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CORRELATION IN TRADINGHave you ever noticed a time when a certain product went up and another similar product went down at around the same time? Or when that product went down and another product also went down at the same time? If the answer is yes, then what you noticed was 'product correlation' in action. What exactly is product correlation? In the financial markets, correlation is a statistical measure of how two products move in relation to each other. Product correlation tells us whether two products tend to move in the same or opposite direction or whether they move completely independently of each other without any discernible pairing pattern over a specific period of time. Let us look at an example from a Forex (currency pair) trade (visual chart examples further below): If EURUSD goes up and USDJPY goes down, this is called a NEGATIVE correlation and if GBPUSD goes down and AUDUSD also goes down, this is called a POSITIVE correlation. When trading forex in particular, it is vital to remember that since currencies are traded in pairs, no one currency pair is ever totally isolated. Therefore, if you plan on trading more than one currency pair at a time, it is very important to understand how different currency pairs move in relation to each other. Correlation also applies to other types of products such as gold, silver, stocks and indices. Let us take a more detailed look at how correlation is worked out. Correlation is computed into a number known as the "correlation coefficient". This number ranges between -1 and +1: •Perfect negative correlation (an exact correlation coefficient of -1) means that the two respective products will move in the opposite direction 100% of the time. •Perfect positive correlation (an exact correlation coefficient of +1) implies that the two respective products will move in the same direction 100% of the time. •If the correlation is 0, the movements between the two respective products are said to have no correlation and their movements are completely independent from each other. In other words, there is no way to predict how one product will move in relation to the other. POSITIVE CORRELATION NEGATIVE CORRELATION PLEASE NOTE!!! Although correlation exists in the financial markets, it is NOT set in stone as a guarantee. Firstly, the correlation coefficient between products in the financial markets is rarely, if ever, at +1 and -1. Secondly and more importantly, every individual product has its own UNIQUE supply and demand measures and also has buyers and sellers that have their own UNIQUE motivations and goals in relation to that specific product. When a product goes up or down, this does NOT necessarily mean that it will always follow in line or go the opposite way to another product. Trade safely and responsibly! BluetonaFX
Education
by BluetonaFX
5
The Debt Ceiling AgreementThe debt ceiling is a limit set by the U.S. Congress on the amount of debt that the federal government can have outstanding. This debt is primarily made up of two components: debt held by the public (like U.S. Treasury bonds held by investors) and intragovernmental holdings (like those in the Social Security Trust Fund). From a financial perspective, the debt ceiling is significant for several reasons: 1. Creditworthiness of the United States: The U.S. government is seen worldwide as an issuer of risk-free assets, primarily because it has never defaulted on its debt. If the debt ceiling is not raised in time, it could potentially lead to a default, shaking the world's confidence in U.S. government securities. This could increase the interest rates that the U.S. has to pay to borrow money in the future. 2. Global Financial Markets Stability: U.S. Treasury securities are used as a benchmark for many other types of credit and are widely held by financial institutions around the world. A default could cause significant upheaval in these markets and potentially lead to a financial crisis. 3. Economic Recession : A default could lead to severe economic consequences. It could cause a sharp decrease in government spending (since the government couldn't borrow to finance its operations), which could in turn lead to job losses and potentially a recession. Treasury Secretary Janet Yellen warned of this risk in the case of the 2023 debt ceiling negotiations. 4. Budgeting and Planning: The debt ceiling also has implications for how the government budgets and plans its finances. When the debt ceiling is reached, the Treasury Department has to use "extraordinary measures" to keep the government funded, which can create uncertainty and inefficiency. 5. Political Tool: While not strictly a financial point, it's worth noting that the debt ceiling has often been used as a political tool. Lawmakers may refuse to increase the debt ceiling without certain concessions, such as spending cuts or policy changes. This can lead to financial uncertainty, as was the case during the 2023 debt ceiling negotiations. The negotiations that led to the agreement were marked by considerable compromise. President Biden, for instance, noted that the agreement represented a compromise where not everyone got what they wanted but was nonetheless an important step forward1. House Speaker Kevin McCarthy, despite opposition within his own party, committed to passing the bill within 72 hours of its introduction on the House floor. This commitment was a testament to the urgency felt by lawmakers due to the looming threat of a potential default on the U.S. debt obligations. The agreement was a product of compromise and necessity, driven by the urgent need to avoid a default on U.S. debt obligations. It included a two-year budget deal holding spending flat for 2024 and imposing limits for 2025, effectively reducing spending as Republicans had insisted. This was in exchange for raising the debt limit for two years, until after the next election. The deal would boost spending on the military and veterans' care and cap spending for many discretionary domestic programs. However, the specifics of these spending caps remained subject to further debate between Republicans and Democrats. Conclusion The 2023 U.S. debt ceiling negotiations showcase the intricate dynamics of American politics and its intersection with economic policy. They underscore the importance of compromise in a divided government and the challenges that ideological divergences within parties can pose to such compromise. These negotiations and their outcome also highlight the potential economic implications, such as the risk of default, that can arise when political disagreements hinder prompt fiscal decisions.
FRED:GFDEGDQ188SEducation
by financialflagship
6
🌲 How Music Truly Influences Traders 🌲 Hello TradingView Family In This Post we will talk about Music Analysis in Trading, unraveling its potential to enhance trading experiences. Whether you're a Seasoned Trader in need of fresh Insights or a Trading Newbie aiming to fine-tune your game, we'll uncover how music can groove with your day trading activities. *Some Tips : Having a Good Diet is Really Helping you, Especially Eat some Banana & Broccoli 🍌 🥦 Before Trading. `LET'S GET STARTED ` ⛵🎶 FIRST SESSION : HARMONIC EMOTIONAL RESILIENCE. 🌲🌷🎶 Emotions and trading go hand in hand, but did you know that music can be a secret weapon? It's true! By harnessing the power of catchy tunes, traders can level up their emotional intelligence and keep their cool even when the market gets wild. Picture this: you're in the midst of a rollercoaster ride with your trades, and suddenly, a melody starts playing. It's a feel-good tune that instantly lifts your spirits and brings a smile to your face. That's the magic of music! By creating a playlist full of uplifting and calming tracks, you can create your personal sanctuary in the world of trading. When things get tough, and stress is at its peak, music becomes your anchor. Those soothing melodies gently wash away anxiety and stress, giving your mind the clarity it needs to make rational decisions. And if you need an extra boost, energizing and motivational tracks can pump up your mood, boost confidence, and ignite your inspiration. So, remember, in the world of trading, don't underestimate the Power of Music. Adding a little rhythm to your trading routine can work wonders! By grooving to some tunes, you can tap into your Inner Zen and keep their emotions in check. No more impulsive actions driven by fear or greed – just disciplined and strategic moves. And hey, music isn't just for the soul, it's for the portfolio too! Positive vibes make for a more enjoyable and fulfilling trading experience. So crank up the volume and let the melodies boost your Emotional Intelligence. Create an atmosphere of emotional well-being and Mental Resilience, leading to better trading performance. Who knew Trading could be so Harmonious? SECOND SESSION : UNDERSTANDING PSYCHOLOGY OF MUSIC 🧙🏻‍♂️ Music wields a profound sway over the human psychology. The selection of music exerts a tangible influence on a trader's mindset and emotional state,. Diverse genres like melodies, and rhythms evoke a plethora of emotional reactions. Consider, for instance, that lively and dynamic compositions can instill motivation and positivity, while tranquil and soothing Harmonies induce Relaxation and Sharpened Focus. By astutely handpicking music that aligns with the desired trading mindset, you can exploit the psychological impact of sound to your advantage. During periods of intense market volatility when Scalping or Day Trading, Calming Melodies can Reduce Anxiety. Conversely, during Backtesting in the Market Reading News, Reviewing Trades Invigorating Melodies can Invigorate Attentiveness and Reduce Boredom. Moreover, music has the ability to create a sense of familiarity and comfort. By consistently incorporating specific tracks or playlists into the trading routine, you can develop a conditioned response, signaling the brain that it is time to enter a focused and alert state for trading activities. Ambient Sounds or Instrumental Tracks can also be Beneficial in Creating an Immersive Trading Environment. Nature sounds, or Instrumental Music without lyrics can help drown out distractions and enhance concentration, enabling traders to maintain a deep level of focus on Market Analysis, Backtesting and Decision-making. Understanding the Psychology of Music allows you to use music as a tool to Manage Emotions, Reduce Stress, Boost Confidence, and Maintain a Disciplined Mindset Throughout your Trading Sessions. 🧙🏻‍♂️ FINAL SESSION : TOP DOWN IN MUSICAL ANALYSIS 🌲🌷🎶🎶🦜🌲 Just like conducting a Top-Down Analysis in trading, you can apply a similar approach to Musical Analysis. Intrigued? Let's groove on! Start your trading day by shaking off that sleepiness with an energizing track that kicks your motivation into high gear. Let the beats and melodies set a Positive tone, preparing your mind to tackle the challenges and opportunities that lie ahead. And hey, this strategy works for real-life challenges too! When it's time for Analysis and Backtesting, instrumental music or tracks with minimal lyrics are your go-to jams. These tunes help you concentrate and keep distractions at bay. They create the perfect soundtrack for diving deep into market data and making those well-informed decisions that can lead to success. But what about After Take Profit or Stop Loss, Reviewing Trades or Reading Some Data & News? Well, it's time to switch gears and select calming melodies or ambient sounds. These soothing tunes create a serene atmosphere that promotes clear thinking. Take a mindful approach to evaluating your trading performance, reducing stress, and gaining a fresh perspective on areas for improvement. Now, here's where the real fun begins: experimenting with different genres, styles, and rhythms! Classical music might strike a chord with some, while others groove to electronic or ambient tunes. Find the music that resonates with your trading style and preferences, enhancing your overall trading experience. So, embrace the beat, let the music be your guide, Remember, it's not just about numbers; it's about finding harmony in your trades and enjoying the process along the way. CONCLUSION 🧙🏻‍♂️🌲 By choosing the perfect tunes that sync with your trading style and personal taste, you can create a Zen Trading Atmosphere that boosts Focus, Concentration, and your overall Mood. The Rhythm and Genre of the Music can influence your energy Levels and establish a groove that complements your Trading activities. Don't be afraid to explore various music genres, styles, and rhythms to discover the melodic landscape that clicks with your trading goals. Adapt your musical selection to different phases of your trading routine, leveraging its power to cultivate the right mindset for each activity. Just remember, music is more than just background melody—it's the secret ingredient to your trading experience. And Wishyou Good and Profitable Weeks, I Love Writing this Post, If You Care Please Drop A Boost Button!! 🚀 Happy trading, and may the rhythm be with you!! See You - 🦜🌷🌲 Amazing Free to Use Image By : Indigo Blackwood
NASDAQ:MULNEducation
by Zestiria
1
Mastering Oscillators In TradingOscillator indicators are technical analysis tools that show the rate at which a particular asset's price or other aspect is changing. Oscillators help traders identify potential trend reversals, trend continuations, and overbought or oversold conditions. These are general strategies that can apply to most oscillators. We would like to cover these in detail so you can ensure that you are using your oscillators to the fullest of their potential. There are literally thousands of oscillators to choose from on TradingView. All of them probably have a solid use case, but there are a handful of oscillators that have stood the test of time. Those titans of the oscillator category would include the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Stochastic Oscillator. 1. Trading with Oscillators: Identifying Entry and Exit Points To use oscillators for trading, traders can look for signals to enter or exit trades. For example, a bullish signal could occur when the indicator crosses above its centerline, indicating that the trend is shifting from bearish to bullish. A bearish signal could occur when the indicator crosses below its centerline, indicating that the trend is shifting from bullish to bearish. Depending on if you are currently in a trade or considering a trade these bullish/bearish signals can be used as either an entry or exit signal. Traders can also use the momentum of oscillator indicators to identify overbought or oversold conditions. An asset is considered overbought when the oscillator is above a certain threshold, such as 70. Conversely, an asset is considered oversold when an oscillator is below a certain threshold, such as 30. Traders can use these thresholds to identify potential reversal points. Highly overbought can be power areas to look for entry or exit signals. 2. Oscillator Divergences: Confirming Trend Reversals and Continuations One of the most popular ways oscillators are used is by looking for divergences between the indicator and the price of the asset being analyzed. For example, a bullish divergence could occur when the price of an asset is making lower lows, but the oscillator is making higher lows. This could be an indication that the trend is about to reverse from bearish to bullish. Conversely, a bearish divergence could occur when the price of an asset is making higher highs, Oscillator is making lower highs. This could be an indication that the trend is about to reverse from bullish to bearish. 3. Using Oscillators in Combination with Other Technical Indicators While oscillators can be an incredibly powerful tool on their own, traders can also use them in combination with other technical indicators. For example, traders can use moving averages to confirm oscillator signals. If the oscillator generates a bullish signal and the price of the asset is above its 50-day moving average, it could be a strong indication that the trend is shifting from bearish to bullish. We see a similar use case in a bearish scenario to follow a trend! Traders can also use momentum in combination with other oscillators, such as the relative strength index (RSI) or the Stochastic RSI. These indicators provide additional confirmation of momentum signals and can help traders avoid false signals. This is actually one of our favorites as the Stochastic RSI is a measure of the momentum of the RSI. So their respective signals can complement very well. Putting It All Together Traders can put this knowledge forward to use most oscillators correctly to adjust their trading strategies and adapt to changing market conditions. We also recommend looking at information the creator of an oscillator has put out in regard to how to properly use the indicator. Traders can use these strategies to help modify or change their positions. For example, if the chosen oscillator used for an asset is weakening, it could be an indication that the trend is about to reverse. Traders can adjust their strategies accordingly by taking profit from their long positions or entering short positions. Similarly, if the chosen oscillator for an asset is strengthening, it could be an indication that the trend is about to continue. Traders can adjust their strategies accordingly by adding to their long and short positions or entering new long or short positions. In conclusion, oscillators are an extremely powerful technical analysis tool that can help traders identify potential trend reversals, trend continuations, and overbought or oversold conditions. By using oscillators in combination with other technical indicators and adjusting their trading strategies to adapt to changing market conditions, traders can improve their trading performance and achieve greater success in the markets.
Education
by LeafAlgo
2
Economic Fundamentals: Methodology, Activity, and ResourcesIn our second ever blog in our economics masterclass, we will be going over the extremely basic yet important basics of the markets. Today we will be going over Economic Methodology, The Nature and Purpose of Economic Activity and Economic Resources. Economic methodology Now Economics is a social science, it seeks to understand how individuals, businesses, and societies make choices and allocate resources to fulfil their needs and wants. As a social science, economics analyses human behaviour and interactions in the context of economic systems. Economists need to make assumptions in their analysis, often relying on the ceteris paribus principle. where it assume that other factors remain constant, allowing economists to build models based on real-life scenarios. It is also crucial to distinguish between positive and normative statements in economics. Positive statements are objective and can be tested with factual evidence. They are facts and contain words like will or is Normative statements are subjective and based on opinions. these judgments can influence economic decision-making and policy, leading to different conclusions from the same data. They often contain words like should, would or could. Phew, all the boring stuff done! 😅 Now onto the slightly more interesting stuff 1.2 The nature and purpose of economic activity In economics there is the golden rule, as humans we have unlimited needs and limited resourced The purpose of economic activity is to produce goods and services that effectively allocating resources to satisfy consumer needs and wants. which involves using scarce resources (inputs in the form of the factors of production) to produce desired outputs. Economists face decisions about what to produce, how to produce it efficiently, and who will benefit from the goods and services produced. Careful consideration is given to factors such as opportunity cost, distribution, costs, and productivity to ensure optimal decision-making, all of which we will go through in the future. Section 4.1.1.3: Economic Resources Economic resources encompass the following factors of production: land, labour, capital, and enterprise. Capital refers to physical goods used in production, while entrepreneurship (enterprise) involves managerial abilities and taking risks. Land represents natural resources, and labour refers to the workforce. These resources are rewarded through incentives such as interest, profit, rent, and wages. It's important to recognize that the environment itself is a scarce resource, comprising renewable and non-renewable resources. Proper management and sustainable practices are essential to maintain resource availability for future generations. 3 short yet boring lessons, In my opinion the section we are doing now (4.1 Individuals, firms, markets and market failure) is probably the most boring of them all. Please let me know in the comments how you found my first lesson! In the next one we will be going through Scarcity, choice and the allocation of resources and Production possibility diagrams, which will be slightly more interesting. I will also show a progress bar at the bottom of our posts. Happy Trading! Microeconomics 4.1 Individuals, firms, markets and market failure 4.1.1.1 Economic methodology ✅ 4.1.1.2 The nature and purpose of economic activity ✅ 4.1.1.3 Economic resources ✅ 4.1.1.4 Scarcity, choice and the allocation of resources ⭕ 4.1.1.5 Production possibility diagrams ⭕ 4.1.2 Individual economic decision making 4.1.2.1 Consumer behaviour ⭕ 4.1.2.2 Imperfect information ⭕ 4.1.2.3 Aspects of behavioural economic theory ⭕ 4.1.2.4 Behavioural economics and economic policy ⭕ 4.1.3 Price determination in a competitive market 4.1.3.1 The determinants of the demand for goods and services ⭕ 4.1.3.2 Price, income and cross elasticities of demand ⭕ 4.1.3.3 The determinants of the supply of goods and service ⭕ 4.1.3.4 Price elasticity of supply ⭕ 4.1.3.5 The determination of equilibrium market prices ⭕ 4.1.3.6 The interrelationship between markets ⭕ 4.1.4 Production, costs and revenue 4.1.4.1 Production and productivity ⭕ 4.1.4.2 Specialisation, division of labour and exchange ⭕ 4.1.4.3 The law of diminishing returns and returns to scale ⭕ 4.1.4.4 Costs of production ⭕ 4.1.4.5 Economies and diseconomies of scale ⭕ 4.1.4.6 Marginal, average and total revenue ⭕ 4.1.4.7 Profit ⭕ 4.1.4.8 Technological change ⭕ 4.1.5 Perfect competition, imperfectly competitive markets and monopoly 4.1.5.1 Market structures ⭕ 4.1.5.2 The objectives of firms ⭕ 4.1.5.3 Perfect competition ⭕ 4.1.5.4 Monopolistic competition ⭕ 4.1.5.5 Oligopoly ⭕ 4.1.5.6 Monopoly and monopoly power ⭕ 4.1.5.7 Price discrimination ⭕ 4.1.5.8 The dynamics of competition and competitive market processes ⭕ 4.1.5.8 The dynamics of competition and competitive market processes ⭕ 4.1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation ⭕ 4.1.5.11 Consumer and producer surplus ⭕ 4.1.6 The labour market 4.1.6.1 The demand for labour, marginal productivity theory ⭕ 4.1.6.2 Influences upon the supply of labour to different markets ⭕ 4.1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets ⭕ 4.1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets ⭕ 4.1.6.5 The Influence of trade unions in determining wages and levels of employment ⭕ 4.1.6.6 The National Minimum Wage ⭕ 4.1.6.7 Discrimination in the labour market ⭕ 4.1.7 The distribution of income and wealth: poverty and inequality 4.1.7.1 The distribution of income and wealth ⭕ 4.1.7.2 The problem of poverty ⭕ 4.1.7.3 Government policies to alleviate poverty and to influence the distribution of income and wealth ⭕ 4.1.8 The market mechanism, market failure and government intervention 4.1.8.1 How markets and prices allocate resources ⭕ 4.1.8.2 The meaning of market failure ⭕ 4.1.8.3 Public goods, private goods and quasi-public goods ⭕ 4.1.8.4 Positive and negative externalities in consumption and production ⭕ 4.1.8.5 Merit and demerit goods ⭕ 4.1.8.6 Market imperfections ⭕ 4.1.8.7 Competition policy ⭕ 4.1.8.8 Public ownership, privatization, regulation and deregulation of markets ⭕ 4.1.8.9 Government intervention in markets ⭕ 4.1.8.10 Government failure ⭕ Macroeconomics 4.2.1 The measurement of macroeconomic performance 4.2.1.1 The objectives of government economic policy ⭕ 4.2.1.2 Macroeconomic indicators ⭕ 4.2.1.3 Uses of index numbers ⭕ 4.2.1.4 Uses of national income data ⭕ 4.2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts 4.2.2.1 The circular flow of income ⭕ 4.2.2.2 Aggregate demand and aggregate supply analysis ⭕ 4.2.2.3 The determinants of aggregate demand ⭕ 4.2.2.4 Aggregate demand and the level of economic activity ⭕ 4.2.2.5 Determinants of short-run aggregate supply ⭕ 4.2.2.6 Determinants of long-run aggregate supply ⭕ 4.2.3 Economic performance 4.2.3.1 Economic growth and the economic cycle ⭕ 4.2.3.2 Employment and unemployment ⭕ 4.2.3.3 Inflation and deflation ⭕ 4.2.3.4 Possible conflicts between macroeconomic policy objectives ⭕ 4.2.4 Financial markets and monetary policy ⭕ 4.2.4.1 The structure of financial markets and financial assets ⭕ 4.2.4.2 Commercial banks and investment banks ⭕ 4.2.4.3 Central banks and monetary policy ⭕ 4.2.4.4 The regulation of the financial system ⭕ 4.2.5 Fiscal policy and supply-side policies 4.2.5.1 Fiscal policy ⭕ 4.2.5.2 Supply-side policies ⭕ 4.2.6.1 Globalisation ⭕ 4.2.6.2 Trade ⭕ 4.2.6.3 The balance of payments ⭕ 4.2.6.4 Exchange rate systems ⭕ 4.2.6.5 Economic growth and development ⭕
NASDAQ:TSLAEducation
by CosmosTradingGroup
1
Dealing with trading losses... before they occurLosses are part of this business. People do not react well to losses. Badly handled losses in trading can trigger bigger losses. Furthermore, these have the dangerous potential of wiping out entire accounts. If you want to make it as a trader you need to have a solid psychological approach to accept and handle losses. Lots of internet articles are suggesting that the way to prevent debilitating losses in trading is to follow risk management rules. What are those rules about? Basically, they are simple thresholds indicating the maximum $ /percentage you should risk per trade, day, month etc. Having such rules is a must but it’s not enough. You can still lose much if your mind is not actually prepared to implement them. That’s why many traders set rules only to break them in the most inappropriate moments. People do not follow their own risk management rules because they are not psychologically prepared to accept losses. They are not prepared for the pain caused by a loss or a series of losses. The single most efficient way to handle losses is to accept them consciously and unconsciously. One of the most dangerous ways to react to losses is “revenge” or “on tilt” trading. This happens when the pain caused by a loss is so high that the trader looses his / her rationality and only wants his / her money back, disregarding most of the things he / she actually knows about the market. The brain cannot accept the emotional discomfort and the fastest solution is to quickly find a trade to make the money back. Most of the time, the quickest trade is in the same instrument (FX pair, stock, etc) that generated the initial loss, by averaging down/up or flipping. Some of the most experienced traders can work their way out but the vast majority will only make things worse. In order to prevent this kind of psychological slippage you need to prepare your mind to consciously and unconsciously accept losses BEFORE they occur. With the help of a psychotherapist or by yourself you can perform visual exercises where you will imagine yourself being in a losing position and reacting the right way. This would desensitize yourself, if done right. The technique I always use each time I open a position is to do that desensitization process “on the fly”. I watch the market and I see an opportunity. BEFORE opening the position, I imagine myself in the posture of facing that trade ending in a loss. After that, I imagine that trade going the way I want. I might even go back and forth (in my mind) a few times between losing and winning. This way, I prepare my unconscious mind. If I cannot imagine myself easily handling the loss (or the win) I will simply reduce size. Pay attention though, I am not recommending here to imagine yourself constantly losing because this would do more harm than good. This would be a separate topic about the power of visualization exercises.
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
17
Price Channels — Quick and Easy Guide.Greetings, @TradingView community! When it comes to analyzing market trends, there's a technique that takes trend theory to the next level: price channels. This is @Vestinda, bringing you a helpful article on the topic of the price channels, also known as trend channels, offer an exciting way to identify optimal buying and selling opportunities in the market. Price channels serve as a valuable tool in technical analysis, helping traders determine favorable entry and exit points. By drawing parallel lines that align with the angle of an uptrend or downtrend, we create a channel. The upper trend line acts as resistance, while the lower trend line represents support. These lines highlight potential areas where the market could experience reversals or continue its current trend. Understanding the sentiment of a price channel is crucial. Channels with a positive slope (upward) are considered bullish, indicating an upward trend, while those with a negative slope (downward) are bearish, pointing to a downward trend. Recognizing the slope of a price channel allows traders to gauge the prevailing market conditions and make informed trading decisions. Price channels can be categorized into three main types: Ascending channels Descending channels Horizontal channels Ascending channels display higher highs and higher lows, signaling a bullish sentiment. To create an ascending channel, draw a parallel line touching the most recent peak, aligning it with the angle of the uptrend line. Conversely, descending channels exhibit lower highs and lower lows, suggesting a bearish sentiment. To create a descending channel, draw a parallel line touching the most recent valley, aligning it with the angle of the downtrend line Horizontal channels , also known as ranging channels, indicate a consolidation phase with no clear trend direction. These channels provide insights into potential buying zones when prices hit the lower trend line and selling zones when prices approach the upper trend line. Understanding these channel types empowers traders to adapt their strategies to different market scenarios. Constructing a price channel requires parallelism between the trend lines. The lower trend line is typically considered a "buy zone," while the upper trend line serves as a "sell zone." It's crucial not to force price action into the drawn channels. When the channel boundaries slope at different angles, the pattern is no longer a price channel but a triangle pattern, requiring a distinct analytical approach. Remember that price channels don't have to be flawlessly parallel. In reality, it's rare to find price action that perfectly aligns within two trend lines. As traders, it's important not to solely rely on textbook price patterns but also consider broader market context and other essential cues from price action. Effective price channel analysis involves embracing imperfections and making informed decisions based on the available information. In conclusion, price channels provide traders with a powerful technique to uncover profitable opportunities in the market. By drawing parallel trend lines and identifying support and resistance levels, traders can gain valuable insights into market sentiment and enhance their trading decisions. However, it's essential to remember that perfection isn't the goal. Instead, focus on understanding market dynamics and adapting your strategy accordingly. 💜 So there you have it - a quick and easy guide to understanding price channels in trading! 💜
INDEX:BTCUSDEducation
by Vestinda
19
HUDCO 240 MINS CHART LONG SETUP ✅✅✅✅The Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart). Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle. Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.... Tradelikemee Academy
NSE:HUDCOLong
by Tradelikemee
3
Wise words from Buffett’s annual letterWarren Buffett, often referred to as the "Oracle of Omaha," is one of the most successful investors of all time. His investment philosophy, centered around value investing and long-term growth, has transformed Berkshire Hathaway from a struggling textile company into a sprawling conglomerate, encompassing a diverse range of businesses from insurance and utilities to railroads and retail. Buffett's shrewd investment strategies and unparalleled business acumen have made Berkshire Hathaway a powerhouse in the global economy, and himself a beacon of wisdom in the world of finance. Warren has been investing through Berkshire Hathaway (BRK.A) (BRK.B) for 58 years, but he ascribes most of his success to remarkably few decisions. He writes: “Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.” The turbulent swings of the market are utterly engrossing. An overwhelming amount of information and analytics are constantly prompting us to act. However, taking into account Buffett's advice—that only one great idea is needed every five years—can help us understand the importance of every investment decision we make. This parallels another renowned saying from Buffett, advising us to limit the number of good investment strategies we attempt to execute. Buffett proposes a '20-slot punch card' guideline: Imagine being handed a card with only 20 holes, each punch representing each investment you could make in your entire life. After all the slots have been punched, you can't make any more investments. Given these constraints, you would be compelled to scrutinize each decision and would tend to invest heavily in what you've deeply pondered. Consequently, your results would significantly improve. Warren’s letter goes into his ‘secret sauce’ and some of the 12 ideas that have worked for him. Of particular emphasis this year: the compounding of long-term dividend and cash flow growth from his purchases 30 years ago, particularly Coca-Cola (KO) and American Express (AXP). He writes: “In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful sum at Berkshire. The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow. American Express is much the same story. Berkshire’s purchases of Amex were essentially completed in 1995 and, coincidentally, also cost $1.3 billion. Annual dividends received from this investment have grown from $41 million to $302 million. Those checks, too, seem highly likely to increase. These dividend gains, though pleasing, are far from spectacular. But they bring with them important gains in stock prices. At year end, our Coke investment was valued at $25 billion while Amex was recorded at $22 billion. Each holding now accounts for roughly 5% of Berkshire’s net worth, akin to its weighting long ago. Assume, for a moment, I had made a similarly-sized investment mistake in the 1990s, one that flat-lined and simply retained its $1.3 billion value in 2022. (An example would be a high-grade 30-year bond.) That disappointing investment would now represent an insignificant 0.3% of Berkshire’s net worth and would be delivering to us an unchanged $80 million or so of annual income.” Advice for contemporary investors: Given the resurgence of returns in the fixed income sector, where short-term Treasuries are currently yielding close to 5%, some investors are wondering if equities are now facing stiffer competition. However, these fixed income returns may find it challenging to outpace inflation over time. Unlike fixed income, equities such as Coca-Cola and American Express offer long-term compounding through dividend growth, which is a critical advantage for investors seeking wealth accumulation. In conclusion , Warren Buffett's investing principles, embodied in his stewardship of Berkshire Hathaway, provide invaluable lessons for all investors. Despite the allure of seemingly competitive returns in other markets, it is essential to remain focused on the long-term potential of equities, particularly those with a robust track record of dividend growth. As Buffett's success has shown, patient investing based on sound understanding and rational decision-making can yield substantial results over time. Stay tuned for more educational content and subscribe to our channel.
NYSE:BRK.AEducation
by financialflagship
Focusing on winning trades is your setback as a beginnerEvery individual begins their trading journey with the idea that trading is all about winning trades and making money. Soon after their dreams are shattered when they realise it was not as easy as they had thought it would be. Now as we all know, the road to success to many is long and difficult, and that’s exactly what makes them successful. So why should the road to success in trading be any different? Look at top performing athletes, they trained for years before reaching any kind of success that definitely did not occur overnight. This bring me to my main point where many traders could be failing due to focusing on winning trades rather than the process it takes to become a good trader. Every trader beginning their journey needs to understand that trading the financial markets is no different than a top performing athlete. In order to achieve success, one needs to develop their skills over years. Instead of focusing on winning every single trade, one should be focusing on the process and the experience they are gaining over this time. Studying your mistakes, your losses, your psychological weaknesses, your analysis, and your understanding of the charts, are far more important at this stage than focusing on winning trades. Look at your trading journey like a student attending university, a student will learn over years different topics, where some will seem worthless at the time, but will however develop their skills in the necessary fields to succeed in the future. Every beginner should deeply focus on the process. Winning trades are a by-product of a developed successful strategy which also requires a developed individual. The trader needs to be developed in their psychology above all in order to trust their strategy and apply it correctly without deviating from the plan. Take the time to focus on all aspects of your trading, and let the winning trades come as a result of that in the future. Trading is a marathon, not a sprint, always remember that.
COINBASE:BTCUSDEducation
by opes_trading_group
2
The Simple Plunge StrategyHello dear @TradingView community! Welcome to @Vestinda, your trusted trading companion in the ever-changing world of financial markets. Our team is passionate about giving traders like you the tools and knowledge to make smart decisions and achieve your investing and trading goals. At Vestinda, we know that successful trading involves using effective strategies, analyzing the market, and managing risk. That's why we sharing a strategy that can help you make the most of downward trends — The Simple Plunge Strategy. This strategy is designed to help you navigate downward movements in the market with confidence. It focuses on spotting specific patterns that occur during sharp drops in cryptocurrency prices. By understanding and applying this strategy carefully, you have the potential to increase your profits. The Simple Plunge Strategy involves looking for certain signs: a strong and sudden downward movement in price, shown by a big candlestick with high trading volume. After the drop, the price often recovers to levels seen when the candlestick opened. By closely watching how the price moves across certain boundaries, you can find good points to enter trades and set your profit targets and stop-loss levels. To use the Simple Plunge Strategy effectively, it's important to find the right entry points and manage your risk. You can find entry points by watching the price as it rises above the starting point of the candlestick with a big volume. To determine your profit target, you can use half of the candlestick range. And to manage risk, you can set a stop-loss order above the previous high point. This strategy can be used with different timeframes, but looking at 15-30 minute intervals can give you opportunities for quick trades. When applying the strategy to cryptocurrencies, look for coins or tokens that have experienced significant drops with high trading volume. Watch how the price moves above and across the starting point of the drop to find potential entry points. You can also find examples of Simple Plunge patterns on CEX platforms, which list various cryptocurrencies. Take a look at coins such as ETH, DOGE, and others to see instances where the price sharply drops and then rises again, indicating possible entry points. Remember, the Simple Plunge Strategy can also be used in reverse to identify opportunities during upward movements. A similar pattern often occurs when prices rise. We'd love to hear your feedback on the Simple Plunge Strategy. Have you tried this approach in your trading? Share your thoughts, questions, and experiences in the comments below. Let's have a lively discussion and support each other in the world of trading.
INDEX:BTCUSDEducation
by Vestinda
Ichimoku Target Price Theory V, N, E and NT CalculationsTHE BASICS: Here is a close up of the Ichimoku Kinkō Hyō indicator: Many people do not know that the Ichimoku Kinkō Hyō cloud system has its own Number, Wave, Target Price and Timespan Theories. After years of study, the numbers that Goichi Hosoda choose for his system are 9, 17, 26 as the basic numbers with 33, 42, 65, 76, 129 and 200~257. These numbers are used in the timespan as well as on the indicator itself. 9 is used for the Conversion Line (Tenkan Sen) 26 is used for the Base Line (Kijun Sen) 26 is also used for the Lagging Span (Chikou Span) and is used to shift the current price back 26 periods. The Lagging Span (Chikou Span) is an exceptional part of the system and allows you to see possible support and resistance levels without drawing any lines. The Leading Span A (Senkou Span A) is calculated using the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) values and is then plotted 26 periods into the future and shows potential future support and resistance levels. The Leading Span B (Senkou Span B) is calculated using double of 26 so 52 periods and is then and is then plotted 26 periods into the future. This also shows potential future support and resistance levels. Note that: The Area ABOVE the cloud is called the BULLISH ZONE. The Area BELOW the cloud is called the BEARISH ZONE. The Area IN BETWEEN the Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) levels is called the EQUILIBRIUM ZONE. Note that the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) ARE NOT MOVING AVERAGES but are instead calculated high and low midpoints of the price. So the Conversion Line (Tenkan Sen) is high and low calculated midpoint for the last 9 Periods (short-term) and the Base Line (Kijun Sen) is high and low calculated midpoint for the last 26 Periods (mid-term). THE ADVANCED: Ichimoku Kinkō Hyō Target Price Theory with examples: How accurate is Goichi Hosoda’s Target Price Theory? Using the history of the DJI/USD chart….. it turns out the calculation are very accurate. Note that i have added in timespans from Hosoda’s numbers to see if there is a day of change on the Ichimoku numbers 9, 17, 26, 33, 42, 65, 76, 129 and 200~257. Note that you can be flexible with these numbers so if a day of change is 8 days instead of 9 or 77 days instead of 76 then that is fine with this system. Ichimoku System has 4 Price Target Calculations called V, N, E and NT. A few of these we will see below. As you’ll see below, the calculations do change if they are POSITIVE or NEGATIVE. If we look at the Positive N Calculation from the Monday 3rd August 1896 until Monday 6th sept 1897 we can see that it was spot on. N Calculation positive N = C + (B-A) = D (B) $32.55 - (A) $20.77 = $11.79 (C) $27.79 + (B-A) $11.78 = (D) $39.57 The actual price it went to was $40.41 If we look at the above Negative V Calculation from the Monday 29th Sept 1929 until Monday 5th sept 1931 we can see that again, the calculation was spot on. V Calculation Negative V = B - (C-B) = D (C) $302 - (B) $194 = $108 (B) $194 - (C-B) $108 = (D) $86 The actual price it went to was $85.76 and continued to $40.72 If we look at this Negative N Calculation from the Monday 9th November 1931 until Monday 30th May 1932 we can see that again, it was almost spot on. N Calculation Negative N = C - (A-B) = D (A) $118.86 - (B) $69.85 = $48.75 (C) $89.87 - (C-B) $48.75 = (D) $41.12 Actual = $43.52 and continued to $40.72 If we look at the Positive V Calculation from Monday 4th July 1932 until Monday 17th July 1933 we can see that again, it was almost spot on. V Calculation Positive V = B + (B-C) = D (B) $81.63 - (C) $48.81 = $32.82 (B) $81.63 + (C-B) $32.82 = (D) $114.45 Actual = $110.90 If we look at the Negative V Calculation from Monday 4th Nov 1940 until Monday 13th April 1942 we can see that again, it was almost spot on. V Calculation Negative V = B - (C-B) = D (C) $131 - (B) $114 = $17 (B) $114 - (C-B) $17 = (D) $97 Actual = $92.60 If we look at the Positive NT Calculation from Monday 23rd March 2020 until Monday 10th May 2021 we can see that again, it was spot on. NT Calculation Positive NT = C + (C-A) (C) $26,114 - (A) $18,217 = $7,897 (C) $26,114 + (C-A) $7,897 = $34,011 Actually price went up to $36,971 which was until Monday 3rd Jan 2022. If we look at the Negative V Calculation from Monday 12th Dec 2022 until Monday 13th March 2023 we can see that again, it was close but off from about $600 but still would’ve made a profit. V Calculation Negative V = B - (C-B) = D (C) $34,344 - (B) $32,582 = $1,762 (B) $32,582 - (C-B) $1,762 = (D) $30,820 Actual price went to = $31,428 I have done these examples on the 1 week chart but this system also work for lower timeframes. I could go through and add much more calculations but i think you get the point with just these few. I hope this post has been helpful and insightful. For those interested, below are 2 links to my previous post about Ichimoku Kinkō Hyō that you may find helpful. Ichimoku Wave Theory: Ichimoku Crypto:
TVC:DJIEducation
by TradingThroughTheLens
3
"Discipline and Patience: The Key to Profitable Forex Trading"Forex trading can be a profitable and exciting way to invest money, but it also requires discipline and patience to succeed. The key to becoming a successful forex trader is to only take the best setups and to stay disciplined in your trading approach. The first step to staying disciplined in your forex trading is to have a solid trading plan. A trading plan should include your trading strategy, risk management rules, and goals. It should also include a set of criteria for identifying the best trading setups. Once you have a trading plan in place, it's important to stick to it. This means only taking trades that meet your criteria and avoiding trades that don't. It can be tempting to take trades that don't meet your criteria, but this can lead to losses and can derail your overall trading strategy. Staying disciplined also means being patient. Forex trading can be a fast-paced environment, but successful traders know that it's important to wait for the right opportunities. This means waiting for the right setup to present itself before entering a trade. It can be frustrating to wait for a good opportunity, but taking trades that don't meet your criteria can be even more frustrating in the long run. Another important aspect of staying disciplined in forex trading is managing your emotions. It's easy to get caught up in the excitement of trading and to make impulsive decisions. Successful traders know how to keep their emotions in check and to make decisions based on their trading plan rather than their emotions. In conclusion, forex trading requires discipline and patience to be successful. By only taking the best setups and staying disciplined in your trading approach, you can increase your chances of becoming profitable. Remember to have a solid trading plan, stick to it, be patient, and manage your emotions. With these skills in place, you'll be on your way to becoming a successful forex trader.
UEducation
by glorias3972
"Forex vs. Indices: Which Market is the Right Fit for You?Forex and indices are two popular investment options for traders. While both markets have their own unique features and advantages, it can be difficult to determine which one is better. In this blog post, we'll take a closer look at forex and indices to help you make an informed decision. Forex, or foreign exchange, is the market where currencies are traded. It's the largest financial market in the world, with an average daily trading volume of over $5 trillion. Forex trading offers high liquidity, low transaction costs, and the ability to trade 24 hours a day, five days a week. This makes it an attractive option for traders looking for flexibility and diversity in their portfolios. On the other hand, indices are a measure of the performance of a group of stocks in a particular market. Indices are often used as a benchmark for the overall health of an economy or sector. Trading indices allows investors to diversify their portfolios across multiple companies and industries, reducing the risk of investing in individual stocks. One of the key differences between forex and indices is the level of volatility. Forex markets can be highly volatile, with exchange rates fluctuating rapidly in response to global events and economic data releases. This can make forex trading exciting and potentially lucrative, but it also increases the risk of losing money. Indices tend to be less volatile than forex, which can make them a more stable investment option. Another factor to consider is the level of knowledge required to trade in each market. Forex trading can be complex, with a steep learning curve. Traders need to understand technical analysis, economic indicators, and geopolitical events to make informed decisions. Trading indices, on the other hand, is often simpler, as investors can focus on the overall performance of the market rather than individual companies. In conclusion, there is no straightforward answer to the question of whether forex or indices is better. Both markets have their own advantages and disadvantages, and the best choice depends on your individual investment goals and risk tolerance. It's important to conduct thorough research and seek professional advice before making any investment decisions
Education
by glorias3972
Double Top/Bottom Pattern #️⃣OKXIDEAS!!!👨‍🏫Hello, everyone!👋 (Reading time less than 7 minutes⏰) . There are many opportunities in the market that traders can get at every single moment. Some like to step up little by little, and some like to climb the mountain as soon as possible. The financial market, such as crypto and forex, is the same. That’s why some patterns represent the consequence of being an overnight millionaire. In this article, I will discuss two resembling patterns and talk about how to trade with them. ------------------------------------------------------------------------------------------------------------------------------------------------ Double Top Pattern: Double Top Pattern is the name of a classic pattern that can bring lots of money for the ones who use it to trade in different financial markets, such as cryptocurrency and forex. It’s noted that this pattern is used in two-sided markets, and stock traders cannot use Double Top Pattern to enter but to exit. Double Top Pattern is one of the most common technical patterns that can be used to identify an asset's roof on the chart. Stay with me to learn how this pattern is drawn on the chart and how you can get dollars out of it in very simple words. As the name suggests, Double Top represents the highest point of an asset in the area, which is known as a sensitive resistance zone. Reversal patterns are one of the most important chart patterns. So is Double Top, which occurs at the end of an upward trend. That means Double Top is a bearish reversal pattern. As the name shows, this pattern forms from two consecutive rounding tops according to the standard. Here you can see what the Double Top Pattern looks like: In an uptrend, the price breaks through resistance levels one by one, as it rises. When the price reaches a vital resistance level stronger than the last support level, that resistance pushes the price down, and it breaks through the support level. Buyers know that the uptrend has ended, and the price will enter a bearish channel. The shape of this pattern is like the letter ‘M,’ which has caused many traders to name it the ‘ M pattern ,’ but I call it ‘ Double Top ’ or ‘ Twin Top .’ Here are some tips you have to know to reduce the mistakes you’ll probably face on the path: Double Top can be used in any time frame. In Double Top Pattern, the peaks are not exactly the same size or at the same price. You are about to ignore any slight differences between them. The distance from the neckline to the top should be 20 to 25%(often) of the size of the upward trend; otherwise, it’s not considered a reversal pattern. As you see in the picture, the price goes up for a while when the buyers struggle to push it up, but it cannot pass the neckline, so it’s rejected. This neckline touch is called “the last kiss,” which is one of the best short-entry positions. I recommend that a trader considers pullbacks as confirmations. But on the other hand, you’ll lose some profits because not all the time pullbacks are completed. So, stay with me to tell you how to trade using the Double Top Patten. How to trade on Double Top Pattern There are some general methods that you can trade on Double Top Pattern; here you go: 1. Breaking neckline The first strategy to trade using the Double Top Pattern is to take a short position when the neckline is correctly broken. 2. The price retracement to the neckline (pullback/last kiss) The second useful strategy is to wait for the price to pull back to the neckline and then open a short position. It’s noted that the neckline is now considered a resistance line. 3. Combination of the first and second methods To enter the short position transaction using the double top pattern, you can use a combination of the first and second methods. You can divide the amount of volume that you want to enter into a short position into equal amounts or amounts that are consistent with your capital management. Your first entry point can be when the price breaks the neckline in a valid way (better a bearish marubozu candle) / the second entry point can be when the price pulls back to the neckline / there is even a third point, a little below the level the valley where pullback began to form. You can use a combination of the entry points I mentioned to enter a short position. Does The Double Top Pattern Fail? To tell the truth, all patterns have the possibility to fail, and Double Top is no exception. Indeed, it’s no big deal, dude. A trader always finds a way to make enough profits. As I mentioned, the Double Top Pattern is a reversal. When the price goes above the top, the pattern fails and is unsuitable for trading. In this case, a buy signal can be considered. When the price passes the Double Top and goes up, a neckline is formed at the top, the line that connects the two tops on the above chart. The entry point is when the price returns to this upper neckline. The stop-loss will be below the last bottom, and the take-profit point will be as long as the distance from the upper neckline to the last bottom. Here is a secret I’ll tell you. Usually, after the failure of these reversal patterns, the upward trend continues with more strength, and you can make profits faster. As I said earlier, during an uptrend, the price reaches its resistance zone, but it’s unable to pass it. Here the uptrend stops and finally it starts to go down in the opposite direction. Now the buyers are pushing the price up to retest the resistance level, which is a hard shield to cross, and sellers are the winners in pushing the price to go down for the second time. This movement makes a pattern called “Double Top.” But the point is that the Double Top pattern can appear in four different types. Bearish reversal Adam and Eve Patterns; in descending order of power and efficiency: 1st.Eve & Eve Double Top (EEDT) 2nd.Adam & Adam Double Top (AADT) 3rd.Adam & Eve Double Top (AEDT) 4th.Eve & Adam Double Top (EADT) Eve & Eve Double Top (EEDT) Let’s see what the Eve-Eve pattern looks like. As you can guess, Eve-Eve consists of two round peaks. That is, both tops are similar to the upside-down letter U. Adam & Adam Double Top (AADT) In this type of pattern, you can see mountain-like price tops. That means the tops are similar to the upside-down of the letter V. In this type, one or two candles hit the resistance level. Adam & Eve Double Top (AEDT) In the case of Adam-Eve, the tip of the first top is sharp, and the second top is round and wide, which has a shape like an upside-down U. Eve & Adam Double Top (EADT) In this status, the first top is round, and the second top is pointed. Eve-Adam Double Top Pattern is exactly the opposite of the Adam-Eve one. ------------------------------------------------------------------------------------------------------------------------------------------------ Double Bottom Pattern: Reversal patterns are in the tops and bottoms. The Double Bottom Pattern is a bullish reversal pattern that forms at the end of a downtrend, and it looks like the letter “ W ” in English. So it’s a good place to get a long position. Unlike the Double Top pattern, buyers take control of the market so that when the price hits the support zone, it is pushed up again. This pattern is one the best patterns for stock market traders with daily and long-term trades. Double Bottom can be used in any time frame. In two-sided markets, after engulfing the neckline, the potency of buyers increases, and more buyers enter the market. Trading volume increases after breaking the neckline, so the price gradient steepens. Here you can see an image of the Double Bottom Pattern: How to trade on Double Bottom Pattern After the price breaks the neckline, entering a long position can be profitable. But the confirmation is really important to be seen. The bullish Marubozu candle is one useful candle for pattern confirmation. Dojis and short candles are not that strong to convince confirmation. So you are about to face a fake break which leads the price to fall more. Follow the steps below to make profits: Entry points are like a double-top pattern. Stop-loss is below the bottom. Take-profit point is the distance from the neckline to the bottom. Failed Double Bottom Pattern Never forget that the patterns can be failed in the market due to the news and fundamental source. A professional trader is always looking for a valid confirmation. When the price falls below two bottoms, the pattern fails. But you can earn money with the failed pattern too. When the price passes the bottoms and goes down, a neckline forms under the pattern. This line connects the two bottoms. Here I go with the failed Double Bottom Pattern: The entry point is when the price returns to the neckline. The stop-loss will be above the last top. The take-profit point will be the distance from the bottom neckline to the last top. Here is a picture of what a Failed Double Bottom Pattern looks like. Classical patterns are in different shapes that directly affect their performance. Various types of Double Bottom Patterns are made with the Adam and Eve patterns. These types of Double Bottom patterns are as follows:(in descending order of power and efficiency) 1st. Eve & Eve Double Bottom (EEDB) 2nd. Adam & Eve Double Bottom (AEDB) 3rd. Eve & Adam Double Bottom (EADB) 4th. Adam & Adam Double Bottom (AADB) ------------------------------------------------------------------------------------------------------------------------------------------------ 🔔 Conclusion Reversal patterns such as Double Top/Bottom can be really profitable, but the essential thing is to follow your strategy and capital management. I also suggest that you follow these educational series posts to get all you need about trading.
Education
by pejman_zwin
22
"Unlocking the Secrets of Technical Analysis: A Beginner's GuideTechnical analysis is a method of analyzing financial markets that involves studying historical price and volume data to identify patterns and trends. This approach is based on the idea that price movements are not completely random, and that patterns in the past can provide insight into future price movements. Technical analysts use charts and other tools to visualize price movements and identify patterns, such as trends, support and resistance levels, and chart patterns. They also use a variety of technical indicators, such as moving averages and relative strength index (RSI), to help them make trading decisions. One of the key principles of technical analysis is that price movements tend to follow trends. Traders use trend lines and moving averages to help identify the direction of a trend and potential areas of support and resistance. Another principle of technical analysis is that history tends to repeat itself. Technical analysts believe that certain chart patterns, such as head and shoulders or double tops, can indicate potential trend reversals or continuation. It's important to note that technical analysis is not a crystal ball that can predict future price movements with 100% accuracy. Rather, it is a tool that can help traders make informed decisions based on historical price data. As with any form of analysis, it's important to use multiple sources of information and exercise sound judgment when making trading decisions. In summary, technical analysis is a method of analyzing financial markets that involves studying historical price and volume data to identify patterns and trends. Technical analysts use charts, tools, and indicators to help them make trading decisions based on the belief that price movements are not completely random and that history tends to repeat itself.
UEducation
by glorias3972