the lower is the resistance. When newbie traders learn dynamic supports and resistances, they usually stop on trend lines. But it is just a beginning. Really significant dynamic supports are resistances will be the zones . The areas based on static horizontal supports and resistances and trend lines. Examine a price action on GBPCHF forex pair. We have a static horizontal support area and a dynamic rising trend line. Two supports intersect, composing a contracting dynamic support zone. With time, it will become narrower, accumulating buy orders within. On NZDCAD forex pair, I underlined a contracting dynamic resistance zone that is based on an intersection of a static horizontal resistance area and a falling trend line. Selling orders will be distributed within. The 2 dynamic support and resistance zones that we discussed are narrowing , but that is not always the case. A dynamic support zone that I found on GBPNZD is expanding and broaden with time. It is based on a dynamic falling trend line and a static horizontal support. With time its boundaries will be wider and a bullish reaction may initiate from any level within that. A dynamic resistance area that I spotted on EURCAD forex pair is a great example of an expanding resistance. It is based on a static horizontal resistance and a rising trend line. We can easily recognize how it grows with time. Of course, another types of dynamic supports and resistances exist. But they are more nuanced and rare. As soon as you learn to recognize the clusters that we discussed in this article, you will be able to recognize the less obvious ones as well. Next time, when you execute a support and resistance analysis, try to find a dynamic zone. You can find it on any time frame, and forex pair and gold, and it will completely change your perspective on the market. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Education
by VasilyTrader
6
SMC Trading Basics. Change of Character - CHoCH (GOLD FOREX) In the today's post, we will discuss one of the most crucial concepts in SMC - Change of Character. Change of Character relates to market trend analysis. In order to understand its meaning properly, first, we will discuss how Smart Money traders execute trend analysis. 🔘Smart Money Traders apply price action for the identification of the direction of the market. They believe that the trend is bullish , if the price forms at least 2 bullish impulse with 2 consequent higher highs and a higher low between them. The market trend is considered to be bearish , if the market forms at least 2 bearish impulses with 2 consequent lower lows and a lower high between them. Here is how the trend analysis looks in practice. One perceives the price action as the set of impulse and retracement legs. According to the rules described above, USDCAD is trading in a bullish trend because the pair set 2 higher lows and 2 higher highs. 🔘Of course, trends do not last forever. A skill of the identification of the market reversal is a key to substantial profits in trading. Change of Character will help you quite accurately identify a bullish and bearish trend violation. 📉In a bearish trend, the main focus is the level of the last lower high. While the market is trading below or on that, the trend remains bearish . However, its bullish violation is a very important bullish signal, it is called a Change of Character, and it signifies a confirmed violation of a bearish trend. In a bearish trend, CHoCH is a very powerful bullish pattern. Take a look, how accurate CHoCH indicated the trend reversal on Gold. After a massive selloff, a bullish breakout of the level of the last lower high confirmed the initiation of a strong bullish wave. 📈In a bullish trend, the main point of interest is the level of the last higher low. While the price is trading above that or on that, the trend remains bullish. A bearish violation of the last higher low level signifies the violation of a current bullish trend. It is called a Change of Character, and it is a very accurate bearish pattern. Take a look at the example on Dollar Index below. In a bullish trend, bearish violation of the last higher low level quite accurately predicted a coming bearish reversal. Change of Character is one of the simplest , yet accurate SMC patterns that you should know. First, learn to properly execute the price action analysis and identify HH, HL, LL, LH and then CHoCH will be your main tool for the identification of the trend reversal. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
9
Learn Best Change of Character CHoCH Model in Trading with SMC Most of the SMC traders get Change of Character CHoCH WRONG! In this article, I will share with you Change of Character models that have a low accuracy and better to be avoided. I will teach you the best CHoCH model for Forex Gold trading and show you how to identify it easily. Let's start with the basic theory first and discuss what Change of Character signifies. Change of Character in Bearish Trend In a downtrend, Change of Character CHoCH is an important event that signifies a violation of a bearish trend. CHoCH is confirmed when the price breaks and closes above the level of the last lower high. Above, is a text book Change of Character model in a bearish trend. For the newbie traders, such a price action provides a strong signal to buy while it fact it is NOT . One crucial thing is missing in this model to confirm a bullish reversal. According to basic trend analysis rules, we say that the market trend is bullish if the price forms a bullish impulse, retraces and sets a Higher Low HH , forms a new bullish impulse with a new Higher High HH. Only then, we can say that the market is trading in up trend. CHoCH model above confirms a bearish trend violation BUT it does not confirm a trend change. Such a model may easily signify a deeper correction. Look what happened with GBPNZD. Though the price formed a confirmed bearish CHoCH, it was a false signal and just an extended correction. That's a perfect bullish reversal model. It combines CHoCH and conditions for a bullish trend. Such a union is extremely accurate in predicting up movements. Examine a price action on USDJPY. Not only the price formed a confirmed CHoCH but also we see a start of a new bullish trend. Change of Character in Bullish Trend In an uptrend, Change of Character CHoCH is a significant event that signifies a violation of a bullish trend. CHoCH is confirmed when the price breaks and closes below the level of the last higher low. Above is a typical model of a bearish CHoCH. For many traders, that is the signal to open short. However, it is not that accurate and one important component is missing there. According to basic price action rules, the market trend is bearish if the price forms at least 2 bearish impulses with Lower Lows LL and a pullback between them with a Lower High LH. Only when these 3 conditions are met, a bearish trend is confirmed . Perfect bearish Change of Character model should include both CHoCH and a bearish trend price action. That will confirm a violation of a bullish trend and start of a new bearish trend. EURCAD has a very strong potential to continue falling: not only we see a valid bearish Change of Character but also a start of a new bearish trend based on a price action. Next time when you identify CHoCH on forex market, make sure that you check the preceding price action. It will help you to more accurate assess reversal probabilities and make a wiser trading decision. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
U-oyela Ongahluziwe Nenkunzi.Considering the current countries in conflict - FX:USOIL is in the middle of it. This will lead in a high demand but low supply of the commodity resulting in a soaring bullish move, fundamentally. Technically, the commodity has created a LL in the current year, tapping lows last touched since 2021 and has further recovered from last years close of 71.899. FX:USOIL reaching highs of $110.00 is therefore likely. ***The best way to take advantage of this commodity or any other is to cherry pick stocks that are sensitive to it e.g. JSE:SOL is sensitive to FX:USOIL .***
FX:USOILEducation
by Dlamini_SS
How to Draw Support & Resistance In TradingViewLearn how to effectively identify, draw, and utilize support and resistance levels in TradingView with this comprehensive step-by-step tutorial. Whether you're a beginner trader or looking to refine your technical analysis skills, this video covers everything you need to know about one of the most fundamental concepts in trading. What You'll Learn: Understanding support and resistance: the foundation of technical analysis and price action trading Step-by-step instructions for drawing horizontal support and resistance lines in TradingView Creating support and resistance zones for more flexible trading approaches Practical tips for using TradingView's drawing tools effectively This tutorial may be helpful for day traders, swing traders, and investors using TradingView who want to improve their chart analysis skills. The techniques covered could help you make more informed entry and exit decisions by understanding where price might find support or encounter resistance. Visit Optimus Futures to learn more about trading futures with TradingView: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objectives.
CME_MINI:ES1!Education
by OptimusFutures
1
Reading The Room: Market Sentiment TechnicalsThe Market Sentiment Technicals indicator, created by LuxAlgo , is a powerful tool that blends multiple technical analysis methods into a single, easy-to-read sentiment gauge. It’s designed to help traders quickly assess whether the market is bullish, bearish, or neutral by synthesizing data from trend, momentum, volatility, and price action indicators. 🧠 How We Use It at Xuantify At @Xuantify , we integrate this indicator into our multi-layered strategy stack. It acts as a market context filter , helping us determine whether to engage in trend-following, mean-reversion, or stay on the sidelines. We use it across multiple timeframes to validate trade setups and avoid false signals during choppy conditions. This example uses MEXC:SOLUSDT.P , symbols like BINANCE:BTCUSDT or BINANCE:ETHUSDT are fine to use as well. ⭐ Key Features Sentiment Panel: Displays normalized sentiment scores from various indicators. Market Sentiment Meter: A synthesized score showing overall market bias. (Below image) Oscillator View: Visualizes trend strength, momentum, and potential reversals. Divergence Detection: Highlights when price action and sentiment diverge. Market Sentiment Meter: A synthesized score showing overall market bias. 💡 Benefits Compared to Other Indicators All-in-One : Combines multiple indicators into one cohesive tool. Noise Reduction : Filters out conflicting signals by averaging sentiment. Visual Clarity : Histogram and oscillator formats make interpretation intuitive. Adaptability : Works across assets and timeframes. ⚙️ Settings That Matter Smoothing Length: Adjusts how reactive the sentiment is to price changes. Indicator Weighting: Customize which indicators influence the sentiment more. Oscillator Sensitivity: Fine-tune for scalping vs. swing trading. 📊 Enhancing Signal Accuracy We pair this indicator with: Volume Profile: To confirm sentiment with institutional activity. VWAP: For intraday mean-reversion setups. Breakout Tools: To validate momentum during sentiment spikes. 🧩 Best Combinations with This Indicator LuxAlgo Premium Signals: For entry/exit confirmation. Relative Volume (RVOL): To gauge conviction behind sentiment shifts. ADX/DMI: To confirm trend strength when sentiment is extreme. ⚠️ What to Watch Out For Lag in Consolidation: Sentiment may flatten during sideways markets. Overfitting Settings: Avoid tweaking too much—stick to tested configurations. False Divergences: Always confirm with price structure or volume. 🚀 Final Thoughts The Market Sentiment Technicals indicator is a game-changer for traders who want a 360° view of market psychology . At Xuantify, it’s become a cornerstone of our decision-making process—especially in volatile conditions where clarity is key. 🔔 Follow us for more educational insights and strategy breakdowns! We break down tools like this weekly—follow @Xuantify to stay ahead of the curve.
Education
by Xuantify
How to use VWAP the right-way on TradingView 1️⃣ What Is VWAP (Volume Weighted Average Price)? VWAP stands for Volume Weighted Average Price. It's a tool that shows the average price an asset has traded at throughout the day, adjusted for volume. That means it gives more weight to prices with high trading volume. ✅ It helps traders and investors see if the current price is above or below the average price paid. ✅ It’s often used by institutional traders, such as mutual funds and pension funds, to enter and exit positions without causing major price moves. VWAP = (Sum of Price * Volume) / Total Volume 2️⃣ Why VWAP Matters I (Traders) often use VWAP as a dynamic support or resistance zone. - Price below VWAP: considered undervalued by some 👉 may act as support - Price above VWAP: considered overvalued 👉 may act as resistance It acts like a magnet for price, especially in trending markets. VWAP is also used as a benchmark for large players want to buy below VWAP or sell above it. 3️⃣ Anchored VWAP (AVWAP) Anchored VWAP is a more advanced version of VWAP. Instead of starting at the market open, you anchor it to a specific candle (pivot high or low). 🔍 Why use it: - Lets you analyze the average price from key market turning points - Helps spot institutional interest near pivots - More accurate for swing trading When you anchor VWAP to a major high or low, it gives you clean zones where smart money might enter or exit. 4️⃣ How I Use Anchored VWAP I personally anchor VWAP from: - Major pivot highs/lows - Breakout points - Strong reversal candles Then I watch how price interacts with it. ✅ Works well on 30m and 4H charts for intraday or swing setups ✅ Can be combined with fixed range volume profile for extra confluence If you haven’t read my guide on fixed range volume profile, scroll below — it’s linked there. 5️⃣ Common Uses ✔️ Support and resistance zone in trending markets ✔️ Institutional entry/exit level benchmark ✔️ Reversion-to-mean setups VWAP is used across timeframes. I use higher timeframes like 4H to spot trend zones, then zoom into 30m or 15m for entries. Setting and more information VWAP Explained by TradingView: www.tradingview.com Anchored VWAP Explained by TradingView: www.tradingview.com 6️⃣ VWAP Limitations ⚠️ VWAP doesn’t work well in all cases: - In sideways/choppy markets, it can lose value - It is not an exact entry/exit signal, but rather a dynamic zone - In FX markets, it’s unreliable due to lack of centralized volume data Also, treat VWAP as a zone, not a line. Large players fill big orders in that area, expect false moves or liquidity grabs. 7️⃣ Mistakes to Avoid ❌ Entering blindly on VWAP touches ❌ Using VWAP without confirmation from price action or volume ❌ Assuming it always gives perfect levels It works best when combined with other tools, such as market structure, support/resistance, and volume profile. 8️⃣ Final Thoughts VWAP is a powerful tool to see where price is relative to volume-based value. Anchoring VWAP to key levels adds precision and insight. Used properly, it helps: - Spot where institutions might be active - Confirm high-probability zones - Improve entries/exits when paired with other tools Examples are provided below to show how VWAP works in real-time setups. This guide is educational and for learning purposes only. VWAP Zone and a Example trade CRYPTOCAP:BTC Example Stock Market NASDAQ:AAPL Example Resistance NASDAQ:MSTR VWAP (Volume Weighted Average Price) helps traders see the average price weighted by volume. It's commonly used by institutions to identify good entry/exit zones. Anchored VWAP takes this further by starting from key points like pivot highs/lows for more accuracy. It's most useful in trending markets and works best when combined with tools like fixed range volume profile or support/resistance. While powerful, VWAP isn’t perfect it should be used as a dynamic zone, not a fixed level, and always with other confirmations. Disclaimer: This is not financial advice. Always do your own research. This content may include enhancements made using AI.
Education
by Risk_Adj_Return
4
When and How to Use Weekly Time Frame in Gold Forex Trading Ignoring weekly time frame chart analysis could cost you big losses in Forex, Gold trading! Discover 3 specific cases when weekly time frame beats daily time frame analysis. Learn the situations when weekly timeframe exposes what daily charts can’t, how to analyze it properly and when to check it. 1. Long-term historic levels When the market trades in a strong bullish or bearish trend and goes beyond recent historic levels, quite often the daily time frame will not be sufficient for the identification of significant supports and resistances. The proven way to identify the next meaningful levels will be to analyze a weekly time frame. Examine a price action on EURAUD forex pair on a daily time frame chart. The market is trading in a strong bullish trend and just updated the high. Checking the historic price action, we don't see any historic resistance on the left. Switching to a weekly time frame chart, we can easily recognize a historic resistance that the price respected 5 years ago. That's a perfect example when weekly t.f revealed a historic price action that a daily didn't. 2. Trend-lines Weekly time frame analysis is important not only for a search of historic levels. It can help you find significant vertical structures - the trend lines. We can easily find several meaningful historic resistances on EURUSD pair on a daily time frame. Though, there are a lot of historic structures there, let's check if there are some hidden structures on a weekly. Weekly time frame reveals 2 important trend lines, one being a vertical support and another being a vertical resistance. With a daily time frame analysis, these trend lines would be missed . 3. More accurate breakout confirmations Some false support and resistance breakouts that you see on a daily could be easily avoided with a weekly time frame analysis. Quite regularly, a daily time frame support or resistance is in fact a weekly structure. And for its breakout, a weekly candle close will provide more accurate confirmation. From a daily time frame perspective, we see a confirmed breakout - a daily candle close above a solid resistance zone. It provides a strong bullish signal on AUDUSD forex pair. However, the violation turned out to be false and dropped. Such a false breakout , could be easily avoided, checking a weekly time frame chart. The underlined resistance is in fact a weekly structure. The price did not manage to close above, and perfectly respected that, starting to fall after its test. Such a deeper analysis would completely change our bias from strong bullish (based solely on a daily) to strongly bearish (based on a daily AND weekly) Remember This Do not ignore and always check a weekly time frame. It shows a unique perspective on the market and reveals a lot of hidden elements that you would not notice. No matter whether you are a scalper, day trader or swing trader, remember that weekly time frame structures are very impactful and accumulate large trading volumes. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
HA-RSI + Stochastic Ribbon: The Hidden Gem for Trend & MomentumNavigating volatile markets requires more than just raw price action. The Heikin Ashi RSI Oscillator blends the power of smoothed candlesticks with momentum insights to give traders a clearer picture of trend strength and reversals. At Xuantify , we use the Heikin Ashi RSI Oscillator as a hybrid momentum and trend tool. While the indicator calculations are based on Heikin Ashi values to smooth out noise and better capture trend dynamics, the chart itself displays standard candlesticks (real price data) . This ensures that all signals are aligned with actual market structure, making it easier to execute trades with confidence and clarity. This dual-layer approach gives us the best of both worlds: clarity from smoothing and precision from real price action. MEXC:SOLUSDT.P 🧠 How We Use It at Xuantify At Xuantify , we integrate the Heikin Ashi RSI Oscillator into our multi-layered strategy framework. It acts as a trend confirmation filter and a momentum divergence detector , helping us avoid false breakouts and time entries with greater precision. We pair it with volume and volatility metrics to validate signals and reduce noise. Note the Stochastic Ribbon Overlay as shown in the chart, very accurate for momentum. ⭐ Key Features Heikin Ashi Smoothing : Filters out market noise for clearer trend visualization. RSI-Based Oscillation : Measures momentum shifts with precision. Color-Coded Bars : Instantly identify bullish/bearish momentum. Dynamic Signal Zones : Customizable overbought/oversold thresholds. Stochastic Ribbon Overlay : A powerful multi-line stochastic system that enhances momentum analysis and trend continuation signals. 💡 Benefits Compared to Other Indicators Less Whipsaw : Heikin Ashi smoothing reduces false signals common in traditional RSI. Dual Insight : Combines trend and momentum in one visual. Better Divergence Detection : Easier to spot hidden and regular divergences. Visual Simplicity : Clean, intuitive design for faster decision-making. ⚙️ Settings That Matter RSI Length : Default is 14, but we often test 10 or 21 for different timeframes. Smoothing Type : EMA vs. SMA – EMA reacts faster, SMA is smoother. Overbought/Oversold Levels : 70/30 is standard, but 80/20 can reduce noise in trending markets. 📊 Enhancing Signal Accuracy Combine with Volume Oscillators to confirm momentum strength. Use Price Action Zones to validate oscillator signals. Look for Divergences between price and oscillator for early reversal clues. 🧩 Best Combinations with This Indicator MACD : For cross-confirmation of momentum shifts. Bollinger Bands : To identify volatility squeezes and breakouts. Support/Resistance Levels : For contextual trade entries and exits. ⚠️ What to Watch Out For Lag in Strong Trends : Like all smoothed indicators, it may react slightly late. Over-Optimization : Avoid curve-fitting settings to past data. Standalone Use : Best used in conjunction with other tools, not in isolation. 🚀 Final Thoughts The Heikin Ashi RSI Oscillator is a powerful hybrid tool that simplifies complex market behavior into actionable insights. At Xuantify, it’s a core part of our strategy toolkit, helping us stay ahead of the curve with clarity and confidence. 🔔 Follow us for more educational insights and strategy breakdowns! We regularly share deep dives into indicators, trading psychology, and backtested strategies. Stay tuned and level up your trading game with us!
Education
by Xuantify
SMI vs. Stochastic: Which One Gives You the Edge?Momentum indicators are essential tools in every trader’s arsenal—but not all are created equal. While the Stochastic Oscillator has been a go-to for decades, the Stochastic Momentum Index (SMI) offers a more refined and reliable way to read market momentum. In this post, we’ll break down the key differences between these two indicators, how we use them at Xuantify , and why the SMI might just give you the edge you’ve been looking for. 🧠 How We Use It at Xuantify We’re always looking for tools that offer greater precision and less noise . While the Stochastic Oscillator is one of the most commonly used tools for spotting overbought and oversold conditions, the Stochastic Momentum Index (SMI) gives us a clearer, smoother view of momentum —especially in volatile or choppy markets. We use the SMI to refine our entries and exits , particularly when trading breakouts or reversals. MEXC:ETHUSDT.P ⭐ Key Features Stochastic Oscillator : Measures the closing price relative to the high-low range. Simple and responsive. Great for spotting short-term reversals. Stochastic Momentum Index (SMI) : Measures the distance of the current close from the midpoint of the high-low range. Smoother and more centered around zero. Better at filtering out false signals. 💡 Benefits Compared to Other Indicators Stochastic Oscillator vs. SMI: Signal Smoothness: Moderate vs. High Noise Filtering: Low vs. Excellent Centered Oscillation: No vs. Yes (around 0) Best Use Case: Range-bound markets vs. Trend shifts & momentum confirmation False Signal Risk: Higher vs. Lower The SMI is especially useful when you want to avoid whipsaws and get a more reliable read on momentum . ⚙️ Settings That Matter Stochastic Oscillator : %K = 14, %D = 3 SMI : Length = 14, Signal Smoothing = 3, Double Smoothing = 3 You can adjust the SMI smoothing values to match the volatility of the asset— lower smoothing for fast markets , higher for slower ones. 📊 Enhancing Signal Accuracy Enhance SMI signals by combining them with: Trend filters like EMAs or Supertrend Volume confirmation Support/resistance zones Divergence spotting for early trend reversals This layered approach helps us avoid false positives and stay aligned with the broader trend . 🧩 Best Combinations with This Indicator SMI + EMA Crossovers: Confirm momentum with trend direction SMI + RSI Divergence: Spot early reversals with confluence SMI + Volume Profile: Validate momentum near key price levels ⚠️ What to Watch Out For Lag in fast markets: SMI’s smoothing can delay signals slightly Over-optimization: Avoid excessive tweaking of parameters Not ideal alone: Best used with confluence tools for confirmation 🚀 Final Thoughts The Stochastic Oscillator is a classic for a reason—but the Stochastic Momentum Index is a refined evolution . We’ve found that SMI gives us cleaner signals , better momentum clarity , and fewer false alarms —especially when paired with smart filters. If you're looking to upgrade your momentum toolkit , the SMI might just be your edge. 🔔 Follow us for more educational insights and strategy breakdowns! We break down indicators, strategies, and market psychology to help you trade smarter—not harder.
Education
by Xuantify
london break out strategy (my strategy) back test :2025 mayto learn is to share... hello traders! this is back test of london breakout strategy for gbp usd pair for month of the may. i hope u read this see the idea that i had give me your comments and ideas ,maybe help me fix my mistakes, maybe it gives you some lead and etc. no more talking straight to the strategy ... strategy summary the Strat focuses on breaking the range market of the asian session, first u got to mark the high and low of the price between 4 am to 6 am utc then you have range that in the chart i showed like box , next we wait till 7 am utc , if price was out of the box zone we open a trade toward the trend( if it broke above you open a long and vise versa) or if it wasn't u simply wait for price to close above or below, then you open a trade with sl put on the opposite side of the box and profit set to 1.5 times of the sl. only one trade per day is acceptable . there are some exception that you don't have to trade: 1.when there is bank holiday 2.when your sl would exceed 50 pip (that's high of a risk) 3. further effect of the news shall be studied that i didn't consider in this back test I've put the results in an ai and asked it to analyze the results: Summary Statistics Total Trades: 19 Total Profit: +152.3 pips Average Profit per Trade: +8.02 pips Max Profit in a Trade: +49.0 pips Max Loss in a Trade: -30.2 pips Winning Trades: 10 Losing Trades: 9 Win Rate: 52.6% Profit Factor: 1.74 (total gain / total loss)
Education
by alisardari
Why You Should Trade Zones, Not Points – Especially on XAUUSDIf you've been trading Gold (XAUUSD) for a while, you’ve likely noticed something strange in many analyses online. Support at 3256.73? Resistance at 3352.14? Really? That precise? This kind of fixed-point trading might look good on a chart, but it doesn't work in a real, volatile market — especially not in 2025. I've been trading Gold as my primary asset for over a decade, and if there's one thing experience — and logic — have consistently shown me, it's this: you should trade price zones, not fixed points. Let me explain you why. ________________________________________ 🔍 1. Gold Is Not a Low-Volatility Asset Gold isn't EURUSD. It doesn't move in clean 20-30-pip increments. It's volatile, reactive, and sensitive to everything from Fed rate rumors to random tweets and global conflicts. Over the past months, volatility has spiked — and not just because of economic data. We’re seeing: • Geopolitical uncertainty that escalates and de-escalates overnight • Macro shifts in interest rate expectations almost weekly • Market sentiment changing faster than ever In this environment, the idea that price will reverse exactly at 3352.14 is pure fantasy. ________________________________________ 📏 2. Percentages Matter More Than Pips Now Back when Gold was around $2000, a 200-pip move meant a 1% change in price. Now, with Gold trading above $3300, the same 1% move is 330 pips. So, if you're still treating 30–50 pips like a serious target on Gold, you're not adjusting to reality. You're chasing crumbs in a storm. I’ve written before about why you shouldn't trade Gold for small 30–50 pip moves. It’s no longer a high-probability game — the math doesn’t work. You’re either over-leveraging or underperforming. ________________________________________ 📈 3. Price Zones Are Where the Smart Money Trades Markets aren’t binary. They don’t care about your exact number. They care about liquidity zones — where enough buyers and sellers are willing to transact in volume. Here’s how professionals approach it: • Support isn’t a number — it’s a range. • Resistance isn’t a line — it’s a battle zone. When you analyze Gold, think in ranges like 3280–3290 or 3320–3330. This is where price breathes, traps traders, and makes real moves. Fixed points create unrealistic expectations and false confidence. ________________________________________ 🧠 4. Emotion Kills Precision in Real Time In live trading, you’re not a machine. You’re a human reacting to candles, tweets, and news. Waiting for an entry at exactly 3352.14 often means: • You miss the move entirely • Or you force a bad entry when price front-runs your level But when you use zones, you give yourself the flexibility to act within context, not dogma. You can read the candle behavior inside that zone, you can spot exhaustion, you can scale in or out — you become tactical, not rigid. ________________________________________ ✅ Final Thoughts: Adapt or Stay Frustrated If you want to trade Gold successfully in this current market, you must adapt: • Use zones instead of pin-point levels • Adjust your expectations to the new pip-to-percentage dynamics • Respect the volatility and macro backdrop The traders who will survive are not the ones with the cleanest lines on their charts. They’re the ones who know how to handle chaos with structure, using zones as flexible tools, not false certainties. 🎯 Start thinking in ranges, not numbers. That’s where the edge is. Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
TRADENATION:XAUUSDEducation
by Mihai_Iacob
2
How to draw support and resistance levels the right way? 1️⃣ Why Are Support and Resistance Levels So Important? Support and resistance levels show where price has reacted strongly in the past. These are zones where many traders including large players have placed buy or sell orders. Support = where buyers step in and push price up Resistance = where sellers step in and push price down These levels are important because they act like decision zones: - Price might bounce from these levels - Or break through and start a new move - Or even fake out traders before reversing again Knowing where these levels are gives you an edge: - You can better time your entries and exits - You avoid chasing price in the middle of nowhere - You prepare for market reactions not random guesses Think of them like traffic lights for the market when price hits them, something important usually happens. 2️⃣ Three Main Types of Support and Resistance There are 3 key types of support and resistance levels traders commonly use: - Level-Based: Horizontal zones drawn from key highs and lows - Pattern-Based: Support/resistance found in chart patterns like triangles, flags, etc. - Channel-Based: Diagonal trendlines showing support and resistance in a channel Today, we focus on level-based support and resistance horizontal lines drawn on key price zones. 3️⃣ How to Draw Support and Resistance Levels Use daily, weekly, or monthly timeframes to find major zones. These higher timeframes give you stronger, more respected levels. Look for: - Candle bodies that close and open around the same price - Strong wicks rejecting a certain level - Zones where price has bounced multiple times in the past I often pick: - The close of a red candle - The open of the next green candle These spots usually show where sellers lost control and buyers stepped in — or vice versa. 4️⃣ Timeframes and Their Strength The higher the timeframe, the stronger the level: - Monthly = very strong, long-term zones - Weekly = strong and reliable - Daily = useful for swing trading - Lower timeframes (15m, 5m) = more noise, less reliable unless you're day trading or scalping Pick levels based on your strategy: - Swing traders = use daily/weekly/monthly - Scalpers = lower timeframes with extra confluence (volume, structure) 5️⃣ Don’t Use Support/Resistance Alone Support and resistance are helpful — but not enough by themselves. Always combine them with: - Market structure (higher highs/lows) - Volume confirmation - Indicators or price action signals You want to watch how price reacts at your levels. Wait for confirmation before making decisions. 6️⃣ Common Mistakes Traders Make Mistake 1: Drawing too many levels clutters your chart and creates confusion. Mistake 2: Keeping old levels that have already been broken or invalidated. Mistake 3: Ignoring volume. Just because price hits a level doesn’t mean it will reverse. You need volume to back the move. Also: Don’t enter blindly on breakout, breakouts can fail. Wait for confirmation. Don’t assume a level is strong just because it’s touched once — look for multiple rejections. 7️⃣ Example: How I Draw Support/Resistance Let’s say I’m looking at a daily chart. - I find a red candle that closes at 42,000 - Then a green candle opens at 42,000 and pushes higher That tells me buyers stepped in at 42,000 — this is a potential support. I draw my horizontal line across that level. Then I zoom into 30m or 15m charts to watch price behavior when it comes back to that level. If price respects it again, I may enter a trade based on the reaction. This technique gives me more confidence and clarity. I know where liquidity might be waiting. I can combine it with indicators or volume tools. I avoid random trades. 🔄 Summary Identify a timeframe – Use the monthly, weekly, or daily chart. Look for two candles – Draw your support or resistance line at the point where one candle closes and the next one opens. Make sure the level hasn’t been hit yet – This helps you spot areas where liquidity grabs might happen. Wait for price to reach the level – Once price touches the support or resistance zone, watch how it reacts. After price touches the level, remove it – Once tested, that level is no longer fresh and should be cleared from your chart. Support and resistance isn’t magic — but used with confluence, it becomes a powerful guide. Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. Disclaimer: This is not financial advice. Always do your own research. This content may include enhancements made using AI.
NYSE:KOEducation
by Risk_Adj_Return
What is Bitcoin Dominance, and When Can We Expect Altseason?What is Bitcoin Dominance, and When Can We Expect Altseason? ✅ In the fast-paced and ever-changing world of digital currencies, traders and investors are continually seeking signs and tools to aid them in making informed decisions. One key sign is Bitcoin Dominance (BTC.D). Understanding this and examining its chart can provide us with important clues about what the market might do next, especially regarding when Altseason (the period of growth for altcoins) might begin. CRYPTOCAP:BTC.D What is Bitcoin Dominance (BTC.D)? Simply put, Bitcoin Dominance indicates the percentage of the total value of all digital currencies that is held by Bitcoin. For example, if the total value of all digital currencies is $1 trillion and Bitcoin's value is $600 billion, then Bitcoin's Dominance is 60%. This number is very important because: It shows market feeling: When Bitcoin Dominance goes up, it usually means money is moving to Bitcoin as a safer option, and people are less willing to take risks. When Bitcoin Dominance goes down, it can mean people are more confident in altcoins and are ready to take more risks for bigger profits. It shows money flow: Changes in BTC.D show how money is moving between Bitcoin and altcoins. ❓ What is Altseason? Altseason is a time in the digital currency market when altcoins (digital currencies other than Bitcoin) do much better than Bitcoin, and their prices go up a lot. During Altseason, money often flows from Bitcoin to altcoins, and many altcoins can see their prices increase many times over. Looking at the Current Bitcoin Dominance Chart and forecasting Altseason If we look at the provided chart for Bitcoin Dominance (BTC.D), we can see a few key things: Long-term upward channel: The chart shows that Bitcoin Dominance has been in a long-term upward path. The bottom of this path is marked by a blue support line , and the top is marked by a red resistance line . This means that, in the bigger picture, Bitcoin's control over the market has been growing. Broken short-term upward trend: There was a shorter-term upward trend line (shown in black on the image) that the price broke below on May 9th . This break could be an early warning sign that Bitcoin's dominance might be weakening in the short term, and its dominance might start to fall. ⚠️ But here is a very important point: We cannot be sure that Altseason has definitely started until the price clearly breaks below the main support line of the channel (the blue line) and stays below it. The break of the short-term upward trend line (black line) is an early signal. However, to confirm a change in the trend and the possible start of a significant Altseason, we need to see stronger support levels, like the blue support line on the chart, get broken. ⏳ So, When Should We Expect Altseason? Based on the chart analysis and the points mentioned: Early Sign: The break of the short-term upward trend line (black) on May 9th might make people pay more attention to altcoins, but it's not enough on its own. Key Condition for Altseason: The most important signal for the start of a real Altseason would be if the Bitcoin Dominance price breaks below the blue support line of the long-term upward channel. As long as Bitcoin Dominance stays above this support line, Bitcoin will likely keep its relative strength in the market, and altcoins might only see limited growth or could even face selling pressure. Conclusion: Analyzing Bitcoin Dominance is a useful tool for understanding how the digital currency market works and for predicting possible trends. Right now, because the short-term trend line has been broken, the market is at a sensitive point. However, traders and investors should watch the BTC.D price movements very carefully and wait for stronger confirmations, especially a possible break of the blue support line, before announcing the start of Altseason.
CRYPTOCAP:BTC.DEducation
by Navid_Jafarian
46
How to Use Fixed Range Volume Profile on TradingView 1️⃣ Why Fixed Range Volume Profile Matters ✅ It helps you spot real price structure where traders were active, not just where price passed through. Useful for: Identifying Supply & Demand zones Understanding nstitutional activity (volume concentration = likely smart money involvement) Analyzing range-bound markets Confirming pullbacks or entries in trending setups There are two different tools: one is called Volume Profile, and the other is Fixed Range Volume Profile. To learn more about them, check out the link below. Volume Profile Indicators: basic concepts: www.tradingview.com Fixed Range Volume Profile: www.tradingview.com 2️⃣ What is Volume in Trading? Volume refers to the total number of units (e.g., shares, contracts, coins) traded during a specific time period. It measures the market's participation. ✔️ High Volume = strong interest and confirmation of price moves. ❌ Low Volume = weak conviction, indecision, or potential false moves. Volume is calculated by counting all completed trades in a candle both buying and selling. Learn more about volume here: www.tradingview.com 3️⃣ What is Fixed Range Volume Profile? Fixed Range Volume Profile is a tool you can draw on your chart to check how much trading happened at different price levels, but only within the range you select. You pick the start and end point, and the tool shows volume activity just in that area. It shows three main levels: 🔴 Point of Control (POC): the price where the most trading happened 🟢 Value Area High (VAH): the highest price in the area where most trades occurred (about 70% of total volume) 🔵 Value Area Low (VAL): the lowest price in that same area These three levels show the price range where most trading took place also called the value area. 4️⃣ Why Fixed Range Volume Profile Matters It helps you spot real price structure where traders were active, not just where price passed through. Useful for: Identifying Supply & Demand zones Understanding institutional activity (volume concentration = likely smart money involvement) Analyzing **range-bound markets Confirming pullbacks or entries in trending setups 5️⃣ How to Use Fixed Range Volume Profile on TradingView Steps: 1. First, look for a clear range on your chart. A range is a sideways movement where price is mostly moving back and forth instead of trending. 2. I like to use the 4-hour chart for this, but you can use any timeframe. Using candles with clearer shapes can help you see the range more easily. 3. Once you see a range, go to the left-hand toolbar and select the Fixed Range Volume Profile tool. 4. Click at the beginning of the range, then drag your mouse to the end of the range. 5. Let go of the mouse, and the volume profile will appear on that section of the chart. Analyze: POC: Price may often return to this level because it's where most trading happened VAH: Price could have a harder time moving higher if it reaches this level may act like resistance VAL: Price may find support around here — traders bought more in this area 1. Find the Range 2. Draw your Profile 3. You should treat your volume range like a basic support and resistance level. What you want to see is a flip between support and resistance. 4. If the price breaks above the volume profile and keeps going higher, you want it to come back and retest that same range this time acting as support. 5. Your entry should be near the support. Your stop-loss should be placed above the high of the breakout or a logical structure. Of course, setting a stop-loss always depends on more context, like the overall market structure and your risk management plan. 6️⃣ Practical Scenarios ✔️ Use it during sideways or quiet market phases (called consolidation) to see where most of the trading happened before the market moved ✔️ Try it on pullbacks in trending markets to check if price is returning to an area of high volume ✔️ Draw profiles on different price swings to spot areas where volume keeps showing up again and again Example: ⚠️ Limitations Fixed Range Volume Profile might not work well when: The asset has very little trading volume (like new coins or very small stocks) There’s a big news event causing unexpected volume spikes The market is moving fast in one direction, and the volume zones don’t hold ⚠️ A couple of common mistakes traders make when using Fixed Range Volume Profile: They apply it in trending markets. This tool works best in sideways or ranging markets, not when price is trending strongly up or down. They include breakout volume. Breakouts often include forced liquidations or trapped traders this can create misleading spikes in volume. 7️⃣ Summary Fixed Range Volume Profile helps you see where most trades happened in a specific part of the chart. It highlights price zones where traders were most active, which can help you understand possible support, resistance, or value areas. ✅ Good for: Markets that are going sideways Double-checking volume around key levels Spotting price zones where support or resistance might appear Disclaimer: This is not financial advice. Always do your own research. This content may include enhancements made using AI.
Education
by Risk_Adj_Return
Best Practice: Prepare, Assess, Plan Then TradeTraders are often eager to jump straight into the next trading session but this may not always be the best option to chose. It can be more beneficial to follow a regular pre-trading routine to note down important scheduled events, establish current trends, as well as meaningful support and resistance price levels, and importantly this doesn’t have to be time consuming. This is not meant to be that trading ‘holy grail’ but more of an addition to your existing trading process or plan. Having a regular routine to establish important levels, indicator set-ups and price trends to be aware of during your trading day may help you make trading decisions in a more effective way. This pre trading routine can also be helpful for traders that take longer term positions, as it’s still important to consider the longer-term weekly perspectives as well. This routine can be carried out at the weekend and then monitored and, where necessary, modified during the week as price action develops for the particular CFD(s) you are trading. 1. Keep Informed of Important Data Releases If there are several CFD’s you regularly trade and tend to stick with, make sure you have as much information about those assets as possible before you start trading. Consider utilising the Pepperstone trading calendar to help keep you informed of any economic releases/company earnings data that might impact the CFD you are trading before the week/session starts. Once you know the scheduled events ahead, you can ask yourself, Could these impact my trading? Could the market reaction to this new information increase the volatility of the CFD I am about to trade or already have a position in? How may this impact my risk? Knowing what it is expected by the market before a particular important economic data release, such as US Non-farm Payrolls, can help you assess positioning going into the release, gauge market reaction to the data, and then be prepared for any potential price sentiment change and/or increased volatility. 2. Be Aware of Potential Support and Resistance Levels Ahead of your trading day, consider running through the Pepperstone charts of the CFD’s you are considering trading and make a note of 3 support and resistance levels, that you identify as being meaningful. To help you we have set out an example Trading Template below. Daily: Level: Reason: Current Trend: Current Thoughts: Support 1st: 2nd: 3rd Resistance 1st 2nd 3rd Keep this next to your trading screen, so you are aware of particular levels that may act as support and resistance, if prices move in that direction. This can help you to improve trade entry or assist you with the placement of a stop loss or take profit order. If these levels are broken at any time, you can update the template with any new support/resistance levels during the trading period. 3. Be Aware of the Daily Trends – Focus on Bollinger Bands Using the direction of the daily Bollinger mid-average can be helpful to gauge the direction of the daily trend. If the, Mid-average is moving up = price uptrend Mid-average is moving down = price downtrend Mid-average is flat = possible price sideways range The daily and weekly perspectives are the most important to be aware of, so it can be beneficial to analyse the charts from the longest timeframe into the shortest as this allows you to build a better understanding of the dominant trends. You can also note these trends on the Trading Template, so it’s available to you when you are trading. 4. Follow the Same Process for All Other Timeframes - 4 Hour, 1 Hour, Even Shorter if it Suits Your Trading. You can carry out the routine outlined in point 3, for any timeframes you are trading. Things to note, Are there any new trends suggested within a shorter term perspective by the Bollinger mid-average? If the direction of a shorter term mid-average has changed, it may be an indication of either a change or resumption of a longer term price trend. If this trend change also looks to be resuming within the longer term perspectives, this could be a more important signal, as the resumption of an existing longer term trend may mean a more extended move in that direction. Be aware, confirmation of a price trend change within a longer term perspective might mean it could take longer and offer less trading opportunities, as initially price moves may be less aggressive in nature. 5. Where, Within the Various Timeframes is Price in Relation to the Bollinger Bands? As we have highlighted in a previous commentary (please take a look our past posts), Bollinger Bands can highlight increasing price volatility within a trend. Things to note regarding Bollinger Bands, Are the upper or lower bands being touched by prices within any of the timeframes? Within a sideways range (flat mid-average) this might suggest price has reached either a support or resistance level, with potential for a reversal. While being touched, are the upper and lower bands starting to widen which indicates increasing price volatility, or contract, which indicates decreasing price volatility? Remember - widening bands within a confirmed trend highlight increasing volatility, suggesting the current price move might continue for longer than you may anticipate, while contracting bands, point to decreasing volatility, which may lead to a reduction in a particular CFDs price movement. Do the timeframes align? If they do it may suggest a stronger trading opportunity is evident. CFDs within trending markets seeing increasing volatility tend to offer greater potential than those that aren’t. In this scenario it maybe worthwhile considering only trading with the trend, not trying to pick bottoms or tops of markets, or if you do, consider a more cautious approach to your trading by reducing the size of your position and risk. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
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by Pepperstone
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Strength of Movement: A Hidden Gem for Trend Traders📌 What Is It? Have you ever struggled to determine whether a price move has real strength behind it? The Strength of Movement indicator might be the tool you're missing. The Strength of Movement (SoM) indicator by RedK is designed to measure the momentum and conviction behind price movements. Unlike traditional momentum indicators like RSI or MACD, SoM focuses on the strength of directional moves, helping traders identify when a trend is gaining or losing steam. This post will explore the features, configuration, and practical applications of this indicator. 🔍 What is the RedK Strength of Movement Indicator? The RedK Strength of Movement indicator is designed to measure the strength of price movement and show when a quality trend has been established. It uses a simple mathematical concept to identify opportunities for long call or put positions. 📈 What kind of indicator is it? The Strength of Movement indicator falls into the category of momentum indicators. Momentum indicators are used to measure the speed and strength of price movements. ⏳ Is it Leading or Lagging? The RedK Strength of Movement indicator is primarily a leading indicator. It can act as a leading indicator for an imminent change in trend direction by exposing the relative movement or change of price. ⭐ Key Features Strength Circles: These circles indicate that the top or bottom has not been reached yet, providing valuable insights into market momentum. Measures the strength of price movement. Identifies quality trends. Helps filter out low-momentum conditions. 💡 Benefits Compared to other indicators Provides clearer signals for trend identification. Acts as a leading indicator for trend changes. Helps avoid low-momentum conditions. ⚙️ Indicator Configuration Timeframe Source: The indicator works on any timeframe, but higher timeframes (e.g., daily, weekly) are recommended for identifying high-quality trend setups. Range Source: The calculation is based on the relative price change (as a ratio) from the previous bar, rather than absolute values. This makes it more intuitive and accurate for traders. SoM Calculation Type: The core logic uses a modified `stoch()` function to normalize the strength of movement between 0% and 100%. Smoothing Adjustments: In version 2, the calculation was refined to avoid visual confusion—especially on Renko or non-time-based charts—by adjusting how the lowest and highest values are interpreted. 📈 Enhancing Signal Accuracy with a Trend Indicator To enhance the accuracy of signals generated by the RedK Strength of Movement indicator, it can be used in conjunction with trend indicators such as: Moving Averages: Simple Moving Average (SMA) and Exponential Moving Average (EMA) are widely used to identify trend direction. MACD: Moving Average Convergence Divergence helps reveal both direction and underlying momentum. Combining these tools helps confirm signals and reduce false positives. 🔄 Alternatives While the RedK Strength of Movement indicator is powerful, there are other alternatives that also focus on momentum and trend identification: RSI: Relative Strength Index measures the speed and change of price movements. Stochastic Oscillator: Measures the level of the closing price relative to the range of prices over a certain period. 💡 Practical Tips Combine with Trend Indicators: Use the RedK Strength of Movement indicator alongside trend indicators to confirm signals. Monitor Strength Circles: Pay close attention to the strength circles for insights into market momentum. Backtest Thoroughly: Before using the indicator in live trading, backtest it on historical data to understand its performance and adjust settings accordingly. 📈 Which Securities Does This Apply For? The RedK Strength of Movement indicator can be applied to a wide range of securities, including: Stocks: Useful for identifying quality trends in individual stocks. ETFs: Effective for analyzing exchange-traded funds. Forex: Valuable for currency pairs, helping traders identify market cycles and potential reversals. Commodities: Applicable to commodities like gold, oil, and agricultural products. Cryptocurrencies: Can be used to analyze digital assets, providing insights into market momentum. 📌 Conclusion The RedK Strength of Movement indicator is a powerful tool for traders looking to enhance their technical analysis. By measuring the strength of price movement and identifying quality trends, it provides clearer and more accurate signals, helping traders navigate complex market cycles.
Education
by Xuantify
Trade the Angle, Not the Chop: Angle of MA ExplainedNot all moving averages are created equal. While most traders rely on the slope of a moving average to gauge trend direction, the Angle of Moving Average script by Mango2Juice takes it a step further—literally measuring the angle of the MA to help filter out sideways markets and highlight trending conditions. Let’s explore how this tool works, how we use it at Xuantify, and how it can sharpen your trend-following strategy. 🔍 What Is the Angle of Moving Average? This indicator calculates the angle of a moving average (default: EMA 20) to determine whether the market is trending or ranging. It introduces a No Trade Zone , visually marked in gray, to signal when the angle is too flat—suggesting the market is consolidating. Key Features: Measures the slope of the moving average Highlights ranging zones with a gray color Helps filter out low-momentum conditions Customizable MA type and length 🧠 How We Use It at Xuantify We use the Angle of Moving Average as a trend filter —not a signal generator. 1. Trend Confirmation We only take trades in the direction of a steep enough angle. If the MA is flat or in the gray zone, we stay out. 2. Entry Timing We combine this with structure tools (like BOS/CHOCH) to time entries after the angle confirms a trend is underway. 🎨 Visual Cues That Matter The script uses color to show when the market is: Trending : Clear slope, colored line Ranging : Flat slope, gray line (No Trade Zone) This makes it easy to: Avoid choppy markets Focus on momentum-driven setups Stay aligned with the dominant trend ⚙️ Settings That Matter You can customize: MA Type : EMA, SMA, etc. MA Length : Default is 20 Angle Sensitivity : Adjust to define what counts as “flat” ⚙️ Higher timeframe alignment You can look at HTFs for better and stronger entry and exit points. Below a 1H and 4H chart where the 4H clearly adds strong buying power for a good long entry point. 🔗 Best Combinations with This Indicator We pair the Angle of MA with: Structure Tools – BOS/CHOCH for trend context MACD 4C – For momentum confirmation Volume Profile – To validate breakout strength Fair Value Gaps (FVGs) – For sniper entries ⚠️ What to Watch Out For This is a filter , not a signal. It won’t tell you when to enter or exit—it tells you when not to trade . Use it with price action and structure for best results. 🚀 Final Thoughts If you’re tired of getting chopped up in sideways markets, the Angle of Moving Average is a simple but powerful filter. It helps you stay out of low-probability trades and focus on trending opportunities. Try it, tweak it, and see how it fits into your system.
Education
by Xuantify