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Support and Resistance

Two MAs, One Ribbon: A Smarter Way to Trade TrendsSome indicators aim to simplify. Others aim to clarify. The RedK Magic Ribbon does both, offering a clean, color-coded visualization of trend strength and agreement between two custom moving averages. Built by RedKTrader , this tool is ideal for traders who want to stay aligned with the trend and avoid the noise. Let’s break down how it works, how we use it at Xuantify, and how it can enhance your trend-following setups. 🔍 What Is the RedK Magic Ribbon? This indicator combines two custom moving averages: CoRa Wave – A fast, Compound Ratio Weighted Average RSS_WMA (LazyLine) – A slow, Smooth Weighted MA When both lines agree on direction, the ribbon fills with: Green – Bullish trend Red – Bearish trend Gray – No-trade zone (disagreement or consolidation) Key Features: Visual trend confirmation No-trade zones clearly marked Customizable smoothing and length Works on any timeframe 🧠 How We Use It at Xuantify We use the Magic Ribbon as a trend filter and visual guide . 1. Trend Confirmation We only trade in the direction of the ribbon fill. Gray zones = no trades. 2. Entry Timing We enter near the RSS_WMA (LazyLine) for optimal risk-reward. It also acts as a dynamic stop-loss guide. 🎨 Visual Cues That Matter Green Fill – Trend is up, both MAs agree Red Fill – Trend is down, both MAs agree Gray Fill – No-trade zone, MAs disagree This makes it easy to: Avoid choppy markets Stay aligned with the dominant trend Spot early trend shifts ⚙️ Settings That Matter Adjust CoRa Wave length and smoothness Tune RSS_WMA to track price with minimal lag Customize colors, line widths, and visibility 🧩 Best Combinations with This Indicator We pair the Magic Ribbon with: Structure Tools – BOS/CHOCH for 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 confirmation tool , not a signal generator. Use it with structure and price action. Always backtest and adjust settings to your asset and timeframe. 🚀 Final Thoughts If you want a clean, intuitive way to stay on the right side of the trend, the RedK Magic Ribbon is a powerful visual ally. It helps you avoid indecision and focus on high-probability setups. What really sets the Magic Ribbon apart is the precision of its fast line—the CoRa Wave. It reacts swiftly to price action and often aligns almost perfectly with pivot reversals. This responsiveness allows traders to spot potential turning points early, giving them a valuable edge in timing entries or exits. Its accuracy in identifying momentum shifts makes it not just a trend filter, but a powerful tool for anticipating market moves with confidence. Try it, tweak it, and let the ribbon guide your trades.
Education
by Xuantify
Learn Best Candlestick Pattern For Trend Trading Gold XAUUSD This secret pattern will change the way you trade Gold XAUUSD. If you study technical analysis in Gold trading, there is one unique candlestick pattern that you absolutely need to know. In this article, you will learn the structure and the meaning of one of the most accurate candlesticks in Gold trading. I will teach you how to recognize this pattern and how to trade it for maximum profits. Let's start with some theory and let me show you how this candlestick pattern looks. This candlestick pattern is called inside bar. It is based on a combination of at least 3 candles. The first candlestick in a sequence should be a strong bullish or bearish candle. The consequent candles should strictly close within its range. If at least 2 candles close within the range of the first candle with its bodies, that will be a valid inside bar. The first candle will always be called the mother's bar , while the following candles will be called the inside bars. That's a perfect example of the inside bar pattern on Gold XAUUSD chart on a daily. This pattern is based on 2 important elements that you should always pay close attention to. The upper boundary of the range of the mother's bar will compose a significant resistance that will provide a safe place to sell. While the lower boundary of the range of the mother's bar will be a strong support to buy Gold from. Look how nicely Gold price respected the resistance of the range, dropped to its support and started to grow then. Once you identified the inside bar, you can easily trade it within the range. However, I strictly recommend waiting for a confirmation signal before you place a trade. One of the proven confirmations is a price action signal on lower time frames. In the example above, Gold formed a bullish chart pattern - double bottom after a test of a support and a bearish pattern - head and shoulders after a test of a resistance. Remember that the market can not stay within the range of the inside bar candlestick pattern forever. Bullish violation and a candle close above the range will be a strong signal to buy Gold. While, a bearish breakout of its range will provide a strong bearish confirmation. That's how a breakout of the underlined resistance triggered a strong rally on Gold. Inside bar is the essential pattern both for the gold swing traders and day traders. This pattern provides a lot of profitable trading opportunities, being very simple to recognize. ❤️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
5
Unlocking Market Cycles with the RSI Cyclic Smoothed IndicatorIntro In the world of technical analysis, the Relative Strength Index (RSI) is established. However, the RSI Cyclic Smoothed indicator takes this classic tool to the next level by incorporating cyclic smoothing and dynamic bands. This post will explore the features, configuration, and practical applications of this powerful indicator. What is the RSI Cyclic Smoothed Indicator ? The RSI Cyclic Smoothed indicator is an advanced version of the traditional RSI. It enhances the classic RSI by adding cyclic smoothing and cyclic memory, allowing it to better adapt to market cycles and provide more accurate signals. Dynamic Bands One of the standout features of the RSI Cyclic Smoothed indicator is its dynamic bands. These bands adjust automatically to the asset’s cyclical levels, providing clearer signals in varying market conditions. The adaptive upper and lower bands help traders avoid whipsaw trades and identify overbought and oversold conditions more effectively. What kind of indicator is it ? The RSI Cyclic Smoothed indicator falls into the category of oscillators. Oscillators are technical analysis tools that vary over time within a banded range, typically used to identify overbought and oversold conditions. Leading or Lagging ? The RSI Cyclic Smoothed indicator is primarily a lagging indicator. It smooths the RSI data to reduce noise and provide more reliable signals, but it does not predict future price movements. Key Features Cyclic Smoothing: Reduces noise and enhances signal accuracy. Dynamic Bands: Adaptive upper and lower bands that adjust to market cycles. Cyclic Memory: Uses the dominant cycle length to optimize signal accuracy. Benefits Compared to Normal RSI Enhanced Signal Accuracy: The cyclic smoothing reduces noise and false signals, providing more reliable trading signals. Adaptability to Market Cycles: The cyclic memory allows the indicator to adapt to the dominant market cycle, making it more responsive to cyclical changes. Dynamic Bands: Unlike the fixed levels in normal RSI, the dynamic bands adjust to market conditions, offering better identification of overbought and oversold levels. Reduced Whipsaw Trades: The smoothing process helps avoid the frequent false signals that can occur with the normal RSI, especially in volatile markets. Indicator Configuration Configuring the RSI Cyclic Smoothed indicator involves setting the dominant cycle length and adjusting the smoothing parameters. The key parameters include: Dominant Cycle Length: Defines the duration of the dominant market cycle. Smoothing Factor: Reduces fluctuations and noise. Cyclic Memory: Stores the indicator’s history to calculate dynamic reference levels. Ideal settings vary based on market conditions, but a common approach is to start with a dominant cycle length that matches the asset’s typical cycle and adjust the smoothing factor to balance responsiveness and noise reduction. Enhancing Signal Accuracy with a Trend Indicator To enhance the accuracy of signals generated by the RSI Cyclic Smoothed indicator, it can be used in conjunction with trend indicators. Examples of trend indicators include: 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. ADX: Average Directional Index measures the strength of a trend. Combining these tools helps confirm signals and reduce false positives. MTF Chart Setup Below is an example chart showcasing the RSI Cyclic Smoothed indicator in action. The chart highlights trading signals where the signal line crosses above or below the adaptive bands, providing clear entry and exit points. Below are the 1H, 2H and 4H overbought aligned. Alternatives While the RSI Cyclic Smoothed indicator is powerful, there are other alternatives that also focus on overbought and oversold conditions: Stochastic Oscillator: This indicator measures the level of the closing price relative to the range of prices over a certain period. It identifies overbought and oversold conditions with key levels below 20 (oversold) and above 80 (overbought). Williams %R: Similar to the Stochastic Oscillator, Williams %R compares the closing price to the high-low range over a specified period. It indicates overbought conditions above -20 and oversold conditions below -80. CCI (Commodity Channel Index): The CCI measures the deviation of the price from its average price over a given period. It identifies overbought conditions above +100 and oversold conditions below -100. Bollinger Bands: While not an oscillator, Bollinger Bands can be used to identify overbought and oversold conditions when the price touches the upper or lower band. Additional Insights The RSI Cyclic Smoothed indicator is highly responsive to market moves and can be fine-tuned to match the dominant cycle of the asset being analysed. For more in-depth information, refer to Chapter 4 of "Decoding the Hidden Market Rhythm, Part 1". Practical Tips Combine with Trend Indicators: Use the RSI Cyclic Smoothed indicator alongside trend indicators to confirm signals. Adjust Cyclic Parameters: Fine-tune the cyclic parameters to match the market conditions and dominant cycle. Monitor Dynamic Bands: Pay close attention to the adaptive bands for overbought and oversold signals. Backtest Thoroughly: Before using the indicator in live trading, backtest it on historical data to understand its performance and adjust settings accordingly. Stay Updated: Market conditions change, so periodically review and adjust the indicator settings to ensure they remain optimal. Which Securities Does This Apply For? The RSI Cyclic Smoothed indicator can be applied to a wide range of securities, including: Stocks: Useful for identifying cyclical patterns and overbought/oversold conditions in individual stocks. ETFs: Effective for analyzing exchange-traded funds, especially those tracking cyclical sectors. Forex: Valuable for currency pairs, helping traders identify market cycles and potential reversals. Commodities: Applicable to commodities like gold, oil, and agricultural products, where cyclical movements are common. Cryptocurrencies: Can be used to analyze digital assets, providing insights into cyclical trends and volatility. Conclusion The RSI Cyclic Smoothed indicator is a powerful tool for traders looking to enhance their technical analysis. By incorporating cyclic smoothing and dynamic bands, it provides clearer and more accurate signals, helping traders navigate complex market cycles.
Education
by Xuantify
4
What is Opening Range Breakout (ORB)Hello mates today i want to share an Educational post about Opening range breakout a very common and old strategy used by many traders and it's still pretty effective. I hope you will read the complete post and like my publication too friends. So let's understand about Opening Range Breakout below-:: ⚡Introduction to Opening Range Breakout-:: In the world of trading timing can be everything. One of the strategies that traders use to capitalize on market movements at the start of the trading day is the Opening Range Breakout (ORB). This technique is particularly popular among day traders because it leverages the market's early volatility to make quick profits. In this article we'll dive deep into what ORB is, how it works, and how traders can effectively use it. ⚡What is the Opening Range-:: The "opening range" refers to the price range established during the first few minutes of a trading session. This range is defined by the high and low prices observed within this period. Depending on the trader's preference and the asset being traded, this range can be set over different time intervals, commonly 5, 15, or 30 minutes. ⚡Understanding the Breakout-:: A breakout occurs when the price moves outside the opening range, either above the high or below the low. This movement indicates a potential direction for the day's trend. The idea behind the ORB strategy is that the price, once it breaks out of this range, is likely to continue moving in that direction, giving traders a chance to enter a position early in the day and ride the trend. ⚡Why Use ORB-:: 1.Early Market Volatility-: The market often shows significant volatility at the opening bell, driven by overnight news, earnings reports, and economic data. This creates opportunities for sharp price movements. 2.Defined Risk and Reward-: Since the opening range is defined, traders can set clear entry, stop-loss, and take-profit levels, making risk management straightforward. 3.Capturing Early Trends-: ORB allows traders to capture trends early, often before the broader market catches on. This can lead to significant profits in a short period. ⚡How to Implement the ORB Strategy-:: 1-Identify the Opening Range-: At the start of the trading session, observe the price action and note the high and low points within your chosen time frame (e.g., the first 15 minutes). 2-Set Breakout Levels-: Once the opening range is established, these levels (the high and low) become your breakout levels. 3-Place Orders-:: Long Position-: If the price breaks above the high of the opening range, enter a long position (buy). Short Position-: If the price breaks below the low of the opening range, enter a short position (sell). 4-Set Stop-Loss-: A common approach is to place a stop-loss just inside the opening range. For example, if you enter a long position, your stop-loss might be slightly below the high of the range. 5-Set Profit Targets-: Profit targets can be set based on a fixed ratio (e.g., 2:1 risk/reward ratio), or by trailing the stop-loss as the price moves in your favor. ⚡Factors to Consider for ORB Success-:: 1-Market Conditions-: ORB tends to work best in markets with high liquidity and volatility. Stocks with news catalysts, or major indices, are often good candidates. 2-Time Frame Selection-: The choice of the opening range time frame is critical. Shorter time frames (e.g., 5 minutes) might offer more frequent signals, but they can also lead to more false breakouts. Longer time frames (e.g., 30 minutes) may provide more reliable signals but fewer opportunities. 3-Volume Confirmation-: It's often wise to confirm breakouts with an increase in volume, which can indicate the strength of the move. 4-Avoiding False Breakouts-: Not every breakout leads to a sustained move. To avoid false breakouts, some traders wait for a retest of the breakout level or use additional technical indicators, such as moving averages or momentum oscillators, to confirm the trend. ⚡Example of ORB in Action-:: Let’s consider a stock that has an opening range of 100 to 105 in the first 15 minutes of trading. Here’s how a trader might approach this: Breakout Above 105-: The trader places a buy order at 105.10 (a little above the breakout level) and sets a stop-loss at 104.50 (just below the high of the opening range). The profit target might be set at 107.20, assuming a 2:1 reward-to-risk ratio. Breakout Below 100-: Alternatively, if the stock breaks below 100, the trader could short the stock at 99.90 with a stop-loss at 100.50 and a profit target at 97.80. ⚡Advantages of ORB-:: Clarity-: The strategy provides clear entry and exit points, reducing guesswork. Structure-: It imposes discipline by setting predefined rules for trading. Simplicity-: ORB is relatively simple to understand and execute, making it accessible to traders of all experience levels. ⚡Challenges and Limitations-:: False Breakouts-: These can lead to losses if not managed carefully. Whipsaws-: In highly volatile markets, prices might break the range multiple times, leading to potential whipsaws. Over-Reliance on Opening Range-: Solely relying on the opening range might ignore broader market context or trends from previous days. ⚡Conclusion-:: The Opening Range Breakout strategy is a powerful tool in a trader's arsenal, particularly for those who thrive on early market action. While it offers a structured approach to capturing trends, success with ORB requires discipline, proper risk management, and an understanding of market conditions. By combining ORB with other strategies or indicators, traders can increase their chances of capturing profitable moves while minimizing risks. Whether you’re a seasoned trader or just starting, mastering the ORB strategy can provide you with the edge needed to navigate the fast-paced world of day trading. Thanks for reading the post, I hope you will like the information shared above and like my idea too. Best Regards- Amit
NASDAQ:AMDEducation
by AMIT-RAJAN
1
KISS Trading SystemOverview : Trading process should be as simple as possible. One of the simple method to trade is primarily identify direction, find a good location to entry, wait for confirmation in the location, and finally execute the trade when the risk reward ratio is good. 1. Direction To identify direction, follow the market structure. Higher high and higher low indicates price is in a bullish trend (uptrend), while lower high and lower low indicates the price is in a bearish trend (downtrend). If there is no clear structure higher high and higher low or lower and high lower low, price is in sideways mode. Best is to avoid trade under this condition until clear trend is formed. 2. Location Every time price create a new breakout structure, mark the the structure as our potential location for entry. There are some occasion where price does not pullback to the location and continuing the trend by creating a new breakout structure. Do not FOMO, just wait for the next location and confirmation within the location to entry and minimize your risk. 3. Confirmation Patience is the key. Wait for price to pullback at higher time frame location, and focus for confirmation in lower time frame to entry and reduce risk. Time is fractal, the structure pattern is same on all timeframes. Choosing the right timeframe pair is crucial. Refer to table in the notes below for timeframe pairing. 4. Risk Reward This is the main essence in trading, controlling risk and preserving capital. Entry without doubt when the risk reward are good. Execute, and trust your setup.
CME_MINI:NQ1!Education
by Gann-7
5
Best GOLD XAUUSD Psychological Levels Indicator on TradingView There is one free technical indicator that will show you every significant psychological level on Gold XAUUSD chart. It is available on TradingView and it is very easy to set. Discover the best psychological support and resistance indicator for Gold trading , its settings and useful tips. First, let's discuss the significance of psychological levels in GOLD XAUUSD analysis and trading. The classic way of the search of significant supports and resistance is based on the analysis of a historic price action. However, while Gold constantly sets new historic highs such a method does not work, because there are no historic resistances to rely on. In such a situation, the only reliable strategy to find potentially strong resistances is to analyze psychological levels. Psychological levels are the round numbers based price levels. Because of the common human psychological biases, these levels attract the interest of the market participants and the prices tend to react to them. A great example of a psychological level in Gold trading is 3000 level. It served as a resistance first and after a breakout turned into an important support. And I found a free technical indicator that plots all the significant psychological levels efficiently. One more thing to note is that I strictly recommend searching for psychological levels on a daily time frame, because it provides the most relevant perspective. To use this indicator, search "round" in indicators wind ow. It is called "Round numbers above and below". Click on that and it will start working immediately. You can see that the indicator plotted 3 significant psychological resistances above current prices and 3 supports below on Gold chat. In the settings of the indicator, you can change the number of levels to identify and change the style of the horizontal lines. Examine the reaction of the price to psychological supports that the indicator shows. These levels may remain significant in futures and applied for pullback/breakout trading. With a crazy bullish rally that we contemplate on Gold this year, psychological levels will be the most reliable technical analysis tools for the identification of future bearish reversals and corrections. This free technical indicator on TradingView will help you in search of the strongest ones. ❤️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
2
You want to be a trader but you have a 9-5 Educational purpose only. You want to be a day trader but can't trade market open because you have a job or you are too busy. The daily bar can give you just as much profits as the 5 min charts. In this video ill teach you how to find support and resistance zone on any market. Opening a line chart starting from the weekly and then looking for areas where price has repeatedly reverse gives you a clue of where price may go in the future on a daily chart. Watch till the end to see how this strategy is applied to all markets.
BITSTAMP:BTCUSDEducation
by brodjr8
Simple Break of Structure BoS Trading Strategy Explained One of the best and reliable strategies to trade break of structure BoS is to apply multiple time frame analysis. In this article, I will teach you my break of structure gold forex trading strategy. You will get a complete step-by-step guide with examples. Let's start with a quick theory and let me explain to you what is break of structure BoS in Smart Money Concept SMC trading. In a bullish trend, break of structure BoS is an important event that signifies a continuation of an uptrend. It is based on a violation and a candle close above the level of the last higher high (HH). After a breakout, the broken level becomes the first strong support for trend-following buying. Check multiple examples of confirmed breaks of structure BoS on GBPNZD forex pair on a weekly time frame. In a downtrend, Break of Structure BoS means a bearish trend continuation . Break of Structure is considered to be confirmed when a candle closes below the level of the last lower low (LL). The broken key level becomes the closest strong support for buying. That's the example of a healthy downtrend on USDJPY forex pair on a daily. Each break of structure BoS pushed the prices lower, providing a strong signal to sell. What newbie traders do incorrectly, they trade break of structure without a confirmation strategy, and it leads to substantial losses. Though GBPCHF is trading in a bullish trend and though each BoS provided a trend-following signal. The price retraced significantly lower below the broken structure before the growth resumed. When the price retests a broken structure after BoS in a bullish trend, start lower time frame analysis. If you identified a break of structure on a daily, analyze 4h/1h time frames. If on a 4H, then 30/15 minutes. After the price sets a new higher high with BoS in uptrend, it usually starts trading in a minor bearish trend on lower time frames. With our strategy, your signal to buy will be a retest of a broken structure and a consequent bullish Change of Character CHoCH . That will provide an accurate bullish signal. In a bearish trend, analyze the lower time frames after a retest of a broken structure. Your signal to sell will be a bearish Change of Character CHoCH. Look at a price action on EURCHF on a daily. We see a strong bullish trend and a confirmed Break of Structure BoS. According to the rules of our trading strategy, we start analyzing 4h/1h time frames after a retest of a broken level of the last Higher High. Our signal to buy is an intraday bullish CHoCH. We open a long trade after that with the stop loss below the intraday lows and take profit being a current high. That's how simple this strategy is. Multiple time frame analysis provides the extra level of security. Strong lower time frame confirmation substantially increases the win ratio of a trading setup. ❤️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
24
Understanding Moving Averages In TradingToday, we dive into a comprehensive guide on Moving Averages (MAs) — one of the most fundamental yet powerful tools in technical analysis. Whether you're a seasoned trader or just starting out, understanding how MAs work can help you better interpret market trends, identify potential entry and exit points, and smooth out price data for clearer decision-making. In this article, we’ll break down the different types of moving averages, how they’re calculated, when to use them, and common strategies that incorporate them into successful trading plans. 1️⃣ 1. What are Moving Averages? Moving averages (MAs) are statistical calculations used in technical analysis to smooth out price data and identify trends over a specific period. They help traders filter out short-term fluctuations and focus on the overall direction of an asset's price. 2️⃣ 2. Importance Moving averages (MAs) play a crucial role in technical analysis by helping traders identify trends, reduce noise, and make informed trading decisions. Here’s why they are important: Trend Identification: MAs help traders determine the overall direction of the market. Dynamic Support & Resistance: Traders watch key MAs (e.g., 50-day and 200-day) to anticipate price reactions. Trading Signals & Crossovers: Detects potential changes in trend direction. Golden Cross (Bullish): When a short-term MA (e.g., 50-day) crosses above a long-term MA (e.g., 200-day), signaling a potential uptrend. Death Cross (Bearish): When a short-term MA crosses below a long-term MA, indicating a possible downtrend. Momentum Confirmation: A steeply rising MA suggests strong bullish momentum, while a declining MA signals bearish strength. 3️⃣ 3. Moving Averages Types Simple Moving Average (SMA): Calculates the simple average of past prices. Exponential Moving Average (EMA): Prioritizes recent prices for faster response. Weighted Moving Average (WMA): Prioritizes recent prices for faster response. Hull Moving Average (HMA): Smooths trends while reducing lag effectively. Smoothed Moving Average (SMMA): Averages data with less sensitivity to noise. Triangular Moving Average (TMA): Applies a double smoothing to price data. Adaptive Moving Average (AMA): Adapts dynamically to changing market trends. Kaufman Adaptive Moving Average (KAMA): Adjusts speed based on volatility and noise. Double Exponential Moving Average (DEMA): Uses dual EMAs to reduce lag in trends. Triple Exponential Moving Average (TEMA): Enhances trend detection with triple EMAs. Arnaud Legoux Moving Average (ALMA): Minimizes lag while improving price smoothness. Variable Moving Average (VMA): Adjusts its value based on market conditions. Volume-Weighted Moving Average (VWMA): Weights price data according to trading volume Jurik Moving Average (JMA): A highly smooth and responsive MA that reduces lag and noise. Fractal Adaptive Moving Average (FRAMA): Adapts to market fractal geometry, adjusting speed based on volatility. Zero Lag Exponential Moving Average (ZLAMA): A variation of EMA that eliminates lag by compensating for past price movements. 4️⃣ 4. Calculations Moving averages are fundamental tools in technical analysis, helping to smooth price data and highlight trends. However, not all moving averages are created equal—each type is calculated differently, affecting how it responds to market movement. In this section, we’ll focus on the formulas behind a few of the most relevant and widely used types: the Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA). a. Simple Moving Average (SMA) The Simple Moving Average (SMA) calculates the average price of an asset over a specified period. Lag: High (delayed response to price changes) Best for: Identifying long-term trends and support/resistance SMA = P1 + P2... + ... + Pn / n Where: P1 + P2... + ... + Pn: are the prices (usually closing prices) of the last n periods. n: is the number of periods on average. It gives an equal weight to all prices in the period. ta.sma(close, length) b. Exponential Moving Average (EMA) The Weighted Moving Average (WMA) assigns higher weights to more recent prices, reducing lag and increasing responsiveness compared to SMA. Lag: Lower than SMA but higher than EMA Best for: Short-term trading strategies EMA = (Pt × α) + EMAy × (1 − α) Where: Pt: Current price (usually the closing price) EMAy: Previous period’s EMA α (alpha): Smoothing factor = 2 / (n + 1) n: Number of periods in the EMA It gives more weight to recent prices, reducing the lag compared to SMA. ema = ta.ema(close, length) c. Weighted Moving Average (WMA) The Weighted Moving Average (WMA) assigns higher weights to more recent prices, reducing lag and increasing responsiveness compared to SMA. Lag: Lower than SMA but higher than EMA Best for: Short-term trading strategies WMA = (P1 × w1 + P2 × w2 + ... + Pn × wn) / (w1 + w2 + ... + wn) Where: P1...Pn: Prices (usually closing) over the last n periods w1...wn: Weights assigned to each period (most recent gets the highest weight) n: Number of periods It reacts faster than SMA but smoother than EMA due to its linear weighting. wma = ta.wma(close, length) While there are many variations of moving averages available, the formulas covered here—SMA, EMA, and WMA—represent the most essential and commonly applied in both trading platforms and manual analysis. Understanding how these are calculated gives deeper insight into their strengths, limitations, and the types of signals they provide. 5️⃣ 5. Choosing the Right MA Choosing the Right Moving Average for Your Trading Style Choosing the right moving average (MA) depends on your trading style, time horizon, and goals. Different types of MAs have varying levels of sensitivity to price movements, so the choice should align with your trading strategy. Here’s how you can choose the best moving average based on your trading approach: Short-Term Traders (Day Traders, Scalpers) Exponential Moving Average (EMA): The EMA reacts faster to price changes, which is crucial for short-term traders who need to enter and exit positions quickly. Simple Moving Average (SMA): While less sensitive than the EMA, shorter-term SMAs (like the 5 or 10-period) can still be useful for spotting very quick trend changes. Hull Moving Average (HMA): Offers a good balance between smoothness and responsiveness, reducing lag while staying sensitive to price changes. Medium-Term Traders (Swing Traders) Simple Moving Average (SMA): Longer SMAs (like the 50-period or 100-period) are effective in identifying the general trend over a few days or weeks. Exponential Moving Average (EMA): The 20-period or 50-period EMA can work well for medium-term traders, providing a smoother trend signal while still responding to changes. Smoothed Moving Average (SMMA): The SMMA gives a smoother trend and reduces the noise, which is ideal for swing traders who look for stable trends over a couple of weeks. Long-Term Traders (Position Traders, Investors) Simple Moving Average (SMA): Longer SMAs like the 100-period or 200-period SMA are perfect for long-term traders and investors. These averages provide a clear indication of the long-term trend and act as reliable support and resistance levels. Triangular Moving Average (TMA): TMA smooths out price movements even more and is useful for capturing long-term trends. It's slower, but highly effective for those trading in longer time frames. Trend-Following Traders Exponential Moving Average (EMA): As trend-following traders rely on capturing long trends, EMAs with longer periods (50, 100, 200) are a solid choice, providing smoother signals with less noise. Hull Moving Average (HMA): The HMA reduces lag, making it a great choice for trend-following traders who want to react quickly to changes while staying in the trend. 6️⃣ 6. How To Use Moving Averages Moving averages (MAs) are one of the most widely used tools in technical analysis due to their simplicity and effectiveness in identifying trends, smoothing price data, and signaling potential market reversals. They are used by traders to help spot entry and exit points, determine the direction of the market, and define dynamic support and resistance levels. Here’s a deeper dive into how moving averages are used in trading: Identifying Trends Uptrend: When the price is consistently above the moving average, it indicates a bullish trend. The longer the period of the moving average, the smoother it becomes, showing the overall direction of the market. Downtrend: Conversely, when the price is consistently below the moving average, it indicates a bearish trend. Sideways/Consolidation Market: When the price hovers around the moving average without a clear direction, the market is often in a consolidation phase. Support and Resistance Levels Support Levels: When the price is above a moving average and then pulls back to touch it, the moving average often acts as a support level. Traders anticipate the price to bounce off the moving average and resume its uptrend. Resistance Levels: When the price is below a moving average and then rallies back to it, the moving average often acts as a resistance level. This resistance can lead to a reversal or consolidation as the price struggles to break above the MA. 7️⃣ 7. Golden Cross & Death Cross One of the most well-known signals involving moving averages is the crossover of short-term and long-term moving averages. These crossovers are used to signal potential trend changes and provide traders with entry and exit signals. Golden Cross: Occurs when a short-term moving average crosses above a long-term moving average. Death Cross: Occurs when a short-term moving average crosses below a long-term moving average. Golden Cross This is considered a bullish signal, indicating that an uptrend may be starting or strengthening. When it happens: A common example of a Golden Cross is when the 50-day moving average crosses above the 200-day moving average. The short-term trend is gaining strength and could signal the beginning of a sustained uptrend. Why it works: The Golden Cross indicates that recent prices are moving higher and that momentum is accelerating. It suggests that buying pressure is overpowering selling pressure. Death Cross This is considered a bearish signal, indicating that a downtrend may be imminent or already in place. When it happens: A typical example of a Death Cross is when the 50-day moving average crosses below the 200-day moving average, signaling that the short-term trend is weakening and a bearish shift may be in play. Why it works: The Death Cross shows that short-term price movements are declining relative to longer-term trends, and it indicates increasing selling pressure. 8️⃣ 8. MA Strategies Trend Following The trend following strategy focuses on identifying and capitalizing on strong price movements in one direction. Trend Identification: Moving averages are used to identify whether the market is trending up or down. The most common trend-following strategy is to buy when the price is above a key moving average and sell when it’s below. Trend Confirmation: Once the trend is identified using MAs, traders can enter trades that align with the trend. The idea is to "ride the wave" of the trend as long as possible until there is evidence of a reversal or loss of momentum. MA Crossover Moving average crossovers are one of the most popular and widely used strategies in technical analysis. Crossovers occur when a short-term moving average crosses over a longer-term moving average, signaling potential trend changes. Short-Term Crossovers: These are typically faster and more sensitive, which can help traders spot quicker market changes. Short-term crossovers tend to generate more signals, but they can also lead to more false signals in choppy or sideways markets. (9 EMA & 21 EMA Strategy) Long-Term Crossovers: These are slower and less frequent but tend to produce more reliable trend signals. Long-term crossovers filter out market noise and provide a clearer view of the overall market direction. (The 50/200-Day Moving Average Strategy) Mean Reversion Mean reversion is based on the idea that prices tend to return to their average over time. How to Identify Overextended Prices Overbought and Oversold Conditions: When the price is significantly above or below a moving average, it may be overextended. In such cases, traders expect the price to revert to the moving average. Using MAs as a Benchmark: Traders can use longer-term MAs, like the 50-day or 200-day moving averages, to identify overextended conditions. If the price moves significantly above or below the moving average, it is often seen as an opportunity for mean reversion trades. Trading Moving Average Pullbacks Pullbacks: A pullback is when the price moves against the prevailing trend, temporarily retracing toward the moving average before resuming its original trend. Buying Pullbacks in Uptrends: In an uptrend, traders look to buy when the price pulls back to a moving average like the 50-day or 200-day MA, assuming the trend will continue. Selling Pullbacks in Downtrends: In a downtrend, traders look for selling opportunities when the price temporarily rallies back to a moving average, anticipating a return to the downtrend. 9️⃣ 9. Key Takeaways Moving Averages (MAs) smooth price data, helping identify trends, entry, and exit points. Trend Following Strategies use MAs to align trades with the market’s direction (uptrend, downtrend). Support & Resistance: MAs act as dynamic levels where prices may reverse or consolidate. Crossovers: - Golden Cross (50/200-day crossover) signals a bullish trend. - Death Cross (50/200-day crossover) signals a bearish trend. - Short-Term Crossovers (9/21 EMA) provide faster signals for active traders. Mean Reversion Strategy: Prices often revert to their moving average after being overextended. Pullback Trading: Enter trades when prices pull back to key MAs during trends. Combining Indicators: - RSI confirms MAs’ buy or sell signals. - MACD crossover strengthens trend direction confirmation. - Bollinger Bands help assess volatility, confirming price targets and trends. Timeframe Selection: Short-term traders use quicker MAs (e.g., 9 EMA), while long-term traders prefer slower MAs (e.g., 200-day SMA). Best MA Settings: For trend-following, use 50/200-day MAs; for short-term, use 9/21 EMAs. Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
CME_MINI:ES1!Education
by CandelaCharts
Buy Fear, Not Euphoria: The Trader's EdgeWhen you look back at the greatest trading opportunities in history, they all seem to share a common element: fear. Yet, when you're in the moment, it feels almost impossible to pull the trigger. Why? Because fear paralyzes, while euphoria seduces. If you want to truly evolve as a trader, you need to master this fundamental shift: buy fear, not euphoria. Let's break it down together. ________________________________________ What Fear and Euphoria Really Mean in Markets In simple terms, fear shows up when prices are falling sharply, when bad news dominates the headlines, and when people around you are saying "it's all over." Euphoria, on the other hand, is everywhere when prices are skyrocketing, when everyone on social media is celebrating, and when it feels like "this can only go higher." In those moments: • Fear tells you to run away. • Euphoria tells you to throw caution to the wind. Both emotions are signals. But they are inverted signals. When fear is extreme, value appears. When euphoria is extreme, danger hides. ________________________________________ Why Buying Fear Works Markets are pricing machines. They constantly adjust prices based on emotions, news, and expectations. When fear hits, selling pressure often goes beyond what is rational. People dump assets for emotional reasons, not fundamental ones. Here’s why buying fear works: • Overreaction: Bad news usually causes exaggerated moves. • Liquidity Vacuums: Everyone sells, no one buys, creating sharp discounts. • Reversion to Mean: Extreme moves tend to revert once emotions stabilize. Buying into fear is not about being reckless. It’s about recognizing that the best deals are available when others are too scared to see them. ________________________________________ Why Chasing Euphoria Fails At the peak of euphoria, risks are often invisible to the crowd. Valuations are stretched. Expectations are unrealistic. Everyone "knows" it's going higher — which ironically means there's no one left to buy. Chasing euphoria often leads to: • Buying high, selling low. • Getting trapped at tops. • Emotional regret and revenge trading. You’re not just buying an asset — you're buying into a mass illusion. ________________________________________ How to Train Yourself to Buy Fear It's not enough to "know" this. In the heat of the moment, you will still feel the fear. Here's how you build the right habit: 1. Pre-plan your entries: Before panic strikes, have a plan. Know where you want to buy. 2. Focus on strong assets: Not everything that falls is worth buying. Choose assets with strong fundamentals or clear technical setups. 3. Scale in: Don’t try to catch the bottom perfectly. Build positions gradually as fear peaks. 4. Use alerts, not emotions: Set price alerts. When they trigger, act mechanically. 5. Remember past patterns: Study previous fear-driven crashes. See how they recovered over time. Trading is a game of memory. The more you internalize past patterns, the easier it is to act when everyone else panics. ________________________________________ A Recent Example: April 2025 Tariff Panic Very recently, at the start of April, Trump’s new tariff announcements sent shockwaves through the market. Panic took over. Headlines screamed. Social media was flooded with fear. But if you looked beyond the noise, charts like SP500 and US30 told a different story: the drops took price right into strong support zones. At the time, I even posted this : support zones were being tested under emotional pressure. If you had price alerts set and reacted mechanically, not emotionally , you could have bought into that fear — and potentially benefited from the rebound that followed just days later. This is the essence of buying fear. ________________________________________ Final Thoughts In trading, you are paid for doing the hard things. Buying when it feels terrible. Selling when it feels amazing. Remember: Fear offers you discounts. Euphoria offers you traps. The next time the market feels like it's crashing, ask yourself: • Is this fear real, or exaggerated? • Is this an opportunity hiding under an emotional fog? If you can answer that with clarity, you're already ahead of 90% of traders. Stay rational. Stay prepared. And above all: buy fear, not euphoria. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
TRADENATION:US500Education
by Mihai_Iacob
Have Right Tools and Right StructureHi there, Some insights on the recent movement of XRPUSDT. It recently broke through two key support trendlines, creating lows that line up with the 0.38 Fibonacci retracement level. This area has significant importance, especially when considering the lower point at 2.2404. The bullish RSI suggests we might see a positive price movement soon. However, it's essential to recognize that while we're anticipating a bullish trend, we need more confirmation. We’ve identified 2.2404 as a significant low, supported by multiple indicators, but we should also validate this level using higher timeframes to ensure we have a solid structure behind it. Measuring probabilities against the inherent randomness of the market, along with keeping an eye on the market calendar, is crucial. It's important to have clear definitions for the concepts you trade. Jumping into live trades without clarity can lead to confusion, mixing varying strategies like change of character (choch), liquidity, and price action coming all together as a confusing mess. Remember, trading isn’t about shifting from one strategy to another. It’s about understanding how the market behaves at price lows and highs and aligning that movement with the concepts that work best for you. So, it’s all about interpretation. The tools must allow you to see clearly without straining to understand what the market might be doing. The structure must also be clear. This means breaking previous highs and breaking previous lows, each followed by measurable retests, respectively. Stay sharp and trade smart Khiwe.
Education
by Khiwe
1
Why Should You Care About ER?🚀 Hey Traders! Have You Ever Felt Lost in the Chaos of Market Fluctuations? What if I told you there’s a powerful tool that can help you cut through the noise and give you a statistical edge to predict SUPPORT and RESISTANCE movements with confidence? Let me take 5 minutes of your time to introduce you to something that could transform your trading game: Expected Range Volatility (ER) . What is Expected Range Volatility (ER)? The Expected Range (ER) is a framework that helps traders understand how much an asset is likely to move within a specific timeframe. Based on CME market data and Nobel Prize-winning calculations, price movements within the expected volatility corridor have a 68% probability of staying within those boundaries. 💡 Key Insight: When the price approaching certain levels, there’s a 68% chance the price won’t break through those boundaries. This means you can use ER as a powerful filter to identify more precise entry and exit points for your trades. Why Should You Care About ER? When I first discovered the ER tool, it felt like stumbling upon a gold mine in the trading world. Here’s why: It’s free and available on the CME exchange’s website. It’s underutilized —95% of traders don’t even know it exists. It provides statistical clarity in a world full of uncertainty. I remember the first time I used ER in my analysis—it completely changed the way I approached intraday trading. Now, I never make a trade without checking the ER data. It’s become an essential part of my strategy. How to Use ER in Your Trading 1️⃣ Input the Data: Head over to the CME website, plug in the necessary parameters, and get your ER values. 2️⃣ Set Boundaries: Use the ER range as a guide to set potential support and resistance levels. 3️⃣ Filter Trades: Only take trades that align with the ER framework to improve your precision. A recent example is the Japanese yen futures market. Don't be confused by the fact that we take futures levels, it can easily be plotted on a spot chart for forex market (the dollar/yen). Limitations to Keep in Mind While ER is a powerful tool, it’s not a crystal ball. Here are some limitations: Market Dynamics: Short-term price movements can be unpredictable due to sentiment, news, or economic events. ER provides a statistical estimate, but it doesn’t guarantee outcomes. Assumptions: The formula assumes price movements follow a log-normal distribution , which may not hold true in all market conditions. Your Turn: Are You Using ER in Your Strategy? 💭 Here’s the million-dollar question: Are you leveraging the power of Expected Range Volatility in your trading? If not, why not start today? 💬 Share your thoughts in the comments below: Do you currently use ER or similar statistical tools? Want to Dive Deeper? If you’re ready to take your trading to the next level, don’t miss out on our all-in-one resource designed to help you master tools like ER and other valuable sources to gain market edge! 🔥 Remember: No Valuable Data = No Edge!
Education
by ClashChartsTeam
Market Psychology and ImpressionsHi There, Right now, BTCUSDT looks like it’s going up, but the price movement isn’t very stable. It could still go higher—but there’s also a chance it might drop. The market is kind of in a tricky area where it’s not clear what will happen next. This is where a Fibonacci tool can be useful to spot areas of interest drawn from a High to Low and take note of 0.618 and 0.5. Never chase the market; only react. Let price come to your area and give you a clear signal in terms of higher lows and lower highs for entry with some confirmation. This is the kind of situation where people often get caught up in FOMO, jumping in too fast because they’re afraid of missing a big move. But that can lead to getting stuck if the price suddenly moves the other way. When the market is behaving like this—unpredictable and uncertain—it’s often better to just watch and wait. Remember: not every move needs to be traded. Sometimes, the best position is no position at all. Stay sharp and trade smart. Khiwe.
Education
by Khiwe
DON'T Make This MISTAKE in MULTIPLE TIME FRAME Analysis Most of the traders apply multiple time frame analysis incorrectly . In the today's article, we will discuss how to properly use it and how to build the correct thinking process with that trading approach. The problem is that many traders start their analysis with lower time frames first . They build the opinion and the directional bias analyzing hourly or even lower time frames and look for bullish / bearish signals there. Once some solid setup is spotted, they start looking for confirmations , analyzing higher time frames. They are trying to find the clues that support their observations. However, the pro traders do the opposite . The fact is that higher is the time frame, more significant it is for the analysis. The key structures and the patterns that are spotted on an hourly time frame most of the time will be completely irrelevant on a daily time frame. In the picture above, I underlined the key levels on USDJPY on an hourly time frame on the left. On the right, I opened a daily time frame. You can see that on a higher time frame, the structures went completely lost. BUT the structures that are identified on a daily, will be extremely important on any lower time frame. In the example above, I have underlined key levels on a daily. On an hourly time frame, we simply see in detail how important are these structures and how the market reacts to them. The correct way to apply the top-down approach is to start with the higher time frame first: daily or weekly. Identify the market trend there, spot the important key levels. Make prediction on these time frames and let the analysis on lower time frames be your confirmation. ❤️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
EUR/USD- Elliott Wave + Smart Money Concepts (SMC)SMC Insight Supply Zone Marked: Between 1.1500 – 1.2000. Price is heading toward the supply zone. On the right visual, schematic shows: Liquidity build-up below equal highs. Possible liquidity grab just above the supply zone. Expect reaction or reversal around that supply. --- Trade Bias Short-term: Bullish (momentum and structure are up). Long-term: Watch for reaction at the 1.1500–1.2000 zone. This could be a major sell zone if price shows rejection/mitigation signs
Education
by Greenfireforex
1
Trendlines and broken trendlines resultsTrendlines are one of the major supports or resistances and on this Bitcoin chart we can see few examples which price react well to them and start to pump from green trendlines and sometimes dump from red trendlines and it is easy to draw one trendline ----> simple like drawing support line this time try to find support line which is Diagonal and one or two touch with this trendline you can find next support which is third touch and you can set your buy there like below example: also sometimes trendline broke and their support turn to resistance and after retest of breakout you can enter sell like example: there are so many rules about trendline like when it can break or after how many touches trendline lose it's power and ... we can discuss in comments more about them so ask any questions there and lets discuss. Also currently if we have a valid breakout of red trendline to the upside for Bitcoin price can easily pump to 90K$ at least. DISCLAIMER: ((trade based on your own decision)) <
Education
by MMBTtrader
10
Trading A Divergence Trade (Breakdown) with Pivots and LiquidityTrading divergences was always a problem for me in the past. I did the same thing you did and got it wrong every time. I was trading divergences when i saw them instead of realizing a divergence is a flip of support and resistance levels. I just needed to know where they are. In this video: Internal vs External Pivot divergence confirmation: You can have two types of pivots on your chart. One for long term and one for short term. Using them to confirm short and long term price action is intuitive as youll be able to see the market squeezing on the short term while knowing where your long term price structure exists. Price action to Divergence Confirmation: A divergence on a short term pivot is an indication of short term loss of trend or reversal. If the short term has no divergence but the long term does, you are about to end up with some pretty large price moves. Youll be confirming the divergence by looking for highs, lows, and closes moving the wrong way from current price action. This video will give you a method you can use to draw out your support zone / resistance zone / divergence zone and use them to your advantage. The "Divergence Zone" that you draw out is the very reason why so many people fail at divergences. Bare in mind that when you have a divergence, support and resistance are on the WRONG sides as their normally are so you'll learn here how to find those zones as well. Then in the end of the video ill show you how to use lower timeframes to confirm the new move of the market. Thanks, everyone. For coming through to the CoffeeShop.
CME:6J1!Education
by CoffeeshopCrypto
2
Why Support and Resistance are Made to Be Broken ?Hello fellow traders! Hope you're navigating the markets smoothly. As we go through the daily dance of price action, one thing becomes clear support and resistance are just moments, not walls. They're temporary. Momentum and trend strength? Now that’s where the real story lies. This publication dives into how these so-called key levels break and more importantly, how to position yourself smartly when they do. Stay flexible, trade with confidence, and let the market lead. Let’s get into it. Why Support and Resistance Levels Break Support and resistance are some of the most talked-about tools in technical analysis. But here's the truth they’re not meant to last forever. No matter how strong a level may appear on your chart, it eventually gets tested, challenged, and often broken. Why? Because the market is dynamic. The real edge for a trader lies not in hoping a level holds, but in reading when it’s about to fail and being ready for it. No Resistance in a Bull, No Support in a Bear Ever seen a strong bull market pause just because of a resistance line? It doesn’t. Price keeps pushing higher as buyers keep stepping in. Same goes for a strong bear market support levels collapse as fear takes over and selling snowballs. Instead of clinging to lines on a chart, think bigger: Where is the momentum? What’s the trend saying? That’s where your trading decisions should come from. Support and Resistance: Not Fixed, Always Shifting Yes, these levels matter but only as zones, not exact prices. They’re areas where price has reacted in the past, where traders might expect something to happen again. But they’re not magic numbers. When traders treat these levels as absolute, they fall into traps false confidence, poor entries, tighter than-needed stop losses. Always remember: market sentiment, liquidity, and institutional activity are constantly changing. So should your interpretation of the chart. The Temporary Nature of These Levels Markets move on supply and demand. A level that acted as resistance last week could easily become support next week. Or break completely. Take the classic example support turning into resistance. When support breaks, former buyers might now be sellers, trying to get out on a bounce. That flip happens because behavior and sentiment have shifted. And as traders, that’s the real pattern we need to track not just price levels, but the psychology behind them. “Strong” Support? It’s Mostly an Illusion We all love the idea of a strong level something we can lean on. But large players? They don’t think like that. Institutions don’t place massive orders at a single price point. They spread across a zone building positions slowly without moving the market too much. What looks like a strong level to us might just be an accumulation or distribution range for them. Always think beyond what’s visible on the surface. How to Spot Breakouts Before They Hit Here’s what separates seasoned traders from the rest the ability to spot potential breakouts before they explode. 🔹 Volume Confirmation: If a resistance level is tested repeatedly on rising volume, that’s a big clue buyers are serious. 🔹 Structure Shifts: Higher highs in an uptrend or lower lows in a downtrend signal that the old levels are being challenged. 🔹 Liquidity Traps: Watch out for fakeouts. These are designed to trap impatient traders just before the real move. 🔹 News & Events: Never ignore macro triggers. Earnings, economic data, or geopolitical surprises can fuel breakouts that crush technical levels. 🔹 Break & Retest: A solid strategy — wait for the level to break, then get in on the retest. 🔹 Momentum Tools: Indicators like RSI, MACD, or even EMAs can offer extra confidence that a move has legs. 3 Practical Trading Setups 1. Breakout Trading Mark key levels on daily or weekly charts. Watch for volume and momentum confirmation. Enter after a clear breakout or retest. Stop-loss: Just below resistance (for longs) or above support (for shorts). 2. Range Trading If price is stuck between support and resistance, trade the range. Look for price rejection (wicks, pin bars, etc.). Use RSI or Stochastics to time entries. 3. Trend Following Identify the dominant trend using moving averages or price structure. Avoid going against the trend unless reversal signs are very clear. Let profits run use trailing stops instead of fixed targets. Mind Over Market: Psychology of S&R One of the biggest traps in trading? Overtrusting support and resistance. We get emotionally attached. We want the support to hold or the resistance to reject. And that bias clouds our judgment. How many times have you seen price break a level — and you freeze because it “wasn’t supposed to”? To break free of that: ✅ Trade with a plan. ✅ Set your risk before the trade, not after. ✅ Don’t treat any level as sacred. ✅ Stay open to what the market is telling you not what you want it to say. Final Thoughts Support and resistance are great tools but they’re just one part of the puzzle. The real power lies in reading price action, watching volume, and understanding market sentiment. Don’t ask, “Will this level hold?” Ask instead, “What happens if it breaks?” That shift in thinking? It can make all the difference. Stay sharp, stay adaptive, and keep evolving with the market. Wishing you green trades and growing accounts! Best Regards- Amit Rajan.
NASDAQ:TSLAEducation
by AMIT-RAJAN
1
Bonds Don’t Lie: The Signal is ClearU.S. 10-year Treasuries are a crucial cog in the global financial machine, serving as a benchmark borrowing rate, a tool for asset valuation, and a gauge of the longer-term outlook for U.S. economic growth and inflation. As such, I keep a close eye on 10-year note futures, as they can offer clues on directional risks for bond prices and yields. The price action over the past few days has sent a clear and obvious signal as to where the risks lie: prices higher, yields lower. Futures had been grinding lower within a falling wedge for several weeks but broke higher last Friday on decent volumes following soft U.S. household spending data. It has since extended bullish the move, reclaiming the 200-day moving average before surging above key resistance at 115’09’0 after Trump’s reciprocal tariff announcement on Wednesday. RSI (14) is trending higher but isn’t yet overbought, while MACD has crossed the signal line above 0, confirming the bullish momentum signal. That favours further upside, putting resistance at 116’11’0 and 118’12’0 on the immediate radar. For those who prefer it expressed in yield terms, that’s around 4% and 3.8% respectively. Good luck! DS
CBOT:TN1!Education
by FOREXcom
9
3 Best Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance . Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend . In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. ❤️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
7
Power of trendline + support/resistanceI would like to show the power of combining trendlines and support & resistance on your chart work. As we all know in order for a trendline to be effective it must be used with key major points and the trend must be clear whether it's an uptrend or downtrend, cause if the trend is neither then that would lead to false signals that would cause people to get stopped out. If used with S&R it can give us way better entries and more accurate with high probability of winning, We all know if for example an Uptrend trendline is broken then that would mean we have sellers active and that means the trend will go down, however that is not entirely true if it was then we would all be millionaires lol. So in order to fix this and know for sure the trend is changing for real we need to combine both our Trendlines and S&R, as you can see from the chart our uptrend trendline was broken and those who entered immediately after the breakout would have been trapped by professional traders when the price pulled back to their entry points, but to avoid this and get a much better entry that has high accuracy like mine you would also need to use your "visible" support and resistance. As the uptrend line was broken that gave us a sign sellers are active and might push the price down but that is not enough confirmation to sell, unless you want to make a loss obviously💀,If you noticed I also marked my Visible Support(CHANGE OF TREND), since this is the lowest point in the uptrend then we know if price breaks below it then it's a clear confirmation that sellers will overpower buyers and push the price down, our first confirmation was Price breaking the uptrend(not enough to sell), our second powerful confirmation was price breaking below the CHANGE OF TREND, now this shows that bears overpowered bulls causing a CHANGE OF TREND and a much higher winning probability and a much better R:R. I know most people would see this as a late entry, but it's not trust me there's no better entry you can get better than this that has higher chance of winning and a better R:R also less risky. Most people chase the trend instead of waiting for the trend to come to them, that's also why they make many losses because they enter with few confirmations that have low probability
CAPITALCOM:DXYEducation
by StarleXtheTrader
Best GOLD XAUUSD Consolidation Trading Strategy Explained In article , you will learn how to identify and trade consolidation on Gold easily. I will share with you my consolidation trading strategy and a lot of useful XAUUSD trading tips. 1. How to Identify Consolidation In order to trade consolidation, you should learn to recognize that. The best and reliable way to spot consolidation is to analyse a price action. Consolidation is the state of the market when it STOPS updating higher highs & higher lows in a bullish trend OR lower lows & lower highs in a bearish trend. In other words, it is the situation when the market IS NOT trending. Most of the time, during such a period, the price forms a horizontal channel. Above is a perfect example of a consolidation on Gold chart on a daily. We see a horizontal parallel channel with multiple equal or almost equal highs and lows inside. For a correct trading of a consolidation, you should correctly underline its boundaries. Following the chart above, the upper boundary - the resistance, is based on the highest high and the highest candle close. The lowest candle close and the lowest low compose the lower boundary - the support. 2. What Consolidation Means Spotting the consolidating market, it is important to understand its meaning and the processes that happen inside. Consolidation signifies that the market found a fair value. Growth and bullish impulses occur because of the excess of demand on the market, while bearish moves happen because of the excess of supply. When supply and demand find a balance, sideways movements start . Look at the price movements on Gold above. First, the market was rising because of a strong buying pressure. Finally, the excess of buying interest was curbed by the sellers. The market started to trade with a sideways range and found the equilibrium At some moment, demand started to exceed the supply again and the consolidation was violated . The price updated the high and continued growth. Usually, the violation of the consolidation happens because of some fundamental event that makes the market participants reassess the value of the asset. At the same time, the institutional traders, the smart money accumulate their trading positions within the consolidation ranges. As the accumulation completes, they push the prices higher/lower, violating the consolidation. 3. How to Trade Consolidation Once you identified a consolidation on Gold, there are 2 strategies to trade it. The resistance of the consolidation provides a perfect zone to sell the market from. You simply put your stop loss above the resistance and your take profit should be the upper boundary of the support. That is the example of a long trade from support of the consolidation on Gold. The support of the sideways movement will be a safe zone to buy Gold from. Stop loss will lie below the support zone, take profit will be the lower boundary of the resistance. AS the price reached a take profit level and tested a resistance, that is a short trade from that. You can follow such a strategy till the price violates the consolidation and establishes a trend. The market may stay a very extended period of time in sideways, providing a lot of profitable trading opportunities. What I like about Gold consolidation trading is that the strategy is very straightforward and completely appropriate for beginners. It works on any time frame and can be used for intraday, swing trading and scalping ❤️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
4
Mastering MACD- Complete Guide- 10 ways to trade itThe Moving Average Convergence Divergence (MACD) is a versatile indicator that can help traders navigate the markets with precision. From trend identification to momentum assessment, the MACD provides multiple actionable insights. In this educational post, we’ll explore the key ways to use MACD effectively, with an example illustration accompanying each strategy. ________________________________________ 1. Signal Line Crossovers The most common use of MACD is the signal line crossover, which identifies potential shifts in market momentum: • Bullish Signal: When the MACD line (fast-moving) crosses above the signal line (slow-moving), it suggests upward momentum is increasing. This can be an entry signal for a long trade. Bullish crossovers often occur after a period of consolidation or a downtrend, signaling a reversal in market sentiment. • Bearish Signal: When the MACD line crosses below the signal line, it signals downward momentum, often triggering a short-selling opportunity. Bearish crossovers can occur during retracements in an uptrend or at the start of a bearish reversal. How to Use: Look for confirmation from price action or other indicators, such as a breakout above a resistance level for a bullish signal or a breakdown below support for a bearish signal. It's essential to avoid acting solely on a crossover; consider volume (stocks, crypto), candle stick formations and other market conditions. Example: A bullish crossover on the daily chart on TRADENATION:XAUUSD indicates a potential buying opportunity as the price begins to rise. Add a stop-loss below recent lows to manage risk and look for a 1:2 risk:r eward in the next resistance. ________________________________________ 2. Zero Line Crossovers The MACD’s zero line acts as a boundary between bullish and bearish momentum, making it a valuable trend confirmation tool: • Above Zero: When the MACD line moves above the zero line, it confirms an uptrend, as the fast-moving average is above the slow-moving average. Sustained movement above zero often indicates a strong bullish trend. • Below Zero: A MACD line below zero reflects a downtrend, indicating bearish market conditions. Persistent movement below zero confirms bearish momentum. How to Use: Use the zero line crossover to validate trades based on other signals, such as candlestick patterns or trendline breaks. The crossover can act as a second layer of confirmation for existing trade setups. Example: MACD on a crypto pair crosses above the zero line, confirming the start of a new bullish trend. Traders can combine this with volume analysis to ensure strong market participation. ________________________________________ 3. Histogram Analysis The histogram represents the distance between the MACD line and the signal line, offering insights into momentum: • Expanding Histogram: Indicates strengthening momentum in the direction of the trend. Larger bars show increasing dominance of bulls or bears. • Contracting Histogram: Suggests weakening momentum, signaling a possible reversal or consolidation. Smaller bars indicate a loss of trend strength. How to Use: Monitor the histogram for early signs of momentum shifts before a crossover occurs. The histogram can act as a leading indicator, providing advanced warning of potential changes in price direction. Example: A shrinking histogram in a forex pair signals that the bullish momentum is losing steam, warning traders of a possible retracement. This can be a cue to tighten stop-loss levels or take partial profits. Conversely, an expanding histogram during a breakout confirms the strength of the move. ________________________________________ 4. Identifying Divergences MACD divergences are powerful tools for spotting potential reversals: • Bullish Divergence: Occurs when the price makes a lower low, but the MACD forms a higher low, signaling weakening bearish momentum. This often precedes a trend reversal to the upside. • Bearish Divergence: Happens when the price makes a higher high, but the MACD forms a lower high, indicating diminishing bullish strength. This suggests a potential reversal to the downside. How to Use: Combine divergence signals with support or resistance levels to enhance reliability. Divergences are most effective when spotted at major turning points in the market. Example: On a TRADENATION:EURUSD chart, a bearish divergence signals an upcoming price reversal from an up trend to a down trend. ________________________________________ 5. Trend Confirmation MACD confirms trends by staying consistently above or below the zero line: • Above Zero: Indicates a strong uptrend. Look for pullbacks to enter long trades. The longer the MACD remains above zero, the stronger the trend. • Below Zero: Reflects a persistent downtrend. Use rallies as opportunities to short. A sustained period below zero reinforces bearish dominance. How to Use: Use MACD’s trend confirmation alongside other trend-following tools like moving averages or Ichimoku clouds. Ensure that market conditions align with the broader trend. Example: Combining MACD trend confirmation with moving averages helps traders stay on the right side of the trend in a stock market index. For example, buy when both MACD and a 50-day moving average indicate an uptrend. Exit trades when the MACD begins to cross below zero or shows a divergence. ________________________________________ 6. Overbought and Oversold Conditions Although MACD is not traditionally an overbought/oversold indicator, extreme deviations between the MACD line and the signal line can hint at stretched market conditions: • Overbought: When the MACD line is significantly above the signal line, it may indicate a price correction is imminent. This often occurs after an extended rally. • Oversold: When the MACD line is well below the signal line, it suggests a potential rebound. Such conditions are common following sharp sell-offs. How to Use: Monitor extreme readings in conjunction with oscillators like RSI for added confidence. Look for reversals near key support or resistance levels. Example: An extended bearish move with a large MACD-signal line gap warns traders of a potential price correction. This can signal an opportunity to exit. Pair this observation with a bullish candlestick pattern to confirm the move (in this example morning star) ________________________________________ 7. Combining MACD with Other Indicators MACD works best when paired with complementary indicators to provide a more comprehensive market analysis: • RSI (Relative Strength Index): Use RSI to confirm momentum and overbought/oversold conditions. • Bollinger Bands: Validate price breakouts or consolidations with MACD signals. • Support and Resistance: Use MACD signals around key levels for confluence. How to Use: Wait for MACD signals to align with other indicator readings to improve accuracy. Cross-validation reduces false signals and increases confidence in trades. Example: A bearish MACD crossover near a key resistance level reinforces a short-selling opportunity. ________________________________________ 8. Multi-Timeframe Analysis Using MACD across different timeframes strengthens trade signals and provides context: • Higher Timeframe: Identify the broader trend to avoid trading against the market. For instance, if the daily chart shows a bullish MACD, focus on long trades in lower timeframes. • Lower Timeframe: Pinpoint precise entries and exits within the higher timeframe’s trend. The MACD on lower timeframes can help fine-tune timing. How to Use: Align MACD signals on both higher and lower timeframes to confirm trade setups. This alignment minimizes the risk of false signals. ________________________________________ 9. Customizing MACD Settings Traders can tailor MACD settings to suit different trading styles and timeframes: • Shorter Periods: Provide more sensitive signals for scalping or day trading. Shorter settings react quickly to price changes but may generate more false signals. • Longer Periods: Produce smoother signals for swing trading or position trading. Longer settings are less responsive but more reliable. How to Use: Experiment with different settings on a demo account to find what works best for your strategy. Adjust settings based on the volatility and nature of the asset. Example: A scalper uses a 5, 13, 6 MACD setting to capture quick momentum shifts in the market, while a swing trader sticks with the standard 12, 26, 9 for broader trends. Compare results across different markets to refine the approach. ________________________________________ 10. Crossovers or Divergence at Key Levels Combining MACD crossovers with price action levels enhances the reliability of trade signals: • Horizontal Levels: Use MACD signals to confirm reversals or breakouts at support and resistance levels. Crossovers near these levels are often more reliable. • Fibonacci Retracements: You can combine MACD with retracement levels to validate potential entries or exits. Confluence with retracements adds weight to the signal. How to Use: Wait for MACD signals to align with key price levels for higher probability trades. Confirmation from candlestick patterns or volume (stock and crypto) adds further credibility. Example: A bullish MACD divergence aligns with a strong support level, signaling a strong buy setup. Add confirmation with a candlestick reversal pattern, such as a piercing pattern in our case, to enhance precision. ________________________________________ Conclusion: The MACD indicator’s flexibility makes it a must-have tool for traders of all styles. By mastering these strategies and integrating them in your trading, you can elevate your trading decisions. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Education
by Mihai_Iacob
22