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Everything you need to know about order block 5 RULES | TUTORIALToday we're going to talk about orderblocks. Very simply, an orderblock is the support and resistance of big players. It is stronger and more important than what you draw on a chart expecting a price reaction by classical technical analysis. This works absolutely everywhere in cryptocurrency, forex, and the stock market. I have deduced for myself 5 rules of confirmation, and now we will go over each of them. Let's start with schemes and end with an example on a chart. Orderblock is a candlestick that shows purchases or sales of large capital. When a bullish orderblock is formed, an accumulation or reaccumulation takes place in order to further markup the asset. When a bearish orderblock is formed, a short position is accumulated or reaccumulated. With the purpose of further asset markdown. The first rule is liquidity. We have a zone from which the price gets a reaction and goes in the opposite direction. This forms a support zone for those who trade classic technical analysis. Traders place their orders in this zone, which is what the big capital hunts for. Accordingly, this level is pierced by the flow of orders, which activates these stops. This is how liquidity is removed from the area. The last bearish full-body candle will be our orderblock. It is important that it updates past lows. An analogy would be the wicks of candle, which removes liquidity from past lows. The wick of a candle in this case is an orderblock on a lower TF. The second rule is confirmation After withdrawal of liquidity we expect confirmation of this orderblock - that is absorption and movement in the opposite direction. The confirmation should be impulsive. That is, we should not see how the price is stuck in this confirmation. It concerns the absorption (updating) of the order block. It is possible inside the candle (orderblock). But personally, I try to take the "book variant". Local consolidations can indicate the weakness of the movement. It doesn't mean that the orderblock will not work out in the end, but the probability decreases. The third rule is structure breaking (bos) One of the key points is the breakdown of structure that this orderblock provides. This is how we can understand the mood of the market and the intentions of big capital. In this example, we can highlight the main structure with the yellow line. It is after updating a significant structural element that we can be almost sure of the truth of our orderblock. If we don't see a break in structure, then this movement may just be a correction within a downtrend. So keep an eye on this one. The fourth rule is the law of force (momentum) After confirming our orderblock, we can see a prolonged correction in the OTE (make a Fibo). That is, we should see an impulse and after it a slow sluggish movement downwards, which will also form liquidity behind each local high. This is not a necessary factor, but if it is present, the probability of a trend reversal will increase many times over. The fifth rule - the volume and spread of candles The candlesticks should be full-bodied with increased volumes. It will be important to monitor the "distance" that the price has done. All these factors will also indicate the veracity of the movement. This recommendation concerns more about swing trading, moments when the price is in a trend for a long time without a serious correction and test of the formed order block. Examples on the chart On the daily TF I marked a Sell to Buy move. I marked it this way because there were no warrant blocks to satisfy me on the higher timeframe. This area will act as a zone of interest. The structure on the Hourly TF looks like this. Consequently, we expect a confirmation of our orderblock through a break of the structure. The price entered the sell to buy zone and tested the order block, which was formed from the wick of the candle. We saw an impulse exit and watch the price go up sluggishly, forming liquidity behind each low. Therefore, we expect an orderblock test. I recommend backtesting on chart history to better understand how order block works. Thank you for your attention, I hope it was useful
Education
by Patronofbargain
5
Game Of LiquidityHello traders -Today we will talk about liquidity and its role. What is liquidity? -We will try to explain you as simple as possible what liquidity is and what you should be looking for when you want to spot it. -There is a theory on the FX markets that the Big institutions (Smart money) are always trying to trap us and take our Stop losses. -Retail education as we all know is based on patterns (double top,double bottom, trendlines, supp res zones etc... -As new traders come fresh on the markets they can be easily manipulated and taken away from their money because they are 'easy pray for big boys. -If you want to understand liquidity as simple as possible - when there is a trend line, double top pattern, there are retail stop losses and there is liquidity to be taken. Example: 1) In this example, we see that the price is moving in a downtrend 2) Then the price slows down with momentum and starts to make a lot of liquidity. 3) We can see liquidity in the form of a trendline, double tops, etc. 4) A lot of retail traders lose their money here, while we patiently wait for our opportunity. 5) Our entry is at the strong supply zone, and the price reaches it when it picks up all SL of retail traders. 6) At the end, we see a liquidity sweep that mostly happens in one move, and here we open our position. -Remember: This is the cat and mouse game. In order for one person to win someone else needs to take the loss. So our question is Are you a cat or a mouse? -If this post helped you better understand the concept of liquidity, leave a like. If you have any questions, write below in the comments.
Education
by hybridtradingfx
1
Where and when are our setups more probable?Setup probability drastically increases when we sell in premium (above 50% of a marked range) and buy in discount (below 50% of a marked range) . You are made to believe that 0.38 fib is magical and mesmerising since it repeats everywhere in nature and in human interactions but It's exactly where stop hunts actually occur. We want to engage from a different angle and follow the logic of price action. Institutions engage in a different way. If they want to achieve a higher high or a lower low that's going to happen from a premium or a discount almost all the time. Go see your desired chart and recognise the pattern and you will grasp a very important element of how price action really works
FX:NAS100Education
by PabloSMC
HOW-TO Add Precision To Entries & Exits With AutoUFOs (patented)HOW-TO Add Precision To Entries & Exits With AutoUFOs (patented) What does this invite-only script do? This app aims to plot Price regions in a chart where potential BUY and/or SELL Orders are in a pending state. Those potential Orders are expected to be in waiting mode and could be executed once that market revisits or returns to those Price regions. The above concept is the reason for the name of this indicator: Un-Filled Orders (UFOs). Once those potential Un-Filled Orders are filled, a bounce or movement is likely to happen and therefore those UFO areas could be selected for Entries and/or Exits for any type of trade or investment. This may include but is not limited to long-term, intermediate-term, short-term or hedging. The desired trade duration (position, swing or intraday trades) would depend on the time interval (time frame) selected when applying the indicator. For example; by applying the indicator to a chart selected with a daily time interval this is likely to produce trades that could potentially last multiple days or applying it using a 60 minute time interval would likely produce trades that could last a few hours and so on. Note: Those Price regions identified are referred to as UFOs and are automatically plotted in the form of oval shapes in the charts which are also known as “Flying Saucers”. Note: This app can be applied to any interval based on Time (Second, Minute, Daily, Weekly and Monthly Bars), ranges or other. The visual example displays Green and Red UFO Price areas in a chart where Green would suggest that BUY Un-Filled orders may be waiting and Red would suggest that SELL Un-Filled orders may be waiting to be filled. A trader could decide to buy when Price enters the Green UFO and sell when Price enters the Red UFO. Based on that concept, those colored UFOs could be selected to plan trades where a trader, investor or a hedger; is planning to catch and ride a Market move and profit from it (Directional Strategies: Enter or Exit Long or Short Positions). They are expecting that the market will move in a certain direction after hitting and reacting to those Un-Filled Orders (colored areas in the chart) and later reach a certain Exit Price. is planning to profit from selling Out of The Money (OTM) options and collect time decay as these traders are hoping that they will expire OTM (Non-Directional Options Strategies such as Iron Condors, Credit Spreads, Strangles, Straddles, etc.: Profit from time passing while a Market trades within a Range or sideways). They are expecting that a market will not reach a certain point in the chart before a certain date and sell or write options to collect premium waiting for their expiration date while price stays within certain limits without surpassing the Strike Price of the Options sold.  How to manually insert this indicator into a TradingView chart? Step 1: Locate the upper toolbar within the Chart where you plan to insert this indicator, Click on Indicators and Click on Invite-Only Scripts Step 2: Select “AutoUFOs” by left-clicking on it Note: Once this app is inserted in a chart it then needs to be calibrated. Please refer to the Section on Calibration to understand how to perform this process. Which components are displayed? The example illustrates the various components available when using AutoUFOs®: UFO Bands: Are a visual representation of Price regions in a chart where BUY and/or SELL Orders are potentially still in a pending state: Un-Filled Orders (UFOs). Different Colors... Green UFOs would suggest that BUY Un-Filled Orders may be available and Red UFOs would suggest that SELL Un-Filled Orders may be available and waiting to be filled. 4 possible colors are available to visually represent UFOs. Two are variations of Red and the other two are variations of Green. The app assumes that the “purer” the color the greater the potential for a larger amount of Un-Filled Orders. - Red Pure Red Maroon Red - Green Pure Green Olive Green Flying Saucers: The round Flying Saucers are located where the app identifies the greatest concentration of Un-Filled Orders. The app highlights where the key price points are by plotting inner circles within the UFO Band. UFO Price Labels: The two figures displayed point at the upper part of the UFO Band and the lower part of the UFO Band. What Visual settings are available? TradingView has an enormous amount of available customizations that impact the visual look of a chart and the indicators in it, hence our AutoUFOs® app can look slightly different depending on some of those customization settings. Below are a few options that have been proven useful to some of our app users. Keep in mind that TradingView often adds new settings and functionality and therefore other settings not covered in this how-to idea could be helpful as well. To access the customization menu left-click on the wheel located on the bottom right part of the chart.   Indicator Last Value Label: Left-click to check or uncheck. This setting will display or hide the UFO Price Labels. No Overlapping Labels: Left-click to check or uncheck. This setting will stop or allow the UFO Price Labels to overlap. Apart from the above customization options, AutoUFOs® for TradingView has one important input that varies the way on how the UFO Bands are displayed on the screen. To access this input locate the "AutoUFOs" indicator title on the upper left part of your chart and click on the settings wheel. HideHitUFOs: Left-click to check or uncheck. This setting will display UFO Bands with a greater or a lesser concentration of Un-Filled Orders. Note: The grey UFO Bands represent areas of price with a lesser concentration of Un-Filled Orders and therefore these are likely to produce lower probability trades. How to calibrate this app? Calibration is a key process in defining how the analysis is carried out and will impact the potential results obtained by the user using this app. The calibration input is down to the user’s personal judgement and is at their own risk. A few steps will be needed to calibrate AutoUFOs®. The following steps will need to be repeated in a cycle until the app user is satisfied with the results. Step 1: Access the input dialog box by following the below steps: Locate the AutoUFOs indicator title on the upper left part of your chart. Click on the settings wheel. Notice the default calibration setting is set to 0.5. Feel free to change to any value between 0 and 1. click "OK" Step 2: Find and left-click on the “Replay” button located in the upper part of your chart. This will get you ready to begin a back-test process in order to adjust the calibration input.   Step 3: Notice the vertical red line. Move it to a desired date/time in the past and left-click in order to set that date/time as the origin of the back-test. Step 4: A new chart will load with the last bar on the chart being the one where the above vertical red line was located. Use the rectangle drawing tool to mark two UFO Bands of your choice where one should be Green and the next one should be Red or vice-versa. Step 5: Once this is done you are ready to replay the market and observe how this market reacted to your current settings. Using the replay bar, click on play and observe the movement of the new candles forming until price touches one of your rectangles and make notes to report if price turned and reached the rival UFO Band marked with the opposing rectangle or if price didn't react properly to the UFO Band you selected. Note: When performing this process you could certainly add additional rules that you may have in your current trading plan and combine those rules while you perform this back-test process. Note: Since some failed trades are to be expected, one of the objectives of this calibration process is to fine-tune the settings of the app in a way where you gain an adequate performance and by doing so you become familiar with its functionality and while you begin developing the skillset needed to trade efficiently with it. Step 6: In order to exit the chart replay mode, click on the cross located on the right extreme of the “Replay” floating tool bar Step 7: If this exercise was satisfactory enough, you could decide that the Calibration parameter used will be the one you would use for your trades moving forward. If you are not fully satisfied with the statistical performance obtained, you would need to go back to Step 1, change the calibration input to a greater or lesser value between 0 and 1 and redo the above back-test process until reaching results that are satisfactory enough. Note: When performing this process you could chose to use the AutoUFOs® app by itself, calibrate it and then add additional trading rules when trading, or you could run the process and combine your trading rules together with the app and run the calibration process altogether. Note: The chart replay mode does not work with continuous futures ticker symbols such as ES1!, CL1! or GC1!. When calibrating the app to trade Futures products you would need to avoid using continuous ticker symbols and use contract-specific ticker symbols.   Examples on how to use this app? The following approaches describe two different ways on how a trader, investor or a hedger could use this app. There probably are many other ways to make this app useful and we would love to receive your suggestions and know more about your experiences as well. Please treat the following examples for demonstration purposes and feel free to comment below and phrase your questions, experiences and ideas. Going Long (by Buying Low and Selling High in order to profit from a rising market) or Going Short (by Selling High and Buying Low in order to profit from a falling market) The thought behind Going Long or Going Short is to enter a market ready to catch and ride a market move in a given direction and profit from it: Going Long would profit from an upwards move, where Going Short would profit from a downwards move. In order to do so, the opening and closing time of the trade is critical since entering or exiting too soon or too late would end up in a problematic situation. The Un-Filled Orders (UFOs) concept behind the AutoUFOs® app could certainly be useful when aiming to identify the best moment to initiate a trade and when to finalize it and collect any profit that may have been produced. Selling Options and keep the Premium collected The thought behind Selling Options and keep the Premium collected is based on identifying certain places on a price chart that are not likely to be reached and Sell Options with strike prices beyond those places. The Options contracts sold would be Out of the Money (OTM) and they would remain OTM until their expiration date as long as the Market price does not reach the Strike price of the Options sold within that given period of time. If all of the above was true, the trader would have collected the Premium for selling those Options that would expire worthless, allowing the trader to keep that previously collected Premium. The Un-Filled Orders (UFOs) concept behind the AutoUFOs® app could be useful to theoretically identify certain places on a chart that are likely or unlikely to be reached anytime soon. Keeping in mind the concept that when a market enters a UFO the expectation would be to see a reaction or a bounce from that price region adding duration to a trade. Think of a case where those UFOs are quite far from the current available price or cases where there are multiple UFOs upon UFOs. In this instance it would be reasonable to expect that a market with these characteristics is unlikely to surpass any of those UFOs anytime soon and therefore an Options trader could capitalize on a setup like this by Selling Options where price is unlikely to reach. In addition to this, time passing would lead to a decay of the Options Premiums helping this type of trade to accumulate profitability little by little, keeping in mind that nothing stops time from passing. Furthermore, think in terms of probability and ask yourself the following question: what is of a higher probability? To determine with precision where a market is going to turn and where it is headed to, or to determine where a market is not likely to go within a certain amount of time? If you would rather choose the second case you may be interested in using advanced Options Strategies such as Iron Condors where a profit would be produced from time passing while a Market trades within a Range or sideways. In other words while a Market remains trading within a Range defined by Red UFOs and Green UFOs causing its price to remain range bound during a given period of time as a consequence of the potential bounces produced when its ¬¬price travels from UFO to UFO (Green-to-Red or Red-to-Green). Note: In all cases described in this how-to idea, it would be advisable to have a contingency plan on what to do in case a market moves against the trader, investor or the hedger. The use of Stop Market Orders, Protective Long Options Contracts or any other type of risk management technique could be useful. These sort of decisions are to be taken by the user of this app. Legal Considerations Disclaimer: When using this App you understand and acknowledge that the risk of trading can be substantial and that each investor and/or trader must personally consider whether this is a suitable investment. Past performance, whether actual, or indicated by simulated historical tests of indicators, is not indicative and in no way a guarantee of future results. Your actual trading may result in profits or losses as no trading system is, or can be, guaranteed. By using this app, you accept full responsibility for your actions, the trades taken and any profits and losses made. You also agree not to hold the developer of this app responsible for any outcome arising out of your use of this app.
NYMEX:CL1!Education
by traddictiv
6
1 year: Impact of Institutional accumulations on Bitcoin pricesAny feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :) In this post, we have attempted to cover some of the major institutional accumulations that has happened in Bitcoin since June 2020. Bitcoin's rise over the past 1 year has been phenomenal. The rise does not only mean in terms of prices, but also as an attractive asset class that provides a much-needed diversification. During the pandemic, the response towards Bitcoin has been nothing short of extraordinary. Both institutional investors and retail traders understood the importance of Bitcoin in building long term wealth. The data presented in this analysis has been researched and curated from different portals such as Tradingview, Coindesk, Forbes and Twitter. We have reviewed five different dates where the volumes have spiked up massively owing to news surrounding accumulation of institutional investors. It should be noted that the dates mentioned here reflect the news coming to limelight regarding the accumulation. It does not necessarily imply that all the accumulation happened on that exact day. 02nd June 2020: BTC closed at $9525.73 Fidelity Investments stated in their report that the number of institutions buying Crypto derivatives products has more than doubled. 27th July 2020: BTC closed at $11,046.19 Report shows Bitcoin futures surging past 186% as institutional accumulation of the underlying continues at a massive pace. BTC jumps up above $11k. 20th October 2020: BTC closed at $12,802.67 Paypal announces its acceptance of Bitcoin for payments. This time the accumulation is fuelled from both institutional and retail end. 17th December 2020: BTC closed at $22,814.24 Grayscale investments increased their Bitcoin holdings by double digit figures over the past few months. Bitcoin shot up by approximately 7% following the report. 29th January 2021: BTC closed at $34,249.64 Carthie Wood's ARK publish that Bitcoin climb unto $400K as hedge funds and several other institutions are steadily increasing their Bitcoin and crypto holdings. Another interesting piece that has come up very recently is MicroStrategy NASDAQ:MSTR , a business analytics firm has purchased around 13,005 Bitcoins, amounting to approximately $489 million, on Monday, 21st June 2021. ---------------------------------------------------------------------------------------- Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :)
BITSTAMP:BTCUSDEducation
by Mudrex
Wyckoff - Price CycleTextbook educational example of the Wyckoff Price Cycle, focusing on; Accumulations, Distribution, Markups, Markdowns, The Spring and UTAD. The graphic doesn't take into consideration the finer details of both the accumulation &/or distribution schematics nor does it focus on the re-accumulation / re-distribution schematics. Please see our other ideas for a specific breakdown of the above ^ Please also feel free to comment or reach out to us. Trade Smart! Phantom
Education
by Phantom_Trading
4
Basic Concepts of Liquidity Truly understanding 'why' the market moves through basic concepts of Liquidity This basic analytical overview is derived from the institutional methodology used at Phantom Trading. We use this institutional methodology commonly known as 'smart money concepts' in conjunction with additional pieces of confluence to utilise Liquidity around the factualities of the market. Within the graphic is 'reads a story of transitional money flow' in a clear, concise manner based on a 'vanilla / utopian / textbook' setup. At the extremity we can see the absolute 'swing high' creating a BMS (Break of market structure) followed by an impulsive continuation to the downside showing 'Bearish' Intent, the market tapping into demand & buy side liquidity has then correctively navigated back towards the previous swing high, printing what is commonly known as a 'double top' where several 'trading styles / types / characteristics' come into play - Front running 'Breakout traders' , Double-top' traders and the more patient Trend continuation', 'Breakout & Retest' traders. Knowing and understand concepts of Supply / Sell side liquidity around these levels we classify these as EQH - equal Highs as Liquidity is manufactured in these specific regions filling bids & offers. Once we have 'swept the liquidity' above the EQH it provides us with additional opportunities to Short the 'asset-class'
Education
by Phantom_Trading