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Example of how to select a volatility period Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- The date that I am talking about as a volatility period refers to a period in which there may be a movement that may change the trend. In other words, it means that there is a high possibility of creating a new wave as the volatility period passes. Basically, the volatility period is expressed as an issue regarding the coin (token) or a global issue, but the volatility period that I am talking about is expressed by the support and resistance points and trend lines drawn on the chart. - The support and resistance points refer to the points drawn on the 1M, 1W, and 1D charts. In other words, they refer to the points of the HA-Low, HA-High, BW(0), BW(100), and OBV indicators displayed on each chart. When indicating support and resistance points, indicators connected to the current price candle are unconditionally drawn. Also, indicators that are not expressed up to the current price candle are drawn starting from the one with the longest horizontal line. Among indicators that are not expressed up to the current candle, horizontal lines expressed less than 5 candles are not drawn if possible. If there are support and resistance lines that are expressed too closely, the support and resistance lines that are closest to the current candle are used. - The StochRSI indicator is used to draw a trend line. When the StochRSI indicator enters the oversold or overbought zone and reverses, that is, when a peak is created, those points are connected and expressed. Therefore, the peak created in the 20~80 range of the StochRSI indicator is ignored. Therefore, the trend line is created by connecting the high and low points of the StochRSI indicator. However, the high point connection line connects the opening price of the falling candle. If there is no bearish candle at the peak of the StochRSI indicator, move to the right and use the first bearish candle. When drawing the trendline for the first time, it is better to draw it from the vicinity where the current wave started. If the StochRSI indicator has two peaks in the overbought or oversold area, use both when it leaves the overbought or oversold area and then re-enters it. Otherwise, use only one peak at a time. - Draw support and resistance points and trendlines on each chart. - Find and mark points where trend lines or support and resistance points intersect at least two times. The importance is determined in the order of trend lines drawn on the 1M chart > trend lines drawn on the 1W chart > trend lines drawn on the 1D chart. Therefore, in order to express a period of volatility with a trend line drawn on the 1D chart, there must be at least two intersecting points. In other words, there must be at least two intersecting points when indicating a period of volatility, such as when trend lines intersect each other or when trend lines intersect support and resistance points. In addition, support and resistance points are also important in the order of 1M > 1W > 1D charts, so when they intersect with support and resistance points, they are selected according to this importance. - Then, if you hide the trend line, you will complete the chart showing the period of volatility. - When drawing for the first time, 1. When indicating support and resistance points, if you do not understand the arrangement of candles, it may be difficult to select. 2. It may be difficult to select the peak and candle of the StochRSI indicator. 3. It may be difficult to select which intersection point to select when indicating the volatility period. Since you cannot get used to everything at once, it is recommended to draw and observe one by one and try to solve the difficulty of the next step once you get used to it. - The StochRSI indicator on this chart is an indicator whose formula has been changed from the basic StochRSI indicator. Therefore, if possible, it is recommended to use the StochRSI indicator on my chart. If you use your own StochRSI indicator, Settings: 14, 7, 3, 3 (RSI, Stoch, K, D) Source value: ohlc4 If you change the values above, it will be expressed similarly. - Thank you for reading to the end. I wish you successful trading. --------------------------------------------------

Education

Do you really think hedge funds are using RSI?Back in the day when floor trading was a thing, cunning extroverts ruled the market by reading other people's mind and manipulating them, using their strategies against them face to face. When we stepped towards digital age, the upper hand transitioned towards people who were able to read the orderbook and decipher the intentions of the market participants, also manipulate them with their heavy limit orders. As the time progressed we become better at making the data accessible and some smart people invented their way of interpreting the market trough mathematical equations, which we call now "the indicators". As robots stepped into the game, the orderbook become too complicated for humans and the indicators and well established market formations remained as the last castle for traders. As it become more accesible trough platforms like tradingview more and more people started using indicator and even formation based strategies, which made it not work. The reason behind this paradox is that if we know a lot of people are using the same formula or pattern to take trading decisions, we can also use them as source of liquidity to execute our heavy transactions. So the indicators become the mask of the market makers. For example given the MM knows how an indicator is calculated, they also know what kind of price movement can make this indicator fire a signal and make traders step in. In most of the cases indicator based strategy backtests returns poor results and you can verify that by looking at almost every strategy published on tradingview that shows "realistic" performance aka no repaint no portfolio tricks etc, we see that they are not able to outrun the market. On the other hand a lot of people believes if we feed price and volume data to an Artificial Intelligence model, we got the money printing machine. I have been working on this idea since 4 years and I never met someone better than me in my field and specilization as a Computer Science Student at Georgia Tech and I tried eveything, trust me "everything" and it never worked out. So I knew that there is a missing piece candle sticks and volume are missing something, and I know what is it now: "orderflow" When I first started learning about orderflow -around a month- I realized all of the indicators I did before including hundreds that I trade based on but not publish, are not explaning why the market moved and why the market can move or not, they are just my way of trying to make backtests work under the assumption if they did work they will work in the long run, law of big numbers. Conversly, the orderflow method is the first thing I encountered that answers questions like why and when and actually makes sense. I started consuming the whole online content like forums youtube books etc full time and got an actual understanding how market actually works. I got the cheapest subscription for the cheapest orderflow platform for 20 bucks just to give it a try and started analyzing historical data with tools footprint charts, delta-cumulative delta and volume profile. What I saw was the inside of the market, not only the results like candlesticks but rather the causation behind it. I made a mind map of all the information I gathered and come up with some strategies, and what is it? Something that works for the fist time in the last 4 years of my inhuman effort. I started forward testing with paper trading and it is going well so far. What I am trying to say is that without knowing the story you cannot be the main charachter, learn orderflow and got rid of all of the bunch of funny lines on your screen. It is not the wholly grail, you still need to be smart and cautious, and psychologically strong when trading, but it is something that can make what you want to achieve possible.

Education

So our bull targets done in crude oil This free new indicator helps to get accurate signals almost on all time frames and if you as me i use it on 15m chart normal candles , so lets talk about crude oil - when to take trades now- waiting for the bear signal between 5850-6200 if bear signal we can hold around 70 points tp with 20 sl Prediction are simply gambling but depending on market situation it shows that market can go upto 6200 or more with 30% chances or else it can open gap down and and go till 6100 or 6110 or more with 50 % chances. or it can break 6100 and give a bear signal around 6070 with 20% chances. the indicator you seeing is totally free and will be available soon, keep following. good luck

Education

by hormuzdengineer

The Importance of Stop Loss and Emotional Discipline in Trading The Importance of Stop Loss and Emotional Discipline in Trading “The market doesn’t care about your emotions; it follows its own rules.” One of the most critical aspects of successful trading is setting a stop loss and sticking to it. Here's why: Protect Your Capital Trading without a stop loss is like driving without brakes. A stop loss helps limit your losses and keeps your trading capital safe for future opportunities. Stay Disciplined Many traders make the mistake of moving their stop loss further away out of fear of being stopped out. This is a slippery slope that can lead to even larger losses. Stick to your plan, no matter what. Remove Emotions from Trading Fear and greed are your worst enemies. By predefining your stop loss, you eliminate emotional decision-making in the heat of the moment. Focus on Risk Management Before entering a trade, always ask yourself: What’s my risk-reward ratio? How much am I willing to lose if the trade goes against me? Learn to Accept Losses Losses are a natural part of trading. A stop loss isn’t a failure; it’s a tool to protect you and keep you in the game for the long term. Key Tip: Never remove your stop loss hoping the market will “come back.” Hope is not a strategy—discipline and planning are. Let your emotions stay out of your trades. Protect your capital, trade your plan, and let the market do the rest.

Education

Some experience for new comers Never buy high, never sell low (Though you will find sometime low is not low high is not high when you trade long enough) ChrisShawky: Do not pay anyone to teach you: always a scam JRobs88: go sign up for IBKR account. It’s free. And then use their online school. Babypips.com another great place to start. coreyhouck: demo demo demo demo and then some more demo Bone-Collector-444: My advise is stay on demo, its enough to make u realize this is a a scam rteglersVIX: deomo for a year demo for whatever time.. 1yr and over JRobs88: I’ve been trading over 10 years and I STILL use demo almost everyday. kalospec: Just stop, and focus on other things, not trading. It will ruin your life. The mentality and pressure of people using real accounts and demo accounts are completely different. Mentality and pressure will greatly affect people's judgment. You can only fully learn to trade by using real accounts. When you start using real accounts, my suggestion is that the funds used in the account should be such that your life will not be affected even if you lose 20 or more accounts. Don't just look at those who become rich overnight, look more at those who go bankrupt. Some people even lose their lives because they overuse leverage. I have seen even those who have been profitable for ten years eventually went bankrupt.

Education

How to Identify Significant Liquidity Zone in Gold Trading A liquidity zone is a specific area on a price chart where the market orders concentrate. In this article, I will teach you how to identify the most significant liquidity zones on Gold chart beyond historical levels. Liquidity Zones First, in brief, let's discuss where liquidity concentrates. Market liquidity concentrates on: 1. Psychological levels Above, you can see a clear concentration of liquidity around a 2500 psychological level on Gold price chart. 2. Fibonacci levels In the example above, we can see how 382 retracement of a major bullish impulse attracts market liquidity on Gold XAUUSD daily time frame. 3. Horizontal support and resistance levels and trend lines. In that case, an area based on a classic support/resistance level was a clear source of market liquidity on Gold. Significant Liquidity Zone A significant liquidity zone will be the area where psychological levels, Fibonacci levels, horizontal support and resistance levels and trend lines match . Please, note that such an area may combine the indicators, or any other technical tools. Such zones can be easily found even beyond the historic levels. Look at a price chart on Gold on a daily. Though the market has just updated the ATH, we can spot the next potentially significant liquidity zone with technical analysis. We see a perfect intersection of a rising trend line, 2600 psychological level based on round numbers and a Fibonacci extension confluence of 2 recent bullish impulses. These technical tools will compose a significant liquidity zone. The idea is that Gold was rallying up because of the excess of demand on the market. We will assume that selling orders will be placed within that liquidity zone and the excess of demand will be absorbed by the supply. It will make the price AT LEAST stop growing and potentially will trigger a correctional movement. Learn to recognize such liquidity zones, it will help you a lot in predicting Gold price movements. ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

Practical Guide to Building Profitable Trading Strategies After reading this article, you'll understand the key elements needed to build a profitable trading system, identify potential flaws, and learn how to fix them for consistent results. Four Essential Elements of an Effective Strategy 1. Trend Identification ("Should I buy or sell?") - 50% of success The trend is the foundation of any strategy. To identify it, you can use tools such as moving averages, volume profiles (when volume accumulates above the current price, it signals a downtrend; when it accumulates below the price, it signals an uptrend), or even macroeconomic analysis, news sentiment, and crowd psychology for additional confirmation. For example : If the 200 SMA indicates an uptrend, focus only on buying opportunities. Tip : Avoid using multiple tools for the same purpose as conflicting signals can lead to confusion. One reliable tool per element is sufficient. 2. Key Level Identification ("Where should I enter the trade?") - 30% of success This element helps to locate zones with the most favorable risk/reward (RR) ratio. Fibonacci levels, support/resistance zones, pivot points or smart money concepts can indicate whether the price is at a discount, premium or fair value. For example : Pivot points can be used to identify levels such as the "pivot point" and the nearest support/resistance zones. Tip : Your entry point should be supported by a support or resistance level, while the path to the take profit target should remain unobstructed. 3. Entry Signals ("When should I enter?") - 15% success rate Entry signals can be determined by oscillators such as stochastics, candlestick patterns or volume spikes. For example : When the price reaches a support zone and the Stochastic leaves the oversold area (crossing above the 20 level), this could be a signal to enter a long position. Important: Signals only help with timing; they should not be the basis of your entire strategy. 4. Filters for accuracy - 10% of success Filters improve the quality of trades by adding additional conditions. Examples include volatility (ATR), trend strength (ADX), volume or seasonal patterns. Example : Volume can confirm the strength of a trend or a potential reversal. For example, if the price reaches a support level after a correction and volume spikes, this could indicate buying activity and a possible reversal. Tip : If your strategy uses price-based tools for trend, levels and signals, consider adding a non-price based filter (e.g. volatility or volume). Step-by-Step Plan for Identifying Trading Opportunities Here's how to combine these elements into a strategy: Identify the trend: Use a tool such as the 200 SMA to determine the direction of the market. Find the key level: Use Fibonacci retracements or support/resistance zones to locate critical price levels. Wait for a signal: Confirm with candlestick patterns, oscillators or volume. Apply filters: Ensure that market conditions are in line with your strategy using ATR or volume analysis. Why it is important to adjust your strategy Markets are constantly evolving and no strategy works equally well in all conditions. Adjusting parameters to current conditions is critical for consistent success. Consider: Asset type: cryptocurrencies, forex, stocks, etc. Market conditions: trending, range-bound or highly volatile markets. Timeframe: intraday, swing, or long-term trading. Example 1 : Moving averages (e.g. 200 SMA) work well in trending markets, but lose effectiveness in sideways conditions. In such cases, oscillators such as RSI or Stochastic provide more precise entry and exit signals. Example 2 : During periods of high volatility, such as after major news events, ATR can help set stop-losses and take-profits to account for wider price ranges. Example 3 : Shorten the length of the SMA for faster intraday trading. The importance of testing your strategy Before using a strategy in live markets, you should ensure its effectiveness. Testing is critical, especially for beginners, to avoid unnecessary mistakes and losses. Backtesting : Use historical data on platforms such as TradingView to see how your strategy would have performed in the past. Trading simulators : Test your strategy on demo accounts or trading simulators to mimic real market conditions. Success Metrics : Evaluate your strategy using key metrics such as profit factor, risk-reward ratio, and expectation. Tip: Analyze both winning and losing trades to identify weaknesses and refine your approach. Let's discuss This is just the beginning. I'll cover each element in more detail in future articles. If you have your own approaches that make your strategies successful, share them in the comments. Let's share and improve together!

Education

by Crypto_Strateg

Volume Profile: Why I don't trail stops!Two great examples happened this week on INDEX:ETHUSD and S&P 500 futures where price respected the Volume Profile level TWICE! This video is a tutorial on Volume Profile to demonstrate why it is a "cheat code" for finding GREAT LEVELS! I do not trail stops because when I put a trade on I want it to be at a Support/Resistance: I wan price to HOLD that level. If it holds a GOOD level... it should hold it AGAIN! Just like these two did. You should never have to move your stop up from a Volume Profile level.

Education

09:01

Trading the Santa Rally: How to Ride the Supposed Year-End Surge The Santa Rally — a festive event characterized by silent nights and active markets. Every December, traders whisper about it with a mix of excitement and skepticism. But what exactly is this supposed year-end market surge? Is it a gift from the markets or just a glittery myth? Let’s unwrap the truth. 🎅 What Is the Santa Rally? The Santa Rally refers to the tendency for stock markets to rise during the last few trading days of December and sometimes even the first few days of January. It’s like a financial advent calendar, but instead of dark chocolate, traders hope for green candles. The origins of this term aren’t entirely clear, but the event is widely observed. Analysts cite everything from holiday cheer to quarter-end, year-end portfolio adjustments as possible reasons. But beware — like a wrongly wrapped gift, the rally doesn’t always deliver what you expect. 🎄 Fact or Festive Fiction? The Numbers Don’t Lie (Mostly): Historical data does show that markets have a knack to perform well during the Santa Rally window. For instance, the S&P 500 SPX has delivered positive returns in about 75% of the observed periods since 1950. That’s better odds than guessing who’s going to win the “Ugly Sweater Contest” at the office. Not Guaranteed: However, let’s not confuse correlation with causation. While historical trends are nice to know, the market isn’t obliged to follow tradition. Geopolitical events, Fed decisions, or even a rogue tweet can easily knock this rally off course (especially now with the returning President-elect). 🚀 Why Does the Santa Rally Happen? 1️⃣ Holiday Cheer : Investors, like everyone else, might be more optimistic during the holidays, leading to increased buying momentum. After all, not many things can say “joy to the world” like a bullish portfolio. 2️⃣ Tax-Loss Harvesting : Fund managers sell off losing positions in early December to offset gains for tax purposes. By the end of the month, they’re reinvesting, potentially pushing prices higher. 3️⃣ Low Liquidity : With many big players sipping mezcal espresso martinis on the Amalfi coast, trading volumes drop. Lower liquidity can amplify price movements, making small buying pressure feel like a full-blown rally. 4️⃣ New Year Optimism : Who doesn’t love a fresh start? Many traders sign off for the quarter on a positive, upbeat note and begin setting up positions for the year ahead, adding to upward swings. ⛄️ The Myth-Busting Clause While these factors seem plausible, not every Santa Rally is a blockbuster. For example, in years of significant economic uncertainty or bearish sentiment, the holiday spirit alone isn’t enough to lift the market. 🌟 How to Trade the Santa Rally (Without Getting Grinched) 1️⃣ Set Realistic Expectations : Don’t expect a moonshot. The Santa Rally is more of a sleigh ride than a rocket launch. Focus on small, tactical trades instead of betting the farm on a rally (and yes, crypto included). 2️⃣ Watch Key Sectors : Historically, consumer discretionary and tech stocks often perform well during this period. Consider these areas, but always do your due diligence. 3️⃣ Manage Your Risk : With low liquidity, volatility can spike unexpectedly. Tighten your stop-losses and avoid overleveraging — Santa doesn’t cover margin calls. 4️⃣ Keep an Eye on Macro Events : Is the Fed hinting at rate cuts (hint: yes it is )? Is inflation stealing the spotlight (hint: yes it is )? These can overshadow any seasonal trends. ☄️ Crypto and Forex: Does Santa Visit Here Too? The Santa Rally isn’t exclusive to stocks. Forex markets can also see year-end movements as hedge funds, banks and other institutional traders close out currency positions. Meanwhile, traders in the crypto market have gotten used to living in heightened volatility not just during the holidays but at any time of the year. More recently, Donald Trump’s win was a major catalyst for an absolute beast of an updraft. 🎁 Closing Thoughts: Naughty or Nice? The Santa Rally is a fascinating mix of tradition, psychology, and market mechanics. While it’s fun to believe in a market jolly, it’s better to stay prepared for anything out of the ordinary. So, are you betting on a rally this year, or are you staying on the sidelines? Let’s discuss — drop your thoughts in the comments below and tell us how you’re planning to trade the year-end rush! 🎅📈

Education

How To Back-Test With TradingView Hey, In this video I show you how to back-test within TradingView and give away key tips and tricks that you probably did not know! Good luck with it and take notes! Kind regards, Max Nieveld

Education

08:51

by newcapitalfx

10 Brutal Truths About Why Retail Support & Resistance Fail !CAPITALCOM:GOLD 10 Reasons Why Retail Support and Resistance Levels Fail: Unlocking Gann’s Secrets to Market Mastery Here’s a deeply researched, professional explanation for each point, infused with Gann’s quotes, examples, and concepts, to open the eyes of traders to why retail methods often fail and how Gann's wisdom provides clarity. 1. Static Levels in a Dynamic Market - Explanation: Retail traders often draw support and resistance (S/R) lines as static horizontal levels, expecting the market to repeatedly respect them. However, Gann emphasized the dynamic nature of markets, stating: "Markets are never still; they are always moving, reflecting time and price interplay." Markets are influenced by cycles, trends, and time frames, making S/R levels fluid rather than fixed. For instance, Gann’s Square of Nine shows how support and resistance rotate based on angles and time increments, offering precise levels that adapt dynamically. Retail traders fail to adjust their levels as time progresses, missing key changes in price behavior. 2. Failure to Incorporate Time - Explanation: Retail S/R methods typically ignore the role of time, which is a critical element in Gann's work. Gann wrote: "Time is the most important factor in determining market movements." Support may fail not because the level was invalid but because the "time factor" for that level has expired. For example, in Gann’s Time Cycles, support at a certain price might hold only for a specific duration. When that time passes, the level loses its relevance. Retail traders, unaware of such timing principles, are often blindsided when the market breaks their "strong" levels. 3. Lack of Confluence with Angles - Explanation: Gann’s methodologies prioritize the confluence of price and angle relationships. He believed that price moves in harmony with geometric angles, stating: "When price meets time at an angle, a change is imminent." Retail traders fail to consider these angular relationships, focusing only on flat horizontal lines. For example, a 45° angle from a significant low often acts as a true support, but retail traders, relying solely on previous price zones, miss these powerful turning points. 4. Overcrowding and Psychological Herding - Explanation: S/R levels widely used by retail traders often attract a large number of orders at the same price zone, making them predictable and vulnerable to institutional manipulation. Gann noted: "The crowd is often wrong, and the minority drives the market." Institutions exploit this herding by triggering stop-losses just below support or above resistance, creating false breakouts. For instance, Gann’s "Law of Vibration" explains how markets seek equilibrium by disrupting imbalances created by crowd psychology. 5. Ignoring Volume Analysis Explanation: Retail traders rarely integrate volume into their S/R analysis. Gann emphasized the importance of volume, stating: "Price movements must be confirmed by volume to validate strength." Support may appear to hold, but without accompanying volume, the level lacks significance. A practical Gann-based example would involve observing increased volume near a critical angle or price zone, signaling genuine strength or weakness at that level. 6. Using Recent Highs/Lows Without Context - Explanation: Many retail traders base S/R levels on recent highs and lows, assuming these are universally strong zones. Gann criticized such oversimplified approaches, writing: "The past governs the future, but only through proper analysis of cycles and patterns." Without analyzing historical patterns and cycles, these levels are often superficial. For example, Gann's Master Charts reveal that true resistance may lie at a harmonic distance from an earlier historical pivot, not necessarily at the recent high. 7. Misunderstanding False Breakouts - Explanation: Retail traders often misinterpret false breakouts as failures of support or resistance. Gann explained this phenomenon through his price and time squares, stating: "A breakout without harmony is often a trap, designed to mislead the majority." For instance, a false breakout above resistance might align with a Gann angle signaling a reversal, confusing those relying solely on retail S/R levels. 8. Ignoring Market Structure and Trend - Explanation: Retail traders often focus on S/R levels without understanding the broader market structure or trend. Gann believed: "The trend is your friend until time signals the end." Support is more likely to hold in an uptrend, while resistance is stronger in a downtrend. A classic Gann principle involves combining market structure with angular analysis to determine whether S/R levels will hold or break. 9. Failure to Account for Gann's Price Harmonies - Explanation: Gann’s studies reveal that price moves in harmonic relationships, often tied to Fibonacci ratios and geometric principles. Retail traders using arbitrary S/R levels fail to respect these harmonies. For example, Gann's observation of price doubling or halving (e.g., $50 to $100) often defines true support or resistance. 10. Reliance on One-Timeframe Analysis - Explanation: Retail traders frequently analyze S/R on a single timeframe, missing the interplay between multiple timeframes. Gann emphasized multi-timeframe alignment, writing: "The major trend governs the minor trend, and the minor trend refines the major." Support on an hourly chart may fail if it conflicts with resistance on a daily chart. Gann’s multi-timeframe methods ensure alignment, reducing the likelihood of failure. Updated Closing Thought- By understanding the reasons why retail support and resistance often fail and incorporating Gann’s time-tested principles, traders can elevate their skills to a professional level. Gann's focus on time, price, and geometry provides a roadmap to understanding the market with unparalleled precision. This content is invaluable for anyone seeking trading mastery, so don't keep it to yourself! Save this and share it with your friends so they can benefit too. Follow for more absolutely valuable and free trading insights!

Education

by GannAstroTrader

Moving Averages in Action In a past post, we looked at how you can possibly use Bollinger bands within your trading. So, if you haven’t already read it and would like to, please look at our past posts for details. Today, we want to cover moving averages, which is another trending indicator. Trending indicators are important because they allow us to confirm activity currently being seen in price action. This can provide extra confidence in the trending condition of an asset. So, let’s look at simple moving averages. These are used to confirm the current trend of a market. They smooth out price action and can be calculated over various time periods. For example, a simple 5 day moving average is calculated by adding up the previous 5 closing levels for an instrument, and the total is divided by 5. This is recalculated the next day using the latest 5 closing levels and the new total is again divided by 5. The resulting line is plotted on a price chart. As prices move higher, the moving average will move higher following below price activity. As prices decline, the moving average will fall above price. This effectively shows us the 5 day price trend of any instrument. Using this type of calculation means the longer the timeframe, the slower a moving average reacts to price activity, be it up or down. For instance, a 5 day moving average will follow price action more quickly and closely than a 50 day moving average. You can have as many moving averages on a chart as you wish, but be aware, the more you have, the more confusing reading the chart can become. As such, we are going to be looking at examples below, using just 2 simple moving averages, because the relationship between the 2 averages throws up some potentially interesting signals. Combining 2 Moving Averages on a Pepperstone Price Chart: As already said above, if a 5 day simple moving average is rising, it reflects the 5 day trend is up. If we expand on that, we could say, if we are using 2 moving averages, like for example, the 5 and 10 day averages, if both are rising or falling at the same time, it potentially offers a stronger indication of the trending condition of an instrument. Using this combination of 5 and 10 day averages, let’s look at a daily chart of the Germany 40 index on the Pepperstone system. In this chart of the Germany 40 index, with what we already know about moving averages we can say, if both the 5 and 10 day averages are rising, the Germany 40 index is trading within an uptrend. If they are both falling, the price of the Germany 40 index is in a downtrend. As such, simple moving averages can offer a way to assess the trending condition of an asset. However, it doesn’t stop there. Look at the times marked by the chart above, where the rising 5 day average, crosses above the rising 10 day average. These signals are marked by green arrows and can materialise during the early stages of a new upside move. When a cross is seen where both the 5 and 10 day averages are rising, it is called a Golden Cross, which may see further price strength. Now look at this chart. Look at the crosses in the averages where the falling 5 day average crossed below the falling 10 day average, marked by red arrows. These may be seen before the early stages of a new downside move. When a cross is seen where both averages are falling, it’s known as a Dead Cross, which could see price weakness. To Stress, the Averages Must be Moving in the Same Direction When They Cross. If they cross but are moving in opposite directions, this can be a neutral signal and tends to suggest sideways/consolidation activity in price. When this is seen, its important to wait for confirmation of the trend. This would be indicated by price breaking higher for an uptrend or lower for a downtrend, followed by both averages then starting to move in the same direction again. At this point, we should say because of their calculation, moving averages do give lagging signals. In other words, ‘Price has to move to move a moving average’ So, you will see in both the Golden and Dead cross examples on the charts above, they come after either price strength or weakness has already developed. However, while lagging in nature, moving averages give confirmation of a trend. This can highlight the potential of a move in price, in the direction of the moving average cross. Being aware of the Golden and Dead crosses can be useful in highlighting possible trending conditions and when you may want to trade with the trend. This can provide you with more confidence that you could be active within a trending market, although this would depend on future price action. Another Use of a Moving Average is to Highlight a Support and Resistance Level Within a Trend. Let’s take a look at the daily chart of the Germany 40 index, but this time just using the 5 day moving average. Notice, that when a correction is seen and prices sell-off but are still within the uptrend, it’s the rising 5 day average that can mark a support level, marked by the green arrows. This may in turn see upside moves resume to continue the uptrend, with prices possibly breaking the previous high or resistance level to extend the uptrend. Within a downtrend, the opposite is true. A rally within a downtrend may find resistance at the declining 5 day moving average, from which price weakness is resumed to potentially extend the on-going downtrend, marked by the red arrows on the chart above. So, this approach can be used in several ways to assist us when trading. For instance, if we are positive of an instrument, within what may be suggested is an uptrend, but don’t yet have a position, we could view corrections back to the rising 5 day average as a move back to support. Or, if we’re negative, but don’t yet have a position within a downtrend, a rally back to a declining 5 day moving average, may offer an opportunity at a higher level, as it could act as a resistance level, although this is not guaranteed. Stop losses on long positions could also be placed just under a 5 day moving average, while stop losses on short positions could be placed just above a 5 day moving average. As moving average breaks may see a more extended move in the direction of that break. This may provide protection against possible adverse price movement. A big advantage of this method of stop placement, is the stop loss moves or trails behind a rising average in an uptrend, or a declining average within a downtrend. This means when long in an uptrend, the stop follows prices higher. Or if short in a downtrend, the stop loss follows prices lower. Observing Moving Averages in Real Time: The Germany 40 index is likely to be in focus today with the ECB Interest rate decision released at 1315 GMT and then the ECB Press conference starting at 1345. Market expectations are for the ECB to cut rates by 25bps (0.25%), so anything else is likely to be a big surprise. However, could they cut by 50bps (0.5%) to try and give a major boost to the Eurozone economy? After the announcement of the rate decision, Madame Lagarde’s comments in the press conference will also be important for the direction of the Germany 40. Will she confirm more interest rate cuts are a real possibility during the first quarter of 2025, or will she be more guarded, emphasising concerns about a potential resurgence of inflation? Whatever the outcome of these events, the Germany 40 may be more volatile than usual, so you can observe how these moving averages perform in real time. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

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Set-and-Forget Trading: A Path to Consistency and Freedom Forex trading often feels like a full-time job, demanding constant attention and endless decision-making. However, the set-and-forget trading strategy offers a structured and stress-free alternative, allowing you to trade confidently while enjoying the freedom to focus on other aspects of life. Here, we’ll refine the essence of this strategy and show how it can lead to consistent, profitable results. What Is Set-and-Forget Trading? Set-and-forget trading is a disciplined approach where you analyze the market, identify key levels, place your trades with defined parameters, and step away. This method prevents over-trading, minimizes emotional interference, and fosters a calm, calculated mindset. This strategy is especially appealing for traders balancing other responsibilities, offering the dual benefit of effective trading and time efficiency. Mastering Key Market Levels At the core of set-and-forget trading lies the identification of significant price levels, such as support, resistance, and trendlines. These levels act as your map for setting entries, stop-losses, and profit targets. The precision of your analysis at this stage determines the success of your strategy. Key levels are not random—they are where the market historically reacts, making them the most probable zones for price movement. Avoiding Common Pitfalls: While set-and-forget is a powerful approach, it’s not without its challenges. Overanalyzing after placing your trades can lead to unnecessary adjustments, which defeats the purpose of this strategy. Similarly, setting unrealistic expectations can lead to frustration—accept that no strategy is perfect, and focus on long-term profitability. Finally, proper risk management is non-negotiable . Always adhere to your predefined stop-loss and position-sizing rules to protect your capital. Placing Trades With Confidence Once you’ve identified the key levels, craft a clear plan for each trade. Define your entry point, stop-loss, and take-profit levels. Limit orders are the cornerstone of this strategy, ensuring your trades are executed precisely at your chosen levels, even when you’re not actively watching the market. This planning requires discipline but reduces the risk of hasty, emotionally charged decisions. The Art of Letting Go Perhaps the most challenging part of set-and-forget trading is stepping away from the charts after placing your trades. However, this step is crucial for maintaining discipline and avoiding impulsive changes to your strategy. Trust your analysis and let the market unfold naturally. By walking away, you also protect yourself from overanalyzing minor fluctuations, which can lead to emotional and costly adjustments. Why This Approach Works The power of set-and-forget lies in its simplicity and alignment with key trading principles: Emotional Discipline: By predefining trades, you avoid the temptation to deviate from your plan. Time Efficiency: Spend less time glued to the screen and more time pursuing other goals. Consistency: Trading from key levels with a clear plan fosters long-term profitability. Handling Challenges With Grace Even with set-and-forget, it’s vital to remain realistic. Not every trade will be a winner, and patience is required. Proper risk management, such as adhering to your stop-loss and avoiding excessive position sizes, ensures that even losses are manageable. Another benefit of this approach is that when trades at key levels don’t hit their targets, price often rebounds or retraces, providing opportunities to minimize losses or exit at breakeven. Final Thoughts Set-and-forget trading is a mindset as much as it is a method. It requires patience, discipline, and trust in your strategy. By focusing on key levels, pre-planning trades, and letting the market work for you, you gain not just trading profits but also mental clarity and freedom. If you’re ready to simplify your trading and embrace consistency, set-and-forget could be the transformative strategy you’ve been seeking.

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Gold Accumulation phase THE STORY OF THE DOJI: A large institutional player attempted to orchestrate a stop hunt, creating a false sense of market direction to trigger stops and ignite a sell-off. However, the subsequent price action revealed their hand. The Doji candle at the support level indicated a loss of conviction among sellers, while the slow distribution and step-like pattern suggested a more deliberate and calculated market behavior. The bullish candle that formed at the support level, particularly after the attempted stop hunt, implies that the market is rejecting the lower prices and that buyers are absorbing the selling pressure. This price action suggests that the institutional player's attempt to short the market may have been unsuccessful, and that the market may be poised for a reversal or a continuation of the uptrend. All based on my observational bias

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Bid and Ask Explained Do you know what Bid or Ask means? If you’re a trader, you should keep reading if these terms sound unfamiliar to you, or you are unsure. After all, they are the terms used to explain the buying and selling process within markets. Let’s get started! When you look at a tradable financial market, you'll notice two prices listed: the bid and the ask. Here's a quick guide to help you understand these core concepts: 1. Bid : the price at which you can sell (this is the price where someone is “bidding” to buy it at). 2. Ask : the price at which you can buy (this is the price where someone is “asking” to sell it at). The bid price is always lower than the ask price. This is just Business 101, as buyers are trying to get a better deal than sellers. So, they bid lower than the ask. What is Spread? The spread is the difference between the bid and the ask prices. It's essential for calculating your potential profit or loss from a trade. Example : If EUR/USD is trading at 1.1259, the bid might be 1.1257 and the ask 1.1260. To buy EUR/USD, you would enter at 1.1260. For any profit, the bid price must rise above 1.1261. If EUR/USD moves up two pips to 1.1261 but the bid remains at 1.1259, you would break even. Understanding these basics can help you make more informed trading decisions. Happy trading! Did you learn something new? Our team of researchers and market specialists will be sharing more educational content so be sure to follow our TradingView account for instant updates. Also, be sure to check out our latest ideas here . - FOREX.com Team

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This is Wyckoff VSA Pro V1 with a short set up based on Volume In this short video, Author of "Trading in the Shadow of the Smart Money", Gavin Holmes, demonstrates the new Wyckoff VSA Pro V1 for TradingView. This high probability, low risk set up is based on two principles. A volume spike in an upmove called professional sellingf followed by a change in trend to the downside and then a confirmation indicator called No Demand. The result speaks for itself. Got questions you can email Gavin directly at tradeguider@outlook.com Good trading, The TradeToWin team.

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07:44

Trading is a scam !?When someone says trading is a scam, what they’re often admitting is: “I tried trading, lost money, and gave up.” The truth is, trading isn’t a scam. It’s a skill—and like any skill, it takes dedication to master. Success in trading demands: 📈 Deep market knowledge to understand trends and strategies. 🧠 Iron-clad psychology to handle losses and control emotions. ⏳ Endless patience to wait for the right opportunities. ⚖️ Proper risk management to protect your capital. The question is: Are you willing to put in the work?

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by AlphaBull-Trading

How Short Sales Indicate Buying Activity A Beginner-Friendly Guide to How Short Sales Indicate Buying Activity █ What is a Short Sale? A short sale is when someone sells a stock they don't actually own, usually because they believe the price will drop. They borrow the stock, sell it at the current price, and hope to buy it back later at a lower price to return to the lender. However, not all short sales are for speculation! In fact, about half of all trades in the market are short sales, which seems strange unless we look deeper. QUICK SUMMARY 🧐 What is a Short Sale? A short sale is when someone sells a stock they don't own, hoping to buy it back later at a lower price. Normally, people think short sales mean traders are betting that the stock will go down. But there's more to the story! 💡 Why Are Short Sales Important for Understanding Buying? About half of all trades in the market are short sales! This means there's something deeper going on. Market-makers (people who help match buyers and sellers) play a big role here. 👥 What Do Market-Makers Do? They offer to sell a stock at a slightly higher price and buy at a slightly lower price. When someone buys a stock from a market-maker, the market-maker short-sells the stock (because they don't own it yet). ✅ This means: When you see a short sale, it's often because someone is buying from a market-maker. Therefore, short volume (total short sales) is a good indicator of buying activity! █ Why Short Sales Reflect Buying Activity Market-makers (MMs) play a crucial role in ensuring there are always buyers and sellers available in the market. Here's how they do it: ⚪ Market-Maker Role: MMs quote both a buy price (bid) and a sell price (offer) for stocks. For example, they may offer to: Buy at $19.95 (bid) Sell at $20.00 (offer) ⚪ Short Sales in Practice: When an MM offers to sell at $20.00, they often don't own the stock; they are "shorting" it to facilitate the sale. This means: If an investor buys the stock at $20.00, the MM's sale is reported as a short sale. If an investor sells the stock to the MM at $19.95, it is reported as a regular (long) sale. Therefore: Short sales = Investors buying the stock Long sales = Investors selling the stock █ Why This Matters Since MMs are involved in most trades, short sales can be used as an indicator of buying activity. The more short sales there are, the more buying activity is happening in the market. ⚪ Dark Pools and Short Sales Data Dark pools are private trading venues where large investors can trade without showing their orders publicly. These venues still have MMs who facilitate trades. Even though trades happen "in the dark," the MM behavior (shorting to sell) still applies. FINRA collects and publishes data on short sales in dark pools. This data can help us see the relationship between short sales and stock price movements. ⚪ Testing the Idea When researchers tested this idea, they found: Higher Short Volume = Higher Stock Prices: On days when short sales were above 50% of the total volume, the average stock price increased during the day. When short sales were below 50%, the average stock price decreased. The Trend is Clear: When short sales make up a significant part of the market activity, it indicates strong buying interest. █ The Findings When short volume is high (above 35%), stocks tend to go up during the day. When short volume is low (below 35%), stocks are more likely to go down. Example: If short volume = 50% → Expect higher buying activity and potential stock gains. If short volume = 20% → Expect lower buying activity and potential stock declines. 🚀 Practical Tips for Traders Investors can use short sale data from dark pools to: Identify potential buying opportunities. Understand market sentiment (whether people are more likely to buy or sell). Anticipate short-term stock price movements based on the level of short sales. Watch short volume data: High short volume can signal strong buying interest. Use FINRA data: You can find free short sale data on FINRA's website to track these trends. Be curious: This data isn't widely used yet, so understanding it can give you an edge! █ Summary ⚪ Short sales are often a sign that investors are buying stocks. ⚪ Dark pool data offers valuable insights into market trends. ⚪ Monitoring short sale volume can help predict intraday stock gains and understand market behavior. ----------------- Disclaimer This is an educational study for entertainment purposes only. The information in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell securities. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on evaluating their financial circumstances, investment objectives, risk tolerance, and liquidity needs. My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!

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What Is Quantitative Tightening and How Does It Work?What Is Quantitative Tightening and How Does It Work in Financial Markets? Quantitative tightening (QT) is a critical tool central banks use to control inflation by reducing the money supply. In this article, we’ll break down how QT works, its impact on financial markets, and how it influences the broader economy. Read on to learn more about the effects of QT and how it shapes markets. What Is Quantitative Tightening? Quantitative tightening (QT) is a type of tightening monetary policy that central banks use to reduce the amount of money circulating in the economy. When central banks like the USA’s Federal Reserve or European Central Bank engage in QT, they aim to tighten liquidity by reducing their balance sheets, typically by allowing bonds or other financial assets to mature without reinvestment or selling them outright. QT is a practice often used alongside hiking central bank interest rates, though not always. The main goal of QT is to manage inflation by increasing borrowing costs and reducing demand for goods and services. By letting bonds mature or selling them, central banks effectively pull money out of circulation. This leads to fewer funds available for lending, which raises interest rates. Higher rates make borrowing more expensive, encouraging businesses and consumers to cut back on spending, which can help cool down inflation. An example of this mechanism in action is the Fed’s QT program that began in 2022 to tackle high inflation by reducing the size of its balance sheet after years of quantitative easing. QT is essentially the opposite of quantitative easing (QE), which is aimed at stimulating economic growth. What Is Quantitative Easing? QT and QE are both used to correct the economy’s course. However, while QT refers to the tightening of monetary policy, QE loosens it. During QE, central banks buy large quantities of government bonds and other assets to inject liquidity into the economy. This increases the money supply, lowers interest rates, and is intended to stimulate economic activity, particularly during downturns or recessions. QE was used extensively following the 2008 financial crisis and during the COVID-19 pandemic as a way to support economic recovery. How Does Quantitative Tightening Work? Quantitative tightening works by pulling liquidity out of the financial system, reducing the amount of money available for borrowing and investment. Central banks use a couple of specific methods to achieve this, which have a ripple effect on markets and the broader economy. 1. Reducing Asset Holdings One of the most common ways central banks implement QT is by allowing bonds and other financial assets on their balance sheets to mature without reinvesting the proceeds. For example, the Federal Reserve might hold trillions in government bonds. When those bonds mature, instead of using the proceeds to buy new bonds, the Fed simply lets the money flow out of circulation. This reduces the central bank’s balance sheet and shrinks the money supply, contributing to higher borrowing costs. 2. Selling Bonds Another method central banks use is the outright sale of government bonds or other securities. By selling assets, central banks increase the supply of bonds in the market. This can push bond prices down and drive yields higher, which makes borrowing more expensive for companies, governments, and individuals alike. Rising bond yields often lead to higher interest rates across the board, from mortgages to business loans—when there’s less money available for lending, banks raise the rates they charge for loans. Effects of Quantitative Tightening on the Broader Economy Quantitative tightening has significant ripple effects across the broader economy. As central banks reduce liquidity, it impacts everything from borrowing costs to consumer spending and business investment. 1. Higher Borrowing Costs One of the most immediate effects of QT is the rise in interest rates. As central banks shrink their balance sheets, bond prices fall, pushing yields higher. This, in turn, raises the cost of borrowing for businesses and consumers. There may also be interest rate hikes alongside QT, further tightening lending conditions. Mortgages, personal loans, and corporate debt all become more expensive, discouraging borrowing. For businesses, higher financing costs can limit expansion plans, reducing investment in growth or innovation. Households, meanwhile, face elevated mortgage rates, leading to reduced demand in housing markets and potentially lower home prices. 2. Reduced Consumer Spending As the cost of borrowing rises, consumers have less disposable income. Higher interest rates on loans and credit cards mean households spend more on servicing debt and less on goods and services. This can slow down retail sales and reduce overall consumer demand, which is a critical driver of economic growth. Lower consumer spending typically affects sectors like retail, real estate, and manufacturing, which depend on a high volume of transactions. 3. Slower Business Growth QT also impacts businesses by making it more expensive to access credit. Companies that rely on borrowing to finance operations, new projects, or expansions find it harder to justify taking on debt. With higher interest payments eating into profits, many businesses may delay or scale back investment plans. In addition, small and medium-sized enterprises (SMEs) that depend on bank loans for cash flow are often the hardest hit. 4. Inflation Control While QT can slow economic activity, its primary goal is to rein in inflation. By reducing the money supply and making credit more expensive, it cools down demand. Lower consumer and business spending can reduce price pressures, helping to stabilise inflation. This was a key objective when the Federal Reserve resumed QT in 2022 to counter post-pandemic inflation. 5. Potential Economic Slowdown However, if QT is too aggressive, it risks triggering an economic slowdown or even a recession. Tightening financial conditions leads to reduced economic growth, as seen in 2018 when markets reacted negatively to the Federal Reserve’s balance sheet reductions. How Does Quantitative Tightening Affect Financial Markets? Quantitative tightening can have significant effects across different financial markets. By reducing liquidity, it influences the behaviour of key assets, from bonds to equities, and can reshape market conditions in profound ways. 1. Bond Market QT often leads to higher bond yields. When central banks like the Federal Reserve reduce their bond holdings or stop reinvesting in new ones, the supply of bonds in the market increases. As bond prices drop, yields rise to attract new buyers. This rise in yields means governments and corporations face higher borrowing costs. For instance, during the Federal Reserve’s quantitative tightening efforts in 2018, US Treasury yields rose significantly as more bonds became available in the market. 2. Stock Market Equity markets often react negatively to QT. As liquidity tightens, the cost of borrowing rises for businesses, which can squeeze corporate profits and reduce their ability to invest or expand. Investors also tend to move away from riskier assets like stocks when bonds offer higher yields, as bonds become more attractive for their safety and improved returns. In 2018, US stocks experienced heightened volatility when the Fed’s quantitative tightening efforts combined with rate hikes led to market corrections. 3. Foreign Exchange Market QT can also impact currency values. As central banks tighten monetary conditions and raise interest rates, their currencies often strengthen relative to others. This is because higher yields and interest rates attract foreign investment, increasing demand for the currency. For example, when the Fed began QT in 2022, the US dollar strengthened as investors sought better returns on US assets like Treasury bonds. See how the US dollar strengthening occurred for yourself in FXOpen’s free TickTrader trading platform. 4. Credit Market QT reduces the availability of credit as banks and financial institutions face higher borrowing costs themselves. As liquidity is drained from the system, lenders tighten their credit conditions, making loans more expensive and harder to get. This can slow economic growth as businesses and consumers find it more costly to finance investments or purchases. In effect, QT creates a tighter financial environment by reducing liquidity, pushing up borrowing costs, and shifting investor behaviour across various markets. Each asset class feels the impact in different ways, but the overall effect is a more cautious, less liquid financial system. The Bottom Line Quantitative tightening is a powerful tool central banks use to manage inflation by reducing liquidity and increasing interest rates. While it helps control rising prices, QT can impact borrowing costs, investment, and market stability. Understanding how these mechanisms work is crucial for informed trading. Ready to take advantage of different market conditions? Open an FXOpen account today and start navigating more than 700 financial markets with low-cost, high-speed trading conditions, and four advanced trading platforms. FAQ What Is Quantitative Tightening? The quantitative tightening definition refers to a monetary policy used by central banks to reduce liquidity in the economy. This involves decreasing the central bank’s balance sheet by selling bonds or allowing them to mature without reinvestment. QT is typically aimed at curbing inflation by raising borrowing costs and slowing economic activity. How Does Quantitative Tightening Work? QT works by reducing the supply of money in the financial system. Central banks achieve this by selling government bonds or letting them mature. As the bonds leave the market, interest rates rise, making borrowing more expensive for businesses and consumers. How Does Quantitative Tightening Affect the Stock Market? QT can negatively impact stock markets. As interest rates rise and liquidity tightens, borrowing costs for companies increase, which can hurt corporate profits. Investors may shift towards so-called safer assets like bonds, reducing demand for stocks and contributing to market volatility. What Is the Difference Between QT and QE? Quantitative easing (QE) increases the money supply by buying bonds, while quantitative tightening (QT) reduces liquidity by selling bonds or letting them mature. The main difference between quantitative easing vs tightening is that QE stimulates economic growth, while QT aims to control inflation. What Does It Mean When the Fed Is Tightening? When the Federal Reserve tightens, it implements policies to reduce money supply and raise interest rates. This helps control inflation by making borrowing more expensive and slowing economic activity. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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Learn Best Price Action Patterns For Trend-Following Trading In this educational articles, I will teach you the best price action patterns for Trend-Following Trading Forex. 📍Ascending & Descending Triangles The ascending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish. The pattern consist of 2 main elements: a horizontal neckline based on the equal highs, a rising trend line based on the higher lows. ❗️The trigger is a bullish breakout of a neckline of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying at least below the level of the last higher low. 🎯Take profit is the next historical resistance. Look at an ascending triangle formation on EURUSD on an hourly time frame. On the left, you can see the structure of the pattern and on the right, the trading plan. 📍The descending triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish. The pattern consist of 2 main elements: a horizontal neckline based on the equal lows, a falling trend line based on the lower highs. ❗️The trigger is a bearish breakout of a neckline of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying at least above the level of the last lower high. 🎯Take profit is the next historical support. Above is a perfect descending triangle pattern that I spotted on GBPUSD on a 4H time frame. 📍Bullish & Bearish Wedges The bullish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside. The pattern consist of 2 contracting falling trend lines based on the lower lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying below the low of the pattern. 🎯Take profit is the high of the pattern. Above is a falling wedge pattern that I found on GBPUSD. The pattern is formed after a strong bullish impulse. A trigger to buy is a bullish breakout of its resistance. —————— The bearish wedge pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside. The pattern consist of 2 contracting rising trend lines based on the higher highs and higher lows. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying above the high of the pattern. 🎯Take profit is the low of the pattern. To correctly sell this rising wedge pattern on EURUSD, we should wait for a breakout of its horizontal support and then sell the market on its retest. 📍Bullish & Bearish Flags The bullish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish and the pattern is directed to the downside. The pattern consist of 2 parallel falling trend lines based on the lower lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying below the low of the pattern. 🎯Take profit is the high of the pattern. Above, you can see a perfect example of a bullish flag pattern on EURUSD on a 4H time frame and its trading strategy. —————— The bearish flag pattern will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish and the pattern is directed to the upside. The pattern consist of 2 parallel rising trend lines based on the higher highs and higher lows. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying above the high of the pattern. 🎯Take profit is the low of the pattern. Above is a bearish flag pattern on GBPUSD and a full plan to sell the market based on it. 📍Bullish & Bearish Symmetrical Triangles The bullish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bullish. The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs. ❗️The trigger is a bullish breakout of a resistance of the pattern and candle close above. 📈The position is opened on a retest. 🔴Stop loss is lying at least below the last higher low of the pattern. 🎯Take profit is the high of the pattern. This bullish symmetrical triangle on EURUSD on an hourly time frame is a perfect example of a bullish trend-following pattern. —————— The bearish symmetrical triangle will be considered to be a trend-following pattern if the impulse leg preceding the formation of the pattern is bearish. The pattern consist of 2 contracting symmetrical trend lines based on the higher lows and lower highs. ❗️The trigger is a bearish breakout of a support of the pattern and candle close below. 📉The position is opened on a retest. 🔴Stop loss is lying at least above the last lower high of the pattern. 🎯Take profit is the low of the pattern. On the left chart, you can see a structure of a valid symmetrical triangle. On the right chart, you can see how to trade it properly. The main difficulty related to trading these patterns is their recognition. You should train your eyes to recognize them on a price chart. Once you learn to do that, I guarantee you that you will make tons of money trading them.

Education

by VasilyTrader

Proffesional traders ONLY use limit orders. Here is why In the world of trading, precision, patience, and discipline set successful traders apart. One of the most powerful tools professional traders use to maintain this edge is the buy and sell limit order. These orders allow you to execute trades at predefined price levels, ensuring strategic and calculated decisions. Here’s why buy and sell limit orders are a cornerstone of professional trading—and why they should be part of your strategy. 1. Trade Only at Key Market Points Limit orders enable you to focus on trading at strategic price levels, such as areas of strong support or resistance. These key market points are where the highest probability setups occur, giving you a distinct advantage over chasing prices or trading impulsively. Why This Matters: High-probability trades: Entering at key levels increases the chances of success, as these zones often align with institutional activity and large orders. Better pricing: Waiting for the price to come to you ensures an optimal entry, increasing the quality of your trades. For example, instead of buying as the price skyrockets, a professional trader sets a buy limit order at a pullback to a support level, ensuring they enter at a lower price with less risk. 2. If a Trade Is Not There, It’s Not There Limit orders enforce discipline by ensuring you only trade when market conditions align with your plan. This approach prevents you from forcing trades in suboptimal conditions, a common mistake among less experienced traders. How This Helps: Avoid over-trading: Limit orders eliminate impulsive decisions and help you stick to your strategy. Stay disciplined: You’ll only take trades that meet your criteria, ensuring consistency in your approach. By accepting that “if a trade is not there, it’s not there,” you avoid unnecessary losses and save capital for high-quality setups. 3. Positive Risk-Reward Ratio Becomes Easier Trading from key levels using limit orders naturally leads to favorable risk-reward ratios. By entering at strategic points, you can minimize your risk while maximizing your potential reward. Why Limit Orders Are Ideal for Risk-Reward: Tighter stop-loss placement: Key levels provide logical areas for stops, reducing the distance between your entry and stop-loss. Larger profit potential: Trading near support or resistance increases the likelihood of significant price movements in your favor. For instance, placing a sell limit order at a resistance level allows you to set a stop-loss just above the level while targeting a support zone below, often achieving a risk-reward ratio of 1:3 or higher. 4. Avoiding False Breakouts One of the biggest drawbacks of trading breakouts is the prevalence of false breakouts, where the price moves briefly beyond a key level, triggers trades, and then reverses sharply. Limit orders help you sidestep this trap. Why Limit Orders Are Better Than Breakout Trading: False breakout protection: Limit orders wait for the price to return to a key level, avoiding impulsive entries. Stronger validation: Entering at key levels ensures you are aligning with institutional activity rather than being caught in speculative moves. Improved money management: Breakout trades often require wider stops, reducing efficiency, while limit orders allow for tighter, more strategic risk management. By using limit orders, you position yourself to benefit from price reversals instead of getting caught in false moves. 5. Trade Without Constant Monitoring One of the most practical benefits of limit orders is that they free you from having to watch the charts 24/5. Once you’ve done your analysis and identified key levels, you can set your limit orders and step away. Benefits of Limit Orders for Time Management: Reduced stress: No need to monitor every tick of the market; your orders are automatically executed when the price reaches your level. Efficient use of time: You can focus on other tasks, projects, or simply enjoy your day while the market works for you. Confidence in your plan: Trusting your analysis and pre-set limit orders reduces emotional strain, allowing you to trade with peace of mind. This approach not only improves your time management but also enhances your overall trading performance by minimizing emotional decision-making. 6. Opportunity for Exit on B.E. or with Minimal Loss When trading from key zones such as support or resistance, even if your target isn't reached and the market reverses and breaks the level, there’s often a rebound (in the case of support) or a retracement (at resistance). This price action typically gives you time to reassess the situation and close the trade at break-even or with a minimal loss. Benefits of This Feature: Reduced Losses: Limit orders placed at key zones give you a second chance to minimize risk if the market doesn’t go your way. Improved Decision-Making: The retracement/rebound period allows you to evaluate the market's behavior calmly rather than reacting impulsively. Enhanced Flexibility: You gain the opportunity to adjust your strategy in response to evolving price action. This adds another layer of control and protection to your trades, reinforcing why limit orders are a powerful tool for professional traders. 7. The Best Way to Trade with Discipline and Control Limit orders are the ultimate tool for maintaining discipline and control in your trading. By setting your orders in advance, you remove the emotional biases and impulsive behaviors that often lead to losses. Why Limit Orders Promote Discipline: Structured approach: They force you to pre-plan your trades, ensuring every decision aligns with your strategy. Eliminate over-trading: By setting specific entry points, you focus only on the best opportunities. Consistent execution: Limit orders ensure you enter trades based on logic and analysis, not gut feelings. Conclusion: The Professional’s Tool for Success Buy and sell limit orders are more than just a trading tool—they are a mindset. They embody the patience, discipline, and precision that define professional trading. By focusing on key levels, avoiding false breakouts, and trading with a positive risk-reward ratio, limit orders help traders achieve consistent and profitable results. To recap, here’s why professional traders rely on limit orders: - They ensure trades occur only at key market points. - They prevent impulsive and undisciplined trading. - They naturally enhance your risk-reward ratio. - They protect you from the traps of false breakouts and poor money management. - They free up your time and reduce stress by removing the need for constant market monitoring. If you’re serious about improving your trading, start incorporating buy and sell limit orders into your strategy today. They’re not just a tool—they’re the foundation of a professional, disciplined approach to the markets.

Education

BIGGEST ALTCOIN RECAP FOR 2024 We give glory to God Almighty for the gift of life and good health. As the year 2024 draws to a close, it's the perfect time to prepare our altcoin recap and reflect on the progress we've made. A big shoutout to TradingView for providing this incredible platform that empowers traders to learn, share, and grow together. Thank you, TradingView, for all you do! This post is dedicated to reviewing and revisiting all the altcoin requests submitted throughout the year, from January to December. The goal is to ensure clarity and provide updated insights as we wrap up the year and prepare for BIGGEST ALT SEASON 2025. Links to the analyses can be found here: December: November: October: September: August: July: June: May: April: March: February: January: Here’s how it works: Visit any of my previous posts and locate the analysis of the altcoin you’re interested in. Copy the link to that analysis and paste it here in the comments, along with your specific question or request. Your questions can include: Requesting an update to the existing analysis. Asking for a fresh analysis from scratch. Let’s dive in and collaboratively complete our final recap of 2024 altcoin analyses. This is a chance to refine strategies and prepare for the opportunities ahead. Share your requests, and let’s get to work!

Education

Understanding Wyckoff Reaccumulation: A Comprehensive Guide ## Introduction to Wyckoff Theory Richard Wyckoff developed his methodology in the early 20th century, creating a systematic approach to market analysis that remains relevant today. His method is based on the principle that market movements are primarily driven by large institutional investors, whom he called "composite operators." ## The Concept of Reaccumulation Reaccumulation is a sideways price pattern that occurs during an ongoing uptrend. Unlike basic accumulation, which occurs at market bottoms, reaccumulation represents a pause in an existing upward trend where institutional investors reload their positions before continuing higher. ### Key Characteristics of Reaccumulation 1. **Prior Uptrend**: Reaccumulation always follows a significant price advance 2. **Trading Range**: Price enters a sideways consolidation period 3. **Volume Analysis**: Typically shows declining volume during the range 4. **Price Structure**: Forms a series of higher lows and lower highs within the range ## Phases of Reaccumulation ### Phase A - Preliminary Support (PS) - Marks the initial support level where the uptrend first pauses - Often accompanied by increased volume - Creates the trading range's support level ### Phase B - Secondary Test (ST) - Price tests the trading range's support - Usually shows decreasing volume - May form several tests of support with springs or upthrusts ### Phase C - Last Point of Support (LPS) - Final test of support before markup - Often shows diminishing volume - Can include a spring below support ### Phase D - Sign of Strength (SOS) - Strong price move up on increased volume - Breaks above local resistance levels - Confirms the reaccumulation structure ### Phase E - Last Point of Supply (LPSY) - Final pullback before sustained markup - Generally shows lower volume than SOS - Creates higher low compared to LPS ## Identifying Reaccumulation vs. Distribution Understanding whether a trading range is reaccumulation or distribution is crucial for traders. Key differences include: ### Reaccumulation Characteristics: - Forms after an uptrend - Shows stronger support than resistance - Springs more common than upthrusts - Volume increases on upward price moves ### Distribution Characteristics: - Forms after an uptrend - Shows stronger resistance than support - Upthrusts more common than springs - Volume increases on downward price moves ## Volume Analysis in Reaccumulation Volume plays a crucial role in confirming reaccumulation patterns: - Decreasing volume during consolidation - Higher volume on tests of support - Strongest volume on breakouts above resistance - Low volume on pullbacks after breakout ## Trading Reaccumulation Patterns ### Entry Strategies: 1. **Spring Entry**: Enter after a spring below support with volume confirmation 2. **SOS Entry**: Enter on the break above resistance with increasing volume 3. **LPSY Entry**: Enter on the last pullback before markup ### Stop Loss Placement: - Below the spring low - Below the last point of support - Below the trading range support ### Target Setting: - Measure the height of the trading range - Project this distance from the breakout point - Consider previous resistance levels ## Case Study Analysis Examining the provided chart, we can identify several key Wyckoff elements: - Initial trading range establishment after uptrend - Multiple tests of support with declining volume - Formation of higher lows within the range - Strong volume on breakout moves - Successful continuation of the uptrend ## Common Mistakes to Avoid 1. Misidentifying the larger trend context 2. Ignoring volume confirmation 3. Taking premature positions before pattern completion 4. Missing important support/resistance levels 5. Failing to consider market context ## Conclusion Wyckoff reaccumulation patterns provide valuable insights into institutional behavior during uptrends. By understanding these patterns, traders can better position themselves to profit from continuation moves while managing risk effectively. Remember that successful trading requires patience, practice, and proper integration of multiple technical analysis tools alongside Wyckoff methodology. Remember: All technical analysis methods, including Wyckoff theory, should be used as part of a comprehensive trading strategy that includes proper risk management and consideration of multiple timeframes and market contexts.

Education

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