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Technical Analysis

How To Have An Edge Over The Markets 📚Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Today I want to share a basic trading plan that you can follow to quantify your trading edge. 📌 Step 1: First, start from the higher timeframes like Daily/Weekly to identify the current long-term trend. is it bullish, bearish or stuck inside a range? If the price is sitting in the middle of nowhere, then it is a NO trade zone as price has 50% change to go either up or down. Thus no edge! 📚 Wait for the price to approach the lower bound or upper bound. Then proceed to Step 2 📌 Step 2: No matter how strong a horizontal / non-horizontal support or resistance is, it can still be broken. Thus don't buy/sell blindly as price approaches a support/resistance. Instead, zoom in to lower timeframes like H1 and M30 to look for setups. 🏹A basic approach would be to wait for a swing low to be broken downward around a resistance as a signal that the bears are taking over. In parallel, wait for a swing high to be broken upward around a suppor t for the bulls to take over. This would be the confirmation to enter the trade. Of course, your second edge would be through risk management by targeting at least double than your indented risk. But that's a topic for another post 😉 Always follow your trading plan regarding entry, risk management, and trade management. Hope you find the content of this post useful 🙏 All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
41
What I've learned after backtesting So, I love backtesting. Recently I've found my self in a 3% drawdown and needed to figure out what the cause of it was and trading at this moment won't give me that answer. So, I decided to backtest. Here is what I found: 1. I'm overtrading my system I am a proud swing trader who got back into scalping the market in December 2022. It was mot my idea, but I thought I could handle it. I started out great, but then the market reminded me why I left the lower timeframes. 2. I'm not holding my trades long enough. Thanks Prop Firms! Since joining a prop firm my mind has been changed to holding trades for less time than I normally would. I don't mind holding trades for weeks or months, but prop firms give you time limits during evaluation periods. That was and still is a huge adjustment for me. Being a swing trader means I have to let my profits run. So, now, I've found a prop firm that will allow me to hold my trades with no time limits. 3. Not holding trades to my weekly and monthly targets. I need to see past my daily targets. Normally my daily risk to rewards are between 1:1 and 1:2. I'm in drawdown because I'm not recovering from my losses with these risk to rewards. So now, I'm only taking trades with RR over 1:2 and better. This way I'm trading less, holding longer(sometimes), and getting the best bank for my buck. Backtesting helped me see my mistakes and how to correct them. This is called fixing your strategy. Notice how I'm not changing my strategy. I'm tweaking my strategy to fit my mental capacity and trading style. If you find you're in a drawdown and can't see, stop trading and backtest what you're currently doing and find a way to stop the behavior thats causing your drawdown. Then, stop doing that particular thing so you can see better results. I pray this has helped you. Let me know your key takeaway by commenting below.
Education
by ShaquanLopez
53
TECHNICAL ANALYSIS is the new KING ok here me out. i'll go straight to point this message is for the newbies (oldies gonna hate) what is pure Minimalist Technical Analysis Trader ( MTAT : i just made this up) -it is when u leave out all so-called indicators and focus on the chart -some of these indis are: MACD, RSI, ATR, STOCHT.... -it's when u leave out the FUNDAMENTAL analysis and focus on the chart pattern - i'm talking here about financial news and garbage flash news - didn't u sometimes realize that a news come out, but the dollar act contrary to the news it-self? HOW TO APPLY this MTAT ? let's be practical, but first u need to watch so many charts until ur eyes pops out (it's a prerequisite). 1- always pick a 4h-time frame chart 2- always brush ur teeth before bed time 3- always look for a bullish pair to trade (this is essential for the plan to succeed) 4- after identifying the bullish pair, start looking for SUpport & Resistance...but never make the chart too complicated, u really need like 2-4 lines drawn only 5- after u draw the S&R lines, look for retracements (the pair is going down slightly) 6- use the FIBONACCI drawing tool and draw from the lowest to highest point (before the retracement) 7- it's best to focus on the 61.8% line 8- look for a confirmation candle: a- a red Bar, which the low point of it touched (crossed) the 61.8% Fib line b- followed by a green bar which closed ABOVE THE fib 61.8% line c- place ur buy trade when the green candle closes 9- how to set your target: a- use the (-61.8% or -100%) FIb levels or b- use the Resistance line u drawn previously now the question is, do u really need MACD or RSI or STOCH? of course NO, if you google it, u'll know that these reflects previous price actions? so why use it for FUTURE price actions? what to do when big news are coming out? IT WILL ACT ACCORDINGLY THE PREVIOUSLY SET CHART PATTERN...this will never fail you DO YOU PLACE STOP ORDERS? NEVER, never put pre-set stop orders, you should be active on ur screen and wait for the price to fall to the price u set as a stoploss, AND CLOSE TRADE MANUALLY WHY?, because when we have big news, we have volatility the pair will go up and down so hard to close all stoploss orders then it will continue to obey the technical chart pattern as a fukn slave! let's practice: use the FIB Ret tool: identify the red and green candle: place your buy order: et voila.... #STOP_BEING_POOR
XEducation
by meez_PremiumNOT
2
TOP 5 Price Action Secrets You Must Know 🔴Multi-candle patterns are more reliable The more candles a specific pattern contains, the more reliable it usually is. 3 candle patterns are better than single candle patterns. 30 candle patterns are usually better than 3 candle patterns. Patterns like head and shoulders, double and triple tops are among my favorites, exactly because of this reason. They consistently result in higher probability trades, which is what we’re all after. It doesn’t mean that a good pin bar setup won’t work, it just means there’s a higher probability of having these multi-candle setups resulting in a winning trade. 🟠Know where to place your stop loss Knowing where to place an order is just the beginning. Where do you place your stop loss? Fixed pips stop loss levels are hardly a good approach since the market volatility can change and every trade should be looked at within the context of the recent market history. 🟢Always look for confluence This is absolutely one of the most important secrets you have to know about. Confluence is everything. So you’ve found a sweet price action setup. Great! Now make sure it has confluence, meaning that it coincides with other valid signals that support your trading idea. 🔵Tell a story of what happened Every chart tells a story. It might be a story of clear direction or a story of messy back-and-forth battling between buyers and sellers. In a similar way, we can talk about clean price action vs messy price action. It is up to the trader to find the story and better understand what the market might do. 🟣Context is everything Depending on where a price action setup occurs, you should interpret it differently. The same pin bar could be bullish or bearish, depending on if they show up at the bottom of a downtrend or top of an uptrend, respectively. Not all patterns are also worth taking if they are not preceded by the right price action and happen at the levels that are in one way or the other of significance. 🟤Identify key support & resistance zones Support and resistance (or S&R for short) are terms used to denote areas where price reverses at its lowest point (support) and the highest point (resistance) on a chart. Often, these zones are “tested” multiple times as traders look for an increased buyer and seller activity around these levels. It’s important to note that support and resistance are usually not thin lines, but rather zones. 🔴The Bottom Line The price action strategy is one of the most powerful tools for extracting money from the markets with predictability and manageable risks, but only if used correctly. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
15
🛠️ Trading Tools Cheat SheetFibonacci Levels, Pitchfork, Fibonacci Arcs, Gann Square, Gann Fan, and Elliot Wave are technical analysis tools used in trading to identify potential levels of support and resistance, anticipate future price movements, and make informed investment decisions. These tools are based on mathematical calculations and relationships between price, volume, and time. They are widely used by traders to gain insights into market trends and make investment decisions based on past market data. However, it's important to note that these tools are not a guarantee of future performance and can produce false signals, so they should be used in conjunction with other forms of analysis and with a solid understanding of market dynamics. 🔹 Fibonacci Levels A technical analysis tool that uses horizontal lines to indicate areas of potential support or resistance based on the Fibonacci sequence. 🔹 Pitchfork A technical analysis tool that uses three parallel lines to identify potential levels of support and resistance and to anticipate future price movements. 🔹 Fibonacci Arcs A technical analysis tool that consists of several curved lines that originate from two extreme points (high and low) and converge at the fibonacci levels. 🔹 Gann Square A technical analysis tool that uses a grid to identify potential support and resistance levels and to predict future price movements based on the relationship between time and price. 🔹 Gann Fan A technical analysis tool that uses diagonal lines to identify potential levels of support and resistance and to anticipate future price movements. 🔹 Elliot Wave A technical analysis tool that tries to identify patterns in financial market data, particularly in stock market prices, which in turn can be used to make investment decisions. It's based on the idea that market prices move in predictable waves. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
9
How To Find Trend Trading OpportunitiesTrend trading is a style of trading. It specifies what you are looking for when trading a specific market. Style Trend trading sets you on a path to looking for a clear and defined uptrend and downtrend. Anything outside of that realm is no longer considered trending. A clear uptrend defines price forming a path of repetitive high prices called higher highs (last highest price to buy an asset before price declined) and higher lows(last discounted price to buy an asset before the price increased). While a clear downtrend defines price forming a path of repetitive lower prices called lower highs (last highest to buy an asset before price declines to a new discounted price) and lower lows(last highest(cheapest) price to buy an asset before price increased.) If you desire to be a trend trader you want to see the market creating a clear and defined uptrend or downtrend to call it an opportunity. Ignore the drama The next best thing to do is to avoid assets that are not trending. I prefer to trade the forex market. So, if I see any currency pairs absent of a clear trend, I immediately move on to the next pair. It's better on my mind to wait for my opportunity than to create one out of thin air. The more pairs that are not trending the better. This way, I have a small group of currency pairs to watch and trade. Limit the small mindset I have no idea what trades will win or lose. When I'm in my right frame of mind I don't think about the opportunity not working instantly. Which is why I swing trade. I like to lose my money slowly vs. fast as a day trader. It helps me stay clear of telling myself I'm wrong on a daily basis. I found I focus better on the outcome of the trade when I remind myself the market will tell me that I'm wrong. This way, as every outcome plays out I can handle each winning trade and losing with little emotion as possible. Is this always easy to do? Nope! I'd dare not fool you. But it does make it easier to setup for the next series of trades when I only focus on my "trend trading" opportunities. Quick recap You'll do better to find trend trading opportunities by focusing solely on currency pairs that are trending and ignoring the ones that are not. Its wise to limit your mindset by believing you're wrong choosing to trend trade. Let the market tell you when your setup is wrong vs. you telling yourself you're wrong before the trade plays out. This allows you to focus on the outcome of the trade to being overly emotional. I really hope this helps and that you were able to find a gentle takeaway. If you enjoyed this read, please like the post and comment on what your takeaway was. Happy trading 🧡 Shaquan
Education
by ShaquanLopez
5
Learn to Read the Strength of the Candlestick | Trading Educati What it is? Candlestick rejection strategy is a pure price action swing trading strategy. It makes use of the concept of price rejection or candlestick rejection patterns to invalidate counter-trend momentum for a trade continuation. By applying such candlestick rejection strategy onto swing trading, it allows trades to capture spots at which market prices are at rest during retracements before rejoining back the existing dominant trend. How to use? Some trade recommendation for such candlestick rejection strategy is to use it as a candlestick rejection pattern on counter-trend moves. This means that we pick candlestick rejection pattern only for the sake of searching for breakout continuation with the dominant trend at counter trend waves.Entry can be made after the breakout occurs at the high or low of The Mother Bar and stop loss order can be placed at the opposing breakout side's high or low. Further trade help can also be incorporated to help increase the trade's probability of success. For instance, it can be used together with other technical tools such as dynamic moving averages and Fibonacci retracement tool. Some may even want to consolidate other trading strategies to further increase trade’s probability of success. ✅LIKE AND COMMENT MY IDEAS✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
5
What are Blockchain Transaction FeesBlockchain transaction fees are very essential method for cryptocurrency trading platform. This transaction fees obviously divide to the miner and validator as reward and commission who help to protect the network from spam and malvare attacks. Transaction fees can be small or large amount depending on the network . Market pressurize to increase the price and influence when you demanding is occurring high. Low fees could be be effect on the security concern.
Education
by carripayvideos1988
Types of Gaps !!!👨‍🏫Hello👨🏻‍🏫, dear traders from all over the world🗺️. I'm Pejman🙋🏻‍♂️ & welcome🌸 to one more educational adventure🧭 in Tradingview, but we will not be traders💹 today; We want to look at our charts like a hunter🏹. We look for every clue🐾 we see so that we can hunt suitable positions💱 like valuable creatures💰 and transfer them to the cages as our accounts💳 or wallets💸. Although I'm not too fond🙍🏻‍♂️ of hunting, either legally or illegally. But I know that hunting good positions in the forests🏞️🌳 of Tradingview is not prohibited😉❗. So let's get acquainted with these clues🔎 as soon as possible because the price is skittish🙈, and we don't want to waste the hunting time⏳✅. I said that in Technical Analysis , we look for ways to trade by using the price information, which is recorded on the charts📈. (such as the prey's tracks🔎🐾) Today I want to introduce one of these clues so that you can become a professional position hunter🏹 by identifying the clues👀; But don't forget that you should practice🙌🏻, be careful⚠️, and watch your positions👀, so you don't miss them or rush 🏎️💨to the wrong❌ position🙂. Today's clue is the GAPS . First, let's see what the GAP is🤔. The gap is nothing. I mean, it is something that is nothing😶🙄. It is incredibly paradoxical💥! I'm kidding😉, but the space between candles🕯️ or bars is called a GAP. A gap is created when we see👀 a price gap between two candles🕯️ or bars when the trading volume is high⏫ or low⏬. This difference or space between two candles is called a gap🤏🏻. It is said that gaps are more valuable✅ in higher time frames among the traders, so much coin, much care👀. Gaps, or as the Japanese🎌 term "windows," are significant for hunting🏹 positions, so as hunter traders, we should learn these gaps well👌🏻. The reason🧐 for creating gaps can be factors such as important positive🆒 or negative🙈 news or an increase🔺 or decrease🔻 in supply and demand. It is interesting to know that gaps are primarily seen in Forex , Stocks , and Commodities (especially when markets close and open). The space👌🏻 between the candles means that the price has jumped like a rabbit🐰 from one number to the upper☝🏻 different number. Or, like a monkey🐒, it moved from one number to a lower👇🏻 number. I tried to make it funny😊 and straightforward👌🏻, but these gaps that move up or down have different types, like the year's seasons🌈☁️. We have 4️⃣ seasons in a year and also 4️⃣ types of gaps in the charts. According to personal taste😊, I relate the gaps to the year's seasons and, simultaneously, do not forget the case of hunting positions🏹💰. So fasten your seat belts💺 because we want to travel in time🧳⏳ to all the year's seasons with this post🚩 and learn about the different price gaps, which are one of our clues🐾 to trap positions🪤. Let's start with the autumn🍂 season because we are still in it and can understand it better😌. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The name of this type of Exhaustion 🥱 gap. They are seen at the end🔚 of a process, which means that the process may change🔄 at any moment. Just like the autumn🍁 season, it may rain☔ anytime after seeing the clouds🌥️. Another feature of this gap is the increase🆙 in trading volume, so by paying attention👀 to these points and practicing by reviewing the charts📈, you can easily recognize🔎 this gap. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The next💁🏻‍♂️ gap is the Breakaway 🏃🏻‍♂️ gap. The breakaway gap is associated with an increase⤴️ in trading volume. This gap occurs when a critical range is broken🤞🏻, representing a strong💪🏻 start🏁 trend or a sign of trend change. Like the blooming🏵️ of some trees🌳 in winter☃️ or the sprouting🌱 of plants from under the snow❄️. Also, This gap is created when the price starts moving from a limited area, like support or resistance ( I'm going to talk about them in the future😉. ) I have to say that the breakaway gap plays a critical👌🏻 role in some of the classic reversal patterns, such as the Head and Shoulders Pattern , Double Top/Bottom Patterns , etc. When The breakaway gap is combined with Classic Reversal Patterns, the breakaway gap adds to these patterns' validity✅. If you want to get acquainted with the most important Classic Reversal Patterns of Technical Analysis , I suggest you read the following post👇. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now it's time for spring🌸🍀, and I'm going to introduce a gap like spring. Spring season is a sign✌🏻 of the continuation of life💐, and this gap in technical analysis shows the continuation of a trend📈. The Continuation gap is also known as a Runaway 🏃🏻‍♂️ gap, occurring in the middle of a downward↙️ or upward↗️ trend. This type of gap creates a kind of confidence for traders to enter. It doesn't occur when the price fluctuates or corrects in a limited area but occurs during a rapid increase or decrease. So, as a result ☑️, if this gap occurs in an upward trend🔺, it indicates the continuation of the upward movement. And when it is created in a downward trend🔻, it indicates the entry of more sellers and further price decline. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now we have reached✌🏻 the last gap🥰. This gap is Common , but I should introduce it as the summer☀️ season. These gaps are very common, And considering the time frame it has, it is expected to fill quickly, which is also called "closing the gap." The filling or closing of the gap means that the price returns🔁 to the same area where the gap was created, like a criminal returning to the crime scene😄. This can be true✅ for gaps as well. Time flies in summer🏝️, and Common and Exhaustion 🥱gaps fill as soon as a blink👁️. You may have heard👂🏻 that gaps are always filled, but this is not permanent🙅🏻‍♂️ and only a strong possibility🤏🏻. For example, Continuation 🏃🏻‍♂️ & Breakaway gaps usually take a long time⌛ to fill. But what if the gap doesn't close🤷🏻‍♂️? Go to any currency pair and examine👀 the recorded data🗄️; You will find that many gaps take a year or more to close. It is interesting😃 to know that the Japanese🎌 have another interpretation of the price gap. They use gaps as continuation and reversal trading patterns (as I said, I'll explain them in future posts🔜😉). It is interesting to know that the combination of gaps can create the Island reversal pattern. The Island pattern consists of two gaps ; One up⬆️ and one down⬇️. We will definitely✅ learn more about these patterns in the following posts🔜, but today we are only focusing on the gaps🧐. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Another thing I want to add➕ is about the Heikin-Ashi charts💹 that we learned about in the previous post🔙. Gaps are filtered❌ in Heikin-Ashi charts. As I said, in this chart, the average is displayed between two✌🏻 consecutive candles; even candlestick patterns are filtered❌. So, the type of chart is also essential👌🏻 for finding gaps. Well, I gave you the basic tips to identify these gaps🤏🏻, and now you can carefully look👀 for them in your charts💹. Practice this information for a bit, as I will be back soon🔜 with an educational post👨🏻‍🏫 on how to trade💰 with these gaps. If you have any questions❓, you can ask me💬. We will get acquainted with new clues🔎 in new posts, so until that day, take care of your knowledge📊 and increase it every day📈, because according to Kofi Anan: Knowledge is power💪🏻, and information is liberating. Education📚 is the beginning of progress in every society🏙️, in every family👨‍👩‍👧‍👧. I hope you become stronger🙌🏻 daily by using your knowledge, and I will also increase your progress by teaching you the introduction. I wish🙌🏻 you happiness, health😍, and success😎.
Education
by pejman_zwin
39
Charts Museum!!!👨‍🏫Hello, my dear traders🙋🏻. Welcome🌸 to the Charts section📈. My name is Pejman, and this is the Museum🖼️ of Technical Analysis in Tradingview. I'm your tour leader on this visitation, and we will get to know all the Charts well together📊. I'll provide the necessary information about each Chart and answer your questions✅. 🚫So during this tour, please don't eat🍟or touch the charts🙅🏻😄. But it would help if you tried everything you learned at home.👍🏻😉 And if you have any questions, ask me in the comments👨‍💻. In the previous post, I reviewed the life story of technical analysis💹. I said that the best friend of technical analysis was the Chart📉, which didn't separate from technical analysis all these years🤝🏻. On the other hand, I said that fundamental analysis was closely related👥 to the Chart and fundamental information was also present in the charts. So the Chart plays a significant👌🏻 role in the market. (Definitely, the monitor🖥️ plays an essential role in using the computer🧑🏻‍💻 otherwise, we should all look at our motherboards💽😄.) If you're a beginner and want to join us, read the previous post so that you can take the critical steps in learning technical analysis one by one.📃 Now, let's start this post with an example.😊 Each book can contain different information, but the amount of information obtained from each book is different and depends on you.📖 For example, maybe an adult learns valuable information about life from a children's storybook and likes that. Or perhaps a child, despite his age, will relate to a science book about astronomy and like it.👨‍🔬📕 So the amount of information we get depends entirely on us.💁 Regarding the charts, each Chart, like any book, gives us different information, but what you get from each Chart or which type of Chart you are comfortable with is entirely up to you.🙇‍♂️ So, like a good bookseller, I have to tell you all the information about my books so you can use the book that suits you.😉 But ultimately, the choice is yours. The customer is always right. 😂👌 So let's start this tour right away because learning the charts is one of the essential steps in this path.🏃‍♂️ ------------------------------------------------------------------------------------------------- The information about a price or stock can be displayed using different charts📊, and in the Tradingview platform, it is possible to use the best charts and even customize them🔧⚙️. Charts are traders' working tools, like a painter👩🏻‍🎨 who paints with his tools🖌️🎨. Everyone likes to have the best tools🛠🥇. In the TradingView platform, you can adjust your tools in any way you like👨🏻‍🔧. On the other hand, if you get a Pro+ or Premium account, you can use most of the features for charts.✅️ In the following, we will get to know these features and facilities🙆🏻‍♂️. Before starting the explanation, I used SWOT to easily understand the content in each chart, and I tried to share the information simply and based on the existing facts.💁‍♂️ SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis facilitates a realistic, fact-based, and data-driven examination of information strengths and weaknesses.📈📉 We will check these characteristics in all the charts. So let's dive into the types of charts, learn about their advantages & disadvantages, and even compare them with each other. 👇 Let's go through the chart types in order of Tradingview's formation. ----------------------------------------------------------------------------------------------------- Bars Chart :📊 The Bar Chart is very similar to Candle charts in terms of the information it provides. This chart shows us information using horizontal and vertical lines. Bar Charts give us four types of information about an asset. This information is called OHLC , in which O means the Opening price, H is the Highest price, L signifies the Lowest price and C represents the Closing price of a bar in a time frame.💵 Each vertical line represents price changes over a time frame. The horizontal lines on the left indicate the bar's opening price, and the horizontal line attached to the bar on the right side shows the closing price of that bar.➡️ Also, other information is obtained by continuing the vertical lines from above and below. When a bar has an extra line at its bottom, that means the end of this line represents the bar's lowest price. The upper line also represents the highest price in that time frame. Finally, I want to say that bars charts and candles chart may seem a bit complicated, but they can reduce our trading mistakes with the information they provide.🙅‍♂️ For sure, choosing which type of chart you can trade better with is entirely up to you. In the Tradingview platform, you can change the colors of the bars and customize your chart. 🔁 I have to say that this option is not available on some platforms, and if you can’t see the colors & the chart is only seen in black, using this chart will be a bit confusing.😟 ----------------------------------------------------------------------------------------------------- Candles Chart :🕯 You might have seen the Candles chart or heard their name. This type of chart has become the most popular among traders. What do you consider is the cause of the popularity of this type of chart? Now that it's time for the most popular chart among traders let me talk more about the advantages and disadvantages of this chart. However, certain things about this chart have made it the most popular chart. Candles are like the scoreboard of a stadium, which shows the result of the match between buyers and sellers in a time frame. Candles have a body & a wick like a real candle, and these wicks show the same highest and lowest price in a time frame. The body of the candle also indicates price changes. If the color of a candle is red, the price has decreased from the time of opening to closing. And on the contrary, if the candle is green, the price closed higher than when it was opened. In my opinion, this type of price display has a better visual effect. It can be an essential reference for making trading decisions, guessing the next candlestick, continuing a trend, or finding the reversal trend. Candlesticks can form patterns alone or in pairs that help us predict the subsequent movements of the chart. Candlestick patterns are either a continuation of a trend or reversal patterns, which generally have more number and variety and are even more helpful. If you need to become more familiar with reversal candlestick patterns, check out the post below. Also, most indicators work best with candle charts. If indicators are relevant to a particular trading system, often candlestick charts are required. Candlestick charts display who controls a market or market sentiment over a given time frame. Through various candlestick patterns and formations, such as the Doji Patterns, etc. A trader can assess the overall bias over a specific time horizon. Overall, Japanese candlesticks are clear, simple, and easy to describe. But definitely, there are some disadvantages. One of these disadvantages is Apophenia(A tendency to relate unrelated things to each other). It is a mental bias to see patterns in things that are accidental. Our brains want to see patterns, and so they do. We are also looking for meaning, so we find meaning in meaningless things. By combining technical analysis, we see patterns in random data and attach importance where there is none to said data. Candlestick charts are great for this trap. When I was a beginner and couldn't control my emotions, I often saw trends the way I wanted to & this was far away from logic. You can escape these emotional traps by practicing and studying to decide with logic and thinking. Don't worry; as I said, you can count on my help because we will travel together on the technical analysis training road. ----------------------------------------------------------------------------------------------------- Hollow Candles Chart : This chart looks very similar to the Candles chart, but it may look a little more complicated, and as a beginner, you may need help understanding the meaning of these candles at first glance. The system and function of candlesticks & hollow candles are entirely the same, and the difference between them is their appearance. But still, I will write some points about this chart. This chart shows OHLC the same as Candles and Bar charts, but on some platforms, it may be seen in colors other than the default colors (green and red - black and white). But in general, this chart will show the price fluctuations entirely, and because of the similarity to the candle chart, it is less used. ----------------------------------------------------------------------------------------------------- Column Chart : As you can see, this chart consists of colored rows. For example, the green row indicates a price increase, and the red row shows a decrease. It may give us incomplete information for trading, but if you want to compare statistics with each other or get information quickly and with a simple glance, these charts are suitable. ----------------------------------------------------------------------------------------------------- Line Chart : I want to examine the Line chart, which is the simplest type of Chart.➡️ A line chart consists of points connected by a line, and these points only represent the final price ( closing price ) of a currency or share. This Chart can be suitable for comparing the information with each other at a superficial glance because it doesn't have any extra data. Apply two line charts on top of each other and see correlations between different assets. Line charts are less used for trading; Because a line chart consists of points connected by a line, and these points indicate the closed price in a time frame and give us less information. There are some other charts similar to line charts that are suitable for comparing information, which I will discuss below. ----------------------------------------------------------------------------------------------------- Area Chart : This Chart shows the changes in one or more sets of data and can be checked with other variables, but usually, the second variable is time, and the price is measured relative to time. This Chart will be suitable for comparing two or more charts. I put the advantages and disadvantages of this chart in the picture like other charts. ----------------------------------------------------------------------------------------------------- Baseline Chart : You may have noticed the similarities and differences between this chart and the Line and Area charts. The Baseline chart looks similar to the above charts but with different levels; it provides us with more information than these two charts. By default, there is a hypothetical line, as the average price line in the middle of this chart. When the area is green, the price is above the average level, and if the area is red, the stock or currency is traded below the average price level. You can adjust the baseline level. This level has a comparative aspect, and this type of chart is very suitable for checking the market's fluctuations. ----------------------------------------------------------------------------------------------------- High-Low Chart : This chart provides us with more information than the line and area chart. But this chart is not complete and does not show the opening or closing price & it only expresses the price changes from the lowest to the highest amount in a time frame. ----------------------------------------------------------------------------------------------------- Heikin Ashi Chart : The Heiken Ashi chart is well-known among traders, like the candles chart, and was first used in Japan. By filtering price fluctuations and averaging between two consecutive candles, this Chart makes it easier to identify trends and helps traders avoid market excitement. Take a look at the below chart to get to know this type of chart better. I have to say that this chart type is helpful in the stock market and commodity market, which is associated with more gaps because they determine the price direction without gaps. So if you feel it can be useful for you, test this chart along with your other strategies. ----------------------------------------------------------------------------------------------------- Renko Chart : This type of chart does not pay attention to time, so the time axis is not present in its structure. This chart consists of sections called bricks or blocks, for which the amount of price change is determined, and the minor changes are not taken into account. Each block shows a price move covering a user-defined number from the recent close. If the user selects ten numbers, each block will represent a ten-number movement in either direction. New blocks will only form when the price moves by the set amount of numbers. However, these can be tricky because more price movement can happen than expected. The Renko chart is one of the oldest and most famous Japanese charts. You can use this chart any time frame if you have a Pro + or Premium account on the Tradingview platform. Otherwise, you can only have this chart in the daily time frame. ----------------------------------------------------------------------------------------------------- Line Breaks Chart : These charts are excellent indicators of momentum. Each bar is called a "line," A new line will form if the new closing price is higher than the current close or the new close is lower than the last 3 bars. You can change this number to any number of lines in the past. But the most popular number among traders is "three lines in the past." For this reason, this chart is also known as three broken lines. ----------------------------------------------------------------------------------------------------- Kagi Chart : Now it's the turn of a fancy line chart with a formula. The Kagi chart works established on price and discounts the time axis. Think of it as someone's finger showing you, "We reached -this- high & then -this low” 😂. Kagi lines do not reverse unless the price changes the minimum amount. However, what defines what gets plotted is if the price moves by more than a specified percentage from the most recent close. The color of the lines will change based on new highs and lows. If the new high is higher than the previous high, the color changes to green & if the new high is lower than the previous one, it would be red, signaling weakness in price. ----------------------------------------------------------------------------------------------------- Point & Figure Chart : Point and Figure charts were initially developed as a price recording system and later became technical analysis charts. Before computers entered the world of Technical Analysis, this chart was widely used. Still, fewer people use it these days due to the complexity of understanding this chart and the limited information it provides. These charts are like Renko blocks. The X's denote bullish moves, and the O's designate bearish moves by a set number. All the rules involved in Renko blocks apply here; however, these charts look additional. These simple charts focus only on significant price movements and completely filter out noises (minor price movements). The unique aspect of these charts is that, unlike Candles, Line, and Bar charts, the time isn't directly considered in the chart. Sometimes we can obtain good results and price targets from these charts, which are sometimes very special and significant. So if you are curious to learn point & figure charts do more research (remember to practice a lot😊. ----------------------------------------------------------------------------------------------------- Range Chart : The last chart of this museum is another chart related to the price movement. This chart may look like a bar chart, but I have to say that it's not. It contains some of the information that the bar chart had. If you add this chart, you will see that it has a different time frame than other charts. 100 ranges; As the name indicates, it includes 100 of the latest price movements you can see in different time frames. But, it has more than 100 ranges, and you can determine the number of these movements, which varies from 1 to 1000.
Education
by pejman_zwin
41
Technical Analysis !!!👨‍🏫Hello, my trader friends🙋🏻. I want to tell you the story of Technical Analysis, its advantages & disadvantages. We're even gonna learn about its branches. Like any other science, Technical Analysis has come a long way, and it's still evolving. But why should we learn it and know it well?🤷🏻 When you're trading, you may be afraid or greedy. But how do professional traders control these two?🤔 Let me start with a simple example. If someone turns off the lights & challenges you in a new room, you will feel scared or lack confidence because you don't know that place. But if the challenge happens in your bedroom or home🏡, you'll feel more powerful 💪🏻 and confident because this environment is familiar & you can act better.✅ Fear is caused by the unknown. When you don't know this market, you can't get good results (or at least permanent good results). So follow this page to conquer all the peaks⛰️ of Technical Analysis together🙌🏻 and learn from A to Z of it. Also, I'm a fellow traveler on this route🛤️, not your tour guide. So, if you have any questions, ask me in the comments💬. My trader fellas, let's take one step👣 at a time because taking long and hurried steps will only hit you harder. I'm with you in all these steps🪜 & get started with the first type of market analysis. Technical Analysis is old. I mean, it's almost 300 years old📜, but it doesn't like to talk about its age, so we couldn't find the exact information about its birth date🗓️😑. Maybe it’s from Japan⛩️🎌 and was born in the 18th century, or perhaps its date of birth is in the Middle Ages. But there is some more information that I'm sure about. For example, in 1879, the Technical Analysis found a friend by the name of Chart📈, and they have not separated until today. Let's skip this story and be serious☺️. Technical analyzers believe that everything is in the Chart. In Technical Analysis, there is all the necessary information for trading, such as entry points, exit points, market volume, stock prices in the past and present, etc. (The Chart is a complete encyclopedia for Technical analyzers!!🤦🏻😶 ) There is another type of analysis that examines the available information about a stock (from the founder of a stock or company to the cost and income and even the company manager's records), called Fundamental. But the Technicalists say that even some of the Fundamental information is in the Chart! 😐 Overall, Technical and Fundamental are both complementary to each other and opposite to each other. But both are related to the Chart. (These three have a complicated relationship; I mean, there is a love triangle, so we should stay out of it !!🤫😂 ) Let's skip the joke. All these things are just like the gears⚙️ of a car, but it's not enough. You need to follow more rules in the market to pass the finish line🏁 with your trading car🏎️ . Don't worry cause I'm gonna tell you everything you need to know to win🏆 this trade racing with your strategy car. Now that we have learned a little about the history of Technical Analysis, it is better to learn about its contents. The price chart, our most important resource and tool in Technical Analysis, consist of the price-time, Charts, and Candles. But these candles🕯️ existed 100 years before bar and dot charts.📊📉 In 1700, a Japanese man named Huma realized that the price of rice depended on the emotions of traders in addition to supply and demand. Candles show these feelings with their colors. For example, the green candles🟢 show trust and good feelings among people who invested in a stock.🤑 But red candles🔴 indicate doubts or hopelessness of people about a stock, and they sell it.😞 I don't know why I remembered Moody's octopus doll🐙 :) But candles tell you the feelings of other traders just like these dolls. But only its color is not essential. Can you guess the other important factors about candles? I will tell you the rest of them soon.😉. Have you heard that history repeats itself? By looking carefully🧐 at the old charts, some creative people found that the prices behaved similarly to their past. They realized that the candles make interesting shapes next to each other, and they made these shapes repeatedly in different periods.🔁 They formed different geometric shapes and patterns & continued to make these shapes until today :) Let's accept that the Chart is creative and artistic! 🎨🖌️😊 For example, they found a shape called a Head & Shoulders Pattern. This type of pattern will cause a downward trend⤵️ in the Chart. I tried to find it & place it on someone's Head & Shoulders to remember it better. 😁 Many patterns can be found in any chart, and I have already taught the reversal patterns in my previous posts, But I want to go over all the patterns in detail again in the future, so let's dive into the other contents of Technical Analysis.👇 Using formulas, mathematical🧮 ratios, and advanced calculations, indicators were created that can generally show the market's present and past and give a relative opinion about the future (Please don't get the indicators wrong with magic 8 ball🎱 or Professor Dumbledore's wand✨. ) Let's be serious about it. Maybe you know that indicators depend on the two factors of time and place of price. In terms of time🕦, they are divided into two categories: leading and lagging. In terms of price movement💹, they are divided into three categories: trend indicators, oscillators, and volume indicators. The indicator that I made the above meme for is a leading oscillator. Now it’s time to go for the other various tools that are made by using numbers🔢 and people’s actions in the market. A person named Nelson Elliott made a useful tool, although, after his death, many people worked on this tool and improved it until today it reached us, but we are going to discuss it better in the following posts like the rest of the contents of Technical Analysis.😉 But I have to say Elliot believed that the market is not disordered and always repeats a repetitive cycle, and Eliot called these repeated movements waves. According to him, if you can perfectly identify the repeating patterns in the price, you can predict how the price will change (or not change) in the next phase. Eliot published his experiences and theories in a book called the waves principle, which I recommend if you want to get good information in this field; it's better to start from the origin of this theory. I think there is no better definition for the word "Wave" than sea waves🌊, and I tried to draw Elliot waves like sea waves reaching the shore. 🏖️ In the end, I want to say that whatever style of analysis you have or whatever type of Chart you use, in the future, this machine will not go the right way without following a series of principles. Suppose you have the best car in the world, but you neither know how to drive nor the rules. It can be guessed that you will either crash with someone or break the car💥. You should have risk management along with your trading system, and don't forget that no trading system is perfect.🙅🏻 It is better to try each method on demo accounts before making real trades. Of course, you can count on me and ask any questions you may have.🙂💭 In the following posts, I’ll talk more about the things that have been said and introduce you to good trading systems that can be obtained from any method. I'm by your side so that if you are a beginner, you can find your own way, and if you know the market, we can learn the basics of this market better & together🤝🏻. Wish you happiness, health & success guys🙋🏻.
Education
by pejman_zwin
75
Best Indicator for Crypto TradingBest Indicator for crypto trading is RSI ( Relative Strength Index ) is very necessary for technical analysis . Mostly traders observe the previous market volatility and predict future trends . All cryptocurrencies are run by blockchain technology so traders use this tools to analyses the markets fluctuation. There are many indicator for crypto trading but the relative strength index (RSI) is very popular. It's was launched in 1970s. A tool for traders that can use to observe how market perform and trend . It’s measure the volume and velocity of price momentum and velocity of candles movement. The RSI is very helpful tool and very popular among the professional traders. This is new concept of technical analysis and price predication of future market Work of RSI Indicator RSI is best indicator tool for crypto trading. This type of technical analysis trading tool which observe the quantitative of volume and price fluctuation in crypto trading. When momentum increases and price also increases and it gives signal that trade is being ready for buy in market. If trend signs bearish or market fluctuate downside that indicates that market is ready for sell because selling pressure is very high. Visit for more information.
Education
by carripayvideos1988
1
Trading With Robots (EA) | Your Pros & Cons 🤖 Hey traders, Trading robots are commonly perceived as a sort of magic button. Once it is clicked, the system starts trading automagically, generating consistent profits. What can be better? However, many pitfalls are hidden behind its simplicity. In this educational article, we will discuss the advantages and disadvantages of trading with Expert Advisers (EA) / robots. Let's start with the positives ➕: The first major advantage of EA is the fact that it works 24/7, without delays and coffee breaks. Once it is launched, it will keep working till you stop it. The second advantage of EA is that it is non-emotional and objective. It strictly follows the algorithm and rules determined by a program. It is not influenced by psychological biases, making each trade extremely precise. The third strength of trading robots is the processing speed and its limitless scalability. EA can monitor dozens of trading instruments on multiple time frames simultaneously, not missing any bit of information. Hence, it requires less time for decision-making and trade execution. The fourth advantage of EA is the simplicity of its backtesting. Once the algorithm is written and the order execution rules are described, they can be quickly and easily tested on a historical data. So far, sounds like a panacea, right?! But now, let's discuss the negatives ➖: Similar to any software, app or program, the EA is vulnerable to bugs, and may occasionally lag. Therefore, it requires a constant oversight and maintenance. In order to fix the bugs and maintain that, a high level of experience is required. One should have the advanced skills both in coding and in trading. Moreover, admitting the fact that the market is constantly changing and evolving, one should regularly update the EA and adapt it. In comparison to humans, trading robots are not learning, they do not evolve themselves. Leaving the robot without supervision, updates and patches, it may blow the entire account in a glimpse of an eye without any embarrassment. One more important thing to add about EA, is the fact that it is technical analysis based. For now, there are no solutions on the market that would allow the integration of fundamentals in the algorithm. Unfortunately, most of the traders overestimate the strengths of trading robots, completely neglecting its obvious weaknesses. If you decide to apply EA in trading, always consider its pros and cons that we discuss in the post. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
8
Why patience is sometimes the best trading strategy.I recently did a video to highlight the key levels to watch on the S+P. There is a convergence of resistance at 4017/83 (this is the location of the one-year downtrend, the 55-week ma and nearby resistance). I explained that success or failure at this key zone would be critical for direction over the next few months and this zone should go on your radar. I was accused of sitting on the fence and not giving a view. That was actually deliberate, for while I acknowledge that the overall trend is down and in theory ‘the trend is your friend’ and the market should fail here… there are 2 things on the chart which are nagging at me. The first is that despite a plethora of resistance this market is not backing away and the second is that I have a buy signal on the DMI indicator (admittedly the ADX is NOT above 25 so it is not a decent buy signal) BUT the +DI remains stubbornly above the -DI…..mmm…sometimes your best friend is actually your gut, or for me, 35 years of looking at charts gives me enough reason just to be cautious. So, at current levels there is not enough reason to cut out any long-term short positions (the downtrend and resistance remains intact after all) BUT I also cannot jump up and down and say this is a good buy either (as I say that pesky resistance remains) so from my point of view the safest way to trade is to sit tight until the chart gives you another signal. Call this sitting on the fence if you must, but sometimes the best trade is just patience. Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
SP:SPXEducation
by The_STA
Learn a Triple Top Pattern | Classic Reversal Pattern You Must 🟢What is the Triple Top Pattern? A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with three peaks above a support level/neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. The formation of this pattern is completed when the prices move back to the neckline after forming the third peak. When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed. 🟢Trading the Triple Top There are some rules when trading the Triple Top chart pattern. ✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend. ✔️Traders should spot if three rounding tops are forming. ✔️Traders should only enter the short position when the price breaks out from the support level or the neckline. 🟢Stop Loss In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern. 🟢Price Target The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
11
Leverage in Forex Trading | Your Main Tool “Leverage” means using a small amount of your own money in order to control a much larger amount of money. Typically, you borrow the remaining amount through your broker. For example, say you want to control a $50,000 position. Your broker might put aside $500 of your own money and borrow the remainder. You now have control over the $50,000 with just $500 from your own account, so your leverage ratio is 100:1. Now, let’s say the $50,000 investment rises by $500, so the full position is now worth $50,500. If you were liable for the full $50,000 (representing a 1:1 ratio), this is only a 1% return on your investment. However, since you only put in $500 of your own capital, the $500 increase represents a 100% return on your investment – that’s way more exciting! Now, it’s important to understand that this cuts both ways. If you lost $500 instead of gaining $500, you would see a -100% return on your investment. Yikes! If you had a 1:1 ratio and put in the full $50,000 you would only see a -1% return. How Much Can You Leverage in Forex? Before you open an account with a broker, you’ll want to check the maximum leverage ratio that you’ll be able to use. The higher the ratio, the bigger your potential gains or losses. Brokers will usually offer 50:1, 100:1, 200:1, or 400:1 ratios. A typical ratio on a standard lot account is 100:1, and a mini lot account will often offer a 200:1 ratio. If you start trading at 400:1, be wary of using small deposits to control large capital, as these can disappear quickly with the volatility of large sums. Lower leverage keeps you safer from mistakes, while higher leverage could bring in higher rewards. How Leverage Affects Your Trading ✅ As we’ve seen, leverage is a powerful tool that can help you win big in the forex market. You can use less capital to control greater positions, giving you flexibility and amplifying your profits. However, it can just as easily amplify your losses. At very high levels, leverage starts to damage your odds of success. Transaction costs represent a higher percentage of your margin the greater your position is. This means that transaction costs already put you at a disadvantage with excessively high leverage. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
61
Head and Shoulder and Inverse Head and Shoulder differencehello dear traders, Here are some educational chart patterns that you must know in 2022 and 2025. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. What is the head and shoulders pattern:- The head and shoulders pattern is used in technical analysis. This is a typical chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outer two are close in height, and the middle is the highest. The head and shoulders pattern is formed when the price of a stock rises to a peak and then retraces to the base of the previous up-move. Then, the price rises above the previous peak to form a "head" and then back to the original base. Finally, the stock price reaches the level of the formation's first peak before turning down again. The Head and Shoulders pattern is considered to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal with varying degrees of accuracy that an uptrend is nearing its end. Formation of the pattern:- Left shoulder: Price rise followed by a price peak, followed by a decline. Head: Price rise again forming a higher peak. Right shoulder: A decline occurs once again, followed by a rise to form the right peak, which is lower than the head. What Is the Inverse Head and Shoulders Pattern:- inverse head and shoulders, also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of security meets the following characteristics: the price falls into a trough and then rises again; the price falls below the former trough and rises again; Finally, the price falls again but not to the second trough. Once the final trough is formed, the price moves upwards towards the resistance found near the top of the previous trough. Formation of the pattern:- Left shoulder: Price declines followed by a price bottom, followed by an increase. Head: Price declines again forming a lower bottom. Right shoulder: Price increases once again, then declines to form the right bottom. Advantages and Disadvantages of the Head and Shoulders Pattern:- Advantages:- Experienced traders identify it easily Defined profit and risk Big market movements can be profited from Can be used in all markets Disadvantages:- Novice traders may miss it Large stop loss distances possible Unfavorable risk-to-reward possible Advantages Explained:- Experienced traders identify it easily: The pattern is very recognizable to an experienced trader. Defined profit and risk: Short and long entry levels and stop distance can be clearly defined with confirmation openings and closings. Big market movements can be profited from: The timeframe for a head and shoulders pattern is fairly long, so a market can move significantly from entry to close price. Can be used in all markets: The pattern can be used in forex and stock trading. Disadvantages Explained:- Novice traders might miss it: The head and shoulders pattern may not present with a flat neckline; it may be skewed, which can throw off new traders. Large stop loss distances possible: Large downward movement over long timeframes can result in a large stop distance. The neckline can appear to move: If the price pulls back, the neckline might be retested, confusing some traders. Trade with care. If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
COINBASE:BTCUSDEducation
by CryptoSanders9563
8 Best Bearish Candlestick PatternsHello dear traders, Here are some educational chart patterns you must know in 2022 and 2023. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. bearish candlestick pattern:- Bearish candlestick patterns are either a single or a combination of candlesticks that usually point to lower price movements in a stock. They typically tell us an exhaustion story — where bulls are giving up and bears are taking over. Many of these are reversal patterns. Hopefully, at this point in your trading career, you’ve come to know that candlesticks are essential. Not only do they provide a visual representation of price on a chart, but they tell a story. Behind this story is the belief that the chart tells us everything we need to know: what is more important than the why. Each candlestick represents buyers and sellers and their emotions, regardless of the underlying “value” of the stock. Check out our cheat sheet below and feel free to use it for your training! How to trade bearish candlestick patterns:- The best way to trade bearish candlestick patterns is by combining them with price action trading strategies. For example, if you study price action strategies like reversals or pullbacks, you can add bearish candlestick patterns to your repertoire as a way to predict future price movements. Obviously, the prediction for a bearish candlestick pattern is to the downside. For this reason, it would behoove you to understand how to short sell, or to use these bearish strategies to know when to take profits or expect pullbacks in your long positions. Using Bearish Candlestick patterns to buy/sell crypto:- Generally, we like to use bearish candlestick patterns to sell cryptos. This is because they provide us with a defined area of risk with a defined reward. For example, you will see in a moment the 8 bearish candlestick patterns that we describe below. Each one provides a trigger for your entry and allows you to set your maximum exposure above the pattern. This is an easy way to manage risk when you let candlestick patterns run. It can also give you a potential target for your entry. Another way to use bearish candlestick patterns to buy/sell crypto is to use them as sell signals. In other words, if you are long and you see a bearish candlestick pattern, you know it is time to reverse. This can give you confidence in some of your profit before the reversal. Which Candlestick patterns are bearish?:- 1. The Shooting Star 2. Bearish Engulfing Crack 3. Bullish Engulfing Sandwich 4. The Evening Star 5. Tweezer Top 6. Dark Cloud Cover 7. Shrinking Candles 8. Hanging Man 1. The Shooting Star:- Candlestick pattern names usually describe a visual representation of something in real life. The Japanese were fond of naming them that way. It is like the falling of falling star from the height of the sky. The crypto experiences one last attempt to push higher, only to reverse itself. Hence the name, Shooting Star. It goes up, only to fall back down. Entry More aggressive traders can anticipate a reversal in the form of a candle. Otherwise, you can wait until the shooting star closes, enter, and set your stop at the top of the shooting star candle. shooting star example BTC provided a great example of this pattern during the recent intraday session. Note that the trend was clearly up and continuing to expand. The stock makes an extreme push to new highs, then reverses on increased volume. Also, notice the second inverted candlestick beyond the shooting star. It retracts a bit into the shooting star's wick. This is a great example of why your stop/risk should not be too close or wait for the entry of another candle. For a more nuanced look at this pattern, read How To Trade Using The Shooting Star, 2. Bearish Engulfing Crack:- This inverse pattern can be seen in a variety of contexts. This can happen at the open or in an extended uptrend. The thesis behind the pattern points to strong supply levels that completely fend off bulls' attempts to push a stock higher. Result: The price opens above the previous candle, then a selling force begins. The body of the candle completely "swallows" the previous candle, and it should close below. Entry Based on experience there can be some discretionary entries on this pattern. If supply is clearly visible, aggressive traders may choose to enter during the formation of a candle. This is more than an advance entry. If trading "by the book", you may want to wait until the new low is confirmed, then enter on the next candle. Ideally, you want to either trade in the direction of the larger trend or enter as an overbought trend reversal. Set your stop at the body of the candle or at the high of the candle depending on its range. Bearish Engulfing Example A perfect example of this bearish candlestick pattern on the BTC 5-minute chart. Note that the crypto is trending down from the pre-market. It is also struggling with the VWAP, the red indicator line on the chart below. Off the open, crypto tries to push higher, but we see some selling pressure in the upper wick of that first green 5-minute candle. Then the price moves down, smoothly taking that candle down. This opening is also a great example of a range breakdown. Think in terms of effort versus result. Effort (volume) increased and the result (price) was a full retracement to the downside (link to effort/result). This gives us the confidence to go lower, taking on higher risks. 3. Bullish Engulfing Sandwich:- Don't be confused by the name. It is also called a "stick sandwich". This is not a bullish pattern in this particular scenario. The point here is that the "bullish" engulfing candle in the middle of the pattern is "sandwiched" by bearish candles. In this example, it takes more than one supply candle to overcome demand. It takes three or four candles for the pattern to be confirmed. First, you have a bullish engulfing candle (as opposed to the bearish engulfing candle we just identified above). Then, instead of confirming the new high, the crypto reverses again. Entry Entry occurs when the breakdown is confirmed — the lower low of the reversal candle. The stop can be set in the body of the candles above. Bullish Engulfing Sandwich Example The BTC market open right here provides a great opportunity to see this bearish candlestick pattern in action. Note that the trend is down from the premarket. It was also continuing the downtrend from the day before. Crypto is struggling on vwap. It tries to reverse, but pay attention to the volume on the green reversal candle. This is no match for the supply in the first 5-minute candle of the day. The effort of that first candle dwarfs the efforts of the bulls. Crypto then retraces vwap, its downward trajectory, and the bulls once again submit to the bears. 4. The Evening Star:- We have included the Evening Star with the Evening Doji Star because they are very similar in both style and context. Each is a bearish candlestick pattern. To get into the star, you need to find a wide-bodied candle. The star itself is a narrow-bodied indecision candle that follows a broad-bodied candle to the upside. Entry The confirmation comes with the break of a long-standing bearish candle. A great place to enter, risking the height of the Doji candle. This pattern works especially well at the high of the day as a trend reversal. But it could also be a trend continuation pattern if it appears at former resistance at the top of a short-term rally. evening star example In this intraday example the btc, we see that the uptrend has been strong. For the first hour+ of the morning, there have been few, if any, drawbacks. However, we do see some selling pressure ahead of 10:30 AM on this 5-minute chart. Normally we could play this as a shooting star, but we did not get confirmation of a breakdown with a close below the body of that candle. Despite the failed breakdown of Shooting Star, this is a warning sign that supply is coming into the market. Cautious traders keeping their eyes peeled for any signs of a reversal on this highly overbought crypto will notice evening star-forming on increasing volume. Again, there is an effort (volume), but the result (price) is a short Doji candle. How can we explain this? It is likely that there is a lot of profit taking at this btc Evening Star candle as FOMO (fear of missing out) retail buyers drive the crypto higher. Strong hands are taking the opportunity to sell their shares. 5. Tweezer Top:- Tweezer Top is yet another reversal pattern or continuation pattern. The first element is a wide-body bullish candle indicating possible exhaustion of the uptrend. There is then no attempt to continue lower or higher, so a reversal occurs. Volume is increasing during both of these candles as supply is added to the market as weak hands are tempted to continue buying here. As a bearish pattern, the two candles should share roughly the same high, if possible. Entry Entry can be made on a close below the reversal candle with the stop set at higher. tweezer top example Take a look at this BTC Tweezer Top. Can you see the green and red candles representing the two sides of the pair of tweezers appropriately? Depending on the range of the candles, you can enter aggressively as the tweezers are forming, especially if the supply appears heavy. You can wait until the candle closes for your entry and closes at the highest level of the day or the body of the tweezer top. This is discretionary depending on the risk/reward you are looking for, as well as your risk personality and position size. As you can see from the chart, at times vwap can be a large target area (red line). 6. Dark Cloud Cover:- Dark Cloud Cover is the opposite of a bullish reversal pattern called the Piercing Line. For the bearish pattern, it must first have a solid green or white bar continuing the uptrend. After the bullish candle closes, we expect to see another candle try to make new highs. This new candle fails, then closes more than midway into the body of the 1st candle. Hence, the overhead supply is called “dark cloud cover.” One of the best ways to play this pattern is in an overall downtrend during a short-term reversal. As the crypto tries to rally into resistance, you can anticipate the end of the rally. Entry Positions should be entered as the stock breaks the prior bar with stops set at the high of the candle. Dark Cloud Cover Example Occasionally the market gifts us with a nice double-top failure in an overall downtrend. BTC gave us this opportunity intraday recently as it pulled back from the morning lows, only to find resistance at vwap. As you can see, BTC was struggling to overcome vwap on the heavy volume on the first try. The second try gave us a beautiful confirmation of the Dark Cloud Cover pattern. 7. Shrinking Candles:- Contraction candles are a classic example of effort versus result. This is a bearish reversal candlestick pattern usually accompanied by a huge volume signature below. The amount of effort pushing crypto to new highs is on the rise. Although the result is decreasing. Given the context, this should mean that a considerable amount of selling pressure is building up on volume as the price continues to make a slow upward move. This selling pressure is counteracting the demand. Once the bulls realize this, it is often too late. Without proper buying on the bottom, the result could be disastrous for long chasers wrongly assuming there is upward momentum. Entry As you look at the chart, hopefully, you can pinpoint a large short entry as the last green candlestick broke to the downside. The double top is clear, and a close risk/stop can be set on the high. Receding Candles Example Here is a real example from the 5-minute chart of BTC. As you study this chart, pay attention to the volume and how it corresponds with each candle. As you can see, the greatest amount of volume comes as BTC tries to rally above pre-market highs. By doing this the candles start shrinking. 8. Hanging Man:- The Hanging Man is visually similar to the Hammer Pattern. The hammer is usually bullish at the end of a downtrend. However, the Hanging Man is a bearish candlestick pattern at the end of an uptrend. Selling pressure is the key to recognizing this pattern. Inside the candlestick formation, there is considerable selling pressure, to begin with. Closing at higher levels can be misleading as the selling pressure mostly dissipates as it gains momentum. Many times this is an opportunity to get stuck in the long run which can lead to the belief that demand was outstripping supply. However, the supply is still on. If they bought longs on the way back up are overcome on the next candle, they could be locked out of their entries and the selling pressure would increase as the cryptocurrency fizzled out. Entry Ideally, the next candle after the close of the Hanging Man will provide a risk/reward entry closest to the top. If you are not quick enough to enter near Hanging Man and take high risks, it provides a right shoulder for later entry. hanging man example Check out this beautiful uptrend on the recent intraday chart of BTC. It appears that there is nothing stopping the upward momentum. That is until we get to the Hanging Man, which signals the top for us. Trade with care. If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
Education
by CryptoSanders9563
4
The 4 Most Common Indicatorshello dear traders, Here are some educational chart patterns that you must know in 2022 and 2023. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. Trend traders attempt to isolate and extract profit from trends. The method of trend trading tries to capture gains through the analysis of an asset's momentum in a particular direction; there are multiple ways to do this. Of course, no single technical indicator will punch your ticket to market riches; in addition to analysis, traders also need to be well-versed in risk management and trading psychology. But certain strategies have stood the test of time and remain popular tools for trend traders who are interested in analyzing certain market indicators. Moving Averages:- Moving Averages:- Moving Average is a technical analysis tool that smoothes price data by creating a continuously updated average price. On a price chart, the moving average forms a single, flat line that effectively eliminates any variation due to random price fluctuations. The average is taken over a specific period of time—25 days, or any time period that the trader chooses. For investors and long-term trend followers, the 200-day, 100-day, and 50-day simple moving averages are popular choices. There are many ways to use moving averages. The first is to look at the angle of the moving average. If it is moving mostly horizontally for an extended period of time, the price is not trending, it is ranging. A trading range occurs when a security trades between high and low prices consistently for a period of time. If the moving average line is in an upward direction, then an uptrend is underway. However, moving averages do not make predictions about the future price of a stock; They simply reveal what the price is doing on average over a period of time. Another way is to use crossover moving averages. By plotting the 200-day and 50-day moving averages on your chart, a buy signal occurs when the 50-day crosses above the 200-day. A sell signal occurs when the 50-day crosses below the 200-day. When the price moves above the moving average, it can also be used as a buy signal, and when the price moves below the moving average, it can be used as a sell signal. However, the price is more volatile than the moving averages, so this method is more prone to false signals, as shown in the chart above. Moving averages can also provide support or resistance to the price. Moving Average Convergence Divergence (MACD):- Moving Average Convergence Divergence (MACD):- The Moving Average Convergence Divergence (MACD) is a type of oscillating indicator. An oscillating indicator is a technical analysis indicator that oscillates over time within a band (above and below the centerline; the MACD oscillates above and below zero). It is both a trend-following and momentum indicator. A basic MACD strategy is to look at which side of the MACD line is zero in the histogram below the chart. If the MACD lines are above zero for a sustained period of time, there is a possibility of an uptrend for the stock. Conversely, if the MACD lines are below zero for a sustained period of time, the trend is likely to be down. Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it moves below zero. Signal line crossovers can also provide additional buy and sell signals. The MACD consists of two lines – a fast line and a slow line. A buy signal occurs when the fast line crosses through and above the slow line. A sell signal occurs when the fast line crosses through and below the slow line. Relative Strength Index (RSI):- Relative Strength Index (RSI):- The Relative Strength Index (RSI) is another oscillating indicator, but its movement ranges between zero and 100, so it provides different information than the MACD. One way to interpret the RSI is to view the price as "overbought" - and due to a correction - when the indicator is above 70 in the histogram, and to view the price as oversold - and due to a bounce - when the indicator is below 70. is 30. In a strong uptrend, the price will often reach 70 and above for sustained periods of time. For a downtrend, the price may remain at or below 30 for a long period of time. While general overbought and oversold levels can sometimes be accurate, they may not provide the most timely signals for trend traders. One option is to buy near oversold positions when the trend is up and short near overbought positions in downtrends. For example, suppose the long-term trend of a stock is up. A buy signal occurs when the RSI crosses below 50 and then crosses back above it. Essentially, this means that the price has come down. Hence the trader buys when the pullback appears to be over (according to the RSI) and the trend is resuming. The 50-level is used because the RSI typically does not reach 30 in an uptrend unless a potential reversal is taking place. A short-trade signal occurs when the trend is down and the RSI moves above 50 and then moves back below it. Trendlines or moving averages can help establish the direction of the trend and in which direction to take trading signals. On-Balance Volume (OBV):- On-Balance Volume (OBV):- Volume is a valuable indicator in its own right, and on-balance volume (OBV) takes important volume information and compiles it into a single-line indicator. The indicator measures cumulative buying and selling pressure by adding volume on "up" days and decreasing volume on "down" days. Ideally, the volume should confirm the trends. With an increasing price there should be an increasing OBV; With a falling price, the OBV should also fall. If the OBV is rising and the price is not rising, it is likely that the price will follow the OBV in the future and start rising. If the price is rising and the OBV is flat-lining or declining, the price may be nearing the top. If the price is falling and the OBV is flat-lining or rising, then the price may be nearing the bottom. The Bottom Line:- In addition to providing trend trading signals and warnings about reversals, indicators can simplify price information. The indicators can be used on all time frames, and for the most part, they have variables that can be adjusted to suit each trader's specific preferences. Traders can combine indicator strategies - or come up with their own guidelines - so the entry and exit criteria for trades are clearly established. Learning to trade indicators can be a difficult process. If a particular indicator appeals to you, you may decide to do further research on it. Most importantly, it is a good idea to test it before using it to trade live. And for those who have never actively traded before, it is important to know that opening a brokerage account is an essential first step in gaining access to the crypto market. Trade with care. If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
Education
by CryptoSanders9563
5
What's the Difference? Fundamental vs TechnicalHello dear traders, Here are some educational chart patterns that you must know in 2022 and 2023. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. Fundamental vs. Technical Analysis:- Fundamental and technical analysis are two major schools of thought when it comes to approaching the markets, yet are at opposite ends of the spectrum. Investors and traders use both to research and forecast future stock prices. Like any investment strategy or philosophy, both have advocates and adversaries. Fundamental Analysis:- Fundamental analysis evaluates stocks by attempting to measure their intrinsic value. Fundamental analysts study everything from the overall economy and industry conditions to the financial strength and management of individual companies. Earnings, expenses, assets, and liabilities all come under scrutiny by fundamental analysts. Technical Analysis:- Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume. The core assumption is that all known fundamentals are factored into the price, thus there is no need to pay close attention to them. Technical analysts do not attempt to measure a security's intrinsic value. Instead, they use stock charts to identify patterns and trends that suggest what a stock will do in the future. Trade with care. If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
Education
by CryptoSanders9563
2
The Momentum of MomentumUtilizing oscillators to confirm trend continuations and reversals is a momentum traders’ bread and butter. You most likely have the RSI or MACD saved to your favorites, but have you ever considered analyzing the momentum of an oscillator itself? You would be surprised at what insights the momentum of an oscillator can show you. In this article, we will look at how the momentum of an oscillator can help parse out false signals and give you an edge in your decision-making. Below is the BTC/USDT 15-minute chart, the True Momentum Oscillator (TMO), and a 50-day EMA. We have highlighted what appears to be a short-term double top, with a weakening oscillator momentum that failed to reach or exceed the previous level. The price consistently bounced around the 50-period EMA and had cleanly broken through with a retrace imminent. Whether you aim to trade the break of the EMA or the retrace and rejection, this appears to be set up for a potential short trade. Now we take the momentum of the TMO and its signal line and plot those lines (purple and white). Another layer to this story suddenly unfolds. We can now see from the new momentum lines that this move to the downside weakened almost as soon as it began. There is now a clear divergence between the oscillator and its momentum lines. What seemed to be a solid short setup now has upside potential. We must now question our next move. A few bars later, the price broke above the 50-EMA and quickly touched it one last time and is followed by a robust move to the upside. In the current market, it is easy to lean short. Eager traders might have taken the short only to be burned by the strong move against the desired trade. Adding the layer of the momentum of our oscillator helped us read between the noise. We had a better idea of where the next chapter could take us, or at the very least, we could avoid a risky trade. This is just one example of how the momentum of oscillators can be another valuable tool in our technical analysis tool belt. This momentum offers a unique visual aid for making quick decisions when trading.
Education
by LeafAlgo
Learn to Read Candlestick Strength | Trading Basics Hey traders, In this educational article, we will discuss how to objectively measure the market momentum with candlesticks. Please, note that the concepts that will be covered in this article can be applied on any time frame, however, higher is the time frame, more trustworthy are the candles. Also, remember, that each individual candle is assessed in relation to other candles on the chart. There are three types of candles depending on its direction: 🟢Bullish candle Such a candle has a closing price higher than the opening price. 🔴Bearish candle Such a candle has a closing price lower than the opening price. 🟡Neutral candle Such a candle has equal or close to equal opening and closing price. There are three categories of the strength of the candle. Please, note, the measurement of the strength of the candle is applicable only to bullish/bearish candles. Neutral candle has no strength by definition. It signifies the absolute equilibrium between buyers and sellers. 1️⃣Strong candle Strong bullish candle signifies strong buying volumes and dominance of buyers without sellers resistance. Strong bearish candle means significant selling volumes and high bearish pressure without buyers resistance. Usually, a strong bullish/bearish candle has a relatively big body and tiny wicks. 2️⃣Medium candle Medium bullish candle signifies a dominance of buyers with a rising resistance of sellers. Medium bearish candle means a prevailing strength of sellers with a growing pressure of bulls. Usually, a medium bullish/bearish candle has its range (based on a wick) 2 times bigger than the body of the candle. 3️⃣Weak candle Weak bullish candle signifies the exhaustion of buyers and a substantial resistance of sellers. Weak bearish candle signifies the exhaustion of sellers and a considerable bullish pressure. Usually, such a candle has a relatively small body and a big wick. Knowing how to read the strength of the candlestick, one can quite accurately spot the initiate of new waves, market reversals and consolidations. Watch how the price acts, follow the candlesticks and try to spot the change of momentum by yourself. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
7