AMP Futures - Tune bar replay with adjustable intervalsIn this video we will demonstrate how to adjust time intervals using Market replay.
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Chart Patterns That Keep Showing Up (Are Traders Predictable?)In the grand theater of financial markets, traders often fancy themselves as rational actors, making decisions based on cold, hard data. Yet, time and again, their collective behavior etches familiar patterns onto price charts, as if choreographed by an unseen hand (the Invisible Hand?)
All across the world economy , markets trade in patterns. The trick is to spot those patterns before they unfold.
These recurring formations, known as chart patterns, are a testament to the predictability of human psychology in trading. Let's rediscover some of these enduring patterns, exploring why they persist and how you can leverage them.
🚿 The Head and Shoulders: More Than a Shampoo Brand
Imagine a market trend as a partygoer who's had one too many. Initially, they're lively (the left shoulder), then they reach peak status of euphoria (the head), but eventually, they slump with one last “let’s go party people” (the right shoulder). This sequence forms the Head and Shoulders pattern, signaling a trend reversal from bullish to bearish.
Traders spot this pattern by identifying three peaks: a central, higher peak flanked by two lower, similar-sized peaks on each side. The neckline, drawn by connecting the lows between these peaks, becomes the critical support level. A break below this line suggests the party's over, and it's time to exit or short the trading instrument.
Conversely, the Inverse Head and Shoulders indicates a reversal from bearish to bullish, resembling a person doing a headstand—a strong sign the market's ready to flip.
Ready to hunt down the charts for some Head and Shoulders? Try out the Head and Shoulders drawing tool .
⛰️ Double Tops and Bottoms: Déjà Vu in Trading
Ever experience déjà vu? The market does too, in the form of Double Tops and Bottoms. A Double Top resembles the letter "M," where the price hits a high, retreats, and then tests that high again before declining. It's the market's way of saying, "I've been here before, and I'm not going higher."
The Double Bottom, shaped like a "W," occurs when the price drops to a low, rebounds, and then retests that low before rising. It's akin to the market finding a sturdy trampoline at support levels, ready to bounce back.
These patterns reflect traders' reluctance to push prices beyond established highs or lows, leading to reversals.
⚠️ Triangles: The Market's Waiting Game
When traders are indecisive, prices often consolidate, forming Triangle patterns. These come in three flavors:
Ascending Triangle : Characterized by a flat upper resistance line and a rising lower support line. Buyers are gaining strength, repeatedly pushing prices up to a resistance level. A breakout above this resistance suggests bullish momentum.
Descending Triangle : Features a flat lower support line and a descending upper resistance line. Sellers are in control, and a break below support signals bearish continuation.
Symmetrical Triangle : Both support and resistance lines converge, indicating a standoff between buyers and sellers. The eventual breakout can go either way, and traders watch closely for directional cues.
Triangles epitomize the market's pause before a storm, as participants gather conviction for the next move.
Feel like looking for some triangles on charts? Jump straight to our easy-to-use Triangle Pattern drawing tool .
🏁 Flags and Pennants: The Market Takes a Breather
After a strong price movement, the market often needs a breather, leading to Flags and Pennants. These are short-term continuation patterns that indicate a brief consolidation before the trend resumes.
Flag : Resembles a parallelogram sloping against the prevailing trend. It's like the market catching its breath before sprinting again.
Pennant : Looks like a small symmetrical triangle that forms after a sharp move. Think of it as the market pitching a tent before continuing its journey.
Recognizing these patterns helps traders position themselves for the next leg of the trend.
🧠 The Psychology Behind Pattern Persistence
Why do these patterns keep appearing? The answer lies in human psychology. Traders, despite access to vast information, are influenced by emotions like fear and greed. This collective sentiment manifests in predictable ways, creating patterns on charts.
For instance, the Head and Shoulders pattern emerges because traders, after pushing prices to a peak, become cautious. Early sellers take profits, causing a dip. A second rally (the head) attracts more participants, but if it fails to sustain, confidence wanes, leading to a sell-off. The final attempt (right shoulder) lacks conviction, and once support breaks, the downtrend ensues.
Understanding the emotional drivers behind these patterns allows traders to anticipate moves and strategize accordingly.
🎯 Using Patterns to Your Advantage
While recognizing patterns is valuable, it's crucial to approach them with a discerning eye:
Confirmation is Key : Don't act on a pattern until it's confirmed. For example, in a Head and Shoulders, wait for a break below the neckline before taking a position.
Volume Matters : Volume often validates a pattern. A genuine breakout is usually accompanied by increased trading volume, indicating strong participation.
Contextual Awareness : Consider the broader market context. Patterns can yield false signals in volatile or news-driven environments.
Risk Management : Always set stop-loss orders to protect against unexpected moves. Patterns suggest probabilities, not certainties.
🧬 The Evolution of Patterns in Modern Markets
In today's algorithm-driven trading landscape, one might wonder if traditional chart patterns still hold relevance. Interestingly, even sophisticated trading algorithms (those used by hedge funds and investment managers) are programmed based on historical patterns and human behavior, perpetuating the cycle.
Moreover, as long as markets are driven by human participants, emotions will influence decisions, and patterns will emerge. The tools may evolve, but the underlying psychology remains constant.
🤗 Conclusion: Embrace the Predictability
In the volatile world of trading, chart patterns serve as a bridge between market psychology and price action. They offer insights into collective behavior, providing traders with a framework to anticipate movements.
By studying these recurring formations, traders can align their strategies with market sentiment, turning the predictability of human nature into a trading edge.
What’s your go-to technical analysis pattern? Are you and H&S trader or maybe you prefer to trade double tops? Share your approach in the comments!
Understanding Buy The Dip In TradingBuying the dip is a trading strategy where you take advantage of temporary price drops in an overall uptrend. The goal is simple: enter the market at a lower price before it resumes its upward move. It sounds easy, but knowing when and how to do it makes all the difference. In this guide, we’ll explore key setups, ideal market conditions, and smart risk management techniques to help you trade dips like a pro. 🚀
1. Understanding Market Structure 🏗️
Before jumping into a trade, it’s crucial to understand how price moves. A strong uptrend is characterized by higher highs and higher lows—this is where buying dips can be very profitable. But beware: not every drop is a buying opportunity. Some dips are part of a pullback, a temporary retracement before the trend resumes, while others signal a complete reversal—the last thing you want to buy into.
Key levels to watch include support zones, Fibonacci retracement levels, and high-volume areas. These zones act as potential turning points where the price is likely to bounce.
2. Proven Setups for Buying the Dip 🎯
🔢 Fibonacci Retracement Support
When the price pulls back within a strong trend, it often lands on key Fibonacci levels like 38.2%, 50%, or 61.8%. These act as natural support points where buyers step in. If a strong bullish candle appears at one of these levels, it can signal a solid dip-buying opportunity.
Combine this with an oversold RSI and rising volume, and you have a strong case for entry.
🎭 Liquidity Grab (Stop Hunt)
Markets love to shake out weak hands. Sometimes, the price dips below a previous low, triggering stop-loss orders before reversing sharply. This is called a liquidity grab—smart money accumulates positions while retail traders panic.
If the price quickly reclaims the level it just broke, it’s a strong buy-the-dip signal. Look for big buy orders, a sharp recovery, and bullish candlesticks to confirm entry.
📊 Anchored VWAP Test
Institutions often base their trades around VWAP (Volume Weighted Average Price), especially when anchored from a significant swing low. When the price revisits this VWAP in a strong uptrend, it’s a potential dip-buying zone.
Watch for bounces off VWAP, rising volume, and confluence with other support levels for confirmation.
🔥 Point of Control (POC) Revisit
Markets move towards areas of high liquidity. If the price revisits the Point of Control (POC)—the price level where most volume is traded in a range—it often serves as strong support.
When price pulls back into the POC and finds buying interest, it’s a great spot to enter. Look for strong reactions, failed attempts to move lower, and confluence with Fibonacci levels.
📏 Previous Range Support
A breakout from a trading range is significant, but the price often returns to retest the range high as new support before continuing higher. If this happens on low selling pressure and aligns with moving averages or VWAP, it can be a golden buy-the-dip opportunity.
Look for bullish reactions, buying volume, and strong candles off the level.
3. When Buying the Dip Works Best ✅
Not all dips are worth buying. The best setups occur when:
The market is in a strong uptrend, making higher highs consistently. 📈
Volume is high, showing that buyers are stepping in. 🔥
Macro conditions support upside movement, like favorable economic news. 📰
4. Risk Management: Protecting Your Capital 🛡️
Even the best traders take losses. What matters is how you manage risk:
Set a Stop Loss 🎯: Always place a stop below key support levels.
Position Sizing 📊: Never risk more than a small portion of your capital per trade.
Have an Exit Plan 🚪: Know where you’ll take profits, whether it's at a resistance level or a trailing stop.
Scale In and Out 🎢: Enter gradually instead of all at once, and take profits along the way to lock in gains.
Key takeaways 🎤
Buying the dip can be a powerful strategy—when done correctly. The key is patience: wait for strong trends, allow price to reach significant levels, and confirm with volume and momentum. Combine technical analysis with solid risk management, and you’ll improve your chances of success in the markets. Happy trading! 🚀
Breakdown Of My Personal Strategy On Dow Jones TutorialI will be giving a breakdown on my own personal strategy on how I trade the Dow Jones Futures. I am writing this post for two reasons. First and foremost, to help people. Secondly, to help myself in better understanding.
The way that I trade is using support and resistance, only I don't use the traditional sense of support and resistance that is taught. I use price levels that all traders have. The four price points of a candle stick. I also use major round numbers of 1000's and 500's.
The Open
The Low
The High
The Close
I start by looking at the monthly. When a new month opens, I.E. February 1st for example, I mark the opening price in Orange.
I use the 2 hour chart to look for buying and selling areas, using key price levels. I look for these key price areas and see how price behaves once they get there.
Low of Month trades
Low of the Week trades
Low of the Day trades
High of Month trades
High of the Week trades
High of the Day trades
Example 1:
The month of February opens at 44,444. I mark this with a horizontal trendline in Orange Level 4. I see price gapping down right into 44,000. A major round number of 1000.
I then drill down to my entry timeframe of the 15 minute to find the buy or sell trigger entry. In this case, I saw the creeping push down into the 1000 level followed by a bull 180 bar. I entered in on the close of that bar. I used a 75 tick stop per ATR and a 200 tick target.
This is an actual trade I took. I recently changed my target strategy. I will explain in a bit.
I use the same concept for the following three timeframes.
The Monthly candle
The Weekly candle
The Daily candle
The Monthly candle:
The Weekly candle:
The Daily candle:
Another example of a trade I took
This creeping layering into a level is one of my favorite ways to get into a trade.
What I am doing now is I will set my stop loss of 75 ticks and I will have no profit target. I will hold the trade until the end of the trading day and close it out before the market closes.
On this particular trade, I closed it out at 44,820 for a 343 tick profit.
The weekly template structure:
Some obvious points but worth repeating. Each Weekly candle has an opening price. Within each weekly candle, there are 5 trading days. Monday-Friday. There is a high and low of the week.
Within each trading day, there is also an open, high and a low. I find that when day trading, only to focus on the specific day itself and to not really worry about "multiple time frame analysis"
All you need is the major key levels I laid out up above.
Here is another trade that I took. I was looking for the Monthly open and 44,500 to be used as resistance for a continuation short trade back through the weekly open.
Of course you can see, I lost on this trade. No strategy is ever guaranteed, and I do routinely take losses. My job as a trader is to preserve my capital and to stay alive.
My money management strategy:
One trade per trading day MAX
If lose, DONE
Close out near end of day if in profits, DONE
75 tick stoploss on ALL day trades. DO NOT TOUCH. Do not move up or down. Sometimes to Break-even but only if trade is seeming to fail (more of an intuition thing)
Risk 0.75%-1.5% per trade
Only make slight adjustments to strategy after every 20-trade sample size.
By limiting my losses to only one trade per day, I can easily recover from a losing day with any winning day. Somedays I will either not see the market well, enter at a poor location or just overall, not be at my best. My statistics show that RARELY do I enter another trade after a losing trade, does that one succeed. This tells me that I am not seeing something that particular day. I will wrap it up and try again another day. Revenge trading does no good but to hurt yourself. I admit I am wrong on the day and come back again.
By limiting myself to one trade per day, I am also cutting down on slippage and commissions. Because of slippage and commissions, trading is NOT a zero-sum game, but in fact a NEGATIVE sum game. Your winners are smaller than they ought to be, and your losses are bigger than ought.
I know that I can have three losing days in a row and be right back to normal after one or two winning days. Therefore, who cares if I take a loss. I need to get through the losing trades to find the big, winning trades.
Pivot Points Part 2: Support and Resistance LevelsWelcome back to our series on pivot points, an objective a simple tool used by many day traders.
In Part 1, we explored the central pivot point, its calculation, and its role as a key reference for market sentiment. In Part 2, we’ll expand on this foundation by diving into the support and resistance levels derived from the pivot point formula. These levels are designed to add depth to your day trading analysis, offering a more comprehensive view of intraday price action.
The Mechanics: Support and Resistance Levels
In addition to the central pivot point (PP), pivot analysis includes three levels of support (S1, S2, S3) and three levels of resistance (R1, R2, R3). These levels are calculated using the previous session’s high, low, and close. The formulas for the primary levels are as follows:
PP = (previous high + previous low + previous close) / 3
S1 = (pivot point x 2) - previous high
S2 = pivot point - (previous high — previous low)
R1 = (pivot point x 2) — previous low
R2 = pivot point + (previous high — previous low)
The third levels (R3 and S3) extend even further but are less frequently reached in typical intraday trading. These levels create a structured framework for identifying potential reversal points, breakout zones, and profit targets.
S&P 500 5min Candle Chart
Past performance is not a reliable indicator of future results
Using Pivot Levels in Your Trading
1. Trading the Reversal: Support and Resistance in Action
One of the most common ways to use pivot levels is to identify potential reversal points. For example, if the price reaches S1 or R1 and shows signs of hesitation, it may indicate a reversal is likely. This is particularly true when combined with candlestick patterns, momentum indicators, or divergence on oscillators like RSI.
Example:
In this EUR/USD 5-minute chart, we see a textbook reversal at R1. The market initially uses the pivot point (PP) as support and then forms a double top reversal pattern when retesting R1 resistance, signalling a potential upward move. This setup allows traders to enter with a clear stop above R1 and a target near the pivot point or dynamic moving average.
EUR/USD 5min Candle Chart
Past performance is not a reliable indicator of future results
2. Riding the Breakout
When momentum is strong, the market can break through pivot levels, turning resistance into support (or vice versa). Watching for breakouts at R1 or S1 can provide excellent entry points for trend-following strategies.
Example:
In this example, the FTSE 100 having earlier reversed at R1 and broken through PP, briefly consolidates near S1. This is followed by a break lower – triggering a swift move down to S2.
FTSE 100 5min Candle Chart
Past performance is not a reliable indicator of future results
3. Target Setting and Risk Management
Pivot levels are also useful for setting realistic profit targets and stop losses. For example, a trader entering a long position near S1 might use the pivot point as an initial target, depending on the strength of the move.
Similarly, a short position initiated near R1 could aim for the pivot point as an initial target and S1 as a secondary target, with stops placed just above the breakout level to manage risk.
Combining Pivot Levels with Other Tools
While pivot levels are powerful on their own, combining them with other tools can significantly enhance their effectiveness:
VWAP: If a pivot level aligns with VWAP, it reinforces the level’s importance as a potential support or resistance zone.
Prior Days High/Low: Pivot levels that coincide with the previous session’s high or low can serve as stronger reversal or breakout points.
RSI: Use RSI to gauge momentum—if price approaches a pivot level while RSI is negative or positive divergence at an overbought or oversold, it can signal a potential reversal.
Example:
In the below example we see the FTSE hold above VWAP and the pivot level – forming a solid base of support before breaking higher. The market breaks through R1 and the prior days high leading to a charge past R2 to and towards R3. At R3 we see the market start to stall as the RSI shows signs of negative divergence.
FTSE 100 5min Candle Chart
Past performance is not a reliable indicator of future results
Summary
Pivot points, along with their associated support and resistance levels, offer traders a structured framework for navigating intraday price action. By understanding how these levels interact with market sentiment and momentum, traders can develop more confident strategies for reversals, breakouts, and risk management.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing
3 Tools for Timing PullbacksPullbacks in trends can offer some of the highest quality trading opportunities, but not all pullbacks are equal. Some offer high-probability setups, while others are warning signs of deeper corrections or trend reversals.
So how do you time your entry with confidence? Here are three effective tools to help you navigate pullbacks with precision.
1. Keltner Channels: Spotting Pullbacks Within Volatility
Keltner Channels are a volatility-based tool that adapts to changing market conditions. They consist of a central moving average with two outer bands—typically set at a multiple of the average true range (ATR). These bands expand and contract as market volatility changes.
How to Use It:
When price moves into or beyond the Keltner Channel’s outer bands, it signals that momentum is outpacing short-term volatility. This surge in momentum provides an ideal setup to anticipate a pullback.
For timing entries, a steady retracement back to the basis line (middle band) often presents the best opportunity to join the trend. The strongest pullbacks tend to be controlled, showing reduced momentum compared to the initial move. In contrast, a deep retracement all the way to the opposite band suggests strong counter-trend pressure, which could indicate a shift in market dynamics rather than a simple pullback.
Example: Gold Daily Candle Chart
In this example, we see gold pushing into the upper Keltner Channel, retracing to the basis line, finding support, and then resuming its uptrend. This pattern repeated multiple times during last year’s bull run, offering traders several high-probability entry points.
Past performance is not a reliable indicator of future results
2. Anchored VWAP: Confirming Institutional Interest
The Anchored Volume Weighted Average Price (VWAP) is a tool that’s widely used by institutional traders. It tracks the average price a market has traded at, weighted by volume, over a specific period. The key difference with Anchored VWAP is that you can "anchor" it to a significant price point (e.g., a breakout or major low), giving you a dynamic reference point for future price action.
How to Use It:
Anchor the VWAP to a key price level, like the low of the trend or a breakout point.
A pullback to the anchored VWAP is often viewed as a high-probability area for entry. This is because institutional traders may be accumulating positions at this level, making it an important support or resistance zone.
When the price pulls back to the VWAP and starts to hold above it, it suggests that demand is outweighing supply, making it a potentially good place to enter.
Example: USD/JPY Daily Candle Chart
Having it highs in November, USD/JPY underwent a steady pullback in December, forming a clear base of support at the VWAP anchored to the September trend lows.
Past performance is not a reliable indicator of future results
3. Fibonacci Retracement: Measuring the Depth of the Pullback
The Fibonacci retracement tool is one of the most popular tools for measuring the depth of a pullback. It uses horizontal lines at key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, etc.) to show potential support and resistance areas during a retracement.
How to Use It:
Identify the high and low of a trending move and apply the Fibonacci retracement tool to measure the distance of the pullback.
Traders should be wary of applying too many Fib levels to their chart, so we would favour focusing on just the 38.2%, 50%, and 61.8%. Never assume that Fib levels will hold, wait for price action-based evidence form confirmation.
If price action holds at one of these levels and begins to reverse, it suggests that the trend is likely to resume. The deeper the pullback, the more cautious you should be, but price patterns that align with the 61.8% level should still be considered as potential entry points.
Example: S&P 500 Daily Candle Chart
We can see from this example that the 38.2% - 50% Fibonacci retracement zone was a useful tool for timing pullbacks on the S&P 500.
Past performance is not a reliable indicator of future results
Bringing It All Together
The best time to enter a pullback is when multiple tools align. For instance:
A pullback to Keltner Channel's outer band that also aligns with a Fibonacci level could signal a strong buy zone.
Anchored VWAP and Fibonacci levels acting together as support can further confirm the validity of the pullback.
By combining these tools, you'll have a more comprehensive understanding of where the market is likely to resume its trend, increasing your chances of a successful entry.
Example: EUR/USD Daily Candle Chart
Here we can see EUR/USD breaks lower – down into the lower Keltner channel. This is followed by a pullback that end up reversing at a confluent zone that includes the 38.2% Fibonacci retracement level, the basis of the Keltner channel, and the VWAP anchored to the highs.
Past performance is not a reliable indicator of future results
Summary:
Timing pullbacks effectively can make a huge difference in trading success, and using the right tools helps separate high-probability setups from lower quality trades. Keltner Channels highlight volatility-driven pullbacks, Anchored VWAP identifies levels where institutions may be active, and Fibonacci retracements offer a structured approach to measuring pullback depth. When these tools align, they create confirmation zones that improve trade timing and risk management.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Foundations of Mastery: 2025 Mentorship Begins!📢 Welcome to the 2025 Mentorship Program!
Greetings, Traders!
This is the first video of the 2025 Mentorship Program, where I’ll be releasing content frequently, diving deep into ICT concepts, and most importantly, developing structured models around them. My goal is to help you gain a deeper understanding of the market and refine your approach to trading.
Before we get started, I want to take a moment to speak to you directly.
💭 No matter where you are in your trading journey, I pray that you achieve—and even surpass—your goals this year.
📈 If you’re striving for consistency and discipline, may you reach new heights.
💡 If you’ve already found success, may you retain and refine your craft—because growth never stops.
🎯 If you’re just starting out, I pray you develop patience, discipline, and above all, accountability—because true progress comes when we own our failures and learn from them.
🔥 If you’ve been trading for years but still struggle with consistency, do not give up. The greatest adversity comes when you’re closest to success. Stay disciplined, stay dedicated, and keep pushing forward.
Above all, let this be a year where we grow together—not just as traders, but as individuals. May we foster humility, respect, and a learning environment where both experienced and new traders can share knowledge and thrive.
🙏 I pray over these things in the name of Jesus. Amen.
Let's have a great year!
The_Architect
what action I take when market open.This video will show you what I look at and my thought process when prepare for maket open.
Purpose of this video is to show how i make plan to take risk in first hour of market open.
example used is 5min&1min
1st. orb 5min
2nd. wait for breakout of 5min
3rd. use MA as (Support) of a trend to SCALP
ORB FIB levels i used is 0.5%(orb) 1.0% 1.5% 2.0%
Target is use orb breakout to target 2.0% fib levels as PriceTarget.
Sector Rotation Analysis: A Practical Tutorial Using TradingViewSector Rotation Analysis: A Practical Tutorial Using TradingView
Overview
Sector rotation is an investment strategy that involves reallocating capital among different sectors of the economy to align with their performance during various phases of the economic cycle. While academic studies have shown that sector rotation does not consistently outperform the market after accounting for transaction costs, it remains a popular framework for portfolio management.
This tutorial provides a step-by-step guide to analyzing sector rotation and identifying leading and lagging sectors using TradingView .
Understanding Sector Rotation and Economic Cycles
The economy moves through distinct phases, and each phase tends to favor specific sectors:
1. Expansion : Rapid economic growth with rising consumer confidence.
- Leading Sectors: Technology AMEX:XLK , Consumer Discretionary AMEX:XLY , Industrials AMEX:XLI
2. Peak : Growth slows, and inflation may rise.
- Leading Sectors: Energy AMEX:XLE , Materials AMEX:XLB
3. Contraction : Economic activity declines, and unemployment rises.
- Leading Sectors: Utilities AMEX:XLU , Healthcare AMEX:XLV , Consumer Staples AMEX:XLP
4. Trough : The economy begins recovering from a recession.
- Leading Sectors: Financials AMEX:XLF , Real Estate AMEX:XLRE
Step 1: Use TradingView to Monitor Economic Indicators
Economic indicators provide context for sector performance:
GDP Growth : Signals expansion or contraction.
Interest Rates : Rising rates favor Financials; falling rates benefit Real Estate.
Inflation : High inflation supports Energy and Materials.
Step 2: Analyze Sector Performance Using Relative Strength
Relative Strength RS compares a sector's performance against a benchmark index like the
SP:SPX This helps identify whether a sector is leading or lagging.
How to Calculate RS in TradingView
Open a chart for a sector TSXV:ETF , such as AMEX:XLK Technology.
Add SP:SPX as a comparison symbol by clicking the Compare ➕ button.
Analyze the RS line:
- If RS trends upward, the sector is outperforming.
- If RS trends downward, the sector is underperforming.
Using Indicators
e.g.: You may add the Sector Relative Strength indicator from TradingView’s public library. This tool ranks multiple sectors by their relative strength against SP:SPX
Additionally, you can use the RS Rating indicator by @Fred6724, which calculates the Relative Strength Rating (1 to 99) of a stock or sector based on its 12-month performance compared to others in a selected index.
Example
In early 2021, during economic recovery, AMEX:XLK 's RS rose above SP:SPX , signaling Technology was leading.
Step 3: Validate Sector Trends with Technical Indicators
Technical indicators can confirm sector momentum and provide entry/exit signals:
Moving Averages
Use 50-day and 200-day Simple Moving Averages SMA.
If a sector TSXV:ETF trades above both SMAs, it indicates bullish momentum.
Relative Strength Index RSI
RSI > 70 suggests overbought conditions; <30 indicates oversold conditions.
MACD Moving Average Convergence Divergence
Look for bullish crossovers where the MACD line crosses above the signal line.
Example
During the inflation surge in 2022, AMEX:XLE Energy traded above its 200-day SMA while RSI hovered near 70, confirming strong momentum in the Energy sector.
Step 4: Compare Multiple Sectors Simultaneously
TradingView allows you to overlay multiple ETFs on one chart for direct comparison:
Open AMEX:SPY as your benchmark chart.
Add ETFs like AMEX:XLK , AMEX:XLY , AMEX:XLU , etc., using the Compare tool.
Observe which sectors are trending higher or lower relative to AMEX:SPY
Example
If AMEX:XLK and AMEX:XLY show upward trends while AMEX:XLU remains flat, this indicates cyclical sectors like Technology and Consumer Discretionary are outperforming during an expansion phase.
Step 5: Implement Sector Rotation in Your Portfolio
Once you’ve identified leading sectors:
Allocate more capital to sectors with strong RS and bullish technical indicators.
Reduce exposure to lagging sectors with weak RS or bearish momentum signals.
Example
During post-pandemic recovery in early 2021:
Leading Sectors: Technology AMEX:XLK and Industrials AMEX:XLI
Lagging Sectors: Utilities AMEX:XLU
Investors who rotated into AMEX:XLK and AMEX:XLI outperformed those who remained in defensive sectors like AMEX:XLU
Real-Life Case Studies of Sector Rotation
Case Study 1: Post-Pandemic Recovery
In early 2021, as economies reopened after COVID-19 lockdowns:
Cyclical sectors like Industrials AMEX:XLI and Financials AMEX:XLF outperformed due to increased economic activity.
Defensive sectors like Utilities AMEX:XLU lagged as investors shifted away from safe havens.
Using TradingView’s heatmap feature , investors could have identified strong gains in AMEX:XLI and AMEX:XLF relative to AMEX:SPY
Case Study 2: Inflation Surge in Late 2022
As inflation surged in late 2022:
Energy AMEX:XLE and Materials AMEX:XLB outperformed due to rising commodity prices.
Technology AMEX:XLK underperformed as higher interest rates hurt growth stocks.
By monitoring RS lines for AMEX:XLE and AMEX:XLB on TradingView charts, investors could have rotated into these sectors ahead of broader market gains.
Limitations of Sector Rotation Strategies
Transaction Costs : Frequent rebalancing can erode returns over time.
Market Timing Challenges : Predicting economic cycles accurately is difficult and prone to errors.
False Signal s: Technical indicators like MACD or RSI can produce false positives during volatile markets.
Historical Bias : Backtested strategies often fail when applied to future market conditions.
Conclusion
Sector rotation is a useful framework for aligning investments with macroeconomic trends but should be approached with caution due to its inherent limitations. By leveraging TradingView ’s tools, such as relative strength analysis, heatmaps, and technical indicators, investors can systematically analyze sector performance and make informed decisions about portfolio allocation.
While academic research shows that sector rotation strategies do not consistently outperform simpler approaches like market timing or buy-and-hold strategies, they remain valuable for diversification and risk management when used judiciously.
Understanding Fibonacci ExtensionsUnderstanding Fibonacci Extensions
Have you ever noticed that market movements often occur in repeatable patterns? Well, that’s where Fibonacci extensions come into play. Join us in this article as we dive into the world of Fibonacci extensions and discover how they can be a strong addition to your trading arsenal.
A Primer on Fibonacci Ratios
Fibonacci ratios originate from the Fibonacci sequence, where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, 34). The key ratio, known as the Golden Ratio, is approximately 1.618. This is calculated by dividing a number in the sequence by its immediate predecessor (e.g., 34 ÷ 21 ≈ 1.619). Conversely, dividing a number by the next number yields approximately 0.618 (e.g., 21 ÷ 34 ≈ 0.618).
In trading, these ratios are used to identify potential support and resistance levels through Fibonacci retracements and extensions:
- Fibonacci Retracements. These indicate where the price might pull back within an existing trend. Common retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. They are derived from the ratios between numbers in the sequence and are applied to measure potential correction points.
- Fibonacci Extensions. These project potential price targets beyond the current range. Key extension levels include 100%, 161.8%, 200%, 261.8%, and 423.6%. They are calculated by extending the Fibonacci ratios past the 100% level to anticipate where the price might move following a retracement.
Note that these ratios can be expressed as either integers or percentages, e.g. 0.618 or 61.8%.
What Are Fibonacci Extensions?
Fibonacci extensions (also known as Fibonacci expansions or Fib extensions) are a technical analysis tool that allows traders to determine potential levels of support and resistance for an asset’s price. Like regular support and resistance levels, they are considered as areas of interest rather than where the price will turn with pinpoint precision. They’re most frequently used to set profit targets, although they can also be used to find entries.
Fibonacci extensions can be applied to any market, including forex, commodities, stocks, cryptocurrencies*, and more, and work across all timeframes. While not foolproof, using the Fibonacci extension tool combined with other forms of technical analysis might be an effective way to spot potential reversal points in financial markets.
Fibonacci Retracements vs. Extensions
Both Fibonacci retracements and extensions are based on the Fibonacci sequence and the Golden Ratio, but they are used to measure different things in the market. The former shows support and resistance levels during a pullback from a larger move. The latter measures the potential levels of support and resistance for an asset's price after a pullback has occurred.
As shown in the chart above, the Fibonacci retracement tool can be applied to identify where the price may pull back to – 50% in this scenario. Then, the Fibonacci extension tool is used to plot where the price could end up beyond this pullback. The 100% and 161.8% levels posed significant resistance, causing the price to reverse.
It’s easy to see how both tools can be used in conjunction to build a strategy. Generally speaking, traders tend to enter on a pullback to one of the key retracement levels, and then take potential profits at the extension levels. However, either tool can be used to find areas suitable for entries and exits.
Fib Extensions: How to Use Them in a Trading Strategy
If you’re wondering how to use Fib extensions in your own trading, here are the steps you need to follow.
- Click to set the first point at a major swing low if expecting bullishness or swing high if expecting bearishness.
- Place the second point at a swing in the opposite direction.
- Put the third point at the low of the pullback if a bullish move is expected or the high if a bearish move is expected.
That’s it! You now have an idea of where price may reverse as the trend progresses, allowing you to set profit targets or plan entries. You can also double-click the tool to adjust it to your preferences, like removing certain levels and changing colours.
Bullish Example
In this example, we have a swing low (1) followed by a swing high (2) that makes a retracement (3). These three points are all we need to plot a Fibonacci extension. Notice that the 138.2% level didn’t hold, showing that price isn’t always guaranteed to reverse in these areas. However, the wicks and sustained moves lower at the 100% and 161.8% areas gave traders confirmation that a reversal might be inbound.
Bearish Example
Here, we can see that each of the three areas prompted a pullback. Some traders might not consider the 138.2% area valid to trade. However, the most common way to get around this is to look for confirmation with a break of the trend, as denoted by the dotted line between extensions. Once the price gets beyond that swing high (intermittently breaking the downtrend), traders have confirmation that what they’re looking at is likely the start of a reversal.
Some traders believe that if the price closes beyond a level, it’ll continue progressing to the next area. While this can sometimes be the case, it can just as easily reverse. Here, the price briefly closed below the 161.8% level before continuing much higher.
How Can You Confirm Fib Extensions?
While Fibonacci extensions suggest potential areas where price movements may reverse or stall, traders often seek additional confirmation to enhance their confidence in these levels. Here are some methods traders typically use to validate Fib extension levels.
- Confluence with Other Fibonacci Levels. Traders can look for alignment between Fibonacci extensions and retracements from different timeframes or price swings. This overlap may indicate a more significant level where the price could react.
- Support and Resistance Zones. If a Fibonacci extension level coincides with established support or resistance areas on the chart, it can reinforce the likelihood of a market response at that point.
- Candlestick Patterns. Observing specific candlestick formations, such as doji, hammer, or engulfing patterns at Fibonacci extensions, can provide insights into potential reversals or continuations.
- Technical Indicators. Incorporating indicators like moving averages, RSI, or MACD can help confirm the validity of a Fibonacci extension level. For example, if the RSI indicates overbought conditions at a key extension level, traders might anticipate a pullback.
- Trendlines and Chart Patterns. Aligning Fibonacci extensions with trendlines or chart patterns like the Head and Shoulders can offer additional confirmation. Traders often find that extension levels intersecting with these tools carry more significance.
- Volume Analysis. An increase in trading volume near a Fibonacci extension level may suggest stronger market interest, potentially validating the importance of that level.
- Multiple Timeframe Analysis. Traders might analyse Fibonacci extensions across various timeframes to identify consistent levels of interest. A level that appears significant on both charts could be considered more reliable.
- Market Sentiment and News Events. While primarily technical, acknowledging fundamental factors such as economic news or market sentiment can help traders assess whether a Fibonacci extension level might hold or be surpassed.
Limitations of Fibonacci Extensions
Fibonacci extensions are valuable for projecting potential price targets, but they come with limitations that traders should consider. Understanding these can lead to more informed use within a trading strategy.
- Lack of Confidence in Price Movements. While based on mathematical ratios, Fibonacci extensions don't account for unexpected market events like economic news or geopolitical developments that can significantly impact prices.
- Subjectivity in Point Selection. The effectiveness of extension levels hinges on correctly identifying swing highs and lows. Different traders may choose varying reference points, leading to inconsistent levels and interpretations.
- Ineffectiveness in Certain Market Conditions. In sideways or highly volatile markets, prices may not respect Fib extensions, reducing their reliability as indicators of support or resistance.
- Conflicting Signals Across Timeframes. Extension levels vary between different timeframes, potentially causing confusion and conflicting signals in analysis and decision-making.
- Overreliance on Technicals. Focusing solely on Fib extensions might cause traders to overlook other critical technical indicators or fundamental factors influencing the market.
- Unnatural Price Movements. Widespread use of Fibonacci levels can lead to price reactions simply because many traders expect them, creating artificial support or resistance that may not hold.
- Psychological Biases. Traders might experience confirmation bias, seeing what they expect at Fib levels, which can lead to misguided trading decisions.
Making the Most of Fibonacci Extensions
By now, you may have a decent understanding of what Fib extensions are and how to use them. But how do you make the most out of Fibonacci extensions? Here are two points you may consider to improve your trading strategy.
- Look for confirmation. Instead of blindly setting orders at extension levels, you can look for price action confirmation that the price is starting to reverse at the area before taking potential profits or entering a position. You could do this by looking for breaks in the trend, as discussed in the example above.
- Find confluence. Similarly, you can use other technical analysis tools like trendlines, indicators like moving averages, or even multiple Fibonacci extensions, to give you a better idea of how price will likely react at a level.
Your Next Steps
Now, it’s time to put your understanding to the test. Spend some time practising how to use Fibonacci extensions and try backtesting a few setups to see how you could get involved in a trade. Once you feel you have a solid strategy, open an FXOpen account to start using your skills in the live market. In the meantime, why not try exploring other Fibonacci-related concepts, like Fibonacci retracements and harmonic patterns? Good luck!
FAQ
How Can You Use Fibonacci Extensions?
Fibonacci extensions help traders identify potential future support and resistance levels beyond the current price range. To use them, traders select three points: the start of a trend, its end, and the retracement point. They then apply the Fibonacci extension tool to project where the price may move following a retracement.
How Should You Draw Fibonacci Extensions?
The process starts with choosing the trend-based Fib extension tool in your charting software. Then, the next step is to select the swing low/high (start of the trend), then the swing high/low (end of the trend), and finally the retracement low/high. The tool will display extension levels indicating possible future price targets.
What Is the Difference Between Fibonacci Retracements and Extensions?
Fibonacci retracements identify potential support and resistance levels during a price pullback within an existing trend. Extensions, on the other hand, project levels beyond the current price range, indicating where the price might move after the retracement. Retracements focus on corrections; extensions focus on trend continuations.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Are You a Technical or Fundamental Trader? (And Why It Matters)Financial markets are a battleground of opposing forces: buyers vs. sellers, bulls vs. bears, diamond hands vs. paper hands. But one of the oldest rivalries in trading doesn’t involve price movements at all — it’s the ongoing feud between technical and fundamental traders.
One side believes the charts hold all the secrets (you, maybe?), while the other insists that cold, hard data dictates market direction (you, maybe?). In this Idea, we break down the two and ask: which side are you on?
📈 The Chartists: The Lost Art of Tape Reading
Technical traders are the wizards of the candlestick, seeing patterns where others see chaos. To them, a moving average isn’t just a squiggly line — it’s guidance. Fibonacci levels ? More sacred than grandma’s secret pie recipe. They don’t care if a company just launched the greatest product of the century — if the RSI says it’s overbought, they’re out.
Technical analysis thrives on one simple principle: price action reflects all available information and hints at the next possible move. Instead of diving into earnings reports or economic data — the fundamental traders’ bread and butter — technical traders study past price movements, volume, and momentum indicators to predict the next leg up or down. They’re the ones glued to their TradingView charts, eyes darting between support and resistance levels, waiting for the perfect breakout.
💸 The Fundamentalists: Betting on Real-World Events
Fundamental traders scoff at the idea that lines on a chart can predict the future. Instead, they dig into earnings reports , economic calendars , and all sorts of reports and data. They believe markets, like everything else in life, move based on value, supply and demand, and macroeconomic forces—not just on price action.
To them, a stock isn’t just a ticker symbol; it’s a business with revenues, expenses, and growth prospects. If they’re trading forex , they’re looking at interest rates USINTR and inflation reports USCPI , not head-and-shoulders patterns. The goal? To determine an asset’s intrinsic value and bet on it going up or down, ideally running ahead of the pack.
If a company’s earnings are strong, like Spotify’s SPOT latest earnings figures , they buy—regardless of what a stochastic oscillator says. And vice versa, if a company’s earnings are weak, like Google parent Alphabet’s GOOGL latest showing , they sell.
👉👈 Who’s Right?
Both, depending on who you ask. Technical traders argue that prices move in patterns, and those patterns repeat. Fundamental traders counter that real-world events drive prices, and charts are just a delayed reflection of reality.
The truth may actually be somewhere in the middle — markets are a mix of both. Even the most die-hard fundamentalist will glance at a chart before making a trade, and many technical traders keep an eye on economic calendars to avoid being blindsided by major news.
💡 Why It Matters
Your trading style affects everything: the markets you trade, the tools you use, and even your level of stress. If you’re a fundamentals-first trader trying to scalp five-minute charts, you’re in a world of pain. Conversely, if you’re a technical trader attempting to hold trades for years without considering financial data, you might miss obvious warning signs.
Understanding your own tendencies can help refine your strategy and improve your results. Are you more comfortable crunching numbers and reading financial statements? You might be in the same boat with other cash-flow guys like Warren Buffett and Ray Dalio. Do you prefer spotting patterns and reacting to price action? Say hello to your billionaire buddies Paul Tudor Jones and Stanley Druckenmiller.
💚 Final Thoughts
Bottom line, trading isn’t about proving one method superior — it’s about making the right decisions, and, let’s be frank, turning a profit. Whether you’re a chart junkie or an earnings aficionado, what matters most is having a strategy that works for you.
So now the big question… which side are you on? Fundamental analysis or technical analysis? Comment below and let’s see who’s who!
Leap Ahead with a Regression Breakout on Crude OilThe Leap Trading Competition: Your Chance to Shine
TradingView’s “The Leap” Trading Competition presents a unique opportunity for traders to put their futures trading skills to the test. This competition allows participants to trade select CME Group futures contracts, including Crude Oil (CL) and Micro Crude Oil (MCL), giving traders access to one of the most actively traded commodities in the world.
Register and compete in "The Leap" here: TradingView Competition Registration .
This article breaks down a structured trade idea using linear regression breakouts, Fibonacci retracements, and UnFilled Orders (UFOs) to identify a long setup in Crude Oil Futures. Hopefully, this structured approach aligns with the competition’s requirements and gives traders a strong trade plan to consider. Best of luck to all participants.
Spotting the Opportunity: A Regression Breakout in CL Futures
Trend reversals often present strong trading opportunities. One way to detect these shifts is by analyzing linear regression channels—a statistical tool that identifies the general price trend over a set period.
In this case, a 4-hour CL chart shows that price has violated the upper boundary of a downward-sloping regression channel, suggesting the potential start of an uptrend. When such a breakout aligns with key Fibonacci retracement levels and existing UnFilled Orders (UFOs), traders may gain a potential extra edge in executing a structured trade plan.
The Trade Setup: Combining Fibonacci and a Regression Channel
This trade plan incorporates multiple factors to define an entry, stop loss, and target:
o Entry Zone:
An entry or pullback to the 50%-61.8% Fibonacci retracement area, between 74.60 and 73.14, provides a reasonable long entry.
o Stop Loss:
Placed below 73.14 to ensure a minimum 3:1 reward-to-risk ratio.
o Profit-Taking Strategy:
First target at 76.05 (38.2% Fibonacci level)
Second target at 77.86 (23.6% Fibonacci level)
Final target at 78.71, aligning with a key UFO resistance level
This approach locks in profits along the way while allowing traders to capitalize on an extended move toward the final resistance zone.
Contract Specifications and Margin Considerations
Understanding contract specifications and margin requirements is essential when trading futures. Below are the key details for CL and MCL:
o Crude Oil Futures (CL) Contract Details
Full contract specs: CL Contract Specifications – CME Group
Tick size: 0.01 per barrel ($10 per tick)
Margin requirements vary based on market conditions and broker requirements. Currently set around $5,800.
o Micro WTI Crude Oil Futures (MCL) Contract Details
Full contract specs: MCL Contract Specifications – CME Group
Tick size: 0.01 per barrel ($1 per tick)
Lower margin requirements for more flexible risk control. Currently set around $580.
Choosing between CL and MCL depends on risk tolerance and account size. MCL provides more flexibility for smaller accounts, while CL offers higher liquidity and contract value.
Execution and Market Conditions
To maximize trade efficiency, conservative traders could wait for a proper price action into the entry zone and confirm the setup using momentum indicators and/or volume trends.
Key Considerations Before Entering
Ensure price reaches the 50%-61.8% Fibonacci retracement zone before executing the trade
Look for confirmation signals such as increased volume, candlestick formations, or additional support zones
Be patient—forcing a trade without confirmation increases risk exposure
Final Thoughts
This Crude Oil Futures trade setup integrates multiple confluences—a regression breakout, Fibonacci retracements, and UFO resistance—to create a structured trade plan with defined risk management.
For traders participating in The Leap Trading Competition, this approach emphasizes disciplined execution, dynamic risk management, and a structured scaling-out strategy, all essential components for long-term success.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
BTCUSDT soon below 100K$ and heavy fall will leadThis post is also educational and now as we can see the pump and breakout was fake and the fall started:https://www.tradingview.com/chart/BTCUSDT/sbV6gZGS-Bitcoin-major-sign-of-Stop-loss-hunting-and-dump-seen/
so the question is this that why we are looking for below 100K$ or 90K$?
1. first reason: stop loss hunting which is mentioned as i said before makes a good volume and liquidation for them to enter the position and make a good profit and if you take look at chart we have two Fakeouts at same time and with one high volume candle it is all done, yes the first one is those sellers which enter with resistance of red trendline and the other sellers also joined with resistance of ATH and both of them which used high volume now are out because they had the Felling that if Bitcoin break ATH it will pump and they put stop loss close and both get loss and gets out of trade + we have two major buyers which get in the trade to open long and first are those who enter after breakout of trendline and add more volume after ATH broke and others are those who open long after ATH breakout and were looking for more rise and gain so soon their stop loss will also hit or already done and that is another good volume for them.
2. second reason: usually like previous time which we can see fake breakout we have good move to the upside or downside and i think the dump just started and it will continue more at least to 90K$.
Always do your own research and also remember more reasons and ... will cause this fall and here i mentioned two of them you can add more in comments and mention why we are looking for more fall?
DISCLAIMER: ((trade based on your own decision))
<<press like👍 if you enjoy💚
8-Minute Guide to Trading Support & Resistance Feeling like you're guessing instead of trading? I've got you covered with this 8-minute crash course on finding support and resistance on TradingView. We'll look at where prices love to bounce back or break through, how to use that for your trades, and a quick trick to spot a real breakout.
Kris/Mindbloome Exchange
Trade What You See
AMP Futures - Lock chart position when switching intervals.In this idea, we will demonstrate how to lock your chart position when viewing history anytime you switch from one-time interval to another.
Is Dogecoin at risk of being replaced by Musk-themed coins?Hello and greetings to all the crypto enthusiasts, ✌
Reading this educational material will require approximately 10 minutes of your time . For your convenience, I have summarized the key points in 10 concise lines at the end . I trust this information will prove to be insightful and valuable in enhancing your understanding of Dogecoin and its role in the global financial landscape.
Dogecoin has gained significant prominence in Elon Musk's business ecosystem, thanks to its widespread use in Musk-associated ventures and Musk's personal advocacy. His vocal support has propelled Dogecoin into the mainstream, cementing his position as one of the most influential figures in the cryptocurrency space. While Musk has previously commented on Bitcoin, it was his involvement with Dogecoin that truly bridged the gap between the business world and cryptocurrency, making Dogecoin the first cryptocurrency to connect him to the broader crypto universe.
Given Musk's continued backing, it is unlikely that Dogecoin will face a sharp decline in the near future. Instead, it is poised to benefit from Musk’s influence and growing presence in the crypto space. However, the dynamic nature of the cryptocurrency market means new competitors could emerge, potentially impacting Dogecoin's market share. For example, projects like Floki have quickly risen by leveraging high-profile personalities and branding, which could inspire other cryptocurrencies to challenge Dogecoin’s dominance.
Musk’s upcoming ventures, such as XMoney—a blockchain-powered payment platform for his companies like Tesla and SpaceX—could increase demand for Dogecoin. This platform will provide a decentralized payment infrastructure across Musk’s businesses, potentially further solidifying Dogecoin's place in his ecosystem. While the full impact of these developments is still unclear, Musk's leadership in integrating cryptocurrency into established industries is likely to continue.
Another notable factor is Musk's connection with former President Donald Trump, whose recent engagement with the cryptocurrency market has added further attention to the sector. This intersection between high-profile figures has sparked fresh interest in digital assets, creating upward momentum for Dogecoin and other related assets. This growing attention could drive Dogecoin’s price higher as the market responds to this renewed liquidity.
On the technical side , indicators for Dogecoin are increasingly positive. Analysts suggest it may soon break out of its current price channel, signaling the potential for a significant price surge. If Dogecoin can surpass key resistance levels, a bullish phase could emerge, leading to notable price increases in the short-to-medium term. This potential breakout is supported by Musk's ongoing influence in both the tech and crypto spaces, which tends to have a substantial impact on market sentiment.
The broader cryptocurrency landscape is also contributing to Dogecoin's promising future. Trends such as blockchain technology development, institutional adoption of cryptocurrencies, and growing recognition of crypto as a legitimate asset class suggest that Dogecoin will remain a significant player in the market. As the cryptocurrency market evolves alongside technological and regulatory changes, Dogecoin’s relevance appears likely to endure.
Furthermore , the rise of artificial intelligence (AI) in the crypto space could shape Dogecoin's future. As AI technologies continue to advance, they will influence cryptocurrency trading, market dynamics, and risk management systems. Musk’s involvement in both AI and crypto may provide opportunities to leverage AI-driven tools to enhance Dogecoin's appeal and utility, making it more accessible and efficient for users, which could boost mainstream adoption.
Lastly , the regulatory environment around cryptocurrencies will play a crucial role in determining the future of assets like Dogecoin. While regulations remain uncertain in many areas, the increasing push for clearer frameworks could provide stability to the market. As governments and financial institutions set up structures for cryptocurrency adoption, established cryptocurrencies like Dogecoin could gain more legitimacy, integrating into traditional financial systems and further elevating their market position.
🧨 Our team's main opinion is: 🧨
Dogecoin has become a significant asset in Elon Musk's business ecosystem, driven by his strong support and advocacy. Musk's involvement has helped propel Dogecoin into the mainstream, bridging the gap between the business world and crypto.
While new competitors may emerge, Musk’s continued backing ensures Dogecoin’s relevance.
The launch of XMoney, a blockchain payment system for Musk’s companies, could further boost Dogecoin's use. Musk’s connection to Trump has also sparked renewed interest in digital assets, providing upward momentum for Dogecoin. Technical indicators suggest a potential price surge as Dogecoin nears a breakout.
The broader crypto market trends, blockchain development, and growing institutional adoption signal a positive future for Dogecoin. AI advancements may further enhance Dogecoin's appeal, increasing its accessibility.
Clearer cryptocurrency regulations could increase stability and legitimacy for Dogecoin. As Musk remains a key figure, Dogecoin is likely to maintain its strong position in the crypto ecosystem.
Give me some energy !!
✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box.
Cheers, Mad Whale. 🐋
Earnings Season Playbook: What Traders Should Know to Stay Ahead🏈 It’s Earnings Season — Game On
Earnings season is the market’s quarterly equivalent of the Super Bowl (with just as much action) or the Oscars (minus the red carpet but with just as much drama). Every three months or so (every quarter), companies parade their financial performances, guiding traders and investors through a rollercoaster of beats, misses, and that classic "in line with expectations" snooze-fest.
It’s exciting, nerve-wracking, and, if played right, potentially profitable. So, how do you navigate this high-stakes quarterly event? With a solid playbook and a lot less stress than you might think.
🌀 Know When Things Kick Off
Timing is everything. Earnings reports trickle in on a quarterly basis and are usually released after the regular trading session (for the most part) or before the opening bell (for the banks, mostly).
Having a scheduled earnings calendar means that traders have enough time to digest the numbers — or panic — before the next batch of updates. So make sure you keep an eye on the earnings calendar — you don’t want to be caught holding ill-fated shares if Tesla TSLA announces its profit margins have shrunk because of that quirky Cybertruck, right? Preparation here means knowing who’s reporting, when, and what the expectations are.
📝 Read Between the (Income Statement) Lines
Earnings reports are more than just numbers. Of course, revenue and EPS (earnings per share) are the headliners, but the juicy details often lurk in the fine print. Look out for annualized revenue growth (or shrinkage), profit margins, and forward-looking guidance.
If a company beats earnings but lowers its full-year forecast, it’s like winning the lottery but learning half your prize is in Monopoly money. Market-fluent traders dig deep and connect the dots rather than reacting to headlines.
💡 Forward-Looking Projections: The Market’s Guiding Light
Forward projections or guidance is among the most powerful tools companies use to set the tone. A quarterly performance is old news by the time it’s reported; traders want to know what’s next.
Positive guidance can send stocks soaring, while cautious language can sink even the strongest performers. For example, if a tech company beats earnings but announces reduced hiring or slower revenue growth projections, brace for turbulence. Think of guidance as the “what’s next” teaser for a Netflix NFLX series you can’t stop binging.
Btw, Netflix really outworked everyone in the last quarter.
☎️ Earnings Calls: Raw Market Reactions
Earnings calls are where the magic — or chaos — happens. CEOs and CFOs are tasked with selling their story to analysts and investors, balancing optimism with realism. Listeners keep an ear out for key phrases like … you know it … “AI,” “generative AI” and “AI data centers”.
It’s also where you’ll catch nuggets about new projects, market conditions, and management’s confidence—or lack thereof. Pro tip: Look for a transcript if the financial jargon on live calls makes you feel like you need subtitles.
🎡 The Volatility Playground: Trading Earnings Gaps
Earnings season is a volatility wonderland. Stocks can gap up or down significantly in reaction to results, creating opportunities for savvy traders. Trading these gaps requires a blend of technical analysis and fast decision-making.
Did the stock gap down despite a solid earnings beat? That might be a buy-the-dip moment. Conversely, a massive gap up can shout overbought. The trick is understanding the context of the move — is it justified, or is it speculative?
🐏 Avoid the Herd Mentality (or at Least Try to)
Earnings season brings out the FOMO. Traders see a stock soaring post-earnings and rush in, only to get burned when the euphoria fizzles. It’s tempting to follow the herd, but disciplined traders stay cautious.
Always ask: is this stock moving on fundamentals, or is it riding a hype wave? If it’s the latter, step back and let the dust settle — the market loves to overcorrect.
🖼️ Sector Trends: The Bigger Picture Matters
Earnings season isn’t just about individual stocks; it’s a pulse check on entire sectors. If a major bank reports a sharp jump in profits, it’s a bullish sign for the financial sector (yes, we’re talking about JPMorgan’s JPM latest quarterly update ).
Similarly, a blockbuster quarter from a tech titan might lift the entire tech space. By keeping an eye on sector trends, traders can spot opportunities and avoid pitfalls. Think of it as reading the room before making your move.
🎮 Play the Long Game
Earnings season isn’t just for day traders. Long-term investors can use it to reassess their positions and look for entry points. If a company misses earnings due to short-term challenges but maintains strong fundamentals, it might be a buying opportunity.
On the flip side, a stock riding high on hype but lacking substance could be a signal to exit. Patience pays off, especially when everyone else is chasing the next shiny object.
✍️ Wrapping It Up: Stay Sharp, Stay Informed
Earnings season is as unpredictable as the plot twists in Succession. But with the right preparation and mindset, it’s also a goldmine of opportunities. Do your homework, keep your emotions in check, and don’t be afraid to sit out if the setup doesn’t feel right.
So grab your coffee (or tea, no judgment), fire up your TradingView account, and get ready for the financial fireworks.
How To Navigate: Breakouts with Tools, Indicators & StrategyHaving a Clear and Precise understanding of whether you're dealing with a Breakout or False Breakout can help you:
1) Find potentially profitable opportunities
&
2) Avoid making risky investment moves!
Also knowing how to Confirm Trend Change can:
1) Rise probability of profitable trades
&
2) Limit the total # taken!
So today, I lay out the tools, indicators and tips I use to visualize and to make a decision!
Examples:
COINBASE:XLMUSD & BITSTAMP:XRPUSD
Tools:
- Trendline
- Parallel Channel
- Rectangle
Indicators:
- Volume
- RSI
- "True or False" Formula : Close + 20-25% Break + 5-6 Days Outside of Break = Breakout
An Educational Journey into Technical Analysis with Dogecoin/USDIn this tutorial, we'll dive deep into the art of technical analysis using the Dogecoin USD chart as our canvas. You'll discover how to blend Fibonacci tools, Elliott Wave Theory, and the Wyckoff Method to forecast potential market movements. Whether you're new to trading or looking to refine your analytical skills, this guide will provide you with practical insights into identifying entry and exit points, understanding market phases, and preparing for future trends. Let's embark on this educational journey together to enhance your trading strategy toolkit.
When in doubt, Zoom Out!
Below I was looking at Arguments for a Significant Short Position Before the Continuation of the Bullish Trend and the Pursuit of New All-Time Highs
Elliott Waves: From the bear market bottom at 4.5 cents, we started wave 1 and concluded with wave 5 at the current top. Following five waves, we expect an ABC correction. Waves A and B have been completed, and we are now in wave C.
Fibonacci 1: Trend-Based Fibonacci Extension - From the all-time high (ATH) to the recent bear market bottom, then to the current 48-cent top. The 0.382 Fibonacci level suggests a target of 0.2130 for the upcoming drop, which I believe is necessary for liquidity ahead of the next upward movement.
Fibonacci 2: Regular Fibonacci Retracement - From the bottom of wave 4 to the top of wave 5, the 0.618 level is at 0.235 cents. I've marked a green box between these two targets.
See in the image below how Backtesting this strategy on the two previous cycles shows that before breaking ATHs, Dogecoin always hit this 0.382 Fib level!
I use these 2 Fibonacci targets to place the green box between them and where I expect price to go in the newxt couple of weeks.
Additional Observation: The green line below the 0.618 Fib retracement and above the 0.382 trend-based Fibonacci extension also marks a retest of the wave 3 high at 0.23 cents.
Now that we've examined the macro perspective, let's Zoom In to the current action:
Wyckoff Schematic: Check my previously published idea on Bitcoin, linked here, where Bitcoin is in a Wyckoff Distribution Schematic #1. Dogecoin seems to follow with Wyckoff Distribution Schematic #2. I've added vertical lines for phase separation, a red resistance box, and a green support box.
Link to Richard D. Wyckoff, his Method and Story www.wyckoffanalytics.com .
ABC Pattern: Wave A from top to bottom is exactly 0.222 cents or -45.81%, suggesting wave C should be of similar magnitude. Wave B measures 0.1724 cents and 65.65% to the upside. Using an arrow tool, the 0.222 cent drop points exactly to the 0.382 Fibonacci target from the trend-based extension we did in the macro analysis, now highlighted in yellow. Link to chart.
Zooming in on the 4-hour Chart: I've drawn another Fibonacci retracement just for wave B, colored in turquoise blue. Notably, the 1.272 Fibonacci extension aligns with our macro 0.382 Fibonacci target, now colored yellow for clarity.
Speculations for Future Moves:
Fibonacci Circle and bottom timing prediction: Drawn from A to B, this circle in orange might help us predict when we hit the green box target at the bottom. Considering that the A drop measures exactly 12 days and 4Hours I have added another vertical line now marking a timeframe of 5 days from Thursday 30 January to Monday 3 February 2025 This is speculative but worth watching. It includes also a weekend so a CME gap before weekend plus filling the week after could also be in play.
Wyckoff Phases: According to earlier discussions, we're moving through phases A to E. I've added a vertical line where the Fib circle crosses our 1.272 and 0.382 Fib levels, suggesting we'll enter phase E on January 23, 2025, potentially concluding by February 2, 2025.
Predictive Arrows: Blue arrows indicate possible future price movements based on current patterns.
After hitting our target, I'll analyze again and publish a new idea with plans for breaking the ATH and targets for the anticipated bull market.
Enough for now, as it's getting late. Give me a follow, share if you liked this analysis, and stay tuned for updates.
Using Volume to Validate Market MovesVolume is one of those metrics that often sits quietly at the bottom of your chart, unnoticed by many traders. Yet, it plays a critical role in understanding the market’s behaviour. Think of volume as the fuel behind price movements—without it, even the most promising breakout can fizzle out. But, just like with fuel, more isn’t always better.
Today, we’re focusing on the simple volume histogram that appears at the bottom of most charts. While there are countless indicators built around volume—like On-Balance Volume (OBV) or the Volume-Weighted Average Price (VWAP)—the histogram is a straightforward, effective tool for gauging participation in the market. Let’s explore how to use it, how to put volume into context, and how it behaves with different price patterns, including the concept of volume divergence.
Simple Volume Histogram
Past performance is not a reliable indicator of future results
Why Volume Matters (and Why More Isn’t Always Better)
Volume measures how many shares or contracts change hands during a given period. When volume spikes, it signifies heightened interest—buyers and sellers actively engaging. However, it’s not as simple as “more volume equals better signals.”
For instance, a breakout on high volume often reflects strong conviction, but it can also indicate exhaustion at the end of a trend. Conversely, a low-volume breakout might lack the interest needed to sustain the move. Understanding the relationship between volume and price action is key to avoiding false signals.
A Simple Trick: The Volume Moving Average
One of the easiest ways to contextualise volume is by applying a moving average to the volume histogram. Platforms like TradingView make this simple: double-click the volume histogram, select ‘Style,’ tick the Volume MA box, and adjust the average length under ‘Inputs.’
A 9-period moving average, for example, acts as a baseline. When volume spikes significantly above the average, it suggests increased participation and potentially more meaningful price moves. Conversely, volume below the average often reflects quieter market phases.
Adding MA to Your Volume Histogram
Past performance is not a reliable indicator of future results
Volume Divergence: When Volume and Price Don’t Align
Volume divergence occurs when price action and volume move in opposite directions, often hinting at weakening trends or potential reversals.
Imagine an uptrend where the price makes higher highs, but volume decreases at each new peak. This divergence signals fading participation, suggesting the trend may be losing steam.
On the other hand, if the price trends lower while volume rises, sellers could be gaining momentum, increasing the likelihood of further downside.
Take the example below, where volume divergence on the FTSE 100 preceded a period of sideways consolidation.
Volume Divergence: FTSE 100 Daily Candle Chart
Past performance is not a reliable indicator of future results
Patterns That Thrive on High Volume
Certain price patterns rely on strong volume to confirm their validity. A classic example is a triangle breakout. As the price consolidates within the triangle, volume often contracts. When the breakout finally occurs, you want to see a surge in volume, confirming that participants are backing the move. Without it, the breakout might lack the conviction needed to sustain the trend.
Patterns That Prefer Lower Volume
Other patterns work best with subdued volume. A pullback within a trend is a great example. Let’s say a stock is in a strong uptrend and starts to retrace slightly. Ideally, you want to see declining volume during the pullback. This suggests the selling is more about profit-taking than aggressive distribution.
Once the pullback completes and the trend resumes, volume should pick up again. If the pullback occurs on high volume, it could indicate stronger selling pressure, signalling that the uptrend might be in trouble.
A Practical Example: DXY Pullback and Breakout
Let’s apply these concepts to a real-world case. In October, the dollar index (DXY) formed a steady uptrend followed by a pullback, creating a descending channel or bull flag.
During the flag formation, average volume declined, indicating reduced selling pressure. When the price broke out, volume surged to nearly triple the 20-day average—a clear signal of strong buying interest. This breakout led to a multi-week uptrend.
DXY Daily Candle Chart
Past performance is not a reliable indicator of future results
Final Thoughts
The volume histogram is a simple yet invaluable tool for traders. By applying a moving average to identify volume trends and watching for divergences between price and volume, you can gain a clearer understanding of market dynamics.
Volume isn’t just about how much activity is happening—it’s about when and how it aligns with price action. Whether you’re trading breakouts, pullbacks, or reversals, understanding volume can provide an essential layer of confirmation and help you spot potential warning signs.
Keep in mind, volume is just one piece of the puzzle. But when used correctly, it can give you a better sense of whether a price move has the backing it needs to succeed—or if it’s running on empty.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
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Bitcoin: Don't be blind to the world (Trump inauguration)Regular readers will know that we avoid fundamental analysis In these reports - we stick to the price.
But that doesn’t mean being blind to the world around us.
On Monday January 20, Donald Trump will be inaugurated as US President.
I’m sure many of you have your political views about Trump - but just keep those away from your trade ideas!
The crypto market - and Bitcoin especially - has been on a huge rally since Trump spoke at a Bitcoin conference in favour of cryptocurrencies last year.
There’s a chance President Trump could mention Bitcoin in his inaugural speech but even if he doesn’t, the prospect of favourable regulation is broadly positive for Bitcoin - or if we’re more honest - the idea of better regulation could be enough justification to keep the crypto bull run going for now.
Bitcoin
On the weekly chart, we can see Bitcoin (BTC/USD) has been trading sideways around the $100,000 level - with roughly $90,000 as support.
But bigger picture it’s a huge uptrend and we want to trade in line with the trend (as always)
Importantly - it just closed the week back over the critical $100K mark - and it did so with a bullish engulfing candlestick that engulfed the previous 3 weeks.
As a reminder - where the week closed is more important than the high or low of the week - and a weekly close is more significant than a daily close. You can think of the closing price as the price that everybody agreed was the right price for that period.
The final missing piece to the bullish breakout is a weekly close at a new record high.
On the daily chart we are watching the broken trendline as well as the $100k level as support that needs to hold if the breakout is going to happen soon.
But while the price trendline is not especially reliable with only two ‘touches’ or swing points the broken RSI trendline is much more significant and shows a big pickup in momentum that will be needed if the price is to break out.
If the breakout does happen, the first barrier that needs to break is $110,000 but after that $120k then even $130k could come quite quickly given Trump’s inauguration this week.
But - as always - that’s just how my team and I are seeing things, what do you think?
Share your ideas with us - OR - send us a request!
Send us an email or message us on social media.
cheers!
Jasper
Example of how to use the Trend-Based Fib Extension tool
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There was a question about how to select the selection point when using the Trend-Based Fib Extension tool, so I will take the time to explain the method I use.
Since it is my method, it may be different from your method.
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Before that, I will explain the difference from the general Fibonacci retracement tool.
The Fibonacci retracement tool uses the Fibonacci ratio as the ratio to be retracement within the selected range.
Therefore, the low and high points are likely to be the selection points.
The reason I say it is likely is because the lowest and highest points are different depending on which time frame chart it was drawn on.
Therefore, in order to use a chart tool that specifies a selection point like this, you must basically understand the arrangement of candles.
If you understand the arrangement of candles, you can draw the support and resistance points that make up it and determine the importance of those support and resistance points.
The HA-MS indicator that I am using is a more objective version of this.
Unlike the published HA-MS indicator, several have been added.
I do not plan to disclose the formulas of these added indicators yet.
However, if you share my ideas, you can use them normally at any time.
The selection point for using the current Fibonacci retracement tool is the point that the fingers are pointing to.
In other words, the 1st finger is the low point, and the 2nd finger is the high point.
One question may arise here.
Why is it the position of the 1st finger?
The reason is that it is the starting point of the current wave.
Therefore, you can find out the retracement ratio in the current rising wave.
In fact, it is not recommended to use the Fibonacci ratio as support and resistance.
This is because it is better to use the Fibonacci ratio to check how much wave is being reached and how much movement is being shown in chart analysis.
However, the Fibonacci ratio can be usefully used when the ATH or ATL is updated.
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If the Fibonacci Retracement tool was a chart tool that found out the retracement ratio in the current wave, the Trend-Based Fib Extension tool can be said to be a chart tool that found out the extension ratio of the wave.
Therefore, while the Fibonacci Retracement tool requires you to specify two selection points, the Trend-Based Fib Extension tool requires you to specify three selection points.
That's how important it is to understand the arrangement of the candles.
The chart above is an example of drawing to find out the extension ratio of an uptrend
The chart above is an example of drawing to find out the extension ratio of a downtrend
Do you understand how the selection points are specified by looking at the example chart?
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The chart above is the chart when the 1st finger point is selected.
The chart above is the chart when the 1-1 hand point is selected.
When drawing on a lower time frame chart, you should be careful about which point to select when the arrangement of the candles is ambiguous.
Examples include the 1st finger and the 1-1 finger.
It may be difficult to select 1-1 and 1 depending on whether they are interpreted as small waves or not.
The lower the time frame chart, the more difficult this selection becomes.
Therefore, it is recommended to draw on a higher time frame chart if possible.
The reason is that the Fibonacci ratio is a chart tool used to analyze charts.
In other words, it is not drawn for trading.
In order to trade, you trade based on whether there is support or resistance at the support and resistance points drawn on the 1M, 1W, and 1D charts.
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Thank you for reading to the end.
I wish you successful trading.
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Behind the Curtain: Top Economic Influencers on ZN Futures1. Introduction
The 10-Year Treasury Note Futures (ZN), traded on the CME, are a cornerstone of the fixed-income market. As a vital benchmark for interest rate trends and macroeconomic sentiment, ZN Futures attract institutional and retail traders alike. Their liquidity, versatility, and sensitivity to economic shifts make them a go-to instrument for both speculation and hedging.
In this article, we delve into the economic forces shaping ZN Futures’ performance across daily, weekly, and monthly timeframes. By leveraging machine learning, specifically a Random Forest Regressor, we identify the most impactful indicators influencing Treasury futures returns. These insights can help traders fine-tune their strategies and navigate the complexities of this market.
2. Product Specifications
Contract Size:
The standard ZN Futures contract represents $100,000 face value of 10-Year Treasury Notes.
Tick Size:
Each tick corresponds to 1/64 of 1% of par value. This equals $15.625 per tick, ensuring precise pricing and manageable risk for traders.
Margins:
Approximately $2,000 per contract (changes through time).
Micro Contract Availability:
While the standard contract suits institutional traders, the micro-sized Yield Futures provide a smaller-scale option for retail participants. These contracts offer reduced tick values and margin requirements, enabling broader market participation.
3. Daily Economic Drivers
Machine learning models reveal that daily fluctuations in ZN Futures are significantly influenced by the following indicators:
Building Permits: A leading indicator of housing market activity, an increase in permits signals economic confidence and growth. This optimism often puts upward pressure on yields, while a decline may reflect economic caution, boosting demand for Treasuries.
U.S. Trade Balance: This metric measures the difference between exports and imports. A narrowing trade deficit typically signals improved economic health, leading to higher yields. Conversely, a widening deficit can weaken economic sentiment, increasing Treasury demand as a safe-haven asset.
China GDP Growth Rate: As a global economic powerhouse, China’s GDP growth influences global trade and financial flows. Strong growth suggests robust international demand, pressuring Treasury prices downward as yields rise. Slower growth has the opposite effect, enhancing Treasury appeal.
4. Weekly Economic Drivers
When analyzing weekly timeframes, the following indicators emerge as significant drivers of ZN Futures:
Velocity of Money (M2): This indicator reflects the speed at which money circulates in the economy. High velocity signals robust economic activity, often putting upward pressure on yields. Slowing velocity, on the other hand, may indicate stagnation, increasing demand for Treasury securities.
Consumer Sentiment Index: This metric gauges the confidence level of consumers regarding the economy. Rising sentiment suggests stronger consumer spending and economic growth, often pressuring bond prices downward as yields rise. Conversely, a decline signals economic caution, favoring safe-haven assets like ZN Futures.
Nonfarm Productivity: This measures output per hour worked in the nonfarm sector and serves as an indicator of economic efficiency. Rising productivity typically reflects economic strength and may lead to higher yields, while stagnation or declines can shift sentiment toward Treasuries.
5. Monthly Economic Drivers
On a broader monthly scale, the following indicators play a pivotal role in shaping ZN Futures:
Net Exports: This metric captures the difference between a country’s exports and imports. A surplus indicates strong global demand for domestic goods, signaling economic strength and driving yields higher. Persistent deficits, however, may weaken economic sentiment and increase demand for Treasuries as a safe haven.
10-Year Treasury Yield: As a benchmark for longer-term borrowing costs, movements in the 10-Year Treasury Yield reflect investor expectations for economic growth and inflation. Rising yields suggest optimism about future economic conditions, potentially reducing demand for Treasury futures. Declining yields indicate caution, bolstering Treasury appeal.
Durable Goods Orders: This indicator measures new orders placed with manufacturers for goods expected to last three years or more. Rising orders signal business confidence and economic growth, often leading to higher yields. Conversely, a decline in durable goods orders can indicate slowing economic momentum, increasing Treasury demand.
6. Applications for Different Trading Styles
Economic indicators provide distinct insights depending on the trading style and timeframe:
Day Traders: Focusing on daily indicators like Building Permits, U.S. Trade Balance, and China GDP Growth Rate to anticipate short-term market movements. For example, an improvement in China’s GDP Growth Rate may signal stronger global economic conditions, potentially driving yields higher and pressuring ZN Futures lower.
Swing Traders: Weekly indicators such as Velocity of Money (M2), Consumer Sentiment Index, and Nonfarm Productivity could help identify intermediate trends. For instance, rising consumer sentiment can reflect increased spending expectations, potentially prompting bearish positions in ZN Futures.
Position Traders: Monthly metrics like Net Exports, 10-Year Treasury Yield, and Durable Goods Orders may offer a macro perspective for long-term strategies. A sustained increase in durable goods orders, for instance, may indicate economic expansion, influencing traders to potentially adopt bearish sentiment on ZN Futures.
7. Conclusion
The analysis highlights how daily, weekly, and monthly economic indicators collectively influence ZN Futures. From more immediate fluctuations driven by Building Permits and China GDP Growth Rate, to longer-term trends shaped by Durable Goods Orders and the 10-Year Treasury Yield, each timeframe provides actionable insights for traders.
By understanding these indicators and incorporating machine learning models to uncover patterns, traders can refine strategies tailored to specific time horizons. Whether intraday, swing, or long-term, leveraging these insights empowers traders to navigate ZN Futures with greater precision.
Stay tuned for the next installment in the "Behind the Curtain" series, where we examine economic drivers behind another key futures market.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
