True SMC inducement and order flowThis Post will help you to understand Some New Things about OF and INDUCEMENT
Wave Analysis
What is Smart Money Trap ( SMT)What is Smart Money Trap ( SMT).
This Post will help you to understand SMT.
SMT appeared after IDM
Why you need to have rules in your trading careerHello,
The importance of rules cannot be underestimated in any business. This must not be different in trading/investing since it must be viewed at all times as a business.
Below are my rules as a wave trader. Wave trading is a trading strategy that combines technical analysis with Elliott Wave Theory to identify and predict future market movements. This approach involves analyzing market price patterns to understand the cyclical nature of market trends and capitalize on these patterns for trading opportunities. Below is an example of how markets move in waves
Rules are very important (Our trading rules)
Identify Impulse & Correction
The first step in trading is to identify the impulse and correction phases in the market. An impulse phase is characterized by strong, directional price movement, indicating a clear trend. Corrections, on the other hand, are smaller, counter-trend movements that typically follow an impulse. By recognizing these phases, you can better understand the market's structure and prepare for potential trading opportunities. Below is an example of impulses & corrections identified
Identify the Pattern Formations
Once you have identified the impulse and correction, the next step is to look for specific pattern formations. These patterns, such as head and shoulders, double tops, or triangles, provide clues about future price movements. Understanding and recognizing these formations can significantly enhance your ability to predict market direction and make informed trading decisions. Below are patterns identified that can be tradeable
Most of these patterns can nowadays be identified for you using Tradingview under indicators, metrics & strategies.
Identify Entry Points
After identifying the patterns, the next crucial step is to pinpoint entry points. This involves determining the optimal moment to enter a trade based on your analysis of the market. Entry points should be chosen carefully to maximize potential gains while minimizing risk. Look for confirmations, such as breakouts from patterns or specific technical indicators, to ensure a higher probability of success. Below is an example with a risk free entry
We shall be looking in another post on different types of entries.
Look for Targets
Setting targets is essential for effective trading. Targets help you establish your profit goals for each trade and ensure that you remain disciplined in your approach. These targets can be based on various factors, such as previous support and resistance levels, Fibonacci extensions, or measured moves from the identified patterns. Clear targets allow you to exit trades strategically and lock in profits.
Below is our clear target for the entry we made with a clear stop loss as well
Look for Exits in Case the Trade Doesn't Go Your Way
Not all trades will go as planned, so it's vital to have exit strategies in place for unfavorable scenarios. This involves setting stop-loss levels to limit potential losses and protect your capital. By defining these exits beforehand, you can remove emotional decision-making from your trading process and adhere to a systematic approach, ensuring long-term success and sustainability in your trading business.
I trust that these rules can help you in your trading journey. You can think of having them written somewhere. That way you can look at them & follow them for each trade you make.
All the best
Interpreting a Potential Wave 5 in BTC/USDHere's how you can analyze the daily chart of BTC/USD to identify a potential wave 5 uptrend using Elliott Wave Theory:
Confirmation of Uptrend: Analyze the higher timeframe charts (weekly or monthly) to confirm a dominant uptrend.
Completion of Wave 4: Identify the end of the corrective wave 4. It should ideally be shallower than wave 2 and shouldn't breach the bottom of wave 2 in a strong uptrend.
Wave 5 Characteristics: Look for the following signs in the daily chart that might suggest wave 5:
Renewed upward momentum with increased trading volume.
Price surpassing the highs of wave 3, indicating a continuation of the uptrend.
Potential application of Fibonacci extensions, particularly the 1.618 extension applied to wave 3 or the entire wave 1-3 movement, to identify possible price targets for wave 5.
Essential Considerations:
Wave 5 can be deceptive: It might be weaker than anticipated due to profit-taking by earlier trend participants or exhaustion as the trend nears its completion.
False breakouts: Sharp price increases that fail to hold and reverse can trap traders expecting wave 5.
Confirmation is key: Always seek confirmation from other technical indicators like volume analysis, support/resistance levels, and trend indicators before entering a trade.
Alt season is just around the corner“The alt season is very close,” just around the corner. This is supported by the Dominance chart for Bitcoin and the Index chart for the dollar... The slowdown that is occurring is nothing but a disruption of the ranks of the weak and those who do not understand the field of currencies... At this moment wealth is created...
history repeats itslf
XAUUSD 1H - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics.
Consolidation, Initiation, Retracement, Continuation (CIRC)
Consolidations
What are “consolidations”?
Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
XAUUSD 15M - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics.
Consolidation, Initiation, Retracement, Continuation (CIRC)
Consolidations
What are “consolidations”?
Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
XAUUSD 1H - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics.
Consolidation, Initiation, Retracement, Continuation (CIRC)
Consolidations
What are “consolidations”?
Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
Donchian Channel (Path detection in the price chart)This method can be used to find the direction of price movement and choose the best times in the chart. In the main image, you can look at this indicator from a distance, where the path is easily determined. In the second way of using it, you can use the price reversals as support and resistance, where the red dots are the supports that the price rejected and the white dots are the supports that the price reacted to. The prices and their movement do not happen according to the indicator, but the volume of entry and exit causes the price to move in the chart and the trader can more easily identify the decrease and increase in the price chart through the indicators.
3 technical reasons for the growth of #Bitcoin ?!This post has an educational aspect, and in it I checked the reasons and conditions for the growth of Bitcoin based on different time frames
1-The first reason (daily time frame):
Hitting two key daily time frame supports
1- Daily timeframe pivot level (pivot indicator)
2- Midline of the descending channel
Hitting support, especially support of higher timeframes, can lead to positive reactions and growth.
Important note: Pay attention to the shadows involved. As you can see in the photo above, after hitting the pivot support, the daily candle formed a long lower shadow. which must be closed under this shadow to fall. That is a difficult thing
2- The second reason (4 hours time frame):
Formation of a falling wedge pattern on the support of a higher timeframe (previous photo)
Important point: when the downward trend before the wedge pattern consists of 3 waves, the validity of the wedge pattern for reversal is higher
3- The third reason (4-hour time frame):
Triple divergence:
If the orange and blue lines of the MACD indicator cross again, the triple divergence is confirmed and the possibility of forming a bottom doubles.
This post is educational in nature and you are responsible for any investment decisions.
Thank you for your support
Backtesting vol.1Come watch how the market completely can completely destroy your account and why it is important to use a stop loss in your trading. If you found this video helpful or you learned something new give it a like and share it for me!
Swing Trading - Using Market Side and Opening Range FiltersSwing trading is a short-term strategy where traders aim to capitalise on small price movements within a financial instrument over a specific period. The goal is to capture gains from these "swings" in the market rather than focusing on long-term trends.
In this example, I am trading the GBP/JPY using the market side and the session opening range as filters to determine high probability trading direction:
Market Side: This helps to identify the overall trend or sentiment in the market.
Session Opening Range: This is the price range between the high and low during the initial period after the market opens. It is used to set reference points for potential entry and exit levels.
Here's a simple breakdown:
Below the Market Side and Opening Range: If the price is below both the market side indicator and the opening range, this signals a bearish sentiment, and you look for selling opportunities.
Above the Market Side and Opening Range: If the price is above both the market side indicator and the opening range, this indicates a bullish sentiment, and you look for buying opportunities.
I use the Charts247_WT Custom Indicator Candles for entries and exits, which provide specific signals to enter trades and exit existing positions. This combination of trend filters and entry signals helps improve your trades' accuracy and timing, aligning your actions with the broader market context.
GOLD Trading: 8 Mistakes Traders MUST Avoid in a Bull Market
The unstoppable uptrend on Gold may cause irrational and very costly decisions . For the past 6 months, we've seen an unprecedented surge, with new highs being set almost daily.
In this article, we will discuss critical mistakes that traders often make in the midst of such a bullish run and explore the strategies to maximize your gains.
1. Technical Indicators Lie
Always remember that technical indicators that measure the momentum or strength of a market trend, that show the overbought and oversold conditions, fail miserably in strong bullish or bearish rallies.
I am talking about such indicators as Relative Strength Index (RSI), Moving average convergence/divergence, Stochastic, etc. The fact that one of these indicators show overbought condition or even a bullish divergence most of the time will be a false signal.
Above is the example of an overbought RSI on Gold chart on a daily.
After the market became overbought, it went 1000 pips higher before the first pullback.
2. It is Never too High
When the market starts setting new all-time highs, people typically start saying that the price is already "too high" and start closing their long positions or even open short positions.
Remember, that the notion of too high is very subjective.
Look at a bullish rally on Gold in 2020.
I well remember that when the market updated a yearly high in April,
People start staying that it is already "too high".
However, the market kept rallying for 4 consequent months, constantly updating the highs.
Such a market behavior may persist for a significant period of time, be prepared for that.
3. Beware of Overconfidence
Even though bullish rallies may be long, always remember that they can not last forever.
At some moment, correction or even bearish reversal will occur.
For that reason, open long positions carefully, setting realistic targets.
4. Protect Your Gains and Maximize Your Profits
When the market is trading in the uncharted territory, it is almost impossible to predict where it will find the resistance. With a take profit level, you may close the trade too soon.
If you see that the market is driven by euphoria and keeps setting new all-time highs, remove take profit and apply a trailing stop instead.
Keep that below the recent supports, use ATR or some other classic technical tool.
That will help you to benefit from the entire rally.
5. DON'T SELL BULLISH RALLY
When the market is driven by greed, euphoria or fear, never go against the market. The chance that you will accurately predict the turning point is close to 0.
6. Beware of Lower Time Frame Bearish Patterns
In a strong bullish trend, classic bearish reversal pattern have low accuracy, especially on minutes time frames.
Look at a sequence of double tops on 15 minutes time frame.
These patterns are a great example of manipulations and how smart money induce retail traders to start shorting.
In a such a strong bullish trend, the only strategy to rely on is trend-following trading.
7. Do Not Rely On News
In times of strong bullish/bearish rallies,
the data in economic calendar and important news releases stop giving the reliable signals.
In times of bulls/bearish runs, emotions become the main driver of the markets, not the fundamental data.
8. If You Missed It, Let It Go
I can imagine, how terrible you may feel yourself if you did not manage to buy Gold on a good price. It's sad, and it is painful to watch how the market goes higher and higher without you.
But always remember a simple rule: if you missed the rally, let it go. With each new high that the market sets, your potential gains drop dramatically.
I hope that these tips will help you not get burned while Gold is on fire.
Stay calm and patient, and do not let your emotions intervene.
❤️Please, support my work with like, thank you!❤️
UNI wave reversal case studyCase study for UNI/USDT chart.
see how the MTF Wave down started at the correction. up to the entry there were no fakedowns. The first Fakedown have a clear long entry similar to the ideal MTF Wave illustrated on the right...
The Mechanics Of Trading - Part XII - 6-4-24 FlagsPart XII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part XI - SPY Flagging ExamplePart XI
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
MTF WAVE indicator Case study on $ALICECase study for the MTF Wave showing all entries and phases in a clear way.
Make sure to compare the ideal MTF Wave concept with the actual MTF Wave indicator below the chart to compare the wave start, short and long entries, as well as different wave phases and how they correspond to Price action.
This one geared up while showing the perfect Fake Down (large gap between gray and blue) right at the support retest after initial breakout, followed by a 116% run so far!
The Mechanics Of Trading - Part X - EOD 2 Min ES RecapPart X - End Of Day 2 Min ES Recap
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IX - ES Breakdown To SupportPart IX
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VIII - Learning PatiencePart VIII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VII - 2 Min ES TrendingPart VII - Applying Success/Failure & Fibonacci Price Theory
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VI - 2 Min ES ChartPart VI
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
$GTC textbook MTF Stoch Wave reversal patternA clear example of a textbook MTF Stochastic Wave, see the example of that on the top right. Showed three distinct entries with Gray stoch curve tapping down each time while the gap between gray and blue kept getting bigger indicating a stronger fakeout each time and while Green was gearing upwards, indicating an impulse wave coming...
