This is how you tradethis is not a signal but I'm showing you how I look and treat the chart...
I will publish more tut in the future hope you get benefit of it...
Support and Resistance
dump and pump template after Non farm payrolls. level trading is a great idea for trading when you master it . enabling you to target specific parabolical movements where the market only moves in one direction . No stress trading.
Learn 7 Types of Liquidity Zones in Trading
In the today's article, we will discuss 7 main types of liquidity zones every trader must know.
Just a quick reminder that a liquidity zone is a specific area on a price chart where a huge amount of trading orders concentrate.
Read carefully, because your ability to recognize and distinguish them is essential for profitable trading.
1. Fibonacci Zones
The zones based on Fibonacci levels can concentrate the market liquidity.
Classic Fibonacci retracement levels: 0,382; 0,5; 0,618; 0.786
and Fibonacci Extension levels: 1,272; 1,414; 1,618 attract market participants and the liquidity.
Above, you can see an example of a liquidity zone based on 0,618 retracement level.
The reaction of the price to that Fib.level clearly indicate the concentration of liquidity around that.
Also, there are specific areas on a price chart where Fibonacci levels of different impulse legs will match.
Such zones will be called Fibonacci confluence zones.
Fibonacci confluence zones will be more significant Fibonacci based liquidity zones.
Above, is the example of a confluence zone that is based on 0,618 and 0,5 retracement levels of 2 impulses.
The underlined area is a perfect example of a significant liquidity zone that serves as the magnet for the price.
2. Psychological Zones
Psychological zones, based on psychological price levels and round numbers , quite often concentrate the market liquidity.
Look at a psychological level on WTI Crude Oil. 80.0 level composes a significant liquidity zones that proved its significance by multiple tests and strong bullish and bearish reactions to that.
3. Volume Based Zones
The analysis of market volumes with different technical indicators can show the liquidity zones where high trading volumes concentrate.
One of such indicators is Volume Profile.
On the right side, Volume Profile indicate the concentration of trading volumes on different price levels.
Volume spikes will show us the liquidity zones.
4. Historic Zones
Historic liquidity zones will be the areas on a price chart based on historically significant price levels.
Market participants pay close attention to the price levels that were respected by the market in the past. For that reason, such levels attract the market liquidity.
Above, you can see a historically significant price level on Silver.
It will compose an important liquidity zone.
5. Trend Lined Based Zones
Quite often, historically significant falling or rising trend lines can compose the liquidity zones.
Above is the example of an important rising trend line on GBPJPY pair.
Because of its historical significance, it will attract the market liquidity.
Trend lined based liquidity zone will be also called a floating liquidity area because it moves with time.
6. Technical Indicators Based Zones
Popular technical indicators may attract the market liquidity.
For example, universally applied Moving Average can concentrate huge trading volumes.
In the example above, a floating area around a commonly applied Simple Moving Average with 50 length, acts as a significant liquidity zone on EURJPY.
7. Confluence Zones
Confluence zones are the liquidity zones based on a confluence of liquidity zones of different types.
For example, a match between historic zones, Fibonacci zones and volume based zones.
Such liquidity zones are considered to be the most significant.
Look at the underlined liquidity zone on US100 index.
It is based on a historical price action, psychological level 17000, significant volume concentration indicated by volume indicator and 618 Fibonacci retracement.
Always remember a simple rule: the more different liquidity zone types match within a single area, the more significant is the confluence zone.
Your ability to recognize the significant liquidity zones is essential for predicting the market movements and recognition of important reversal areas.
Liquidity zones are the integral element of various trading strategies. Its identification and recognition is a core stone of technical analysis.
Study that with care and learn by heart all the liquidity types that we discussed today.
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Unlock Winning Strategies: Spot High-Probability Trades!Chart Analysis: XAU/USD (Gold Spot vs. USD)
Based on the two charts you have provided, here is a detailed technical analysis of XAU/USD using price action and chart pattern observations:
1. Weekly Flag Trendline (Higher Time Frame Context)
The upper and lower yellow trendlines represent a possible flag pattern on the weekly chart. This suggests a consolidation phase after a strong impulsive move. A flag pattern typically signals a continuation of the previous trend, which, if the context is bullish, indicates that after consolidation, there may be a continuation to the upside.
On both charts, we can observe that price action is contained within this broader structure, indicating that price is in a correction phase rather than an impulsive phase.
2. Key Horizontal Levels
2,532.144 and 2,506.245: These levels act as strong resistance zones. The price has struggled to break above these levels multiple times, indicating significant selling pressure or profit-taking at these points.
2,471.313: This is a key support level. The price has reacted to this level before and, most recently, has bounced back after testing this support zone. This suggests that buyers are willing to step in at this level, providing a floor for the price.
3. Descending Channel and Price Action Patterns
Descending Triangle/Channel Pattern: On the 15-minute chart, the price seems to be forming a descending triangle pattern (lower highs and a flat support at 2,471.313). This pattern is typically bearish, suggesting a potential breakdown if the support does not hold.
Potential Reversal Patterns: After testing the lower trendline of the weekly flag pattern and finding support at the 2,471.313 level, there was a notable bullish reaction. This can imply a short-term reversal, especially if confirmed by a break above the minor resistance level of 2,494.370.
4. Consolidation Zone and Lower Time Frame Patterns
The 15-minute chart shows a clear consolidation pattern after the sharp decline, with price action currently moving sideways between 2,494 and 2,506. A break above this consolidation range could signal a short-term bullish continuation towards the upper resistance levels, while a break below would imply a continuation of the bearish trend observed previously.
5. Breakout and Pullback Zones
The yellow dotted lines on the 15-minute chart indicate key areas where the price broke out from consolidation phases. These areas are crucial for identifying potential entry points in a trending market. If the price retests these zones and finds resistance or support, they could act as triggers for either continuation or reversal trades.
Trading Strategy Considerations
Bullish Bias: Traders with a bullish bias might consider waiting for a breakout above the 2,506.245 resistance, looking for a confirmation with a pullback to this level as support. The target could be the upper boundary of the flag around 2,532.144 or higher, depending on momentum and broader market conditions.
Bearish Bias: A trader with a bearish outlook might wait for the price to break below the 2,471.313 support level, looking for short positions targeting lower levels aligned with the descending channel's trajectory.
Range Trading: Given the current consolidation between 2,494.370 and 2,506.245, range traders could look for entries at the edges of this range with tight stops and defined profit targets within the range.
Conclusion
Given the price action analysis and current chart patterns, the XAU/USD market appears to be in a consolidation phase within a broader flag pattern. This suggests that while the immediate outlook may be neutral to bearish, there is potential for a bullish breakout if key resistance levels are breached. Traders should watch for confirmed breakouts or breakdowns from these levels to guide their trading decisions, keeping in mind the broader market trend and any fundamental drivers influencing gold prices.
This Simple Strategy Could Make You a Fortune in the Gold Marketprice action of Gold Spot (XAU/USD) in relation to the trendlines and patterns indicated.
Chart Analysis
1. Weekly Flag Trendline:
- The first chart shows a trendline forming a "flag" pattern on a higher time frame (possibly weekly or daily). This flag appears to be a bullish continuation pattern, indicating that after the consolidation within the flag, the price might continue in the direction of the prior trend, which seems to be up.
2. Price Action Inside the Flag:
- Within the flag, there is a period of consolidation marked by the parallel trendlines. The price has been respecting these lines, creating higher lows and lower highs, indicating indecision or preparation for a breakout.
3. Potential Breakout Zones:
- Key breakout zones are marked by the upper resistance of the flag pattern around the 2,530 level and the lower support trendline of the flag around the 2,470 level. A breakout above the upper resistance could signal a continuation of the prior uptrend, while a break below the lower support could indicate a reversal or deeper pullback.
4. Smaller Patterns:
- On the second chart (1-hour time frame), there's a more detailed view of recent price action with a potential bearish flag or pennant forming, suggesting a temporary pullback or consolidation within the larger flag. This smaller pattern appears to be within a trading range bounded by the horizontal support and resistance levels.
5. Key Support and Resistance Levels:
- The charts show horizontal support around the 2,433.301 level, which aligns with a historical low that could serve as a significant support level. Similarly, the resistance level is around 2,530, where the price has repeatedly failed to break above.
6. Current Market Context:
- The price is currently hovering around 2,497, near the middle of the trading range, suggesting indecision. This midpoint could be a neutral zone where the price could move in either direction based on upcoming market momentum or news.
Trading Strategy and Considerations
- Entry Points:
- If considering a bullish scenario, a long entry could be planned near the lower support line of the flag, around 2,470, with a stop loss slightly below the flag's support to manage risk. A breakout above the 2,530 resistance could also provide a good entry point for a continuation of the uptrend.
- For a bearish scenario, a short entry could be considered if the price breaks below the 2,470 support level, confirming a breakdown from the flag pattern.
- Risk Management:
- The proximity of the price to both upper and lower boundaries of the flag pattern provides clear levels for stop placement. This helps in managing risk effectively, keeping losses contained if the trade goes against the initial bias.
- Monitoring Price Action:
- Watch for potential breakouts from the smaller patterns within the flag, as these could provide early signals of the larger move's direction. It would also be essential to keep an eye on volume changes, as increased volume could confirm the validity of a breakout or breakdown.
By aligning your trades with these patterns and key levels, you can take advantage of the potential setups provided by the price action within these consolidating formations. Ensure to adapt to new market conditions and stay disciplined in executing your trading plan.
EWJ - How to identify a plausible targetThis idea is for investors as I'm analyzing the chart in weekly and trying to identify fair targets for a long position. First you need a donchian line which is basically the middle between the highest high and the lowest low during the last 52 weeks.
Using this donchian line (nb. which is part of Ichimoku system as SSB line), you then identify the last "cycle" which is a clear half-wave with well-defined bottoms/tops. Applying the Fibo retracement tool using the top-bottom-top (or bottom-top-bottom) points of the identified wave, you'll end up with a set of Fibonacci levels. The different levels above 1.0 can be used as price targets as shown here.
Best Swing Trading Strategies For Beginners (FOREX, GOLD)
I am going to reveal 3 profitable swing trading strategies for beginners.
These strategies are tailored for trading Gold, Forex or any other financial market.
I will explain entry signal, stop loss and take profit placement for every strategy and share a lot of examples based on real trades that we took with my students.
First, let's discuss key elements that unite these strategies.
1. All the strategies will be trend-following.
It means that the trades will be taken strictly in the direction of the market trend.
2. All the strategies will be daily time frame based.
Daily time frame will be the main time frame for the market analysis.
3. All the strategies are technical analysis strategies.
The decision-making and market analysis will be strictly based on technical analysis: price action, support and resistance.
Strategy 1: Break of Structure Strategy
Break of Structure is a classic swing trading trend following strategy that is based on:
1. Bullish breakout of the level of the last higher high in a bullish trend
2. Bearish breakout of the levels of the last lower low in a bearish trend
In a bullish trend, a bullish violation of the level of the last higher high and a candle close above that is a very strong bullish signal.
It signifies the strength of the buyers and indicates a highly probable bullish continuation.
A perfect entry point after a confirmed Break of Structure is the retest of the level of the last higher high.
Stop loss is 1 ATR.
Take Profit - the next key resistance.
Look at EURCAD pair on a daily time frame.
The market is trading in a bullish trend and we see a confirmed break of structure - a daily candle close above the level of the last higher high.
Here is how the trading position should look.
Take profit is the closest resistance based on a historic price action.
Look how perfectly this trade played out.
In a bearish trend, a bearish violation of the level of the last lower low and a candle close below that is a strong bearish signal.
It signifies the strength of the sellers and indicates a highly probable bearish continuation.
A perfect entry point after a confirmed Break of Structure is the retest of the level of the last lower low.
Stop loss is 1 ATR.
Take Profit - the next key support.
Above, EURNZD is trading in a bearish trend on a daily and we see a confirmed break of structure - a daily candle close below the level of the last lower low.
Here is how a short position looks - entry is on a retest of a broken structure, stop loss is 1 ATR and take profit the closest key support.
163 pips of pure profit were made.
Strategy 2: Trend Line Strategy
Trend Line is a classic swing trading trend following strategy that is based on:
1. Rising trend line based on higher lows in a bullish trend
2. Falling trend line based on lower high in a bearish trend
In a bullish trend, higher lows may respect a rising trend line.
Such a trend line will be a strong vertical support.
It will provide a safe point for buying the market.
Entry will be based on a test of a trend line.
Take profit will be at least the level of the current higher high.
Stop loss will be 1 ATR.
When you are looking for a trend line in a bullish trend, remember a simple rule.
A valid trend line should be confirmed by at least 3 touches and 3 consequent bullish reactions to that.
For example, a rising trend line on a GBPUSD above will be invalid trend line because it is confirmed by just 2 touches.
While the trend line that I spotted on USDCAD is valid, because it was already respected 3 times in a row in the past.
Above is the valid rising trend line based on higher lows in a bullish trend.
Here is how a swing long trend from that trend line should look.
Stop loss is based on 1 ATR. Entry from a trend line.
Take profit is based on the current higher high.
Almost 300 pips were made.
In a bearish trend, lower highs may respect a falling trend line.
Such a trend line will be a strong vertical resistance.
It will provide a safe point for selling the market.
Entry will be based on a test of a trend line.
Take profit will be at least the level of the current lower low.
Stop loss is 1 ATR.
When you are looking for a trend line in a bearish, remember a simple rule.
A valid trend line should be confirmed by at least 3 touches and 3 consequent bearish reactions to that.
The trend line on EURGBP above is invalid because 2 touches confirm it.
While that trend line is valid and confirmed by 3 strong bearish reactions.
In the example above, EURCHF is trading in a long term bearish trend.
Lowers highs perfectly respect a falling trend line.
It can provide a safe entry for swing short trade.
Following the rules of our trading strategy, here is a swing short trade from that trend line.
Stop loss is 1 ATR. Take profit is based on the current lower low.
250 pips of pure profit were made.
Strategy 3: Higher Low / Lower High Strategy
Higher Low / Lower High is a classic swing trading trend following strategy that is based on:
1. The last higher low in a bullish trend
2. The last lower high in a bearish trend
In a bullish trend, the level of the last higher low composes an important horizontal support from where, with a high probability,
a bullish wave may initiate.
This level will provide a perfect entry for swing long trade.
Stop loss will be 1 ATR.
Take profit will be the resistance based on current higher high.
USDCHF is trading in a bullish trend on a daily.
The levels of the last higher low is a perfect point to buy the market .
According to the rules, stop loss is based on 1 ATR.
Take profit is based on the current higher high.
Great winner and nice trade!
In a bearish trend, the level of the last lower high composes a key horizontal resistance from where, with a high probability,
a bearish wave will initiate.
This level will provide a perfect entry for swing short trade.
Stop loss will be 1 ATR.
Take profit will be the support based on current lower low.
Look at EURUSD on a daily.
The pair is trading in a bearish trend.
The level of the last lower high provides a safe point
to sell the market from.
That's how a short position should look based on the rules of the trading strategy.
Stop loss is 1 ATR.
Take profit is based on the last lower low.
Entry is the level of the last lower high.
Target was quickly reached.
All these strategies are very accurate.
It provides good reward to risk ratio and is very easy to understand and apply properly.
Try one of these swing trading strategies and find the one that suites your trading style.
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How I Nailed a Perfect Breakout Trade Using a Simple Strategy*The following Analysis is made by my Trading BOT*
Analysis of Your Trade:
Descending Channel:
Formation and Breakout: The descending channel is well-defined, indicating a corrective phase following an impulsive move. The breakout above the channel suggests a potential reversal or continuation of the prior trend, which appears bullish.
Entry Timing: You entered the trade after the breakout from the descending channel. This entry aligns with a strategy to buy at the break of a corrective pattern, capitalizing on the resumption of bullish momentum.
Resistance Zone (Blue Area):
Initial Resistance Encounter: The blue horizontal line represents a resistance zone where price consolidated and failed to break higher on the first attempt. This is a good spot to watch for confirmation of a breakout or reversal.
False Breakouts: There are some upper wicks visible in this resistance zone, indicating possible false breakouts or liquidity grabs. This suggests that many traders might have been stopped out before the true breakout occurred.
Price Action Post-Breakout:
Sharp Move Down: After the breakout, price made a sharp move down to retest the previous resistance (now turned support), which aligns with the principles of market structure where old resistance becomes new support.
Correction and Continuation: The downward move appears corrective in nature, forming a series of lower highs and lower lows within a descending channel, after which the price breaks out and moves upwards sharply.
Risk and Reward Considerations:
Stop Placement: If your stop loss was placed below the previous swing low or the bottom of the descending channel, this would be a strategic placement to avoid being stopped out by market noise.
Take Profit: Your target seems to be well-placed, considering the previous highs or a key Fibonacci level. The green area likely represents the take-profit zone.
Volume Analysis:
Confirmation with Volume: The volume spike during the breakout from the descending channel and the subsequent move up indicates strong buying interest, which is a good confirmation signal.
Key Takeaways for Future Trades:
Pattern Recognition: Identifying descending channels and their breakouts is a strong skill that can be leveraged in various time frames.
Risk Management: Your trade shows a good understanding of risk management, especially if stops were placed beyond significant levels to avoid market noise.
Confirmation Signals: Waiting for volume confirmation during breakouts is an excellent strategy to avoid false moves.
Suggestions:
Multiple Time Frame Analysis: Ensure that your lower-time-frame trades are aligned with the higher-time-frame trends or setups to increase the probability of success.
Post-Trade Analysis: Continue reviewing your trades like this to refine your entry and exit strategies, especially around key zones like support and resistance.
Identifying Key Support and Resistance Levels: Beginner’s GuideWelcome to the market’s game of zig-zag. On the one side, we’ve got the bulls pulling prices up (doing the zigging), and on the other, the bears dragging them down (doing the zagging). Somewhere in there lies a delicate balance—where prices pause, reverse, or break through. These are support and resistance levels, and if you want to play in the big league and run shoulders with big sho(r)ts, you need to know how to spot them. Let’s dive in.
Support and Resistance: The Basics
Imagine the market as a ping-pong ball bouncing between two invisible walls. These invisible walls are called support and resistance . The floor is support—where buyers step in to catch the fall. The ceiling? That’s resistance, where sellers say, “Not so fast,” and push the price back down. Your job? Figure out where these walls are and use them to your advantage.
Support is the price level where a downtrend could pause due to strong enough demand, or buying momentum. Think of it as a safety net—a level where the price stops its freefall, cushioned by determined buyers.
Resistance is the opposite. It’s the price level where an uptrend might stall because sellers step in, seeing the price as overbought. It’s the market’s ceiling, and breaking through it can be tough.
How to Spot Support and Resistance
Here’s the good news: spotting these levels is easier than you think. Start by zooming out on your chart and identifying where price reversals have occurred. Where has the market consistently bounced up from? That’s your support. Where has it been smacked down? That’s your resistance.
That’s also when everyone becomes a chartist and technical analyst—draw horizontal lines at these levels. And boom, you’ve just identified key support and resistance zones. But there’s more to it than just connecting the dots.
Horizontal Levels: The Classics
The classic way to identify support and resistance is to look for horizontal levels. These are price levels where the market has historically reversed multiple times. If the price has bounced off $50 three times, you’ve got yourself a solid support level. Likewise, if $75 has been a brick wall for the price, it’s a clear resistance level.
Trendlines: The Dynamic Duo
Horizontal lines are great, but what if the market’s trending? That’s where trendlines come in. Draw a line connecting the higher lows in an uptrend or the lower highs in a downtrend. These lines can act as moving support or resistance levels. They’re not just lines—they’re the market’s roadmap. Want to get things even more heated up? Look for channels by identifying the higher lows in the uptrend coupled with the higher highs. Apply the same but in reverse for downtrending markets—lower highs and lower lows is what makes up a channel.
The Role of Volume
Here’s where it gets a little spicy. You have to add volume in the mix. When you see a support or resistance level holding up with high volume, it’s like getting a thumbs-up from the market. If the price breaks through a level with high volume, it’s more likely to keep moving in that direction. Low volume? Don’t get too excited—it could be a fake-out.
Psychological Levels: The Round Numbers Game
Ever noticed how prices tend to stall at round numbers? That’s no accident. Humans love round numbers and the market is no different. Levels like $100, $1,000, or even $100,000 (did someone say Bitcoin BTC/USD ?) often act as psychological support or resistance. It’s not science—it’s market psychology.
How to Trade Support and Resistance
Now that you know where the walls are, or inflection points, let’s talk strategy. Trading support and resistance isn’t about guessing where the market will go—it’s about stacking the odds in your favor.
Buying at Support (DYOR, tho) : When the price pulls back to a support level, it’s a prime buying opportunity. Just remember, you’re not the only one watching this level—fellow retail traders, professional money spinners and lots of algorithms are trained to chase trends. Use additional confirmation, like a bunch of indicators stacked together , before you pull the trigger.
Selling at Resistance (DYOR, tho) : If the price rallies to a known resistance level, it’s time to think about selling. Again, wait for some confirmation—a rejection, bearish pattern, or a volume spike—to avoid getting caught in a breakout.
Breakout Trades (DYOR, tho) : If a price breaks through support or resistance with conviction (read: strong volume), it often leads to significant moves. You can trade these breakouts, but be cautious of false breakouts. Nobody likes getting trapped.
Final Thoughts
Support and resistance levels are like the market’s heartbeat. They reveal where the big players are making their moves and where the action is likely to heat up. Whether you’re looking to jump in or bail out, these levels are your go-to guide. So, the next time you’re analyzing a chart, remember—those lines aren’t just random. They’re the market’s battle lines, and now, you’ve got the intel to trade them.
Let’s wrap this up with some inspiration from legendary trend follower Paul Tudor Jones:
“I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.”
Do you trade with support and resistance levels? Let us know your thoughts in the comment section!
How Spotting Liquidity Can Help Your Trading StrategyUnderstanding where liquidity exists in the market can help enhance your trading success in a few ways:
1. It can help you understand where potential blocks of liquidation could occur. The market is often attracted to these block and will liquidate there.
2. It can help you confirm patterns that exist on you charts
3. It can help you spot new patterns which you may not have spotted previously.
Let's take a quick look at the "Liquidity Swings" indicator by LuxAlgo in this video.
How to Use Fibonacci Retracements to Find Entry and Exit PointsAlright, traders, let’s talk about Fibonacci Retracements — the tool that’s part math, part mysticism, and all about finding those sweet spots for entry and exit. If you’ve ever wondered how seasoned traders seem to know exactly when to jump in and when to cash out, chances are they’ve got Fibonacci retracements in their toolbox (or they’re insider trading).
What Are Fibonacci Retracements?
Fibonacci Retracements are based on the famous Fibonacci sequence — a string of numbers discovered in the 1200s by the medieval Italian mathematician Leonardo of Pisa (later nicknamed Fibonacci, meaning "son of Bonacci"). The sequence of numbers starts with 1, 2, 3, 5 and grows by adding the sum of the two previous numbers.
These mystical numbers show up everywhere from pinecones and seashells to the human hand and the Apple logo and, of course, the charts. It all comes down to 61.8%, the golden child of market moves and corrections. But before you go off believing Fibonacci is some sort of market sorcerer, let’s break it down.
The Key Levels
23.6%, 38.2%, 50%, 61.8%, 78.6% : These are the Fibonacci retracement levels you’ll see on your chart when you whip up the Fibonacci Retracement. They’re acting as the market’s pit stops — areas where the price could take a breather or reverse altogether.
Traders use these levels to predict how far a price might pull back before resuming its trend. Put simply, it’s like finding the market’s sweet spot where it says, “Enough with the chit-chat, let’s bounce.”
How to Use Fibonacci Retracements
Identify the Trend : First, you need a clear trend — trace a price trajectory and make sure there is a well-defined and sustained move either up or down with a clear reversal at the end. No trend? No Fibonacci.
Draw the Retracement : Stretch the Fib tool from the start of the move (swing low) to the end (swing high). If the trend is up, draw from low to high. If it’s down, high to low. Watch as those golden ratios light up your chart like a Christmas tree. Now you’ve got your levels mapped out and you can easily start looking for the potential turning points.
Spot the Bounce : The series of horizontal lines on your chart — these are your Fibonacci levels, and they’re not just pretty—they’re potential support and resistance zones. When the price retraces to a Fib level, it’s decision time. Will it bounce, or will it break? The 61.8% level is the big one — the golden ratio. If the price holds there, it may be a sign that the trend could continue. If it breaks, well, it’s time to reassess. Think of it as the market’s line in the sand.
Finding Entry Points
Here’s where it gets interesting. Imagine the market’s been on a bull run, but then starts to pull back. You’re itching to buy, but where? This is where Fibonacci levels shine.
When the price retraces to a key Fibonacci level (say 38.2% or 50%), it’s like the market is pausing to catch its breath. That’s your cue to consider entering a position. You’re aiming to ride the next wave up once the market finishes its coffee break at one of these levels.
Nailing Exit Points
On the flip side, if you’re already in a trade and looking to lock in profits, those same Fibonacci levels can be your guide for exiting. If the price is approaching a key level from below, it might be time to secure your gains before the market pulls another U-turn.
For the bold and brave, you can even set your sights on the 161.8% level — this is where Fibonacci extensions come into play. It’s a target for when the market decides it’s not just going to bounce, but rocket into the stratosphere.
Pro Tip: Fib Confluence
Looking to up your game? Combine Fibonacci with other indicators like moving averages or trendlines. When multiple signals converge around a Fib level, it may be a strong confirmation that the trend could turn. Pay attention and always do your own research — fakeouts are real.
Why It Works (and Why It Doesn't)
Some say Fibonacci levels work because they’re rooted in natural mathematics. Others believe it’s a self-fulfilling prophecy because so many traders use them. And just like any strategy, it doesn’t work 100% of the time. The market has a mind of its own, and sometimes it just doesn’t care about your Fibonacci levels. But when they do work, they can give you a serious edge.
The Bottom Line
Fibonacci Retracements aren’t just a bunch of lines on a chart — they’re your reminder that maybe everything is indeed one from the universe’s perspective and there are naturally occurring patterns everywhere.
Whether you believe in the math and the or just like the results, one thing’s for sure: Fibs can give you an edge in spotting when to hold back or lean forward. So next time you’re stuck wondering when to buy or sell, try the Fibonacci.
e-Learning with the TradingMasteryHub - 3 Strategies You Need
Welcome to the TradingMasteryHub Education Series!
Are you ready to take your trading to the next level? Join us for another exciting lesson in our 10-part series where we dive deep into strategies that can transform your trading game. Whether you're a beginner or looking to refine your strategy, these lessons are designed to guide you on your journey to mastering the markets.
Three Proven Strategies That Can Make You a Fortune, When You Follow Them with Discipline!
In trading, having the right strategy is crucial, but even the best strategy won’t work if you don’t stick to it. Today, we’re uncovering three live-proven strategies that can potentially lead to massive gains—when executed with discipline and precision.
1. The Trend-Following Strategy: Ride the Waves
Trend-following is all about identifying and capitalising on sustained market movements. This strategy involves buying when the market is in an uptrend and selling when it’s in a downtrend. The key is to use indicators like moving averages and the ADX (Average Directional Index) to confirm the strength of the trend.
The beauty of trend-following lies in its simplicity. By aligning your trades with the market's momentum, you increase your chances of catching big moves. But remember, patience is key. Wait for clear signals before entering a trade, and always protect your position with a well-placed stop-loss to minimise risk.
2. The Breakout Strategy: Capture Explosive Moves
Breakout trading focuses on identifying price levels where the market has repeatedly struggled to break through—these are your key support and resistance levels. When the price finally breaks out of these levels, it often leads to significant moves.
To execute this strategy, use tools like the Volume-Weighted Average Price (VWAP) and Relative Volume (RVOL) to confirm the strength of the breakout. A high RVOL indicates that the breakout is supported by strong market participation, increasing the likelihood of a sustained move. The trick here is to act quickly but carefully, entering the trade as soon as the breakout is confirmed and setting your stop-loss just below the breakout level to protect against false moves.
3. The Mean Reversion Strategy: Profit from Market Extremes
Mean reversion strategies work on the principle that prices eventually return to their average or "mean" after extreme moves. This approach is particularly effective in range-bound markets where prices oscillate between defined levels.
To implement this strategy, you’ll need indicators like the RSI (Relative Strength Index) or Bollinger Bands to identify overbought and oversold conditions. When the market shows signs of exhaustion at these extremes, you can enter a trade expecting a reversal back toward the mean. The key to success here is timing—enter too early, and you might get caught in a continued move against you; enter too late, and the best part of the move may already be over.
The Key to Success: Discipline and Consistency
While these strategies have the potential to deliver significant returns, they only work if you follow them with discipline. That means sticking to your trading plan, setting realistic profit targets, and most importantly, managing your risk. Remember, no strategy is foolproof—losses are part of the game. The goal is to stay consistent, manage your emotions, and keep learning from each trade, win or lose.
Conclusion and Recommendation
These three strategies—trend-following, breakout trading, and mean reversion—are time-tested and can be incredibly profitable when applied correctly. But success in trading doesn’t come from the strategy alone; it comes from the discipline to follow your plan, manage your risk, and stay calm under pressure.
As you incorporate these strategies into your trading routine, focus on maintaining a strong risk/reward ratio and a consistent approach. Over time, this discipline will build the confidence and experience you need to potentially turn these strategies into a fortune.
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Profitable Gold Price Action Strategy For Beginners
To trade this Gold price action strategy, you need to learn just 2 simple things:
support and resistance levels identification
a couple of bullish and bearish price action patterns.
In this article, I will share with you a complete guide for Gold trading with price action and reveal the best patterns for XAUUSD.
Step 1
Your First task will be to execute complete structure analysis on a daily time frame.
It means that you should identify all vertical and horizontal supports and resistances.
From structure supports, we will look for buying opportunities.
From structure resistances, we will look for selling the market.
Above, you can see how a complete Gold support and resistance analysis should look.
Step 2
Patiently wait for the test of one of these structures.
In the example above, we see a test of Support.
Step 3
Your next task will be to look for a price action pattern on an hourly time frame on one of these structures.
You should look for a bullish pattern after a test of a structure support.
You should look for a bearish pattern after a test of a structure resistance.
Here is the list of classic bullish patterns that you should look for:
falling wedge,
bullish flag,
double bottom,
triple bottom,
inverted head & shoulders pattern,
cup & handle,
ascending triangle.
Once you identified a bullish pattern, simply wait for a signal -
with horizontal patterns like a double bottom or cup & handle you should wait for a bullish breakout of its neckline - an hourly candle close above.
With vertical patterns like a bullish flag or a falling wedge, you should look for a bullish breakout of its trend line - and hourly candle close above.
Here is the list of classic bearish patterns that you should look for:
rising wedge,
bearish flag,
double top,
triple top,
head & shoulders pattern,
inverted cup & handle,
descending triangle.
Once you identified a bearish pattern, simply wait for a signal -
with horizontal patterns like a double top or inverted cup & handle you should wait for a bearish breakout of its neckline - an hourly candle close below.
With vertical patterns like a bearish flag or a rising wedge, you should look for a
bearish breakout of its trend line - and hourly candle close below.
Sometimes there will be the situation when you will encounter multiple patterns. The rule is that the more - the better.
Above, we can see 2 bullish patterns on an hourly time frame, after a test of a key daily support on Gold: bullish flag pattern and cup & handle.
The price broke the resistance line of the flag and a neckline of a cup & handle, giving us a strong bullish signal.
Step 4
Open a trading position.
Once you spotted a bearish pattern after a test of a key daily resistance, and a signal - a bearish breakout of a neckline or a trend line, sell Gold on a retest of a broken neckline/trend line.
Stop loss will lie above the highs of the patterns.
Take profit will be the closest 4H support.
Once you spotted a bullish pattern after a test of a key daily support, and a signal - a bullish breakout of a neckline or a trend line, buy Gold on a retest of a broken neckline/trend line.
Stop loss will lie below the lows of the pattern.
Take profit will be the closest 4H resistance.
In our example, a long position was opened on Gold on a retest of a broken neckline of a cup & handle formation. Stop loss lies below the lows, TP based on a 4H resistance.
After some time, the price reached the target!
This Gold price action strategy is simple and very profitable. Try this strategy by your own and good luck in trading Gold!
❤️Please, support my work with like, thank you!❤️
4. e-Learning with the TradingMasteryHub - Risk Management 1x1🚀 Welcome to the TradingMasteryHub Education Series! 📚
Are you looking to level up your trading game? Join us for the next 10 lessons as we dive deep into essential trading concepts that will help you grow your knowledge and sharpen your skills. Whether you're a beginner or looking to refine your strategy, these lessons are designed to guide you on your journey to better understand the markets.
📊 Manage Your Risk with These Three Simple Methods!
In trading, managing risk effectively is crucial to long-term success. Even the best strategies can fail if risk management is ignored. In this session, we'll explore three key methods that every trader should master to protect their capital and stay consistently profitable.
1. Position Sizing: Trade Smart, Trade Safe
Position sizing is the foundation of risk management. I always set a daily and weekly stop-loss limit to ensure that I can recover mentally and financially from any losses. My daily stop-loss is capped at 5-10% of my entire trading account, and I never risk more than 30% of that daily limit on a single trade.
Each trade's risk allocation depends on the quality of the opportunity:
- 5-star setups: Up to 30% of the daily stop-loss.
- 4-star setups: Up to 15% of the daily stop-loss.
- 3-star setups: Up to 5% of the daily stop-loss.
I only trade 4-star setups and above to avoid overtrading and the temptation to jump into random market opportunities. This disciplined approach ensures that I’m only putting my capital at risk when the odds are strongly in my favor.
2. Stop-Loss Orders: Protect Your Trades with Precision
When setting stop-losses, I place them at strategic points highlighted by the market, such as significant support or resistance levels. To avoid premature stop-outs due to market noise, I set my stop-loss beyond the spread and the market’s natural fluctuations. For example, if the FDAX is in an uptrend with the last higher low at 17,000 points and the spread is 15 points, I would set my stop-loss at 16,967 points (17,000 - 15 - 17).
This ensures that my risk/reward ratio (R/R-ratio) is correctly calculated. Before entering any trade, I carefully assess whether the potential upside justifies the risk. If the R/R-ratio isn’t favorable, even for a 5-star setup, I might avoid the trade to protect my capital.
3. Diversification: Tailor Your Strategy to Your Comfort Level
Diversification is another critical aspect of risk management. As a trader, you can choose to focus on a handful of ticker symbols or spread your risk across a broader range of assets. The first approach, trading a few instruments, is easier to manage and ideal for strategies like market profile trading in FX or indices.
Alternatively, you might opt for a more diversified portfolio, trading up to 50 different stocks at once. In this strategy, each trade only represents a small fraction of your total risk capital—such as your daily stop-loss. This minimizes the emotional strain of trading, as each individual trade carries a smaller risk. With a solid strategy, you can manage all trades effectively, spreading your approach across calls, puts, different markets, industries, and volatility levels. However, this approach is typically better suited for larger accounts, where spread costs won’t significantly impact your profits.
🔚 Conclusion and Recommendation
Risk management isn’t just about protecting your capital; it’s about maintaining the psychological stability needed to trade consistently. By mastering position sizing, setting precise stop-loss orders, and choosing the right diversification strategy, you can navigate the markets with confidence and discipline. Remember, successful trading isn’t just about finding the right opportunities—it’s about managing those opportunities wisely to ensure long-term profitability.
By focusing on high-quality trade setups, calculating your risks accurately, and diversifying appropriately, you’ll find that you can maintain your composure even during losing streaks. This approach not only protects your account but also keeps your mind clear and your emotions in check, paving the way for sustained success.
---
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75: Comprehensive Guide to Volume Profiles and Volume in TradingWhat is a Volume Profile?
A Volume Profile is an advanced charting tool that plots the amount of trading activity (volume) across different price levels over a specific period. Unlike traditional volume indicators that only show volume over time, Volume Profiles provide insights into where the majority of trading took place, highlighting key areas of support and resistance, as well as zones of high and low interest among traders.
Key Components of Volume Profiles:
1. Point of Control (POC) : This is the price level where the highest volume of trades occurred. The POC is a crucial level because it represents the price at which traders found the most value, making it a strong indicator of support or resistance.
2. Value Area (VA) : The Value Area represents the range of prices where approximately 70% of the volume was traded. This area is divided into the Value Area High (VAH) and Value Area Low (VAL). The VA is significant because it identifies the zone where most market participants were active, providing a clear picture of market consensus on value.
3. High Volume Nodes (HVN) and Low Volume Nodes (LVN) : HVNs are price levels where there was a large amount of trading activity, indicating significant interest and often serving as strong support or resistance levels. LVNs, on the other hand, represent areas with minimal trading activity, where prices tend to move quickly due to the lack of interest.
The Importance of Volume in Trading
Volume is a fundamental aspect of market analysis, offering insights into the strength and sustainability of price movements. It reflects the level of participation in a market, indicating the intensity of buying or selling at different price levels.
- Confirmation of Price Movements : High volume confirms the legitimacy of a price move. For example, a price breakout from a resistance level on high volume is more likely to be sustained than one on low volume.
- Reversals and Continuations : Spikes in volume can signal potential reversals, especially when occurring at significant price levels such as the POC or near the VA boundaries. Conversely, a sustained high volume along a trend can indicate its continuation.
- Validation of Support and Resistance : Volume at key levels like the POC, VAH, and VAL helps validate these areas as strong support or resistance. When price interacts with these levels on high volume, it suggests that many market participants are active, reinforcing the importance of these price levels.
How to Interpret and Use Volume Profiles:
1. Identifying Key Price Levels :
- The POC acts as a magnet for price, often drawing the price back to it when it moves away. This level is crucial for identifying potential areas of reversal or consolidation.
- The Value Area is where the majority of the trading activity occurs. Prices above the VAH might indicate an overbought condition, while prices below the VAL could suggest an oversold market.
2. Volume and Market Sentiment :
- High Volume Nodes indicate areas of significant interest, where prices tend to stabilize due to heavy trading. These areas often become zones of accumulation or distribution, depending on market conditions.
- Low Volume Nodes indicate price levels with minimal trading interest, where prices may move quickly and encounter less resistance, often leading to rapid price changes or breakouts.
3. Order Flow and Large Volume Blocks :
- Large blocks of volume, particularly at HVNs, suggest the presence of institutional traders or significant market participants placing large orders. These zones are critical because they reflect where big players are accumulating or distributing their positions. As a result, these areas tend to create strong support or resistance levels that can define future market behavior.
4. Dynamic vs. Static Profiles :
- Volume Profile Visible Range (VPVR): This type of profile updates as you scroll through your chart, dynamically showing the volume distribution for the visible price range. It’s useful for analyzing the current market context and finding immediate trading opportunities.
- Fixed Range Volume Profile (FRVP): This profile is static, showing volume data for a specified price range or time period. It’s valuable for comparing current price action to historical data, helping identify long-term support and resistance levels.
Practical Tips for Using Volume Profiles :
1. Customization and Settings :
- Adjust the number of rows or ticks per row in your Volume Profile settings to get a more detailed or broader view of volume distribution. More rows will give you finer detail, while fewer rows will smooth out the data, highlighting major trends.
2. Combining with Other Indicators :
- Use Volume Profiles in conjunction with other technical indicators like moving averages, RSI, or MACD to confirm trading signals and enhance the reliability of your analysis.
3. Adapting to Different Timeframes :
- Tailor your Volume Profile analysis to your trading style. For day traders, shorter timeframes (e.g., 5, 15, 30 minutes) might be more relevant, while swing traders or investors might focus on daily, weekly, or even monthly profiles to identify long-term trends and key levels.
4. Observing Market Reactions at Key Levels :
- Pay close attention to how the market reacts when it approaches HVNs, LVNs, the POC, or the boundaries of the Value Area. These reactions can provide clues about future price movements and potential trading opportunities.
Volume Profiles offer a deep and nuanced view of market behavior by highlighting where significant trading activity has occurred at different price levels. By understanding the interaction between volume and price, traders can make more informed decisions, identify key levels for entry and exit, and gain insights into market sentiment. Integrating Volume Profile analysis into your trading strategy can provide a significant edge, enhancing your ability to navigate the complexities of financial markets.
What is Support and Resistance in Trading. Key Levels Basics
In the today's article, we will discuss the absolute basics of technical analysis: support and resistance levels.
I will explain to you why support and resistance are important , how to identify them properly, and we will discuss what is the difference between support and resistance level and support or resistance zone.
Let's start with a definition of a support .
A support is a historically significant price level that lies below the current prices of an asset.
While a resistance is a historically significant price level that is above the current prices.
From a key resistance, a bearish movement will be anticipated in futures, while from a key support, a bullish reaction will be expected.
Take a look at EURAUD pair, we can see a perfect example of a key resistance level.
2 times in a row, the market dropped from that in the past, confirming its significance.
By a historical significance , I mean that the price reacted strongly to such price level in the past and a strong bullish, bearish movement initiated from that.
Above is the example of a key horizontal support on EURCHF. The underlined key level was respected by the market multiple times in the past.
From time to time, the market breaks key levels.
After a breakout , a support turns into resistance
and a resistance turns into support.
Above is the example of a breakout of a key support on GBPNZD, after its violation it turned into resistance from where a bearish movement followed.
Always remember, that in order to confirm a breakout of a key support, we strictly need a candle close below that.
By the way, the structure here is also the zone, but we will discuss it later on.
Above is the example of a breakout of a key resistance, that turned into support after a violation.
Very often, newbie traders ask me, how many times the price should react to a key level to make it valid.
I do believe that 1 time is more than enough, however, make sure that the reaction to that is strong .
Above are key support and resistance on GBPCAD. Even though both structures were respected just one time in the past, the reaction to them was strong enough to confirm that the underlined levels are the key levels.
However, historical significance of a key support or resistance is not enough to make it valid.
What matters is the most recent reaction of the price to that.
Key supports and resistance lose their significance with time, and your job as a technical analyst, is to stay flexible and adapt to changing market conditions, regularly updating your analysis.
Above is a key resistance level on AUDJPY from where the market dropped heavily 2 times in a row.
However, with time, the underlined resistance lost its significance.
Such a structure is not a key level anymore.
Remember a simple rule: if a key structure is not respected by the sellers, and by the buyers after its breakout.
Or vice versa: if a key structure is not respected by the buyers, and then by the sellers after its breakout.
Such a structure is not a key level , and you should not rely on that in the future.
In our example, the resistance was broken - it was neglected by the sellers. After the breakout, it should have turned into support, but the buyers also neglected that and the structure lost its strength.
Now, a couple of words about time frames,
you can identify key support and resistances on any time frame, but
the rule is that higher is the time frame, more significant are the supports and resistances there.
In my analysis, I primarily rely on support and resistance on a daily time frame.
Always remember that the financial markets are not perfect and the prices will quite rarely respect the exact support or resistance levels.
Quite often, the markets may fluctuate around key levels so it is highly recommendable to rely not on single key levels but on zones.
I recommend taking into consideration not only the exact level from where a strong reaction followed, but also a candle close level of such a candle.
The support zone above is based on a wick and a candle close of a candle.
Also, quite often there will be the situations when multiple key levels will lie close to each other.
In such a case, it is better to unite all this structures in one single zone.
Above we see multiple key resistances.
We will unite all these resistances into one single zone. The upper boundary of a resistance zone will be the highest wick and its lower boundary will be the highest candle close.
Above we have 2 key supports lying close to each other.
We will unite these supports into one single zone.
The lower boundary of a support zone will be the lowest wick and the upper boundary will be the lowest candle close.
Here is how a complete structure analysis should look.
Following the rules that we discussed, you should identify at least 2 closest key resistances and 2 closest key supports.
These structures will be applied as the entries for various trading strategies.
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Profitable Triangle Trading Strategy Explained
Descending triangle formation is a classic reversal pattern . It signifies the weakness of buyers in a bullish trend and bearish accumulation .
In this article, I will teach you how to trade descending triangle pattern. I will explain how to identify the pattern properly and share my trading strategy.
⭐️ The pattern has a very peculiar price action structure :
1. Trading in a bullish trend, the price sets a higher high and retraces setting a higher low .
2. Then the market starts growing again but does not manage to set a new high, setting a lower high instead.
3. Then the price drops again perfectly respecting the level of the last higher low, setting an equal low .
4. After that, one more bullish movement and one more consequent lower high , bearish move, and equal low .
Based on the last three highs , a trend line can be drawn.
Based on the equal lows , a horizontal neckline is spotted.
❗What is peculiar about such price action is the fact that a set of lower highs signifies a weakening bullish momentum : fewer and fewer buyers are willing to buy from horizontal support based on equal lows.
🔔 Such price action is called a bearish accumulation .
Once the pattern is formed it is still not a trend reversal signal though. Remember that the price may set many lower highs and equal lows within the pattern.
The trigger that is applied to confirm a trend reversal is a bearish breakout of the neckline of the pattern.
📉Then a short position can be opened.
For conservative trading, a retest entry is suggested.
Safest stop is lying at least above the level of the last lower high.
However, in case the levels of the lower highs are almost equal it is highly recommendable to set a stop loss above them all.
🎯For targets look for the closest strong structure support.
Below, you can see the example of a descending triangle trade that I took on NZDCAD pair.
After I spotted the formation of the pattern, I was patiently waiting for a breakout of its neckline.
After a breakout, I set a sell limit order on a retest.
Stop loss above the last lower high.
TP - the closest key support.
90 pips of pure profit made.
Learn to identify and trade descending triangle. It is one of the most accurate price action patterns every trader should know.
Importance of zones!Hey traders, here is a great example of why I set specific zones for all my trades. When I do my analysis for the day, I create zones based off of strict support and resistance zones and trend line breaks as well. These zones and all my trades are based off the daily candle close. I choose to drop down to the 15 min chart but you can just go off the 4hr chart if it’s easier but you might not get as many trades. I always shoot for 5 pips but 8 out of 10 times price moves way farther. With 3 crazy kids I have to set targets and they are either gonna hit or stop out. I really hate losing so I try my damn best to make sure momentum is in my favor. For my trade set ups, typically what I would like to see is a daily candle closing bearish and the 4 hour candle closing bearish and vice versa. Discipline is a major key factor in my trading strategy something that I have acquired over the years. Stick to the plan and WAIT FOR IT! OANDA:CADCHF I could have 20 great trades lined up for the day and not one of them break my zone. It’s ok though, there’s always tomorrow. If price doesn’t break my zone by the end Tokyo session I’m out cuz the London session is just a bully that likes to go the opposite direction. I also cleaned up my chart so it’s easier to read both for you and myself. If I ever post an idea, I might just post my trade then go back into the comments and explain the details later. Happy trading. Aloha and much love
Divergence: RSI vs. PriceHey everyone!
In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE!
Today, I took some time to put together an Educational Video on:
1) What a Divergence Is?
2) How to Spot them!
&
3) How to Trade them!
I hope you find this helpful!
**Tips
- Divergence is never good enough to trade alone, YOU NEED CONFIRMATION!
- The longer the Divergence takes, the more reliable it is
- Change in Momentum is KEY!
Learn How to Apply Top-Down Multiple Time Frame Analysis
In this article, we will discuss how to apply Multiple Time Frame Analysis in trading .
I will teach you how to apply different time frames and will share with you some useful tips and example of a real trade that I take with Top-Down Analysis strategy.
Firstly, let's briefly define the classification of time frames that we will discuss:
There are 3 main categories of time frames:
1️⃣ Higher time frames
2️⃣ Trading time frames
3️⃣ Lower time frames
Higher Time Frames Analysis
1️⃣ Higher time frames are used for identification of the market trend and global picture. Weekly and daily time frames belong to this category.
The analysis of these time frames is the most important .
On these time frames, we make predictions and forecast the future direction of the market with trend analysis and we identify the levels , the areas from where we will trade our predictions with structure analysis .
Above is the example of a daily time frame analysis on NZDCAD.
We see that the market is trading in a strong bullish trend.
I underlined important support and resistance levels.
The supports will provide the safest zones to buy the market from anticipating a bullish trend continuation.
Trading Time Frames
2️⃣ Trading time frames are the time frames where the positions are opened . The analysis of these time frames initiates only after the market reaches the underlined trading levels, the areas on higher time frames.
My trading time frames are 4h/1h. There I am looking for a confirmation of the strength of the structures that I spotted on higher time frames. There are multiple ways to confirm that. My confirmations are the reversal price action patterns.
Once the confirmation is spotted, the position is opened.
Analyzing the reaction of the price to Support 1 on 1H time frame on NZDCAD pair, I spotted a strong bullish confirmation - a triple bottom formation.
A long position is opened on a retest of a broken neckline.
Lower Time Frames
3️⃣ Lower time frames are 30/15 minutes charts. Even though these time frames are NOT applied for trading, occasionally they provide some extra clues . Also, these time frames can be applied by riskier traders for opening trading positions before the confirmation is spotted on trading time frames.
Before the price broke a neckline of a triple bottom formation on an hourly time frame on NZDCAD, it broke a resistance line of a symmetrical triangle formation on 15 minutes time frame. It was an earlier and riskier confirmation to buy.
Learn to apply these 3 categories of time frames in a combination. Start your analysis with the highest time frame and steadily go lower, identifying more and more clues.
You will be impressed how efficient that strategy is.
Ex. Averages interactionsHow trendlines averages interact with price, and can make(be/show) support, resistance, trends, and how crosses can signal moves.
The averages at the end, show memory of price in time, when you find something expensive or cheap over time, having the earlier prices as base for your(traders) sentiment.
After that you will have another feelings like greed or fear etc etc.
Unlock the Secrets of Gold Trading: Pericles' Ancient WisdomIn this video, we explore the profound perspectives on fear from historical figures like Pericles and modern thinkers like Ryan Holiday. Pericles, the esteemed Athenian statesman, saw fear as a natural emotion that should not paralyze us. He believed in confronting fear with courage, rational thought, and strategic planning, using it as a tool for effective decision-making.
Ryan Holiday, drawing on Stoic philosophy in his works, echoes these sentiments with stories of historical figures who turned fear into fuel for success. He recounts how John D. Rockefeller faced market crashes with calm calculation and how Theodore Roosevelt overcame health challenges by embracing adversity.
Both Pericles and Holiday teach us that fear, when managed correctly, can become a powerful ally. By acknowledging fear, confronting it with rationality and courage, and using it to sharpen our focus and strategy, we can transform challenges into opportunities for growth and success. This approach is especially relevant in the realm of trading, where mastering fear can lead to better decision-making and greater resilience.
Key Levels and Patterns:
Higher Highs (HH) and Higher Lows (HL):
The chart shows a series of higher highs (HH) and higher lows (HL), indicating an overall uptrend. This pattern suggests that the bullish momentum is still in play.
Ascending Channel:
There is a well-defined ascending channel where the price has been moving upwards within parallel trendlines. This channel can act as a guide for potential support and resistance levels.
Reversal Points (LQZ):
1-Hour LQZ / Reversal Point: Located at 2,429.190. This level is a potential area where price may reverse or find support.
4-Hour LQZ / Reversal Point: Located at 2,391.394. This level also serves as a significant support zone.
Take Profit (TP) Levels:
TP 1: 2,319.385
TP 2: 2,288.085
TP 3: 2,265.369
Recent Price Action:
The price recently reached a higher high at around 2,458.755 and then pulled back slightly, indicating a potential short-term correction within the overall uptrend.
The ascending channel suggests that if the price remains above the lower boundary of the channel, the uptrend is likely to continue.
If the price breaks below the 1-hour LQZ / Reversal Point at 2,429.190, it could test the 4-hour LQZ / Reversal Point at 2,391.394. A further breakdown below this level might lead to the next support at TP 1.
Analysis Summary:
Bullish Scenario: The price could bounce from the current levels or the lower boundary of the ascending channel, aiming for new highs. Traders might look for buying opportunities near the support levels of the channel and reversal points.
Bearish Scenario: If the price breaks below the identified reversal points and the ascending channel, it might signal a deeper correction, potentially heading towards the TP levels for possible buying opportunities at lower prices.
By applying Pericles' wisdom of confronting fear with rationality and Ryan Holiday's insights on turning fear into strategic advantage, traders can approach these levels with a clear, disciplined mindset, making informed decisions even in volatile market conditions.
Best Price Action Pattern For Beginners to Start FOREX Trading
There are a lot of price action patterns:
wedges, channels, flags, cup & handle, etc.
If you're just starting out your Forex journey, it's natural to wonder which one to trade and focus on.
In this article, I will show you the best price action pattern for beginner s that you need to start forex trading. I will share a complete trading strategy with entry, stop and target, real market examples and useful trading tips. High accuracy and big profits guaranteed.
The pattern that we will discuss is a reversal pattern.
Depending on the shape of the pattern, it can be applied to predict a bearish or a bullish reversal.
Its bearish variation has a very particular shape.
It has 4 essential elements that make this pattern so unique:
A strong bullish impulse,
A pullback and a formation of a higher low,
One more bullish impulse with a formation of an equal high,
A pullback to the level of the last higher low.
Such a pattern will be called a double top pattern.
2 equal highs will be called the tops ,
the level of the higher low will be called a neckline .
Remember that the formation of a double top pattern is not a signal to sell. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium.
Your confirmation will be a breakout of the neckline of the pattern.
Its violation is an important sign of strength of the sellers and increases the probabilities that the market will drop.
Once you spotted a breakout of a neckline of a double top pattern,
the best and the safest entry will be on a retest of a broken neckline.
Target level will be based on the closest support.
Stop loss will lie above the tops.
A bullish variation of a double top pattern is called a double bottom.
It is also based on 4 main elements:
A strong bearish impulse,
A pullback and a formation of a lower high,
One more bearish impulse with a formation of an equal low,
A pullback to the level of the last lower high.
2 equal lows will be called the bottoms ,
the level of the lower high will be called a neckline .
The formation of a double bottom pattern is not a signal to buy. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium.
Your confirmation will be a breakout of the neckline of the pattern.
Once you spotted a breakout of a neckline of a double bottom pattern,
the best and the safest entry will be on a retest of a broken neckline.
Target level will be based on the closest resistance.
Stop loss will lie below the bottoms.
Double top & bottom is a classic price action pattern that everyone knows. Being very simple to recognize, its neckline violation provides a very accurate trading signal.
Moreover, once you learn to recognize and trade this pattern, it will be very easy for you to master more advanced price action patterns like head and shoulders or triangle.
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