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how I find support and resistance of a trend To understand Price Action, first thing we do is to look for (S) and (R) to help us read strength&weakness of price. This video will explain how I find Support and Resistance of a trend. I will provide example of what your chart will looks like throughout trading hours. how to know which candle to draw (S)/(R).

Education

13:05

How to Read a Forex Quote: Bid, Ask, and Spread Explained So, you’ve decided to jump into the forex markets and stumbled upon your first quote. Now you're staring at numbers like EUR/USD 1.0987/1.0990, wondering what these flashing digits mean. Don’t worry—we’ve all been there. Let’s break it down, TradingView style, and get you up to speed on forex quotes, bid-ask spreads, and why these tiny decimal points matter more than you might think. The Basics: What’s a Forex Quote? At its core, a forex quote tells you the exchange rate between two currencies. Think of it like a price tag for the money you want to buy or sell. In any quote, you’ve got two currencies: the base currency and the quote currency. For example, in EUR/USD , the euro (EUR) is the base currency, and the US dollar (USD) is the quote currency. This quote tells you how many US dollars it costs to buy one euro. Now the fun part: You’ll notice two prices next to that quote—the bid and the ask. Bid vs. Ask: What’s the Difference? When you see a forex quote like EUR/USD 1.0987/1.0990, you’re actually looking at two prices: Bid Price (1.0987): This is the price a buyer (broker or trader) is willing to pay for the base currency. In simpler terms, this is the price you sell at. Ask Price (1.0990): This is the price the seller (broker or trader) is willing to sell you the base currency for. In other words, this is the price you buy at. So, if you’re buying EUR/USD , you’ll pay the ask price (1.0990), and if you’re selling, you’ll receive the bid price (1.0987). Notice how the ask is always higher than the bid? That’s where brokers make their money. Which brings us to… The Spread: The Broker’s Cut The spread is the difference between the bid and the ask. In this case, it’s 1.0990 - 1.0987 = 0.0003 or 3 pips (percentage in points). Think of the spread as the broker’s fee for facilitating the trade, essentially acting as the middleman. The tighter the spread, the less you’re paying to execute a trade. For major currency pairs like EUR/USD , the spread is often pretty small (like 1-3 pips), but for exotic pairs (think USD/ZAR or USD/TRY ), spreads can get wider than your Uncle Bob’s waistband after Thanksgiving dinner. Why the Spread Matters for Traders Here’s the thing: spreads eat into your profits. Whether you’re a day trader or holding a longer-term position, the spread is something you need to bake into your strategy. Scalpers and day traders need tight spreads. If you’re making a bunch of small, quick trades throughout the day, every pip counts. Wide spreads can kill your profit margins faster than a rogue tweet from Elon Musk. Swing traders and position traders are less sensitive to spreads. If you’re in it for the long haul, a few pips won’t make or break your trade. But it’s still something to keep an eye on, especially when trading less liquid currency pairs. Market Conditions and Spreads Spreads aren’t fixed — ideally, they should be floating around in real-time dealmaking. They widen and tighten based on market conditions. During high volatility (like, say, a major economic announcement or a surprise central bank rate cut), spreads can widen. Conversely, during quiet market hours, spreads tend to tighten. To avoid getting fleeced by wide spreads, keep an eye on liquidity. Major pairs like EUR/USD , GBP/USD , or USD/JPY have higher liquidity, meaning tighter spreads. Exotic pairs? Not so much. You’ll pay more to play in the less popular markets. How to Use the Bid-Ask Spread to Your Advantage Here’s a pro tip: If you’re in a tight spread market, like EUR/USD during peak trading hours, you can place tighter stop-loss and take-profit orders, maximizing your profits with minimal slippage. In volatile markets with wider spreads, give yourself more breathing room, or wait until liquidity returns. How TradingView Does It On TradingView, forex pairs are displayed with a single price quote rather than separate bid and ask prices. This single price quote represents the midpoint between the bid and the ask. TradingView uses this midpoint, also called the last trade price , to better display price flow and make it simpler to analyze price trends without the fluctuation that would come from constantly updating bid and ask prices. For traders using TradingView to monitor forex prices, this single price quote allows them to focus more on price movements and technical analysis rather than factoring in the spread between bid and ask, which as we mentioned, is available with brokers since it's their bread and butter. So factor this in. The Bottom Line Going expert-level at bid, ask, and spread isn’t just forex surviving — it’s forex thriving. These tiny details can be the difference between making bank or watching your profits trickle away. Always factor in the spread when setting up trades, especially if you're trading lower-volume currency pairs or during off-hours. Ready to flex your new bid-ask spread skills? And win some prizes at the same time? Join our paper trading competition "The Leap" , starting November 1, and show everyone what you've got. $25,000 are up for grabs.

Education

Example of creating a trading strategy chart Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- To interpret the chart from a trend perspective, you can use the MS-Signal indicator. The MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator. Therefore, you can analyze the chart by checking the arrangement of the M-Signal indicator and the movement around it. The most important thing in chart analysis is support and resistance points. Therefore, if you do not indicate support and resistance points, it can be said that the chart analysis cannot be used for trading. - So, Fibonacci retracement and trend-based Fibonacci extension are widely used in chart analysis. I used the Trend-Based Fib Extension tool. I selected and displayed the low and high points pointed by the fingers. The selection of the candles pointed by the fingers corresponds to the inflection points of the StochRSI indicator. - If you connect these, you get a trend line. The important thing when drawing a trend line is to connect the high points of the StochRSI indicator by connecting the opening prices of the falling candles. When connecting the low points, you can connect the low points regardless of whether it is a falling candle or an rising candle. This is because I think it best expresses the trend and volatility period based on my experience using it. When drawing the Fibonacci ratio and when drawing the trend line, the selection points are different, so you should draw it with this in mind. - If it is drawn as above, you can see that the chart is ready to be analyzed. Since the channeling most commonly used in chart analysis has been formed, I think chart analysis will not be difficult. However, the above method is a drawing for chart analysis, so it is not suitable for trading. This is an important point. If you are good at chart analysis, but wonder why you lose money when trading, you should change the drawing of support and resistance points. Do not trade with Fibonacci ratios, but mark support and resistance points according to the candle arrangement on the 1M, 1W, and 1D charts and create a trading strategy according to their importance. - The chart above shows the support and resistance points drawn on the 1M, 1W, and 1D charts. To display this, we used the HA-High, HA-Low, OBV 0, OBV Up, OBV Down, BW (100), Mid (50), BW (0) indicators. To display the exact volatility period, we also need to draw a trend line on the 1M, 1W chart. The indicators that are important for support and resistance points are HA-Low, HA-High, BW (100), BW (0). Therefore, the point where the trend line intersects this point is likely to correspond to the volatility period. It is not accurate because it is displayed only with the trend line that was created right away, but I think it explains well how to display the volatility period. - If you display the volatility period like this and hide all indicators, you will have a complete chart that can be used for trading. - Have a good time. Thank you. --------------------------------------------------

Education

HOW And WHY The Markets Move In this video I explain HOW and WHY the markets move. At it's core, trading is a zero-sum game, meaning that nothing is created. There must always be a counter-party to any trade, after all it is called "trading". Because of this, liquidity is the lifeblood of the market and it is what is required by all participants, albeit more for the larger entities out there. In order for these larger entities to trade, they must do so in stages of buying and selling, and not all in one single position like we do as retail traders. They buy on the way down, and sell on the way up, throughout many different time horizons. Therefore, they require price to be delivered efficiently in order to sustain this working machine. I hope you find the video somewhat insightful. Regardless of your beliefs, I think it can be agreed that these two principles are what drives the marketplace and it's movements. - R2F

Education

25:32

by Road_2_Funded

HFTs gaps: Learn how to enter a stock before a huge gap up.High Frequency Trading companies are market makers/takers that provide liquidity for the public exchanges, and they now use AI. HFTs have a huge impact on your profitability. You can make higher profits from trading ahead of the HFT gaps and riding the momentum upward or downward. In this short video, you'll learn some basics on how to identify the patterns that precede HFT gaps, which I call Pro Trader Nudges . Learn what to look for in Volume patterns and pre-gap price action. Make sure you are not chasing HFTs but riding the wave of momentum they create, just like professional traders do.

PEducation

04:35

by MarthaStokesCMT-TechniTrader

Stock Selection: How to Tip the Tailwinds in Your Favour Stock selection is a game of fine margins but understanding a few key factors can tilt the probability of success in your favour. By focusing on these crucial elements, you can ensure that when it comes to buying stocks, you’re sailing with the prevailing tailwinds rather than fighting against them. 1. Don’t Fight the Market Ever heard the saying, “a rising tide lifts all ships”? This holds true in the stock market. Favourable market conditions can make an average investor look like Warren Buffett. When the market is stable, it allows other factors to shine, while a risk-averse environment can dampen even the best stock’s performance. Don’t overthink this concept—use simple moving averages, such as the 50-day and 200-day, when analysing the index. Pair this with basic structure analysis to assess overall market conditions. Ask yourself: What is the long-term trend in the index? What is the current momentum? What does the price structure look like? The better the market conditions, the more aggressive you can be in your stock selection, as the broad tailwinds are stronger. Example: FTSE 100 The FTSE 100 index has been navigating a choppy sideways range since May, but there are still signs of optimism beneath the surface. While we’re not in a full-blown bull market, the 50-day moving average (50MA) remains comfortably above the 200-day moving average (200MA), and both are sloping upwards—indicating a long-term uptrend. Prices are currently hovering near the 50MA, suggesting the market’s tailwinds remain mildly favorable, even amidst some volatility. FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results 2. Earnings Catalysts: The Power of Post-Earnings Drift Positive earnings surprises can work wonders for any stock. They often create price gaps that signal strong short-term momentum. Moreover, positive earnings surprises can take time to be fully ‘priced in’ because large institutional investors typically stagger their investments over time. This phenomenon, known as post-earnings announcement drift, can lead to continued price appreciation following an earnings beat. Look for stocks that have recent positive fundamental catalysts in their price history. This focus can give you a clearer path toward potential gains. Example: Barclays (BARC) In February, Barclays revealed a strategic plan that reignited investor confidence and sparked a sharp breakout in its share price. The bank announced a £10 billion buyback program, coupled with £2 billion in cost cuts, aiming to boost profitability and efficiency. Barclays also set its sights on delivering returns in excess of 12% by 2026, with a renewed focus on its higher-margin UK consumer and business lending divisions. This announcement acted as a major earnings catalyst, forming the foundation for a strong uptrend that followed. BARC Daily Candle Chart Past performance is not a reliable indicator of future results 3. The Buyback Bounce: Share Buybacks Companies that initiate share buybacks signal confidence in their stock and a commitment to returning value to shareholders. When a company buys back its shares, it reduces the total number of outstanding shares, often resulting in an increase in earnings per share (EPS) and potentially boosting the stock price. While this isn’t an exact science, a stock undergoing a share buyback that meets the other criteria on this list can provide a solid tailwind for your investment. Example: Mastercard Incorporated (MA.) In the second quarter of 2024, Mastercard repurchased approximately 5.8 million shares for $2.6 billion. Through the first half of 2024, the company bought back 10.2 million shares at a total cost of $4.6 billion. As of July 26, 2024, MA had repurchased an additional 1.9 million shares for $820 million, leaving $8.7 billion remaining under its approved share repurchase programs. These strategic buybacks not only reflect Mastercard's strong cash generation capabilities but also underline its commitment to enhancing shareholder value, making it an attractive consideration for investors seeking growth. MA. Daily Candle Chart Past performance is not a reliable indicator of future results 4. Focus on Financial Quality When hunting for stocks, there’s often a tendency to bargain hunt, looking for those poised for a bounce. However, we believe that, over the long term, high-quality companies are best positioned to outperform the market. You don’t have to be a Wall Street analyst to develop a robust quality filter. The following financial metrics can help ensure that the stock you’re buying is solid and less likely to face dilution: • Return on Equity (ROE): Most companies will claim they are high-quality businesses that prioritize investors, but checking this metric helps verify their claims. A high ROE of 15% or more indicates efficient use of equity and a commitment to shareholder value. • Free Cash Flow (FCF): Cash is king for a good reason. Strong free cash flow means the company generates ample cash after covering its operational expenses, allowing for reinvestment or returns to shareholders. A FCF yield of 5% or higher is typically desirable. • Debt-to-Equity Ratio: While balance sheet strength may sound boring, it’s crucial. A low debt-to-equity ratio, ideally below 1.0, suggests a company is not overly reliant on debt to fuel growth, making it less vulnerable in downturns. Example: Morgan Sindall (MGNS) With a Return on Equity (ROE) of 22.7%, Morgan Sindall significantly exceeds the 15% benchmark, showcasing effective management and strong profitability. Its Free Cash Flow yield is an impressive 10.81%, well above the desirable 5%, reflecting robust cash generation capabilities. Furthermore, the company boasts a negative Debt-to-Equity ratio of -0.49, highlighting a strong balance sheet with no net debt and low financial risk. These qualities are also evident in its strong price chart (see below). MGNS Daily Candle Chart Past performance is not a reliable indicator of future results 5. Long-Term Trend Structure Just as analysing the strength of the overall market can create headwinds and tailwinds, you should also be mindful of a stock's price history and calibrate your expectations accordingly. An old adage that has stood the test of time is, “trends take considerable time and effort to change.” This doesn’t mean you should buy stocks that have undergone prolonged underperformance, but it does mean you should be cautious and aware of a stock’s long-term trend when making decisions. Example: Marathon (MARA Holdings) A quick look at Marathon’s daily chart shows prices oscillating around the 200-day moving average, indicating a period of indecision. The trend lacks clear direction, with momentum appearing tepid at best. Given the uncertainty, investors should be cautious about taking trend continuation or momentum trades here until a clearer signal emerges. MAR Daily Candle Chart Past performance is not a reliable indicator of future results Conclusion When it comes to stock selection, leveraging favourable market conditions, earnings catalysts, share buybacks, financial quality, and trend structures can enhance your investment strategy. By aligning your selections with these key factors, you can tip the tailwinds in your favour and increase your chances of success in the ever-evolving stock market. 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

Avoiding the Pump and Dump: A Beginner's Guide Avoiding the Pump and Dump: A Beginner's Guide to Protecting Your Investments In the dynamic world of stock trading, new traders are constantly seeking ways to maximize profits and minimize risks. Unfortunately, one of the most deceptive and harmful schemes that can easily trap beginners is the infamous pump and dump scheme. This fraudulent practice has been around for decades, targeting unsuspecting traders by artificially inflating a stock's price and then swiftly cashing out, leaving the victims with significant losses. For traders on platforms like TradingView, especially those just starting, it’s crucial to understand how to spot these schemes and avoid falling prey to them. This guide will provide you with the knowledge you need to recognize pump and dump schemes by analyzing monthly, weekly, and daily charts, identifying repetitive patterns, and understanding market sentiment. By the end, you'll know exactly what to look for to safeguard your investments. What is a Pump and Dump? A pump and dump scheme occurs when a group of individuals, often coordinated through social media or private channels, artificially inflates the price of a stock. They "pump" up the stock by spreading misleading information or creating hype around the asset, leading to increased buying interest. Once the stock price has risen significantly, the perpetrators "dump" their shares at the elevated price, leaving uninformed buyers holding a stock that will soon plummet in value. The key elements to watch out for are: Unusual price spikes without any corresponding fundamental news. High trading volume during these spikes, suggesting that a group of individuals is actively manipulating the price. Aggressive promotion through emails, forums, or social media channels, often making exaggerated claims about a stock's potential. Understanding Timeframes: Monthly, Weekly, and Daily Charts One of the most effective ways to spot pump and dump schemes is by analyzing various timeframes—monthly, weekly, and daily charts. Each timeframe provides different insights into the stock's behavior, helping you detect irregular patterns and red flags. Monthly Charts: The Big Picture Monthly charts give you a broad overview of a stock's long-term trends. If you notice a stock that has been relatively inactive or stagnant for months, only to suddenly surge without any substantial news or developments, this could be a sign of manipulation . What to look for in monthly charts: Sudden spikes in price after a prolonged period of flat or declining movement. Sharp volume increases during the price rise, especially when the stock has previously shown little to no trading activity. Quick reversals following the price surge, indicating that the pump has occurred, and the dump is on its way. For example, if a stock shows consistent low trading volume and then experiences a sudden burst in both volume and price, this is a classic sign of a pump. Compare these periods with any news releases or market updates. If there’s no justifiable reason for the spike, be cautious . Weekly Charts: Spotting the Mid-Term Trend Weekly charts help you see the mid-term trends and can reveal the progression of a pump and dump scheme. Often, the "pump" phase will be drawn out over several days or weeks as the schemers build momentum and attract more buyers. What to look for in weekly charts: Gradual upward trends followed by a sharp, unsustainable rise in price. Repeated surges in volume that don’t correlate with any fundamental analysis or positive news. Recurrent patterns where a stock has previously been pumped, experienced a sharp decline, and is now showing the same pattern again. Stocks used in pump and dump schemes are often cycled through multiple rounds of pumping, so if you notice that a stock has undergone several similar spikes and drops over the weeks, it’s a strong indicator that the stock is being manipulated. Daily Charts: Catching the Pump Before the Dump Daily charts provide a more granular view of a stock's price movement, and they can help you detect the exact moments when a pump is taking place. Because pump and dump schemes can happen over just a few days, monitoring daily activity is critical. What to look for in daily charts: Intraday price spikes that happen suddenly and without any preceding buildup in momentum. A huge increase in volume followed by rapid price drops within the same or subsequent days. Exaggerated price gaps at market open or close, indicating manipulation during off-hours or lower-volume periods. On a daily chart, if a stock opens significantly higher than the previous day's close without any news or earnings report to back it up, this could be the start of the dump phase. The manipulators are looking to sell their shares to anyone who has bought into the hype, leaving retail traders holding the bag. Repeated Use of the Same Quote: A Telltale Sign of a Pump and Dump Scheme Another red flag is when the same stock or "hot tip" keeps resurfacing in social media, forums, or emails. If you notice that the same quote or recommendation is being promoted repeatedly over time, often using the same language, this is a strong sign of manipulation. The scammers are likely trying to pump the stock multiple times by reusing the same tactics on new, unsuspecting traders. Be cautious of stocks that: Have been heavily promoted in the past. Show a history of sudden spikes followed by rapid declines. Are promoted with vague, overhyped language like "the next big thing" or "guaranteed gains." If the same stock is mentioned multiple times in trading communities, check its historical chart. If the stock has undergone previous pumps, you will likely see sharp rises and falls that align with the promotional periods. How to Avoid Pump and Dump Schemes Now that you know how to spot the signs, here are actionable steps you can take to protect yourself from becoming a victim of a pump and dump scheme: Do Your Research: Always verify the information you receive about a stock. Check if there’s legitimate news, earnings reports, or significant company developments that justify the price movement. Avoid relying solely on social media or forums for your stock tips. Look at Fundamentals: Focus on stocks with solid fundamentals, such as earnings growth, revenue increases, and strong management. Stocks targeted for pump and dump schemes often have weak or non-existent fundamentals. Use Multiple Timeframes: As we've discussed, examining stocks across different timeframes—monthly, weekly, and daily—can help you spot abnormal price behavior early on. Monitor Volume and Price Movements: If you see large, unexplained surges in volume and price, be skeptical. Legitimate price increases are usually accompanied by news or fundamental changes in the company. Avoid Low-Volume Stocks: Pump and dump schemes often target low-volume, illiquid stocks that are easier to manipulate. Stick to stocks with healthy trading volumes and liquidity. Set Stop Losses: Always use stop losses to protect yourself from sudden price drops. Setting a stop loss at a reasonable level can help limit your losses if you accidentally invest in a stock being manipulated. Be Wary of Promotions: If a stock is being aggressively promoted, ask yourself why. More often than not, aggressive promotions are a sign that the stock is part of a pump and dump scheme. Conclusion Pump and dump schemes prey on traders’ fear of missing out ( FOMO ) and the allure of quick profits . However, by using a disciplined approach to trading, analyzing charts across multiple timeframes, and paying close attention to volume and price movements, you can avoid falling victim to these schemes. Remember: If something seems too good to be true, it probably is. Protect your investments by staying informed, doing thorough research, and trusting your analysis. By following these guidelines, you can navigate the markets with confidence and avoid the pitfalls of pump and dump schemes. Happy trading, and stay safe!

Education

Swing Trading vs. Day Trading in Forex: Which Style Suits You?So, you’ve got a burning desire to trade forex and take over the world—or at least the markets—but there’s one major question still nagging you: How to get there? If you choose to do it with forex trading you’ve got two main ways — swing trading and day trading. Let’s break down what these two mean and which one is right for you. Spoiler alert: neither option involves overnight millionaire status, so let’s keep it real. Swing Trading: The Art of Patience (But Not Too Much) Swing trading — you’re not glued to your computer but you’re still in the game. Swing traders look to capture “swings” in the market. These are short- to medium-term price moves that typically last a few days to a few weeks. You’re riding the wave 🏄‍♂️ but getting off before it crashes on the shore. 🌴 ➕ Pros of Swing Trading: Less screen time : You don’t need to babysit your trades 24/7. Set it, slap a stop loss and chill. Fewer trades, more quality : You’re focusing on larger, more meaningful moves, meaning fewer opportunities for revenge trading or panic closing. Flexibility : You can have a life outside of trading. (Pro tip: Don’t quit that job yet!) Catch bigger price moves : Swing traders benefit from multi-day to multi-week trends, potentially leading to larger gains (or losses, if you’re not careful). ➖ Cons of Swing Trading: Overnight risk : The market doesn’t sleep, and neither do geopolitical events. Price gaps overnight can wreck your carefully laid plans. Patience required : If you’re someone who wants immediate action, waiting a few days for your trade to play out might feel like watching paint dry. FOMO : The market might move without you while you’re waiting for the “perfect” setup. Swing traders often miss smaller, quick gains. Day Trading: The All-In, High-Adrenaline Life Day trading — you’re jet skiing with a huge wave behind your back. And there’s a hurricane. It’s on fire. Well, not quite but kind of. You’re in and out of trades within minutes or hours, locking in gains (or losses) multiple times a day. It’s fast, furious, and not for the faint of heart. ➕ Pros of Day Trading: No overnight risk : You close all your positions by the end of the day, so nothing can blindside you while you sleep. Action-packed : If you love adrenaline, this is your jam. Every day offers multiple opportunities thanks to so many events happening. Tighter risk control : You’re constantly monitoring the markets, which means you can (most likely) react quickly to minimize losses. Quick profits (potentially) : You’re aiming for small, consistent wins. Compound them enough, and you could see some real returns. ➖ Cons of Day Trading: It’s stressful : Constant focus is draining. If you’re not sharp, it’s easy to make emotionally driven mistakes. More trades, more fees : Commissions and spreads can eat into your profits since you’re making multiple trades per day. Time-consuming : You’re glued to your screen for hours. Day traders don’t have the luxury of doing much else while waiting for trades to play out. Learning curve : It’s a steeper climb to become consistently profitable. Day trading requires mastering short-term price movements, and the odds are stacked against newbies. ❔ Which One Is for You? So, which trading style matches your life and personality? Let’s break it down: If you’ve got a day job or prefer some balance in your life, swing trading is your best bet. You can scan the charts in the evening, set your orders, and go about your business while Mr. Market does its thing. If you thrive in fast-paced environments and can dedicate full days to trading, then day trading could be your playground. But be warned: it’s not just about speed; it’s about being sharp, disciplined, and, well, not losing your focus after a bad day. If patience is your virtue , swing trading will test it, but the reward is potentially big, long-term moves with less stress. If you live for the rush , day trading might feed your need for action, but be prepared for the pressure cooker environment and razor-thin margins. Final Verdict There’s no one-size-fits-all in forex trading. The key is to match the trading style to your personality, goals, and lifestyle. Are you cool with being patient and letting trades develop, or do you want to be locking in profits on the daily? Whatever you choose, stick to your plan, manage your risk, and remember: the market doesn’t care about your feelings—only your strategy. If you’ve already tried one style and it didn’t work, don’t sweat it—there’s always another way to play the game. Share your experiences in the comments, and let’s keep the conversation going.

Education

AMP Futures - How to create a demo sub-account.In this idea we will demonstrate how to create a demo sub-account.

Education

02:03

Nailing Crypto Risk Management: 7 Ways to Protect Your Portfolio You’re leveraged to the hilt and riding the crypto wave—eyeing those sweet gains, living for the adrenaline rush and peeking at your vision board where you’ve got the lambo cutout for inspo. But here’s the harsh truth: for every moonshot, there’s a black hole ready to reel in your portfolio. Welcome to the not-so-glamorous side of crypto: risk management. If you don’t have this locked down, you might as well be throwing darts in the dark. So, how do you stack the odds in your favor and avoid getting rekt ? Let’s break down 🤸‍♂️ the essentials of managing risk in the vast world of crypto like a pro. Grab your notepad, take one more look at the lambo and let’s roll. 1. Position Sizing: Don’t Go All In, Even If You Want To We get it—Bitcoin’s pumping, and FOMO is real. But listen: putting your entire stack on one trade is quite often a path to whipping up a not-so-great track record. Pro traders? They never bet the farm. They calculate position sizes based on the risk they’re willing to take—the golden rule is to bet no more than 1-3% of your capital per trade. 🔑 Pro tip : Use a risk calculator to figure out exactly how much of your portfolio should go into each trade. It’s the difference between surviving a bad move or calling it quits. 2. Stop-Losses: The Safety Net You Probably Ignore (but Shouldn’t) Here’s the thing: everyone will get it wrong every now and then. No matter how many YouTube gurus tell you otherwise or how some trading signals group churns out 100% success rate, every trader gets slapped by the market. That’s where the stop-loss comes in—a non-emotional tool that automatically closes your position before your losses become catastrophic. Set it, forget it, and avoid waking up to a disaster. 🔑 Pro tip : Don’t just dump your stop-loss under the last support level. Base it on your risk tolerance. If you’re losing sleep over your trade, you’ve placed it too far away. 3. Diversification: Don't Put All Your Eggs in One Crypto Basket Bitcoin BTC/USD is the OG token and dominates the crypto board —no question about it. This is why Bitcoin is the preferred crypto for institutional investors and why billions of dollars get sloshed around in spot Bitcoin exchange-traded funds (ETFs). Bitcoin, as odd as it may sound, is likely the crypto with the least amount of risk, given its size and investor base. So why not look elsewhere for tenbaggers? Small caps definitely look attractive with their relatively low valuations, compared with Bitcoin’s $1.3 trillion weight. In this light, try to make sure you’re not going to end up rug pulled. Spread out the risk. Diversify across different coins, sectors and use cases. The goal is to reduce your exposure to any one asset's mood swings. 🔑 Pro tip : Don’t over-diversify either. Owning 20 low-cap coins won’t save you if the whole market crashes. 4. Avoid Leverage Unless You Really, Really Know What You’re Doing Leverage is that spicy little tool that lets you borrow money to boost your gains—or sometimes, your losses. The more you leverage, the quicker you can get washed out if the market moves against you. 🔑 Pro tip : If you must use leverage, keep it low. 5. Have an Exit Strategy: Don’t Get Greedy Crypto loves to pump, and we all love to see it. But when it does, don’t just sit there watching your profits grow—have a plan to take them. Greed kills portfolios faster than bad trades. Know when to get out before the inevitable pullback has a chance to take a shot at your gains. 🔑 Pro tip : Set clear targets for both taking profits and cutting losers. Lock in some profits on the way up and have no shame in bailing when things head south. 6. Keep Your Emotions in Check: Your Worst Enemy Is… You Let’s face it, we all get caught up in the hype. Whether it’s panic selling at the bottom or FOMO buying at the top, emotions are portfolio killers. Detach yourself from the swings and trade based on your strategy, not your emotions. 🔑 Pro tip : If a trade has you looking at your portfolio while under the shower, it’s time to re-evaluate. Chill, stick to the plan, and let the market do its thing. 7. The Golden Rule: Only Invest What You Can Afford to Lose This should be obvious, but it’s worth repeating. If losing your investment would make you sell your car or move back with your parents, you’re overexposed. Crypto is volatile, and while the upside is exciting, the downside is real. Play it smart, and don’t gamble with money you can’t afford to lose. Wrapping Up: Trade Smart, Stay Sharp Risk management is what separates the survivors from the rest of the pack in crypto. Anyone can ride a bull market but only the disciplined make it through the bruising pullbacks without getting squashed. Stick to your trading plan and never assume you’re invincible just because the charts are green today. Oh, and if you’ve got your own tips for managing risk like a crypto boss, drop them in the comments. We’re all here for the gains—but surviving the swings? That’s what separates the real traders from the noobs.

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How to Trade Crude Oil: Trading Strategies How to Trade Crude Oil: Trading Strategies Learning how to trade crude oil requires a nuanced understanding of its fundamental aspects, instruments, and trading strategies. This comprehensive article offers insights into the critical elements that affect crude oil prices, the range of instruments available for trading, and specific strategies traders use in this market. The Basics of Crude Oil Crude oil, often referred to as "black gold," is a fossil fuel derived from the remains of ancient organic matter. It serves as a crucial raw material for various industries, including transportation, chemicals, and manufacturing. Two primary types of crude oil traded on global markets are West Texas Intermediate (WTI) and Brent Crude. WTI is primarily sourced from the United States and is known for its high quality and low sulphur content. On the other hand, Brent Crude originates mainly from the North Sea and serves as an international pricing benchmark. The Organization of the Petroleum Exporting Countries (OPEC), which includes members like Saudi Arabia, Iran, and Venezuela, plays a pivotal role in determining global oil supply. By adjusting production levels, OPEC influences crude oil prices significantly. Additionally, other countries like Russia and the United States contribute to the world's oil supply, further affecting market dynamics. What Time Does the Oil Market Open? Like forex markets, crude oil trading hours are nearly 24/5. They’re typically highly liquid and offer traders multiple opportunities across a given day. For example, the New York Mercantile Exchange (NYMEX) opens for trading from Sunday evening to Friday afternoon, with a brief daily trading break. Activity is most intense during the US session, which runs from 9:00 AM to 17:00 PM EST, and the European session, from 2:00 AM to 11:00 AM EST. These periods coincide with peak market activity and are generally the most volatile, with the overlap between the US and European sessions (between 9:00 AM and 11:00 AM EST) offering the greatest volatility and trading activity. Factors Affecting Crude Oil Trading In oil trading, economics is a fundamental aspect that traders need to grasp to make educated decisions. Several factors drive the price of crude oil, and here are some of the most significant: - Supply and Demand: At its core, the price of crude oil is determined by how much of it is available (supply) versus how much is wanted (demand). An oversupply can depress prices, while high demand can cause prices to spike. - Geopolitical Events: Conflicts, wars, and diplomatic tensions in oil-producing regions can disrupt supply chains, affecting prices. For instance, sanctions on Iran or instability in Venezuela can push prices higher. - Currency Fluctuations: Oil prices are generally quoted in US dollars. A strong dollar can make oil more expensive for countries using other currencies, thereby affecting demand. - Seasonal Changes: During winter, demand for heating oil can rise, pushing crude oil prices up. Conversely, a mild winter might result in lower demand and prices. - Technological Advances: Innovations in extraction methods, such as fracking, can alter the supply landscape, making it easier to extract oil and thereby affecting prices. - OPEC Decisions: As previously mentioned, OPEC has a significant influence on oil prices. Their production quotas can tighten or flood the market, causing price swings. - Economic Indicators: Data like unemployment rates, manufacturing output, and interest rates can indicate the health of an economy, which in turn can affect oil consumption and prices. - Environmental Policies: Increasing regulations and policies aimed at reducing carbon emissions and promoting renewable energy sources can impact the demand and supply of crude oil, thereby influencing prices. - Natural Disasters: Events such as hurricanes, earthquakes, and other natural disasters can disrupt oil production and supply chains, leading to fluctuations in crude oil prices. - Global Economic Growth: The overall growth of the global economy plays a critical role in crude oil demand. Economic booms often lead to higher energy consumption, driving up oil prices, while economic slowdowns can reduce demand and lower prices. How Is Crude Oil Traded? When learning how to trade oil, traders have a variety of instruments to choose from. CFDs Contracts for Difference (CFDs) are popular instruments when trading crude. CFDs are used by traders to speculate on price movements without owning the underlying asset. Essentially, a CFD is a contract between a trader and a broker to exchange the difference in price from the point the position is opened to when it is closed. One of the key benefits is the use of leverage, which means traders can control a larger position with a smaller initial investment, amplifying both potential returns and losses. Margin requirements vary by broker but are typically lower for CFDs on oil compared to some other instruments. This makes it appealing for crude oil day trading strategies, where traders aim to capitalise on short-term price movements. However, managing risk effectively is crucial, as the leveraged nature of CFDs can result in significant losses if the market moves against you. At FXOpen, we offer both CFDs on WTI Crude oil and Brent Crude. Head over there to explore a world of trading tools and other assets beyond crude oil. Futures Futures contracts are another well-established avenue for trading crude oil. Unlike CFDs, futures are standardised agreements to buy or sell a specific quantity of oil at a predetermined price at a set date in the future. They are traded on regulated exchanges, providing an added layer of transparency and security. Spot Market In spot trading, one buys or sells crude oil and takes immediate delivery and ownership. Unlike futures and CFDs, there's no leverage in spot trading, making it a less risky option. However, the absence of leverage requires a higher initial investment. While retail traders often avoid spot trading due to storage and transportation challenges, it's commonly used by entities directly involved in production or consumption. This method is more straightforward but demands the logistical capabilities that individual traders usually lack. ETFs Exchange-traded funds (ETFs) offer an alternative for those interested in the crude oil market without dealing with futures contracts or physical ownership. Crude oil ETFs typically track the price of oil or related indices by holding futures contracts or a blend of oil company stocks. This allows investors to indirectly gain exposure to oil price movements with less complexity. Investing in a crude oil ETF can provide a degree of diversification, as these funds may also include assets like bonds or other commodities in their portfolio. However, it's essential to be aware of the management fees and potential tracking errors in the ETF's performance compared to the actual commodity. Stocks Another route to gain exposure to the crude oil market is by investing in the stocks of companies involved in the industry. This includes major producers, refineries, and even transportation companies. By owning shares in these businesses, investors are indirectly influenced by crude oil prices. To use an example, a rise in oil prices often boosts the profitability of oil-producing companies, potentially leading to stock price appreciation. Unlike trading futures or CFDs, investing in stocks means actually owning a piece of the company, often with the added benefits of dividends. However, conducting thorough research is crucial, as these stocks can be affected by company-specific risks in addition to oil price movements. Crude Oil Trading Strategies Given the volatile nature of crude oil prices, traders employ specific strategies to capitalise on price fluctuations. Here are some strategies that may be useful for crude oil trading: Trend Following with Moving Averages The trend is your friend, especially in commodities like crude oil. This is a well-known technique but it may be very useful for commodity trading. One effective way to follow the trend is by using moving averages, such as the 50-day (blue) and 200-day (orange). When the 50-day crosses above the 200-day, it's generally a bullish signal, and vice versa for a bearish trend. However, as with all technical analysis tools, moving averages can sometimes trigger false signals. Range Trading Due to supply-demand dynamics and geopolitical factors, crude oil prices often fluctuate within a specific range. Identifying these ranges can be useful for short-term trading. Traders buy at the lower end of the range and sell at the higher end, applying technical indicators like RSI or Stochastic Oscillator for entry and exit signals. News-Based Trading In crude oil markets, news about OPEC decisions, US oil inventory data, geopolitical tensions, and technological advancements can dramatically impact prices. Traders keeping an eye on oil news can take advantage of sudden announcements or an economic release likely to push prices in a particular direction. Given the high leverage commonly available in CFD trading, this strategy can be effective but also comes with significant risk. Trade Crude Oil at FXOpen Trade WTI and Brent Crude oil CFDs at FXOpen to take advantage of our competitive spreads, high liquidity, and lightning-fast execution speeds. We offer four different trading platforms, MetaTrader 4, MetaTrader 5, TickTrader, and TradingView, each with desktop, web-based and mobile versions for access anytime and anywhere. Take advantage of advanced technical analysis tools, including many trading tools and expert advisors for automated trading. Traders can rest easy knowing that FXOpen is also regulated by the FCA in the UK, CySEC in Cyprus, and is licensed to provide financial services in Australia: AFSL 412871 – ABN 61 143 678 719. Start trading oil and gas commodity CFDs with confidence at FXOpen and explore a world of trading opportunities across more than 600 markets. To access Crude Oil markets with competitive spreads and rapid execution speeds, consider opening an FXOpen account today and step confidently into the world of crude oil trading. The Bottom Line In crude oil trading, having the right strategies and tools is essential. By understanding the fundamentals, market dynamics, and utilising specific trading techniques, you are now equipped with the knowledge you need to get started! FAQ How to Trade Brent Crude Oil? To trade Brent Crude oil, you can use various instruments such as futures contracts, CFDs, ETFs, or stocks of oil companies. Most retail traders use CFDs, which provide a way to speculate on price movements without owning the asset. CFDs also allow for leverage, which can amplify both potential gains and losses. What Is the Brent Oil Trading Strategy? A common Brent oil trading strategy involves trend following using moving averages. For instance, traders use the 50-day and 200-day moving averages to identify bullish or bearish trends. Range trading and news-based trading are also popular strategies. What Hours Does Crude Oil Trade? Crude oil trades nearly 24/5. The New York Mercantile Exchange (NYMEX) operates from Sunday evening to Friday afternoon with a daily break. The most active trading occurs during the US session (9:00 AM to 2:30 PM EST) and the European session (6:00 AM to 11:00 AM EST). What Is the Best Time to Trade Brent Crude Oil? According to theory, the best time to trade Brent Crude oil is during the overlap of the US and European sessions, from 9:00 AM to 11:00 AM EST, when market liquidity and volatility are highest. However, you should consider fundamental factors as they can lead to unexpected price movements. 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.

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Beware of Symmetrical Triangles. And yes, they occur often Why Beware? Ambiguous Direction: Symmetrical triangles don't inherently indicate whether the breakout will be upward or downward. Without additional confirmation from volume or other technical indicators, predicting the direction can be challenging. Market Noise: In volatile markets, price movements within the triangle can be erratic, making it difficult to identify clear breakout signals amidst the noise. False Breakouts: Not every symmetrical triangle leads to a significant price movement. Sometimes, the breakout fails, resulting in a false signal that can trap traders in losing positions.

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05:55

by Blayno_MTOPS

XAUUSD GOLD: Understanding Trend Shifts for Precision Entries 👀👉 In this video, we explore the inner workings of market trends and, more importantly, how smart money manipulates price action to sweep liquidity, allowing them to place their orders and sustain the trend. We also showcase a powerful, free indicator from TradingView’s extensive toolset. Here's what we cover: 📊 Understanding Trends: How trends truly operate in the market.  💰 Smart Money Tactics: How institutional traders manipulate price action to sweep liquidity and execute large orders.  🔑 Key Levels: Identifying crucial accumulation and distribution zones to approach potential trade setups effectively.  🛠 TradingView Indicators: Learn how to access tools that help spot when price is overextended.  🔎 Market Structure: Discover how to locate resting liquidity and anticipate price reactions, understanding the role of liquidity in market movement.  📈 Trade Setups: Using a practical approach, we examine price interactions with liquidity, blending Wyckoff theory and ICT concepts for sharper trade decisions. Disclaimer: This video is for educational purposes only and is not financial advice. Trading involves significant risks. Be sure to conduct your own research before making any decisions. Trade responsibly.

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09:23

by fxtraderanthony

THE TREND IS YOUR FRIEND...UNTIL THE END...EURUSD EXAMPLE Hey everyone! Hope you are having an AMAZING weekend and beautiful Sunday so far! I just wanted to get on here and post a quick educational video for my Trading View community and share some nuggets I have learned over the last 14 years of being in the markets that hopefully can help you guys reach consistency and ultimately profitability. The subject in this video is "THE TREND IS YOUR FRIEND..UNTIL THE END" hope you guys enjoy get a notepad and paper or iPhone out lol and take some notes! You won't want to miss this! Cheers!

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10:41

Rules of Motive Waves Motive Waves are the components of Elliot Wave structure. Motive Waves consists of 5 sub-waves of which 3 are impulse (In the direction of trend) and 2 corrective waves. The Motive Wave in the upward direction will start with Swing High, Ends with Swing High and consists of 3 Higher Highs and 2 Higher Lows representing strong upward trend. Motive Wave in the downward direction will start with Swing Low, Ends with Swing low and consists of 3 Lower Lows and 2 Lower Highs representing strong downward trend. 🎲 Types of Motive Waves Motive Waves are broadly classified by two types: Impulse Waves Diagonal Waves Diagonal Waves are further classified into Contracting and Expanding Diagonals. These can fall into the category of either leading diagonal and ending diagonal. 🎲 Rules of Motive Waves 🎯 Generic Rule of any motive waves are as follows Should consist of 5 alternating waves. (Swing High followed by Swing low and vice versa) This can start from Swing High and end in Swing High or start from Swing Low and end in Swing Low. Wave-2 should not move beyond Wave-1. This means, the Wave-2 is always shorter than Wave-1 with respect to distance between the price of start and end. Wave-3 always moves beyond Wave-1. This means, the Wave-3 is always longer than Wave-2 in terms of price Among Wave-1, Wave-3, and Wave-5, Wave-3 is never the shortest one. This means, either Wave-1 or Wave-5 can be longer than Wave-3 but not both. Wave-3 can also be longest among the three. Here is the pictorial representation of the rules of the Motive Waves For a wave to be considered as motive wave, it also needs to follow the rules of either impulse or diagonal waves. 🎯 Rules for a 5 wave pattern to be considered as Impulse Wave are: Wave-4 never overlaps with Wave-1 price range Wave-1, Wave-3 and Wave-5 should not be either expanding or contracting. Meaning, we cannot have Wave-1 > Wave-3 > Wave-5 , and we cannot have Wave-1 < Wave-3 < Wave-5 Pictorial representation of the impulse wave rules are as below: 🎯 Rules for the Diagonal Waves are as follows Contrary to the first rule of impulse wave, in case of diagonal wave, Wave-4 always overlaps with Wave-1 price range. Wave-1, Wave-3 and Wave-5 are either in expanding formation or contracting formation. That means, we need to have either Wave-1 > Wave-3 > Wave-5 OR Wave-1 < Wave-3 < Wave-5 Pictorial representation of the Contracting Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in contracting formation. Pictorial representation of the Expanding Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in expanding formation.

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Bullish rates reversal signals US dollar downside risk If you want clues on directional risks for the US dollar, there are worse places to look than US 2-year Treasury note futures, shown in the left-hand pane of the chart. As one of the most liquid futures contracts globally, the price signals it provides can be very informative for broader markets, especially in the FX universe. Having tumbled most of October, implying higher US yields given the inverse relationship between the two, the price action this week looks potentially important. We saw the price take out long-running uptrend support on Wednesday before staging a dramatic bullish reversal on Thursday despite another hot US inflation report. The bounce off the 200-day moving average on the back of big volumes delivered not only a hammer candle but also took the price back above former uptrend support, delivering a bullish signal that suggests directional risks for yields may be skewing lower. You can see that in the right-hand pane with US 2-year bond yields hitting multi month highs on Thursday before reversing lower. But it’s the correlation analysis beneath the chart that I want you to focus on, looking at the strength of the relationship US 2-year yields have had with a variety of FX pairs over the past fortnight. USD/JPY has a score of 0.9 with USD/CNH not far behind at 0.89, signalling that where US 2-year yields have moved over the past two weeks, these pairs have almost always followed. EUR/USD, GBP/USD and AUD/USD have experienced similarly strong relationships over the same period with scores ranging from -0.88 to -0.96, the only difference being where yields have moved, they’ve usually done the opposite. The broader readthrough is that shorter-dated US yields have been driving US dollar direction recently, with rising rates fuelling dollar strength. But given the bullish signal from US 2-year Treasury note futures on Thursday, if we just saw the lows, it implies we may have seen the highs for US yields and the US dollar. Good luck! DS

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Using 15 minute and 5 Minute Time Frames To Scalp In this video we break down how you can use 15minute and 5 minute time frames to Scalp. Your 15 min can be your short term gauge for trend and your 5 minute can be where you enter into the market. Using basic candle sticks patterns I go through a couple different setups one can do on the scalping side of things If you found this helpful: boost, like or comment MB Trader Happy Trading

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06:43

by Mindbloome-Trading

Mastering Support and Resistance: An Essential Tools for Success Support and resistance are cornerstone principles in trading, offering crucial insights into price dynamics and market behavior. These levels act as key indicators, signaling points where an asset's price is likely to either pause or reverse direction. Support refers to the price level where strong demand prevents further declines, while resistance marks the point where selling pressure halts a price rise. Understanding and effectively utilizing these concepts can make a significant difference in trading success. In the realm of technical analysis, which focuses on using historical market data to predict future price movements, understanding support and resistance is essential. Traders rely on these levels to pinpoint optimal trade entry and exit points while also managing risk effectively. By recognizing where the market may reverse or maintain its trajectory, traders can craft more robust strategies. Decoding Support and Resistance Levels Support and resistance levels are vital price points on a chart that traders use to forecast future market behavior. Support represents a level where a downtrend is likely to pause, driven by a concentration of buying interest. In other words, it's the price point where demand is strong enough to stop further declines. For instance, if a stock repeatedly drops to $100 and then bounces back, $100 becomes a recognized support level. On the flip side, resistance is the price level where an uptrend often halts due to a high volume of sellers. Unlike support, resistance is where selling pressure overpowers buying interest, preventing prices from climbing further. If a stock consistently hits $150 and then retreats, $150 serves as a resistance level. Example Support and Resistance on Silver These levels are significant because they represent psychological thresholds for market participants. When prices approach support, buyers may step in, seeing it as a good entry point. Conversely, when prices near resistance, sellers might take action, expecting the price to struggle moving higher. Understanding how these levels work helps traders refine their timing and make more informed decisions. The Impact of Support and Resistance in Technical Analysis Support and resistance are pivotal in technical analysis, guiding traders in interpreting market movements and predicting future price trends. These levels act as psychological barriers that help determine whether a price trend will persist or reverse. For example, if a stock repeatedly approaches a resistance level but fails to break through, traders may interpret this as strong selling pressure and consider selling or shorting the asset. Conversely, if a price consistently rebounds off a support level, traders might see it as a buying opportunity. Example Resistance and Support on Apple Stock Visual tools like charts and diagrams are indispensable for identifying support and resistance levels. By drawing horizontal lines at points where the price has historically reversed, traders can easily spot critical levels and predict potential market movements. These visual aids enhance decision-making by providing a clear picture of where key price barriers lie. The Crucial Role of Support and Resistance Levels in Trading Strategies Support and resistance levels are the foundation of successful trading strategies, offering traders the tools to optimize entry and exit points, maximize profits, and manage risks effectively. For example, when a price hovers near a support level, a trader might take a long position, anticipating a rise in value. Simultaneously, they could place a Stop Loss just below the support level to limit potential losses if the price unexpectedly drops. Similarly, resistance levels provide invaluable insights for deciding when to exit trades or set profit targets. If a price approaches resistance, it might be wise to close a position to secure gains or prepare for a possible reversal. Understanding and identifying support and resistance levels also play a vital role in risk management. Setting Stop Loss orders near these levels helps traders protect their capital from significant losses if the market turns against them. This disciplined approach not only enhances profitability but also promotes long-term success in trading. Different Forms of Support and Resistance Support and resistance levels come in various forms, each providing unique perspectives on market behavior. The most common types include horizontal levels, trendlines, and moving averages. --Horizontal Support and Resistance: These levels are drawn at points where the price has consistently reversed in the past, making them straightforward and widely recognized. Horizontal Resistance on Tesla Stock --Trendline Support and Resistance: Trendlines connect a series of higher lows in an uptrend or lower highs in a downtrend, acting as dynamic support and resistance. In an uptrend, the trendline can signal buying opportunities, while in a downtrend, it might serve as resistance. Trendline Support on EUR/USD --Moving Averages: Moving averages, such as the 50-day or 200-day average, often act as support or resistance. For instance, during an uptrend, a pullback to the 50-day moving average can indicate a buying opportunity. Moving Averages Used as Support and Resistance on USD/CAD How to Identify Key Support and Resistance Levels To identify strong support and resistance levels, traders use several strategies: --Spot Price Clusters: Look for areas where the price consistently reverses direction, signaling strong support or resistance zones. --Use Technical Indicators: Tools like Fibonacci retracements help identify potential reversal levels during pullbacks by dividing a price move into key percentages (38.2%, 50%, and 61.8%). Fibonacci Tool used as Support and Resistance areas on DXY Common Pitfalls When Using Support and Resistance in Trading While support and resistance are essential, there are common mistakes traders should avoid: --Over-Reliance on Exact Numbers: Support and resistance are better viewed as zones rather than exact values. Prices may fluctuate slightly above or below these levels before reversing. --Ignoring Confirmation Signals: Jumping into trades without confirmation can lead to losses. Always look for signs like candlestick patterns or increased volume to confirm that the level will hold. --Chasing Breakouts Too Hastily: Not all breakouts result in sustained trends. Waiting for confirmation, such as increased volume, helps avoid being caught in a false breakout. --Impatience: Many traders act prematurely at support or resistance levels. Patience is key—stick to your trading plan and wait for the right setup. Advanced Strategies for Support and Resistance Trading For more experienced traders, support and resistance levels can serve as the basis for advanced strategies: --Breakouts: A breakout occurs when the price moves above resistance or below support, often signaling the start of a new trend. Confirming breakouts with increased volume helps reduce the risk of false signals. Breakout Confirmation on BTC --Fakeouts: Prices may temporarily breach support or resistance before reversing direction. Advanced traders capitalize on these by waiting for the price to return within the range and then taking positions in the opposite direction. Fakeouts on BTC --Reversals: Traders use reversal strategies when the price changes direction after hitting support or resistance, often signaling the start of a new trend. Area $72000 resistance used as reversal on BTC Conclusion Mastering support and resistance levels is vital for any trader aiming for long-term success. These concepts are the backbone of technical analysis, guiding traders in making informed decisions about when to enter, exit, and manage risks. By understanding and identifying key support and resistance zones, traders can predict price movements, spot opportunities, and refine their strategies. Incorporating technical analysis into your trading routine will boost your confidence in navigating the market. Whether you’re a beginner or a seasoned trader, honing your skills with support and resistance can lead to more disciplined and profitable trading.

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Oscillator Indicators for Experienced Traders (No RSI and MACD)Oscillator Indicators for Experienced Traders (No RSI and MACD) In the realm of technical trading, seasoned traders and beginners alike often turn to indicators to gauge market momentum and potential reversals. While many are familiar with popular tools like RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence), this article takes a different route. Here, we delve into other oscillators—each with its own unique features, significance in trading strategies, and methods for interpreting signals. Once you understand these instruments, you can open an FXOpen account to try them out on the live markets, trading with tight spreads from 0.0 pips and low commissions from $1.50. Stochastic The Stochastic Oscillator, developed by Dr. George Lane in the late 1950s, serves as a momentum indicator. It identifies overbought and oversold conditions in a market and signals potential price reversals. It consists of two lines, and unlike trend-following indicators, such as moving averages, it’s placed below the chart, fluctuating between two bands (0-100). The Stochastic is calculated based on two lines: %K and %D. - %K is the primary line calculated using the most recent close price relative to the high and low prices over a specified period. - %D is a 3-period simple moving average (SMA) of %K. Its common setting is 14 periods, which means that it compares the current closing price to the highest and lowest prices over 14 periods (minutes, hours, days, etc., depending on the timeframe). There are three types of Stochastic: 1. Fast Stochastic: Uses the raw %K and %D lines, providing frequent signals. 2. Slow Stochastic: A smoothed version of the Fast Stochastic, offering fewer but more reliable signals. 3. Full Stochastic: Allows customisation of both %K and %D parameters for specific trading strategies. Signals The Stochastic Oscillator indicator provides three primary signals: - Overbought/Oversold Conditions: An asset is considered overbought when the Stochastic is above 80 and oversold when it's below 20. - Divergences: A bullish divergence occurs when the price forms a lower low, suggesting a downtrend, while the Stochastic simultaneously forms a higher low, indicating underlying strength and potential for an upward reversal. Conversely, a bearish divergence manifests when the price forms a higher high, signalling an uptrend, but the Stochastic forms a lower high, hinting at weakening momentum and a possible downward reversal. - Crossovers: When the %K line crosses above the %D line, it provides a buy signal. Conversely, when the %K line crosses below the %D line, it provides a sell signal. Awesome Oscillator The Awesome Oscillator (AO) is a well-known oscillator in trading. It was developed by Bill Williams for evaluating market momentum and potential trend reversals using a histogram that oscillates around the zero line. The AO is calculated as the difference between a 5-period and 34-period simple moving average (SMA) of the median price (the average of the high and low prices). The default settings are 5 and 3, but they can be customised according to the trader's strategy and market conditions. Signals The AO provides several key signals: - Bullish and Bearish Saucers: A bullish saucer occurs when the AO histogram is above the zero line and shows a series of three bars where the first two bars are red (decreasing in value) and the third bar is green (with a higher value), indicating a potential bullish reversal. Conversely, a bearish saucer occurs when the AO histogram is below the zero line and shows a series of three bars where the first two bars are green (decreasing in value) and the third bar is red (with a higher value), indicating a potential bearish reversal. - Zero Line Crossovers: A bullish crossover happens when the AO histogram crosses above the zero line, suggesting a potential upward trend. Conversely, a bearish crossover occurs when the AO histogram crosses below the zero line, suggesting a potential downward trend. - Twin Peaks: A bullish twin peaks signal occurs when there are two lows in the AO histogram below the zero line, with the second low higher than the first low. This suggests a potential bullish reversal. Conversely, a bearish twin peaks signal occurs when there are two highs in the AO histogram above the zero line, with the second high lower than the first high. This suggests a potential bearish reversal. - Divergence: A bullish divergence occurs when the price makes a lower low, but the AO makes a higher low, indicating that downward momentum is weakening, suggesting a potential bullish reversal. Conversely, a bearish divergence appears on the chart when the price moves higher, but the AO makes a lower high, indicating that upward momentum is weakening, suggesting a potential bearish reversal. Klinger Oscillator The Klinger Oscillator, also known as the Klinger Volume Oscillator, was developed by Stephen Klinger in the 1980s. It measures the difference between two exponential moving averages of volume and is represented by two lines. It addresses the limitations of other volume indicators by focusing on changes in volume trends alongside price movements. The oscillator consists of two lines on a chart: the Klinger line and the signal line, typically a 13-period EMA of the Klinger line. The standard settings for the Klinger Oscillator typically use a 34-period and a 55-period EMA for the Klinger line. The signal line is usually a 13-period EMA of the Klinger line. These settings are designed to capture the medium- to long-term volume trends and filter out short-term noise. Signals The Klinger provides several signals: - Divergences: Bullish divergences occur when the oscillator forms a higher low while the price makes a new low, indicating buying pressure. Bearish divergences occur when the oscillator forms a lower high as the price makes a new high, suggesting potential downward reversals. - Crossovers: Trading signals occur with the Klinger line crossing the signal line. A bullish crossover (Klinger above signal) signals potential price upward movement. Conversely, a bearish crossover (Klinger below signal) suggests opportunities for short positions, indicating bearish momentum. - Zero Line Crossings: Movements across the zero line may define price movements. Crossing above zero may indicate bullish sentiment while crossing below zero suggests bearish sentiment. Chande Momentum Oscillator The Chande Momentum Oscillator (CMO), developed by Tushar Chande, is designed to measure the momentum of a financial instrument. Unlike oscillators that typically range between 0 and 100, the CMO, consisting of a single line, oscillates between -100 and +100. This range allows traders to assess the momentum's strength and direction more dynamically. The standard settings for the Chande Momentum Oscillator (CMO) typically use a 9-period look-back, which aligns with common practices in technical analysis for measuring short- to medium-term momentum. This means that the CMO calculates the momentum based on the price changes over the past 9 periods. Signals The Chande Momentum Oscillator in the stock market and other financial markets provides key signals for traders: - Interpreting Momentum: Values above zero indicate upward momentum, with higher values suggesting stronger bullish momentum and vice versa. - Overbought and Oversold Conditions: Readings nearing +100 suggest overbought conditions, potentially indicating a reversal or slowdown in the upward trend. Conversely, values nearing -100 may signal oversold conditions, suggesting a potential reversal or slowdown in the downward trend. - Zero Line Crossover: Crossing above zero may signal a bullish trend while crossing below zero may indicate a bearish trend, providing traders with entry or exit points. Volume Oscillator The Volume Oscillator is one of the more popular oscillators in trading. It assesses market trends and their strength by comparing two moving averages of trading volume. It consists of a single line. Unlike price-based oscillators, which focus solely on price movements, the Volume Oscillator incorporates volume data, providing insights into the underlying market activity. The standard settings for the Volume Oscillator typically use: - Short-term moving average of volume: 5 periods - Long-term moving average of volume: 20 periods These settings can be adjusted based on the trader's preferences and the specific market or asset being analysed. Signals The Volume Oscillator generates the following signals: - Signs of Strength and Weakness of the Price Movement: A positive oscillator signals strong buying/selling, supporting the current trend and hinting at continuation. Conversely, a negative oscillator suggests the trend may reverse or slow down. - Divergence Signals: Divergence occurs when the Volume Oscillator's direction differs from the direction of the price movement. For example, new price highs accompanied by lower highs in the oscillator may indicate weakening upward momentum, possibly foreshadowing a downturn. Conversely, new price lows without corresponding lows in the oscillator could signal an upcoming upward reversal. The Bottom Line While oscillator indicators provide insights into price movements and potential reversals, relying solely on them for trading decisions may not be sufficient. Considering additional factors like trend analysis, candlestick patterns, support and resistance levels, and broader market sentiment may strengthen trading strategies and mitigate risks. The TickTrader platform has a variety of oscillators that market participants may use to analyse over 600 markets. FAQs How Does an Oscillator Work? Oscillators fluctuate within a defined range or around a centreline. Using mathematical formulas applied to market data, they signal overbought or oversold conditions, trend reversals, or shifts in momentum. What Does Oscillate Mean in Trading? In trading, oscillate refers to the movement of a momentum indicator back and forth within a specific range or around a midpoint. It helps identify trend reversal, momentum changes, and potential trading opportunities. What Is the Oscillator Strategy? An oscillator strategy uses oscillators as the primary tool for trading decisions, getting signals like overbought/oversold conditions, divergences, or crossovers to determine when to enter or exit trades. What Is the Difference Between Indicators and Oscillators? Indicators are the general toolbox for technical analysis, encompassing different tool types, such as trend indicators, oscillators, and volumes. Oscillators are a specific type of indicator that wiggle within set limits, helping traders identify overbought or oversold conditions and potential price 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.

Education

EDUCATION: Using Renko Charts to Find Key Levels in XAUUSD In this tutorial, we'll dive into a unique but powerful method for analyzing gold (XAUUSD): using Renko charts to find critical levels. If you’re unfamiliar with Renko, it's a chart type designed to filter out market noise, making it easier to spot trends and reversals. Unlike traditional candlestick charts, Renko focuses on price movement rather than time, allowing you to identify significant support and resistance levels with greater clarity. When you understand how to use Renko properly, you gain an edge in navigating volatile markets like gold. With a calm and disciplined approach, we’ll guide you step-by-step through the process of setting up Renko charts, recognizing key patterns, and spotting levels that can give you a stronger sense of market direction. The goal is simple: cut out the clutter and focus on what matters—the bigger picture. Whether you're looking to improve your entries or better understand market structure, this tutorial will provide practical insights to help you refine your trading strategies. By the end, you’ll not only grasp how to use Renko charts but also develop the mental sharpness needed to stay patient and unemotional in the face of market fluctuations.

Education

09:20

Must-Read Investing Books: The Top 5 for Every Investor Welcome to Part 2 of our must-read book series. Last time, we took a deep dive into the fast-paced world of trading, giving you the trading must-reads to sharpen your short-term, high-risk market chops. Now it's time to slow down and shift into a lower gear. Trading is a thrill, but investing is where the long game pays off. While trading is about timing, investing is about patience—and, some might even say, good investing is boring. So let’s be real, mastering both is how you dominate. In this Idea, we’re focusing on the timeless art of investing. Whether you’re gunning for that Warren Buffett-level compound interest or just looking to stack up some dividends, these five books will teach you how to think like an investor. Grab your coffee and your notepad—let’s dive in. 📖 1. The Intelligent Investor ✍️ by Benjamin Graham We’re kicking things off with the granddaddy of all investing books. Benjamin Graham’s The Intelligent Investor is the Bible of value investing. Benjamin Graham is the father of value investing, and his no-nonsense approach to buying undervalued stocks and waiting for the market to catch up is the gold standard. Graham teaches you how to analyze companies for their intrinsic value, while cautioning against the emotional rollercoaster of market volatility. It’s all about buying low, staying patient, and letting time do its thing. 🔑 Key Insight : Ignore market noise and buy undervalued assets with a long-term view. Stick to your strategy and let time do its thing. 📖 2. Common Stocks and Uncommon Profits ✍️ by Philip Fisher Philip Fisher introduces growth investing with a focus on buying quality companies. In Common Stocks and Uncommon Profits , Fisher explains his "scuttlebutt" approach—researching a company thoroughly, from its management to its industry (think investigative journalism on a stock). This book is a must-read for those looking to spot the next Apple AAPL or Amazon AMZN before they become household names. 🔑 Key Insight : Invest in great companies with solid growth potential. Deep research is your key to success. 📖 3. The Most Important Thing ✍️ by Howard Marks Howard Marks is a legend in the world of risk management and value investing, and The Most Important Thing is essentially his playbook. Marks dives deep into risk, market cycles, and contrarian thinking—he teaches you how to avoid getting wrecked by the market’s irrationality. This isn’t your typical book on the topic of investing; it's a mindset shift and an eye-opener—everyone is a genius when markets rise. But what defines the true investing skill is how you perform in tough times. 🔑 Key Insight : Success in investing is more about managing risk than chasing returns. Protect the downside, and the upside will take care of itself. 📖 4. The Little Book of Common Sense Investing ✍️ by John C. Bogle John Bogle—the finance genius who invented the index fund—drops some serious knowledge in The Little Book of Common Sense Investing . This book strips away the complicated jargon and exclusivity surrounding Wall Street and keeps it simple: low-cost index funds will beat active management in the long run. Bogle’s philosophy is all about minimizing fees and letting compounding work miracles over time. 🔑 Key Insight : Keep it simple. Low fees and long-term compounding are the keys to building wealth. 📖 5. The Essays of Warren Buffett: Lessons for Corporate America ✍️ by Warren Buffett and Lawrence Cunningham Okay, we all know Warren Buffett is the GOAT when it comes to investing. The Essays of Warren Buffett is a collection of his legendary letters to Berkshire Hathaway BRK.A shareholders, curated and organized to offer a behind-the-curtain insight on everything from corporate governance to value investing. Buffett has a knack for simplifying complex financial ideas, making this book an invaluable resource for investors of any level. 🔑 Key Insight : There’s no better teacher than Buffett when it comes to long-term, value-based investing. His wisdom is timeless and actionable—invest in solid companies with long-term growth prospects, and don’t get distracted by short-term market swings. 📚 Bonus Picks: The Investor’s Library Expansion Pack Looking for even more wisdom? Here are a few more titles to round out your investing education: 📖 The Snowball by Alice Schroeder A biography of Warren Buffett, The Snowball takes you inside the mind of the Oracle of Omaha, showing how his investment philosophy developed and how he built his fortune. It’s part investing guide, part life lesson, and all-around a fascinating read. 📖 The Psychology of Money by Morgan Housel This book explores how our emotions, biases, and behaviors affect our financial decisions. The Psychology of Money breaks down complex financial concepts into easily digestible stories that reveal how investors can avoid the psychological traps that lead to poor decision-making. 📖 One Up on Wall Street by Peter Lynch Legendary investor Peter Lynch shares his strategy of finding "tenbaggers"—stocks that increase tenfold in value. Lynch teaches that sometimes the best investment ideas are right in front of you—pay attention to the businesses you love and understand. 📖 A Random Walk Down Wall Street by Burton Malkiel Random Walk argues that trying to time the market is a fool’s errand. Instead, Malkiel promotes the idea of efficient markets, where it’s almost impossible to outperform the market consistently without taking on substantial risk. It's an excellent guide for those who believe in passive investing and long-term strategies. 📖 Mastering the Market Cycle by Howard Marks Another essential from Howard Marks, Mastering the Market Cycle teaches you how to recognize the ups and downs of the market and adjust your strategy accordingly. Timing the market may be impossible, but understanding its cycles will give you an edge. And there you have it—five more powerhouse reads to add to your investing library. These aren’t just books; they’re roadmaps from some of the sharpest minds in finance. Whether you’re looking for market cycles with Howard Marks or tapping into Warren Buffett’s timeless wisdom, each of these picks will help you get better in the long game. The best investors aren’t just lucky—they’re educated, patient, and, most importantly, they’re always learning. So grab a book, dive in, and start stacking knowledge that compounds just like your portfolio should. 💎 Got any personal favorites that didn’t make the list? Drop them in the comments—we’re always down to discover more investing wisdom!

Education

The Formula That Helped Me Get Into in the Top 2% of Traders I spent years testing different strategies, obsessing over charts, and trying to find the perfect entry point. It took me a while to realize that it wasn’t just about picking the right trades—it was about knowing how much to risk on each trade. This is where the Kelly Criterion came into play and changed my entire approach. You’ve probably heard the saying, “Don’t put all your eggs in one basket.” Well, Kelly Criterion takes that idea and puts some hard math behind it to tell you exactly how much you should risk to maximize your long-term growth. It’s not a guessing game anymore—it’s math, and math doesn’t lie. What is Kelly Criterion? The Kelly Criterion is a formula that helps you figure out the optimal size of your trades based on your past win rate and the average size of your wins compared to your losses. It’s designed to find the perfect balance between being aggressive enough to grow your account but cautious enough to protect it from major drawdowns. F = W - (1 - W) / R F is the fraction of your account you should risk. W is your win rate (how often you win). R is your risk/reward ratio (the average win relative to the average loss). Let’s break it down. How It Works Let’s say you have a strategy that wins 60% of the time (W = 0.6), and your average win is 2x the size of your average loss (R = 2). Plugging those numbers into the formula, you’d get: F = 0.6 - (1 - 0.6) / 2 F = 0.6 - 0.4 / 2 F = 0.6 - 0.2 = 0.4 So, according to Kelly, you should risk 40% of your account on each trade. Now, 40% might seem like a lot, but this is just the theoretical maximum for optimal growth. The thing about using the full Kelly Criterion is that it’s aggressive. A 40% recommended risk allocation, for example, can be intense and lead to significant drawdowns, which is why many traders use half-Kelly, quarter-Kelly or other adjustments to manage risk. It’s a way to tone down the aggressiveness while still using the principle behind the formula. Personally, I don’t just take Kelly at face value—I factor in both the sample size (which affects the confidence level) and my max allowed drawdown when deciding how much risk to take per trade. If the law of large numbers tells us we need a good sample size to align results with expectations, then I want to make sure my risk management accounts for that. Let’s say, for instance, my confidence level is 95% (which is 0.95 in probability terms), and I don’t want to allow my account to draw down more than 10%. We can modify the Kelly Criterion like this: 𝑓 = ( ( 𝑊 − 𝐿 ) / 𝐵 )× confidence level × max allowed drawdown Where: 𝑊 = W is your win probability, 𝐿 = L is your loss probability, and 𝐵 = B is your risk-reward ratio. Let’s run this with actual numbers: Suppose your win probability is 60% (0.6), loss probability is 40% (0.4), and your risk-reward ratio is still 2:1. Using the same approach where the confidence level is 95% and the max allowed drawdown is 10%, the calculation would look like this: This gives us a risk percentage of 0.95% for each trade. So, according to this adjusted Kelly Criterion, based on a 60% win rate and your parameters, you should be risking just under 1% per trade. This shows how adding the confidence level and max drawdown into the mix helps control your risk in a more conservative and tailored way, making the formula much more usable for practical trading instead of over-leveraging. Why It’s Powerful Kelly Criterion gives you a clear, mathematically backed way to avoid overbetting on any single trade, which is a common mistake traders make—especially when they’re chasing losses or getting overconfident after a win streak. When I started applying this formula, I realized I had been risking too much on bad setups and too little on the good ones. I wasn’t optimizing my growth. Once I dialed in my risk based on the Kelly Criterion, I started seeing consistent growth that got me in the top 2% of traders on TradingView leap competition. Kelly in Action The first time I truly saw Kelly in action was during a winning streak. Before I understood this formula, I’d probably have gotten greedy and over-leveraged, risking blowing up my account. But with Kelly, I knew exactly how much to risk each time, so I could confidently scale up while still protecting my downside. Likewise, during losing streaks, Kelly kept me grounded. Instead of trying to "make it back" quickly by betting more, the formula told me to stay consistent and let the odds play out over time. This discipline was key in staying profitable and avoiding big emotional trades. Practical Use for Traders You don’t have to be a math genius to use the Kelly Criterion. It’s about taking control of your risk in a structured way, rather than letting emotions guide your decisions. Whether you’re new to trading or have been in the game for years, this formula can be a game-changer if applied correctly. Final Thoughts At the end of the day, trading isn’t just about making the right calls—it’s about managing your risks wisely. The Kelly Criterion gives you a clear path to do just that. By understanding how much to risk based on your win rate and risk/reward ratio, you’re not just gambling—you’re playing a game with a serious edge. So, whether you’re in a winning streak or facing some tough losses, keep your cool. Let the Kelly formula take care of your risk calculation. If you haven’t started using the Kelly Criterion yet, now’s the time to dive in. Calculate your win rate, figure out your risk/reward ratio, and start applying it. You’ll protect your account while setting yourself up for long-term profitability. Trust me, this is the kind of math that can change the game for you. Bonus: Custom Kelly Criterion Function in Pine Script If you’re ready to take your trading to the next level, here’s a little bonus for you! I’ve put together a custom Pine Script function that calculates the optimal risk percentage based on the Kelly Criterion. You can easily enter the variables to fit your trading strategy. // @description Calculates the optimal risk percentage using the Kelly Criterion. // @function kellyCriterion: Computes the risk per trade based on win rate, loss rate, average win/loss, confidence level, and maximum drawdown. // @param winRate (float) The probability of winning trades (0-1). // @param lossRate (float) The probability of losing trades (0-1). // @param avgWin (float) The average win size in risk units. // @param avgLoss (float) The average loss size in risk units. // @param confidenceLevel (float) Desired confidence level (0-1). // @param maxDrawdown (float) Maximum allowed drawdown (0-1). // @returns (float) The calculated risk percentage for each trade. kellyCriterion(winRate, lossRate, avgWin, avgLoss, confidenceLevel, maxDrawdown) => // Calculate Kelly Fraction: Theoretical fraction of the bankroll to risk kellyFraction = (winRate - lossRate) / (avgWin / avgLoss) // Adjust the risk based on confidence level and maximum drawdown adjustedRisk = (kellyFraction * confidenceLevel * maxDrawdown) // Return the adjusted risk percentage adjustedRisk Use this function to implement the Kelly Criterion directly into your trading setup. Adjust the inputs to see how your risk percentage changes based on your trading performance!

Education

How I stopped strategy hopping by creating my own strategy In the fast-paced world of trading, many of us, especially when beginning our journey, we find ourselves caught in a relentless cycle of strategy hopping. We jump from one strategy to another, lured by the promise of quick profits. However, this constant shifting often leads to frustration, a sense of not making any progress, and most importantly, a lack of consistent results. I experienced this firsthand as I back-tested, forward-tested, and executed various trading systems, on demo and live accounts, each time hoping for better outcomes but always ending up not meeting expectations and feeling more or less stuck in the same position of having to find a profitable trading strategy. Eventually, after having tried many different systems that I found online, I decided to finally try to create my own and this time stick to a single system for a prolonged period of time. This idea/publication explores my journey on how I created this simple trading strategy and how I used my engineering background to create a semi automated-trading system around it. And just to clarify, this is not financial advice, this should serve as an idea. If you want to try this out, do so at your own risk, after understanding the concept and after testing. I’m still testing this myself, but in theory it’s sound, and so far in my forward-testing is performing very well! Scalping, Day trading, Swing trading, Fibonacci levels, Support/Resistance levels, round psychological levels, Bollinger bands, EMAs, RSI, MACD, ICT, Smart money concepts, algo-trading, forex, crypto, indices, metals, multi-timeframe analysis, etc, etc. I’ve traded in these timeframes: D, 8h, 4h, 2h, 1h, 30m, 15m, 5m, 1m, and I’ve explored quite a few different strategies based on the concepts I just dumped above so I don’t bore you with every single case, and so based on that experience I’m taking a few considerations before creating my strategy. First, I’ll be trading forex, metals, and maybe crypto and indices. Personal choice. But there’s no reason this shouldn’t work in any other market. Second, I personally need to be more consistent on when it comes to analyzing the charts. So, for now let’s say that I’ll “log-in” every day, Monday-Friday, some amount of time during NY session. Third, I’ve learned that multi-timeframe analysis is better than analyzing only one specific timeframe, so I’ll include that. Next, I know there are different approaches, but from my perspective the market is either trending or not trending (aka consolidating; bouncing between two levels, imperfectly). I guess it’d be great to have one strategy for trending markets and one for markets that are in consolidation, but for now I’m specifically picking a trend-following strategy. I found that following the trend can be very rewarding, especially when you catch it from the start or near it and are able to exit right before it ends (that’s the tricky part, but we’re only talking theory for now). So a totally reasonable idea would be to try to enter the market on pull-backs, while expecting the price to continue in the direction of the main trend. So a Fibonacci retracement tool sounds ideal for this method. I’d like to somehow incorporate algo-trading up to some extent. I have a software engineering background, so it comes natural for me to try to create or adjust an existing trading bot to execute operations for me. But the issue I always had was creating a trading bot to spot good opportunities. It is just not easy to achieve, for any trading strategy. And that is because of the constantly changing nature of the markets. It requires subjectivity by a human to some extent when it comes to reading, understanding the market and predicting a direction. 💡 So with that said, now, two very important ideas I realized that this system exploits. 1. You don’t need to know exactly up to where price is going to retrace to on the Fibonacci tool. You can bet on more than one level. 2. You don’t need to create a trading bot that “fully” automates trading. It can only handle the part of managing the position(s). Let me explain. With the Fibonacci Retracement tool the trader is free to choose however many levels they want to visualize. And that is great, but it’s not easy to predict accurately and consistently up to which level price is going to retrace. We might miss some trades if we bet on a bigger pull-back and price continues on the trend without hitting our entry, or, we might experience some losses if we bet on a smaller pull-back and price decides to retrace more, and then continue on the same trend direction (which is even more painful to see lol). So the idea here is to place more than one order based on a few different fib levels. Managing more than one position can be challenging, but that’s when the next idea comes into play. “Semi” automating the strategy with the help of a trading bot. As I mentioned previously, at least for me it has been difficult to create a trading bot that can reliably match the trading opportunities that I would find. Sometimes the bot would find good opportunities, but some other times it would find opportunities that wouldn’t make sense to take because of other reasons (price close to some Support/Resistance level, news, different direction on higher timeframes, etc) and if all of those reasons were taken into account that would increase the complexity of the code and most of the time the actual opportunities found by the bot would decrease (including the good ones!). So it’s a trade-off. On the other hand, managing the position(s) is totally doable for a trading bot. Managing one or more open positions or pending orders is done after confirming a trading opportunity, so a trading bot can do precisely what a human would do based on the same conditions. And creating that kind of bot is not that complicated to achieve. So with all of that in mind I started writing some rules for the trading strategy. Timeframe for entries: 15m Multi-timeframe analysis: D, 4h, 1h, 15m I’ll be spotting opportunities around NY session open I’ll need a trading bot to manage the positions for me so I don’t stare at the charts for too long (not because I don’t want to, but because apart from having other things to do it wouldn’t improve the outcome! + that the trading bot is much better at handling its emotions :wink) I’ll focus on EIGHTCAP:XAUUSD first and maybe later I’ll apply this strategy to other markets. Let’s focus for a bit on the fib tool and the positions for now. The screenshot below shows the levels that I’m using. And for now I’m just betting on 3 positions. Again, managing more than one position can be tricky, but I’m relying on the fact that a trading-bot can help us in this part which is easy for the bot to handle. And apart from that we only have one position open at a time so it’s not actually that hard as it might sound if we don’t want to use a trading bot. Of course no system is perfect, so losses are expected. But I’m positioning myself in a way that my wins will cover my losses and give me good profit. In consequence, risk management is very important. With every bet or fibonacci tool I place and open X positions (in this case 3) I want to make sure that in total I’m not risking more than 0.5% of my total account balance. This part depends on the trader, some traders can tolerate bigger draw-downs, and so they can risk more % per position, others risk less, I personally like 0.5% for now. At the time of writing this I’m testing with the following risks: Position 1 (2.3R if TP hit): 0.10% of the account balance Position 2 (3.6R if TP hit): 0.18% of the account balance Position 3 (4.2R if TP hit): 0.22% of the account balance With those positions placed these things can happen: 1. Price doesn’t retrace enough to trigger any of the pending orders and continues in the same direction of the trend. In that case, when there’s a new higher high or lower low we just cancel our pending orders and analyze again to spot new opportunities. 2. Price retraces enough to hit all of our SL resulting in a loss of the 3 positions (-0.50%) 3. Only Position 1 gets triggered and we go to TP (2.3R * 0.10% = 0.23% gain) 4. Position 2 gets triggered and we go to TP (-0.10% + 3.6R * 0.18% = 0.55% gain) 5. Position 3 gets triggered and we go to TP (-0.10% - 0.18% + 4.2R * 0.22% = 0.64% gain) Nothing to do with alternatives 1 & 2 as it’s normal for us to lose or miss an opportunity sometimes. With alternative 3 we have a small gain. And with alternatives 4 & 5 we have a slightly better gain than our total risk of 0.50%. Now all of that might not sound ver impressive and it’s because this follows the fixed position way of managing the positions. Trailing the SL many times can produce much better returns when managed properly. But more on that later. Possible winning example below using ATR trailing SL. But let’s stick to the fixed positions for now to understand and get used to the system first and then you can let the bot do the management with the trailing SL method. Now why those specific risk %s for those 3 positions? The reasoning is that in my recent trading I’ve noticed that price tends to retrace enough to trigger either my Position 2 or my Position 3 more often than triggering only my Position 2. So it makes more sense to me to add slightly higher risk on those to increase profit. However, in my experience, in the higher timeframes price retraces even to the 38.2% level to then continue in the same trend direction more often than on the lower timeframes. But this part as I said depends on the trader, if you decide to incorporate this strategy/system to your trading you are free to choose different risk % per positions. Additionally, you could even open more positions (again, relying on the trading bot for position management), and of course following a good risk management plan by adjusting the risk for all positions and sticking to a total of less than 2% risk per fib tool placement. But this also depends on the trader. Sometimes price does like to ‘grab liquidity’ by retracing slightly more than the 100% level, hitting my last SL, and then continue on the trend direction we placed our bet on. However, I think that 3 positions is enough, at least for me, specially in the lower timeframes. Let’s focus on the trading bot for a bit now. As I said the bot should only manage my positions so I need a way to turn it on when I spot a good opportunity and then let it run until the position hits SL or TP, or it gets closed because of another reason. In this case I developed two systems. One is with fixed SL and TP, and one is with managing the position(s) with a trailing SL. The trailing SL is based on the current ATR value, but this could be expanded even further to another method of trailing SL based on specific levels the user provides (e.g. when in 1.4R move SL to break-even, when in 2R move SL to 1R, etc). For now I tested with fixed positions and with ATR trailing SL and they both work great and are profitable. The rules can be extended even more, for instance you choose the ATR trailing SL method and still place TP on the -27% or on the -61.8% fib levels so positions fully close on those levels, or you could close partially let’s say 30% when TP1 is hit (0% fib level) and then keep trailing, etc. There are many variations, and those can be handled by the bot based on the initial configuration. So on how the actual trading bot works. I developed a PineScript strategy that fires alerts that I can use with a service like PineScript to execute the operations but I found that those services most of the time don’t allow managing multiple positions at once and have other complications. So I created my own webhook server that receives the alerts and I also developed an EA that receives that information and executes the operations but this is still in testing phase and is not ready for use unless you have advanced technical knowledge. I’m thinking of ways to make this available however and would love some thoughts/feedback/suggestions! This strategy can still be applied even without a trading bot. However the trading bot would make the system much better and allow for more time to maybe analyze different markets and take on more trading opportunities, or just focus on other stuff. So to put all of this together now we’re only missing the part of spotting the opportunities. There are different ways, I personally just look for trends. I rely on simple price action (for uptrend I want to see clear higher highs and higher lows, and for downtrend I want to see clear lower lows and lower highs), a smoothed Heikin-Ashi EMA, and sometimes on the ADX indicator to see how strong the trend is. In the example below I show my thought process while applying this strategy on a forward-testing phase. This is exactly how I saw the chart when I logged-in for my trading session a few days ago. In the higher timeframes I checked that there is room for price to keep going up, that means that there shouldn’t be a S/R level or round psychological level near price. Having also analyzed higher timeframes and seen that it makes sense for price to continue this uptrend I decided to place my fib tool. I usually consider wicks too. So I place the first fib limit on the higher low, and the second fib limit on the higher high. Having placed the fib tool and created the pending orders now we need to wait for price to trigger our positions. But sometimes price is not done and keeps going up, invalidating our higher high (or lower low on a downtrend). When that happens we just need to stay focused on when price closes to see if a new higher high has been formed. If that happens we simply update our fib tool placement, and update the pending orders (entry, SL, & TP). This is a condition that the trading bot can probably handle. Eventually price will make it clear where the higher high is, and we finally see a retracement. And now we wait… but still focused in case we need to adjust our fib tool and pending orders if price is not yet retracing. Price drops with a strong move. Now we just step away, we already have the positions placed with SL and TP. We did our analysis, and so we don’t need to look at the charts and let any negative emotions gain control. At this point with fixed positions we can just close the charts and give an end to this trading session. And if using the trailing SL method we just leave it to the trading bot to manage the positions. In this case I was just testing the fixed positions and it unfolded into a win for the 3rd position. So overall about a 0.64% gain (the best alternative). So this is it. This covers the base of this strategy and my thought process while creating the rules for this system. It can be adjusted to different timezones as well, different markets depending on the asset type, etc. I’ve been forward-testing this strategy and system for a few weeks so far and it seems very promising. And I couldn’t wait any longer to share this idea in hopes that you can learn at least something from everything I shared. I’d also love to hear if anyone would be interested in using a system like this with the actual trading bot, so I can plan best on how to make it accessible to other users that don’t have technical/engineering knowledge. In conclusion, I shared my journey from strategy hopping to creating my own trading strategy based on my own needs. By exploring the key ideas of leveraging the Fibonacci retracement tool to bet on multiple positions and embracing a semi-automated approach, I’ve developed a system that aligns with my trading style and allows for necessary flexibility in response to market changes. If you find yourself caught in the cycle of strategy hopping, or don’t see the results you expected (be reasonable though!) I urge you to reflect on what you truly want from your trading experience. Consider creating your own strategy that aligns with your objectives and trading style! And feel free to take ideas from this article to build your own system. Share your thoughts and experiences in the comments below. I’d love to hear it, any thoughts/feedback or suggestions are appreciated. Looking forward to the discussion. Thanks, and good luck!

Education

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