CHFJPY - 240 MINS MY VIEWThe 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
Educationalposts
As Above So Below - the harmony of the market In this real world, there is various philosophy that tries to explain the "As above, so below" harmony is the great law of nature but none can prove this law hence it's still a hypothesis.
The law of nature works on everything and the stock market is not untouched by nature.
I am not here to give a lecture on this law of nature but to prove how this harmony of nature is preserved in the stock market and to share my research work on 'Stock-et' science which is equally difficult as 'Rocket' science.
Many of you have heard of these famous patterns:-
-> 'Head and Shoulder'
-> 'Cup and Handle'
-> 'Rounding Top/Bottom'
-> 'Flag/Pennant'
-> 'Double Top/Bottom'
Do you all observe some correlation among them?
They all are candlestick patterns that either decide reversal or continuation, if this was your observation then probably you are correct but I wasn't indicating this.
Let me explain to you what kind of relationship I was talking about.
How do we estimate the target of these patterns? To the target level, we first measure the depth of the pattern i.e. how deep it's below the breakout level.
As its depth is below so will the height above.
Now, I think you all can draw how this law of nature is respected here in the candlestick pattern or more precisely in the stock market.
Let’s have an example to be more sound:-
The above chart describes how BTC fell after the breakdown following this law of nature.
It fell non-stop without showing any jerk until it attained the same depth as its height or say it fell until
the script attained the equilibrium.
This proves how the market preserves "As above, so below" harmony, the great law of nature.
Still not convinced then look to another example,
This is the vice-versa of the previously explained example, here index attains the height as the depth
of the cup - i.e. ' equilibrium' after giving a breakout.
This proves how the market preserves "As below, so above" harmony, the great law of nature.
Now let's look at this concept with different dimensions i.e. dimensions of mathematics, physics, and chemistry.
Don’t be afraid I'm not going to talk about 'Rocket' science but 'Stock-et' science.
-> In math, we all have read negative and positive cancels out i.e. (-3+3=0) same in candlestick patterns if the stock has a pattern depth of then the pattern target would be +30% to attain '0' or say 'equilibrium'.
-> In physics, we all have read that negative charges neutralize the positive charge to attain 'equilibrium' same in the stock market.
-> In chemistry, we all have read that all chemical changes occur in nature to attain 'equilibrium' i.e. two elements share their electrons to attain 'stability' ( H2O, here two hydrogen molecules share their 1 electron with 6 electrons of oxygen to attain equilibrium) this same happens in markets all market movements occur to attain 'stability'.
You all can use this law to get the target after the breakout or breakdown cause the pattern name matters less.
Generally, people have fantasies about 'Rocket' science but we traders have fantasies about 'Stock-et' science.
Please drop comments on whether you have a fantasy for any of the above science.
Also, let me know how many of you believe that the stock market doesn't work on speculation but has its science
let's call it 'Stock-et' science.
This Pivot Point Supertrend Strategy has up to 90% Success!Traders,
I'll review the Pivot Point Supertrend Trading Strategy in this video. This strategy has up to a 90% success rate with an avg. of 80-100% profits weekly. I think it's well worth our time to review and potentially implement or even automate going forward. Enjoy.
Stew
STOP LOSS AS LIFE SAVIOROANDA:XAUUSD
Stop-losses prevent large and uncontrollable losses in volatile trades. If you’re not using stop-losses, it’s only a matter of time when a large losing position will get out of control and wipe out most of your trading profits, eventually even your entire account!
If you’re serious about staying in the game in the long run and growing your trading account, it’s necessary to use stop-loss orders in every single trade you’re taking. That’s the first rule of this article – Always use stop-losses!
Stop-losses also play a major role in risk management. Depending on their stop-loss, traders are calculating what position size to take, how much money to risk on a single trade, how much they’re risking on any single dollar they’re making, and much more .
Time Stop
As their name suggests, time stops refer to closing a trade after a pre-specified period of time. For example, a trader who is day trading the market could close all of his open trades after the end of the trading day, while swing traders who don’t want to hold their trades over the weekend could simply close all trades by the end of the Friday trading session.
Time stops are best combined with other types of stop-loss levels. If your trade is still active by the end of the trading day or ahead of the weekend, you could look to close it manually in that case.
Percentage Stop
Finally, percentage stops are based on a percentage of your trading account to limit the total risk of a trade. For example, a trader with a $10,000 account who wants to risk 3% of his trading account on a single trade could place a stop-loss at a level that ensures his total potential loss is $300.
Some traders might think that percentage stops are a good way to manage and limit losses in the market. However, bear in mind that percentage stops imply placing a stop-loss at an arbitrary level, as long as the total potential loss doesn’t exceed a percentage of the trading account.
Much better results can be achieved by combining chart stops with percentage stops, i.e. a trader would place a stop-loss based on an important technical level and manage his total risk by adjusting the position size of the trade. We’ll show you how to do exactly that later in this article .
Trailing Stops
Trailing stops automatically move the underlying stop-loss level with each tick of the price that goes in your favour. However, if the price reverses and starts to go against you, a trailing stop will stay at its most recent level, limiting your losses or locking in unrealised profits.
CONCULUSION :
WETHER YOU DO FOREX , STOCKS OR CRYPTO TRADING , STOPLOSS IS IIMPORTANT , AND IT ALWAYS GIVE YOU ANOTHER OPPURTUNITY TO TRADE AGAIN
What is Bitcoin Halving?Bitcoin halving is a significant event on the Bitcoin network every four years. During this event, the block reward that miners receive for verifying transactions and adding new blocks to the blockchain is reduced by 50%. This means that the rate of new Bitcoin creation slows down, and the total supply of Bitcoin approaches its maximum limit of 21 million.
Bitcoin halving is a programmed event and is built into the Bitcoin protocol to ensure that the inflation rate of Bitcoin remains controlled and predictable. The reduced rate of new Bitcoin creation and the expectation of scarcity can increase the value of Bitcoin, which has historically led to an increase in the asset's price in the months leading up to a halving event.
Despite this, the market can be unpredictable, and the impact of halving Bitcoin's price is not guaranteed. However, the reduced supply of Bitcoin resulting from halving helps to maintain its value and ensure that it remains a finite and scarce asset.
The previous Bitcoin halving occurred on May 11, 2020, at a block height of 630,000. At that time, the block reward for miners was reduced from 12.5 BTC to 6.25 BTC per block. This was the third halving event in Bitcoin's history, following the first halving in November 2012 and the second halving in July 2016. The next Bitcoin halving is expected to occur in march 2024, at which point the block reward will be reduced from 6.25 BTC to 3.125 BTC per block.
After the first Bitcoin halving in November 2012, the price of Bitcoin increased by over 8,000% over the following year. After the second halving in July 2016, the price of Bitcoin increased by around 2,500% over the following 18 months. After the most recent halving event in May 2020, the price of Bitcoin initially experienced a slight drop but quickly recovered and went on to gain over 300% in value over the following year, reaching an all-time high of over $64,000 in April 2021.
Thanks
Hexa
SURPRISING SCIENTIFIC FACT ABOUT TRADINGBINANCE:BTCUSD
1. Three-quarters of dealers rated themselves above average, which is consistent with results from other psychological studies of overconfidence. Statistically, only 50% should have rated themselves as above average without the effect of overconfidence.
2. Dealers also overestimate their professional success, an effect known as the “better-than-average-effect”.
3. Trading experience eliminates the reluctance to realize losses.
4. Individual investors who think that their investment skills or past performance are above trade more frequently.
5. By examining over 400 traders with trading experience over 12 years at a bank, currency dealers show two types of overconfidence. They tend to overestimate the precision of their information and their personal competence.
6. The most senior traders are no less overconfident than their more junior colleagues.
7. In theory, irrational traders will be driven out of asset markets by trading losses. However, the examination of 400 experienced traders indicates that overconfident currency traders are not driven out of the market despite losses.
8. Overconfidence among foreign exchange dealers could affect equilibrium exchange rates.
9. Chinese investors make trading mistakes (selling winners and hold on to losers), they are reluctant to realize their losses, they tend to be under-diversified, they seem to trade often and they show a representativeness bias.
10. Middle-aged investors, active investors, wealthier investors, experienced investors and those living in urban cities are often unable to overcome behavioral biases.
11. Investors who were successful before trading online believed that their successes are due to their own investment abilities and become overconfident. Once individuals start trading online, investors have access to vast amount of data which can lead to the illusion of knowledge. Furthermore, managing their own trades by the click of a mouse leads to the illusion of control. All of these factors lead to increased overconfidence.
12. The response of exchange rates to stop-loss orders is larger, and lasts longer, than the response to take-profit orders.
13. Stop-loss orders are sometimes triggered in waves.
14. The reversal frequency at round numbers is greater than the reversal frequency at arbitrary price levels in 79% of examined 10 day periods.
15. Exchange rates trend faster after crossing round numbers which suggest that stop-loss orders propagate trends.
16. Large stop-loss orders are tightly clustered near rates ending in 00. In contrast, very large take-profit orders are not clustered.
17. Adding technical analysis, like moving averages to investment rules, can outperform other trading strategies.
18. Significant excess returns are possible using technical analysis in foreign exchange markets.
19. Technical trading rules exist for NASDAQ Composite and Russell 2000 but not for DJIA and S&P 500. Rules of technical analysis even generate significant profits and improve unprofitable trading rules.
20. Technical trading profits have gradually declined over time in 12 futures markets.
21. Stock prices temporarily rise following widely talked about events before reversing to pre-event levels over the next five days. On average, individuals lose 0.88% when prices reverse. 10
22. Attention-grabbing events lead active individual investors to be net buyers of stocks.
23. Individual investors who currently hold a company’s share, sell as prices increase during upper price limit events.
24. Individual investors are more likely to trade an S&P 500 index stock after an earnings announcement if that announcement was covered in the investor’s local newspaper.
25. The presence or absence of local media coverage is strongly related to the probability and magnitude of local trading.
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Top 15 mistakes and solutions in trading TOP 15 Trader's Mistakes
1 - Lack of knowledge of market operation, technical and fundamental analysis, mass psychology and market cycles
In the boom period, when a large number of new participants enter the market, many people believe themselves to be the "god of trading" and the "master of the markets."
Beginners are satisfied with a 10-20% profit during the expansion phase, whereas quotes for liquid cryptocurrencies show a gain of 30/50/150%. Everything is contrary to the logic of the majority, which is how markets function. Sadly or luckily, the majority of individuals make common errors and are unable, due to a lack of understanding, to differentiate the fine line when an uptrend is replaced by a downturn and the distribution phase is replaced by a prolonged decline.
At the moment of trend reversal, a psychological trap and a sequence of catastrophic events are established for the majority of participants, and a number of concomitant circumstances and lack of experience make it impossible to see the situation objectively.
When the market is at its "bottom," the majority loses faith in growth: some sell out and abandon the market, while others wait even lower, do not purchase, and begin shopping only when everything has increased by hundreds of percent.
Solution
Study theory. Dow Jones theory, the fundamentals of technical and fundamental analysis, and any information regarding market cycles will be of great use. Examining the graph using large timescales, such as days, weeks, and months. You may find a wealth of material about the fundamentals of trading in the public domain or in the trading part of our website.
2 - Covetousness resembles a psychological trap
Trading greed presents itself in numerous ways. Many are attracted to the cryptocurrency market by the idea of quick money, but the majority's problem is a lack of understanding of the mechanisms that move the market and how it functions.
In order to arouse greed, pampas are constructed with a single "stick to the sky." Everyone sees a growth of 1000%, and as a result, earnings of 20/40/50 and even 200% no longer appear so promising, people do not sell, they are waiting for more, and the price falls into the red.
Purchasing a full deposit's worth of cryptocurrencies in a single transaction is also greedy. The typical justification for such a "tactic" is that 10% of the overall deposit is greater than 10% of the portion of the deposit. Yet, when the price declines, the trader incurs losses and cannot cut the average entry price at lower values.
Another example is missed opportunity syndrome, or FOMO. The price of the item has climbed by an inadequate amount over the course of one or more candles. Seeing this process, a novice decides to purchase the asset because he believes the price will continue to rise, resulting in losses.
Many make the mistake of wanting to gain a lot of money quickly, but this is impossible. Fear and greed are particularly harmful emotions for traders.
Solution
The market requires a sensible strategy. Greed stems from inexperience and the fear of being late. Refrain from making decisions based on emotions and haste. It is essential to recognize that chances arise and disappear regularly on the market. Before initiating a trade, you should assess and justify your motives for doing so.
3 - Trading in emotional instability and excitement
Any emotion in trading is detrimental. The decision to enter or exit a transaction must be calculated beforehand, devoid of emotion and haste. Emotions make it difficult to appraise the situation accurately, and you run the danger of making a mistake that may result in losses.
Yet, since emotions are innate, it is impossible to eradicate them entirely; however, they can be managed. If emotions prevail, it is time to close the trading terminal and go on to other tasks.
If you wake up at night to check bitcoin prices or are unable to fall asleep, this indicates that you have already made key errors in your risk management system, or that you do not have one. And this requires immediate action and, as much as possible, a "cool" head.
Solution
Take a break from the trading terminal, spend time with loved ones, or go for a stroll; you need emotional relief and rest from time to time. Sports are effective stress reducers. If you have already reached the point of insomnia and emotional breakdowns, you must conduct a thorough analysis of your risk management strategy and take sometimes difficult measures.
If you have executed a number of unproductive transactions or one with an insufficient loss and you have the impression of "winning back," close the trading terminal immediately and do not trade on this day. Do not treat trading as a game of chance; in this emotional condition, you have no chance of success.
4 - leveraged trading
Margin instruments can be effective in the hands of a competent trader, though not always and only under certain conditions. This is simply an unmanageable machine for liquidating a deposit in the hands of a novice. Futures and margin are verboten for rookie traders, since you face the risk of not having time to develop experience, but losing your deposit instantly.
The average daily volatility of liquid instruments in a sideways movement can reach 3 to 10%, which indicates that squeezes may exceed adequacy when utilizing the 10th leverage - movements by 30 to 100% - on low-liquid pairs. When utilizing such leverage, setting a stop-loss is already problematic, as a stop-loss that is too far away would result in enormous losses in the event that it is triggered, and in nine out of ten situations it will be eliminated by an acceptable percentage. In addition, you will pay a commission for financing, taking into account leverage and transaction commissions.
Exchanges will gladly offer you with as much leverage as you like, but this is no longer trading; with this strategy, you have a greater chance of winning money at a casino.
Solution
Study the fundamentals of trading, master numerous techniques, develop your own trading strategy, and gain real-world trading experience on the spot market by physically purchasing and selling various assets. You will eventually comprehend how the market operates. Under certain circumstances, success on the spot market can be enhanced with margin.
5 - Uselessness of stops
Stops in trading are a substantial issue; stop-loss orders are covered in a different article. Stop-loss orders are frequently used irrationally or ignored by novice traders.
Traders can be roughly divided into two groups: those who always use stops and those who prefer to operate without them. However, these are extremes. A stop positioned too closely is liable to be obliterated, while the absence of a stop under certain conditions can result in enormous losses.
It is irrational to use stops during the accumulation phase because, in about eight out of ten instances, stops are eliminated precisely at those levels when there is a substantial accumulation of them, following which the price reverses and moves in the opposite direction. And when a significant upswing is established after a period of accumulation, a knockout almost always comes; it would be a shame to watch the price rise without participating. Yet there is a tight line here; you must be certain for a large percentage that this is the accumulation period, and you need also have a plan for price averaging, i.e. fiat in reserve.
It is irrational to work in the distribution phase without stopping, just as it is crazy to labor in the accumulation phase with a pause. This is significant because many people lose in these situations due to lack of expertise. Eventually, the distribution is finished and a decline occurs, frequently abruptly and by a substantial percentage. Stopping dramatically minimizes the loss.
If you have already opened a position and the price moves significantly in your favor, it becomes sense to place a stop-loss to safeguard profits so that if the price reverses, you will still make a profit and not a loss.
While dealing with margin instruments, stops are required!
Solution
If you have no trading experience, we recommend that you constantly utilize stops until you understand how they operate. If the fundamentals are understood, they should be applied sensibly to the circumstance. Similarly, if you were stopped out by a stop, you do not need to re-enter the trade, pause trading, identify what went wrong, and then determine the next entry point.
6 - Non-fixing losses incurred when the price moves against you but you do not close your position
If a trader becomes an investor owing to circumstances rather than his own volition, he is a poor trader. The "HODL strategy" is an explanation for a trader's insolvency and their own faults.
Long-term asset freezing is the worst thing that can happen to a trader - "I'll wait out the crypto winter and still sell for a profit" is not a trader's behavior model. It does not matter to a trader what the current trend is; he must have effective strategies for any scenario. Waiting out losses is a waste of resources since there is volatility at every price level, and volatility is an opportunity to make money.
Trading on financial markets necessitates the presence of lost deals; it's just the nature of the business. No trader has 100 percent profitable trades, and this is typical. Profitable trades must cover bad trades, and losses must be contained.
If you are unwilling to recover losses when the price moves against you, you lose control of the situation and become a victim of circumstances.
Solution
Before entering a trade, you should have a contingency plan in place in the event that the price moves against you. In certain circumstances, this may involve deliberate averaging, while in others, it may include fixing losses. Recognize that losing transactions are a normal part of the process.
7 - Transaction concluded too quickly
We touched on this topic briefly at the beginning of the article. The scenario is typical: a trader enters a position and the price begins to move in his favor. The trader takes profit at the predetermined level, but the price continues to rise. In itoge, fixed profit represents a modest proportion of the whole movement. The circumstance is representative of a powerful trend.
It would be a stretch to call this a mistake because the profit is fixed; however, in the case of a trading strategy with a limited number of assets, it can take a very long time to wait for the price to roll back below the exit point, in some cases an entire year, and in other instances, the quote may not return to its previous levels.
Solution
8 - Depending on your trading approach, there are a variety of solutions, including:
The gradual sale of a previously acquired asset at varying prices.
Selling of a portion of the asset to remove the invested funds from the transaction and earn a little return, reserving the remaining position (conditionally free asset) for longer-term objectives.
Profit protection with a stop-loss order and its progressive approach to the quote, but not too close so as not to be eliminated prematurely.
Deviation from the strategy or vice versa - lack of action flexibility
Confusion, agitation, and swinging between extremes are certain indicators of a lack of a trading strategy or an indication that it was constructed wrong. Planned action eliminates the possibility of unanticipated situations and makes risks manageable. The plan must account for both potential profits and losses. Frequent strategy adjustments during the trading process are typically detrimental.
The contrary is also true: a trading strategy must be adaptable to the current market environment. For instance, you are in a position and the price is moving in your favor, everything is going as planned, you are almost at your goals, but then you learn that the project whose coin you are trading was hacked. In such a circumstance, you will have very little time to make a choice. In such a circumstance, blind adherence to the strategy will definitely result in losses.
Solution
Your activities must be automated, and you must have a well-thought-out trading plan that takes into consideration all possible eventualities. In the event of a force majeure, it is vital to make swift decisions and build market-specific flexibility.
9 - "Finding knives."
Investing a major portion of the deposit in the purchase of an asset amid a severe price decline is a bad choice. It is known as "catching knives" in business parlance. No one can accurately predict where the price will stop fluctuating and begin to consolidate. Before making a decision based on a thorough analysis of the situation, it is vital to comprehend the core cause of such a decline.
You cannot make purchases after the upcoming autumn without comprehending the market's overall condition. After distribution at the peaks, the value of altcoins can decrease by 70 to 99 percent. To clarify, an asset in a bear market can lose 50% in a day, 50% in price, another 50% in a day, and another 50% in a day dozens of times before reaching its ultimate bottom. In addition, it is not a certainty that he would recover after this, particularly if it is an illiquid asset, of which there are thousands.
Solution
If you continue to employ this technique in your trading strategy, you should limit your exposure by allocating a smaller portion of your entire deposit and bear in mind that this "bottom" may not be the last one. With this strategy, it is crucial to master the fundamentals of technical analysis and how to construct horizontal levels and trend lines.
10 - Absence of system, algorithm, and subjective opinion
You must know beforehand where you are buying and selling, what portion of your deposit you are working on, the permissible losses, and the rationale for these activities at the same levels. All of this is a trading strategy. In acts, there should be no spontaneity, excessive self-assurance, or hesitancy.
You should not take the subjective opinion of another as the truth. The more confident words and assertions sound, the more confidence they inspire on a psychological level, directly into the subconscious, and you begin to feel that these are your own thoughts.
The bitcoin market is rife with numerous types of manipulation; therefore, every information must be double-checked. The situation is compounded by the fact that newcomers are frequently directed by their own expectations and desires rather than by objective data. For instance, a break in a trend or a breakdown of a horizontal level is objective evidence, whereas an item that is overbought or oversold is merely an opinion.
Solution
Incorporating risk management and financial management into your own trading strategy. Use objective knowledge, not the opinion of others, for analysis. If you consume a great deal of information regarding the crypto sector, you need carefully select your sources and listen to opposing viewpoints on the situation.
11 - Ineffective financial management
Money management should be the default inclusion in your trading plan. This entails splitting both the deposit and the assigned amount to join the asset, as for different trading techniques.
It is not suggested to purchase the entire anticipated quantity of cryptocurrencies in a single transaction, since it will be unable to equalize the entry price in the event of a price decline. Beginners frequently make this error while purchasing something with their entire deposit.
In addition, money management covers the distribution of trading and storage locations for assets. We do not encourage trading on a single exchange; use many exchanges. If your bitcoin is sitting idle on an exchange, withdraw it to a cold wallet or hardware wallet.
Solution
12 - Money management must be an important component of your trading plan
Too slothful to retain records
No professional trader would conduct business without keeping transactional statistics and records. It is impossible to comprehend one's own efficiency without this. Some exchanges provide account analytics at a high level, while others do not; however, all statistics are maintained for a specified time frame. After a while, you will forget the prices at which you acquired your own investment portfolio. It will be unusual to sell an item without knowing if you are making a profit or a loss.
A trading journal will educate you more than a dozen trading books combined. Record the purchase price, date, exchange, reasons for entry, feelings during the transaction, and similar information. After a period of time, you will be able to study and comprehend the causes of past errors and successful transactions.
Solution
13 - Notepad, pen, and a methodical approach.
Overestimated dangers
Regardless of the size of the deposit, restrict the allocated funds for high-risk strategies to a specific amount or percentage. In the event of a loss, continue trading with the current balance without replenishing it. If a profit is made and the balance increases, transfer a portion of the money to less risky methods or withdraw them to fiat.
Elevated risks include x5+ leverage, starting a trade with the full deposit or a substantial portion, entering an asset with a single order without averaging, and trading illiquid assets.
Solution
14 - A methodical approach to risk management.
Do everything and you will fail
There are various methods for constructing working portfolios. Someone trades many specific altcoins, someone trades simply bitcoin, and someone trades circumstances without reference to particular assets; however, success is the most important factor.
The enormous number of active cryptocurrencies is one of the primary obstacles for newbies. To handle the situation, it is required to comprehend a variety of project-related aspects, including fundamental analysis, technical analysis, order book status, transaction history, project-related news, price, etc. It is physically impossible to control more than five assets simultaneously without the assistance of a team of analysts.
By working with many cryptocurrencies, you run the danger of losing focus and overlooking crucial nuances that will effect the outcome.
Solution
Initially, do not trade more than three assets; if you can keep track of a larger number, you may gradually increase the quantity.
15 - Inability to withdraw from the market and await suitable conditions.
Staying out of the market is one of the most difficult aspects of trading for most novices. There are times when the wisest course of action is to monitor the market. It is not true that the more transactions there are, the greater the profit. You can conduct dozens of transactions per day and incur a loss in a month, or you can conduct two or three transactions per month and earn a profit.
It is easier to work during the growth phase, and without theory and experience, it is nearly difficult to earn a profit during the flat and downturn phases. If it were possible to make money during the growing phase, the ideal course of action during the turning point would be to take a vacation or limit the trading portion of the initial deposit in order to get expertise trading with little sums.
The remaining 99% of a trader's time is spent on self-development, market analysis, hunting for opportunities, and waiting for advantageous entry points into trades.
Solution
Utilize the time while you are out of the market to your advantage. Instead of mimicking a monkey's actions, participate in self-education: read foundational literature on trading, discover new trading tactics, and study the assets you're interested in as thoroughly as possible. In this way, at the moment when a beneficial situation occurs on the market, you will be ready for it.
Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
---
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5 MOST POPULAR TRADING STRATEGIES OANDA:XAUUSD
HI TRADER'S : I ALWAYS SAY THAT (90% TRADER'S LOSS 90% CAPITAL IN 90 DAY'S)
The reason is that Lack Of Knowledge , Lack of Patience , Lack of proper Risk management
You can Be among Those 10% Trader's , Those Are earning regularly From Market
But For That You Need To be Disciplined Trader
THERE ARE 5 MOST POPULAR TRADING STRATEGIES :
1. SCALP TRADING :
Scalping is a trading style that specializes in profiting off of small price changes and making a fast profit off reselling.
Scalping requires a trader to have a strict exit strategy
Because one large loss could eliminate the many small gains the trader worked to obtain.
2. INTRA-DAY TRADING :
Intraday trading means buying and selling stocks on the same trading day.
Intraday trading is also known as Day Trading. Share prices keep fluctuating throughout the day,
Intraday traders try to draw profits from these price movements by buying and selling shares during the same trading day.
3. SWING TRADING :
Swing trading refers to the practice of trying to profit from market
Swings of a minimum of 1 day and as long as several weeks.
4. TREND TRADING :
Trend trading is a trading style that attempts to capture gains
Through the analysis of an asset's momentum in a particular direction. When the price is moving in one overall direction,
Such as up or down, that is called a trend. Trend traders enter into a long position when a security is trending upward.
5. POSITION TRADING :
Position trading is a popular long-term trading strategy that allows individual traders to
Hold a position for a long period of time, which is usually months or years
NOTE : I HOPE YOU LIKE THE EDUCATIONAL POST ,
REMEMBER TO USE PROPER RISK MANAGEMENT WHILE TRADING.
Traders balance between intellect and emotionsHow can traders create a balance between intellect and emotion?
In trading, rationality and passion are two sides of the same coin. Rationality helps us make educated and reasonable trading decisions, but unbridled emotions may be harmful. How do traders strike a balance between these two factors?
- Understand your emotions and their influence on your trading is the first step. For instance, if you experience panic when you lose, you may terminate the deal early than necessary. If you are excited about winning, you may hang onto a position longer than required. Understanding your emotions and their influence on your trade can enable you to exert greater control over them.
- Create a trading strategy based on facts and data, not on your emotions. This will assist you in making more educated trading selections and avoiding emotional mistakes. Create a risk management compliance system that will assist you in minimizing losses and maximizing profits.
- Practice yoga and meditation to enhance your emotional control. This can help you become calmer and more concentrated, which will allow you to make better trading judgments.
- In conclusion, the equilibrium between intellect and emotion in trading is crucial for success. By understanding your emotions, adopting a sensible trading plan, and practicing strategies for emotion regulation, you may reach incredible harmony and balance, as well as make better educated trading judgments.
Throughout the trading process, you must practice and continually evaluate your psychological condition.
Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
---
• Look at my ideas about interesting altcoins in the related section down below ↓
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Bullish RSI divergence on Delta Corp ChartNSE:DELTACORP
As seen on the chart, DeltaCorp has shown bullish RSI divergence as the price went lower while RSI went higher. There is a very high probability that DeltaCorp could reverse from here and could reach at least 200
Disc - invested, for educational purposes only.
The Ultimate Beginner’s Guide To Trend TradingMany traders utilize forex trend trading specifically to increase their profits from currency exchange. The possibility to take a big number of pip moves due to a strong, directional price movement, a high probability of profit, and exceptional signal accuracy are only a few of the benefits of trend trading. These are the factors that make trend trading possible for traders.
In order to maximize price movement and minimize mistakes—which, no matter how hard one tries, will still happen occasionally—have let's a look at the fundamental algorithm of trend trading.
What is a Trend?
A trend involves a tendency for price to rise or fall over some time. There are two types of trends - bullish and bearish.
In a bullish trend, the price makes high bases and higher tops. Thus, the trend line during a bullish trend acts as support.
Bearish trends are the opposite of bullish trends. In this case, creates lower highs and lower lows on the chart. In this case, the bearish trend line can be drawn through the highs.
There are various trend indicators, but one of the easiest and most effective ways to analyze trends is to use trend lines.
A trend line is a diagonal line on a chart that connects several peaks or bases on the chart. The main function of a trend line is to act as support or resistance for price movement.
We see a bearish trend line that acts as a resistance line when the price is moving down. The arrows point to places where the price is testing the trend line as resistance. On the seventh price interaction with the bear trend, we get a bullish breakout. Price closes above the bearish trend line, implying that the trend is broken out and price direction is likely to change.
In a trending market, two types of systematic price movements are important for understanding the trend. These two types of price movements are called momentum and corrections.
A trend momentum is a price movement that occurs after interacting with a trend line and after the price bounces in the direction of the trend. Trend momentum leads to large price movements over a relatively shorter period.
Corrective price movements follow the momentum and return the price to the trend. A correction on the chart is not as attractive to trade. Traders without sufficient trading experience should stay out of the market when the price is in a correction phase. The reason for this is that corrections are relatively smaller and often last longer than momentum.
As you can see, price registers higher highs and higher lows, indicating that there is a bullish trend on the chart. Note that trend momentum leads to relatively large price movements in the direction of the trend. The third correction on the chart has about the same duration as the last momentum and later leads to a trend breakout.
How Do You Find Trends?
We already know that an uptrend consists of ascending highs and lows. And a downtrend consists of descending highs and lows.
But what if you see a chart that looks like this?
Is it the end of a downtrend and the beginning of an uptrend? Or is the price in a trading range? There is a problem in determining trends if you use higher highs and lows - this approach will always be subjective. So use a 200-period Moving Average (MA) to determine exactly what the trend is in the market right now.
Depending on the time frame, the market can move in different trends.
Downtrend on a Daily chart.
UPtrend on a Daily chart.
It would be a mistake to try to trade trends in different time frames. Instead, focus only on the main time frame and trade only in it. However, your trend trading can improve if you analyze charts of different time frames.
What types of trends are there?
Most traders believe that a trend consists of higher highs and lows. But that's not enough, because trends come in all kinds of forms. Some are better to trade with breakout strategies and some are better to enter only on pullbacks. There are three types of trending markets, which we will get to know.
Strong Trends
Buyers control the price and it is moving steadily upwards, there is only a little pressure from the sellers. This type of trend will have small pullbacks - around the 20MA level. In some cases, this type of trend will be so strong that it will move up without any pullbacks.
It will not be easy to enter this type of trend because corrections will be too weak or there will not be any. So, the best thing would be to try to catch this type of trend at the beginning of its movement and enter it on its breakdown. If the trend has already gained strength, it is possible to switch to a smaller time frame and look for entry points on the pullback there.
Regular Trends
Buyers are still in control of the price, but sellers are more active. This is due to someone locking in their profits or entering against the trend. This type of trend will have pullbacks to the 50 MA level.
Regular trends can also be entered on a level breakout, but you must be prepared psychologically to withstand a possible strong pullback to the broken level. You can always enter this type of trend later on its pullback to 50 MA.
Weak Trends
Buyers and sellers are fighting for control, with the buyers slowly starting to gain the upper hand. Price will move in large pullbacks beyond the 50 MA.
Soon the previous trend may change direction. Therefore, the best strategy is to enter the market at support and resistance levels.
Where Should I Place a Stop Loss in Trend Trading?
There are three logical places to place Stop Loss in trend trading: behind the Moving Averages, behind the previous pullback, and the dynamic trend lines.
Moving Averages
In a market with a strong trend, the price tends not to go over 20 MA. Thus, you should put your Stop Loss below 20MA.
If the trend is calmer and does not go behind the 50 MA, place your Stop behind the 50 MA line.
Previous pullback
You can always place a Stop Loss below the boundary of the previous pullback of the trend.
Trend lines
To avoid false triggering of your Stops, you can use the technique of placing a Stop Loss at a distance of one or two ATRs from the Moving Averages, the previous pullback, or the trend lines. Then your potential losses can increase, but your Stops will be well protected from accidental price spikes.
Peculiarities of Trend Trading
Before you start trend trading, you must first recognize a potential trend. Experienced traders will tell you that "The trend is your friend!" because the profits from a trending instrument are much higher and such trades can involve less risk. Let's discuss a few trading techniques for potential trends on the chart.
As we already know, if the highs and lows of price are rising, we are in a bullish trend. If the highs and lows are decreasing, we are in a bearish trend. In all other cases, we have no trend conditions.
Every two points on the chart can be connected by a straight line. However, if the third point is on the same line, then we have a trend. Thus, trend confirmation usually comes after price tests the trend at the third touch and bounces off of it. When you see the bounce, you can enter the market trying to catch the new trend.
Different Approaches to Trend Trading
Trend trading can be divided into two approaches:
Systematic trading;
Discretionary trading.
Systematic trading
Systematic trading clearly defines all the rules you must follow in your trading: entry point, profit taking place, risk management, and trade management.
Most of these actions can be automated by building automated models that are based on technical analysis with limited intervention by the trader. This approach is widely used by large hedge funds.
The trader can only determine the level of risk and markets to be traded.
Discretionary Trading
Discretionary trading has less clear-cut rules that a trader must follow. This approach requires constant participation in trades and is widely used by individual traders. Although discretionary trading is more subjective, it is still based on a trading plan.
Trend Trading Strategy
A trading strategy for trend trading is only 1/3 of the component of your success. Without proper risk management and discipline, even the best trading strategy will not help you trade profitably.
To develop a trend trading strategy for yourself, you will have to answer the following questions:
What time frame will I use?
What will be my risk level for each trade?
What markets will I trade?
Where will be my entry point?
Where will I exit if the price goes against my position?
Where will I take my profits if the price goes my way?
In practice, it would look something like this:
If the price is above the 200 Moving Average, the trend is uptrending.
In an uptrend, we expect two price touches in the area between the Moving Averages with periods of 20 and 50.
We open a long trade on the third test.
Stop Loss will be placed at a distance of 2 ATR from our entry point.
If the price goes in your favor, the trade will be closed when the price closes outside the 50 MA.
Alternative scenario:
If the 50 EMA is above the 100 EMA, look for an opportunity to open a long position.
We wait until the price closes above the 50-day high.
If the price closes above the 50-day high, we open a trade on the next candle.
Stop Loss is placed at a distance of 3 ATR from the last price maximum.
Never move Stop Loss against your position. Trade as many markets with low correlation as possible. Risk no more than 1% of your capital on any single trade.
Trading Pullbacks: How to Enter the Market with the Trend?
A pullback is a short-term price movement against a trend.
What are the advantages and disadvantages of trading on a pullback? A pullback gives us a good entry point with a good risk/reward ratio. However, we can miss a strong trend because sometimes trends move for a long time without a pullback. We also trade against the current price momentum.
Since most trading instruments stay within range boundaries or consolidation phases most of the time and market trends are only seen about 20-30 percent of the time, finding a settled trend and a good pullback can be a challenge.
As a trader who trades on pullbacks, you have to act like a sniper. You have to wait, then wait some more, sometimes for hours, if not days, before you enter the market. You need to find the entry point at which the price is likely to resume its movement in the prevailing trend.
Here are the three basic steps you need to take to successfully trade pullbacks with the trend:
Identify an existing trend.
Identify potential reversal areas or market conditions where the price may resume its trending movement.
Find a high-quality trading signal to enter the market that involves a high risk/reward ratio.
Pullbacks and Trend Trading
We have already mentioned the wise axiom "the trend is your friend." However, professional traders also know that the trend is your friend "until it ends."
Most of the time, financial markets remain in equilibrium, where major market participants have access to all the major news events and information. As a result, the price fluctuates slightly during the day, but in the absence of any new information, it usually does not make a particularly strong directional move.
However, after the release of important news, if the actual data diverges from the market consensus, we may see sharp price movements because this is where the market tries to interpret the new information to find a new equilibrium.
Bulls and bears sometimes have unique interpretations of news data, and they are invested in their interpretations. When most market participants or even a few large institutional players think the price should rise or fall, this kind of supply and demand imbalance can cause prices to spike or fall.
You can see how pullbacks approach the previous consolidation zone and serve as price reversal points on the chart. Pullbacks often test previous support and resistance levels. Since traders know that these levels previously acted as anchor points, a large number of pending orders are accumulated around these price levels.
As a result, when the pullback reaches these price levels, and if there have been enough orders in the direction of the trend, the market resumes its movement. Otherwise, the support or resistance levels are violated and a trend reversal may occur in the market.
While it may be relatively easy to identify a trend, measuring the likelihood of a trend continuing after a pullback, is a bit more difficult. Nevertheless, it is quite possible if you apply the right technical analysis tools and have a comprehensive strategy for trading on pullbacks.
For most new traders, it is best to trade on pullbacks rather than looking for countertrend opportunities.
What is a Pullback?
It is impossible to predict 100% when a pullback will end. But it has to be based on something. It can't just hang in the air. It may be:
-A previous resistance level becomes support.
-Resistance becomes support.
-Support that became resistance.
-Support becomes resistance.
-Dynamic trend lines.
-The pullback to the dynamic trend lines.
-Confirmation for entry into the trade we get when the candle closes in the direction of the current trend. This increases the positive probability of our trade.
However, sometimes this can cause you to miss a good trend movement.
So there is no definite answer here: to wait for a confirming candle or not.
If the price is above the 200 EMA then the trend is bullish.
Wait for the price to return to its support area.
Then expect a bullish candle in the direction of the trend.
Place a Stop Loss below the low of a reversal candle.
Take Profit at the nearest level.
The best entry points will be called structural - these are places where several conditions for entering the trade will coincide.
The price has approached the resistance level, which previously acted as support. The price touches dynamic trend lines. A bearish pin bar appears.
The price touches a strong support level. The 200 EMA also passes at this point. An absorption pattern appears.
The more structural factors combine in one place on the chart, the greater the probability of a profitable trade. However, the number of such sets with all structural factors will be quite small. Therefore, it will be best to find a balance and enter the market with 2 to 4 structural factors.
Trend Trading Strategy on Pullbacks
The first step is to recognize the trend. If the price is making higher highs and higher lows, we are seeing an uptrend. On the other hand, if the price makes lower highs and lower lows, we are seeing a downtrend. You can also use the two Moving Averages and confirm the trend when there is a crossover between them, and use them to confirm a pullback.
The instrument is in an uptrend. By adding two Moving Averages, the 13-period EMA and the 21-period EMA, we can get additional confirmation. When the fast EMA crossed the slow EMA, we could see a pullback. Remember, however, that the Moving Average crossover acts as a lagging indicator. By the time it generates a signal, the market may have moved slightly in the direction of the prevailing trend.
As a result, the risk/reward ratio in your trade may also increase. Consequently, it would be much better if you tried to identify a potential reversal area during a pullback and place your trades using more efficient methods to enter the market based on price action signals.
One of the main principles of technical analysis is that old resistance turns into new support and old support turns into new resistance. Using this principle, you can quickly determine where the market may reverse during a pullback.
Old support and resistance levels provide a great place to place your limit orders on the side of the prevailing trend.
You can also use another time-tested entry method. In this case, we are referring to the use of major Fibonacci retracement levels.
After the first uptrend, the price pulled back to the 23.6% Fibonacci level and then resumed the uptrend. After the second uptrend was completed, the price pulled back to the Fibonacci 38.2% Fibonacci recovery level, after which the trend resumed. Major Fibonacci levels act as hidden support and resistance zones in the market.
Once you have learned how to successfully identify the trend, the pullback, and the potential area where the pullback may end, you can look for an entry point into the market.
A simple pin bar or outside a bar near previous support or resistance, or near a Moving Average, can be an excellent confirmation that a pullback is ending and the trend is about to resume.
When the Moving Average and the downtrend line intersect, it confirms that the market is in a downtrend. Once the downtrend was confirmed, you could tell that the 1.5750 level was acting as significant resistance as the price bounced back from that level several times. However, instead of blindly entering the market near the reversal, we waited for a bearish pin bar, which confirmed the end of the pullback.
Trend Trading Strategy with MACD, Trend Line, and Volume Indicator
The MACD indicator consists of two Moving Averages, which interact with each other above and below the 0 levels. When the faster line overcomes the slower line in a bearish direction, being above 0, we expect the price to start trending in a bearish direction. When the faster line overcomes the slower line in the bullish direction, being below 0, we expect the price to start trending up in the bullish direction.
The MACD also has a histogram. This histogram shows the exact difference between the fast line and the slow line.
If the histogram is positive, the faster line is above the slower line, the long signal. If the histogram is negative, the faster line is below the slower line, the short signal.
Divergence is also good for determining the divergence between the price and the indicator. If the price increases and the MACD decreases, we have a bearish divergence, which indicates that the trend is likely to reverse. The same is true in the opposite direction for a bullish divergence pattern. If the price is declining and the MACD is increasing, we have a bullish divergence.
One way to trade trends is to combine the trend lines, MACD, and volume indicator.
We can try to match signals from the MACD indicator and a potential emerging trend line and perform a volume analysis. Imagine that you see an upward price movement on the chart. At the same time, the MACD is signaling a bullish crossover below 0, which confirms that the price is rising. In this case, we can expect a continuation until we see the opposite signal from the MACD.
A Stop Loss should be placed below the recent swing low.
The same technique works for bearish trends. If the price starts to consider lower tops and lower bases, we use a bearish MACD cross above 0 to open a short position.
The chart begins with a bullish MACD crossover. Note that during the crossover and continuation thereafter, the price is in a range. However, during the horizontal movement, trading volumes are constantly increasing. Suddenly the price creates a higher top, breaking the level of the previous top. This indicates a possible rise in price, and after a short correction, there is an opportunity to open a long position.
The price continues to rise with two momentum movements and their corresponding corrections. The MACD indicator is now in its upper area, indicating that we may see the end of this bullish trend shortly. Nevertheless, the position should be held until the MACD lines show a bearish crossover as indicated in the trading strategy.
Tips for Trend Trading
In order not to be deceived, do not use time frames lower than H1. Most often in M1, M15, etc. we just see market noise, imitating a storm of market activity, and changing many times a day.
Always check the trend you have detected in a higher time frame (for example, if you see a bullish trend on H1 - switch to D1 and check your conclusions). If the trends coincide - good, this is a signal for entry, if they diverge - do not enter the market.
Professionals use trends that are evident at least on the semi-annual chart, even better - the annual chart (it is visible on W1). The rule is simple: a true, time-tested trend does not change quickly and focusing on false trends and breakouts - is counterproductive and unprofitable.
Having chosen a trend - be faithful to it, to a reasonable limit. Do not react to the usual market volatility, "chattering", constantly provoking you to the wrong actions. Allow profits to grow. For example, all of 2017 EUR/USD was in a bullish trend, and traders who were able to use this (simple, in general) understanding - made good profits.
If you still went against the trend - you need to know how to "flip". If the price goes more than 200 pips against your open positions - can't be helped, there is no arguing with the market, open in the right direction, take a loss (liquidate a losing position) and earn more than you lost.
Summary
When trend trading, be sure to include economic news in your arsenal. Using only technical analysis will not give a complete picture of what is happening on the market.
Use trend trading and you will see that forex really brings profit. And of course to be successful with trend trading you need practice and remember that profitability depends very much on the broker you choose!
Types of Markets in TradingView Land !!!👨🏫Hello👋 dear traders. I am Pejman👦, and today I want to explain the types of markets📈 with another story from TradingView🎢.
Maybe you love the world of animation👶 like me, and I'm trying to make the trading world as beautiful and colorful as the animation👶 world🌍. So let's dive into another Tradingview🎢 land story.
Once upon a time⏳, in Hundred Acre Wood, Christopher Robin decides to go to Stocktopia to live with other traders and try to learn trading skills📉.
Since Winnie the Pooh🧸 likes Christopher Robin very much, he and his friends decided to go with him and move to the city🌆 of Stocktopia.
They all knew that the path might be long and complicated😢, so they decided to compare different Types of Markets 📈 and talk about markets📈 along the way🛣.
Do you know the Wise Owl 🦉? He always has many experiences of everything and explains them loudly.
On the other hand, he had a lot of experience in technical analysis and said: When I was a beginner, I was baffled😟 and even lost a lot of money🤑 because I didn't have a good perception of the market📈.
When my buy orders were filled, the stock would face a crash💥. And when I was selling, green candles📊 jumped one after the other. Annoying!😡
I only found out why when I went to Stocktopia and realized that the market📈 has its own types.
Trends are essential in the market📈, and you need to learn to recognize trends. For training, first, I had to know what technical analysis📊 and its benefits are.
There was a moment something caught my eyes👁 when I was surfing🏄♂️ on a website called “Tradingview,” and I opened the post to see what technical analysis is.👇
During my trading, I learned three types of markets 📈. Bullish 🟢, Bearish 🔴 & Range market📈.
Tiger🐯: Whoo Whoo Whoooooo! I liked the name of the Bullish trend🟢. Can we start from that first? What is a Bullish trend🟢?
The Wise Owl🦉 showed Tiger🐯 a chart from the book that was with him and said:
Dear Tiger🐯, to find a Bullish🟢 market📈, you must first draw a trendline like a dynamic support trend line.
Do you remember dynamic support and resistance lines? If you don't know these lines, it is better to read the story of Princess👸 Snow❄️White Chart and Trader Dwarfs before hearing the story of the market📈 types.👇
By the way, the Bullish🟢 market📈 is very similar to Tiger🐯. In the Bullish 🟢trend, buyers are happy and positive emotions are seen in the market📈 atmosphere.
There are more buyers than sellers. That is, buyers hope for the growth of a stock.
In the Bullish trend🟢, you must be fast, so that you don’t lose opportunities.
As you can see in the chart, the price inflates more like a balloon🎈. It goes Higher High (HH)every time and forms a Higher Low(HL)🗻 than the previous one.
But no Bullish trend🟢 is permanent.
The market📈 will experience a crash eventually. So you have to be smart because shopping will only sometimes be profitable. You will get bloody candles if you wait to buy them in time.
The Wise Owl 🦉 continued: The Bullish market📈 has conditions that I will explain based on my experience:
Each Low should be at least one step higher than the previous one and make a Higher Low(HL) like the Tiger🐯.
Usually, each High🗻 is formed one step Higher High(HH) than the previous one.
Preferably, when the price rises above a High🗻, it is better not to return below it.
This type of trend is called a Bullish market 📈 because when the bulls🟢 want to attack, they raise their horns from the bottom to the top. And the buyers increase the stock higher and higher by buying.
Christopher Robin asked: What if Higher High(HH) doesn’t touch the previous High🗻?
The Wise Owl🦉 said: This is a sign of a strong Bullish trend🟢. If you see such an event, prepare your dollars for shopping. Does anyone have any other questions?
Eeyore said: What is the trend of Bearish🔴? Why is it named like this?
Wise Owl🦉: How interesting that Eeyore himself asked this question because the Bearish trend🔴 is exactly like Eeyore. Ivor John has some negative feelings about him.
Shareholders also feel disappointment😩 and fear😱 in the trend. Because of this, the number of buyers decreases, and the number of sellers increases.
Candles turn red like roses🌹; the more sellers there are, the bigger this red flower garden🏡 will be.
Highs and Lows🗻 form one after the other lower⬇️ and lower⬇️.
In a downward trend🔻, if you are in a one-sided market📈, you should sell your shares, but if the market📈 is two-sided, you can present yourself for a sell/short position.
In this trend, negative emotions may dominate the market📈, but sellers will be happy.
Like the upward trend, the downward trend also has its conditions. Can you guess them before I say them?
Po said: Ah, in the growth trend, each High🗻 should be formed lower⬇️ than the previous High(LH)🗻, and each Low should be formed below the previous one(LL).
On the other hand, if the price falls below a Low in the downward trend, it is better not to return above that Low.
The Wise Owl🦉: It was great, Pooh🧸. Now let's take a look at this Bearish trend🔴 chart.
As you can see, there is no news of going up(HH)🔺 in downward trends🔻. Instead, we see Lower Lows(LL) and Lower Highs(LH).
But the market📈 is only sometimes bullish🟢 or consistently bearish🔴. Does anyone remember the name of the third type of market📈 that I mentioned?
Piglet answered with a bit of stress: Ummm, I think it was Range Market 📈.
Wise Owl🦉: Hohohoho, you are right, Piglet. But don't be afraid and don't stress because this market📈 has no particular trend.
If you looked at the chart and could not find an upward🔺 or downward trend🔻, the sea market📈 is tame, and no waves move the candles up🔺 or down🔻.
The number of buyers and sellers in the Range market📈 is almost equal. In the market📈, Range traders are like piglets.
A group of them have hope for stocks and buy with confidence, and another group is still afraid, like piglets, and thinks that the value of their shares may decrease. So they sell it.
Neither bears🔴 or bulls🟢 win in the Range market📈 because they need more trading volume to pull the market📈 in the same direction and form a strong up🔺 or down🔻 movement.
In the market📈, the price range is involved in two Ranges: buy or demand Range and sell or supply Range.
The support zone pushes the price upwards🔺 in the buying Range, but the resistance one does not allow the price to advance.
Therefore, the price is passed between these Ranges like a yo-yo until one of the parties enters more volume and breaks this price compression. The head will run away from one side when the price is done.
As you can see in the picture, finally, the sellers ran away from the price :) And the bears🔴 won over the bulls🟢.
Rabbit: I have heard that most financial markets are Range, and it’s more difficult to trade in this type of market. By the way, I don't want to rush, but I guess it's time to tell us the use of all this information.
The Wise Owl🦉 laughed and replied: "Hey, you didn't rush. Now that you are familiar with different types of markets📈, it is time to learn how to trade in these markets📈."
You must first draw trendlines in trending markets📈 to get a general view of the chosen stock📈. Then you can take a position in the direction of the trend.
Be sure to remember that you’re entering at the right points. Take your time, because waiting is a flower that doesn’t grow in everyone's garden.
The owl🦉 opened a new page and showed a downward trend🔻, which later turned into an upward trend🔺. Owl🦉 continued:
As you can see from the chart below, the price is caught under the bears' claws, and the market📈 is bearish🔴. It has formed Lower Lows(LL) and Lower Highs(LH).
But after the Bullish engulfing candlestick pattern, the trend changed and turned into a Bullish🟢 market📈.
If you want to learn about candlesticks and how to trade with them, you can go to the following post because I have collected how to trade with all candlestick patterns in this post.👇
As you know, the more the price collides with a trendline📈, the more valid the trendline will be. So these lines📈 will become valuable, like support or resistance lines📉.
In this example, we learned how effective candlesticks could be in identifying or finding the end of trends.
Now it's the turn of the Range market📈, and it is possible to trade in this market📈 considering the volatility of the trend.
In the Range market📈, as I said, the price is like a small fish🐠 stuck in a fast Eeyore.
The flow of water💧 and the flow of buyers and sellers move this fish🐠 into the Eeyore bed🛌.
As a trader, if you want to catch fish🐠 from this water, you must wait until it approaches one of the Eeyore beds🛌.
Up🔺 or down🔻 bed, i.e., support line or resistance line. You can buy when you see the price on the support line, and when you see it on the resistance line, it is time to sell.
Rabbit said: Haha. That is very easy. Buy low and sell high.
The wise owl laughed😂 and said: You are exactly right. Trading in this market📈 may seem simple, but this fish🐠 can escape anytime.
Trading in Range Market📈 is like eating a sandwich🥪. If you press your sandwich🥪 too much, the fillings of the sandwich🥪 maybe spilled out from the top or bottom.
Everyone heard the sound of Po's stomach and laughed😂. Po said: We have been walking for a long time, and I also ate my honey🍯 on the way. How much is left?
Christopher Robin looked around with his camera📸 and said we're finally there. I can see the lights💡 of Trading Wave🌊 Land🎡.
The Wise Owl🦉 continued: Now, knowing the types of markets📈, you can learn more than technical analysis in this land.
All of them went to the land of Trading Wave🌊, happy😊 that they got good information along the way🛣 by heaRange about the experiences of the wise owl.
If you want to learn how to trade well like the people of this land🎡, practice today's tips and join me every week because I have many stories to tell about this market📈.
This land🎡 is full of traders who lost their capital💸 and became disappointed😔 without carefulness and practice. If you don't want to be one of them, remember to manage your capital💸 and training.
I hope you are always healthy and prosperous😎.
Is Intel ($INTC) falling behind?In today’s educational article we will take a look at the basic metrics in Intel’s 10K annual report released a couple of days ago and define some basic stock fundamentals that an investor should take into account when analyzing a security.
Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment (macroeconomic) in order to arrive at a decision or recommendation.
If you want to invest in one company there are 2 main ways to do it:
• Invest in the debt of the company (buying corporate bonds)
• Invest in the equity of the company (buying shares)
Investors in debt are concerned with the company’s ability to pay interest and the principal.
Investors in equity are concerned about the profitability of the company which translates into the ability to pay dividends or the likelihood of the share price going up.
When we study Intel’s 10K we see some financial metrics that tell us about the business performance in the previous year:
- Revenue : Intel declared that their revenue was down 20% from 2021. The total figure was 63.1B vs 79B in 2021. The revenue ( sales) refers to amounts charged for the delivery of goods or services in the ordinary activities of a business.
- Gross Margin : was down 12.8% from the 2021 figure. In 2022 the gross margin for Intel was 42.6%. The gross margin is net sales less cost of goods sold (COGS). In other words, it's the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.
- Diluted EPS : Intel reported a diluted EPS that was down $2.92 or 60% lower than 2021. In 2021 they made $4.86 per share vs $1.94 in the previous year. Diluted EPS is a measurement used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised.
EPS : Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock.
- Operating cashflow : Operating cashflow was down $14B or 48% compared to 2022. The operating cashflow is defined as the net amount of cash provided from operating activities.
The company’s management said that 2022’s results were impacted by an uncertain macroeconomic environment arising from inflation, the war in Ukraine, and COVID-19 shutdowns in their supply chain in China.
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