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Learn 3 Best Time Frames for Day Trading Forex & Gold If you want to day trade Forex & Gold, but you don't know what time frames you should use for chart analysis and trade execution, don't worry. In this article, I prepared for you the list of best time frames for intraday trading and proven combinations for multiple time frame analysis. For day trading forex with multiple time frame analysis, I recommend using these 3 time frames: daily, 1 hour, 30 minutes. Daily Time Frame Analysis The main time frame for day trading Forex is the daily. It will be applied for the identification of significant support and resistance levels and the market trend. You should find at least 2 supports that are below current prices and 2 resistances above. In a bullish trend, supports will be applied for trend-following trading, the resistances - for trading against the trend. That's the example of a proper daily time frame analysis on GBPCHF for day trading. The pair is in an uptrend and 4 significant historic structures are underlined. In a downtrend, a short from resistance will be a daytrade with the trend while a long from support will be against. Look at GBPAUD. The market is bearish, and a structure analysis is executed. Identified supports and resistances will provide the zones to trade from. You should let the price reach one of these areas and start analyzing lower time frames then. Remember that counter trend trading setups always have lower accuracy and a profit potential. Your ability to properly recognize the market direction and the point that you are planning to open a position from will help you to correctly assess the winning chances and risks. 1H/30M Time Frames Analysis These 2 time frames will be used for confirmations and entries. What exactly should you look for? It strictly depends on the rules of your strategy and trading style. After a test of a resistance, one should wait for a clear sign of strength of the sellers : it can be based on technical indicators, candlestick, chart pattern, or something else. For my day trading strategy, I prefer a price action based confirmation. I wait for a formation of a bearish price action pattern on a resistance. Look at GBPJPY on a daily. Being in an uptrend, the price is approaching a key resistance. From that, one can look for a day trade . In that case, a price action signal is a double top pattern on 1H t.f and a violation of its neckline. That provides a nice confirmation to open a counter trend short trade. Look at this retracement that followed then. In this situation, there was no need to open 30 minutes chart because a signal was spotted on 1H. I will show you when one should apply this t.f in another setup. Once the price is on a key daily support, start looking for a bullish signal. For me, it will be a bullish price action pattern. USDCAD is in a strong bullish trend. The price tests a key support. It can be a nice area for a day trade. Opening an hourly chart, we can see no bullish pattern. If so, open even lower time frame, quite often it will reveal hidden confirmations. A bullish formation appeared on 30 minutes chart - a cup & handle. Violation of its neckline is a strong day trading long signal. Look how rapidly the price started to grow then. In order to profitably day trade Forex, a single time frame analysis is not enough . Incorporation of 3 time frames: one daily and two intraday will help you to identify trading opportunities from safe places with the maximum reward potential. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
14
Ultimate Guide to Smart Money ConceptsWhat Are Smart Money Concepts? Introduction: If you’ve been trading for a while, you’ve probably noticed that sometimes the market moves in ways that just don’t make sense. You’ve got your technical analysis all set, but the market seems to go in the opposite direction. That’s where Smart Money Concepts (SMC) come in. At its core, SMC is all about understanding how big players in the market (think hedge funds, institutions, and banks) move prices. These players have massive amounts of capital and information, and they don’t trade like the average retail trader. Understanding their behavior can help you see where the market is going next before it happens. What is Smart Money? In the world of trading, smart money refers to the institutional investors who move markets with their huge orders. Unlike retail traders, who might be relying on indicators or patterns, smart money trades based on liquidity, market structure, and order flow. While retail traders are typically reacting to price movements, smart money is the one causing those moves. They’re out there seeking out places where they can accumulate positions or distribute them. The tricky part is that they’ll often make the market go in one direction just to trap retail traders and get them to take positions before flipping it back to where they wanted it to go in the first place. Key Concepts in Smart Money Trading 1. Market Structure Market structure refers to the way price moves in a trend. It’s essentially a pattern of higher highs and higher lows for an uptrend, or lower highs and lower lows for a downtrend. Smart money uses these patterns to their advantage. When they see the market creating a series of higher highs and higher lows, they’ll take advantage of that momentum to push prices further, knowing retail traders will follow along. But when they want to reverse the market, they’ll push it in the opposite direction, creating a market structure shift or a break of structure, which signals that the trend is over and a new one is starting. 2. Liquidity Liquidity refers to the amount of orders available to be filled at different price levels. Smart money knows exactly where retail traders are likely to place their stops or buy orders. They’ll often push the price to these levels, triggering those stops and collecting the liquidity. Once that liquidity is grabbed, they’ll reverse the price and move it in the intended direction. A common way to spot liquidity is by looking for equal highs or equal lows, where traders often place their stop-loss orders. These are often areas smart money will target. 3. Order Blocks Order blocks are areas on the chart where institutions have placed big orders. These are key levels that represent where price might return to later, and they can act as areas of support or resistance. Order blocks are usually found after big price moves. Institutions place these orders to either accumulate positions or offload them, and price often comes back to these levels to fill orders that were left behind. 4. Fair Value Gaps (FVG) Fair value gaps, or imbalances, are price areas where the market moves quickly, leaving gaps between candlesticks. These gaps represent areas where the market has moved too fast for regular orders to fill, and price tends to return to these levels to fill the gaps. Smart money knows that these imbalances are critical areas for future price action, and they’ll use them to re-enter the market after a move has been completed. Why Does Smart Money Matter? Understanding smart money concepts is like learning to think like an institution. Instead of chasing after price based on typical retail indicators, you start looking for the big moves that smart money is making. You begin to notice when the market is setting traps for retail traders, and how these large players accumulate positions before pushing price in a big way. With SMC, you stop guessing and start anticipating. By looking for liquidity zones, order blocks, and market structure shifts, you can get in sync with the big players and follow their moves, not fight them. Conclusion Smart Money Concepts are all about shifting your perspective. Instead of thinking like a retail trader looking for quick breakouts, oversold/overbought conditions, or chasing trends — start looking at the market as the big players do. Pay attention to where the liquidity is, identify key order blocks, and use market structure shifts to guide your trades. By learning to spot these key signs, you’ll stop being the one who’s trapped and start being the one who’s in sync with the smart money. Ready to trade smarter? Keep an eye on those order blocks and liquidity zones — they’re where the real money is made. Next Steps - Start practicing by reviewing charts through the SMC lens. - Keep refining your understanding of market structure, liquidity, and order blocks. - Stay patient, smart money trades aren’t about quick wins, but about positioning yourself for big moves. __________________________________________ Thanks for your support! If you found this guide helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀 Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈
Education
by TehThomas
76
What are Tariffs? How They Work and Why They Matter to You?For centuries, tariffs have played a crucial role in global trade, safeguarding domestic industries, shaping international relations, and influencing economic policies. While they often dominate headlines during trade wars and economic policy debates, many people still don’t fully understand what tariffs are, why they are used, and how they impact the economy. This comprehensive guide covers: ⦿ What tariffs are and how they work ⦿ Different types of tariffs ⦿ Why governments impose tariffs ⦿ The economic, political, and social effects of tariffs. ⦿ Historical and modern examples ⦿ The debate between protectionism and free trade ⦿ Tariffs in different economic systems ⦿ The future of tariffs in a globalized world By the end of this article, you’ll have a decent understanding of tariffs and their role in the global economy. 🤔 What Are Tariffs? A tariff is a tax imposed by a government on imported goods and services. The primary purpose of tariffs is to increase the cost of foreign products, making domestically produced goods more attractive to consumers. This serves several economic and political functions, such as protecting domestic industries, generating government revenue, and addressing trade imbalances. 👍 How Do Tariffs Work? A government sets a tariff rate on imported goods (e.g., 25% on foreign cars). Importers must pay this tax when bringing goods into the country. This increases the cost of imported goods, enhancing the competitiveness of domestic alternatives. Domestic industries benefit from reduced foreign competition. The government collects revenue from the tariff. 🦸‍♂ Who Pays the Tariff? Importers: These businesses or individuals directly pay the tariff when they bring goods into the country. This increases their costs. Businesses: Since importers face higher costs, businesses that rely on imported goods often pass these costs onto consumers by increasing prices. Consumers: Ultimately, the general public bears the cost as they pay higher prices for goods affected by tariffs. 🔎 Types of Tariffs Governments employ various tariffs depending on their economic goals and trade policies. Some of these are: 1️⃣ Ad Valorem Tariffs An ad valorem tariff is a percentage-based tariff calculated on the value of the imported goods. The tax amount increases or decreases with the price of the product. Example: A 10% tariff on imported TVs means a $1,000 TV incurs a $100 tariff. Usage: Commonly used for luxury goods, automobiles, and consumer electronics. 2️⃣ Specific Tariffs A specific tariff is a fixed fee charged per unit of imported goods, regardless of price. Example: $3 per barrel of imported oil. Usage: Often used for commodities like oil, wheat, and alcohol. 3️⃣ Compound Tariffs A compound tariff includes both a percentage-based tax (Ad valorem) and a fixed fee on imports (Specific). This means importers pay a fixed fee per unit as well as a percentage of the item’s value. Example: A 5% tax plus $2 per imported cheese wheel. Usage: Applied to goods where both quantity and value affect the market, such as food products and industrial materials. 4️⃣ Tariff-Rate Quotas (TRQs) A TRQ allows a limited quantity of an imported good to enter at a lower tariff rate. After the quota is reached, extra imports are taxed at a higher rate. Example: One of the most well-known examples of a TRQ is the U.S. Sugar Tariff-Rate Quota. The United States allows a certain quantity of sugar to be imported each year at a lower tariff rate. Any sugar imports within the quota limit are subject to a low tariff (e.g., 5%). However, once the quota is exceeded, any additional sugar imports face a much higher tariff (e.g., 20%). This system ensures that domestic sugar producers remain competitive while still allowing controlled imports to meet demand. Another example is the European Union's TRQ on Beef Imports. The EU permits a specific amount of high-quality beef imports (e.g., from the U.S. and Canada) at a lower tariff. Once this quota is filled, any additional beef imports are taxed at a significantly higher rate. This policy helps protect EU cattle farmers while maintaining trade agreements with international suppliers. 5️⃣ Protective Tariffs A protective tariff helps local industries by making imported goods more costly, reducing foreign competition. Example: The U.S. imposed a 25% tariff on Chinese steel to protect domestic steel manufacturers. Usage: Commonly used in industries facing strong foreign competition, such as steel, automotive, and textiles. 6️⃣ Revenue Tariffs A revenue tariff is mainly designed to raise money for the government, not to shield local industries. Example: In the 19th century, tariffs were the main source of revenue for the U.S. government before income taxes were introduced. Usage: Often applied to goods that do not have strong domestic competition but are widely consumed, such as alcohol and tobacco. ❓ Why Do Governments Impose Tariffs? 1️⃣ Protecting Domestic Industries Tariffs shield local businesses from cheaper foreign competitors, helping domestic industries grow. Example: U.S. steel tariffs in 2018 benefited domestic steel manufacturers. 2️⃣ Generating Government Revenue Before modern taxation systems, tariffs were a key source of revenue for governments. Example: In the 1800s, tariffs accounted for 90% of U.S. federal revenue. 3️⃣ National Security Concerns Some industries, like defense and technology, are crucial for national security, and governments impose tariffs to reduce reliance on foreign suppliers. Example: The U.S. limits imports of rare earth minerals to ensure a domestic supply chain for defense technologies. 4️⃣ Retaliation in Trade Wars Countries impose tariffs to address unfair trade practices or economic conflicts. For instance, during the trade war between the United States and China, both countries imposed taxes on each other's goods 5️⃣ Preventing Dumping Dumping occurs when a country exports goods at below-market prices to eliminate competition. Example: The U.S. imposed tariffs on Chinese solar panels due to concerns about dumping. ⚖️ Pros and Cons of Tariffs Pros ✅ Protects local jobs and industries ✅ Encourages domestic production ✅ Generates government revenue ✅ Enhances national security by reducing reliance on foreign goods Cons ❌ Increases prices for consumers ❌ Can lead to trade wars and economic retaliation ❌ Encourages inefficiency in domestic industries ❌ Disrupts global supply chains 📕 Historical and Modern Examples of Tariffs 1. The Smoot-Hawley Tariff Act (1930) The U.S. imposed tariffs on over 20k imported goods. Result: Other countries retaliated, global trade dropped by 66%, and the Great Depression worsened. 2. Trump’s Tariffs on China (2018-2020) The United States levied tariffs on $360 billion worth of Chinese goods. China retaliated, affecting U.S. agriculture exports. Result: Some U.S. industries benefited, but consumers faced higher prices. 3. The European Union’s Tariffs on U.S. Goods (2021) The EU imposed tariffs on American whiskey, motorcycles, and jeans in response to U.S. steel tariffs. Result: Brands like Harley-Davidson saw reduced sales in Europe. ⚙️ Tariffs vs. Free Trade: The Big Debate The debate between tariffs and free trade is a fundamental discussion in global economics and trade policy. This debate revolves around whether governments should impose tariffs (taxes on imported goods) or embrace free trade (minimal to no restrictions on imports and exports). ◉ Free Trade (No Tariffs) Free trade is the unrestricted movement of goods and services across borders without tariffs or other trade barriers. Advocates argue that it fosters economic efficiency and global cooperation. ✅✅ Advantages of Free Trade Lower Prices for Consumers – Without tariffs, imported goods are cheaper, leading to more affordable products. Increased Economic Growth – When countries trade freely, they specialize in what they do best, leading to higher productivity and economic expansion. More Competition = Better Products – Companies must compete on quality and innovation rather than relying on government protection. Stronger Global Relations – Open markets encourage cooperation between nations, reducing the risk of economic conflicts. Access to More Goods and Services – Consumers enjoy a greater variety of products at lower costs. ❌❌ Disadvantages of Free Trade Job Losses in Unprotected Industries – Domestic industries that can't compete with cheaper imports may shrink or shut down. Dependence on Foreign Suppliers – A country may become overly reliant on other nations for essential goods (e.g., medical supplies, electronics). Potential Trade Deficits – Countries that import more than they export may struggle with imbalances in trade. ◉ Protectionism (Using Tariffs) Protectionism refers to economic policies that restrict imports through tariffs, quotas, or other barriers to shield domestic industries from foreign competition. ✅✅ Advantages of Tariffs Protects Local Jobs and Industries – Domestic businesses have a better chance to compete without being undercut by cheaper imports. Reduces Dependence on Foreign Competitors – A country can maintain its own manufacturing and production capabilities, especially in critical industries like steel, energy, and food. Generates Government Revenue – Tariffs provide a source of income for governments, which can be reinvested in public services. Prevents Dumping – Tariffs discourage foreign companies from flooding the market with artificially cheap goods to destroy domestic competition. ❌❌ Disadvantages of Tariffs Higher Prices for Consumers – Since imported goods are taxed, businesses pass the extra costs to customers. Risk of Trade Wars – When one country imposes tariffs, others retaliate, leading to economic conflicts that hurt all parties involved. Encourages Inefficiency – Without foreign competition, domestic companies may become complacent and innovate less. Disrupts Global Supply Chains – Many industries rely on international suppliers; tariffs can increase production costs and delays. ❇️ The Future of Tariffs in a Globalized World As economies become more interconnected, tariffs are often seen as barriers to global trade. Emerging industries, such as digital services, face new trade policy challenges that traditional tariffs do not cover. With globalization, many nations favor free trade agreements (FTAs) like USMCA and the EU single market to reduce trade barriers. Climate-related tariffs, such as carbon border taxes, may become more common as nations try to incentivize environmentally friendly trade practices. 📌 Closing Thoughts Tariffs remain one of the most powerful - and controversial - tools in economic policy. Like a thermostat for trade, they can be adjusted to protect domestic industries, but risk overheating the economy with unintended consequences. History shows that while tariffs can provide temporary relief for specific sectors, they often create ripple effects across the entire economy. The steel tariffs of 2018 helped some American mills reopen, but made cars and appliances more expensive for everyone. Neither free trade nor tariffs are perfect solutions. A balanced approach, where tariffs are selectively used for strategic industries while promoting open markets in others, is often the best path. Each country must decide based on its economic strengths and priorities. For example, developed nations might push for free trade, while developing nations use tariffs to protect growing industries. As trade policies continue evolving, understanding tariffs gives citizens and businesses crucial insight into how globalization affects prices, jobs, and economic security. The debate isn't about whether tariffs are "good" or "bad," but rather when and how they should be used strategically. What are your thoughts on the ongoing U.S. tariff war? Share your opinions in the comments! 📩
SP:SPXEducation
by johntradingwick
6
Understanding the Downside Market and who controls priceA downtrend starts with Dark Pool Buy Side Institutions slow rotation to lower inventory of a stock or ETF. The rotation bends the trend into a rounding pattern that is visible on the stock or ETF chart. The goal of the Dark Pool rotation is not to disturb the uptrend while they are slowly selling shares of stock over several months time. The bending of the price is a signal that the Dark Pools are in rotation. If a chart has Peaks and Valleys trendline pattern that is NOT Dark Pools. Controlled TWAP orders are automated and controlled by the events of that day. At some point professional traders and the Sell Side Institutions will recognize the hidden rotation and start setting up sell short trades. The upside requires more and more buyers to keep the trend moving upward. However, the downside does NOT require more and more sellers. All that is required is a void of buyers and the stock will start a downward correction on the short term or intermediate term trend. A void of buyers also creates the opportunity for High Frequency Trading companies who are Maker/Takers to sell short. The sell short orders fill the queues of the market before it opens and then the computers of the stock exchanges gap the stock down to a first level of some buyers. HFTs, Hedge Funds and Big Money Center Banks Sell short and place their automated buy to cover order way below causing the stock price to plummet. Then smaller funds VWAP orders trigger and the stock collapses. What I am trying to teach is the sell side and the buy side are totally different. They are NOT mirror images of each other.
AMEX:SPYShort
by MarthaStokesCMT-TechniTrader
24
Trump’s Tariffs & the Silent Setup — Why This Could Be Bigger ?Hello Traders 🐺 I hope you enjoyed yesterday’s Black Monday 😂 because honestly, it was brutal for all investors. But corrections like this are always necessary — and I want to talk about that in this idea with a bit more detail. Also, I’ll update you on the current situation of BTC.D, because as I told you in my last update, the market is about to create a bear trap on the BTC.D chart. I already shared the proof for this prediction before the dump — you can check it here: So now, let’s talk about the economic reason behind the dump, and then I’ll go over the technical side of the chart. This idea I’ll explain how we can use macroeconomic data in our trading decisions. So make sure to read it carefully and see how you can apply it to your strategy ✅ Do deep corrections always mean danger? Not necessarily. Let’s go back and remember some of the biggest crashes in financial history — The COVID dump or even the famous Black Monday. If you ask yourself now, “What was the smartest move back then?” You’ll probably say: Buy. Accumulate. Because that was the bottom — and we never saw those prices again. And guess what? The current state of the market is no different. So why do I believe Trump’s new tariff policy could actually be bullish? Let me break it down simply for you: 🔥 The Tariff War: Why it started For years, most countries had easy access to the U.S. consumer market — the largest in the world — with little or no tariffs. But U.S. manufacturers didn’t enjoy the same freedom when exporting abroad — they faced heavy tariffs, while also struggling with intense competition inside their own borders due to lack of import restrictions. So what happened? ✅ The new tariffs brought two key benefits: 1️⃣ Forced negotiations: Other countries now have to either remove or reduce their own export tariffs to keep trading with the U.S., or else they lose access to a market that’s extremely consumption-driven. 2️⃣ Advantage to U.S. domestic production: If foreign exporters lose access, U.S. producers finally get room to breathe, and can grow competitively inside their own market. 💰 What happened after tariff fears hit? In the past month, markets reacted with fear. A massive amount of capital flew out of financial markets and inflation-hedged assets, the dollar strengthened, and recession fears grew. But here’s the twist... What if Trump had started printing money before this shakeout? If liquidity was still high, printing more would’ve: Crushed the dollar Destroyed consumer buying power Sparked inflation again But right now, after money has already been squeezed out of markets and the dollar is strong, the Fed has a clean path to restart QE (quantitative easing) without tanking the dollar’s value. So what's next? Lower interest rates, stimulus packages, subsidies — all will likely come soon. This time, Trump can inject liquidity exactly where he wants it to go: Straight into U.S. industry, not into meme coins and junk assets. With fewer export tariffs, American factories will be more competitive, U.S. exports could rise, and the country will rely less on foreign production. And what does this mean for the markets? Simple. Once the Fed pivots back to easing, markets will react violently to the upside. So, as I always say: Don’t waste this opportunity. Use these prices wisely. now let's come back into the chart : As I told you before , BTC.D now is testing the blue monthly resistance line and also hit the rising wedge upward resistance line and in my opinion there is a big chance to see a massive bull market incoming... I hope you find this idea valuable and as always remember : 🐺 Discipline is rarely enjoyable , but almost always profitable 🐺 🐺 KIU_COIN 🐺
CRYPTOCAP:BTC.DEducation
by Kiu_Coin
34
Silver H4 | Heading into a pullback resistanceSilver (XAG/USD) is rising towards a pullback resistance and could potentially reverse off this level to drop lower. Sell entry is at 30.83 which is a pullback resistance. Stop loss is at 32.20 which is a level that sits above the 61.8% Fibonacci retracement and a pullback resistance. Take profit is at 28.80 which is a multi-swing-low support. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Stratos Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Europe Ltd (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Trading Pty. Limited (www.fxcm.com): Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com Stratos Global LLC (www.fxcm.com): Losses can exceed deposits. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third-party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
FX:XAGUSDShort
by FXCM
3
Careful Trusting "News" | Fake News TradingOn Monday, April 7th, 2025 amidst incredible market volatility, you'd expect your most trusted news outlet to report on-the-minute news. But most importantly, accurate news . With the markets down nearly 20% in ~4 trading days, every piece of information matters. But with the age of fast (social) media, news outlets will do anything possible to be the first to report. Even .... posting fake news. The way this works is they get news that's "probably true", they post it, then it's verified to be true. This may work often for them and when it doesn't, nobody really cares. But when you're talking about times of volatility unseen since COVID, all this nonsense gets exposed. So - at roughly 10:10 AM EST, CNBC reported that there will be a "90-day pause on tariffs". A ground-breaking report that likely caused John Doe to buy $10M in NASDAQ:NVDA calls dated end of July because that's a no-brainer right? It surely cannot be false since CNBC is his go-to trusted news-source and there is just NO WAY that they would ever post any news without being 100% true and verified. ESPECIALLY news about TARIFFS -- the talk of the town (psh, the world actually) at the moment. 90 day pause? That's not something you report lightly. You know the ripple effect that'll have on the markets. Result of that news report? The markets (e.g. CME_MINI:NQ1! ) jumped 6.60% in under 10 minutes. Jane Doe likely saw that jump, looked at that news, and rebought her shares that she sold at the bottom earlier this morning. Surely that news cannot be fake. It's a 90-day tariff pause. That's huge. Surely the White House will see "Yeah baby! We take credit for that". Nope, at roughly 10:18 AM EST, the same CNBC reported that, "the 90-day pause on tariffs was fake news according to the White House". Results? Market right back down -6.5% in 20 minutes. Suppose you FOMO'd into AMEX:SPY NASDAQ:QQQ calls.. well, you lost almost everything depending on the strike and date. In this market, manage your RISK and always hedge. Don't forget to thank CNBC, your most trusted news-source for that capital gain loss. Welcome to trading in 2025. The age of report-first, verify-later. Welcome home. Be careful listening to the news and take everything they say with a grain of salt. And as always, don't chase the news. KD out.
CME_MINI:NQ1!Education
by kingdips
13
Fundamental V Technical Analysis, who will win? SELL GOLD?All the information you need to find a high probability trade are in front of you on the charts so build your trading decisions on 'the facts' of the chart NOT what you think or what you want to happen or even what you heard will happen. If you have enough facts telling you to trade in a certain direction and therefore enough confluence to take a trade, then this is how you will gain consistency in you trading and build confidence. Check out my trade idea!! www.tradingview.com
FOREXCOM:XAUUSDShort
by Simply-Forex
16
US Stocks Wipe Out $6.6 Trillion in Two Days—What Just Happened?Shoutout to the real MVPs of April: the traders who did absolutely nothing. You market wizards, zen masters of the sidelines — while others were busy buying the dip that kept on dipping, you outperformed the S&P 500 SP:SPX , avoiding the nastiest market faceplant since the Covid crash of March 2020. Since April 2, Liquidation Day , Liberation Day , the S&P 500 SP:SPX has nosedived a brutal 10%. That’s officially a correction — the kind that makes you stare out your window like a philosopher, questioning your life choices, your portfolio, and whether you really needed that Nvidia NASDAQ:NVDA call. This isn’t just a dip. It’s a market reality check served with extra salt. So raise a (half empty?) glass to the ones who stayed flat — you just made Warren Buffett proud . In a world of overtrading, doing nothing was the most alpha move of all. Everyone who checked the market at least once on Thursday or Friday (even today when futures markets were all red ) knows what that is all about. It’s Trump’s tariff rollout coming like a wrecking ball. While the US President portrays his efforts as a fair and even lenient response to other countries’ trade policies with the US, investors don't seem to think so. In just two days, Thursday and Friday, the US stock market washed out $6.6 trillion. The violent selloff threw the Nasdaq Composite NASDAQ:IXIC into a bear market (down 20% from its peak) and the S&P 500 into correction territory. The broad-based Wall Street darling waved goodbye to 6% on Friday, extending its 4.8% loss from the previous day. On Thursday, Trump unveiled his new plan to boost the US economy through reciprocal tariffs. China got hammered with a total of 54% , while Europe wasn’t spared either, slapped with a flat 20%. Some uninhabited islands also made the list — Heard and McDonald Islands (Australia's icy outpost) and Jan Mayen (Norway's frozen Arctic rock) got served a 10% tariff. Now, the thing with tariffs is, they tend to backfire. Because they are paid by the party receiving them, i.e. US companies, they hike the prices of imported goods, squeeze consumers, and isolate the country imposing them. They strain international trade relationships, disrupt supply chains, and — as history shows — often spark retaliation. And that’s exactly what happened. On Friday, China hit back hard, launching a 34% tariff barrage on US imports — a sharp counter-strike against Trump’s escalating trade war tactics. What did Trump say on the matter? “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!” he said on his social media platform. Just as the markets were a dumpster fire on Friday, Federal Reserve boss Jay Powell gave a speech at a business journalists' conference. In his remarks, he said that Trump’s tariffs would cause “higher inflation and slower growth.” “It is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects,” Powell said. Trump's response? “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly,” Trump wrote in a post. “Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months - A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” So here we are — $6.6 trillion lighter, futures in free fall, inflation fears reignited, and a full-blown trade war back on the table. The Fed’s caught in a political crossfire, Trump’s turning up the heat, and markets are flashing every red light imaginable. On top of it all, corporate earnings are just around the corner with the big banks on Wall Street kicking off the first-quarter reporting at the end of this week. Keep track of all big reports in the Earnings Calendar . One thing’s for sure: this isn’t the time to trade on hope or headlines. It’s the time to trade with eyes wide open, risk tightly managed, and a clear understanding that your next move could shape the rest of your year. Most of all, don’t panic . Off to you now: are you sitting this one out like Buffett — or are you moving in before the smoke clears?
SP:SPX
by TradingView
46
Position Sizing StrategiesPosition sizing is one of the most important aspects in risk management for traders. Proper position sizing helps manage the risk effectively by maximizing profits and limiting the losses. In this publication, we will explore popular position sizing strategies and how to implement them in pinescript strategies 🎲 Importance of Position Sizing in Trading Let's take an example to demonstrate the importance of position sizing. You have a very good strategy that gives you win on 70% of the times with risk reward of 1:1. If you start trading with this strategy with all your funds tied into a single trade, you have the risk of losing most of your fund in the first few trades and even with 70% win rate at later point of time, you may not be able to recoup the losses. In such scenarios, intelligent position sizing based on the events will help minimize the loss. In this tutorial, let us discuss some of those methods along with appropriate scenarios where that can be used. 🎲 Position Sizing Strategies Available in Tradingview Strategy Implementation 🎯 Fixed dollar amount position sizing In this method, trader allocate a fixed value of X per trade. Though this method is simple, there are few drawbacks Does not account for varying equity based on the trade outcomes Does not account for varying risk based on the volatility of the instrument 🎯 Fixed Percentage of Equity In this method, percent of equity is used as position size for every trade. This method is also simple and slightly better than the Fixed dollar amount position sizing. However, there is still a risk of not accounting for volatility of the instrument for position sizing. In tradingview strategies, you can find the position sizing settings in the properties section. In both cases, Pinescript code for the entry does not need to specify quantity explicitly, as they will be taken care by the framework. if(longEntry) strategy.entry('long', strategy.long) if(shortEntry) strategy.entry('short', strategy.short) 🎲 Advanced Position Sizing Strategies There are not directly supported in Tradingview/Pinescript - however, they can be programmed. 🎯 Fixed Fractional Method The Fixed Fractional Method is similar to the fixed percentage of equity method/fixed dollar amount positioning method, but it takes into account the amount of risk on each trade and calculate the position size on that basis. This method calculates position size based on the trader’s risk tolerance, factoring in stop-loss levels and account equity. Due to this, the trader can use any instrument and any timeframe with any volatility with fixed risk position. This means, the quantity of overall trade may vary, but the risk will remain constant. Example. Let's say you have 1000 USD with you and you want to trade BTCUSD with entry price of 100000 and stop price of 80000 and target of 120000. You want to risk only 5% of your capital for this trade. Calculation will be done as follows. Risk per trade = 5% of 1000 = 50 USD Risk per quantity = (entry price - stop price) = 20000 So, the quantity to be used for this trade is calculated by RiskQty = Risk Amount / Risk Per Quantity = 50 / 20000 = 0.0025 BTC To implement the similar logic in Pinescript strategy by using the strategy order quantity as risk, we can use the following code riskAmount = strategy.default_entry_qty(entryPrice)*entryPrice riskPerQty = math.abs(entryPrice-stopPrice) riskQty = riskAmount/riskPerQty With this, entry and exit conditions can be updated to as follows if(longEntry) strategy.entry('long', strategy.long, riskQty, stop=entryPrice) strategy.exit('ExitLong', 'long', stop=stopPrice, limit=targetPrice) if(shortEntry) strategy.entry('short', strategy.short, riskQty, stop=entryPrice) strategy.exit('ExitShort', 'short', stop=stopPrice, limit=targetPrice) 🎯 Kelly Criterion Method The Kelly Criterion is a mathematical formula used to determine the optimal position size that maximizes the long-term growth of capital, considering both the probability of winning and the payoff ratio (risk-reward). It’s a more sophisticated method that balances risk and reward in an optimal way. Kelly Criterion method needs a consistent data on the expected win ratio. As and when the win ratio changes, the position sizing will adjust automatically. Formula is as follows f = W - L/R f: Fraction of your capital to bet. W : Win Ratio L : Loss Ratio (1-W) R : Risk Reward for the trade Let's say, you have a strategy that provides 60% win ratio with risk reward of 1.5, then the calculation of position size in terms of percent will be as follows f = 0.6 - 0.4/1.5 = 0.33 Pinescript equivalent of this calculation will be riskReward = 2 factor = 0.1 winPercent = strategy.wintrades/(strategy.wintrades+strategy.losstrades) kkPercent = winPercent - (1-winPercent)/riskReward tradeAmount = strategy.equity * kkPercent * factor tradeQty = tradeAmount/entryPrice 🎲 High Risk Position Sizing Strategies These strategies are considered very high risk and high reward. These are also the strategies that need higher win ratio in order to work effectively. 🎯Martingale Strategy The Martingale method is a progressive betting strategy where the position size is doubled after every loss. The goal is to recover all previous losses with a single win. The basic idea is that after a loss, you double the size of the next trade to make back the lost money (and make a profit equal to the original bet size). How it Works: If you lose a trade, you increase your position size on the next trade. You keep doubling the position size until you win. Once you win, you return to the original position size and start the process again. To implement martingale in Pine strategy, we would need to calculate the last consecutive losses before placing the trade. It can be done via following code. var consecutiveLosses = 0 if(ta.change(strategy.closedtrades) > 0) lastProfit = strategy.closedtrades.profit(strategy.closedtrades-1) consecutiveLosses := lastProfit > 0? 0 : consecutiveLosses + 1 Quantity can be calculated using the number of consecutive losses qtyMultiplier = math.pow(2, consecutiveLosses) baseQty = 1 tradeQty = baseQty * qtyMultiplier 🎯Paroli System (also known as the Reverse Martingale) The Paroli System is similar to the Anti-Martingale strategy but with more defined limits on how much you increase your position after each win. It's a progressive betting system where you increase your position after a win, but once you've won a set number of times, you reset to the original bet size. How it Works: Start with an initial bet. After each win, increase your bet by a predetermined amount (often doubling it). After a set number of wins (e.g., 3 wins in a row), reset to the original position size. To implement inverse martingale or Paroli system through pinescript, we need to first calculate consecutive wins. var consecutiveWins = 0 var maxLimit = 3 if(ta.change(strategy.closedtrades) > 0) lastProfit = strategy.closedtrades.profit(strategy.closedtrades-1) consecutiveWins := lastProfit > 0? consecutiveWins + 1 : 0 if(consecutiveWins >= maxLimit) consecutiveWins := 0 The quantity is then calculated using a similar formula as that of Martingale, but using consecutiveWins qtyMultiplier = math.pow(2, consecutiveWins) baseQty = 1 tradeQty = baseQty * qtyMultiplier 🎯D'Alembert Strategy The D'Alembert strategy is a more conservative progression method than Martingale. You increase your bet by one unit after a loss and decrease it by one unit after a win. This is a slow, incremental approach compared to the rapid growth of the Martingale system. How it Works: Start with a base bet (e.g., $1). After each loss, increase your bet by 1 unit. After each win, decrease your bet by 1 unit (but never go below the base bet). In order to find the position size on pinescript strategy, we can use following code // Initial position initialposition = 1.0 var position = initialposition // Step to increase or decrease position step = 2 if(ta.change(strategy.closedtrades) > 0) lastProfit = strategy.closedtrades.profit(strategy.closedtrades-1) position := lastProfit > 0 ? math.max(initialposition, position-step) : position+step Conclusion Position sizing is a crucial part of trading strategy that directly impacts your ability to manage risk and achieve long-term profitability. By selecting the appropriate position sizing method, traders can ensure they are taking on an acceptable level of risk while maximizing their potential rewards. The key to success lies in understanding each strategy, testing it, and applying it consistently to align with your risk tolerance and trading objectives.
TRADENATION:BTCUSDEducation
by Trendoscope
8
RSI 101: Scalping Strategy with RSI DivergenceFX:XAUUSD I'm an intraday trader, so I use the H1 timeframe to identify the main trend and the M5 timeframe for entry confirmation. How to Determine the Trend To determine the trend on a specific timeframe, I rely on one or more of the following factors: 1. Market Structure We can determine the trend by analyzing price structure: Uptrend: Identified when the market consistently forms higher highs and higher lows. This means price reaches new highs in successive cycles. Downtrend: Identified when the market consistently forms lower highs and lower lows. Price gradually declines over time. 2. Moving Average I typically use the EMA200 as the moving average to determine the trend. If price stays above the EMA200 and the EMA200 is sloping upwards, it's considered an uptrend. Conversely, if price is below the EMA200 and it’s sloping downwards, it signals a downtrend. 3. RSI I'm almost use RSI in my trading system. RSI can also indicate the phase of the market: If RSI in the 40–80 range, it's considered an uptrend. If RSI in 20 -60 range, it's considered a downtrend. In addition, the WMA45 of the RSI gives us additional trend confirmation: Uptrend: WMA45 slopes upward or remains above the 50 level. Downtrend: WMA45 slopes downward or stays below the 50 level. Trading Strategy With this RSI divergence trading strategy, we first identify the trend on the H1 timeframe: Here, we can see that the H1 timeframe shows clear signs of a new uptrend: Price is above the EMA200. RSI is above 50. WMA45 of RSI is sloping upward. To confirm entries, move to the M5 timeframe and look for bullish RSI divergence, which aligns with the higher timeframe (H1) trend. RSI Divergence, in case you're unfamiliar, happens when: Price forms a higher high while RSI forms a lower high, or Price forms a lower low while RSI forms a higher low. RSI divergence is more reliable when the higher timeframe trend remains intact (as per the methods above), indicating that it’s only a pullback in the bigger trend, and we’re expecting the smaller timeframe to reverse back in line with the main trend. Stop-loss: Set your stop-loss 20–30 pips beyond the M5 swing high/low. Or if H1 ends its uptrend and reverses. Take-profit: At a minimum 1R (risk:reward). Or when M5 ends its trend. You can take partial profits to optimize your gains: Take partial profit at 1R. Another part when M5 ends its trend. The final part when H1 ends its trend. My trading system is entirely based on RSI, feel free to follow me for technical analysis and discussions using RSI.
FX:XAUUSDEducation
by dangtunglam14
7
Spy.. Where we standSoo... I will go in detail for you so you can see where my POV comes from.. A summary of this post is a bounce. Back to 525-530 and then a possible new low to 470.. Let's start on the monthly time frame.. I will show you the chart regular then I will show you log scale (Logarithmic). AMEX:SPY regular Price is nearing a 5yr trend support That support is at 495-500. There's a gap at 495 to close from April 19th 2024.. I would say if we were to gap down Monday below 500.00 that's where they will take this before buying it back up to 510. Now do I think the correction Is over here at this trendline support? I'm leaning at it's a 70% chance we will break this support before End of May. Why? Because of the sectors.. XLC and XLF is promising more pain to come.. imagine Spy as a car, the sectors are the important parts to keep things in motion . I'll get to the sectors later but let's stick with spy.. Now here's a monthly chart again but this time Log scale As you can see with exception of the Covid crash spy has pretty much channel traded this the last 14yr bull run Let's zoom in As you can see, the bottom of this channel is around 2021 high 477. So I think Spy is headed there before End of May , it could happen sooner but you have to factor in A rally and i don't know how long that can last. Also NASDAQ:QQQ monthly chart log scale is showing similar outlook Zoomed in NASDAQ:QQQ Lastly TVC:NYA Monthly log scale Same as Qqq and spy, headed back to 2021 high NYA no log scale So I've showed you the indexes now I will show you AMEX:XLF (Financials) and AMEX:XLC (Meta, NFLX) Here's XLF price is headed back to trendline support 38-39.00 by end of May; that's another 10% drop which supports my theory that spy will tag 470 Zoomed in XLF Monthly 50sma aligns with trendline support so that's your target. I think any bounce on banks going into earnings should be faded! XLC I can't hammer on the table hard enough about how much pain is coming for this sector and it's tech stocks.. compared to the other sectors this hasn't even got started with the selling when looking at its monthly RSI and MFI. Friday price stopped right at its previous ATH we are headed back to 82.00 which is another 8% drop on this sector, if 82 doesn't hold them , 60 comes next.. If you OWN meta on NFLX I hope you have a 5yr outlook because there will be pain .. Now let's get into the bounce, I think a nice bounce comes next week as long as spy opens Monday above 495.00 When it comes to being oversold one of the most reliable tools I like to use is the PRICE RANGE tool with 20sma. When you look at spy, you'll notice that in a normal market it usually moves between 2½-3½% from it's 20sma. As of Friday's close we are 10% away from it's 20sma This type of extension is extreme Below I will post the last time spy was over 8% extended from it's 20sma and you can see what happened the next few sessions June 17th 2022 Jan 24th 2022 June 8th 2020 March 2020 Covid crash Dec 2024 2018 So in the last 7yrs spy has on dropped more that 8% from it's 20sma 5 times and with the exception of the Covid crash 10% extension was the area where you saw price Rallied back within days to retest the 20sma. So that places us bouncing this week. Now the 20sma is fluid so even though the 20 is at 559 right now depending on how long spy takes to get there the 20ma could gravitate lower I think 536 gap close minimum comes before we break below 495. I will update this more tomorrow.. this right up took awhile
AMEX:SPY
by ContraryTrader
30
SPX500 & Nasdaq: Confluence! Confluence! Confluence!With consumer confidence off at circuit breaking levels, the market, technically, has reached extreme levels of support. Let's look at it: Technicals: (1) Horizontal Levels of support (2) 50%/61.8% fib confluence (3) exDiv1 (4) extreme indicators (5) Chikou span testing cloud support (6) 28% drop is SPX All of these levels are lining up around the same location. And just like in real estate "Location! Location! Location!" is the adage; in markets, "Confluence! Confluence! Confluence!" is the adage!
FX:SPX500Long
by Rocketman
13
Skirt Lengths as Market Indicators: A Socionomics PerspectivePart of the #Socionomics series. How fashion and societal moods shifted in the first half of the 20th century. 1900–1910 Economy: The rise of industrialization in the U.S. — Ford’s assembly line (1908), booming cities, and a growing wealth gap between the elite and the working class. In Europe, colonial powers raced for survival, fueling military spending (sound familiar?). Mood: Faith in technological progress clashed with protests against exploitation. Suffragettes smashed London storefronts (1908), while New York’s Triangle Shirtwaist Factory fire (1911) galvanized labor rights movements. Fashion: Rigid corsets and floor-length skirts symbolized Victorian morality. Yet rebels like designer Paul Poiret introduced hobble skirts — a tentative step toward freedom of movement. 1910–1920 Economy: World War I (1914–1918) reshaped the globe: Europe lay in ruins, while the U.S. profited from arms sales. Postwar hyperinflation crippled Germany, and the Spanish Flu (1918–1920) claimed millions. Mood: Women replaced men in factories, only to be pushed back into domestic roles after the war. A feminist explosion: American women won voting rights in 1920. Fashion: Skirts rose to ankle-length for practicality. By the decade’s end, the flapper emerged — straight-cut dresses, beaded necklaces, and cigarettes in hand, defying tradition. A sign of the stock market’s brewing boom. 1920–1929 Economy: The "Roaring Twenties" — jazz, speculation, and Prohibition. The stock market quadrupled; ordinary Americans borrowed heavily to invest, then borrowed again against rising shares. Mood: Hedonism reigned. Speakeasies and Gatsby-esque parties masked pre-crash euphoria. Fashion: Knees on display! Fringed dresses, bobbed haircuts, and gartered stockings. By 1929, subdued silhouettes crept in — an omen of crisis. 1930–1940 Economy: The 1929 bubble burst: Wall Street crashed, triggering the Great Depression (1929–1939). U.S. unemployment hit 25%. Europe veered toward fascism and war. Mood: Despair from Dust Bowl migrations and hunger marches. Yet Hollywood’s Golden Age offered escapism. Fashion: Skirts lengthened — modesty returned. Long dresses dominated, while cheap fabrics and turbans (to hide unwashed hair) became staples. 1940–1950 Economy: World War II (1939–1945). Postwar Europe rebuilt via the Marshall Plan; the U.S. embraced consumerism. Mood: Patriotism ("Rosie the Riveter") and postwar hope. The baby boom idealized domesticity. Fashion: War mandated minimalism: knee-length skirts and padded shoulders. In 1947, Christian Dior’s New Look rebelled — voluminous ankle-length skirts symbolized postwar opulence. 1950–1960 Economy: America’s "Golden Fifties" — middle-class expansion, cars, and TV. Europe recovered, but colonial wars (Algeria, Vietnam) exposed crises. Mood: Conformity (suburban perfection) vs. teenage rebellion (James Dean, Elvis’s rock ‘n’ roll). Fashion: Sheath dresses and midi skirts emphasized femininity. By the late 1950s, Mary Quant experimented with mini-skirts — a harbinger of the sexual revolution. 1960s: Peak of Postwar Prosperity Economy: U.S. GDP grew 4-5% annually; unemployment dipped below 4%. Baby boomers (1946–1964) fueled suburban housing and education demand. Fashion: The mini-skirt became an era-defining manifesto of freedom, paired with bold go-go boots. Economic optimism bred experimentation: neon synthetics (nylon, Lycra) and psychedelic hues. Conclusion Women’s fashion mirrors its era. Crises (1930s) hide knees; liberating times (1920s, 1960s) bare them. Even war skirts (1940s’ knee-length pragmatism) carried hope. 💡 Like and subscribe for insights your economics textbook won’t reveal! #beginners #learning_in_pulse #interesting #socionomics #history #fashiontrends
TVC:DJIEducation
by Fomenka
11
Bonds Don’t Lie: The Signal is ClearU.S. 10-year Treasuries are a crucial cog in the global financial machine, serving as a benchmark borrowing rate, a tool for asset valuation, and a gauge of the longer-term outlook for U.S. economic growth and inflation. As such, I keep a close eye on 10-year note futures, as they can offer clues on directional risks for bond prices and yields. The price action over the past few days has sent a clear and obvious signal as to where the risks lie: prices higher, yields lower. Futures had been grinding lower within a falling wedge for several weeks but broke higher last Friday on decent volumes following soft U.S. household spending data. It has since extended bullish the move, reclaiming the 200-day moving average before surging above key resistance at 115’09’0 after Trump’s reciprocal tariff announcement on Wednesday. RSI (14) is trending higher but isn’t yet overbought, while MACD has crossed the signal line above 0, confirming the bullish momentum signal. That favours further upside, putting resistance at 116’11’0 and 118’12’0 on the immediate radar. For those who prefer it expressed in yield terms, that’s around 4% and 3.8% respectively. Good luck! DS
CBOT:TN1!Education
by FOREXcom
9
Understanding MACD In TradingThe Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that measures the relationship between two moving averages of an asset’s price. Developed by Gerald Appel in the late 1970s, MACD is designed to provide insights into both trend strength and momentum. Unlike simple moving averages, which merely smooth price data over a specific period, MACD goes a step further by identifying when short-term momentum is shifting in relation to the long-term trend. This makes it a valuable tool for traders looking to enter or exit positions at optimal points. 1. Why is MACD important in trading? Trend Confirmation: Identifies whether an asset is in an uptrend or downtrend. Momentum Strength: Measures how strong a price movement is. Reversal Signals: Detects potential changes in trend direction. Entry and Exit Points: Helps traders determine when to buy and sell. 2. MACD Components The MACD Line: Identifies whether an asset is in an uptrend or downtrend. This line is derived by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. When the MACD Line is positive, it indicates bullish momentum; when negative, it suggests bearish momentum. The Signal Line: Measures how strong a price movement is. A 9-period EMA of the MACD Line. It smooths out MACD fluctuations, making it easier to identify crossovers. The Histogram: Detects potential changes in trend direction. The difference between the MACD Line and the Signal Line. A positive histogram suggests increasing bullish momentum, while a negative histogram suggests growing bearish momentum. 3. MACD Formula The Moving Average Convergence Divergence (MACD) is one of the most widely used technical indicators in trading. It helps traders identify trends, momentum shifts, and potential buy or sell opportunities by analyzing the relationship between two moving averages. By calculating the difference between a short-term and long-term exponential moving average (EMA), MACD provides insight into market direction and strength. //@version=6 indicator("MACD Indicator", overlay=false) // MACD parameters shortLength = 12 longLength = 26 signalLength = 9 // Calculate MACD macdLine = ta.ema(close, shortLength) - ta.ema(close, longLength) signalLine = ta.ema(macdLine, signalLength) histogram = macdLine - signalLine // Plot MACD components plot(macdLine, color=color.blue, title="MACD Line") plot(signalLine, color=color.red, title="Signal Line") plot(histogram, color=color.green, style=plot.style_columns, title="Histogram") Explanation: Short EMA (12-period) and Long EMA (26-period) are calculated. The MACD Line is the difference between these EMAs. A Signal Line (9-period EMA of MACD Line) is calculated. The Histogram represents the difference between the MACD Line and the Signal Line. 4. Interpreting MACD signals MACD Crossovers A crossover occurs when the MACD Line and Signal Line intersect: Bullish Crossover: When the MACD Line crosses above the Signal Line, it signals a potential uptrend and a buying opportunity. Bearish Crossover: When the MACD Line crosses below the Signal Line, it suggests a potential downtrend and a selling opportunity. MACD Divergences Divergences occur when MACD moves in the opposite direction of the price, signaling a potential reversal: Bullish Divergence: If price makes lower lows, but MACD makes higher lows, it suggests weakening downward momentum and a possible bullish reversal. Bearish Divergence: If price makes higher highs, but MACD makes lower highs, it signals weakening upward momentum and a potential bearish reversal. Histogram Interpretation The MACD histogram visually represents momentum shifts: When bars are increasing in height, momentum is strengthening. When bars shrink, it suggests momentum is weakening. Zero Line Crossings The MACD crossing the zero line indicates momentum shifts: MACD crossing above zero → Bullish trend initiation. MACD crossing below zero → Bearish trend initiation. 5. Trend & Momentum Analysis Traders use MACD to confirm trends and analyze market momentum: If MACD Line is above the Signal Line, an uptrend is in place. If MACD Line is below the Signal Line, a downtrend is dominant. A widening histogram confirms strong momentum in the trend’s direction. A narrowing histogram warns of potential trend weakening. MACD works best in trending markets and should be used cautiously in sideways markets. 6. MACD Based Trading Strategies Entry Strategies Buy when MACD Line crosses above the Signal Line in an uptrend. Sell when MACD Line crosses below the Signal Line in a downtrend. Exit Strategies Exit long trades when a bearish crossover occurs. Close short positions when a bullish crossover occurs. Position Management If the histogram is expanding, traders can hold positions. If the histogram is contracting, it may signal weakening momentum. 7. Limitations of MACD While MACD is a powerful tool, traders must consider: It lags behind price movements (since it is based on moving averages). It can generate false signals in choppy markets. Customization is required to suit different trading styles. 8. Optimization Optimizing MACD for Different Market Conditions Day Traders & Scalpers: Use faster settings like (5, 13, 6) for quick signals. Swing Traders: Stick with the default (12, 26, 9) setting for balanced signals. Long-Term Investors: Use slower settings like (24, 52, 18) for a broader market perspective. 9. Key Takeaways MACD is a momentum and trend-following indicator that helps traders identify market direction, strength, and potential reversals. Since MACD is a lagging indicator, it may generate false signals, especially in sideways markets. Combining MACD with RSI, moving averages, and volume indicators improves accuracy and reduces risk. MACD should be used alongside risk management strategies and other confirmation tools for best results. MACD remains one of the most effective technical indicators, widely used across different markets. It helps traders identify trends, confirm momentum, and optimize trade entries and exits. However, it should always be used with additional tools to minimize false signals. Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
CME_MINI:ES1!Education
by CandelaCharts
14
$100, $1,000, $100,000 — When Numbers Become Turning PointsHey! Have you ever wondered why 100 feels... special? 🤔 Round numbers are like hidden magnets in the market. 100. 500. 1,000. They feel complete. They stand out. They grab our attention and make us pause. In financial markets, these are the levels where price often slows down, stalls, or makes a surprising turn. I’ll admit, once I confused the market with real life. I hoped a round number would cause a reversal in any situation. Like when I stepped on the scale and saw a clean 100 staring back at me, a level often known as strong resistance. I waited for a bounce, a sudden reversal... but nothing. The market reacts. My body? Not so much. 🤷‍♂️ The market reacts. But why? What makes these numbers so powerful? The answer lies in our minds, in market dynamics, and in our human tendency to crave simplicity. ------------------------------------- Psychology: Why our brain loves round numbers The human mind is designed to create structure. Round numbers are like lighthouses in the chaos — simple, memorable, and logical. If someone asks how much your sofa cost, you’re more likely to say "a grand" than "963.40 dollars." That’s normal. It’s your brain seeking clarity with minimal effort. In financial markets, round numbers become key reference points. Traders, investors, even algorithms gravitate toward them. If enough people believe 100 is important, they start acting around that level — buying, selling, waiting. That belief becomes reality, whether it's rational or not. We anchor decisions to familiar numbers because they feel safe, clean, and "right." Walmart (WMT) and the $100 mark Round numbers also carry emotional weight. 100 feels like a milestone, a finish line. It’s not just a number, it’s both an ending and a beginning. ------------------------------------- Round numbers in the market: Resistance and support Round number as a resistance Imagine a stock climbing steadily: 85, 92, 98... and then it hits 100. Suddenly, it stalls. Why? Investors who bought earlier see 100 as a "perfect" profit point. "A hundred bucks. Time to sell." Many pre-set sell orders are already waiting. Most people don’t place orders at $96.73. They aim for 100. A strong and symbolic. At the same time, speculators and short sellers may step in, viewing 100 as too high. This creates pressure, slowing the rally or pushing the price back down. If a stock begins its journey at, say, $35, the next key round levels for me are: 50, 100, 150, 200, 500, 1,000, 2,000, 5,000, 10,000… Slide from my training materials These levels have proven themselves again and again — often causing sideways movement or corrections. When I recently reviewed the entire S&P 500 list, for example $200 showed up consistently as a resistance point. It’s pure psychology. Round numbers feel "high" — and it's often the perfect moment to lock in profits and reallocate capital. Bitcoin at $100,000. Netflix at $1,000. Tesla at $500. Walmart at $100. Palantir at $100. These are just a few recent examples. Round number support: A lifeline for buyers The same logic works in reverse. When price falls through 130, 115, 105... and lands near 100, buyers often step in. "100 looks like a good entry," they say. It feels like solid ground after a drop. We love comeback stories. Phoenix moments. Underdogs rising. Buy orders stack up and the price drop pauses. Some examples: Meta Platforms (META) Amazon.com (AMZN) — $100 acted as resistance for years, then became support after a breakout Tesla (TSLA) ------------------------------------- Why round numbers work for both buyers and sellers Buyers and the illusion of a bargain If a stock falls from 137 to 110 and approaches 100, buyers feel like it’s hit bottom. Psychologically, 100 feels cheap and safe. Even if the company’s fundamentals haven’t changed, 100 just "feels right." It’s like seeing a price tag of $9.99 — our brain rounds it down and feels like we got an epic deal. Sellers and the "perfect" exit When a stock rises from 180 to 195 and nears 200, many sellers place orders right at 200. "That’s a nice round number, I’ll exit there." There’s emotional satisfaction. The gain feels cleaner, more meaningful, when it ends on a round note. To be fair, I always suggest not waiting for an exact level like 200. If your stock moved through 145 > 165 > 185, don’t expect perfection. Leave room. A $190 target zone makes more sense. Often, greed kills profit before it can be realized. Don’t squeeze the lemon dry. Example: My Tesla analysis on TradingView with a $500 target — TESLA: Money On Your Screen 2.0 | Lock in Fully… Before & After: As you see there, the zone is important, not the exact number. ------------------------------------- Round numbers in breakout trades When price reaches a round number, the market often enters a kind of standoff. Buyers and sellers hesitate. The price moves sideways, say between 90 and 110. Psychologically, it’s a zone of indecision. The number is too important to ignore, but the direction isn’t clear until news or momentum pushes it. When the direction is up and the market breaks above a key level, round numbers work brilliantly for breakout trades or strength-based entries. Slide from my training materials People are willing to pay more once they see the price break through a familiar barrier. FOMO kicks in. Those who sold earlier feel regret and jump back in. And just like that, momentum builds again — until the next round-number milestone. Berkshire Hathaway (BRK.B) — every round number so far has caused mild corrections or sideways action. I’d think $500 won’t be any different. ------------------------------------- Conclusion: Simplicity rules the market Round numbers aren’t magic. They work because we, the people, make the market. We love simplicity, patterns, and emotional anchors. These price levels are where the market breathes, pauses, thinks, and decides. When you learn to recognize them, you gain an edge — not because the numbers do something, but because crowds do. A round number alone is never a reason to act. If a stock drops to 100, it doesn’t mean it’s time to buy. No single number works in isolation. You need a strategy — a set of supporting criteria that together increase the odds. Round numbers are powerful psychological levels, but the real advantage appears when they align with structure and signals. Keep round numbers on your radar. They’re the market’s psychological mirror, and just like us, the market loves beautiful numbers. If this article made you see price behavior differently, or gave you something to think about, feel free to share it. 🙌 So, that's it! A brief overview and hopefully, you found this informative. If this article made you see price behavior differently, or gave you something to think about, feel free to share it & leave a comment with your thoughts! Before you leave - Like & Boost if you find this useful! 🚀 Trade smart, Vaido
NASDAQ:TSLAEducation
by VaidoVeek
11
EDUCATION: The $5 Drop: How Trump’s Tariffs Sent Oil TumblingOil markets don’t move in a vacuum. Politics, trade wars, and global economic shifts all play a role in price action. Case in point: the recent $5 drop in oil prices following Trump’s latest tariff announcement. What Happened? Markets reacted swiftly to Trump’s renewed push for tariffs, targeting key trading partners. The result? A ripple effect that sent oil prices tumbling as traders anticipated lower global demand. The logic is simple—higher tariffs slow trade, slowing trade weakens economies, and weaker economies use less oil. Why It Matters to Traders For traders, this kind of volatility is both an opportunity and a risk. Sharp price drops like this shake out weak hands while rewarding those who position themselves with clear strategies. If you trade crude oil, understanding the macro picture—beyond just supply and demand—can make or break your positions. The Next Move Is this just a knee-jerk reaction, or the start of a larger trend? Smart traders are watching key levels, tracking institutional order flow, and looking for confirmation before making their next move. How do you react when headlines move the market? Do you panic, or do you position yourself with a plan? Drop a comment and let’s talk strategy.
Education
by TLTurnerTV
11
Is 5,700 the New 6,000?The S&P 500 has struggled recently, and some traders may see risk of further downside. The first pattern on today’s chart is the three-day jump above 5,700 early last week. The move peaked around the January low of 5,773. It also represented a false breakout above the November low of 5,696.50. In other words, two former support levels have emerged as new resistance. It’s also reminiscent of the price action in January and February, when failure to hold 6,000 triggered selling. Next, last week’s high occurred at the 200-day simple moving average. That may suggest the longer-term uptrend has ended. Third, the 8-day exponential moving average (EMA) has remained below the 21-day EMA. That may indicate that a shorter-term downtrend has begun. Finally, given the weakening momentum, traders may start eyeing longer-term levels for potential support. One potential spot could be the September low of 5,403, followed by the August trough of 5,119. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
SP:SPX
by TradeStation
6
ETHEREUM at Major Support: Bullish Rally Incoming?COINBASE:ETHUSD is on the verge of a major move. The price has reached a key support level that has historically triggered strong buying interest. This zone has acted as a demand area multiple times, increasing the likelihood of a bullish reaction if buyers step in once again. The market structure suggests that a confirmed bounce from this level could ignite a significant recovery. If bulls hold the support, the first upside target is $2,400, which represents a logical target for this setup. However, a sustained breakout beyond $2,400 could mark the beginning of a stronger rally, fueled by renewed buying momentum and increasing volume. Given the prolonged bearish move leading into this setup, a retracement here could turn into a larger trend shift. However, a clean breakdown below support would invalidate this bullish bias and open the door for further downside. 🚀 If this rally takes off, we could see COINBASE:ETHUSD reclaiming higher levels in the coming weeks. What are your thoughts? Drop them in the comments! 🚀
COINBASE:ETHUSDLong
by DanieIM
212