AUDUSD ____ INCOMING BULLISH MOVEHello Guys,
I do hope the trading week has been fair to you.
Now the breakdown of this pair.
Let's start from the weekly, we have a bullish CHOCH on the weekly timeframe. Dropping to the daily timeframe, you will notice that we have buy-side liquidity (relatively equal highs) to hunt and the actual demand orderblock is below a swing low. (see annotations)
You will notice that I marked my daily demand orderblock on the wick of the candle. That is because the wick embodies the manipulation that ran the sell-side liquidity (relatively equal lows).
Follow for more updates.
Cheers,
Jabari
Editorspick
Part 1 - A Beginner's Guide to Breakdown TheoryThe Concept Of Supply & Demand
The price movement of the security is the result of demand(buyers) & supply(sellers):
If the supply is more than the demand, there are more sellers than buyers than sellers, which results in a price fall.
If the demand is more than the supply, there are more buyers than sellers, which results in a price surge.
If the demand equals supply, price consolidates in the range.
Demands = supply
This is an equilibrium area in which demand and supply are equal. The price forms the value area, where both buyers and sellers are equally satisfied with the current price movement. Neither buyer is looking for a price surge nor the bear is waiting for the plunge, at least for some time. The supply and demand are a deadlock or clueless about the upcoming dominance.
Let's take an example to understand these supply and demand conditions:
- The provided chart of TESLA shows a real-time example of the supply and demand effect on the price. In the beginning, Demand pressure was more than Supply pressure, and The stock started rising as buyers outnumbered sellers. As the stock price rose, some buyers started losing interest in purchasing more shares due to the high price. Eventually, the demand and supply pressures reached equilibrium.
- At this point, both buyers and sellers were satisfied with the price movement, as the demand matched the available supply. At high prices, sellers began to take advantage of the situation by selling their stock, leading to a decrease in price. The supply of stock exceeded the demand, and buyers were unable to respond with further bullish moves.
Elements Of The Breakdown Theory:
(1) Value Area:
As the name implies, the value area is the price zone where most trading activities happen. In the value area, buyers and sellers are satisfied and agree with the current price movement. Purchasers are Neither interested in the further price surge nor do sellers agree to a decline in the price during the equilibrium period.
Value area includes two boundaries:
Upper boundary: It represents the supply pressure, which stops the security of the price rise. If the stock crosses down the upper band with volume, the price may be ready for a bearish move. The price signals a weak structure if it fails to trade above the upper band for a long time. This structure is a bearish move.
Lower boundary: It illustrates the demand pressure, which stops the security of the price fall. If the stock crosses up the upper band with volume, the price may be ready for a bullish move. The price signals a strong structure if it fails to trade above the lower band for a long time. This structure is a bullish move.
(2) Excess:
The excess price can be identified above the upper band and below the lower band. It shows a clear rejection of a certain price level and it reacts as support and resistance levels. It indicates the intuition of long-term traders.
The price spends minimal time outside the value area. It tends to reverse its direction and move back inside. It can create an opportunity for traders to sell above and buy below the value area.
For example, the price falls below the lower band but then reverses the movement. Traders can take advantage of this by buying the security with a tight stop loss, aiming for targets up to the upper band or potentially higher.
- The provided chart depicts the daily timeframe of SHREECEM stock from May 1999 to July 2001 . During this period, SHREECEM experienced four excess at the upper boundary and three at the lower boundary of the value area. At 3rd excess of the lower boundary, buyers couldn't respond by a strong bullish move, and sellers rule the movement by supply pressure.
How to draw value area/ Equilibrium?
Step 1 : Obtain a price chart of the tradable instruments(stock, commodity or forex, etc.) with a suitable time frame. As per my observation, daily and, or lower is better.
Step 2 : Look for an area on the price chart where the price is moving within a specific range.
Step 3 : Mark the trading area with the highest trading activity with good volume, which will be marked as a value area.
Step 4 : Mark the area with relatively low trading activities where the price couldn't stay for too long at a certain level, which will be marked as excess.
Step 5: Clearly separate the value area from the excess price areas to visually distinguish between the two.
Step 6 : Observe the repetitive up and down movements within the value area.
Step 7 : Extend value - boundaries rightward on the chart. Observe how price reacts near boundaries for future insights.
Example 1:
- AAPL has formed five price excesses, two above the upper and two below the lower boundary. After selecting the chart, I separated the excess from the price zone.
- Generally, We need to find a price range where most prices touch the upper and lower boundaries. Any prices above the upper boundary or below the lower boundary are considered excess.
Example 2:
- In another Apple chart, the price has formed three excesses. The first excess happened when bulls couldn't overcome the volume of sellers and ended up losing momentum. The second excess occurred when sellers were unable to break below the lower band and lost their strength. At the third excess, AAPL couldn't generate bullish volume, and sellers dominated the selling.
Finally, the price fell to the lower boundary, and bulls responded with a massive volume. Demand exceeded supply, and sellers were outnumbered.
Example 3:
- In the hourly timeframe chart of AMZN, the stock was experiencing a downward trend and entered a consolidation phase. Two excesses were observed, one at the upper boundary and the other at the lower boundary.
- At the second excess, bulls responded with a sharp decline, but they were unable to maintain their momentum above the upper band. This lack of sustainability in their upward move increased the confidence of sellers, leading them to drive the price down for a longer duration. Sellers increased the supply and pushed the price of AMZN down with a gap and strong volume.
Example 4:
- It is the EURUSD 4-hour timeframe chart. EURUSD has more than nine price excesses, with five above the upper boundary and four below the lower boundary. The 5th excess marked the most significant response from buyers, countered by sellers. Subsequently, the length of the excesses decreased.
- At the 9th excess, the buyers' initiative to push the price above the upper boundary couldn't be sustained, as the sellers' trading volume exceeded that of the buyers.
In the next part, we will delve into the other components in more detail.
Creating an article that caters to both beginners and experts can be quite challenging and time-consuming. However, if you would like the next part to be available sooner, please show your support by hitting the like button. Your encouragement will motivate me to continue writing and sharing valuable insights.
Thank you for taking the time to read!
The Timeless Abyss of Trading: The Greatest Trap Of All-timeI am here with a unique topic. It is about a psychological trading trap called the cycle of doom. What got me interested in this psychological topic? Well, there are very few articles about it. You can count them on one hand, and more than 90% of traders are losing money.
Most traders find their method of trading. What stops them from becoming profitable traders? Tradingview platform is one of the biggest charting platforms that provide an educational section and editorial peak for traders to sharpen their knowledge related to technical analysis, trading methodology, trading psychology, etc.
As a trader, we are making market memories by improving screen time, practicing technical analysis, analyzing option data(if applicable), and a lot more. Why do we still fall short in applying in real time? What stops us from becoming a profitable trader? Something looks missing out!
I would like to draw your attention to the psychological trap cycle of doom, a topic discussed by only a few traders. Let me be clear, I do believe that this topic is universally applicable!
The cycle of doom is made up of three phases:
The search
The Action
The Blame
"Sun Tzu said Know the enemy and know yourself in a hundred battles you will never be in peril."
In order to exit from the loop of the cycle, we have to understand the parts of the cycle.
1) The Search:
Probably, it's the first phase of the cycle. Just recall your initial stages of trading. You were finding a trading strategy to make money out of the money. You may have asked to friend, watched a YouTube video, read an article on Tradingview, bought a book or course or indicators, or purchased the strategy. At that time, you were entered into the cycle.
Additionally, we should never trade for enjoyment but treat it as a business. The statement does not apply to the initial stages. Trader explores new methods, theories, and systems.
Postulate, Trader A uses X theory to do their day trading for a living, and you were impressed and took it to put your money on it, or you found the method by yourself. The trader will switch his next position after finding a system that is convenient for his trading and trusts that he can take minimal risks to achieve expected returns.
2) The Action:
The Action phase is the second phase of the cycle. Now, you have a trading system that will make your money grow to expected returns. This phase can be super exciting for traders as they believe he has an edge and is most likely a key to opening a present of unrealistic returns.
Issues arise when a trader employs their strategy without supporting evidence, like backtesting results. Your heart may be pounding, and your fingers may be trembling like a child, but it doesn't mean you should directly trade the strategy without checking the results, failure, and performance of the system.
Just five percent of traders actually test a trading system before putting it into action. You might discover that the trading system performs well for a prolonged period. Suddenly, a drawdown appeared! At a certain point, everything may seem bleak. While profits might flow in initially, eventually, the losing trades start to accumulate.
It's a red signal for traders that their trading system is now on oxygen. I don't think traders can trust the system after a big streak of losing traders. You have entered into the blame phase.
3) The Blame:
The Blame is the final stage of the cycle. As we discussed, the trader has lost their trust in his trading system, which was a holy grail for him at the initial stage. The Red portfolio hurts more than a break-up. The trader is not happy with the system as it has wiped out the gain + trading capital, and the trading system is the only cause that affected the profit and wants to remove the system and search for a new strategy.
4) Loop of the cycle:
As can be seen, the trader again finds a new strategy and makes an effort and action on it, then blames the system. The cycle repeats and traps the trader in this way.
How to get out of the cycle?
1. Modification is the only way to survival & Trust the system:
Traders should modify their strategy according to market conditions, instruments, and trading style. Maybe not everything works for everyone. Therefore, traders should do this according to him. For example, I use Elliott wave theory as the first base and price action as a confirmation tool along with different indicators according to the situation. I do modify Elliott and price action as per my observation of price moves and wavelength.
2. Backtesting is the holy grail:
Choosing trading theory also depends on traders' mindset, risk-aptitude, and expected return. Scalpers will never check the PE, P/S, or EV/EBITDA ratio of the firm just because of their duration and risk-reward calculation.
After choosing an appropriate trading strategy, traders should backtest their trading strategy before doing real-market transaction. We have the advantage of backtesting tools, algo, and virtual account, which was not available for pit traders.
3. Risk management:
Already many ideas are available on this topic. The trading system should be giving proper returns as per the taken risk unless it is nothing more than Drilling a well in the desert.
I need more time to write a full idea on the escape of the cycle of doom.
Thank you!
@Money_Dictators
AUDCHF ____ INCOMING BEARISH MOVEHello Guy,
It's another trading week and I want to share my view on AUDCHF with you. Legggoooo!!!
If you take a look at the monthly timeframe, you will notice that price just reacted from a monthly orderblock.
If you drop down to the weekly timeframe, you will notice that price had created a bearish CHOCH and has retraced to the weekly supply OB from which we can expect a bearish continuation. You may also notice that we are currently at the neckline of the M pattern on the weekly chart.
On the daily chart, you will notice how price just took out a strong supply zone which caused a strong drop in price. You can also notice the W pattern and we should expect a retracement.
Now, I am monitoring price movement in the 1-hour timeframe to see if I can get my trade setup to go short.
Endeavor to keep this pair on your radar.
Follow for more updates like this.
Cheers.
Jabari
NZDCAD ____ INCOMING BEARISH MOVE (RISKY)Hello Guys,
I would just point out briefly why I will take this trade if my setup appears despite it being risky and I will also share why I think it is risky.
Why is it RISKY? If you go on the weekly chart, you will notice there was a W pattern and price retraced and printed the continuation of the W pattern which should likely make us reach for higher prices. Which means that price could break above my daily OB.
Why will is still take the trade? This is because we also have a W pattern on the daily that needs retracement and also we just retraced to the supply orderblock which caused a bearish CHOCH on the daily chart.
I will take the short trade if I see a clear bearish CHOCH on the 1hour chart.
Do you think it is a risky trade?
Follow for more updates like this.
Cheers,
Jabari
Part 1: Equity Derivatives - A Beginner's GuideWhat are derivatives?
Basic interpretation : something which is based on another source.
A derivative is a contract or product whose value derives from the value of the base asset. The base asset is called the underlying asset.
i.e., Sugar prices will rise if sugarcane prices increase due to low production. It means sugarcane is the underlying asset of sugar because the value of sugar is associated with sugarcane.
There is a broad range of underlying assets:
Metals: lead, gold, silver, copper, zinc, nickel, tin, etc.
Energy: coal, natural gas, etc.
Agri commodities: corn, cotton, pulses, wheat, sugar, etc.
Financial assets: Stocks, bonds, forex, etc.
There are two types of derivatives:
1. Exchange-traded: A standardized derivative contract, listed and traded on an organized exchange.
2. Over-the-counter/off-exchange trading/pink sheet trading:
A derivative product in which counterparties buy or sell a contract or product at a negotiated price without exchange
Instruments of derivatives market:
There are four instruments in the derivatives market:
1. Forward:
Forward is a non-standard agreement or agreement between two parties that allows you to buy/sell the asset at the agreed price for a pre-decided date of the contract.
Forwards are negotiated between two pirates, so the terms and conditions of the contract are customized.
These are called over-the-counter(OTC).
2. Future:
Future contracts are similar to forwarding contracts, but the deal is made through an organized and regulated exchange rather than negotiated between two counterparties.
A futures contract is an exchange-traded forward contract.
3. Options:
A derivative contract that gives the right but not the obligation, to buy or sell an underlying asset at a stated strike price on or before a specified date.
Buyers of options- Pays the premium and buys the right
Sellers of options - Receives the premium with the obligation to buy/sell underlying assets.
4. Swap:
A swap is a derivative contract between two counterparties to exchange for the cash flows or liabilities from two different financial instruments.
It is an introduction article. I will cover all these topics in detail.
Swap helps participants manage risk associated with volatility risk interest rate, currency exchange rates, & commodity prices.
Index:
Index = Portfolio of securities
An Index shows how investors experience the economy. Is it progressing or not?
A Stock market index gathers data from a variety of companies of industries. The data forms an overall picture and helps investors compare market performance through past and current prices.
Financial indices represent the price movement of bonds, shares, Treasury Bills, etc.
Importance of Index:
1. An index is an indication of a specific sector or gross market.
2. It helps investors to pick the right stock
3. An index is a statistical indicator. It represents an overall change or part of a change in the economy.
4. In OTC & exchange-traded markets, It used as an underlying asset for derivatives trading
5. An index helps to measure for evaluation of portfolio performance.
6. Portfolio managers use indices as investment benchmarks.
7. Index illustrates investor sentiments.
Types of index:
There are four classifications for indices:
Equal Weighted Index:
Each company is given the same weightage in the composition of this index. Equal-weighted indexes are more diversified than market capitalization-weighted indexes. This index focuses on value investing.
Free-float index:
In finance, equity divides into different among various stakeholders like promoters, institutions, corporates, individuals, etc.
A tradable stake for trading is called a free-float share.
i.g, If XYZ company has issued 5 lakh shares with the face value of Rs 10, but of these, 2 lakh shares are owned by the promoter, then the free-float market capitalization is Rs 30 lakh.
Free-float market capitalization: Free-floating shares * Price of shares
Index: BSE SENSEX
Market capitalization-weighted index:
In this index, each stock is given weightage according to its market capitalization.
High market cap = High weightage
Low market cap = low weightage
Market Cap= Current market price * total number of outstanding shares
i. e, if XYZ company has 1,000,000 outstanding shares and a market price of 55 rs per share will have a market capitalization of 55,000,000.
Index: Nifty 50
Price Weighted Index:
High price = More weightage
Low price = Low weightage
Popular price-weighted index: Dow Jones industrial average & Nikkei 225
I will upload the second part soon.
Show your love with likes and comments.
Thank you :)
Money_Dictators
GBPCAD ____ INCOMING BULLISH RALLYHello Guys,
On this pair, price just traded into a monthly orderblock (see your monthly timeframe) and formed a CHOCH on the daily chart.
If and when price will trade to the daily order block, I will be looking for my trade setup on the 1-hour chart to go long. The target will be the daily FVG that is unmitigated.
Below are correlated pairs for your attention.
Follow for more updates.
AUDCAD ANALYSIS
EURCAD
Cheers,
Jabari
CADSGD ____ INCOMING BULLISH MOVEHello Traders,
We have a situation whereby there are multiple confluences for this bullish move.
To start with, on the monthly chart, we can see that price is retracing while forming an 'M' pattern which will complete at the monthly demand orderblock which is a 'W' pattern. This simply means that we should expect bullish price movement.
On the weekly chart, we have an unmitigated demand zone and the price is approaching this level while creating an 'M' pattern. The expectation is that the price will mitigate this zone and rally.
On the daily timeframe, you will notice there is a demand orderblock that is yet to be mitigated. This orderblock is also in alignment with the equilibrium price level of the weekly demand orderblock.
This pair is on my radar and my alert has been set. Waiting for the price to trade into that zone.
Follow for more updates like this.
Cheers,
Jabari
EURCHF ____ INCOMING BEARISH MOVEHey Guys,
Longtime since I made a post. Been busy with personal stuff. I do hope trading has been profitable for you.
Now, what you will notice on the weekly timeframe is a bearish CHOCH and price on the daily timeframe is approaching the weekly supply orderblock while creating a 'W' pattern.
Once price trades into the supply orderblock, I will be interested to see if my trade setup will form so I can take a short trade.
Keep this pair on your radar.
Follow for more updates like this.
Cheers,
Jabari
EURCAD ____ INCOMING BULLISH MOVEHello Guys,
Like AUDCAD (inserted below), price cleared sell-side liquidity (relatively equal lows). Look left on your daily chart to see it.
After clearing the sell-side liquidity, price formed a CHOCH on the daily chart.
I'd like to see a retracement into the daily order block and wait to see if my trade setup will appear before going long.
Follow for more updates.
AUDCAD ANALYSIS
Cheers,
Jabari
NZDCHF ____ INCOMING BEARISH MOVEHello Guys,
NZDCHF traded into a WEEKLY OB and formed a bearish CHOCH on the daily timeframe. The expectation would be that once price trades into the daily OB (this happened on Friday) price would continue to the downside.
Now that we are price has traded into the daily OB, I would like to see how price unfolds in the 1-hour timeframe. If I see a CHOCH on the 1-hour timeframe, I will go short.
Follow for more updates like this.
Cheers,
Jabari.
Why do the wealthy get wealthier while the poor get poorer?Hello, fellow crypto enthusiasts! I'm CryptoMojo, the name you can trust when it comes to trading views. As the captain of one of the most vibrant and rapidly growing crypto communities, I invite you to join me for the latest updates and expert long and short calls across a wide range of exchanges. I've got your trading needs covered with setups for the short-, mid-, and long-term. Let's dive into the charts together!
I've dedicated my time and effort to crafting this chart, but remember, what you see here is crypto insight, not financial advice. 🚀💰 #CryptoMojo #CryptoTrading
WHY THE
RICH GET RICHER AND THE POOR GET POORER
The adage "the rich get richer and the poor get poorer" serves as a stark reminder of the pervasive issue of economic inequality and the seemingly self-perpetuating cycle of wealth accumulation. This phenomenon is underpinned by a web of interrelated factors that fuel this divergence.
Income Inequality forms the bedrock of this inequality, as the widening chasm between high and low-income earners creates a yawning chasm. Those with substantial incomes find themselves flush with resources, ripe for investment and further wealth multiplication, while those with more modest earnings struggle to meet their basic needs.
The labyrinth of Access to Opportunities further exacerbates this divide. The affluent enjoy privileged access to quality education, lucrative career prospects, and influential networks, propelling them towards the upper echelons of financial success. Meanwhile, disadvantaged individuals often face insurmountable barriers, hampering their quest for prosperity.
Asset Ownership significantly tips the scales in favor of the wealthy. These individuals are more inclined to possess assets such as stocks, real estate, and thriving businesses, which appreciate over time and generate passive income streams. Such opportunities rarely beckon to those with limited resources.
Financial Education bestows an invaluable advantage upon the affluent. They wield superior financial literacy and access to expert guidance, making informed decisions about investments and wealth management. Conversely, the financially underserved may stumble due to a lack of knowledge, leading to suboptimal financial choices.
The entwining of Taxation and Policies can skew wealth distribution. Favorable tax regulations may augment the wealth of the affluent through loopholes and exemptions, while the impoverished find meager support from social safety nets, perpetuating their struggle.
The relentless ebb and flow of Economic Cycles wields disproportionate influence. Downturns hit the disadvantaged the hardest, causing job loss and asset depreciation, while the affluent can weather the storm and even seize investment opportunities amidst the turmoil.
Inheritance perpetuates this divide, with wealthy families bequeathing assets, businesses, and influential connections to their progeny, securing their legacy and perpetuating the cycle of wealth.
Differential access to Credit compounds the problem, as the wealthy can secure loans at preferential rates, empowering them to invest in income-generating endeavors. In contrast, the financially marginalized often face barriers to accessing affordable credit.
The ethereal realm of Psychological Factors also plays a pivotal role. A "rich mindset," characterized by financial acumen, calculated risk-taking, and a forward-looking perspective, begets more avenues for wealth creation.
Systemic and Structural Factors weave a complex tapestry, with issues like systemic racism, discrimination, and entrenched socioeconomic barriers disproportionately affecting marginalized communities, further entrenching the cycle of poverty.
These multifaceted dynamics underscore the depth of the challenge. Addressing wealth inequality demands a comprehensive approach encompassing policy reforms, equitable access to education and resources, bolstered financial literacy, and a fervent commitment to dismantling systemic injustices. The ultimate goal is a society where every individual is afforded equal opportunities to enhance their financial well-being and quality of life.
This chart is just for information
Never stop learning
I would also love to know your charts and views in the comment section.
Thank you
EXPLAINED BASIC CONCEPTS OF TRADE📊📈 Unleash Your Trading Potential with These Proven Strategies! 🚀
Hello, Aspiring Traders!
Are you ready to embark on the exciting path to trading success? Trading isn't just about making profits; it's a disciplined business, an art form, and a psychological challenge. The keys to success are deceptively simple but often overlooked.
✨ Trading is NOT Gambling!
Bid farewell to unrealistic expectations and the notion that trading is akin to rolling the dice. To steer your journey in the right direction, follow these steps:
🚀 Set and Maintain Risk-Reward Ratios.
Never risk more than 1% of your deposit on a single trade. Ensure control over your risk exposure by using variable lot sizes, regardless of market conditions.
🚀 Steer Clear of the "All-In" Approach.
Resist the urge to place your entire account balance on a single trade in the hopes of recouping losses. Trading is about learning, not desperation.
🚀 Safeguard Your Capital with Stop Loss Orders.
Utilize Stop Loss (SL) orders consistently. Avoid relying on manual closures, as emotions can lead to costly decisions.
🚀 Establish Daily and Weekly Loss Limits.
Set sensible limits. If you encounter three consecutive losses in a day, take a break. If your losses exceed 10% of your account within a week, step back for the following week. This break is crucial for your growth as a trader.
✨ Maintain a Calm and Collected Demeanor
Successful traders exhibit a unique blend of discipline akin to a robot and the intuitive faculties of a human. Remember, entering the market too early or too late is just as detrimental as being wrong. Maintain your composure:
🧘 Keep Emotions in Check.
Euphoria and panic are your adversaries. Emotions belong in the casino, not in trading.
🧘 Steer Clear of FOMO (Fear of Missing Out).
Don't trade out of fear or impatience. Premature entries driven by FOMO can lead to losses.
🧘 Forge Your Own Path.
Resist the temptation of herd mentality. Successful traders are independent thinkers.
🧘 Cultivate a Diverse Watchlist.
Focus on instruments with setups you understand work. Avoid inventing trades that don't align with your strategy.
✨ Consistency is the Key to Triumph
Steady gains are far superior to volatile boom-bust performances. Here's your roadmap to consistency:
📊 Discover Your Trading Strategy.
Thoroughly research and select a trading strategy that aligns with your personality and comprehension.
📊 Employ Paper Trading and Backtesting.
Test your strategy in real-time and refine it through paper trading and the analysis of historical data.
📊 Monitor Your Trades.
Maintain meticulous records to pinpoint your strengths, weaknesses, and recurring patterns in your trading.
📊 Codify Your Rules.
Establish a precise algorithm for your trading strategy to minimize emotional decision-making.
🚀 In Conclusion: Embrace the Journey!
Trading is a long-term endeavor, not a shortcut to wealth. Along the way, you'll face challenges, losses, and setbacks, but when you succeed, you'll unlock the path to financial freedom!
🙌 Show your support for these strategies with a LIKE and share your thoughts in the COMMENTS! Let's navigate the world of trading and reach success together! 🌟
NZDCAD ____ INCOMING BEARISH MOVEHello Guys,
Price has traded into the weekly orderblock and my speculation is a reaction from this order block. Note that price traded into this zone whilst forming a W pattern on the weekly chart.
Also, Price has swept the inducement on its way to the weekly order block.
See my profile for more updates.
Below are correlated pairs.
AUDCAD
EURCAD
GBPCAD
Cheers,
Jabari
EURGBP _____ INCOMING QUICK SHORT TRADEHello Guys,
How has the week been so far... Well for me, kinda bumpy but it's part of the game so I'm good.
Anyways, here we have a pair that just swept a monthly high (buy-side liquidity) and price formed a CHOCH on the daily timeframe, hence, the daily supply order.
I have set an alert for when the price will trade into the daily order block. Once that happens, I will drop down to the 1-hour timeframe to see if I will get my trade setup to go short.
Follow for more updates like this.
Cheers,
Jabari
Exploring GBPCAD's Current Markdown PhaseTraders, pay close attention! The GBPCAD pair is currently showing clear signs of entering the markdown phase within a distribution pattern. 🇬🇧🇨🇦
In the context of the Wyckoff distribution, the markdown phase is a crucial stage where the price undergoes a controlled decline after prolonged accumulation. This phase often signifies a shift in market sentiment from bullish to bearish.
Observing the GBPCAD chart, you'll notice a gradual downtrend in prices with intermittent consolidations. This price action suggests that smart money, which accumulated positions during the accumulation phase, is now distributing their holdings.
Key indicators, such as decreasing trading volumes and consistent lower highs, align with this markdown narrative. Traders should be cautious of potential breakdowns below key support levels as they can accelerate the markdown process.
It's essential to stay vigilant during this phase. Smart traders may consider shorting opportunities, while others might tighten stop-loss orders on existing long positions. Remember, successful trading is about adaptability and reading the market's language.
Stay tuned for further insights and updates on GBPCAD as we navigate this intriguing markdown phase. 🚀📉 #TradingAnalysis #GBPCAD #MarkdownPhase #MarketInsights