Hello, friends! We all know that it is important to have a trading plan and a profitable strategy, and, of course, to follow them. Now, the issue of discipline and following your own trading rules is where most of the problems start. However, there is one simple tool, literally a piece of paper, that can help you significantly improve your discipline in trading...
What is divergence? Divergence in trading is one of the key tools used by us traders to analyze the market and make decisions about entering or exiting trades. It is based on observing differences between two different indicators such as price and oscillator. The advantage of using divergence in trading is that it allows us to identify possible market reversals...
What to do with Doji? Beginning forex traders, having come across the candlestick pattern Doji, get lost and start making rash actions. They close and open positions, change stop-loss, etc. Naturally, such rush leads to losses. So how to be with doji, what to do when such a candlestick appears on the chart? What is Doji? A doji is a candlestick that has equal...
In the world of forex trading, Myfxbook has become a popular platform for traders to share and analyze their trading results. However, as with any online platform, there is a risk of encountering fake or fraudulent accounts that mislead users. It is crucial to be able to spot these fake Myfxbook accounts to ensure credibility and make informed decisions when...
Hello, fellow forex traders! Today we are going to learn about a strategy called HIGHER HIGH AND LOWER LOW. It is quite possible that the strategy is known to you under a different name, as it belongs to the classic ones. The strategy is based on Price Action, i.e. on the price movement and no indicators are required. Nevertheless, indicators can be used for...
The pinbar setup is a popular candlestick pattern that is widely used by traders in the forex market. It consists of a single candlestick with a small body and a long shadow, which resembles a pin. This pattern often indicates a potential reversal or continuation of a trend. In this post, we will discuss the best methods to trade the pinbar setup at key levels,...
Elliott Wave corrective movements are deviations from the main trend and serve to correct errors or imperfections that occurred during the formation of an impulse movement. These corrective movements are defined by complex wave structures that can be repeated in different variations and combinations. The wave structure consists of two types of movements -...
A trader usually works on a strategy that is strictly tied to one timeframe. This timeframe is used to determine the trend direction and search for strategy signals. Alexander Elder proposed to perform additional analysis and confirm the trend movement on two more timeframes of higher order. This technique was first described in his work, called "Elder's Three...
Price spends most of its time in trading ranges. On the chart, this results in the formation of a horizontal, ascending or descending trading channel. Trading channels are one of the most common and important chart patterns. Indeed, in most cases, price tends to consolidate in a limited range, which is a manifestation of buying activity by market participants. ...
✴️ What is Order flow in trading? In brief, it is the flow of trades of a major player. Order flow is searched for after liquidity has been captured or if the price enters the area of interest. Price is fractal and therefore the same areas of interest can be applied to different timeframes. The Order Flow trading method allows you to enter a trade even if you...
This model is a W-shaped pattern. It is formed at the "bottom" of the market. It serves as a reversal model. When identifying a double bottom formation, look for price patterns that occur when a price has reached a support level twice and failed to break through it. For example, consider a chart with two distinct lows, with a trough in between. The price may then...
What is an impulsive price movement? This is a situation when the market moves with great force in one or another direction, passing large distances in a short period of time. What is a corrective price movement? It is a price stop. After an impulsive movement, the price needs a rest. Unlike an impulsive movement, a corrective movement lasts long enough and is...
✴️ Hello, ladies and gentlemen! Today we are going to talk about a popular strategy called Highest open Lowest open. This strategy was first published on forexfactory forum. The strategy is based on following the natural movements of the market, which you may consider unpredictable. Here, we will make money on those very movements. In this strategy, you will...
How do we determine the levels of supply and demand on a chart? To find supply, we will look at the highs of price movements, and to find demand, we will look at the lows. We need to note highs and lows with fast and strong price movements. Fast rises for demand and troughs for supply. The less the price stays at a level the better for us. The first thing we...
✴️ What is expectation in trading? Every trader should be familiar with the concept of mathematical expectation, we will briefly discuss this aspect again. Take a look at the figure above. In the end, the total net profit (or loss) comes from both the frequency of profitable and losing positions (however many there are) and their average size. The goal of any...
Signal providers are becoming increasingly popular among traders, offering automated trading recommendations or strategies to take advantage of forex. However, it is important to be aware of potential red flags that may indicate that a signal provider is not trustworthy. In this post, we will look at some of the most common "red flags" that signal providers can...
Hello traders. In today's post, we will look at such a concept as the J-curve. This curve is found in various fields and can visually represent various phenomena. However, today we will look at the J-curve as a phenomenon of trading. In the post, you will learn what a J-curve is and what its essence is. According to Investopedia , the J-curve is a trendline that...
In this post we will analyze the Price Action engulfing pattern, one of the main candlestick patterns, which traders appreciate for its reliability and high percentage of success rate. Confirmed by other factors (key levels, indicator signals, fundamental preconditions), the engulfing pattern can become an effective tool for gaining profit. ✴️ What Does This...