Chartanalysis
Polkadot: Low Set!After Polkadot showed its first signs of an uptrend last week, we now consider the green wave (ii) complete. The same-colored wave (iii) should push the price above the resistance at $4.92. However, if the price slips below the support level at $3.61 (35% probability), we would need to place the price in the magenta wave alt.(ii), anticipating a decline into the orange Target Zone between $2.98 and $1.67.
Nifty Next MoveNifty have formed harmonic pattern
we can expect a small down trend and after Rally
also the area is above 70% of the trend line formation so we can expect buyers in Discount area
📌 Please support me with your likes 🤞🏻 and comments 💬 to motivate me to share more analysis with you and share your any opinion about the possible trend of this chart with me !
Best Regards , Davis 🥰
Hit the like 🤞🏻 button to !! Motive some energy !!🥇
📌 Note :
⨻ Check the live market updates and analysis yourself before buy 📈🔺 or sell 📉🔻
⨺ Am not giving any advisory or signals its just my idea for upgrade my knowledge 📚 in trading
⨹ This is my pre and post market analysis to improve my trading journey 🚀
⨂ Am Not suggesting anyone to buy or sell ❌ am just giving my views 👀
⫸ You are responsible for your trading ✅ not me ❌ ⫷
HAPPY TRADING 🥰
Apple: Upside Potential! Currently, we are dealing with the final part of the turquoise wave B and expect a high just below the resistance level at $254.30. Afterward, we anticipate a pullback that will bring the price down with the turquoise wave C into our magenta Target Zone (coordinates: $192.02 – $172.34), where the larger wave (2) is expected to complete. This Target Zone offers another opportunity for long positions, as the bullish trend should continue from there. We assign a 34% probability that the magenta wave alt.(2) has already completed, leading to a direct break above the $254.30 resistance without entering our Target Zone.
Sold 1/2 Bitcoin. Raised Stops.Even though we did not reach my 1:2 rrr target, nor did my sell signal fire off, I am choosing to take 1/2 of my Bitcoin profit here, raise my stops, and hold the remainder of the position. I should’ve done this at 68k, but wanted to see how this market would handle the top of our channel.
All along the big resistance target I have discussed has been 68k. I still believe we could break through it, however, the chart is beginning to disagree. Inside of my descending channel (which is bullish long-term) we have this ascending wedge pattern beginning to form (this is bearish). If correct and it plays out, it would take us all the way down to 48k. Sound significant? Yeah, that’s ‘cuz it is!
You’ve heard me discuss 48k many times in the past. It is the neckline of a larger inverse head and shoulders pattern seen on the weekly chart below. We wicked down once in an attempt to kiss and retest. But that may not have been enough tongue action for these bears?
Mark this wedge out on your charts and watch it closely. It is significant. And if it breaks? To 48k we’ll go.
Avoiding the Pump and Dump: A Beginner's GuideAvoiding the Pump and Dump: A Beginner's Guide to Protecting Your Investments
In the dynamic world of stock trading, new traders are constantly seeking ways to maximize profits and minimize risks. Unfortunately, one of the most deceptive and harmful schemes that can easily trap beginners is the infamous pump and dump scheme. This fraudulent practice has been around for decades, targeting unsuspecting traders by artificially inflating a stock's price and then swiftly cashing out, leaving the victims with significant losses. For traders on platforms like TradingView, especially those just starting, it’s crucial to understand how to spot these schemes and avoid falling prey to them.
This guide will provide you with the knowledge you need to recognize pump and dump schemes by analyzing monthly, weekly, and daily charts, identifying repetitive patterns, and understanding market sentiment. By the end, you'll know exactly what to look for to safeguard your investments.
What is a Pump and Dump?
A pump and dump scheme occurs when a group of individuals, often coordinated through social media or private channels, artificially inflates the price of a stock. They "pump" up the stock by spreading misleading information or creating hype around the asset, leading to increased buying interest. Once the stock price has risen significantly, the perpetrators "dump" their shares at the elevated price, leaving uninformed buyers holding a stock that will soon plummet in value.
The key elements to watch out for are:
Unusual price spikes without any corresponding fundamental news.
High trading volume during these spikes, suggesting that a group of individuals is actively manipulating the price.
Aggressive promotion through emails, forums, or social media channels, often making exaggerated claims about a stock's potential.
Understanding Timeframes: Monthly, Weekly, and Daily Charts
One of the most effective ways to spot pump and dump schemes is by analyzing various timeframes—monthly, weekly, and daily charts. Each timeframe provides different insights into the stock's behavior, helping you detect irregular patterns and red flags.
Monthly Charts: The Big Picture
Monthly charts give you a broad overview of a stock's long-term trends. If you notice a stock that has been relatively inactive or stagnant for months, only to suddenly surge without any substantial news or developments, this could be a sign of manipulation .
What to look for in monthly charts:
Sudden spikes in price after a prolonged period of flat or declining movement.
Sharp volume increases during the price rise, especially when the stock has previously shown little to no trading activity.
Quick reversals following the price surge, indicating that the pump has occurred, and the dump is on its way.
For example, if a stock shows consistent low trading volume and then experiences a sudden burst in both volume and price, this is a classic sign of a pump. Compare these periods with any news releases or market updates. If there’s no justifiable reason for the spike, be cautious .
Weekly Charts: Spotting the Mid-Term Trend
Weekly charts help you see the mid-term trends and can reveal the progression of a pump and dump scheme. Often, the "pump" phase will be drawn out over several days or weeks as the schemers build momentum and attract more buyers.
What to look for in weekly charts:
Gradual upward trends followed by a sharp, unsustainable rise in price.
Repeated surges in volume that don’t correlate with any fundamental analysis or positive news.
Recurrent patterns where a stock has previously been pumped, experienced a sharp decline, and is now showing the same pattern again.
Stocks used in pump and dump schemes are often cycled through multiple rounds of pumping, so if you notice that a stock has undergone several similar spikes and drops over the weeks, it’s a strong indicator that the stock is being manipulated.
Daily Charts: Catching the Pump Before the Dump
Daily charts provide a more granular view of a stock's price movement, and they can help you detect the exact moments when a pump is taking place. Because pump and dump schemes can happen over just a few days, monitoring daily activity is critical.
What to look for in daily charts:
Intraday price spikes that happen suddenly and without any preceding buildup in momentum.
A huge increase in volume followed by rapid price drops within the same or subsequent days.
Exaggerated price gaps at market open or close, indicating manipulation during off-hours or lower-volume periods.
On a daily chart, if a stock opens significantly higher than the previous day's close without any news or earnings report to back it up, this could be the start of the dump phase. The manipulators are looking to sell their shares to anyone who has bought into the hype, leaving retail traders holding the bag.
Repeated Use of the Same Quote: A Telltale Sign of a Pump and Dump Scheme
Another red flag is when the same stock or "hot tip" keeps resurfacing in social media, forums, or emails. If you notice that the same quote or recommendation is being promoted repeatedly over time, often using the same language, this is a strong sign of manipulation. The scammers are likely trying to pump the stock multiple times by reusing the same tactics on new, unsuspecting traders.
Be cautious of stocks that:
Have been heavily promoted in the past.
Show a history of sudden spikes followed by rapid declines.
Are promoted with vague, overhyped language like "the next big thing" or "guaranteed gains."
If the same stock is mentioned multiple times in trading communities, check its historical chart. If the stock has undergone previous pumps, you will likely see sharp rises and falls that align with the promotional periods.
How to Avoid Pump and Dump Schemes
Now that you know how to spot the signs, here are actionable steps you can take to protect yourself from becoming a victim of a pump and dump scheme:
Do Your Research: Always verify the information you receive about a stock. Check if there’s legitimate news, earnings reports, or significant company developments that justify the price movement. Avoid relying solely on social media or forums for your stock tips.
Look at Fundamentals: Focus on stocks with solid fundamentals, such as earnings growth, revenue increases, and strong management. Stocks targeted for pump and dump schemes often have weak or non-existent fundamentals.
Use Multiple Timeframes: As we've discussed, examining stocks across different timeframes—monthly, weekly, and daily—can help you spot abnormal price behavior early on.
Monitor Volume and Price Movements: If you see large, unexplained surges in volume and price, be skeptical. Legitimate price increases are usually accompanied by news or fundamental changes in the company.
Avoid Low-Volume Stocks: Pump and dump schemes often target low-volume, illiquid stocks that are easier to manipulate. Stick to stocks with healthy trading volumes and liquidity.
Set Stop Losses: Always use stop losses to protect yourself from sudden price drops. Setting a stop loss at a reasonable level can help limit your losses if you accidentally invest in a stock being manipulated.
Be Wary of Promotions: If a stock is being aggressively promoted, ask yourself why. More often than not, aggressive promotions are a sign that the stock is part of a pump and dump scheme.
Conclusion
Pump and dump schemes prey on traders’ fear of missing out ( FOMO ) and the allure of quick profits . However, by using a disciplined approach to trading, analyzing charts across multiple timeframes, and paying close attention to volume and price movements, you can avoid falling victim to these schemes.
Remember: If something seems too good to be true, it probably is. Protect your investments by staying informed, doing thorough research, and trusting your analysis. By following these guidelines, you can navigate the markets with confidence and avoid the pitfalls of pump and dump schemes.
Happy trading, and stay safe!
Polygon: Bottom Formation? POL recently moved sideways within our magenta-colored Target Zone (between $0.4711 and $0.3058). From a technical perspective, this development could be the start of a bottom formation. However, we primarily expect a deeper low of the magenta wave (2). Afterward, the turquoise wave 1 should drive the price above the resistance level at $0.60. Within our Target Zone, long positions can be opened, with stops set about 1% below the lower boundary or at the support level of $0.31. If the price falls below this mark (42% probability), we will have to place the coin in the green wave alt.(2).
Netflix: Upside Potential!About a year ago, in October 2023, NFLX stock hit a low of $345.87. The uptrend that startet then remains intact and has gained momentum since August this year. After surpassing its record high of $700.99 from November 2021 two months ago, the stock continued to climb and has recently stabilized above the $700 mark. While significant progress has already been made with the turquoise wave 3, we expect a further expansion beyond the $800 hurdle. In the subsequent wave 4, the $700 level should be tested again before the final leg of the larger wave (1) in magenta kicks in. Our alternative scenario (20%), however, anticipates a new low of the turquoise wave alt. 2 below the $345.87 mark.
Meta: Top Placed!In line with our primary assumption, META recently reached the resistance line at $600.27. The upward movement paused at this level, and we now expect a short-term wave C decline, pushing the price below the support at $399. However, we also see an increased likelihood (39%) of a higher high for the green wave alt.(1). This alternative scenario will be quickly triggered if the price breaks above the $600.27 mark
#Silver bearish counter trend opportunityAs seen in the chart, silver has formed a 5-wave bullish impulsive move and has since begun a bearish move, which could be labeled as wave A.
As we know, corrective waves typically occur in three waves. I believe we are nearing the completion of wave B, which could lead to another bearish leg to complete wave C.
This entire 3-wave bearish move could then form wave 2 of 5 on a higher degree.
Therefore, while we might be looking at a short-term bearish move, according to Elliott Wave theory, there is still significant bullish potential in the coming weeks.
#GBPCHF potential reverse head and shoulder patternIn this chart, as you can see, we might be dealing with an inverse head and shoulders pattern. If confirmed, this pattern could lead to higher prices.
However, before taking any positions, it would be prudent to wait for a shift in the lower timeframe market structure toward a bullish trend to ensure stronger confirmation of the move.
Fiserv: Trading Opportunities!Recently, the FI stock surged directly into our green Target Zone (coordinates: $186.40 – $207.40). This year alone, it has gained over 40%. With the recent arrival in our Zone, the time is now ripe for an overarching trend reversal. Because: by hitting our Zone, the price has reached the absolute minimum target for the green wave . From a technical perspective, an immediate trend reversal and a transition into wave II are now possible. At the moment, we place Fiserv in the turquoise wave 3, which should be followed by another dip below our Target Zone. Ultimately, the entire turquoise upward impulse should complete the overarching uptrend of the beige wave I. Thus, our Zone can be used to take profits from existing long positions or to initiate new short trades. Such potential short positions can be hedged with a stop 1% above the 78.60% retracement level (at $207.40).
Misconceptions and Truths about Paper Trading
Hello, traders.
If you "Follow", you can always get new information quickly.
Please click "Boost".
Have a nice day today.
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TradingView also supports Paper Trading.
For more information, please click the link below. www.tradingview.com
More flexibility: change your Paper Trading account currency :
www.tradingview.com
Even more seamless order design — directly on chart :
www.tradingview.com
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Paper Trading is thought to support trading practice for beginners.
However, this is a wrong idea.
If you lack prior knowledge about trading or have no concept of trading strategy, you should not do paper trading.
The reason is that the psychological burden is different.
The success or failure of a trade is thought to be the result of trading strategy or response ability, but in reality, it can be said that it is determined by the battle with oneself and psychological state.
This means that psychological state has a significant impact on trading.
Therefore, paper trading should be considered as a transaction that is conducted to confirm one's trading strategy and response strategy after completing chart analysis.
If you have completed some verification of your trading strategy or response strategy, you should continue to conduct actual trading even if you suffer a loss.
The reason is that you should not forget that you can only gain know-how in trading through actual trading.
Therefore, paper trading should not be used to practice mid- to long-term trading, but should be used to verify trading strategies or response strategies for short-term trading or day trading.
In order to do so, you must close the transaction by selling or cutting your loss.
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For more information on trading orders in paper trading, please refer to the explanation through the link above.
-
You can proceed with Paper Trading by clicking the Trading Panel at the bottom menu of the TradingView chart.
If you connect to a Paper Trading account, you can start with an initial fund of 100,000.
If the Buy/Sell button is not activated, activate the chart settings to activate the Buy/Sell button before proceeding with the trade.
Right-click on the space in the price candle area to activate the window, and then hover your mouse over the Trade section to check the trading order or trading settings (when you click the Trading menu in the Chart Settings window).
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In addition, TradingView is linked to a real exchange and supports real trading.
It supports various exchanges, so I recommend you to check if there is an exchange that you are trading on.
-
Have a good time.
Thank you.
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POL: Consolidation POL recently moved sideways within our magenta-colored Target Zone (between $0.4711 and $0.3058). We expect a drop below the previous low within this range before the price should place the low of the magenta-colored wave (2). Following this, it should rise above the resistance at $0.60 with the turquoise wave 1. Therefore, traders can open long positions within this range, placing any stops 1% below the lower boundary. If the price falls significantly below the $0.31 mark (42% likely), our alternative scenario will come into play, which anticipates an even lower wave alt.(2) in green.
Chainlink: SetbackLINK pulled back significantly over the past seven days. However, we interpret this development primarily as part of the internal substructure of turquoise wave 3 and, therefore, stick to our primary assumption. Moving forward, the price should continue to rise and surpass the resistance at $20.85. However, if the price drops below the support level at $8.12 (probability: 27%), we will have to consider a lower completion for turquoise wave alt.2.
Mahindra and Mahindra next target buy rally?Mahindra and Mahindra takes a first target for harmonic pattern
and take off entry on breaker block
at CMP we can see a FVG also a extreme supply on that area if market breaks extreme supply around 3200 we can expect huge up side rally 3270,3440,also extreme target of 3700
lets be patient to close above supply and take a perfect entry
📌 Please support me with your likes 🤞🏻 and comments 💬 to motivate me to share more analysis with you and share your any opinion about the possible trend of this chart with me !
Best Regards , Davis 🥰
Hit the like 🤞🏻 button to !! Motive some energy !!🥇
📌 Note :
⨻ Check the live market updates and analysis yourself before buy 📈🔺 or sell 📉🔻
⨺ Am not giving any advisory or signals its just my idea for upgrade my knowledge 📚 in trading
⨹ This is my pre and post market analysis to improve my trading journey 🚀
⨂ Am Not suggesting anyone to buy or sell ❌ am just giving my views 👀
⫸ You are responsible for your trading ✅ not me ❌ ⫷
HAPPY TRADING 🥰
MARKET STRUCTURE explained (THE ULTIMATE SIMPLIFIED GUIDE)(In this guide I will attempt for explain Market Structure in the most simplified and easy to understand terms)
WHAT IS MARKET STRUCTURE?
Market structure is the overall framework of a market that helps traders understand price movements and trends. Think of it as the skeleton of the market, showing how prices move over time and where key levels of support and resistance are located.
COMPONENTS OF MARKET STRUCTURE:
TRENDS:
Trends are the general direction in which the market is moving. There are three main types of trends:
- UPTREND: This is when the market is moving upwards. It is characterized by a series of higher highs (HH) and higher lows (HL). Imagine a staircase going up; each step represents a higher high and a higher low.
- HIGHER HIGH (HH): The highest point reached during a price movement before the price starts to fall again.
- HIGHER LOW (HL): The lowest point reached during a price movement before the price starts to rise again.
- DOWNTREND: This is when the market is moving downwards. It is characterized by a series of lower lows (LL) and lower highs (LH). Think of a staircase going down; each step represents a lower low and a lower high.
- LOWER LOW (LL): The lowest point reached during a price movement before the price starts to rise again.
-LOWER HIGH (LH): The highest point reached during a price movement before the price starts to fall again.
- SIDEWAYS/RANGE-BOUND: This is when the market is moving horizontally, neither up nor down. It is characterized by equal highs (EQH) and equal lows (EQL). Picture a flat road; the price moves back and forth within a certain range.
- EQUAL HIGH (EQH): The highest point reached during a price movement that is roughly the - EQUAL LOW (EQL): The lowest point reached during a price movement that is roughly the same as previous lows.
SUPPORT & RESISTANCE LEVELS:
- SUPPORT: A support level is a price point where the market tends to find buying interest, preventing the price from falling further. Think of it as a floor that supports the price.
- RESISTANCE: A resistance level is a price point where the market tends to find selling interest, preventing the price from rising further. Think of it as a ceiling that resists the price.
SWING POINTS:
Swing points are the peaks and troughs that form the structure of the market. They help in identifying the trend direction.
- SWING HIGH: A peak formed when the price reaches a high point and then starts to decline.
- SWING LOW: A trough formed when the price reaches a low point and then starts to rise.
ANALYZING MARKET STRUCTURE:
IDENTIFY THE TREND:
To identify the trend, look at the sequence of highs and lows on the price chart:
- UPTREND: Look for a series of higher highs and higher lows.
- DOWNTREND: Look for a series of lower lows and lower highs.
- SIDEWAYS: Look for equal highs and equal lows.
MARK KEY LEVELS:
Identify and mark significant support and resistance levels on the chart. These levels are where the price has previously reversed or paused.
OBSERVE PRICE ACTION:
Analyze how the price reacts at these key levels. Look for patterns such as:
- BREAKOUTS: When the price moves above a resistance level or below a support level.
- REVERSALS: When the price changes direction after reaching a support or resistance level.
- CONSOLIDATIONS: When the price moves within a narrow range, indicating indecision in the market.
RISK MANAGEMENT:
Always use stop-loss orders to manage risk. Place stop-loss orders:
- Below support levels in an uptrend.
- Above resistance levels in a downtrend.
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This is the basics of Market Structure, explained in the most simplified manner as possible. I hope this publication was simple and easy to understand and helps you understand Market structure better.
I will be doing more easy to understand publications like this within the upcoming days so stay tune...
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HAPPY TRADING :)
Bitcoin: Upward MomentumBitcoin is kicking off the new trading week with a rise, gaining 7% from last Thursday's low. However, we are not convinced that a wave iv low is in place, although it's technically possible. We primarily anticipate a lower low before the rally resumes with the orange wave v.