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Silver Bullet Strategy EURUSD USDCAD AUDUSD | 26/11/2024Yesterday served as a classic example of the importance of risk management in every trader's system. We initiated three trades across three different currency pairs (EURUSD, GBPUSD, USDCAD) and plan to provide a detailed breakdown of each trade, including the outcomes. We began scouting for potential setups that matched our entry criteria at 10:00 EST. By 10:30 EST, a FVG had developed on GBPUSD, indicating potential selling opportunities during this trading session. All that remained was to wait for a retracement into the created FVG to secure an entry point for the trade The subsequent five-minute candle entered the Fair Value Gap (FVG) on GBPUSD, indicating that we could execute our trade upon its closure. Simultaneously, we were exploring additional trading opportunities across various currency pairs. It was then that we observed the emergence of a FVG on USDCAD, necessitating a wait for a retracement into the FVG before executing a trade. We executed the trade on GBPUSD while awaiting confirmation to enter the USDCAD position. The USDCAD setup provided an entry confirmation, indicating that we would have two trades active during this session. Additionally, the session was still ongoing when we observed that another EURUSD setup was approaching the fulfillment of our entry criteria. Immediately after initiating the trades on GBPUSD and USDCAD, we observed a significant drawdown on both. This was due to a large bearish marubozu candle printing on the USDCAD, while the GBPUSD experienced two successive bullish candles, casting both positions in an unfavorable light. While all this was happening the setup on EURUSD had fulfilled all the requirements on our checklist so we had to execute that trade as well. Our USDCAD position hit the stop loss, and shortly after, our GBPUSD position also reached the stop loss, resulting in a 2% reduction of our trading account for the day. This leaves us with just one active position on EURUSD. Being in such a position wouldn't be easy to bare if we hadn't managed risk properly. We entered these trades risking only 1% per trade and had already accepted the potential outcomes, which greatly diminished any emotional attachment to these trades. With that in mind, the EURUSD position began moving in our desired direction, which was a considerable relief after two out of three trades had reached the stop-loss point We patiently waited, and this time our patience paid off when our EURUSD position hit the take profit (TP) for a 2% gain. Thus, for the day, we experienced two losses and a win, but with effective risk management, our win offset both losses, and we broke even for the day. Do you see the importance of ensuring your wins outweigh your losses? We experienced just one win and two losses, yet our single win was more significant that it offset all the losses we had for the day
Education
by CleoFinance
5
Using Bollinger Bands to Gauge Market Trends and Volatility The US Thanksgiving holiday usually marks a quieter period for trading, as US financial markets are closed on Thursday and US traders often take the Friday off as a holiday to benefit from a long weekend. This can see both lower volume and volatility, so we thought we’d take this time to outline one of our favourite technical indicators, called Bollinger Bands. The aim is to increase your knowledge of a new indicator you may consider worth knowing, ahead of the first week of December, which is packed full of important events that may kick start markets moving again into the end of 2024. We intend to highlight how Bollinger Bands can potentially be applied to help read both current trending and volatility conditions for any asset. To help with this, we are using the US 500 index as an example to outline the type of band set-ups you can consider using within your day-to-day analysis and trading. What are Bollinger Bands? Bollinger bands are made of 3 lines – the mid-average, upper and lower band (see chart above). The mid-average is a 20 period moving average, with the upper and lower bands calculated using 2 standard deviations either side of the mid-average. If you are unsure of the concept or how to calculate 2 standard deviations, please don’t worry, the Pepperstone charting system will do this automatically for you and add them to the chart of any asset you may wish to analyse. The mid-average is used to reflect the direction of the on-going trending condition of a market. If its rising, an uptrend is in place, while if it’s falling, a downtrend is evident. How the bands act in relation to the mid-average is key when using Bollinger bands. They can often offer important confirmation of the trend and can show if acceleration phases in the price of a particular asset may be seen within that trend. The most important thing to know about Bollinger bands is that they react to increasing volatility within price. Periods of increasing volatility see both bands widening away from the mid-average, while if volatility is decreasing, they contract or draw closer to the mid-average. Let’s look at this further. What Set-Ups are We Looking For and What Do They Mean? There are 5 set-ups to be aware of when using Bollinger bands and each offer clues to the next activity in the price of a particular asset. 1st: Volatility Increasing Within a Confirmed Trend: When the mid-average is either rising (to highlight an uptrend) or falling (to reflect a downtrend), and the bands are widening to show increasing volatility within that trend, alongside the upper band being touched in an uptrend, or within a downtrend, the lower band being touched. When all the above conditions are evident, the potential is for that move to extend further than perhaps anticipated. On the US 500 Index chart above, the green arrows mark when these more aggressive trending conditions are in place. 2nd: Volatility Decreasing Within a Confirmed Trend: Where the mid-average is either rising (uptrend) or falling (downtrend), and the bands are contracting reflecting decreasing volatility within that trend. When these set-ups are in place, the speed of the recent directional move is slowing, and the possibilities are increasing for a consolidation in price. During this period, we may want to consider reducing or closing positions and reverting to the side lines, as a setback could materialise, as a reaction to the latest move. On the chart above, red arrows mark these consolidation periods. 3rd: Mid-Average Support/Resistance Holds Within Corrective Moves: Within these corrective or recovery phases after periods of increasing volatility and widening bands, we must watch how the mid-average support or resistance is defended. If the mid-average is rising, highlighting an uptrend and holding price weakness, it may resume the direction of the original trend. Similarly, when the mid-average is falling, highlighting a downtrend and holding price strength, it may continue in the same direction. However, past trends and technical indicators are not reliable predictors of future performance, and market conditions can change unexpectedly. On the new chart above, these points are marked by the blue vertical arrows. 4th: Trend Channels Form Between Mid-Average and Upper/Lower Band: When the rising mid-average holds as suggested in the third set-up above, this can see uptrend or downtrend channels form in price. In an uptrend, the rising mid-average holds price weakness and turns it higher. While this still sees price strength, volatility doesn’t increase but remains steady, reflected by rising parallel bands and support continues to be found by the rising mid-average. However, resistance materialises following tests of the upper band, for a setback towards the support of the still rising mid-average. This pattern ends if the price of the asset breaks below the support offered by the rising mid-average. On the latest chart above, this is marked by the purple arrows. When the declining mid-average holds price strength, as suggested in the 3rd set-up above, this can see a downtrend channel form in price. In a downtrend, the declining mid-average holds price strength and turns it back lower. While this scenario still sees price weakness, volatility remains steady and doesn’t increase, reflected by the declining bands being parallel, and resistance continues to be found by the falling mid-average. However, tests of the lower band see support materialise and a rally in price ensues towards resistance marked by the still falling mid-average. This pattern ends if the price of the asset breaks above resistance offered by the falling mid-average. This situation is the opposite of the chart above. 5th: Mid-Average Broken to See More Extended Rally/Sell-Off: Mid-average support or resistance gives way, but while price weakness or strength develops, the direction of the average doesn’t change. This sees a limited move in the direction of the mid-average break. During price weakness, if the mid-average continues to rise, the lower band can act as a support level and prompt a rally. During price strength, if the mid-average continues to fall, the upper band acts as a resistance level from which price weakness can emerge again. These signals are marked by the green rectangles in the chart above. It is important to note in this example, if an upper or lower bands is touched and then both bands start to widen alongside the mid-average changing direction, then this is highlighting the 1st set up described above, meaning we are observing increasing volatility within what is a new trending condition. In this situation, we may need to consider adjusting our trading strategy to reflect this new directional shift in price. Conclusion: While past signals within Bollinger Bands are not a guarantee of future signals, by utilising the set-ups described above, they may offer an indication of the latest trending conditions in the price of a particular asset. More importantly, they help to highlight when increasing volatility is materialising and when more sustained price moves are possibly on the cards, in the direction of the on-going trend. Also, they show when decreasing volatility can result in a period of consolidation and a reaction to the recent move due. Take a look at the Pepperstone charting system and consider whether Bollinger Bands may help you establish the next directional moves for the asset you’re trading. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
PEPPERSTONE:US500Education
by Pepperstone
7
Profitable Support and Resistance Strategy for Trading Forex This support and resistance strategy works on any forex pair and gold. It is simple and profitable and it is the best trading strategy for beginners. In this article, I will share with you a step-by-step guide for trading this strategy. You will learn entry rules and important theory. First and foremost, in order to profitably trade support and resistance levels, you need to know how to identify them. You should know how to distinguish a significant structure level. I believe that you should look for a strong support or resistance strictly on a daily time frame. That structure should be historically significant. It means that it should be respected by the market at least 2 times, with a strong and clear reaction to that. Here is the example of a key support on EURUSD. The underlined key level was respected as the resistance, first, then, after a breakout, it turned into support and a strong bullish reaction followed. Above, you can see a perfect horizontal resistance level that was respected 2 time in a row in the recent past. Support and resistance levels that I showed you are truly significant. But, trading more than 9 years, I realized that the historic reaction of the market to a key level is not enough to make it reliable. I found one more important condition that strengthen a key level - a market trend. We will trade only supports that align with the market trend, meaning that we buy from such a support, if only the market is trading in a bullish trend. In the example above, NZDUSD is trading in a clear bullish trend on a daily. If we buy the market from the underlined support level, we will take a trend-following trade. That will be the best support level for buying the market from. We will trade only the resistances that align with the market trend. It means that we will sell from the resistance, only if the market is trading in a bearish trend. Look at AUDUSD on a daily. The pair is trading in a bearish trend. The resistance that I underlined will be valid for selling from, because shoring from that, we will trade with the trend. Please, realize that if you sell the market that is in an uptrend from a resistance level, you will go AGAINST the trend. The probabilities of winning such a trade will always be lower. You can see the EURNZD went through a resistance level, completely neglecting that, because the market trend was bullish. Buying a key support in a bearish trend, we will take a trade against the trend. Such trades always have lower accuracy. A key support on EURCAD was easily broken because the market was trading in a bearish trend. Now, let's discuss th e entry point, stop loss placement and target selection. Once you identified a key resistance in a bearish trend, set a sell limit order on that. On EURGBP, the market is trading in a bearish trend on a daily. We see a significant resistance that meets our criteria. We should set a sell limit order on that. Stop loss for the trade will be 0.5 ATR. I simply take the default ATR settings with 14 Length. In our example, ATR is 27 pips. Our stop loss for the trade will be 14 pips above the entry level. Take profit for the trade will be the closest support. Here is the closest support that I spotted on EURGBP. It will be our TP level. You can see that the market perfectly reached the target. Once you identified a key support in a bullish trend, set a buy limit order on that. I see a perfect daily key support on EURJPY pair. The market is trading in a strong uptrend. A buy limit order should be set on that level. Stop loss for the trade will be 0.5 ATR. ATR is 139 pips. Our stop loss will be 70 pips. Take Profit will be the closest daily resistance. 311 pips of profit were made. Market trend is always your friend . The rule to trade support and resistance levels only in the side of the trend is very simple, but many newbie trades neglect that, and lose a lot of money. Try this support and resistance strategy, back test it on different forex pairs and let me know your results. Thanks for reading! ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
20
How to Spot Crypto Gems & Sleeping Giants Before Their Big PumpEveryone wants to be the genius who snagged Bitcoin BTCUSD at $1 or scooped up Ethereum ETHUSD when it was cheaper than your morning latte. Spotting a crypto gem before it rockets to the moon is the holy grail of digital asset trading, a pursuit that blends Sherlock Holmes-level detective work with a pinch of gambling spirit. Before you dive into the crypto rabbit hole armed with little more than Twitter/X tips and Reddit whispers, let’s talk strategy. Because while you might get lucky chasing the next moonshot, a structured approach will give you far better odds. Let’s break it down 🤸‍♂️. What Exactly Is a “Crypto Gem”? First, let’s define the term. A crypto gem (or a sleeping giant) is not just any token with a buzz around it or an active Telegram group with “early adopters.” In a nutshell, it’s a project with solid fundamentals, a strong community and the potential to deliver real-world utility or disrupt an existing market. Think of it as a startup stock with global access, high risk and the potential for astronomical returns—assuming it doesn’t implode under its own hype. Spotting one in the vast sea of cryptocurrencies requires more than just coffee-fueled optimism and good vibes. You’ll need a keen eye, a skeptical mindset and the ability to tune out the noise of endless shilling. Step One: Research the Team Behind the Token When it comes to crypto, the team is almost everything. This isn’t just about having developers with LinkedIn profiles full of buzzwords; it’s about real-world credibility. Are they public and transparent? Anonymous developers might sound edgy, but they’re also a flight risk. Google “rug pull” if you need a refresher on why trust matters. Do they have experience in blockchain, fintech or relevant fields? A team with Silicon Valley cred or a history of building successful projects in tech (or even better—Big Tech) is a big green flag. Are there notable backers? Big-shot venture capital firms like a16z lend credibility. That said, even legends like Sequoia Capital got burned by FTX, so don’t let big names be your only criteria. Step Two: The Whitepaper—Your Cheat Sheet Think of the whitepaper as the project’s pitch deck, manifesto and homework assignment rolled into one. A good whitepaper will answer three critical questions and a great one won’t let you fall asleep before you finish it: What problem is the project solving? No one needs another tokenized version of something that already exists. Look for innovation, not replication. How does the technology work? You don’t have to be a blockchain engineer, but if the tech sounds like sci-fi or is overly vague, it might be all smoke and no fire. What’s the roadmap? This is big—promises of “future features” without timelines or specifics are red flags. A realistic, actionable plan is what you want. Pro tip: If the whitepaper reads like it was run through Google Translate three times, run. Or if it reads dry, dull and plain boring, it might’ve been churned out by none other than OpenAI’s chatbot ChatGPT. In this case, also run. Step Three: Community and Hype—The Double-Edged Sword The crypto community is both its greatest strength and its Achilles’ heel. A strong, engaged community can help drive adoption but blind hype can also inflate worthless projects. Check social media channels. Look at the size and engagement of the community. Thousands of followers mean nothing if they’re all bots. Beware of echo chambers. If every post is a variation of “TO THE MOON 🚀,” you’re probably dealing with a FOMO factory rather than a serious project. Gauge the vibe. Are people discussing real use cases, or is it all price speculation? Thoughtful discussions are a green flag. Step Four: Tokenomics—Follow the Money Tokenomics is the economic blueprint of a cryptocurrency. It answers key questions about supply, demand and utility and helps you understand where the crypto belongs. Is it memecoin or a DeFi token ? Or maybe something else ? What’s the total supply? A limited supply can create scarcity (à la Bitcoin), but infinite supply tokens often struggle to maintain value. What’s the circulating supply? Tokens locked up in vesting schedules or owned by the team can flood the market later, tanking the price. How is the token used? If the token has no clear utility, it’s just Monopoly money with better branding. Bonus points for projects that have thought about deflationary mechanisms, staking rewards, or other incentives for holding the token long-term. Step Five: Partnerships and Real-World Applications You know what’s better than promises? Receipts. Partnerships with established companies, platforms, or organizations lend credibility and show that the project is more than just a good idea on paper. Is the project solving real problems? A blockchain that speeds up supply chain logistics or enables decentralized finance for underserved communities has a tangible use case. Are there active collaborations? Look for integration with existing platforms, APIs, or other cryptocurrencies. Do the partnerships drive adoption? True partnerships should go beyond brand association and actively expand the project’s user base, utility, or reach. The Red Flags You Can’t Ignore Now that you know what to look for, let’s talk about what to avoid. Some warning signs are so obvious they might as well be written in neon: Overpromising. Claims of “guaranteed profits” or “the next Bitcoin” are the crypto equivalent of snake oil. Poor transparency. If the team, roadmap or financials are vague, think twice before you make your move. Lack of progress. If a project has been “in development” for years with nothing to show, you’re most likely looking at vaporware. The Role of Timing Spotting a gem isn’t just about finding a good project—it’s about finding it at the right time, before the pack. Ideally, you want to enter before the masses catch on but after the project has proven its viability. Pre-launch phases and early adoption stages often offer the best opportunities. To borrow a quote from hedge fund boss David Tepper: “I am the animal at the head of the pack. I either get eaten or I get the good grass.” That said, even if you manage to find that one true gem, it might take years for its potential to unfurl and take you to the moon. On another note, something fundamental might go wrong along the way—the project might change course and abandon its original mission, vision and goals. Wrapping It All Up Spotting a crypto gem before it hits the moon is hard work. And it mostly comes down to hours and hours of preparation, research and analysis before you hit the exchange and grab the coin. Also, not every gem will be a 100x moonshot, and that’s okay. Just make sure you set your priorities straight and align your expectations to the most volatile market out there. So, what’s your crypto gem you wanna tell us about? Or you’re still looking for it? Share your thoughts and tips in the comments—let’s uncover the next moonshot together!
BITSTAMP:BTCUSDEducation
by TradingView
20
Quantum Mechanics & Market Behavior At this stage of my research, I would like to share the primary inspirations behind my style of analysis. As you've already noticed, I don’t create forecasts, as they are subjective and inherently disconnected from the objective nature of markets. Instead, I focus on predictions grounded in the captured dynamics of market behavior in order to actually get closer to its causality. "QUANTUM MARKET" In the unpredictable world of trading, price action often mirrors the strange principles of quantum mechanics. Concepts like wave function collapse, entanglement, chaos theory, the multiverse, and even the double-slit experiment provide a unique lens to understand why markets behave as they do—particularly when they defy the majority of forecasts and move in unexpected directions. The Collapse of the Market Wave Function In quantum mechanics, a particle exists in a state of possibilities described by its wave function until it is measured. When observed, the wave function "collapses" into one definite outcome. Similarly, in markets, price exists as a spectrum of probabilities, influenced by fundamental data, sentiment, and technical levels. These probabilities reflect the collective forecasts of traders, analysts, and institutions. The "collapse" of the market wave function can be likened to the moments when price unexpectedly moves against the prevailing sentiment, proving the majority wrong. For instance, when experts predict a bullish breakout, only for the market to reverse sharply, it resembles the moment a quantum system resolves into a state that surprises its observers. This metaphor highlights the fragile relationship between market expectations and actual outcomes. Just as the act of measurement influences a quantum system, the collective observation and positioning of traders directly impact market movements. The Multiverse of Price Action The Many-Worlds Interpretation (MWI) of quantum mechanics posits that every possible outcome of a quantum event occurs, creating branching universes for each scenario. This offers a useful metaphor for the multiverse of market possibilities, where price action simultaneously holds countless potential paths. Each decision by traders, institutions, and external forces influences which path the market ultimately "chooses," much like the branching of quantum states into separate realities. When the market takes an unexpected turn, it can be thought of as moving into a "branch" of the multiverse that was previously considered improbable by the majority. For example: A widely anticipated bullish breakout may fail, with the price collapsing into a bearish reversal. This outcome corresponds to a "parallel universe" of price action where the market follows a path contrary to the consensus. When they say market has its on path, chances are they're definitely referring to approach from Fractal Market Hypothesis. The moment traders observe the market defy expectations, their reality shifts into this new "branch," leaving the discarded probabilities as theoretical relics. While traders only experience one "reality" of the market—the observed price movement—the multiverse perspective reminds us that all potential outcomes coexist until resolved by market forces. Chaos Theory: The Hidden Order Behind Market Behavior Markets may appear chaotic, but their movements are not entirely random. Instead, they follow principles reminiscent of chaos theory, where complex systems display patterns that arise from underlying order. In trading, this hidden order emerges from the entanglement of price action—the intricate relationship between buyers, sellers, sentiment, and external events. Counter-oscillations of opposing forces, such as bullish and bearish sentiment that has stake in patterns. When these forces reach a critical point, they can produce dramatic reversals or breakouts. A fascinating aspect of this hidden order lies in the measurement of cycle intervals, which can decrypt the path and stops of price action. These intervals, often influenced by Fibonacci ratios, reflect the inherent chaos of the market while maintaining a surprising consistency. In chaotic systems, the ratios of results inherit the domestic chaos properties of the system itself. This means the measured intervals not only explain past behavior but also project future movements, where price has no option but to adhere to the golden ratio in its path, regardless of direction. Tools like Fibonacci Channels on TradingView combine these ratios with the angle of the trend, revealing fractal-based timing measurements that highlight potential trend shifts. These tools demonstrate how price action, driven by the chaotic yet structured forces of the market, aligns with these self-similar patterns over time. Entanglement and the Double-Slit Experiment in Markets Einstein described quantum entanglement as "spooky action at a distance," where the state of one particle instantaneously influences another, no matter how far apart they are. Markets also mirror another iconic quantum experiment: the double-slit experiment, which demonstrates how particles behave as waves when unobserved but collapse into definitive points when measured. In the double-slit experiment, an electron passes through two slits, existing as a wave of probabilities until observed. Without observation, it creates an interference pattern, suggesting it travels through both slits simultaneously. However, when measured, the electron collapses into a single state, taking a definitive path through one slit and landing at a specific spot on the detector. Price action behaves in a strikingly similar way. Just as an electron "feels" it is being observed and alters its behavior, ongoing price action appears to respond to the collective observation of millions of traders. Despite this intense scrutiny, price action frequently surprises both bulls and bears, defying expectations as if reflecting the duality of probability and definitiveness. When unobserved or in a state of uncertainty, markets exhibit wave-like behavior, oscillating between potential paths. Trends consolidate, creating a balance of opposing forces. However, as traders act on their observations—placing bets, setting stop losses, or predicting breakouts—price "collapses" into a definitive state, choosing a path that often defies the collective expectations of the market. Logical Deductions Understanding the market through the lens of quantum mechanics, chaos theory, and the multiverse offers valuable insights for traders: Expect the Unexpected: Just as a quantum particle's state cannot be precisely predicted, markets are inherently probabilistic. Even the most widely expected outcomes can collapse under the weight of unforeseen variables or simply change of incentive during overheat volatility. Beware of Herd Mentality: When the majority aligns behind a forecast, the market becomes entangled in their collective assumptions. This might create conditions for a dramatic reversal, much like how a quantum system shifts into an unanticipated state. Recognize Counter-Oscillations: Price action is driven by the push and pull of opposing forces. Trends often mask the tension beneath, and understanding these dynamics can help traders anticipate critical turning points. Measure Cycles with Ratios: Fibonacci-based tools, when combined with trend angles, reveal fractal rhythms and the frequency of reversals. These measurements help traders predict price shifts with greater accuracy. Embrace the Multiverse: Just as the Many-Worlds Interpretation suggests all outcomes coexist until resolved, traders should recognize that multiple possibilities are always present in the market. Being prepared for alternative scenarios helps mitigate risk and improve decision-making. General Interconnectedness: Markets are a dynamic interplay of order and chaos, shaped by the entanglement of opposing forces and the constant tension between consensus and contrarian dynamics. The collapse of the wave function—those moments when price defies expert predictions—reminds us of the deep complexities underlying actual behavior of masses. Through the lens of the multiverse, every market outcome can be seen as a branching reality, where the price action we observe is just one of many potential paths. By embracing this perspective, traders can better navigate the intricate dance of probabilities and entanglement, understanding that markets are not linear systems but ever-changing, interconnected realities. This mindset empowered me to thrive in the environment of duality, where adaptability and probabilistic thinking are the actual keys to understanding price mechanism in Financial Markets. Disclaimer: You don’t have to accept these observations as true. Always trust your own judgment and cultivate independent thinking. Personally, I find that the behavior of particles at the quantum scale is the closest phenomenon that mirrors the chaos of the market.
BITSTAMP:BTCUSDEducation
by fract
12
Understanding Leverage in Forex: Steep Risks and Big RewardsLeverage is the not-so-secret sauce to accelerate your gains at breakneck speed or blow up the entire operation if you don’t know what you’re doing (or you just want too much.) It’s a simple concept with profound implications—a multiplier that lets traders control positions far larger than the capital they actually have. Sounds like a dream, right? But in forex , dreams can turn into nightmares faster than you can say “margin call.” Let’s unravel this seductive, high-stakes game changer. ❔ What Is Leverage? “We were always leveraged to the hilt when we bought something and ran out of money, we would look at the portfolio and push out whatever appeared to be the least attractive item at that point,” explains Jim Rogers, George Soros’s partner, in Jack D. Schwager’s book “Market Wizards: Interviews with Top Traders.” At its core, leverage is borrowed capital. When you trade with leverage, you’re essentially using your broker’s money to amplify the size of your position. Let’s say you want to invest $1,000 and use a leverage ratio of 100:1. This means you can control a position worth $100,000. A small 1% movement in your favor equals $1,000 in profit—doubling your initial investment in a single move. Sounds good, doesn’t it? But here’s the catch: leverage works both ways. A 1% move against you wipes out your entire $1,000. It’s the double-edged sword that can turn modest accounts into heavyweights—or into dust. 🧲 The Allure of Amplified Gains Forex traders are drawn to leverage like moths to a flame, and for good reason. The ability to turn small price movements into significant profits is exhilarating and means you don’t have to chip in gargantuan amounts of cash to make bank. In a market where currency pairs often move fractions of a percentage daily, leverage is what makes those movements meaningful. Without it, most traders would struggle to eke out gains worth their time. Consider a scenario where you’re trading a major currency pair like the EUR/USD . The price moves 50 pips in your favor, and each pip is worth $10 on a standard lot. Without leverage, you might only afford a micro lot, making your profit $5—not exactly a game changer. But with 100:1 leverage, you control a full lot, turning that $5 into $500. Suddenly, your modest deposit has real firepower. This potential for outsized returns is intoxicating, especially for new traders. But like any powerful tool, misuse can be catastrophic. 💣 The Flip Side: Risks That Loom Large If leverage is the hero of ever-moving forex trading space , it’s also the villain. For every dollar it helps you earn, it can take away just as quickly. While a 50-pip move in your favor feels like striking gold, the same move against you might be a financial disaster. Even seasoned traders aren’t immune to the dangers of leverage. The forex market is inherently volatile, with prices influenced by everything from central bank policies to geopolitical tensions. Leverage amplifies these fluctuations, turning minor market noise into account-draining chaos if you’re not prepared. Here’s the brutal truth: most traders underestimate the risks of leverage. Maybe because it’s so common they’ve gotten used to it. Overleveraging—taking on more risk than your account can handle—is the silent account killer. And it doesn’t take a market meltdown to wreck your balance. A sudden spike caused by unexpected news or a tweet can trigger a margin call, leaving you with nothing but a hard lesson. 🤙 Margin Calls: The Grim Reality Let’s talk about margin calls, the dreaded phone call (once upon a time) no trader wants to receive—except it’s not a phone call anymore. It’s an automated popup notification from your broker informing you that your account equity has fallen below the required margin. Essentially, you’ve run out of money to sustain your positions and the broker is stepping in to close them before you owe more than your account balance. This is where overleveraged and undercapitalized traders often meet their doom. A market move that would’ve been a minor setback on a properly sized position becomes a catastrophic loss when leverage is maxed out and equity is dried up. The lesson? Never let your enthusiasm for big trades overshadow your need for risk management. 🎯 Mastering Leverage: The Balanced Approach Leverage isn’t inherently bad—it’s neutral. Like any tool, its impact depends on how it’s used. Successful traders respect leverage. They don’t treat it as a shortcut to riches but as a calculated risk multiplier. Risk management is the cornerstone of surviving—and thriving—in a leveraged environment. This includes using stop-loss orders to limit potential losses, never risking more than an acceptable percentage of your account on a single trade and maintaining sufficient margin to weather market fluctuations. And let’s not forget the importance of choosing the right leverage ratio. Many brokers offer leverage as high as 500:1, but that doesn’t mean you should take it. A lower ratio, like 10:1 or 20:1, gives you more breathing room and reduces the chances of wiping out your account. And if you decide to go for the upper echelons of leverage, say 100:1, then you should consider scaling down your positions to get that same breathing room. 🤔 The Psychology of Leverage Leverage does more than magnify financial outcomes; it amplifies emotions too. The thrill of quick profits can lead to overconfidence, while the fear of losses can paralyze decision-making. Understanding your psychological tendencies is crucial when trading with leverage. Patience and discipline are your best allies. Stick to your trading plan, avoid impulsive decisions, and don’t let the lure of high leverage cloud your judgment. The goal here isn’t just to make money once or twice—it’s to stay in the game for as long as possible. So, how do you handle leverage? Are you the as-good-as-your-last-trade trader or you’re the more cautious, risk-averse type? Comment below and let’s spin up the discussion!
Education
by TradingView
9
Dynamic Relationship Between Bitcoin and CoinbaseGreetings, esteemed readers. Today, we shall delve into the profound and intricate relationship between Bitcoin and Coinbase. It is my earnest hope that you will find this discourse both enlightening and engaging. The Interdependence of Coinbase’s Equity Valuation and Bitcoin’s Market Dynamics-: The nexus between Coinbase's stock performance and Bitcoin's market valuation offers a compelling illustration of the interplay between cryptocurrency markets and traditional equity spheres. As one of the preeminent cryptocurrency exchanges, Coinbase's financial trajectory is inextricably linked to Bitcoin's price fluctuations and the broader crypto milieu. This symbiosis stems from Coinbase's operational foundation and the intricate financial mechanisms tethering the two. 1. Coinbase’s Revenue Architecture-: Coinbase accrues its income predominantly from transaction fees, custodial services, and auxiliary crypto-related operations. A substantial portion of its revenue model hinges on trading volumes, which are profoundly influenced by the oscillations in Bitcoin’s valuation and the crypto market’s inherent volatility. Ascendant Bitcoin Valuations: An upward trajectory in Bitcoin's price galvanizes retail and institutional investor interest, catalyzing heightened trading activity on Coinbase’s platform. This surge amplifies revenue inflows and, by extension, bolsters the company’s stock performance. Depressed Bitcoin Valuations: Conversely, during bearish market phases or periods of price stagnation, trading activity tends to wane, thereby contracting revenue streams and exerting downward pressure on Coinbase’s share price. 2. Correlative Dynamics Between Bitcoin and Coinbase Equity-: Empirical evidence suggests a pronounced positive correlation between Bitcoin’s price dynamics and Coinbase’s share valuation. Robust Bitcoin performance often translates to multifaceted benefits for Coinbase: Enhanced Trading Volumes: Bullish Bitcoin trends entice heightened investor activity, resulting in elevated transaction frequencies. Augmented Market Optimism: An appreciating Bitcoin price engenders a more sanguine market sentiment, which is advantageous to entities like Coinbase that are emblematic of the cryptocurrency sector. Institutional Engagement: Bull markets in Bitcoin invariably attract institutional capital, with regulated exchanges such as Coinbase serving as their primary operational venues. 3. Volatility as a Revenue Catalyst-: Bitcoin’s price volatility is a pivotal determinant of Coinbase’s financial outcomes. Volatility, irrespective of its directional bias, acts as a stimulant for trading activity: Intensified Volatility: Sharp fluctuations in Bitcoin's valuation—whether upward or downward—propel trading volumes, thereby amplifying Coinbase's revenue streams. Muted Volatility: Periods of relative price stability often precipitate a diminution in trading activity, adversely impacting Coinbase’s revenue generation and share valuation. 4. Exogenous Influences on the Bitcoin-Coinbase Nexus-: While Bitcoin serves as a cornerstone for Coinbase’s financial performance, other variables also modulate this interconnection: Cryptocurrency Ecosystem Trends: The valuation and trading activity of other significant cryptocurrencies, such as Ethereum, exert ancillary influences on Coinbase’s revenue architecture. Regulatory Shifts: Alterations in regulatory landscapes can simultaneously affect Bitcoin’s valuation and Coinbase’s operational framework. Firm-Specific Developments: Strategic initiatives, partnerships, and financial disclosures unique to Coinbase may engender deviations in its stock performance independent of Bitcoin’s market trends. 5. Risks in the Symbiosis-: The dependence of Coinbase’s equity on Bitcoin’s performance is fraught with risks: Bitcoin-Centric Exposure: The firm’s disproportionate reliance on Bitcoin-centric revenues exposes it to market downturns and regulatory adversities. Competitive Pressures: The proliferation of alternative cryptocurrency exchanges threatens to erode Coinbase’s market share, diminishing its revenue potential even amidst Bitcoin bull markets. Regulatory Vulnerabilities: Both Bitcoin’s valuation and Coinbase’s operations remain susceptible to abrupt regulatory shifts, which could destabilize their interdependence. 6. Prognostications for the Future-: As the cryptocurrency domain matures, the interplay between Bitcoin and Coinbase may undergo recalibration: Revenue Diversification: Coinbase’s foray into staking, institutional services, and NFTs aims to mitigate its dependency on Bitcoin-driven revenues. Institutionalization of Crypto: The progressive institutional adoption of cryptocurrencies could stabilize Coinbase’s revenue streams. Market Equilibration: The maturation of the cryptocurrency ecosystem might temper Bitcoin’s extreme price oscillations, leading to a concomitant stabilization in Coinbase’s equity performance. Conclusion-: The intrinsic linkage between Coinbase’s share valuation and Bitcoin’s market dynamics is both potent and multifaceted. While this connection offers substantial growth opportunities, it also entails significant vulnerabilities. As Bitcoin maintains its preeminence within the crypto sector, Coinbase’s strategic initiatives to diversify its offerings may gradually attenuate its reliance on Bitcoin. Nonetheless, for the foreseeable future, Bitcoin’s price trajectory will remain a critical bellwether for Coinbase’s equity performance. Best Regards- Amit Hope you like this publication.
Education
by AMIT-RAJAN
12
EUR/USD and the Fakeout Swing Reversal PatternThe Fakeout Swing Reversal pattern is a straightforward and robust candle pattern that has stood the test of time. In this analysis, we’ll explore how the pattern has recently appeared on EUR/USD’s daily candle chart, examining both its successes and failures while identifying the key factors that influence its performance. What is the Fakeout Swing Reversal Pattern? The Fakeout Swing Reversal pattern is a technical setup that captures moments when price fakes a breakout beyond a key swing high or low, only to sharply reverse. This pattern is particularly effective when the fakeout occurs within two candles, signalling that the market’s initial push was unsustainable and trapping traders on the wrong side. Bullish Scenario: The bullish Fakeout Swing Reversal begins with price breaking below a key swing low, seemingly triggering a downside move. However, within one or two candles, the price sharply reverses and closes back above the swing low, signalling a potential upward reversal. The psychology here lies in trapping short sellers who entered on the perceived breakout, forcing them to cover as buyers regain control. Bearish Scenario: In the bearish version, the price breaks above a key swing high, appearing to continue an uptrend. Yet, within one or two candles, it reverses and closes back below the swing high, indicating bearish momentum as long traders scramble to exit. Fakeout Swing Reversal Pattern: EUR/USD Daily Candle Chart Past performance is not a reliable indicator of future results Key Elements for Execution • Entry Trigger: Traders typically enter after the reversal candle closes, confirming the fakeout. • Stop Placement: Stops are often placed just beyond the extreme of the fakeout candle, keeping risk tightly managed. • Targets: Initial targets may be the midpoint of the prior range or a key support/resistance level, with traders adjusting based on market conditions. Successful and Failed Signals: A Reality Check No pattern works flawlessly every time, and the Fakeout Swing Reversal is no exception. Successful signals offer strong potential, but managing failed trades is equally, if not more, critical. How you handle losses defines your trading discipline and long-term success. On EUR/USD’s recent daily chart, we can identify several instances of this pattern, showcasing its effectiveness in both bullish and bearish scenarios. Some of these signals led to rewarding reversals, while others quickly invalidated, reminding us of the need for a clear plan to handle both outcomes. Examples: EUR/USD Daily Candle Chart Past performance is not a reliable indicator of future results Factors Influencing the Pattern's Effectiveness Several elements impact the success of the Fakeout Swing Reversal pattern: 1. Momentum Leading into the Test: Strong momentum approaching the swing high or low can increase the likelihood of a breakout. 2. Strength of the Fakeout: A sharp rejection after the breakout adds credibility to the reversal. 3. Prevailing Trend: Patterns aligned with the long-term trend often have a higher probability of success. Managing Trades: Cutting Losers and Letting Winners Run Cutting Losers Early: When this pattern works, it tends to work quickly, so if the reversal doesn’t play out promptly, consider exiting early. By cutting losers short, you keep the size of your average losing trade small, preserving capital for better opportunities. Letting Winners Run: Reversal trades inherently go against short-term momentum, making it challenging to let winners run. However, traders can manage this by taking partial profits at key levels and moving their stops to break even. This approach protects gains while allowing the trade room to capitalise on a sustained move. By understanding the nuances of the Fakeout Swing Reversal pattern and applying disciplined risk management, traders can add a robust swing trading strategy to their trading arsenal. 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. 82.67% 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.
Education
by Capitalcom
4
How I identify the best forex pairs to trade:Here is how I identify the best forex pairs to trade: In the top left panel, the indicator 'Compare Forex' displays the PERFORMANCE of each major currency. The USD (red line) has been the strongest currency for the past 2 months on H6 charts. By identifying the strongest currency, all that remains is to trade the USD against all the other currencies since they are weaker. = Smooth stress-free charts. I look at my trades 2-3 times a day to see if they are still blue or red. Takes a few minutes.
Education
by ascension
13
Treasury yields at a crossroads? The implications for marketsThe long end of the US Treasury curve has been influential for FX markets recently. The rolling 10-day correlation between US 10-year yields with the DXY, EUR/USD, GBP/USD, and USD/JPY is either strongly positive or negative. Even gold shows a notable -0.73 correlation, highlighting the influence of long bonds on broader markets. Given the inverse relationship between bond yields and prices, it’s no surprise that the correlation between 10-year yields and 10-year Treasury futures (shown in orange, left-hand pane) has been nearly perfectly negative over the past two weeks. In terms of directional risks for yields moving forward, the right-hand pane showing US 10-year Treasury note futures is instructive. The price remains in a downtrend, repeatedly rejected since being established October. If this trend persists, it signals lower prices and higher yields. That said, with the bullish hammer candle from the lows last week, coupled with RSI (14) and MACD which are providing bullish signals on momentum, you get the sense we may be in the early stages of a turning point. If we were to see the price break the downtrend, resistance may be encountered at 113’00, a level that’s been tested from both sides in recent weeks. If that were to give way, it points to an environment of a softer US dollar and kinder conditions for longer duration assets and commodities. Good luck! DS
CBOT:TN1!Education
by FOREXcom
1
Elliot waves meets Fibonacci [Educational]Hello everyone, today I like to share how I use elliot waves combined with fibonacci to analyze the market. The standard rules are: - Wave 2 can now be lower then the start of wave 1 - Wave 3 should be the longest - Wave 4 should not breach the high of wave 1 But to have a more objective view there are also price targets to be reached within the different waves. It's a complex subject to show in one chart, so feel free to ask in the comment section if you have any questions.
BITFINEX:BTCUSDEducation
by Kyrean
7
Streaming Wars | Who’s Winning, Losing, and Sharing Passwords ?Netflix Is Laughing, Cable Is Crying, and Amazon Is Sneaking Up Highlights for Today - Trends and Market Share - Disney: Streaming Profits on the Rise - Comcast: Cable Restructuring Underway - Warner Bros : Box Office Challenges - Paramount: Streaming Growth Amidst Challenges In the Battle for Loyalty, One Fact Stands Out: Netflix vs the Rest 1. Trends and Market Share Platforms like YouTube Premium, Amazon Prime, and Apple TV+ do not report quarterly numbers. Additionally, Disney+ Hotstar is excluded due to its planned merger with Reliance in 2025. Streaming continues to replace traditional linear TV, benefiting all players. Nielsen reports streaming comprised 41% of US TV time in September 2024, a 3.5-point increase year-over-year, primarily at Cable’s expense. Key Trends to Watch -Password-Sharing Crackdown: Following Netflix’s success, Disney introduced paid sharing in the US in late September, with effects expected to emerge in Q4. Max is also gearing up for this initiative. -Amazon Prime’s Growing Presence:CEO Andy Jassy revealed that Prime Video attracts over 200 million global viewers monthly. Combining exclusive content, live sports, and e-commerce integration, Amazon’s ecosystem presents a credible challenge to Netflix. -YouTube’s Dominance in Living Rooms: YouTube accounts for over 25% of US streaming TV time (excluding YouTube TV) and continues to grow. Alphabet disclosed that YouTube’s ads and subscriptions brought in $50 billion in revenue over the last 12 months, surpassing Netflix’s $38 billion. -Subscriber Trends: Tentpole events, like the Olympics for Peacock or hit series like House of the Dragon for Max, drove sign-ups. However, retention remains a challenge for all but Netflix. 2. Disney: Streaming Profits Rise Disney’s fiscal year ends in September, with Q3 FY24 covering the June quarter. -Streaming Profits:Disney’s direct2consumer (DTC) segment, which includes Disney+, Hulu, and ESPN+, posted its second consecutive profitable quarter, generating $321 million in operating income. Core Disney+ subscribers rose by 4.4 million, reaching 123 million, driven by ad-supported tiers. -Box Office Wins: Hits like Inside Out 2 and Deadpool & Wolverine powered $316 million in studio profits. Disney became the first studio to surpass $4 billion in global box office revenue in 2024. - Challenges in Parks: Parks and Experiences revenue dropped 6% to $1.7 billion, impacted by hurricanes, rising costs, and competition from the Paris Olympics. Domestic attendance held steady, while international parks struggled. - Linear TV Decline: Revenue fell 6%, with profits plunging 38% to $498 million as cord-cutting and reduced ad sales weighed heavily. Disney plans to integrate streaming and linear TV rather than divest assets. - Optimistic Outlook: Disney expects earnings growth in FY25 (high single digits) and double digits in FY26 and FY27. Blockbusters like Moana2 and Mufasa:The Lion King are anticipated to maintain momentum. Takeaway: Disney’s Q4 highlighted strides in its streaming turnaround, buoyed by box office wins. However, the decline in linear TV underscores the challenges of transitioning in a shifting media landscape. Strong content and a focus on profitability position Disney for success under Bob Iger’s leadership. 3.Comcast: Cable Restructuring -Olympics Drive Growth:The Paris Olympics boosted NBCUniversal’s revenue by 37%, generating $1.2 billion in advertising and adding 3 million Peacock subscribers, which now total 36 million. -Streaming Expansion: Peacock’s revenue rose 82% year-over-year to $1.5 billion, with losses narrowing to $436 million from $565 million last year. -Cable Struggles: Cord-cutting led to a loss of 365,000 cable TV subscribers, with video segment revenue down 6.2%. Comcast is exploring a spinoff of cable networks like Bravo and CNBC to prioritize growth areas. -Theme Parks Slow: Theme park revenue dipped 5% to $2.3 billion as domestic attendance normalized post-COVID. -Broadband Trends:Despite losing 87,000 broadband customers, revenue increased 3%, with higher average revenue per user. Takeaway:Comcast’s Q3 reflected both opportunities and challenges. While the Olympics showcased its media strength, declines in cable TV and theme parks persist. Streamlining through a cable spinoff could sharpen its focus, but sustaining growth in Peacock and broadband remains critical. 4.Warner Bruh : Box Office Challenges -Streaming Growth:Max gained 7.2 million subscribers, reaching 110.5 million globally, supported by international expansion and hits like *House of the Dragon*. Streaming revenue rose 9%, marking Warner’s first profit since 2022. -Box Office Struggles:Studio revenue declined 17%, with theatrical revenue falling 40% due to a weaker film slate (*Beetlejuice Beetlejuice* and *Twisters* compared to last year’s *Barbie*). Video game revenue dropped 31%. -Mixed Network Results:Network revenue grew 3% from the Olympics and *Shark Week*, but advertising revenue fell 13%. The $9.1 billion NBA impairment from Q2 continues to loom. -Debt and Cash Flow Issues:** Free cash flow dropped 69% to $632 million, with $41 billion in debt. Warner renewed its Charter Communications deal to bolster stability. -CEO’s Confidence:David Zaslav emphasized Max’s momentum, projecting $1 billion in streaming profits by 2025 and hinting at password-sharing monetization. Takeaway:Warner’s Q3 highlighted streaming success but underscored its dependence on Max as traditional film and TV segments falter. Balancing debt, declining cash flow, and expanding streaming profitability will be key to its stability. 5.Paramount: Streaming Growth -Streaming Success:Paramount+ gained 3.5 million subscribers, reaching 72 million, thanks to sports like the NFL and UEFA and shows like *Tulsa King*. The streaming unit achieved a $49 million operating income, its second consecutive profitable quarter. -TV and Film Challenges:TV revenue fell 6% due to lower ad sales and declining cable subscribers. The film division saw revenue plummet 34%, with theatrical revenue dropping 71%. -Merger Progress:Paramount’s merger with Skydance Media is on track for early 2025, following the exploration of 12 potential bidders. -Cost-Cutting:Paramount has completed 90% of its $500 million cost reduction initiative, resulting in layoffs and asset write-downs. -Strategic Shift:Paramount is seeking a streaming joint-venture partner to better compete with Netflix and Disney while managing cable TV’s decline. Takeaway: Paramount’s streaming gains are encouraging, but traditional TV and film struggles persist. The Skydance merger offers a potential transformation, though stabilizing legacy businesses remains a significant hurdle.
NASDAQ:CMCSAEducation
by moonypto
15
Long-Term Investment: Building Wealth for the FutureHave you ever thought about the astounding fact that the S&P 500 has achieved approximately a 10% average annual return over the last ninety years? This statistic serves as a powerful reminder of the effectiveness of long-term investment strategies for accumulating wealth. In contrast to short-term trading, long-term investing emphasizes the gradual growth of your financial assets through the benefits of compounding returns and the overall growth of the market. Yearly Chart of the S&P 500 For individuals seeking financial security and stability, embracing a long-term investment approach is essential. This strategy involves holding onto investments—such as stocks, bonds, or real estate—over extended periods, enabling them to endure market volatility and benefit from economic growth. By concentrating on long-term objectives, you establish a strong foundation for sustainable wealth, making it suitable for those in pursuit of financial independence and a prosperous future. Grasping the fundamentals of long-term investing and applying effective strategies can help you sidestep impulsive decisions and distractions associated with short-term market movements, keeping your attention focused on achieving lasting wealth. - The Importance of Long-Term Investments for Wealth Creation - Long-term investments are crucial for wealth creation, primarily because of the advantages of compound returns. Compounding allows your initial returns to generate further earnings, leading to exponential growth over time. The longer you stay invested, the more substantial the effects of compound interest become, facilitating significant wealth accumulation. Consider this example: if you invest $10,000 at an 8% annual interest rate, at the end of the first year, your investment will grow to $10,800. In the following year, interest is calculated on $10,800 rather than the original $10,000, boosting the total to $11,664. Over decades, this compounding phenomenon can lead to remarkable increases in wealth, underscoring the effectiveness of long-term investments. In addition to the benefits of compounding, long-term investments help mitigate risk. While short-term market fluctuations can be erratic, historical evidence shows that markets generally trend upward over time. Holding investments over more extended periods allows you to ride out volatility and avoid rash decisions during downturns. This approach encourages a mindset of patience and commitment, reducing the likelihood of common errors, like panic selling during market declines. Achieving success in long-term wealth accumulation requires a disciplined approach—sticking to your investment plan despite market fluctuations. Coupled with the advantages of compound interest, long-term investing becomes a dependable pathway toward financial growth and the fulfillment of your aspirations. - Key Long-Term Investment Options - When considering your options for long-term investments, it's imperative to assess choices based on your risk tolerance, growth prospects, and their alignment with your broader financial strategy. Here are several proven avenues for long-term investors to explore: 1 - Stock Market The stock market is a favorite among long-term investors, offering multiple avenues for wealth-building. Index funds and Exchange-Traded Funds (ETFs) are particularly appealing due to their broad market exposure. Index funds are designed to track major indices such as the S&P 500, which has historically provided an average annual return of around 10% over the past nine decades. These funds are not only cost-effective but also inherently diversified, making them an excellent choice for novice investors and experienced portfolios alike. ETFs share many similarities with index funds but offer more flexibility as they can be traded like individual stocks. For those inclined to take a more active role, investing in individual stocks can be rewarding, provided thorough research is conducted and a focus is maintained on companies with strong growth potential. However, it's essential to balance investments in individual stocks with safer alternatives, especially within a long-term strategy. 2 - Real Estate Real estate represents another robust option for long-term investing, known for generating consistent returns through property appreciation and rental income. It provides a tangible asset, generating ongoing cash flow and serving as a hedge against inflation. Historically, property values have shown a tendency to increase over time, making real estate a fundamental piece of many long-term wealth-building strategies. Investing in real estate can take various forms, such as acquiring residential or commercial properties, or investing in Real Estate Investment Trusts (REITs), which allow for real estate investment without the need for direct management. Leveraging real estate through mortgages can maximize its potential as a long-term wealth generator, although it’s crucial to consider associated costs like property maintenance and taxes. Key factors to consider when investing in real estate include location, property condition, and prevailing market trends. Properties situated in high-demand or growing areas usually appreciate at a faster rate and tend to attract more reliable tenants. Understanding local market dynamics and regulations can enhance your investment decisions and outcomes. 3 - Bonds Bonds are often regarded as the safety net within an investment portfolio, providing stable and fixed income, along with lower volatility compared to stocks. They are well-suited for investors who prioritize security or are approaching retirement. Government bonds, such as U.S. Treasury bonds, are typically the safest option but come with lower yields, while corporate bonds offer higher returns but carry additional risks. Incorporating bonds into your investment portfolio can help cushion against stock market fluctuations, ensuring steady returns and protection from extreme volatility. For beginners, bonds can particularly aid in maintaining portfolio stability over time. When considering bonds, it’s essential to evaluate the issuer's credit rating, as this significantly influences the bond's risk profile. Higher-rated bonds (e.g., AAA) tend to be less risky but offer lower returns, while lower-rated bonds (e.g., junk bonds) may yield higher returns at an elevated risk. Diversifying your bond holdings across different issuers and maturities can also aid in risk management. 4- Retirement Accounts (401(k), IRAs) Retirement accounts such as 401(k)s and IRAs are vital for accumulating wealth in a tax-efficient manner. These accounts afford substantial tax benefits: contributions to traditional IRAs and 401(k)s are tax-deductible, with earnings growing tax-deferred until retirement. Roth IRAs necessitate after-tax contributions, enabling tax-free withdrawals in retirement. Retirement accounts facilitate consistent investing over decades, capitalizing on employer matching programs available with 401(k)s. This type of compounding can transform modest contributions into significant sums, making retirement accounts a crucial vehicle for long-term financial success. When utilizing retirement accounts, it’s important to contemplate your retirement timeline and the investment options within these accounts. Traditional accounts may be advantageous for those expecting to be in a lower tax bracket during retirement, while Roth accounts could benefit individuals anticipating higher tax burdens in the future. Regular reviews and adjustments based on your investment goals and risk tolerance are also essential. - Crafting a Long-Term Investment Strategy - Creating a long-term investment strategy entails careful planning and steadfast execution. Whether you are embarking on your investment journey or refining an existing plan, these steps will guide you towards sustainable financial growth: 1- Define Your Financial Goals and Assess Risk Tolerance Before diving into investments, outlining your financial objectives and understanding your risk tolerance are critical. Clarify what you aim to achieve—be it retirement preparation, purchasing a home, or funding education. Clearly defined goals will steer your investment choices and help you remain focused during market fluctuations. Equally important is gauging your risk appetite. Younger investors typically have the flexibility to take on more risk, while those nearing retirement may gravitate towards conservative strategies that emphasize capital preservation through bonds and lower-risk assets. For instance, if you aim to retire in 30 years, a portfolio with a heavier allocation to stocks may be appropriate, given their potential for higher returns despite short-term volatility. Conversely, those closer to retirement may want to shift towards bonds and dividend-paying stocks to reduce risk while ensuring a consistent income. 2- Diversify Your Portfolio Diversification is an integral aspect of any long-term investment strategy. It involves allocating your investments across different asset classes—stocks, bonds, and real estate—to mitigate risk. By diversifying, you shield your portfolio from the detrimental effects of poor performance in any one area. For example, if equities suffer during an economic downturn, your bond or real estate investments may yield positive returns, buffering against significant losses. This balanced approach is key to navigating market volatility and enhancing overall performance. Additionally, consider diversifying within asset classes. In the stock segment, this may involve investing in various sectors and industries. For bonds, diversification means holding an array of types with varied maturities and credit ratings. A well-structured portfolio could include a mix of domestic and international stocks, government and corporate bonds, in addition to real estate investments. By broadening your investments across asset classes and geographical areas, you effectively mitigate risks tied to any single investment or market. 3- Implement Dollar-Cost Averaging Dollar-cost averaging is a strategy that entails investing a fixed amount at regular intervals, independent of market conditions. This approach allows you to buy more shares when prices are low and fewer when they are high, gradually reducing your average cost per share over time. This method helps mitigate the emotional impact of market volatility, proving particularly beneficial for novice investors. By focusing on the long-term while minimizing the effects of short-term fluctuations, dollar-cost averaging can promote the growth of your wealth. To optimize dollar-cost averaging, consider setting up automatic contributions to your investment accounts. This ensures consistent investment practices and makes it easier to resist impulsive decisions based on market activity. 4-Regularly Rebalance Your Investments Over time, some of your investments may outperform others, resulting in your portfolio shifting away from its intended allocation. For example, if stocks exceed bonds in performance, your portfolio may become skewed toward equities. To maintain your desired risk profile, it is crucial to periodically rebalance your investments. Rebalancing involves selling portions of assets that have performed well and reinvesting the proceeds into underperforming assets, thus maintaining your risk tolerance and capturing growth opportunities in undervalued investments. Keeping your portfolio aligned with your long-term strategy fosters steady financial growth. Establish a rebalancing schedule that corresponds with your investment style and market conditions. Some investors may opt to rebalance annually, while others might prefer quarterly or semi-annual adjustments. Additionally, consider rebalancing in response to significant market changes or personal circumstances that impact your financial goals or risk appetite. 5- Review and Refine Your Strategy Long-term investing necessitates ongoing attention. Regularly reviewing your portfolio, monitoring performance, and adjusting your strategy according to shifts in your goals or market conditions can help keep your investments aligned with your objectives. Conducting yearly reviews or quarterly assessments enables you to stay on track and make informed decisions. Monitoring entails evaluating how your investments stack up against your goals and making adjustments when necessary. For instance, if there’s a substantial change in your risk tolerance due to major life events such as marriage or retirement, you may need to alter your asset allocation accordingly. Stay updated on market trends and economic indicators that may influence your investments. While it’s important to avoid overreacting to short-term market changes, being informed allows you to make educated decisions and adapt your strategy when the situation demands it. By adhering to these principles and embracing a long-term perspective, you can lay the groundwork for substantial wealth accumulation and financial independence in the future. ✅ Please share your thoughts about this article in the comments section below and HIT LIKE if you appreciate my post. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
SP:SPXEducation
by FOREXN1
11
BTCUSD - Using Fibonacci To ScalpGood morning everyone! A bit of a different video today - more of an educational video. This is how I use fibonacci when I do trading. Over the last couple days, Bitcoin has been a great asset to scalp. I don't leverage trade often, but when I do, I try and look for the high probability setups. Using the 61.8% internal retracement fibonacci (fib) level, you can find a great place to make a trade, both long or short. After dropping from 93k to 88k, we can measure that move and find where the price action would move 61.8% within it. That's where you attack. Risk management? Well, from there, you need to give yourself some wiggle room. As you can see from the video, price action navigated within my stop territory, but you can use the 78.6% fib level (beyond the 61.8 level) as a stop. Typically, if price action gets to that 78.6% level, it's not going to stop. Target? I outlined two ways to get a target, but typically when you do get a rejection off that 61.8, you should be targeting the -23.6% fib extension target. That's basically exactly where bitcoin landed - around 87k. That is the general rule of thumb when trading with fibonacci - which as I mentioned in my video update - is one of the ONLY leading indicators - meaning it can give you insights into the future vs just explaining in many ways what has already happened. Have a great day everyone!
Education
by bitdoctor
10
Grasping Forex Volatility: How to Trade in Choppy & Calm WatersWhen it comes to the forex market , volatility isn’t just a side effect—it’s the main event. The constant ebb and flow of currency prices can be exhilarating or exasperating, depending on how good you are. Volatility can shift from a calm sea to a rogue wave, often without warning, leaving traders either riding high or clutching their lifebuoys. To help you navigate the forex waters like a pro, especially if you’re a newcomer, we’ve whipped up this Idea with some key insights and revelations. The Art of Trading During High Volatility High volatility tends to be thrilling—big price swings, rapid moves, and plenty of adrenaline. For the well-prepared trader, these market conditions are like surfacing a giant wave; the payoff can be huge, but it demands skill, timing, and control. Why High Volatility Happens Interest rate announcements, economic releases, geopolitical turmoil—high-impact events send volatility soaring. During these times, spreads can widen, price slippage creeps in, and liquidity often gets tighter, making precision essential. While the reward potential is high, the risks are right there with it. Think of high-volatility periods as power tools; they’re incredibly effective in the right hands but can quickly cause damage if used recklessly. Strategizing in the Fast Lane When volatility spikes, flexibility is key. One popular approach is to shorten your trading timeframe. Rather than holding out for the moon, focus on capturing smaller, rapid gains and set tighter stop-loss levels to limit downside. Pay attention to the economic calendar —if the Federal Reserve is set to speak, or if non-farm payrolls data is due, get ready to adapt fast. And if you’re following price trends, make sure to use a healthy dose of confirmation bias: watch those moving averages , MACD signals , and RSI readings , and let them do their job before you jump in. Finding Opportunity in Low Volatility Markets At the opposite end of the spectrum, low volatility often gets a bad rap. Price moves seem sluggish, the market consolidates, and excitement seems as far away as Friday on a Monday. But low volatility doesn’t mean no opportunity. It simply requires a shift in tactics. Why Markets Go Quiet Periods of low volatility often occur in the absence of major news or when traders are holding back, waiting for an upcoming event. These consolidating markets are common around holidays, just before important announcements, or in times of economic stability. Reading Between the Lines Trading in a low-volatility environment means you’re often dealing with range-bound markets. Here, the game is all about patience and precision. Use support and resistance levels as guardrails—when prices reach the top of a range, it’s often time to sell; when they reach the bottom, consider buying. But a word to the wise: low volatility doesn’t stay that way forever. A period of consolidation can quickly give way to breakout action. Keep an eye on breakout indicators like Bollinger Bands ; when they start expanding, it might signal the market’s about to wake up from its nap. Choosing the Right Pair Certain currency pairs are naturally more volatile than others. Major pairs like EUR/USD , GBP/USD , and USD/JPY see consistent action due to their high trading volume, but if you’re hunting high-pitch volatility, take a look at pairs like GBP/JPY , EUR/JPY , or any pair involving emerging market currencies like the Mexican Peso or South African Rand. Keep in mind, though, that with higher volatility comes a need for tighter risk control. On the other hand, when markets are in a lull, the majors are often your best bet. During low-volatility periods, the big, liquid pairs are less prone to the kind of wild fluctuations that can eat away at gains. Trading low-volatility pairs in a low-volatility market can keep you out of whipsaw territory and add some consistency to your returns. Leverage: Powerful yet Dangerous, and Not Always Your Friend Let’s get something straight: leverage in a high-volatility market can be like playing with fireworks. It’s all great until you get burned. When markets are moving fast, a little leverage goes a long way, but too much can quickly wipe out gains (and accounts). Dialing down leverage during volatile times can keep your trade within control without losing out on potential returns. In low-volatility markets, leverage might seem tempting as a way to amplify those smaller moves. But here’s the catch—just because volatility is low doesn’t mean you’re free from risk. Markets can turn on a dime, and it’s always better to live to trade another day. Use leverage sparingly, no matter what the market mood may be. Liquidity: The Grease That Keeps the Forex Machine Running Smoothly If volatility is the main character, then liquidity is the supporting cast, keeping everything steady when the markets get choppy. High liquidity—think major pairs like euro-dollar and dollar-yen—means your orders are filled fast and spreads stay tight, giving you a bit of breathing room. But liquidity can shrink fast in low-volume sessions, during major events, or with exotic pairs. That’s when spreads can widen unexpectedly, slippage sneaks in, and you might get more excitement than you bargained for. When volatility is high, liquidity can drop as big players step back, causing prices to jump erratically between buy and sell points. If you’re trading into the storm, consider the liquidity squeeze a warning: stick with high-liquidity pairs, watch those spreads, and avoid getting caught in thin markets. In fast-moving conditions, liquidity is your safety net, so stick with the pairs that offer deeper pools of it. In low-volatility markets, liquidity is usually stable. With tighter spreads and less risk of slippage, low-volatility conditions let you plan range-bound trades with more confidence. It’s one of the perks of low volatility: while big moves may be rare, the market structure tends to hold, keeping your trades smoother and more predictable. The Bottom Line: Volatility is a Double-Edged Sword High or low, volatility is something every trader has to contend with. The key is to approach it with strategy, patience, and adaptability. Anyway, here’s the advice you didn’t ask for: in high-volatility times, trade quickly, tighten your stops, and keep your leverage modest. In low-volatility environments, embrace the calm, focus on range trading, and don’t fall asleep on potential breakout signals. The forex market rewards those who play by its rules, adapt to its moods, and respect its risks. So, what kind of trader are you? Do you chase the thrill of big moves, or find comfort in the steadiness of a quiet market? Share your thoughts below!
Education
by TradingView
7
How to Analyze a Cryptocurrency: Fundamental & Technical StyleCrypto is fashionable again (was it ever out of fashion?), with Bitcoin BTCUSD pumping to a new all-time high above $82,000 . But with all that buzz and excitement, it’s easier than ever to get swept away in the tide of social media hype, viral memes, and “expert” Telegram signals chats. Is that real success in crypto trading? Not exactly. Real success requires more than just blindly following the noise. The savvy investor knows how to analyze a coin, piecing together a mosaic of factors to make some trading choice. Let’s break down 🤸‍♂️ how to do this effectively. When looking to analyze a cryptocurrency, there are two distinct approaches you’d want to consider — fundamental and technical analysis. This pair of viewpoints cuts through the noise and gets to the real story behind a coin. Coupling them together can be a powerful recipe for success. The Basics: Why You Need Both Fundamentals and Technicals Crypto analysis is all about the combination of fundamental and technical approaches. Fundamental Analysis (FA) helps you determine whether a cryptocurrency holds long-term potential based on its real-world application, team, and project structure. Technical Analysis (TA) lets you gauge market sentiment and potential price moves by analyzing past price actions and trends. Master both, and you’ve got yourself a complete toolkit. FA tells you if a coin is worth your time, and TA lets you fine-tune your entries and exits. Fundamental Analysis: Reading Between the Blockchains Fundamentals give you the long-term view—what a project stands for, what problems it’s solving, and whether it has staying power. A coin with solid fundamentals usually has a strong foundation, dedicated team, and clear purpose. Here are a few key aspects to evaluate: Use Case: Does This Coin Do Anything Useful? Not all coins are created equal, and some are, well… kind of a pointless joke, or created to be a pointless joke but turned out to be a big deal (did anyone say Doge DOGE/USE ?) If you want a real-world use case, look at Ethereum ETH/USD — it opened up the entire decentralized finance (DeFi) and smart contract universe. Now compare that to yet another dog-themed token. The key is to ask yourself: does this coin solve a real-world problem, or is it banking on social media likes? A strong use case equals a stronger shot at lasting value. Team and Leadership: Who’s Running the Show? The team behind a coin is often the make-or-break factor. You want to see solid, experienced people who’ve been in the space and know their stuff. Look for LinkedIn profiles, past projects, and what industry insiders are saying. Pro tip: if you can’t find the team anywhere online, or if their CEO goes by something like “CryptoKing” on Reddit or Telegram, proceed with caution (or dump it). Investors and Backers: Who’s Got Skin in the Game? In crypto, a solid roster of backers can be like a seal of approval — big-shot VCs, famous angel investors, or major blockchain funds often bring more than just cash. Big names like Andreessen Horowitz (a16z) or Pantera Capital backing a coin? That’s a good sign as they likely see something worth the investment. But let’s keep it real: even the pros get it wrong. Sequoia’s high-stakes investment in FTX? That didn’t age well. It went from a headline win to a headline regret. The lesson? Big names can be a great vote of confidence, but they’re no substitute for doing your own homework. Dig into how engaged these investors are. Are they making decisions or are they just a logo on the website? If they’re actually involved, it adds weight. Just remember: your best edge comes from putting in the research, not just riding on who’s along for the ride. Partnerships and Network: Are They Walking the Talk? A strong project is often backed by legitimate partnerships. Real collaborations with reputable companies from the industry show a coin has a foothold in the market, a strong network. But watch out for overblown claims—a name drop isn’t the same as a partnership. The best projects are the ones where you can verify the collaborations and see real interaction. Technical Analysis: Getting the Pulse of the Market If FA tells you what a coin is, TA tells you how it’s behaving in the market. TA is all about catching trends, spotting patterns, and getting the timing right. Here’s where to start: Indicators to Watch: Moving Averages, RSI, and MACD Moving Averages (MA): These smooth out price action to show you the market’s general direction. A 50-day MA crossing above a 200-day MA? That’s usually a bullish sign . Relative Strength Index (RSI): The RSI tells you if a coin is overbought (above 70) or oversold (below 30), signaling potential reversals . MACD (Moving Average Convergence Divergence): When the MACD line crosses above the signal line, it’s a buy signal; below, it’s a sell signal. This helps you ride momentum without getting whipsawed. Chart Patterns: Know Your Shapes Patterns like head and shoulders, double tops/bottoms, and trend lines are your map to market sentiment. Look for breakouts past resistance levels or breakdowns below support as entry and exit points. But stay flexible — that’s crypto and things can change on a dime. Meme Coins and the Hype Machine: Beware the FOMO If you’ve been in the crypto game for any time at all, you’ve seen the lure of meme coins. From Dogecoin to Shiba Inu, these coins have made some people rich — but they’ve also created some bagholders. Don’t Chase Trends: Just because a coin is all over TikTok doesn’t mean it’s a wise investment. Meme coins often rely on community-driven hype rather than any real-world utility. FOMO is the quickest way to make a costly mistake. Be Wary of Telegram and Discord “Tips”: While some groups are genuinely insightful, many operate more like echo chambers. If your trading strategy is “I saw it in a chat,” it might be time to rethink your approach. Look for projects with substance, not just the latest meme. Bringing It All Together: Using FA and TA for Smarter Trades Blending FA and TA lets you go beyond hype. Here’s a solid plan to put these tools to work: Research the Fundamentals: Assess if a project has real value based on its use case, team, and partnerships. Look for Technical Confirmation: Use technical analysis to decide the best time to enter and exit. Set Goals and Limits: Establish your profit targets and stop-loss points before you buy. Crypto trading is part science, part art. Fundamental analysis gives you the big picture, while technicals keep you tuned in to market conditions. Use them together, and you’ll be a lot less likely to end up with a token that’s only valuable for a while. Final Take: Follow the Data, Not the Crowd Crypto success isn’t about catching the latest Twitter trend — it’s about staying grounded in facts and making decisions based on data, research, and analysis. Use FA to pick projects that last and TA to catch price action at the right time. So, Which Type of Analysis Do You Prefer? Are you more of a fundamentals fan, focusing on the project’s long-term vision and team? Or do you live by the charts, riding trends and tracking indicators? Maybe you’re a mix of both? Whichever camp you fall into, we’d love to hear your thoughts. Drop a comment and share your go-to analysis strategy—let’s get the conversation started!
BITSTAMP:BTCUSDEducation
by TradingView
13
Mastering the Anchored Volume Profile: Setup & Tutorial on TVMastering the Anchored Volume Profile: Setup & Tutorial on TradingView 📊 The Anchored Volume Profile is a powerful tool that traders use to visualize volume distribution over a specified price range, providing critical insights into market behavior. Here’s a detailed description of its setup and usage on TradingView: In this video, we will be going in-depth into the following areas: What is the Anchored Volume Profile? The Anchored Volume Profile is a specialized indicator that helps traders understand the distribution of traded volume at different price levels. Unlike traditional volume profiles that analyze data over a fixed time period, the anchored version allows traders to anchor the volume analysis to specific bars, candles, or price points. Why Use the Anchored Volume Profile? Identifying Support and Resistance Levels: You can easily identify key support and resistance levels by analyzing where the most volume has been traded. Spotting Trends and Reversals: High-volume nodes can indicate areas of strong interest, helping to predict potential trend continuations or reversals. Improving Entry and Exit Points: Knowing where the market participants are most active can significantly enhance your decision-making process for entries and exits. How to set up the Anchored Volume Profile on TradingView: Add the Anchored Volume Profile Indicator: Click on the “Indicators” button at the top of the chart. Search for “Anchored Volume Profile” in the search bar. Select it from the list and apply it to your chart. Anchor the Indicator: Click on the anchor icon that appears on the chart. Drag it to the specific bar, candle, or price point where you want to start your volume analysis. Customize Settings: Adjust the settings to suit your trading style. You can modify the range, color, and other parameters to better visualize the data. Using the Anchored Volume Profile: Analyzing Volume Nodes: Identify high and low volume nodes. High volume nodes often act as support or resistance, while low volume nodes might indicate potential breakout areas. Understanding Market Sentiment: See where the majority of trading activity has taken place to gauge market sentiment. Making Informed Decisions: Use the insights from the volume profile to make better-informed trading decisions regarding entries, exits, and stop-loss levels.
NASDAQ:TSLAEducation
by RonnieV29
21
Leap Competition: Top 3% in 5 Days! Here's HowLast competition, I hit the top 2% in the Leap Competition on TradingView. This time, though, something clicked. In just 5 days, I was already back in the top 3%. I didn't change my strategy. Instead I focused on refining how I managed risk. I stopped obsessing over perfect entry points and focused on squeezing as much profit as possible from each trade. That meant shifting to a new management technique. I prioritized a high risk-to-reward ratio, knowing that fewer trades could yield better returns. By using a trailing stop-loss, each trade had room to reach its potential without getting cut off too soon. This approach transformed each trade into a high-upside opportunity, letting winners ride and securing profits along the way. Over the last few days, I made fewer than ten trades. Each one was carefully planned through a top-down approach, looking at the bigger picture on higher timeframes to catch the market’s broader trends. This view kept me aligned with the trend, setting up trades with stronger potential. What really amplified my results, though, was the trailing stop. By locking in profits while riding the market’s momentum, this tool turned profitable trades into standout winners. It let me capture each market move fully without jumping out too soon. Now, let’s get into the top trade that helped me to get into top 3% within less than a week: And here’s the trailing stop-loss indicator I’m using—perfect for trades with room to run: //@version=5 indicator("Swing Low Trailing Stop", overlay=true) // User Inputs initialStopPercentage = input.float(0.5, title="Initial Stop Loss Percentage", minval=0.01, step=0.01) * 0.01 Swing_Period = input.int(10, "Swing Period") i_date = input.time(timestamp("05 Nov 2024 00:00 +0300"), "Start Date") // Variables for tracking stop loss var float stopLossPrice = na var float lastSwingLow = na // Calculate Swing Low swingLow = ta.lowest(low, Swing_Period) // Logic if i_date == time stopLossPrice := low * (1 - initialStopPercentage) lastSwingLow := swingLow // Update Stop Loss if time > i_date newSwingLow = swingLow if (newSwingLow > lastSwingLow ) stopLossPrice := math.max(stopLossPrice, newSwingLow) lastSwingLow := newSwingLow // Plot the stop loss price for visualization plot(time >= i_date ? stopLossPrice : na, title="Trailing Stop Loss", color=color.red, linewidth=2, style=plot.style_linebr) With this refined approach, I can’t wait for next week and the fresh opportunities that lie ahead! Big thanks to the TradingView community for creating opportunities like this competition—it’s a game-changer. Getting to test and refine strategies in a real, competitive environment pushes all o us to get better every day! If you haven’t joined already, make sure to hop into the competition . It’s an incredible way to challenge yourself, sharpen your skills, and see how you stack up against other traders! Keep focusing on becoming 1% better every day if you want to make this happen. Moein
COINBASE:ETHUSDEducation
by Fractalyst
2
EDUCATION: The “Fake” Engulfing Candle: A SNEAKY TRAPAs traders, we’re often taught to look for classic price action patterns, and one of the most well-known is the Engulfing Candle. It's that strong reversal pattern where the body of the second candle completely engulfs the body of the first, signaling potential trend reversals or continuations. But what happens when that engulfing candle shows up in the "wrong" place? That’s what I like to call a "Fake" Engulfing Candle. A "Fake" Engulfing Candle is one that paints on the chart but in a location that doesn’t align with the market context or trend. For example, if you’re in a strong, established trend, an engulfing candle that appears in the middle of the trend (without any supporting structure or context) could be a false signal. This kind of engulfing candle might look great on the chart, but it's not telling you the full story—it’s a signal with poor timing. Understanding the Importance of Location The location of an engulfing candle is key. A "real" engulfing candle typically forms after a clear trend exhaustion or at a key support or resistance level. These are areas where price is likely to reverse, and that’s where an engulfing pattern becomes meaningful. However, when the engulfing candle appears in random locations—without any clear structure around it—it’s often just noise in the market. Fake signals, like this, can lead traders to make impulsive decisions, chasing trades that aren’t supported by solid market structure or context. Think of it like walking into a room full of noise—you may hear words, but they’re not telling you anything meaningful. How to Spot a Fake Engulfing Candle Context is King: Look for the engulfing candle to form after a trend exhaustion or near a key support or resistance level. If it pops up in the middle of a strong trend with no visible reason for reversal, chances are it’s a fake. Volume Confirmation: Is the engulfing candle supported by volume? A strong engulfing candle should have an increase in volume, confirming the strength of the move. If volume is absent or weak, the signal may be unreliable. Previous Market Structure: The best signals often come from patterns that align with previous market structure, such as previous highs or lows. If the engulfing candle doesn’t respect any major levels or swing points, it might not be worth trading. Practical Takeaway: Don't Fall for the Fake The takeaway here is simple: don’t let the appearance of a "perfect" engulfing candle fool you. Just because it looks good on the chart doesn’t mean it’s the right signal for the current market conditions. Always pay attention to the context around the pattern and confirm it with volume and other technical indicators. Remember, location matters when it comes to identifying valid trade setups. Have you ever been caught by a "Fake" Engulfing Candle? What’s your process for distinguishing real signals from fake ones? Drop your thoughts in the comments—I'd love to hear how you handle these tricky setups!
Education
by TLTurnerTV
8
Why Trading Sessions Matter in Forex: Key OverlapsThe Forex market is open 24 hours a day during the weekdays, allowing traders flexibility to trade at any time. However, understanding the best times to trade is essential for effective trading. The market is divided into four main sessions: Sydney, Tokyo, London, and New York, each corresponding to peak activity in key financial centers. Using a Forex Market Time Zone Converter can help traders determine which sessions are active in their local time, making it easier to plan around high-liquidity periods. Although the market is technically always open, not all trading times are equally profitable. Higher trading volume, which generally occurs during session overlaps, creates ideal conditions for traders. For example, the overlap of the London and New York sessions sees the highest volume, with more than 50% of daily trades occurring in these two centers. Trading at this time, especially with currency pairs like GBP/USD, can lead to tighter spreads and quicker order execution, reducing slippage and increasing the likelihood of profitable trades. Similarly, trading AUD/JPY during the Asian session, when the Tokyo market is active, is advantageous due to higher trading activity for these currencies. Conversely, trading during times when only one session is active, such as during the Sydney session alone, can result in wider spreads and less market movement, making it harder to achieve profitable trades. Planning trades around high-activity sessions and overlaps is key to effective forex trading.
Education
by Market-Analyzer
9
Increase the difficulty level on yourself. Often, traders like to make things a lot harder for themselves than they need to. Everyone is seeking a silver bullet, truth is "less is actually more". Dow Theory is actually the Grandfather of technical analysis. If you have never heard of this, or even if you have and brushed over it, you are missing out. Some people will say things like "it's over 100 years old it can't work in today's market" Yet, humans have changed very little in those last 100+ years. Sentiment driven by fear and greed is where the secret is hidden. Let me explain by saying Dow theory has 6 "rules" (tenets). 1) Market Moves in Trends Markets have three types of movements: primary trends (long-term trends that last for years), secondary trends (medium-term trends that retrace parts of the primary trend), and minor trends (short-term trends that are typically noise). You will notice I used the weekly for the larger and the daily for the second. When I journal my trade setups; I simply use a traffic light system red lines size 4 for primary, then orange line 3 for secondary and green size 2 for the trigger phase. In addition to that, I mark the trends with 3 boxes and arrows pointing up down or sideways. The second rule; Each trend has three phases: Accumulation Phase. In this phase, informed investors start buying or selling, counter to the general market opinion. Public Participation Phase, more investors notice the trend after it is already underway, and media coverage expands, driving the trend further. (Wyckoff called this a mark-up or mark-down phase) Excess Phase (or Distribution): At this point, speculation is rampant and detached from actual value, leading informed investors to prepare an exit. This is where a lot of Wyckoff, Elliott and other tools such as Smart money concepts all overlap. Then, the 3rd rule. The market reflects all available information, such as economic conditions and sentiment. Therefore, movement in the market averages considers and reflects this information. (in simple terms, discount the news). 4) For a trend to be validated, different market averages must confirm each other. For example, the trend in the Dow Jones Industrial Average should be confirmed by the Dow Jones Transportation Average. If one index moves to a new high or low, the other should follow suit to confirm the trend. (I like this one less, but in some instances it can make the next move very obvious.) Rule 5) The trend is your friend, until the end. Until you see a clear change in the direction, a market shift. The trend is still in play. This one, I feel most just can't comprehend. As you can see below, I have marked up the extreme high and low, I know both my primary and secondary trends are down. So now, I can use my EW bias or start looking for a Wyckoff schematic. (if I believe we are about to see a shift in the trend.) You can start to look for information for areas of interest, look into volume and volume profiles. The last rule. Confirming the trend volume expanding in the direction of the primary trend. For an uptrend, volume should increase as prices rise and decrease during corrections. In a downtrend, volume should increase as prices fall. In this example, the Fibonacci levels line up, the volume is slowing, the EW count makes some sense and zoomed out you can see a shift. Now, with all of this info - we could look at "areas of interest" We are in a demand zone on the higher time frame. At this stage, there is no trade entry, but if we were to view a change in the character we could simply take a trade as a pullback on the primary trend down. Something like this; You see, all you are doing is following the trend and taking a look at other tools, auction areas, fib extensions, an EW bias, and hints of a Wyckoff schematic. But under the hood, the 3 trend principle is a simple-to-follow process. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Education
by Mayfair_Ventures
9