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Support and Resistance

What is Double Bottom Pattern?What is Double Bottom Pattern? The double bottom pattern looks like the letter "W". It indicates an trend and momentum reversal in a particular asset. It is best for analyzing the intermediate to longer-term view of a market. Double Bottom Pattern one of the most reliable reversal pattern after Head and Shoulders Pattern. How does Double Bottom Pattern Work? Double Bottom Pattern works in two phases: Phase 1: When the major trend is downtrend and forms the first down peak, then from the support the prices bounce to a new higher resistance and unable to break that resistance. Phase 2: When prices are not able to break the resistance it again goes to the same level and take support form similar levels forming second down peak also double bottom. Again due to demand the prices rises up to the resistance and break that resistance. Increase in volumes during breakouts further confirms the reversal move. This marks the completion of the pattern. Above Chart Explanation: This is the daily chart of EGLDUSDT here we can see in a downtrend prices take support and forms a down peak one and took support form there and bounce back to the above resistance. But prices were not able to break it instead prices got rejection from resistance and the prices again go down forming second down peak. After taking support prices bounces and break resistance due to heavy demand with great volumes. Usually traders enter on the breakouts and target the next resistance. Conclusion: Hence, the Double Bottom Pattern is great reversal pattern after Head and Shoulders Pattern. And it occurs quite often. Most of the traders use it on large time frames like 1D, 1W, 1M. Please let me know in the comments what do you think about Double Bottom Chart Pattern! Disclaimer: This is just an educational post never trade just any pattern. And please do your research before taking any trades.
Education
by Coinlog
2
ATR indicator (Always Use This)The ATR (average true range) indicator is the single best indicator that all FOREX traders should be using for all trades (use it or lose it). You can put ATR indicator on your chart always and/or just glance at number (in upper left) and take it off your chart, just have it handy always. What is the ATR: (Default setting (14) works fine for me in FX trading. It tells you how many pips the currency pair has moved, on average, in the past X amount of candles. Why you should be using ATR 100% of the time on every trade: 1) The ATR is crucial for Money Management 2) Money Management is crucial to winning *Know that money management is what will separate you from the losing traders. How To Use ATR In Setting Up Trades: (Never Trade Without It) 1) To know how far back from entry price away your stop loss, which is either ATR x 1.5 (works mostly) or ATR x 2.0 (if you want larger stop loss) 2) To know where to place profit targets and/or targets, 1st target is same as risk or stop loss is and 2nd target is double what the stop loss is. When you are describing Forex RISK, instead of saying unit size or dollar amounts, instead say How much are you trading per pip? Using the ATR will prevent you from getting stopped out of more trades, will keep in more trades. The professionals use ATR for stop losses and targets. ATR can be used on any time frames, but look for other evidence like price action at support and resistance areas, fib ret (golden zone) 50%-61.8%, pivot points, doji candles, harami setups, and engulfing setups to use ATR indicator for possible trades.
Education
by Anbat
4
Bull Trap vs PullbackWhat Is a Bull Trap? A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses. Bull traps occur when buyers fail to support a rally above a breakout level. Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences. What is a Pullback? A pullback is a temporary reversal in the price action of an asset or security. The duration of a pullback is usually only a few consecutive sessions. A longer pause before the uptrend resumes is generally referred to as consolidation. Pullbacks can provide an entry point for traders looking to enter a position when other technical indicators remain bullish. This may help you decide better! Related Articles: www.investopedia.com www.investopedia.com
TVC:SPXEducation
by Moshkelgosha
6
Why Trend Lines are so important!Yesterday I put my main setup on the Activision Blizzard with SMA 20,50,100,200; Horizontal Ray and the trendlines. Many would see that in the past the price often had support at the range of 89-90 Dollar and would think that the share price would jump again including with the SMA200 support. But with implementing the Trendline-Function by connecting dots of the lower/higher spikes you get a good understanding in what the trend could looks like. This can be drawn in a timeline of a few years, months or days.
NASDAQ:ATVIEducation
by Chrlstlan
Double EMA (DEMA) From ScratchHello, traders! Today we’ll speak about the most trivial, but very useful indicator that’s called DEMA. As you know, moving average is a backbone of 90% complicated indicators. It’s able to give lots of information about the price action. Well, let’s speak about it. The double exponential moving average (DEMA) is a technical indicator introduced by Patrick Mulloy in his January 1994 article "Smoothing Data With Faster Moving Averages" in Technical Analysis of Stocks & Commodities magazine. The DEMA uses two exponential moving averages (EMAs) to eliminate lag, as some traders view lag as a problem. The DEMA is used in a similar way to traditional moving averages (MA), but DEMAs react quicker than traditional MAs. How to use DEMA? -The average helps confirm uptrends when the price is above the average, and helps confirm downtrends when the price is below the average. When the price crosses the average that may signal a trend change. -Indicate areas of support or resistance. -Cross overs of 2 DEMAs. We sometimes draw fast DEMA(20) and slow DEMA(50). When the fast line crosses the slow below, it’s a bearish signal, when above - bullish. It’s consider to be a good entering signal. However, we shouldn’t forget that the indicator is still lagging. Guys, I should remember you that every indicator shouldn’t be used in solo. You should only use them in conjunction with other indictor when they confirm each other. I hope, this knowledge will boost your trading skills and make your trading staff more interesting and profitable. Have a nice day, dear traders.
Education
by Skyrexio
1
3 Steps Of A Trade (Step #3 Exit Order)Forex Exit Strategies: Tricks on Setting Limit Orders: Forex exit strategies and exiting a trading position at the right time and price is arguably more important than your entry order. Because only when you exit, you lock in and confirm your profit. Choose the best currency pairs and the best times to trade.Today, let’s talk about getting out, WITH profit. By paying attention to a small trick when setting limit exit orders in your long-term trades. There are many ways to calculate your Forex exit strategies. They highly depend on your trading time frame, your account’s margin and on the market sentiment in general.Identifying Limit orders or Profit Taking Levels is one of them. These are the areas you calculate to get out of your position and manage your Forex exit strategies when the market prices reach your target. Limit Orders Traders usually use market orders to exit trades with a big profit. If you use a limit order while you are going long, then your limit order will be higher than the market price.On the other hand, if you go short with a limit order, then your limit order will be below the market price. Imagine a limit order like a finish line. Your trades will be directly closed every time the market price crosses your limit orders. Put bull exit orders below obvious psychological round numbers (ex: 1.50000, etc...) and above bearish psychological numbers, support and resistance areas. Most of time big banks on purpose do not go to these areas knowingly that a lot of traders are TRAPPED in these areas.
Education
by Anbat
Bitcoin: Multiple time frame analysisWhat is your favorite time frame? When you finally decide on your preferred time frame, that’s when the fun begins! SHORT-TERM (SWING) PERSPECTIVE: "Earning assets with trades. Looking to sell near the top to buy near the bottom.". Short-term traders use hourly time frames and hold trades for several hours to a week. ADVANTAGE: More opportunities for trades. Less chance of losing months. DIFFICULT: HARD - The smaller the time frame, the greater the difficulty. Study the market daily and be prepared for the worst. MEDIUM-TERM Mix of shorts and longs. It's my favorite. LONG-TERM Trades usually from a few weeks to many months, sometimes years. PERSPECTIVE: "Buy and to forget and when it falls, buy more." ADVANTAGE: Don’t have to watch the markets intraday.Fewer transactions mean fewer times to pay the spread. More time to think through each trade. DIFFICULT: EASY - With cash in reserve to take advantage of opportunities, it's easy.
Education
by RNiedson
1
Pivot Point StrategyIf you are scalping or day trading and use time frames under 4 hour, 1 hour, 15 minutes- then try this all pivot point strategy for one week. Example chart is on a one hour time frame of GBPCAD. Add: Daily pivot points (RED line on chart) Weekly pivot points (WHITE line on chart) & Monthly pivot points (BLUE line on chart) on your charts only (three sets of pivot points). You can add trend lines, Elliot waves, fib ret etc... as needed overlaying charts when you are trading. You could have had an easy three trades (two sells and one buy) on Fridays price action related to this pivot point strategy. Rules: if price action has stopped by one of these pivot points, set up either a breakout trade, or reversal of trend trade if an Harami, Engulfing or Pinbar pattern presents its self. Trading the pivot point strategy is great in-between Tokyo end of session to London end of session (12 hours). If two pivot point lines are close: like daily and weekly this area is stronger and harder for price action to break thru, if a weekly and monthly are close together this area is very strong and hard for PA to get thru. Look what happened on chart example with price action around daily, weekly and monthly pivot points--- you can trade only these when scalping or day trading, please do some back testing on this... you will be very surprised by the positive results.
Education
by Anbat
Support zone instead of simple support (Bitcoin fake breakouts)Sometimes just a simple line is not working and this is the time that zone gets its meaning. so instead of using so many lines, we can use <> and create some support and resistance zones instead of simple support and resistance. here take look at the Bitcoin example in previous weeks: But let's take look at the 30K support zone instead of the 30K support: and let's take look at Forex and the same scenario: here take look at the USDCAD example in the previous month: But let's take look at the 1.2060 support zone instead of the 1.2060 support: <<👍hope you enjoy👍 >>
BITSTAMP:BTCUSDEducation
by MMBTtrader
38
What is Rounding Bottom Pattern?What is Rounding Bottom Pattern? Round bottom can be identified when the price changes graphically form the shape of a "U" on charts. It is also called a saucer bottom pattern. It shows potential reversal in price movements. It shows a very slow and gradual turn from down to sideways to up. The longer it stays the longer the more possibility it gives for reversal. How does Rounding Bottom Pattern Work? Rounding Bottom Pattern can be divided into three phases: 1. Declining Phase The decline phase indicates the excessive supply which leads to the price decline. 2. Sideways Phase After the excessive supply and price decline their is nor demand or supply. Which leads to sideways phase. Usually the prices in this phase will trade flat which means price movement will be very less here with the volume. 3. Recovering Phase Here in Recovering phase demand start to rise again. Due to excessive demand the price starts to recover. Above Chart Example: Here you can see the Bitcoin chart at 1 Day Time frame. It is forming the same Rounding Bottom Pattern. You can see the price price declining in the first phase of the pattern with good volumes. After that we can also see the sideways phase where the price did not move much. And finally last phase the prices start to recover again. Here traders can enter in long position after the prices breakout the resistance. Conclusion: Hence, Rounding Bottom Pattern is a rare long term reversal pattern to identify the end of a downtrend and the beginning of a potential uptrend. Disclaimer: This is just an educational post never trade just any pattern. And please do your research before taking any trades.
Education
by Coinlog
3
End Of Tokyo 2 End Of London (12 hours)During these 12 hours per day are the highest liquidity and volume during the day, trading Forex. Why? Encompassing Tokyo/London overlap session then only London session then finally London/NY session overlap. If you are day trading or scalping, these 12 hours are best for doing both. Use highest ADR pairs with either Gbp or Eur pairs, you should be able to with right risk management and set ups make piece of pip pie (or make a profit), on one to five trades depending on your strategy and trading edge. On attached 15 minute chart you see up to 70 pips in bullish move during this high liquidity and volume move. Times noted are PST/USA times so please convert to local times. Keeping trading simple with price action always #1, then using maybe daily pivot points, session indicator and alligator- will lead to success. Yellow lines are 4 hour divide lines and peach lines are noting the 9 pm to 9 am (12 hour) period which has high of both liquidity and volume. If you do day trade, think about trading from main daily pivot point or (PP) to either S1 or R1 every day only, this will give you a very high win rate %, please back check. (noted on chart is main (P) pivot point (RED line) to resistance R1 (WHITE line)- would give you a 1:3 or more risk reward set up with 20 pip stop vs 70 pip target... with right risk management on this one trade and with trailing stop.
Education
by Anbat
How to trade based on a Multi-Timeframe Analysis?Good morning, traders! Today we will do an explanatory post on how a Multi-Timeframe Analysis (Weekly-Daily-4H) can be used to take a trade. The benefit of this is that we will be trading taking into account the short, medium, and long-term behavior of the price, which gives us a higher success rate. Many times, we take a trade focusing only on one timeframe, and we are missing relevant information of higher temporalities, such as areas that we are not seeing. Let's see how it would look in practice: 🔸The first thing is to start with the chart with the higher temporality, in this case, the Weekly: - We see here that the price is in a range and bouncing in the support zone where a strong bullish momentum was previously generated. This gives us a first bullish hint. 🔸Then, in the Daily chart (published), we see that the price bounces off the previously marked zone and breaks the downtrend channel. This is the second bullish sign. - In addition, in this chart, we proceed to mark the potential targets of the movement. 🔸Finally, in the 4H chart is where we will look for our entry into the market: - After the break of the bearish channel, the price begins a corrective process at the edge of the trend line. When the breakout of this structure happens, the optimal thing is to place an income above the last lower high of the structure to avoid potential fakeouts.
Education
by ThinkingAntsOk
6
What is Inverse Head and Shoulders Pattern?Inverse Head and shoulders Pattern is the mirror image of head and shoulders pattern. Read about Head and Shoulder Pattern here: Inverse H&S Pattern is bullish reversal pattern. Signals the traders to enter into long position above the neckline. Volume play a major role in both H&S and Inverse H&S Patterns. Usually the spike in volume on breakout is considered as a great signal for bullish entry. Again a suitable target can be obtained by measuring the distance between head and neckline of the pattern and using same distance to project the target . After the neckline breakout there is also a probability that prices can be retrace again to neckline due to lack of demand . Prices can only rise if again there is more demand which will lead to bullish uptrend. Also if the neckline slopes slightly upward that is the sign of greater market strength thus gives further conformation to go bullish on Inverse H&S Patter . Let us know what do you think about Inverse H&S Pattern? Please comment your views/doubts! As always nothing works every time in markets. Please do your research before taking any position. This is only for Educational Purpose. We are covering all Major Reversal and continuation patterns in this series. Follow to get updated with all the informative and educational trading ideas. Next Pattern we will cover: Round Bottom Pattern PS: We are publishing this again for global audience.
COINBASE:BTCUSDEducation
by Coinlog
Free public indicator helps free user. ---> The screenshot was ETH Perp, 1H, from 28th June to 13th of July. a) First, limited access to indicator for free users. Sorry for being poor, but I have to resort to this. Some videos in youtube shows how you can click the same indicator multiple times, in order to utilize them to read the chart. Like adding multiple EMA from public library. But doing that actually take two slot of your free indicator slot. So, as poor as I sounds, there is free public indicator that combine or have multiple indicator in them. Like the one in my screenshot, I used the multiple EMA + bollinger bands included. I do think I need to adjust the BB, but I still don't understand which values is the best, so I stick with the current one. This saves me EMA + EMA + EMA + BB = 4 slot already! As I prefer to be able to tell something from just looking at the chart directly, so my design is all three free indicator slot is viewable, but need to be quite transparent and distinguishable too. Sometimes the free public indicator can be save as another template with different colors and designs, I just stick to Save as default. b) Some free indicator is good! Yes, there is no truly one indicator for all, but this Magic Lines VWAP / FOR SALE indicator is to me, is awesome. I previously used MACD to read incoming uptrend or downtrend, because I watched the youtube tries 100x MACD and seeing the winning rate is awesome, I stuck with MACD all the time. Until the market rekt me. Oh, this lagging indicator is truly live up it's name eh? So, I explore multiple public ones after heard the VWAP concept. It's too bad if you think VWAP is for smaller time frames, but if there is VWAP for ALL time frames, that is awesome. So, as from the screenshot, that MAGIC LINES VWAP is already edited just to show, i- blue flexible lines is showing uptrend. A VWAP uptrend. As VWAP basically didn't change it's shape at all, this is great. ii- pink flexible lines that connected with the blue line show downtrend. Also a VWAP downtrend. iii- the blue plusses or pink plusses indicated "the best starting" entry for either long or short. So form that free indicator alone, instead of me waiting for MACD crossing, VWAP just directly shows me this stuff already. Even this is also good for swing trade. (Oh how I envy the ChartChampion thousands of precentage win). Yes, there is an option just by using the heikin ashi candle, it's also serve the same uptrend and downtrend. But you know right heikin ashi is just cosmetic right? Just an average ones right? (Sorry bad puns, I'll get myself out after finishing this). c) The free MAGIC VWAP combines with EMAs crossing, it helps to read the chart. i- Usually, when EMAs are under 200 EMA, it is downtrend. I purposely make 200 EMA as an area instead of line is too always easily read at a glance whether we are in downtrend or uptrend. As long EMA 7 and 20 still inside the 200 area, it's still going down. The further the downtrend it is. The closer, we can see the reversal thing, but wait the market to decide this. ii- There is one youtuber video about riding the EMA lines, I can't remember. Say, on July 8th in screenshot, you enter at that point, how do you know it's time to stop? You ride the EMA until it cross itself (the 7 and 20 ones). Remember, riding the wave we get you pullback/retracement, so don't close your position too early, be patient and be calm. When to stop? I'm not an expert about this, to me either you satisfy with your percentage or crossing appears. Oh, before I forget, always and ALWAYS draw your 4H current resistance and support. The outermost range. The mini ones like in the screenshot is any resistance or support that happens between the outermost 4h resistance and support range. Make sure to touch as many as you can form the candle open/close and extend that range to the longest wick/shadow. d) Bollinger band and Volume profile. I'm still learning about this, but my prediction from this screenshot is the candle will come to the middle BB, and later going downtrend back. And there is a free Volume profile indicator. (Oh how I wish I got money even for the Pro plan. Hmmmmm....) Volume profile is interesting. Free indicator didn't show whether buying pressure is higher or selling pressure is higher, but we can decipher is the trend is still going down or up. The highest in volume profile shows the current support or resistance range there. The key level/daily level or whatnot is got from youtube. Still I cannot afford their best membership, it's just I'm trying to decipher the mentality the intelligence the psychology that they have. Maybe discovering there is free indicator that can help free user too. Definitely joined after I can afford. To conclude, TradingView is the best! And I'm sorry for my English. Writing this piece is meant to help me remember because sometimes I forgot what some indicators do and to inspire or help other free user out there. It's not one month free trial is bad, just it's not enough. And I think if I want to use that free trial, it's when I really really needs to. Don't you think it's tiring to create multiple emails just to get the free stuff? Nope. I don't like that idea. If I can afford it, I will do it. It helps support this free service that I love too. Thank you so much for your time, you understanding of this, thank you very much for coming to my Ted-TradingView-Talk. .
BINANCE:ETHUSD.PEducation
by m2mdoh
2
UsdCad (Day Trading Hourly Setup) All setups should have at least a 1:2 Risk and Reward set up. With UsdCad trading you should trade only during London NY overlap and/or just NY- why? related to high liquidity and volume at that time. Questions to ask yourself when trading UsdCad are: 1) What does monthly, weekly, daily and 4 hour charts look like? 2) Any moderate to major news events? fundamental... 3) is DXY strong or weak? 4) is OIL strong or weak? 5) Where is price action on daily time frame concerning the Master Forex pattern? 6) is price action breaking support and or resistance areas? Asia ranges a lot. 7) any chart patterns? pinbars, inside bar or engulfing showing up on trading chart? Note: If you trade Sydney session: AUD, NZD best pairs If you trade Tokyo session: JPY best pairs If you trade London session: GBP, EUR, CHF best pairs If you trade NY session: USD, CAD best pairs, plus OIL, GOLD
Education
by Anbat
3 FX Candlestick Patterns (To Increase Profits)Understanding the hidden meaning behind FX candlesticks is paramount if you intend to become consistently profitable. 1) The Pin Bar (reversal or continuation candlestick pattern)- The pin bar is my favorite of the three. These patterns consist of the following characteristics. *Tail, which should be at least two-thirds of the entire candle *The body, which is the space between the open and close (the color is irrelevant when distinguishing between bullish and bearish patterns) *The nose, which is the much smaller wick on the opposite side as the tail While pin bars can form anywhere on a chart, the best and most effective formations occur at key support or resistance. 2) The Inside Bar (continuation candlestick pattern)- Although a bit trickier to trade than the pin bar, the inside bar can be an excellent continuation signal if it forms within the right context. *Hence its name, the range (low to high) should be completely inside of the mother bar, which is the larger of the two candles *What makes the inside bar bullish or bearish is not how it forms but rather where it forms with respect to the current trend *The color of the inside bar (bullish or bearish) does not matter The bullishness or bearishness of the inside bar comes from direction of the established trend, not whether the inside bar itself is bullish or bearish. 3) The Engulfing Bar (reversal candlestick pattern)- Last but not least are the bullish and bearish engulfing patterns. Here's what you need to know: *The range (high to low) of the engulfing bar must completely surround or engulf the range of the previous candle to be deemed valid *To be effective, a bullish engulfing bar must form at a swing low while the bearish engulfing bar must occur at a swing high Always remember that the bullish and bearish engulfing patterns must form at a swing low or swing high respectively or pattern should not be traded.
Education
by Anbat