AUDJPY - Long Setup My main trading principle is that the price always moves from swept liquidity levels to untouched liquidity levels.
In particular case we clearly can see the following context: price swept 1D key swing low and left untouched swing high.
But to take more statistically more probable trades we should wait for some type of lower timeframe confirmation, and it this case we can notice sign of strength, so potentially there is a higher probability to see price higher.
Mainly correlated with GBPJPY, so I recommend you to take only one position from these 2 pairs.
Your success is determined solely by your ability to consistently follow the same principles.
Beyond Technical Analysis
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Example of explanation of chart analysis and trading strategy
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There was an inquiry asking for detailed information on how to analyze charts and create trading strategies accordingly, so I will take the time to explain it.
Before reading this article, you need a basic understanding of charts.
That is, you need to understand candles and price moving averages.
If you study this first and then read this content, I think you will have some understanding of trading.
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Whether you are trading spot or futures, marking support and resistance points according to the arrangement of candles on the 1M, 1W, and 1D charts is the first task you need to do before trading.
To do this, you need to understand the arrangement of candles.
Therefore, before using my indicator, it is better to study candles first and understand the arrangement of candles.
When studying candles, it is better not to try to memorize the names or shapes of various patterns.
This is because the overall understanding of candles is important, not the various patterns of candles.
If you study with a book or video, you will be able to understand candles after reading or watching them at least 3 times.
We study charts to trade, not to analyze charts and teach them to others, so we need to study efficiently and save time.
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If you study candles, you will naturally understand the price moving average.
The indicator corresponding to the price moving average is the MS-Signal indicator.
This MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator, and the main indicator is the M-Signal indicator.
Therefore, we added the M-Signal indicator of the 1W chart and the M-Signal indicator of the 1M chart to the 1D chart so that we can see the overall trend.
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You can see the arrangement of the MS-Signal (M-Signal of 1M, 1W, 1D charts) indicators in the example chart.
Currently, since the M-Signal of the 1M chart > the M-Signal of the 1W chart, we can see that it is a reverse array.
If you understand the price moving average, you will understand that we should not trade when it is a reverse array, but when it is a regular array.
Therefore, since the current state of the example chart is a reverse array, it is not suitable for trading.
However, the reason we brought this chart in this state is because the M-Signal indicators of the 1M and 1W charts are converging.
As convergence progresses, it will eventually diverge.
Therefore, since the possibility of price volatility increases, the possibility of capturing the timing for trading increases depending on whether there is support at the support and resistance points.
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The indicators included in the example chart are drawn as horizontal lines to indicate support and resistance points.
This work performs the same role as the support and resistance points drawn on the 1M, 1W, and 1D charts according to the arrangement of the candles mentioned above.
Therefore, on the 1M, 1W, and 1D charts, horizontal lines are drawn on the indicators to indicate support and resistance points.
You can draw horizontal lines on indicators that are horizontal for at least 3 candles, and if possible, 5 candles.
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Among the HA-MS indicators, the important indicators are the HA-Low and HA-High indicators.
The HA-Low and HA-High indicators are indicators created for trading on the Heikin-Ashi chart.
Therefore, it is the next most important indicator after the MS-Signal (M-Signal on 1M, 1W, 1D charts) indicator that can tell the trend.
You can create a trading strategy depending on whether there is support near the HA-Low, HA-High indicators.
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The next most important indicator is the BW(0), BW(100) indicator.
When this indicator is created or touched, it is time to respond in detail.
That is, when you are trading with a trading strategy created from the HA-Low, HA-High indicators, when the BW(0), BW(100) indicators are created or touched, you can choose whether to proceed with a split transaction.
In addition, you can understand the OBV, +100, -100 indicators as response points for split transactions.
Therefore, you do not need to indicate support and resistance points for the OBV, +100, -100 indicators.
However, it is recommended to mark support and resistance points for the HA-Low, HA-High, BW(0), BW(100) indicators.
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If you look at the price position in the example chart, you can see that it is located in the 0.03347-0.03485 range.
And, the M-Signal indicator of the 1W chart is passing through this range, and the HA-High indicator of the 1W chart is acting as support and resistance.
Therefore, whether there is support near 0.03485 is an important key point.
If support is confirmed near 0.03485, it is a time to buy.
However, since the MS-Signal (M-Signal on the 1D chart) indicator is passing between 0.03485-0.03814, the point to watch is whether the MS-Signal (M-Signal on the 1D chart) indicator can break through upward.
As I mentioned earlier, if the MS-Signal indicator passes, a trend change will occur, so it is significant.
Therefore, in order to turn into a short-term uptrend, it is likely to be supported around 0.03814-0.03982.
Therefore, the first split selling section will be around 0.03814-0.03982.
At this time, whether to sell or hold depends on your investment style and investment period.
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Since the M-Signal indicator on the 1M chart is passing around 0.04341, it is likely to start when the price is maintained above the M-Signal indicator on the 1M chart in order to turn into a long-term uptrend.
Therefore, the second split selling period will be around the M-Signal indicator on the 1M chart.
This is also something you can choose.
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An important volume profile section is formed around 0.03038.
Therefore, the 0.03038 point corresponds to a strong support section.
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(30m chart)
When the time frame chart you are trading is below the 1D chart, it is recommended to activate the 5EMA indicator on the 1D chart.
(I just used the 30m chart as an example. The same principle applies to any time frame chart you usually use.)
This is because there is a high possibility of volatility when the 5EMA of the 1D chart and the M-Signal indicator of the 1M, 1W, and 1D charts are touched.
In other words, you can understand that it plays a certain role of support and resistance.
If it touches the HA-High, BW(100) indicator and falls and falls below the MS-Signal indicator, it will basically touch the HA-Low or BW(0) indicator.
On the other hand, if it touches the HA-Low, BW(0) indicator and rises and rises above the MS-Signal indicator, it will basically touch the HA-High or BW(100) indicator.
However, since it may not do so and may rise or fall in the middle, it is necessary for the support and resistance points drawn on the 1M, 1W, and 1D charts as mentioned earlier.
The support and resistance points drawn on the 1D chart are currently indicated at the 0.03347 point.
Therefore, even if it falls below the MS-Signal indicator, you can understand that there is a possibility of rising again around 0.03347.
Since the 5EMA of the 1D chart and the M-Signal indicator of the 1W chart are passing around 0.03485, we can see that the area around 0.03485 is an important support and resistance zone.
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Since the StochRSI indicator is currently above 50, we should focus on finding a time to sell.
Since it has fallen below the BW(100) and HA-High indicators, it has fallen too much to start trading with a sell (SHORT) position.
However, if you can respond quickly, you can enter a sell (SHORT) position when it falls from the 0.03411 point where the MS-Signal indicator is passing.
When the StochRSI indicator falls below 50, we should focus on finding a time to buy.
At this time, you can trade based on whether there is support or resistance at the support and resistance points drawn on the 1M, 1W, and 1D charts or around the MS-Signal (M-Signal on the 1M, 1W, and 1D charts), 5EMA, HA-Low, HA-High, BW(0), and BW(100) indicators on the 1D chart.
As mentioned earlier, you should not forget that trading strategies can be created based on whether there is support at the HA-Low and HA-High indicators.
Therefore, if possible, it is recommended to trade based on whether there is support near the HA-High indicator point of 0.03443.
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Thank you for reading to the end.
I hope you have a successful trade.
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Super performance candidate NASDAQ:SOFI has shown strong quarterly earning's growth, with its latest earnings quarter reporting 30% YoY, improving from losses to profits at an impressive rate
Being positioned as a Leader in the FinTech sector and significant institutional adoption, reflecting investor appetite and confidence
Aiding with a key Breakout day,
I have reasons to believe this security price could increase.
Interesting Simetry in $AMZNStarting from the 5th of August 2024 every time NASDAQ:AMZN reaches an important Fibonacci level retraces around 7%, then moves higher.
Once it reached 0.618, the Fibonacci level corrected by 6.86% in 5 days and then moved higher.
We have another wave up followed by another correction this time 7.62% in 9 days.
And again another wave up followed by a correction of 7.51% in 10 days to Fibonacci level 1
Once it reached 1.618 Fib level retraced to 1.382 Fib level Correcting 7.24% in 18 days this time.
Berkshire Hathaway | No More Apple Pie & Bank Bread!No More Apple Pie and Bank Bread | Buffett’s Recipe for Market Caution
Berkshire Hathaway has recently disclosed its earnings amid fluctuating around a $1 trillion valuation. A notable update is its continued reduction of stakes in overvalued assets, including a 20% decrease in holdings of Apple and Bank of America, boosting its cash reserves to $325 billion
Although Warren Buffett himself isn't favoring share buybacks at present, Berkshire Hathaway stands as a compelling investment option
Why Berkshire Hathaway's $325 Billion Cash Pile Signals Market Caution
The company's net earnings remain subject to significant fluctuations due to rules requiring valuation changes of investment holdings. However, there was a slight decline in operating earnings, mainly driven by lower insurance underwriting income. Despite this, that segment is historically volatile, and year over year aka YoY, the company has maintained strong performance.
Yea2date aka YTD, operating earnings have risen over 10%, totaling just under $33 billion compared to just below $29 billion last year. This points to an annualized earnings estimate of approximately $44 billion, implying a price2earnings aka P/E ratio of about 22, without factoring in over $320 billion in cash and significant investment holdings.
Excluding cash and investments, the adjusted P/E ratio is closer to single digits. Share buybacks have paused, reflected in a ~1% decrease in the outstanding shares YoY, signaling Berkshire's assessment of current market valuations.
Segment Highlights
The various business units within Berkshire Hathaway showcase its robust asset base and earning capacity. Insurance underwriting income saw a sharp YoY drop, but other business areas performed strongly. Income from insurance investments remained solid, and BNSF, its railroad subsidiary, also showed strong results despite a double digit YoY decline.
Berkshire Hathaway Energy continues its growth, cementing its position in the utility sector with significant renewable energy ventures. For context, NextEra Energy (NEE), with a market capitalization of $160 billion, posted quarterly earnings around 10% higher.
Berkshire's other controlled and non-controlled businesses contribute over $13 billion annually, underpinning its diversification and consistent earnings performance. This strength across segments underscores its formidable financial health.
Market Context
Currently, market valuations are elevated by historical standards.
Excluding periods of earnings dips, market enthusiasm is exceptionally high, with the S&P 500 P/E ratio nearing 30x, approaching levels last seen in 1999. Buffett and Berkshire appear to view a 3% yield from such a P/E as unattractive, especially when bonds offer higher returns.
The 2008 Playbook
Berkshire's track record of effectively utilizing its cash reserves is notable. Excluding its insurance float, the company still holds $150 billion in cash.
During the 2008 financial crisis, Berkshire leveraged its liquidity for strategic investments in companies like General Electric, Swiss Re, Dow Chemical, and Bank of America, as well as finalizing the full acquisition of BNSF in 2010. This proactive use of capital proved advantageous.
The current strategic sale of assets suggests Berkshire is preparing for potential market downturns. Given high S&P 500 valuations, reallocating part of an S&P 500 position into Berkshire Hathaway could be wise, ensuring exposure to a cash-rich portfolio capable of seizing future opportunities. Meanwhile, Berkshire’s earnings are valued lower than the broader market, potentially minimizing major downturn risks.
Investment Risks
A key risk is that timing the market is inherently challenging, with the adage "time in the market beats timing the market" serving as a caution. If Berkshire's market outlook is incorrect, its $300+ billion in cash could underperform while broader markets remain strong, which would diminish its appeal as an investment.
Final Thoughts
Berkshire Hathaway has taken the bold step of liquidating some of its most significant and priciest holdings, opting to incur capital gains taxes to increase liquidity. This move has bolstered its cash position to $325 billion, $150 billion above its float level. Meanwhile, its strong operational businesses continue generating healthy cash flow.
Drawing on its successful strategies during the 2008 crisis, Berkshire appears to be positioning itself for another downturn amid current high market valuations. We advise investors to consider shifting part of their S&P 500 exposure into Berkshire Hathaway for enhanced diversification and potential benefits in a market correction, long story short Berkshire Hathaway remains a robust investment opportunity but wont make millionaire!
What do you think moonypto fam?
Trading minute impulseOn the minute timeframe of GBPJPY at the moment we have the completion of the impulse formation. If the price continues to move in the direction of the impulse and the support zones do not allow it to overcome the base of the impulse, it may reach the targets 1 and 2. If the price fails to advance in the direction of the momentum and overcomes the support zone at the base of the momentum, it is very likely that the price will move sideways or against the direction of the momentum.
What will be the next trend of EUR/USD ?🔆The EUR/USD pair is being influenced by a number of economic and political factors, leading to significant volatility in recent times.
🔆 Technical Analysis:
The EUR/USD pair is currently in an uptrend, with the price trading above both the 34 EMA and the 89 EMA, suggesting a bullish bias in the short term. The next resistance level is identified at 1.0530 as the 1.618 Fibonacci line intersects the resistance zone; if the price reaches this level, a corrective rally is expected.
🔆 Fundamental Analysis:
A trade war between the US and Europe could push the euro to parity with the US dollar. New tariffs from the US could further weaken the eurozone economy, putting downward pressure on the euro.
The US dollar is expected to maintain its strength against the euro as the US Federal Reserve (Fed) may cut interest rates more gradually than expected as President Trump's policies may increase inflation.
🔆 Conclusion:
The trend of the EUR/USD pair in the coming period will depend on the developments of the above economic and political factors. Forecast Traders should closely monitor key support and resistance levels, along with macroeconomic information and monetary policies from both sides to make appropriate trading decisions.
Thank you for reading my comment: "FM"
#CHFJPY 4HCHFJPY (4H Timeframe) Analysis
Market Structure:
The price is moving within a downward trend channel, consistently creating lower highs and lower lows. Currently, the price is near the lower boundary of the channel, which acts as a dynamic support level. This suggests the potential for a short-term bounce or reversal to the upside.
Forecast:
A buy opportunity is anticipated if the price confirms a bounce from the channel's lower boundary, targeting the midline or upper boundary of the channel.
Key Levels to Watch:
- Entry Zone: Near the channel's lower boundary after confirmation of a bounce.
- Risk Management:
- Stop Loss: Placed below the channel's lower boundary or the recent swing low to manage risk.
- Take Profit: Target the midline or upper boundary of the channel for potential upside movement.
Market Sentiment:
The downward trend channel suggests an overall bearish structure, but a temporary bullish move is possible near the channel's support. Confirmation of a bounce is necessary before entering the trade to ensure alignment with market conditions.
What Lies Beyond Stargate's Gates?In a bold move that redefines the intersection of technology and national policy, President Donald Trump has unveiled "Stargate," a colossal project aimed at advancing the United States' capabilities in artificial intelligence. This initiative, backed by tech titans Oracle, OpenAI, and SoftBank, is not merely an investment in infrastructure but a strategic leap towards securing America's future in the global AI race. With commitments reaching up to $500 billion, Stargate is set to transform not only how AI is developed but also how it integrates into the fabric of American society and economy.
The project's immediate impact is palpable; it involves constructing state-of-the-art data centers in Texas, with plans to scale significantly across the nation. This undertaking promises to generate around 100,000 jobs, showcasing the potential of AI to be a major economic driver. Beyond the economic implications, Stargate aims at a broader horizon — fostering innovations in fields like medical research, where AI could revolutionize treatments for diseases like cancer. The involvement of key players like NVIDIA, Microsoft, and Arm underscores a unified push towards not just business efficiency but also societal benefits, challenging us to envision a future where technology and humanity advance hand in hand.
However, the vision of Stargate also brings to mind the complexities of global tech dependencies, especially concerning AI chip manufacturing, which largely relies on foreign production. This initiative invites a deeper contemplation on how national security, economic growth, and technological advancement can be balanced in an era where AI's influence is ubiquitous. As we stand on the brink of this new chapter, Stargate challenges us to think critically about the future we are building — one where AI not only serves our immediate needs but also shapes our long-term destiny.
#XAGUSD 4HXAGUSD (4H Timeframe) Analysis
Market Structure:
The price is currently respecting a wedge trendline resistance, which suggests that upward momentum is weakening. This pattern indicates a potential bearish reversal if the price fails to break above the resistance and starts moving downward.
Forecast:
A sell opportunity may arise if the price confirms rejection at the wedge trendline resistance, signaling the possibility of a move toward lower support levels.
Key Levels to Watch:
- Entry Zone: After the price shows clear rejection from the trendline resistance.
- Risk Management:
- Stop Loss: Placed above the trendline resistance or the recent swing high to minimize risk.
- Take Profit: Target the lower boundary of the wedge or nearby support zones for potential downside movement.
Market Sentiment:
The wedge trendline resistance indicates bearish sentiment, with sellers likely to gain control if the price fails to break above the resistance. Waiting for confirmation of rejection ensures alignment with market momentum.
Gold Spot/USD (XAUUSD) Analysis: Potential Reversal In this analysis of the Gold Spot/USD (XAUUSD) on the 1-hour chart, we observe key market structures and potential trading opportunities:
1. Price Action: The price has been trending upwards, creating a higher high near the 2757-2758 zone.
2. Key Levels:
Resistance Zone: The area around 2757-2758 acts as a significant resistance where the price might face selling pressure.
Support Zone (HTF Order Block): The highlighted purple zone around 2747 represents a higher time frame order block, a potential support area where buyers may step in.
3. Potential Scenario:
If the price retraces to the HTF order block (purple zone), we could see a bullish reaction as buyers take control.
Conversely, a break below this order block might signal further bearish momentum.
4. Trading Plan:
Bullish Scenario: Look for long opportunities if the price shows bullish reversal patterns within the HTF order block.
Bearish Scenario: Monitor for short setups if the price breaks below the HTF order block with strong momentum.
#XAGUSD 4HXAGUSD (4H Timeframe) Analysis
Market Structure:
The price is currently respecting a wedge trendline resistance, which suggests that upward momentum is weakening. This pattern indicates a potential bearish reversal if the price fails to break above the resistance and starts moving downward.
Forecast:
A sell opportunity may arise if the price confirms rejection at the wedge trendline resistance, signaling the possibility of a move toward lower support levels.
Key Levels to Watch:
- Entry Zone: After the price shows clear rejection from the trendline resistance.
- Risk Management:
- Stop Loss: Placed above the trendline resistance or the recent swing high to minimize risk.
- Take Profit: Target the lower boundary of the wedge or nearby support zones for potential downside movement.
Market Sentiment:
The wedge trendline resistance indicates bearish sentiment, with sellers likely to gain control if the price fails to break above the resistance. Waiting for confirmation of rejection ensures alignment with market momentum.