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5 Most Popular Momentum Indicators to Use in Trading in 20255 Most Popular Momentum Indicators to Use in Trading in 2025 Want to master the art of momentum trading? Look no further. In this FXOpen article, we’ll explore how to use momentum indicators, the signals they generate, and five most popular momentum indicators for trading in 2025. What Is a Momentum Indicator? Momentum in technical analysis refers to the rate at which an asset's price accelerates or decelerates, helping traders identify potential trend continuations or reversals. A momentum indicator is a tool used in technical analysis to measure the speed and strength of an asset’s price movements. By analysing changes in price over a specific period, these indicators provide insights into the underlying force driving market trends. Momentum indicators do not focus on the direction of the price movement itself, but rather the strength behind it. Traders use these tools to gauge whether the market is overbought, oversold, or losing momentum, which helps determine entry or exit points. A stock momentum indicator like the Relative Strength Index (RSI), for instance, may indicate that stocks are currently bought or sold too heavily and their price is due for a reversal. The Significance of Momentum Technical Indicators Momentum indicators do not focus on the direction of the price movement, but rather on the strength behind it. They’re able to quantify and represent hidden clues about the future market direction in an easily interpretable way. By learning to read momentum indicators, traders can develop effective trading strategies, identify potential opportunities, and manage risk more efficiently. Momentum tools produce a range of signals that offer traders an edge over the markets. Let’s take a look at some of the most common momentum signals. Overbought and Oversold Conditions These signals indicate when an asset's price has moved too far in one direction without sufficient support from fundamental or technical factors and is likely to reverse. For example, RSI generates overbought signals when the reading rises above 70 and signals oversold conditions when the reading falls below 30. Divergence Divergence occurs when the price of an asset moves in the opposite direction of the indicator, suggesting an upcoming reversal. For instance, when the price is making higher highs, but RSI is making lower highs, this indicates a bearish divergence that increases the likelihood of a downward move. Crossover These signals are generated when the indicator's lines cross each other or a certain threshold. A common example is the MACD, where traders look for crossovers between the fast MACD line and the slower signal line to spot potential entry and exit points. Top Five List of Momentum Indicators for Technical Analysis Now that we understand the types of signals that momentum tools produce, let’s break down five of the most popular with a momentum indicators list. 1. Relative Strength Index (RSI) The RSI is one of the most popular and well-documented momentum indicators. It measures the speed and change of price movements by comparing the average gain to the average loss over a specified period, usually 14. RSI is an oscillator, moving between 0 and 100. Values above 70 reflect overbought conditions, while values below 30 indicate oversold conditions. When the RSI moves out of overbought or oversold territory, many traders interpret this as a reversal confirmation. Sustained movements above or below the midpoint (50) can also be used to confirm a bullish or bearish trend, respectively. Moreover, traders look for divergence between the RSI and price to identify weakening trends and possible reversals. 2. Average Directional Index (ADX) The ADX is a momentum indicator used to determine a trend’s strength. Unlike most other tools, its reading doesn’t move according to the direction of price action, i.e. it doesn’t move up if bullish or down when bearish. Instead, it ranges from 0 to 100, with values above 25 indicating a strong trend and below 25 suggesting a weak or non-trending market. ADX is commonly used in combination with other tools, as it simply confirms the trendiness of a market. For example, traders might use a leading indicator like RSI to anticipate bullishness and confirm the trend when ADX crosses over 25. 3. Commodity Channel Index (CCI) The CCI is a versatile momentum indicator. It uses a constant in its calculation to ensure that 75% of values fall between +/- 100, with moves outside of the range generally indicating a trend breakout or continuation. It can also show extreme overbought or oversold conditions when its value exceeds +/- 200. The CCI requires a more nuanced approach than other tools and is typically used to confirm a trader’s directional bias and to identify potential opportunities. For instance, a visually identifiable bullish trend can be confirmed by looking at the CCI. If its value is skewed toward 100+, traders can be confident in their observation. When the market cools off, CCI will fall below 100. Traders can then confirm a pullback entry with a move back into the +/- 100 range. 4. Moving Average Convergence Divergence (MACD) The MACD is a highly regarded trend-following momentum indicator that shows the relationship between two moving averages of an asset's price. It’s used in technical analysis to identify the relationship between two moving averages of a security’s price. It helps traders understand the trend’s strength, direction, and duration, as well as possible reversal points. Traders use crossovers between the MACD and signal lines as potential entry and exit signals. Additionally, when the MACD histogram crosses above or below the zero line, it can indicate bullish or bearish momentum in the market. Lastly, it’s also possible to spot divergences between price and the indicator’s peaks and troughs, similar to how divergences are identified with RSI. 5. Momentum (Mom) The Momentum indicator is a simple yet potentially effective tool that measures the rate of change in an asset's price over a specific period. The value of the Momentum depends on the market it’s applied to. For example, using the Momentum indicator in stocks will result in a fluctuating value typically between +/- 20, depending on the stock’s price. For forex pairs, its range may look more like +/- 0.02. The common feature across all markets, however, is the zero line. Generally speaking, positive Momentum values indicate upward price movement, while negative values suggest downward movement. It can also show overbought and oversold conditions, but its lack of defined boundaries means this can be tricky. However, Momentum is especially useful for identifying divergences. Advantages of Momentum Indicators Momentum indicators are valuable tools in technical analysis, helping traders assess the strength and speed of price movements. They offer several benefits that enhance trading strategies and decision-making: - Identify Trends Early: Market momentum indicators can reveal the start of a new trend and the end of the old trend, allowing traders to enter trades at opportune moments. - Objective Analysis: They provide quantifiable data, reducing reliance on subjective analysis and emotional decision-making. - Spot Overbought and Oversold Conditions: Momentum tools help traders identify when an asset is overbought or oversold, signalling potential reversals and exit points. - Confirm Trade Signals: Combining momentum indicators with other technical tools enhances the accuracy of trade signals, providing stronger confirmation for trading decisions. - Adaptable Across Markets: They can be applied to various assets, including stocks, forex, and commodities, making them versatile tools for traders. Things to Consider When Trading Momentum Indicators While momentum indicators can be an effective addition to any trader’s arsenal, there are a few things to be aware of: - Trade with the Trend: Trends often last longer than you may think, and constantly looking for trend reversals will only end in frustration. Look for bullish signals during an uptrend and bearish signals in a downtrend. - Use Multiple Indicators: Relying on a single tool can lead to false signals. Many traders combine a lagging indicator, like MACD, with a leading indicator, like RSI. Combining two or three tools can help confirm signals and improve trade accuracy. - Beware of False Signals: Momentum indicators can sometimes generate false signals, especially in sideways or choppy markets. Being patient and waiting for confirmation before entering a trade is vital. - Don’t Rely Too Heavily on Indicators: While momentum indicators can be helpful, relying solely on them without considering price action, market structure, or fundamental aspects can lead to poor trading decisions. Use these indicators alongside other tools for a momentum indicator strategy. Final Thoughts Now that you have a comprehensive overview of momentum indicators and the signals they produce, it’s time to put your knowledge into practice. After experimenting with a few tools and settling on your favourites, you can open an FXOpen account. You’ll be able to trade over 600+ markets with low costs and ultra-fast execution speeds while partnering with one of the world’s fastest-growing forex brokers. Good luck! FAQ How to Use Momentum Indicators? With momentum indicators, traders monitor the rate of price changes to assess whether it is gaining or losing strength. Traders look for overbought or oversold conditions, divergences, and crossovers to determine potential entry and exit points. What Is the Best Period for a Momentum Indicator? If we are talking about the Momentum indicator, the best period depends on your trading style. For short-term traders, 7 and 10 periods are common, while long-term traders may prefer 14 and 21 periods. Testing various periods based on asset volatility can improve results. What Is the Best Momentum Indicator for Scalping? There is no best momentum indicator for scalping but the Relative Strength Index (RSI) is often favoured by scalpers due to its ability to quickly identify overbought or oversold conditions. Its responsiveness helps scalpers make rapid decisions in fast-moving markets. What Is the Difference Between Momentum and Trend Indicators? Momentum trading indicators measure the speed of price changes, while trend indicators assess the direction and persistence of price movements. To put it simply, momentum focuses on strength, while trend indicators focus on the overall direction. Is MACD a Momentum Indicator? Yes, the Moving Average Convergence Divergence (MACD) is one of the most popular momentum indicators, especially in stock trading. It reveals changes in momentum and helps identify potential trend reversals. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:XAUUSDEducation
by FXOpen
7
Are Gold Miners Going Higher?Gold miners are one of the top-performing industries this year, and some traders may see further upside in a key ETF tracking the group. The first pattern on today’s chart of the VanEck Gold Miners ETF is the falling trendline along the highs of October and February. GDX cleared that resistance on Thursday, which may suggest a breakout is underway. Second, the 50-day simple moving average (SMA) rose above the 200-day SMA in February and above the 100-day SMA in March. That alignment, with faster SMAs above slower SMAs, may be consistent with a longer-term uptrend. Third, the ETF peaked around $39 in December and bounced at the same level on February 28. Did old resistance become new support? Next, MACD just turned positive. The 8-day exponential moving average (EMA) is also above the 21-day EMA. Those are potentially bullish short-term signals. Fifth, GDX remains below its 2020 high of $45.78 –- despite physical gold setting new records. The ETF is also still under peaks from early last decade. Investors may wonder whether the producing companies are undervalued on a relative basis. Finally, TradeStation data shows GDX averaging roughly 128,000 options per day in the last month. That may help traders position for moves with calls and puts. Standardized Performances for the ETF mentioned above: VanEck Gold Miners ETF (GDX) 1-year: +52.63% 5-years: +34.98% 10-year: +83.14% (As of February 28, 2025) Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See www.TradeStation.com . Visit www.TradeStation.com for full details on the costs and fees associated with options. Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the Margin Disclosure Statement at www.TradeStation.com . TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
AMEX:GDX
by TradeStation
5
Booze Wars... How DAX could react?Now it's time for US and EU to have their public tariff battle. Given that wine, champagne and beer are a huge part of EU export into the US, there might be some pain felt among the MARKETSCOM:DE30 bulls. Let's dig in. XETR:DAX Let us know what you think in the comments below. Thank you. 74.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK. Cryptocurrency CFDs and spread bets are restricted in the UK for all retail clients.
MARKETSCOM:DE30
by Marketscom
8
O kurwa! Curvature in Technical Analysis: What Does It Tell Us?Curvature in TA is trading approach where curved lines are used instead of traditional straight trendlines. Curved lines help to visualize how trends evolve and can provide insights into potential reversals or trend continuations. One of the known methods that utilize curvature is the MIDAS (Market Interpretation/Data Analysis System). This system was developed by physicist Paul Levine in 1995 and uses curved support and resistance lines based on Volume-Weighted Average Price (VWAP). The curves adapt dynamically as price and volume change, helping to identify trend shifts and potential reversals. 💡 Why should we use Curvature? Dynamic Support and Resistance: Curved lines adapt to price changes, unlike static horizontal lines. Reversal Signals: They can signal potential trend shifts earlier than traditional methods. Better Trend Visualization: They are particularly useful for parabolic or exponential price movements. 📊 Applying Curvature to HBAR (1H TF) There are two curves on my chart. Both of them shows a curvature pattern forming on the 1-hour timeframe. L: The curve on left side indicates a strong downward move, and the price appears to be following this curve closely. R: On the other hand I have drawn curve on the right side, which is alligned as downward curve as well, but it has different angle. This post is meant to test my theory on real life example. 🔑 Key Points: Breaks away from the curvature could indicate a potential trend reversal or consolidation. Combining this analysis with volume and momentum indicators can improve accuracy when predicting possible bounce or breakdown scenarios. Let's see how it works!
Education
by Expate
11
Bitcoin reversal confirmed ?!Bitcoin reversal confirmed ?! 👀 I would like to present you some charts with important levels and relevant patterns. 🖥daily-chart (BITSTAMP) and 💡everything important in the chart 👀 💥Here in the daily chart (BITSTAMP) - a Deep-Crab harmonic with - a WolveWave and the daily-chart of the 🔥Daily MA200 re-test 👀 - gap fill - support-line 2022 and 2024 TOPs 👉 BITCOIN roadmap/outlook (from 27th february 2024) 💡 🎯 If you like this idea, please leave me a 🚀 and follow for updates 🔥⏰ Furthermore, any criticism is welcome as well as any suggestions etc. - You're also very welcome to share this idea. Have a nice evening & successful trading decisions 💪 M_a_d_d_e_n ✌ NOTE: The above information represents my idea and is not an investment/trading recommendation! Without any guarantee & exclusion of liability!
BITSTAMP:BTCUSDLong
by M_a_d_d_e_n
19
BITCOIN Correction in Play - Can Bulls Regain Control?COINBASE:BTCUSD is experiencing a corrective move after forming a double top near the upper boundary of the channel. The rejection from this level has led to increased selling pressure, with price steadily approaching a significant support zone around $73,000. The confluence of the trendline support and the horizontal demand zone increases the probability of a bullish reaction. If buyers step in at this level, we could see a rebound, with a potential move toward the $90,000 resistance zone. This level could act as a short-term target within the current market structure. However, failure to hold this support could signal further downside, potentially extending the retracement toward lower levels. Traders should monitor bullish confirmation signals, such as rejection wicks, increasing volume, or bullish engulfing patterns, before anticipating a continuation to the upside. If you agree with this analysis or have additional insights, feel free to share your thoughts here! 🚀
COINBASE:BTCUSDLong
by DanieIM
63
Trading Psychology or Technical Analysis—When Mind Meets MatterThere’s an age-old battle in trading that makes the bull vs. bear debate look like a game of pickleball (no offense, finance bros). It’s the clash between the traders who swear by their charts and the ones who insist it’s all about mindset. The technicals versus the psychologicals. Fibonacci retracements versus fear and greed. RSI versus your racing heart. TLDR? Both matter—a lot. But knowing when to trust your indicators, when to trust yourself, and when to blend both is the fine line that separates those who thrive from those who rage-quit. ⚔️ The Cold, Hard Numbers vs. the Soft, Messy Brain Think of technical analysis as your sometimes inaccurate GPS in trading. It’s structured, predictable, and gives you clear entry and exit points—until it doesn’t. Because markets, much like a GPS in a tunnel, don’t always cooperate. That’s where psychology creeps in. Your mind is the ultimate trading algorithm, but it’s often running outdated software. Fear of missing out? That’s just your brain throwing a tantrum. Revenge trading? A glitch in emotional processing. Overconfidence after three wins in a row? Well done, you genius. Technical analysis gives you signals, but trading psychology determines how you act on them. 🤷‍♂️ When the Chart Says One Thing, and Your Brain Says Another Picture this: You’ve mapped out the perfect setup. The moving averages align, volume confirms the breakout, and everything screams BUY . But then your brain whispers, What if it reverses? What if this is a trap? What if I’m about to donate my account balance to the market gods? You hesitate. The price moves without you. Now, frustration kicks in, and suddenly, you’re clicking BUY at the worst possible moment—just in time for a pullback. Sometimes, the best trade is the one you don’t take. And sometimes, trusting the chart over your overthinking brain is the only way forward. 🔥 The Big Guys and Their Choices Legendary investors have picked their sides in this debate. Howard Marks, the co-founder of Oaktree Capital, has long been a big believer in market psychology. He argues that understanding investor sentiment is more valuable than any chart pattern because markets are driven by cycles of greed and fear. On the other hand, Paul Tudor Jones—one of the greatest traders of all time—leans on technicals, famously saying, “The whole trick in investing is: ‘How do I keep from losing everything?’ If you use the 200-day moving average rule, you get out. You play defense.” Both approaches work. The question is: Are you the type who deciphers market mood swings, or do you trust that a well-placed moving average will tell you when to cut and run? 🌀 Overtrading: The Technical Trap and the Psychological Spiral Overtrading usually starts with a good trade, a small win, and a rush of dopamine that convinces you you’ve cracked the code. So, you take another trade. Then another. And before you know it, you’re firing off entries like a caffeinated gamer, except your PnL is the one taking the damage. Technical traders fall into this trap because they see too many setups. Every candlestick pattern, every little bounce, every “potential” breakout becomes a reason to trade. Psychological traders, on the other hand, may overtrade out of boredom, frustration, or the need to “make back” losses. The result? An emotional rollercoaster that ends with an account balance you don’t want to check the next morning. The fix? Trade selectively. The best setups don’t come every five minutes, and forcing trades is like forcing a bad joke—it just doesn’t land. 💪 Fear, Greed, and the Art of Holding Your Ground Every trader knows the feeling: You’re in profit, but instead of letting the trade play out, you close early because profit is profit, right? Wrong. Fear of losing profits is what keeps traders from maximizing their wins. And greed—the evil twin of fear—is what makes traders hold losing trades, hoping for a miracle. It’s the classic “let winners run, cut losers short” rule in reverse. Technical traders know where their stops and targets are. The problem? They often ignore them when emotions take over. Psychological traders “feel” the market but get crushed when that gut feeling betrays them. The best traders find the balance—using technicals to set logical targets and psychology to actually stick to the plan. 🤝 The Solution? A System That Checks Both Boxes So, what’s the verdict? Do you put matter over mind or mind over matter? The truth is, great traders do both. They develop strategies based on technicals but manage execution with discipline. They respect risk management rules not just because the chart says so, but because they know how destructive emotions can be. Here’s what the best do differently: ✅ They journal trades —not just the setups but how they felt during the trade. ✅ They stick to a trading plan so they can trust their system over impulse. ✅ They set rules that help them to properly bounce back from losses . ✅ They know the value of knowledge and never stop learning. (We’ve got you covered here, too. Go check the Top Trading Books if you’re a trader and stop by the Top Books on Investing if you’re an investor). 💚 Final Thoughts: Mind and Market in Harmony In the end, trading is never just one or the other. It’s not pure math, and it’s not pure mindset. It’s a dance between structure and instinct, strategy and psychology. The ones who get it right aren’t just great at reading charts—they’re great at reading themselves.
SP:SPXEducation
by TradingView
20
Idea #100 - In this market, it BETTER be a good one: LONG WMTIt's been a while since I posted an idea and to those who follow me I am sorry/not sorry. I didn't post for a few reasons: 1) I know that there are people who trade my ideas despite my warnings/disclaimers and I didn't like how the market was acting for the last couple of weeks (rightly, as it turns out) and I didn't want anyone else to get caught up in this unnecessarily. I have been continuing to personally trade my system, with mixed results (to be expected in this market), but I wanted to make #100 a good one. 2) I wanted to do a summary of the ideas I've posted so far with #100 and wanted to get that information together first. 3) I think posting this now can provide some insights as to how to deal with market washouts calmly and with confidence, with things that could apply to most trading systems, I think. So first, lets deal with the idea at hand. I chose WMT because: a) it is historically a top 10% stock in terms of daily % return for how I trade, so if anyone decided to follow me on this trade (see disclaimer below), it was at least a stock that has historically done well. And by well, I mean 1355-0 W/L record well, with an AVERAGE gain of 5.16% per trade for all 1355 trades (backtested and actual trades combined) going back through every market meltdown since 1972. b) This is the kind of market that makes it FAR more likely that trades will take a long time to play out. MUCH longer than average. So again, if I have to hold this a long time, I want a quality stock that has a long track record of surviving long downtrends in the market. I can't think of a better retail stock to own during a recession, which I think is a certainty at this point, it's just a question of when it becomes official and how long it lasts. WMT is already the retailer of choice for many, and if saving money becomes a requirement for many more, WMT will steal a lot of business from more expensive retailers. c) despite the recent carnage for it and the market, WMT is still above it's 200d MA and solidly in an uptrend. I always like trading stocks in uptrends. Hopefully it stays in one long enough for me to make my money and run. Lot 1 opened today at the close at 87.82 Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit. As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation. _______________________________ So there's my case for WMT. Now here's the case for why I'm trading anything using my system right now. The first idea I posted here was on June 22nd of this past summer. Since the close that day, the Nasdaq's return is actually negative (-1.48%) and the S&P 500 is up marginally (+2.7%). Since June 22nd, I have logged (timestamped) here every buy and sell of every lot of every idea since then. That amounts to a total of 330 lots traded. In the time since, 289 of those trades closed with a gain, 37 are still open and negative, and two were opened today (this one and an add to RDDT) which are neither winning nor losing yet. That's an 87.6% win rate so far. INCLUDING the 37 trades that are losers right now (the losers include 8 lots that are down 30% or more and two options trades that each lost 100%), the AVERAGE return on those 330 trades is +1.88% EACH. That translates to .11% per day held - almost 3x the long term average daily return for stocks and almost 8x the average daily return of the S&P 500 since June 22. Annualized, that's 27% rate of return and I was on pace for a 36% annualized rate of return on these trades before this market swoon hit. Compared to -1.48% and 2.4% for the indices, it's been a pretty good 9 months of trading, but actually below my system's long term average. The profit factor on these trades (including the open losers) is currently 1.98 (it was over 2.5 2 weeks ago before the market collapse began). The average holding period is 17 days, but that is skewed longer by 10 lots of PXS that I've been holding for over 4 months each. The median hold length for all 330 trades is 5 trading days and the most common holding period (including the 37 still open losers) is ONE trading day. OK, this turned out to be a longer post than I intended, so I'll post another idea tomorrow with some thoughts about dealing with trading in down markets. To everyone who is reading this and especially those who are following me - thanks for the follows and for taking the time to read this whole thing. Be safe trading out there!
NYSE:WMTLong
by redwingcoach
24
The only tech stock I’d consider buying right nowThis analysis is provided by Eden Bradfeld at BlackBull Research. We’ve seen the S&P, NASDAQ and every other American index get slammed in the last couple of days. Some people are panicking. A lot of people are panicking. If you go on Twitter (sorry — X dot com) you will find a lot of people who listened to a recommendation from a guy on YouTube about a trash stock like say, IonQ or HIMS, and are now fairly upset said YouTube guy (or Twitch guy, or whatever) got it wrong. Frankly, a correction is a healthy thing because it allows investors to purchase good companies at more reasonable multiples. I have no idea where the market goes from here. I can’t see the future. I admit this sell-off has me adding tech stocks (and other American stocks) to my watch-list, and I’ll continue to monitor them. A lot of tech stocks — the bulk of what has fallen as of late — still aren’t in that zone for me yet. Amazon still trades at a current multiple of 35x earnings and a fwd multiple of 28x — I can’t find much value in that, especially when I consider that Google, a company with +$83 billion in net profit and a 32% operating margin, can be acquired for 16x fwd earnings (I had to check those numbers too just to be sure — when you’ve still got things like Palantir trading “to the moon” (and back), 16x⁴ seems like a reasonable price for the dominant advertising platform in the world). Here’s Buffett, in his 2008 essay — Buy American, I am: A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now. Buffett was right, of course. If you purchased stocks in 2008 and held them you would’ve done pretty well (as long as you didn’t buy Lehman Brothers!). The GFC saw stocks fall 48% from their peak — if we are indeed heading towards that territory there is more room to fall. I have no idea — examining the basket of tech stocks I look at, the only one that presents any value is Google. It’s reasonable at 16x fwd earnings. If it traded at 12x earnings, it would be a bargain - in my opinion. How low can you go?
NASDAQ:GOOG
by BlackBull_Markets
10
TSLA Breakout Retest: What Could Signal Bullish Surge NASDAQ:TSLA Breakout Retest: What Could Signal Bullish Surge – Is Tesla poised for a major move? In this video, I break down the breakout retest pattern on TSLA’s weekly chart, focusing on the critical near term levels. A validated breakout could hint at a higher time frame bullish scenario! I’ll cover: Rules to validate or invalidate the pattern Conservative and aggressive price targets My personal targets based on years of trading experience Don’t miss this Tesla stock analysis for 2025! What to Watch For: Breakout confirmation at $490 Stop-loss zones and risk management Potential bullish surge targets
NASDAQ:TSLALong
by Entrenched
43
Gold is on a relentless hunt for the $2,720 levelGold is on a relentless hunt for the $2,720 level, navigating through a well-defined ascending channel where the upper boundary has acted as long-term resistance and the lower boundary as dynamic support. The price has respected this structure, with multiple touches reinforcing its integrity. However, a recent double top near the upper boundary signals potential bullish exhaustion, increasing the probability of a downside move. If the price remains below this key level, further declines are likely, with $2,720 emerging as a crucial support zone—aligned with the golden pocket on the Fibonacci retracement, making it a prime area for a reaction. The Alternative Scenario: The New Economy's Bullish Case Despite the bearish structure, gold in the new economy presents an alternative bullish outlook. A smaller bullish channel has formed between $2,789 and $2,855, suggesting that buyers are still in control within this range. If this mini uptrend holds, it could fuel another breakout attempt above recent highs, invalidating the bearish scenario and positioning gold for a renewed push toward higher levels. For now, gold is at a crossroads, with $2,720 as the primary target on the downside—but if buyers defend this level or sustain the new bullish channel, the uptrend may persist in the evolving economic landscape.
OANDA:XAUUSDShort
by QuantumFusionWave
30
Bitcoin - Will history repeat itself?In this analysis, we are observing the potential repetition of market history by comparing the current Bitcoin price action to the previous bullrun cycle. By utilizing Fibonacci retracement levels, historical patterns, and the current macroeconomic landscape, we can formulate a hypothesis that the market might follow a similar trajectory if bearish sentiment prevails. Historical Comparison During the last bullrun, Bitcoin experienced significant price appreciation before eventually reaching a new all-time high (ATH). However, one key observation from the previous cycle is that before Bitcoin reached its ATH, the price retraced to the 0.618 Fibonacci retracement level multiple times. This level acted as a critical support zone, where the price found demand before making the next leg upward. Currently, we are seeing a similar pattern unfolding. Bitcoin has recently experienced a parabolic rise, reminiscent of the previous bull cycle. As the market is showing early signs of exhaustion, the possibility of a deeper retracement towards the 0.618 Fibonacci level (around $50,000) is becoming increasingly plausible. If history repeats itself, this level could act as a springboard for the next significant price increase. Last bullrun we had a 77% drop, and from the current ATH its only a 55% drop to the fib level: Bearish Sentiment and Market Dynamics Despite positive news emerging globally, such as the USA announcing its Bitcoin reserves and other adoption-related headlines, the market has reacted negatively, which is a characteristic of bearish sentiment. This kind of price action aligns with what we saw in previous cycles, where good news failed to provide upward momentum as the market was already in a distribution phase. The fact that Bitcoin has failed to sustain gains even amid positive news further reinforces the likelihood of a deeper retracement. The market is driven by liquidity cycles, and the large players may still be in the process of shaking out retail investors before the next parabolic move. Key Fibonacci Levels to Watch 0.618 Level (~$51,500): Historically tested in the last cycle before the final leg up. 0.65 Level (~$48,500): Another confluence zone that could provide significant support. 0.786 Level (~$36,000 - $40,000): If the market becomes extremely bearish, this level could act as the final capitulation zone before the next macro bullrun. Psychological and Macro Factors Additionally, the broader macroeconomic environment plays a crucial role in this scenario. With ongoing geopolitical tensions, inflation concerns, and central banks' monetary policies, investors are more risk-averse, which could further contribute to the bearish price action. Historically, Bitcoin has shown strong correlation to traditional markets, especially during uncertain times. If the macroeconomic environment remains unstable, Bitcoin could follow traditional markets into a corrective phase before making a recovery. Daily Chart Imbalance Zones On the daily chart, Bitcoin is currently trading between two key imbalance zones. These zones represent areas of liquidity where the market could either find support or break down further. The current price action suggests that if Bitcoin holds the imbalance zones as support, the market structure will still be intact, leaving the possibility for a continuation of the upward trend. However, if these imbalance zones fail to hold, it would signal a bearish continuation pattern. In this case, the probability of Bitcoin testing the $50,000 level as the next major support becomes highly likely. Traders should closely monitor these zones, as they will play a pivotal role in determining the market’s next major move. Conclusion While no analysis can predict the future with certainty, the confluence of technical, historical, and macroeconomic factors suggests that Bitcoin might follow a similar pattern as the previous bullrun. A retracement to the 0.618 Fibonacci level around $50,000 is highly plausible before a new ATH is achieved. However, if bearish sentiment continues to dominate, we could see lower levels before the market finds its true bottom. The current price action, coupled with negative market reactions to positive news, is an indication that larger players might still be accumulating before the next leg up. Traders and investors should remain cautious, monitor key Fibonacci levels, and be prepared for heightened volatility in the coming months. Only time will tell if history will indeed repeat itself, but the current evidence suggests that the market might be following a familiar path once again.
by TehThomas
74
Is Trump’s Golden Age a Recession in the Making? Let’s Find Out“This tariff low key slaps,” says no trader ever as markets get jerked and jolted day in and day out because no one can really figure out what’s happening. On some days, US President Donald Trump wakes up and chooses to slap a tariff or two on America’s closest and biggest allies. On other days, he goes for the pardon. Turns out, investors don’t really like it. Stock markets left and right wiggled to the point they couldn’t take it anymore — the tech-heavy Nasdaq Composite NASDAQ:IXIC dived into correction territory last week. That is, the index plunged more than 10% from its most recent peak, which was a record high. Even though Friday was a good day for stocks, the S&P 500 SP:SPX closed out its worst week since September, wiping off 3.1%. Zoom out and you get an S&P 500 that’s barely holding above the flatline since the election. In other words, more than $3 trillion has been washed out from the Wall Street darling since it hit a record high in late February. Where Do We Stand on Tariffs Now? So where has the dizzying labyrinth of tariffs landed? And is that final? (No, it’s not.) Trump last week declared that there’s simply “no room left” for Canada and Mexico to bargain over a deal or even a delay. That’s a 25% levy taking effect right there. A day later it was no more — a month-long reprieve for carmakers was introduced. Then a day later, Trump suspended the 25% levy on almost all goods from its closest neighbors. To this, Trump said that the “big” wave of tariffs is coming in early April to a bunch of countries, including the European Union. Right now, only China’s 20% tariff remains in place. The roller-coaster ride around who gets slapped with what has sent the dollar TVC:DXY in a freefall — so much so that the markets have started to chat about a “Trumpcession,” (not something you’d like to have your name on). That is, some traders and investors expect Trump’s policies to tip the American economy into a recession. Swirling fears of a downturn came right as the Federal Reserve apparently managed to stick the soft landing — Jay Powell and his clique of central bankers lowered inflation through interest rate cuts while the economy continued to grow without nosediving into a downturn. A side worry of the tariffs (with very real front-and-center consequences) is a pullback from the Federal Reserve on its rate-cutting campaign. Analysts are quick to say that the US central bank won’t be looking to trim borrowing costs any time soon. Not with all that White House noise threatening to derail consumer confidence and dent corporate profits and revenue. Apparently, the huge wave of uncertainty around Trump’s tariff agenda, centered on isolation and protectionism, is making global investors nervous. In this context, how are you navigating the sea change? What’s your portfolio showing and how do you feel about growth prospects ahead? Share you thoughts in the comment section and let’s chat!
SP:SPX
by TradingView
73
S&P, NASDAQ, DOW JONES Weekly Market Forecast: Mar 10-14 In this video, we will analyze the S&P 500, NASDAQ, AND DOW JONES Futures. We'll determine the bias for the upcoming week, and look for the best potential setups. Markets have been bearish due to mixed numbers employment, Fed statements, and uncertainty in US trade policies. Are the markets poised for a bounce back week? Perhaps. Traders will need to exercise patience before jumping in these volatile markets, waiting for the proper confirmations before we determine a bias. Once the markets tip their hand in that way, we can take advantage. Enjoy! May profits be upon you. Leave any questions or comments in the comment section. I appreciate any feedback from my viewers! Like and/or subscribe if you want more accurate analysis. Thank you so much! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
CME_MINI:ES1!
by RT_Money
13
Powell’s Speech & Bitcoin’s Decline: Is More Downside Ahead? Today, Fed Chair Jerome Powell is set to speak, and traders should brace for potential market volatility! Given the recent economic data , his tone is likely to be balanced but leaning hawkish . Why a More Hawkish Powell? 1- Strong Job Market : Unemployment Rate : 4.1% (Still low) Non-Farm Payrolls (NFP) : 151K (Decent, but lower than before) Average Hourly Earnings : 0.3% (Steady wage growth) This suggests that the labor market remains resilient, which might discourage the Fed from cutting rates too soon. 2- Inflation Still a Concern : Wage growth and inflationary pressures persist, which means Powell may emphasize keeping rates steady longer to combat inflation. 3- Markets Are Too Optimistic on Rate Cuts : Investors are heavily betting on rate cuts in 2024, but Powell may push back against these expectations to prevent excessive risk-taking. Powell will likely maintain a cautious yet hawkish stance to manage expectations. Big price swings are expected across forex, crypto, and commodities—so stay alert! (Of course, this is just a personal analysis). In addition to Donald Trump , Signs Executive Order to Create Bitcoin Strategic Reserve Of course, today, we didn't see any strange movement in Bitcoin, and probably, the proverb " buy the rumor, sell the news " was fulfilled. ---------------------------------------------------------- Now let's take a look at the Bitcoin chart on the 1-hour time frame and also take help from technical analysis tools . Bitcoin ( BINANCE:BTCUSDT ) is in a Heavy Resistance zone($93,300_$89,250) and has started to decline from Potential Reversal Zone(PRZ) . From a Classic Technical Analysis , Bitcoin appears to move in a Symmetrical Triangle . According to Elliott Wave theory , Bitcoin has completed the Double Three Correction(WXY) , and we should wait for the next bearish wave . I expect Bitcoin to attack 200_SMA(Daily) again after breaking the lower line of the Symmetrical Triangle . Note: Bitcoin is likely to pump more if the symmetrical triangle's upper line breaks. Please respect each other's ideas and express them politely if you agree or disagree. Bitcoin Analyze (BTCUSDT), 1-hour time frame. Be sure to follow the updated ideas. Do not forget to put a Stop loss for your positions (For every position you want to open). Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
Short
by pejman_zwin
54
Understanding Volume In TradingVolume is one of the most crucial yet often overlooked aspects of trading. It represents the total number of shares, contracts, or lots traded in a given period and provides insight into the strength of price movements. By analyzing volume effectively, traders can identify trends, confirm breakouts, and detect potential reversals before they happen. Unlike price action alone, volume adds a critical layer of confirmation. A price move supported by high volume is more likely to be sustainable, while a move on low volume may indicate weakness or manipulation. Institutions, hedge funds, and large market players leave footprints through volume, and understanding these patterns can give traders an edge. Volume Types 🎯 Volume Buy/Sell Volume Delta Volume Cumulative Delta Volume Relative Volume Cumulative Relative Volume Open Interest Volume Profile 01. Volume 🔥 In trading, volume refers to the total quantity of assets traded during a specific time frame, whether they are stocks, futures contracts, options, or currencies. It measures the activity level of a security and provides insights into the strength or weakness of price movements. Key aspects: Market sentiment: High volume often indicates strong interest in a security and can signal the strength of a price move. Conversely, low volume may suggest a lack of interest and can indicate that price movements may not be sustainable. Liquidity: High volume generally indicates better liquidity, meaning it is easier to enter and exit positions without significantly impacting the asset’s price. Low volume may lead to higher slippage and greater price volatility. Volume spikes: Extremely high volume after a prolonged trend may signal the end of that trend (blow-off tops or panic selling bottoms). Market types: Volume can vary by market type. In stock markets, it is usually reported in shares. In futures and options, it is reported in contracts, while in Forex, it is often measured by tick volume (the number of price changes). Impact on market orders & liquidity High Volume = Lower Slippage: Large orders can be executed more efficiently in high-volume environments. Low Volume = Higher Volatility: Thin order books in low-volume markets can lead to erratic price swings and wider bid-ask spreads. 02. Buy/Sell Volume 💹 Buy volume and sell volume are key metrics that indicate the level of buying and selling activity in a market. They help traders assess the strength of price movements and market sentiment. Buy Volume Buy volume represents the number of shares, contracts, or lots traded at the ask price (or higher). It occurs when buyers are willing to pay the seller’s asking price, indicating buying pressure and potential bullish sentiment. How buy volume is measured: Transactions that execute at the ask price are counted as buy volume. In some cases, aggressive market orders (where buyers take liquidity) are considered buy volume. Buy volume is often compared to total volume to determine demand strength. Sell Volume Sell volume represents the number of shares, contracts, or lots traded at the bid price (or lower). It occurs when sellers accept the buyer’s bid price, indicating selling pressure and potential bearish sentiment. How sell volume is measured: Transactions executed at the bid price are counted as sell volume. Market sell orders (where sellers take liquidity) contribute to sell volume. Higher sell volume relative to buy volume suggests downward price pressure. 03. Delta Volume ✨ Delta Volume (often referred to as Volume Delta) is a key order flow metric that measures the difference between buy volume and sell volume over a given period. Calculation Delta Volume is defined as: Delta Volume = Buy Volume − Sell Volume Where: Buy Volume is the total volume transacted at the ask price (aggressive buying). Sell Volume is the total volume transacted at the bid price (aggressive selling). Interpretation Positive Delta (Buy Volume > Sell Volume): Indicates more aggressive buying, suggesting bullish momentum. Negative Delta (Sell Volume > Buy Volume): Indicates more aggressive selling, suggesting bearish momentum. Near Zero Delta: Indicates a balance between buyers and sellers, often seen in range-bound markets. 04. Cumulative Delta Volume ⚡ Cumulative Delta Volume (CVD) is an advanced order flow metric that tracks the cumulative sum of Delta Volume over time. Calculation CVD t ​ =CVD t − 1 ​ + (Buy Volume − Sell Volume) Where: Buy Volume = Volume transacted at the ask price (aggressive buying). Sell Volume = Volume transacted at the bid price (aggressive selling). CVD*t = Current cumulative delta value. CVD\*{t-1} = Previous cumulative delta value. Interpretation Rising CVD (Positive Delta Accumulation): Buyers are dominating, indicating bullish momentum. Falling CVD (Negative Delta Accumulation): Sellers are in control, signaling bearish momentum. Flat or Divergent CVD: A divergence between price and CVD can indicate potential reversals or absorption by large traders. 05. Relative Volume 📉 Relative Volume (RVOL) is a key trading metric that measures current trading volume compared to its historical average over a specified period. It helps traders assess whether a security is experiencing unusual trading activity and provides insights into liquidity, volatility, and potential price movements. Calculation Relative Volume is typically expressed as a ratio: RVOL = Current Volume / Average Volume Over A Given Period Where: Current Volume = The total shares/contracts traded in the current period (e.g., 1-minute, 5-minute, daily). Average Volume = The average volume over a past period (e.g., 10-day average, 50-day average). A higher RVOL (>1) means the security is trading at above-average volume, while a lower RVOL (<1) indicates below-average activity. Interpretation RVOL > 2: Indicates significantly higher-than-normal volume, often linked to news events, earnings reports, or breakout trends. RVOL around 1: Suggests normal trading activity with no unusual volume spikes. RVOL < 1: Indicates low trading activity, which may lead to weak price movements and lower liquidity. 06. Cumulative Relative Volume 💥 Cumulative Relative Volume (CRVOL) is an advanced volume metric that tracks the total volume traded throughout a session relative to its historical average at the same time of day. Calculation Cumulative Relative Volume compares the ongoing total volume at a given point in time to the average cumulative volume at that same time over a historical period. CRVOL = Cumulative Volume at Time X / Average Cumulative Volume at Time X over N periods Where: Cumulative Volume at Time X = The total volume traded from market open up to time X. Average Cumulative Volume at Time X = The average total volume at that point in time over a selected historical period (e.g., 10 days). N periods = The number of historical sessions used for comparison. A CRVOL > 1 indicates higher-than-normal trading activity, while CRVOL < 1 suggests lower-than-average activity. Interpretation CRVOL > 1.5: Significantly higher trading activity than usual, often linked to news events, earnings reports, or institutional participation. CRVOL ≈ 1: Normal trading volume, suggesting typical market conditions. CRVOL < 0.8: Below-average trading volume, often indicating low liquidity and reduced volatility. 07. Open Interest 📊 Open Interest (OI) is a key metric in derivatives markets (futures and options) that represents the total number of outstanding contracts that have not been settled or closed. It is an important indicator of market activity, liquidity, and trader commitment. How it works? Open Interest increases or decreases based on the interaction between buyers and sellers: OI Increases: When a new buyer and a new seller enter the market, creating a fresh contract. OI Decreases: When an existing buyer and seller close their positions (either by offsetting trades or expiration). OI Unchanged: If an existing contract is transferred between traders (one trader closes, another opens an equal position). Interpretation Rising OI + Rising Price: Suggests strong buying interest, indicating a bullish trend with conviction. Rising OI + Falling Price: Indicates strong selling pressure, confirming a bearish trend. Falling OI + Rising Price: Signals a short-covering rally or weakening trend, as traders close positions. Falling OI + Falling Price: Suggests a lack of commitment to further declines, indicating potential trend exhaustion. 08. Volume Profile 🎢 Volume Profile is a powerful market analysis tool that plots trading volume at different price levels over a specific period. Unlike traditional volume indicators, which show volume per time interval, Volume Profile reveals where the most buying and selling activity occurred, helping traders identify key support and resistance levels, market structure, and potential price reactions. Components Volume Profile is displayed as a histogram on the vertical axis, showing the amount of volume traded at each price level. It is built using tick data or intraday price action and is often calculated for different timeframes (daily, weekly, monthly, or custom sessions). Key components of Volume Profile include: Point of Control (POC): The price level where the highest volume was traded, acting as a major support/resistance zone. High Volume Nodes (HVN): Price areas with heavy trading activity, indicating consolidation zones where price is likely to stabilize. Low Volume Nodes (LVN): Price areas with little trading activity, often leading to fast price movements as there is little resistance or support. Value Area (VA): The price range where 70% of the total volume was traded, representing the "fair value" zone of the market. Value Area High (VAH) & Value Area Low (VAL): The upper and lower boundaries of the Value Area, acting as dynamic support and resistance levels. Types Session Volume Profile: Analyzes volume for a single trading session (daily or intraday). Composite Volume Profile: Covers a longer period (weeks, months, or custom-defined ranges). Fixed Range Volume Profile: Analyzes volume for a specific price range or custom-selected area. Developing Volume Profile: Updates dynamically throughout the trading session to show real-time changes in volume distribution. Interpretation POC as a Magnet: Price tends to revisit the POC due to high liquidity and market agreement at that level. Breakouts from Value Area: If price breaks above VAH with strong volume, it signals a bullish trend; if it breaks below VAL, it signals a bearish trend. Reaction at LVN: Price moves quickly through LVN areas but may reverse or stall when approaching HVN. Rejections at VAH/VAL: If price rejects VAH, it may return to POC or VAL, and vice versa. 09. Indicators 📦 Volume indicators help traders gauge market strength by analyzing the number of shares or contracts traded. Volume (Default) – Displays the total volume traded per candle, often color-coded based on price movement. Volume Profile (Fixed Range, Session, Visible Range) – Shows volume distribution across price levels to identify support and resistance zones. Volume Weighted Average Price (VWAP) – A dynamic support/resistance line that calculates the average price based on volume. On-Balance Volume (OBV) – Measures cumulative volume flow to detect price trends and confirm breakouts. Money Flow Index (MFI) – A volume-weighted RSI-like oscillator that identifies overbought and oversold conditions. Volume Delta – Measures the difference between buying (ask) and selling (bid) volume. Cumulative Delta Volume – Tracks the cumulative sum of volume delta over time to assess buying/selling pressure. Relative Volume (RVOL) – Compares current volume to historical averages to highlight unusual trading activity. Key Takeaways 📋 Volume is a crucial market indicator that reflects trading activity and liquidity, often preceding price movements. High volume confirms trends and breakouts, while low volume can signal weak or false moves. Volume Profile identifies key support and resistance zones, with High Volume Nodes (HVNs) acting as strong barriers and Low Volume Nodes (LVNs) allowing fast price movement. Relative Volume (RVOL) highlights unusual market activity, while Delta Volume and Cumulative Delta reveal buying and selling pressure. VWAP serves as a dynamic support/resistance tool commonly used by institutional traders.
CME:BTC1!Education
by CandelaCharts
9
SPY Another -10% Fall Incoming?Here in this video, I would like to help you guys understand my perspective for SPY for these next upcoming months. I believe its very possible that we could see another -10% fall from today's close. My overall target would be the low of august sell off, and as I mentioned in the video, I truly believe that sell off back in August was just a flash of what's to come. Most importantly, done panic. Huge sell off leads to great buying opportunities. Wishing you all the best! I'd love to hear you guys perspective as well!
AMEX:SPYShort
by GiftedInvestor
12