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Support and Resistance

Pulse of an Asset via Fibonacci: BTC at ATH Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili, 1 Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
COINBASE:BTCUSDEducation
by EuroMotif
9
How to Understand Price StructureI have put together the basics of how to read a chart without indicators. This is a key skill for anyone who wants to become a profitable trader. Clearly theres much more that goes into reading charts than just what is here but this is the key foundations of reading how price works and how to make trade entries with a good chance of profitability. If you have found it helpful then please Like the post / Share it with anyone you think it might help / Follow my profile so you get updated the next time I post
Education
by JoelWarby
74
Basics of Chart reading and drawing support/resistances lines. Hey guys, I had people ask me how to draw support and resistance lines and also the basics of just reading a stock chart. Always work your way from outside to inside. You want to see the whole picture and not trade in a vacuum. Some people call it supply and demand zone. When I started day trading and swing trading, I started out with drawing out these lines. This is part of technical analysis. Trust me, this is one skill you will want to have and it can be very profitable if you find the right stock ticker to swing trade. I can it rinse and repeat. If you do it right, you can actually make someone's yearly pay check or even yours. So usually I would record off my Ipad but it makes so much time to edit and upload to facebook. I'll just try this on tradingview and post on Youtube for my friends who are interested in learning the basics. If the quality of this sucks, I will use my iPad next time with cartoon Me and post on YouTube. Posting on FB takes way too long. Next time, I will go over the basics on how RSI, Simple moving averages (SMA), and Exponential Moving Averages (EMA) works. How to read them on a chart to see if the stock is on an uptrend or downtrend. This will eliminate FOMO. Enjoy.
NYSE:FSLYEducation
by FMD70
Inflation Coming? Gold About to Enter Bear Market! $1690 is critical for gold to hold. Should it close below that level (marked by the Red Indicator line), we will think of shorting gold. --- How to understand price action. It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand. You can also think of these indicators as moving pivot points . MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade. The Blue indicator line serves as a Bullish Trend setter. If your instrument closes above the Blue line, we think about going Long (buying). For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling). For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts). A stock has to close below the Yellow line first, then rally towards the Red line and top out there. This is where I would short it. Be sure to hit that Follow button! Please find me on social networks via the link on my profile page for more ideas from @MasterCharts!
FX:XAUUSDEducation
by mastercharts
4
Why S and R works so good - Spring & Upthrust WyckoffWelcome Traders to a new Educational Posts. Today we will have a deeper look at Support and Resistance. One of the most popular chart techniques out there, but the question?! Do they really work? Absolutely YES. But probably not like most of the traders think they do. That simple Break and Retest Strategy. NOOO! I would like to introduce you to the extended version of Support Resistance. The Wyckoff Spring and Upthrust. Wyckoff Spring and Upthrust In other words they are simply the Fake Outs at Support and Resistance Levels. The idea behind it is to get an entry exactly there where most of the trader will put their SL. -> WHY?! because of the LIQUIDITY The whole market is based on Liquidity (Supply Demand). The bigger fish will always win. Those who have the bigger amount will always dominate here. Just FACTS . So how do you want to position yourself in the market. Exactly there were 95% of the Retail Traders will put there SL? Or do you want to change your perception on how you view the market. This will completely change your view on the Forex Market. Supply Demand What I also do is I use my own style of Supply Demand to identify exactly those areas where most of the trader will put there SL and I will place exactly my Entry there with a very tight SL to get bigger Risk Reward. Of course I will not have that much of valid entries for my setups as they do not occur as often as Support Resistance Setups but the Total Risk Reward is a complete new Level. WHY? Example Upthrust Because you are rocking the market with the market movers. You are always clearing with these entries both sides. #1 Sellers at Resistance because of Upthrust #2 Breakout Trader(buy) because of Upthrust Sell is the right decision in this case but most of the Traders will lose that Trade due to SL hit. Everybody is placing the Entry and SL different but the majority is losing this trade. Spring Example This was the bigger manipulation as the price did a strong move to the downside through the level of Support. This level was a very interesting level for Retail Traders to buy. Doji occured for Price Action Confirmation but the price dropped down to the level of Demand. Why? -> Liquidity. All SL were located there so Market Movers had there buy limit order placed exactly there. Conclusion With this Post I do not want to judge Retail Traders using Support Resistance. Maybe you found a nice Strategy with that and you are profitable. I am also using Support Resistance but simply in a different way as you can see. I just wanted to share with you my thoughts behind Support Resistance and how I use them to be profitable Please leave a LIKE if you found this Post useful and share your thoughts below!
Education
by DariusFxTrading
3
Bitcoin - Bearish Engulfing Pattern Definition and TacticsWhat is a Bearish Engulfing Pattern? A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle). KEY TAKEAWAYS - A bearish engulfing pattern can occur anywhere, but it is more significant if it occurs after a price advance. This could be an uptrend or a pullback to the upside with a larger downtrend. - Ideally, both candles are of substantial size relative to the price bars around them. Two very small bars may create an engulfing pattern, but it is far less significant than if both candles are large. - The real body—the difference between the open and close price—of the candlesticks is what matters. The real body of the down candle must engulf the up candle. - The pattern has far less significance in choppy markets. What Does the Bearish Engulfing Pattern Tell You? A bearish engulfing pattern is seen at the end of some upward price moves. It is marked by the first candle of upward momentum being overtaken, or engulfed, by a larger second candle indicating a shift toward lower prices. The pattern has greater reliability when the open price of the engulfing candle is well above the close of the first candle, and when the close of the engulfing candle is well below the open of the first candle. A much larger down candle shows more strength than if the down candle is only slightly larger than the up candle. The pattern is also more reliable when it follows a clean move higher. If the price action is choppy or ranging, many engulfing patterns will occur but they are unlikely to result in major price moves since the overall price trend is choppy or ranging. Before acting on the pattern, traders typically wait for the second candle to close, and then take action on the following candle. Actions include selling a long position once a bearish engulfing pattern occurs, or potentially entering a short position. If entering a new short position, a stop loss can be placed above the high of the two-bar pattern. Astute traders consider the overall picture when utilizing bearish engulfing patterns. For example, taking a short trade may not be wise if the uptrend is very strong. Even the formation of a bearish engulfing pattern may not be enough to halt the advance for long. Yet, if the overall trend is down, and the price has just seen a pullback to the upside, a bearish engulfing pattern may provide a good shorting opportunity since the trade aligns with the longer-term downtrend. Limitations of Using a Bearish Engulfing Pattern Engulfing patterns are most useful following a clean upward price move as the pattern clearly shows the shift in momentum to the downside. If the price action is choppy, even if the price is rising overall, the significance of the engulfing pattern is diminished since it is a fairly common signal. The engulfing or second candle may also be huge. This can leave a trader with a very large stop loss if they opt to trade the pattern. The potential reward from the trade may not justify the risk. Establishing the potential reward can also be difficult with engulfing patterns, as candlesticks don't provide a price target. Instead, traders will need to use other methods, such as indicators or trend analysis, for selecting a price target or determining when to get out of a profitable trade.
BITSTAMP:BTCUSDEducation
by Yuriy_Bishko
33
My success with GMA +500% by TA.At the end of August 2020, I saw that the GME price touched its historical low (the lower red horizontal line). At the same time, the "Diamond" reversal model was formed. The breakout of the" Diamond " up on 31/Aug/2020 confirmed the reversal from the downtrend to the uptrend. Next, I used the old-school tactic of "Measured movement" according to D. Schwager - according to which each new wave of growth is equal to or slightly greater than the previous one. And each new wave of falling is equal to or slightly less than the previous one. And this "Measured Movement" clearly bounced off the support line of the new trend (the purple line). This allowed me to surf both long and short until mid-January 2021. Then the growth became threatening, I closed GME and took a profit of about +500%.
NYSE:GMEEducation
by Dr_Chester
8
Auction Market Theory + Supply and Demand ETHUSDI have tried to move away from indicator based trading into more fact based TA and would like to breakdown how to use this form of analysis with just candlesticks and volume. This is a larger time frame breakdown though similar patterns can be identified (though significantly more volatility prone) in smaller time frames and one can find that these principles explain moves across many markets. What's interesting with Ethereum is the similarities to precious metals. The demand has no specified cap while the supply is limited. Using supply as a constant and demand as dependent variable paired with a basic understanding of auction market theory, each move in an asset can be analyzed. I only chose ETHUSD due to the rising buzz around cryptocurrency. There are 3 main discussion points in this post They are numbered on the chart in order and the numbers will also be used to tie them to their principle. 1. Aggression: Who is currently more aggressive in the market? Buyer or sellers? Aggression in markets simply is the continued buying or selling at higher or lower prices respectively, causing rapid fluctuations. I try to mark the more significant areas of aggression as they often have more importance in the broader scheme of things. For ETHUSD, in 2021, we have seen tons of buyer aggression causing large breakouts, often followed by selling aggression after new highs are created. These types of moves can not be predicted, nor can we establish how long they will carry on, though after the fact they are of upmost importance. For reference, (1), (2), (4), (5), (6) are all areas of aggression I identified on this chart. To identify these I look for volume that is relatively higher than usual as this shows the increase of interaction between buyers and sellers. I then find the bias which is simple on a candle chart- red or green. Typically with larger aggressive moves there is a scenario that occurs referred to as imbalance. An imbalance is formed when buyers raise the bid or sellers lower the ask quickly creating larger fluctuations in prices. These imbalances are often POI's during a retrace. 2. Absorption: Absorption is when there is a large group of resting limit buy or sell orders that temporarily or fully halt selling or buying action. This information can be accessed in real time with level 2 data in the stock market though I'm not to sure how to identify them best real time in the cryptocurrency market as it is decentralized. Though absorption isn't dependent on aggression, it can easily be identified when there is an aggressive party in the market. First, the assumption must be made that prices with downward/upward momentum will continue in the same direction as long as the majority of the money in the market retains bull or bear bias. Theoretically, one must assume that as long as there is no worthy contest, prices will remain moving to infinity or 0. Second, the study of volume. If there is an obvious directional movement, volume is continuing to increase, and prices are unchanged as buy/sell pressure continues, then it is safe to assume that there is larger amount of limit orders than active/aggressive orders, in a nut shell that is all absorption is. Example- . What happens next is a competition of the buyers or sellers for the best possible prices and trends form in that direction until their position is fully formed, example-(COMP). Absorption areas are often referred to as support and resistance and in a consolidating market these areas are easy to identify. They often creating a mix of limit buyers/sellers along with "market" buyers/sellers resulting from the fact that both of these parties have identified these levels and they both are in agreement that it is a buy/sell zone . If these supports and resistances are broken (typically a result of aggression) those on the sidelines may see a chance to enter the market causing aggression/breakouts, for example- (5). 3. Supply and Demand- Supply and demand is essential for understanding any market and is arguably the biggest influence on price. When it comes to understanding demand in the form of Cryptos or any other asset it is not always easy to identify, as it is all relative. However, as stated earlier we know for a fact that the total supply in my example, ETHUSD, is always going to be capped. Demand on the other hand, is constantly going to be changing. One way demand can be inferred is fundamental analysis, technically if enough people were to say "to the moon" and the unspoken HODL agreement is maintained, price could rise forever as people continue to put money into the market. Another way to find demand is looking at historical price relative to historical volume, find areas where volume was low yet price still pushed higher. This occurs when enough are people are actively buying the asset but there is a majority of people intentionally holding the bag. This is a phenomenon known as a supply crunch and is exclusive to assets with capped supply. As these people continuously buy, the asset's price moves higher in search of absorption or where market participants may want to sell their holdings. As mentioned before, these can be found with time/price based volume studies that for simplicity sake I will refer to as "volume wells" (3A and 3B). More often than not these volume wells a result of ranging markets and come in different sizes depending on the longevity of the consolidation/accumulation period. Tying it Together- Using these three principles to breakdown markets, one can better establish an understanding of price action and envision the market as whole rather than piece by piece. Furthermore, the understanding of how buyers and seller are interacting minimizes the risk when trading. I hope this was helpful and remember, there is no right or wrong way to trade and I intend for this post to be strictly educational. Feel free to leave your thoughts or questions in the comments.
BITSTAMP:ETHUSDEducation
by crawfordpaul
1
How to Identify & Trade Double Tops and Double Bottoms in 2021Hello Traders, Here is some of my Favorite and Most simple Educational Chart Patterns that you should know in 2021. In this Lesson I will Show you how to Identify & Trade These Patterns! These patterns are seen daily in Stocks, Forex and different markets across the Globe. I hope you will find this information educational & informative . Your support is appreciated with a like & Comment Lets dive Right Into it!! What Is Double Top and Bottom? Double top and bottom patterns are chart patterns that occur when the underlying market moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used in technical analysis to explain movements in the Market, and can be used as part of a trading strategy to exploit recurring patterns. KEY TAKEAWAYS A double top has an 'M' shape and indicates a bearish reversal in trend. A double bottom has a 'W' shape and is a signal for a bullish price movement . Understanding Double Tops and Bottoms Double top and bottom patterns typically evolve over a longer period of time, and do not always present an ideal visual of a pattern because the shifts in prices don't necessarily resemble a clear "M" or "W". When reviewing the chart pattern, it is important for traders to note that the peaks and troughs do not have to reach the same points in order for the "M" or "W" pattern to appear. Double top and bottom patterns are formed from consecutive rounding tops and bottoms. These patterns are often used in conjunction with other indicators since rounding patterns in general can easily lead to fakeouts or mistaking reversal trends. Double Top Pattern (M Formation) A double top pattern is formed from two consecutive rounding tops. Rounding tops can often be an indicator for a bearish reversal as they often occur after an extended bullish rally. Double tops will have similar inferences. If a double top occurs, the second rounded top will usually be slightly below the first rounded tops peak indicating resistance and exhaustion. Double tops can be rare occurrences with their formation often indicating that investors are seeking to obtain final profits from a bullish trend. Double tops often lead to a bearish reversal in which traders can profit from selling at the neckline (with confirmation) to form a downtrend. Double Bottom Pattern Double bottom patterns are essentially the opposite of double top patterns. Results from this pattern have the opposite inferences. A double bottom is formed following a single rounding bottom pattern which can also be the first sign of a potential reversal. Rounding bottom patterns will typically occur at the end of an extended bearish trend. The double bottom formation constructed from two consecutive rounding bottoms can also infer that traders are following the Market to capitalize on its last push lower toward a support level. A double bottom will typically indicate a bullish reversal which provides an opportunity for Traders to obtain profits from a bullish rally. After a double bottom, common trading strategies include long positions that will profit from a rising Market price. Limitations of Double Tops and Bottoms Double top and bottom formations are highly effective when identified correctly. However, they can be extremely detrimental when they are interpreted incorrectly. Therefore, one must be extremely careful and patient before jumping to conclusions. For example, there is a significant difference between a double top and one that has failed. A real double top is an extremely bearish technical pattern which can lead to an extremely sharp decline in the market. However, it is essential to be patient and identify the critical support level to confirm a double top's identity. Basing a double top solely on the formation of two consecutive peaks could lead to a false reading and cause an early exit from a position. How to Trade these Patterns Correctly using the information i have given above 1. Identify The Double Top or Double Bottom 2. Wait for the market to break the previous support or previous resistance to confirm this pattern " M or W" ( as show in my chart above) 3. Be Patient & wait for the market to come back to the "Neckline" (Previous support or Previous Resistance) (as shown in the chart above) 4. When the market will reach the "Neckline area aka support/resistance" monitor the "PRICE ACTION" (in the notes on chart) 5. Monitor the PRICE ACTION for a "Change" in the Market Environment "example" ----- (HL/HH,LH/LL). 6. It is Important to monitor the "Price Action" in the neckline area for some confirmation ( Break of structure or Candlestick confirmation) 7. Always wait for proper confirmation ( at least 2-3 different types of confirmation before Entry) 8. Always Use risk Management & Practise Safe trading. 9. Patience is always the Key to Success! 10. Enjoy The profit when you finally get to ride these Patterns :) Thanks for Reading this article, I hope that it was informative and educational As always, If you have any questions / Comment or Concern Please feel free to leave them below. Hope to see you in the next Educational Post! Global Fx Education
TVC:DXYEducation
by Global_Fx
23
How do you trade a consolidating security? Introduction Hello trading view! Today I will be doing an educational post about trading consolidation effectively. There are two methods that I've found that are not only simple, but also self explanatory, and can provide decent returns for everyone who uses them. ============================================================================================================================== Method 1 Long/Short the breakout. Set your target for the nearest resistance and stop-loss below the consolidation resistance. If you have any reason to believe the security will go higher, set your target at the second or third nearest resistance level (or wherever you see fit). ============================================================================================================================== Method 2 Long a retest of the support, short a retest of the resistance. Set your target for the resistance if longing, support if shorting. Stop-loss below the support if longing, above the resistance if shorting. This strategy can be used in conjunction with method 1 to make up for any losses caused by you getting stopped out. *if you get stopped out there has been a breakout, which is when you enter using the first strategy. This can cut any losses you incurred when using the second method and then some. ============================================================================================================================== Final thoughts When combining the two methods above you can always make money off of consolidation (or at least most of the time). Good luck and great trading everyone! I will be posting again soon. *this is not financial advice.
COINBASE:BTCUSDEducation
by NickTheGreatStockTrader
How To Know If A Trend Is Ending? - Take Advantage of ReversalsHi Traders. Today I'm going to discuss about a highly requested topic, how could you stay informed and identify an ending trend/ reversal beforehand? It all begin with do you know how to identify a trend in the first place? It may sound simple, higher highs & higher lows sequence. Referring to the illustration above, believe or not, majority of new traders actually short into these simple continuation pattern thinking that the market is going to reverse anytime based on their FOMO, overthinking behaviour, misuse of candlestick pattern, and lack of knowledge. If you are new to trading, I'd recommend you to avoid mean reversion or reversal setups as most likely you are going to catch falling knives. It's relatively easier for new traders to trade with the trend as reversal trading is something require more experience, understanding of the market, and back-tested strategies. Do get me right, reversal is a highly profitable trading style that I am doing most of the time, but catching the tops & bottoms could be devastating if you're not doing it the right way. I'll pinpoint some common characteristics of exhaustion vs reversal below, Exhaustion/ Continuation pattern - Short in duration - Tight range - Weak pullback compared to the impulse - Respecting static & dynamic support (Eg. EMAs, trendline, S&R, Fibonacci, etc.) - Showing signs of a healthy trend Reversal pattern - Longer duration (Distribution phase) - Wide range - Strong pullback digesting the impulse (Shock the market) - Disrespecting key levels & dynamic support - No sign of a healthy trend One thing to remind yourself, is to avoid finding reversal on the lower timeframe 1m - 15m charts, as there are time where you'd get trapped onto some seemingly healthy pullback on the higher timeframe, but you're treating it like a reversal which the Risk-to-reward ain't going to be great. Constantly practice and train your brain into spotting reversals is the best way to become a better countertrend trader. Keep your chart simple, understand support & resistance first before you jump into any other indicators or complicated strategies. Eg. on an uptrend, simply look for higher highs & lows until the market is not doing so, then you'll be cautious on possible momentum shift. Knowledge, discipline, mindset. " The goal of a successful trader is to make the best trades, money is secondary " - Alexander Elder Trade safe. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
14
Bollinger Bands - Contraception for your Price ActionSo i thought i’d do another educational post, this time on the Bollinger Bands. I’ll try and keep this as a brief introduction to the basics of Bollinger Bands so you can do your own research to fully understand what the indicator is doing and showing, there is no point putting a fancy indicator on your chart if you have no idea what it is showing you. Bollinger Bands measure, Price & Volatility, potential Support and Resistance, & it can also give you a sense of if an asset is Overbought or Oversold, although its best practice to use another indicator to get confirmation of being Oversold or Overbought because the price can walk the Upper and Lower Bands for extended Periods. The Standard Bollinger Bands is composed of a 20-period Simple Moving Average (SMA) which is its Middle Band, it also has an Upper Band & a Lower Band which envelopes the SMA. The outer bands are a +/- 2 Standard Deviation (StdDev) of the 20-period SMA in whatever timeframe you are in. A Simple Moving Average (SMA) is an unweighted average of the Previous 20-period Values in whatever timeframe you are in, so for the 1min chart, the SMA period will be an unweighted average of the previous 20 mins, for the 1hr chart, the SMA period will be an unweighted average of the previous 20 hours, for the Daily chart, the SMA period will be an unweighted average of the Previous 20 days and so on and so on. You are able to change the SMA to any period you want, some trading sites also allow you to change the SMA into an Exponential Moving Average (EMA). Changing the timeframe from the standard 20-period SMA to a faster SMA like a 10-period, will allow faster entry into possible buy & sell points but could be prone to false signals, because of this, most people keep the SMA at the Default of 20-periods to avoid possible false buy/sell signals. You can change the StdDev settings, but you must know what you are doing as you cannot just add any number for shits and giggles, for example, a 20-period SMA is 2 StdDev, a 10-period SMA is 1.5 StdDev and a 50-period SMA is 2.5 StdDev as default. For those interested, & from my understanding of it, the Population Standard Deviation used in the Bollinger Bands system is a measure of the +/- dispersion/variation of the mean or the sum of a collection of values, the values being the 20 periods, so a +/- deviation value away from its Midpoint Basis in whatever timeframe you are in. I won’t go into the calculations because everyone will stop reading & it’ll also hurt my head because i cannot even count. So the + is the Upper Band and the - is the Lower Band. So looking at the Bollinger Bands, we now know that the Middle Band is the basis & the Upper and Lower Bands are +/- Standard Deviations of that Middle Band Basis in whatever timeframe you are in. With Low Volatility, the closer the Upper and Lower Bands are to its Price & Middle Band Basis. The more volatile the Price action is in either direction, the further away the Price will move from its Middle Band and move closer to its Upper or Lower Bands depending on if it’s Bullish or Bearish. Along with the Price, the Upper and Lower Bands will also expand outwards and move away from its Middle Band. With extreme volatility the Price may even wick out or close a candle out of its Upper or Lower Bands. If there has been a period of Volatility which has come to an end, then you will see the Upper and Lower Bands start to contract inwards. You can use the Middle Band as potential Support and Resistance Levels depending on if the Price is above or below it. You can also use the Upper and Lower Bands as potential Resistance Levels, and also as potential entry levels for longs or shorts respectively. The Lower and Upper bands will point outwards and inwards depending on if the Price is contracting or expanding respectively. With normal volatility, if you use the default 20-period SMA & 2 StdDev settings, then the price action will possibly remain within the bands for roughly about 90% of the time. The Price will eventually move back in to the Upper or Lower Bands if there has been a period that the Price has been outside of the Upper or Lower Bands. What is great about the Bollinger Bands is that you can apply it to any chart and timeframe that has enough previous trading data, and use it to get a feel for the assets volatility over time. A key thing to look out for is the Bollinger Bands Squeeze, this happens when you buy latex contraception that’s too tigh……… sorry…… this happens when volatility has slowed & the Upper and Lower Bands contract, envelope and stay close to the Price & Middle Band so essentially Price action is trading sideways within a channel made up of the Lower and Upper Bands. The Bollinger Bands Squeeze Pattern can potentially end in a big breakout upwards or downwards. Bollinger Bands can also be used to see Bullish W-Bottoms or Bearish M-Top signals in the Price. These signals have 4 steps that need to happen for it to be considered valid but i’ll let you do your own research on that. The Price can also walk along the Upper and Lower Bands for an extended period of time depending on if the Price is Bullish or Bearish. It’s best practice to use complementary indicators like Volume, RSI, ADX, STOCH or MACD to try and get confirmation or any potential breakout. I actually use the Bollinger Bands on my charts in conjunction with the Ichimoku Cloud. On a side note, having a grasp of the basics of the original Bollinger Bands crated by John Bollinger is the first step to really understanding it and properly using it to enable you to make wise decisions with your money/investments. If you have an understand of the original Bollinger Bands, then that can help you with understanding other price enveloping indicators like what David ‘WycoffMode’ Ward has created. David has created his own genius take on the Bollinger Bands called Bad Ass Bollinger Bands, which is quite fascinating because it shows multiple +/- Standard Deviations for whatever timeframe you are in. You could potentially use these as multiple Support and Resistance Levels for whatever timeframe you are in and also look for any potential cascading effect from lower to higher timeframes using these multiple +/- StdDev levels, he does state however that to get the best out of it, you have to use it with his Phoenix Ascending indictor, which from what I’ve seen, i think it complements his Bad Ass Bollinger Bands by showing Momentum, Upwards and Downwards Pressure & potential Trend Crossover, this agrees with what i have said above, about using other complimentary indicators with your Bollinger Bands like RSI or MACD. From what I have seen of David’s Bad Ass Bollinger Bands, one of the many benefits of having multiple +/- Standard Deviations, 8 in total, 4+ & 4-, is that you end up with a closer to 95-99% of the Price action staying within the Bollinger Bands for more accuracy. 99% because if there is extreme volatility, that may still cause a Candle Wick to poke its head out. This new indicator is potentially a real game changer. This is just my opinion from what i have seen of it, so i could be completely wrong & David could say it doesn’t mean anything that i've typed and he’s gonna hunt me down for typing complete bollox. Below is a pic to show you the differences between the original Bollinger Bands and the Bad Ass Bollinger Bands. In any case, it’s best practice that when using your charts, you should have a range of indicators to complement each other, an indicator for Momentum, Volatility, Trend, Price, Volume ect. You do not need to add 4 indicators on your chart that show the same thing. If your using RSI then you don’t really need the STOCH, If you’re using MACD then you don’t really need ADX or Parabolic SAR. If you’re interested in learning more about the Ichimoku Cloud System, please click on the below pic which will take you to an educational post i did about it. I hope you have found this brief intro helpful & i hope it encourages you to do your own research to find the best trading strategy for you. Cheers 👍
BINANCE:ADAUSDEducation
by TradingThroughTheLens
6
I LOST 70% OF MY CAPITAL WITH THE SAME MISTAKE => OVERTRADINGHello Traders, today I want show you a point of my live, that I constantly overlooked. I want sensitize you for it and also make me so a reminder for the future! 1. OVERTRADING It's the truth: In the past I lost 70% of my capital with overtrading. If you find yourself there then I would be sensitize you to rethink your approach of trading. On the chart above you can see how I take at the beginning all rules what I learned before: Only 1% of my capital I choose for risk with using StoppLoss Support and Resistance are STOPPLOSS and TAKEPROFIT, depence on trading direction I choose a Takeprofit more then 2 times of my risk => I lost the most time with this rules But the rules are not the problem! The problem was my overtrading. I see only "ONE" signal to take action => then it overcomes to reaction buy, no no, sell... dame, better buy and so on => always if I was in loss I tried to rethink my trade 24/7 hours in front of the screen. 2. SUPPORT AND RESISTANCE: THE WORST ENTRY POINTS EVER, BUT GOOD STOPLOSS AND TAKEPROFIT AREAS Another thing is, that support and resistance areas are good reverse moments. Every greedy trader like I used to be, try to catch the early trade to make more money than anyone can imagine. Then back to reality: you get stopped. The market takes your money and you don't realize why! On this moment, you have your own opinion of the market and this your mistake to believe you are right. You hadn't wait enough! 3. BE PATIENCE - TRADE LATE AND RIGHT THEN EARLY AND WRONG (MULTIPLE) The headline above in point 3. is since my realizing the importast rule. Trade late and right! Because the other thing of trading you can: the right risk, the winning opportunity. Sometimes it helps to look in deeper timeframes, to get enough win-risk-ratio. Hopefully it helps you! Kind regards NXT2017
EUREX:FDXM1!Education
by NXT2017
5
HOW-TO What to look for in the MTP Volume (VS) Trade SetupIn this help Tutorial, we take a look at using the VS or Volume Spike trade setup in the MTPredictor Advanced trade setups script. The Volume Spike or VS setup is designed to find a "fake out" when the market fails to follow though on the break of an important prior swing high or low. The idea is that professional traders look to accumulate a position in the opposite direction to the amateur traders who then get caught as the market moves sharply in the opposite direction. The MTP Decision (DP) script is used to find the level at which the reversal often occurs. Position Sizing is used to keep the losses (and there will always be losing trades) small at -1R (one risk unit), when compared to the potential profit at the target. The profit target for the trade setup is the MTP Decision Point (DP) level from the prior swing pivot. The entry trigger is the MTP coloured reversal bar (available in the MTP Analysis script), blue for a potential buy, red for a potential sell. The VS setup should unfold when the market "fails to follow though" to new highs or lows, after a break of a "prior important high or low", and not from a prior minor swing in the same direction. Ideally this should unfold when the MTP Trend colour is in agreement, ie Grey, to show that the larger degree trend is in the process of making a reversal. Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.
Education
by MTPredictor