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Liquidation Begins With a Thought, Not a CandleHave you ever found yourself opening a trade you knew you shouldn’t? That whisper in your head saying, “This setup looks different…” only for you to get stopped out or liquidated hours later? It probably wasn’t your strategy that failed — it was your brain. Hello✌ Spend 3 minutes ⏰ reading this educational material. The main points are summarized in 5 clear lines at the end 🎯 Analytical Insight on XRP: A Personal Perspective: XRP is approaching a key daily resistance confluence with a descending trendline, after breaking out of its recent bearish channel and reclaiming prior structure levels 📈. I anticipate a gradual upside continuation with a minimum projected move of +14%, targeting the $2.85 zone. Two major daily supports — aligned with Fibonacci retracements — have also been identified as key demand zones for potential retests 🔍. 🧠 How Your Brain Leads You to Liquidation A Psychological Trap Every Trader Must Know Let’s explore how your mind tricks you into losses and which TradingView tools can help you stay focused and objective in the heat of the market. 🛠️ How to Protect Yourself (And Your Capital) ✅ Use multi-timeframe analysis: Sometimes a bullish move on the 15-min chart is just a retest on the 4H. TradingView makes it easy to monitor several timeframes side-by-side. ✅ Set alerts instead of staring at charts: Let TradingView notify you when your trade setup actually appears. Reduce emotional overtrading. ✅ Trust neutral tools like EMA, VWAP, or Volume Profile: They offer structure and objectivity — less prone to emotional interpretation. ✅ Keep a trading journal: Use the idea publishing feature or private notes to reflect on why you entered a trade. Most mistakes repeat when they’re not reviewed. 🔍 Cognitive Biases in Action Your brain is wired for survival, not profits. It reacts emotionally — especially under pressure. One of the most common psychological traps in trading is confirmation bias: You form an opinion first, then only look for information that supports it. It’s like spotting a resistance level on BTC but ignoring bearish signals because you want the price to break out. You're not analyzing anymore — you're convincing yourself. 😨 FOMO: The Invisible Hand That Pushes Bad Trades Bitcoin rallied from $93.4K to $102K in early January 2025. The crowd on social media went wild: “ATH is coming!” was everywhere. But on the chart? RSI was overbought, MACD flashed a bearish divergence. Still, traders entered blindly — emotionally. Days later, BTC encounter with more loss. This wasn’t technical failure. It was pure psychological FOMO. 🧘‍♂️ Train Your Mind Before You Train the Market The charts don’t lie — but your interpretation of them might. That’s why the best traders don’t just study the market, they study themselves. Master your mindset, and the market won’t master you. However , this analysis should be seen as a personal viewpoint, not as financial advice ⚠️. The crypto market carries high risks 📉, so always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅. 🧨 Our team's main opinion is: 🧨 XRP has broken out of its downward channel and is now approaching key resistance; I’m eyeing a steady move toward the $2.85 target with at least +14% potential upside 📊. Trading mistakes often come from our own minds, not the market. Emotional biases like confirmation bias and FOMO can trick you into bad trades—just like BTC’s in early January 2025 jump that fooled many 📉. To protect your capital, use TradingView’s multi-timeframe analysis, alerts, and objective tools like EMA or VWAP. Remember, mastering your mindset is as crucial as reading the charts. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
14
Tutorial On FOMC Support and ResistanceUsing the 8-hour chart on the Wednesday of an FOMC release, I use a purple line on the 10am EST 8-hour candle's open as the FOMC release price point. I then use a purple highlighter to signal the date of the release. I have come to the conclusion that the Dow Jones Futures moves and finds support/resistance using the FOMC releases. Nothing else on the chart matters BUT each release. There are only 2 ways these levels are used. 1. Support and Resistance levels 2. Mean Reversion levels I have not found a single source on the ENTIRE internet that describes this phenomenon and would like to think I am quite lucky for stumbling upon this observation. Below are examples of how/what to look for when using these levels. Step 1: On the 8 hour chart, mark the 10am EST opening price of that candle with a purple line and highlight Step 2: Project it across and see how price reacts. It will either mean revert or bounce from it It is hilariously funny to me that price stopped dead within a measly 84 ticks away from the DEC 2023 FOMC level before bouncing. Support and Resistance: Mean Reversion: Price mean reverting around the 10am opening price of FOMC Wednesday.
CBOT_MINI:YM1!Education
by Dow_Jones_Maestro
2
KISS Trading SystemOverview : Trading process should be as simple as possible. One of the simple method to trade is primarily identify direction, find a good location to entry, wait for confirmation in the location, and finally execute the trade when the risk reward ratio is good. 1. Direction To identify direction, follow the market structure. Higher high and higher low indicates price is in a bullish trend (uptrend), while lower high and lower low indicates the price is in a bearish trend (downtrend). If there is no clear structure higher high and higher low or lower and high lower low, price is in sideways mode. Best is to avoid trade under this condition until clear trend is formed. 2. Location Every time price create a new breakout structure, mark the the structure as our potential location for entry. There are some occasion where price does not pullback to the location and continuing the trend by creating a new breakout structure. Do not FOMO, just wait for the next location and confirmation within the location to entry and minimize your risk. 3. Confirmation Patience is the key. Wait for price to pullback at higher time frame location, and focus for confirmation in lower time frame to entry and reduce risk. Time is fractal, the structure pattern is same on all timeframes. Choosing the right timeframe pair is crucial. Refer to table in the notes below for timeframe pairing. 4. Risk Reward This is the main essence in trading, controlling risk and preserving capital. Entry without doubt when the risk reward are good. Execute, and trust your setup.
CME_MINI:NQ1!Education
by Gann-7
2
the markets are a very emotional cry babyIf you've ever asked, “Why is the market going up on bad news?” or “Why did it dump after great earnings?”, you're not alone. Markets may seem logical—economic data in, price action out—but in reality, they’re driven by human emotion, crowd psychology, and reflexive feedback loops. The charts don’t lie, but the reasons behind the moves? Often irrational. Let’s break down why markets are emotional—and how traders can use that to their advantage. 🧠 1. Markets Are Made of People (and People Aren’t Rational) Even in the age of algorithms, human behaviour sets the tone. Fear, greed, FOMO, panic—all of it shows up on charts. Fear leads to irrational selling Greed fuels bubbles and euphoria Uncertainty causes volatility spikes—even with no new information 📉 Example: The 2020 COVID crash saw massive capitulation. Then came one of the fastest bull markets ever—driven by stimulus and FOMO. another example 📊 S&P 500 in 2020 with VIX, the S&P 500 crashed and the VIX went up, When the VIX (CBOE Volatility Index) goes up, it means that traders/investors expect a greater likelihood of price fluctuations in the S&P 500 over the next 30 days. This generally indicates increased fear as shown on the chart below 📈 2. Price Doesn’t Reflect Facts—It Reflects Belief The market is not a thermometer. It’s a barometer of expectations. When traders believe something will happen—whether true or not—price adjusts. If the Fed is expected to cut rates, assets may rally before it actually happens. 💡 Nerd Tip: Reality matters less than consensus expectations. Chart Idea to visit: 💬 USD Index vs. Fed rate expectations (2Y yield or futures pricing) 🪞 3. Reflexivity: Belief Becomes Reality Coined by George Soros, reflexivity explains how beliefs can influence the system itself. Traders bid up assets, creating bullish momentum That momentum attracts more buyers, reinforcing the trend Eventually, fundamentals “catch up” (or the bubble bursts) 📌 Insight: The market creates its own logic—until it doesn’t. 😬 4. Emotional Extremes Create Opportunity When markets overreact, they offer setups for rational traders. Capitulation = Bottom Fishing Euphoria = Caution Disbelief = Strongest rallies 🧠 Pro Tip: Watch sentiment indicators, not just price. Fear & Greed Index, put/call ratios, or COT data reveal what the crowd is feeling. Chart Example: 📊 Bitcoin 2022 bottom vs. Fear & Greed Index.. on the chart above the index score close to zero (RED) indicating extreme fear this was because in november 2022 crypto cybercrimes grew new level and investors lost confidence, these cyber crimes included the bankruptcy of FTX as the owners were allegedly misusing customer funds. 💡 5. How to Trade Rationally in an Irrational Market a. Have a plan. Pre-define entries, exits, and invalidation levels. b. Expect overreaction. Markets often go further than they “should.” c. Use sentiment tools. Divergences between price and emotion are gold. d. Don’t fight the crowd—until it peaks. Fade extremes, not momentum. e. Zoom out. 5-minute panic means nothing on a weekly trendline. 🎯Nerd Takeaway: Markets aren’t efficient—they’re emotional. But that emotion creates mispricing, and mispricing = opportunity. You don’t need to predict emotion—you just need to recognize it, and trade on the reversion to reason. 💬 Have you ever traded against the crowd and nailed it? Or got caught up in the hype? Drop your chart and your story—let’s learn from each other. put together by : @currencynerd as Pako Phutietsile
BINANCE:BTCUSDEducation
by currencynerd
2
The Secret Behind Bitcoin’s Sudden Nighttime PumpsHow does Bitcoin suddenly make wild jumps at night? Whales are playing behind the scenes while amateur traders keep falling into traps! In this analysis, you’ll learn how to spot these mysterious pumps and actually profit from them. Hello✌ Spend 3 minutes ⏰ reading this educational material. The main points are summarized in 3 clear lines at the end 🎯 Analytical Insight on BNB: A Personal Perspective: BNB has broken out of its multi-day descending channel to the upside 📈, yet the move lacks strong momentum and decisive follow-through. Historically, Binance Coin tends to trend with measured, deliberate price action rather than sharp rallies. A potential retest of the channel breakout zone remains possible, with a medium-term target set at $710 — representing a projected 9% move, assuming price holds above key support 🛡️. Now , let's dive into the educational section , 1. Nighttime Pumps: Whale Games or Just Luck? 🐋🎲 Sudden Bitcoin pumps during low-volume hours, especially at night, usually come from big whale moves or a cluster of smaller whales acting together. When market volume is low, even a small order can move the price drastically. These engineered moves often aim to trick retail traders and create fake hype. 2. What Do On-Chain Data Say? 📊🔍 By checking on-chain data like transaction volumes, active addresses, and coin movements in big wallets, we can tell if a pump is real and sustainable or just a temporary shock. For example, a rise in exchange inflows alongside a pump could signal a potential mass sell-off after a rapid price jump. 3. Market Psychology at Night 🧠🌙 Night hours usually see reduced trading volume, which increases volatility and risk. Less experienced traders often get emotional and jump in quickly due to FOMO (Fear Of Missing Out). Learn how to control your emotions and wait patiently for confirmed signals like a pro. 4. Key Indicators & Advanced TradingView Tools to Spot Night Pumps 📈🛠️ To catch Bitcoin’s sudden night pumps, rely on key indicators like RSI, MACD, volume, and Bollinger Bands. For instance, a sudden volume spike with RSI in the overbought zone can warn you a pump is ending. Additionally, TradingView’s innovative tools like Volume Profile and Order Flow let you see whale buying/selling pressure and identify critical support/resistance levels. These tools reveal the real market structure during volatile night moves, helping you make sharper, lower-risk decisions. Don’t forget multi-timeframe analysis to avoid false signals and understand pumps within bigger trends. 5. Strategies for Trading Night Pumps ⚔️⏳ One of the best ways is setting tight stop-loss orders and scalping during these moves. Using price action analysis and following whale behavior from analyst insights can guide you to smarter entries and exits. 6. Risks and Important Tips ⚠️💡 Always remember, sudden pumps carry high risk and can lead to liquidation. Trading during low-volume hours isn’t recommended for beginners. Stay aware of market volatility and emotional impulses. 7. Summary 📝✅ Nighttime Bitcoin pumps can be great profit opportunities but only if you enter with knowledge and a plan. By understanding on-chain data, market psychology, and key indicators, you’ll make smarter decisions and benefit from these mysterious moves. However , this analysis should be seen as a personal viewpoint, not as financial advice ⚠️. The crypto market carries high risks 📉, so always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
3 Consistent Winner Beliefs. Do you check off all 3?> Every trader comes to the charts with a story. Mine is one of obsession, resilience, and belief. This is what I tell myself every single day before I take a trade — my inner code. 1. Money can be made in markets I’ve seen the charts. I’ve seen the proof. Every day, money moves — and the ones with eyes to see take their slice. Markets aren’t random. They aren’t chaos. They’re an ocean of opportunity. The consistent winners? They’re locked in the present and spot opportunity moment by moment — then strike when it’s worthwhile. 2. I can make money in markets Not someone else. Me. I study. I adapt. I execute. I’m not here to gamble or guess. I’m here to observe human behavior and act with precision. I’ve trained my mind to see what others miss. And that edge? It’s mine. > “It’s so incredible how rich one can become without being perfect.” 3. I deserve to make money in markets This one’s the hardest — and the most powerful. Because without it, we self-sabotage. I’ve put in the work. I’ve sacrificed. I’ve endured losses, frustration, and silence. But I never stopped. So when profit comes, it’s not luck — it’s alignment with who I’ve become. > I post this not just as motivation — but as a mirror for others walking the same path. If you’re obsessed with mastering yourself through the charts, then we’re already on the same team. A belief is any thought you get attached to. The more you attach, the more you become it.
IG:NASDAQEducation
by theeOperator90
1
Understanding Williams %R In TradingThe Williams %R is a fast, sensitive momentum oscillator ideal for short-term trading strategies. It provides early signals of overbought and oversold conditions by comparing the current close to the high-low range over a defined lookback period (typically 14 bars). By understanding where Williams %R fits among other oscillators, traders can better utilize it within a well-rounded, context-aware strategy. ✅ 1. What Are Momentum Indicators? Momentum indicators are technical analysis tools used to measure the speed and strength of a price movement over time. Rather than focusing on absolute price direction, momentum indicators assess how quickly prices are changing and help traders identify potential turning points, continuation patterns, or overbought/oversold conditions. They are particularly useful in sideways or ranging markets, where momentum shifts often precede breakouts or reversals. Key characteristics of momentum indicators: Often bounded within fixed ranges (e.g., 0–100 or -100 to 0) Typically leading indicators, aiming to provide early entry/exit signals Help spot divergence between price and momentum — a common sign of weakening trends ✅ 2. Understanding the Williams %R Indicator ≫ The Origin: Developed by Larry Williams The Williams %R indicator was developed by Larry Williams, a renowned trader and author, in the late 1970s. Williams introduced this tool to identify potential market turning points by measuring a security’s momentum relative to its recent high-low range. Originally intended for short-term futures trading, the indicator has since become a staple for both day traders and swing traders across various markets, including stocks, forex, and crypto. Larry Williams famously used this indicator in his trading system when he won the 1987 World Cup Trading Championship, turning $10,000 into over $1 million in a single year—demonstrating its real-world impact when used effectively. ≫ Formula Breakdown The Williams %R formula is as follows: Williams %R= = (HighestHigh − Close) / (HighestHigh - LowerLow) × −100 Highest High = The highest price over the lookback period (typically 14 periods) Lowest Low = The lowest price over the same lookback period Close = The current closing price This formula normalizes the current price within its recent trading range and expresses it as a negative percentage between 0 and -100. Example: If price is at the highest point in the range → %R = 0 (overbought) If price is at the lowest point in the range → %R = -100 (oversold) This inverted scale (compared to RSI) helps traders see how close the current price is to the top or bottom of the recent range, providing clues about potential reversal zones. Williams %R in Pinescript: //@version=5 indicator("Custom Williams %R", overlay=false) length = input.int(14, title="Period") highestHigh = ta.highest(high, length) lowestLow = ta.lowest(low, length) williamsR = (highestHigh - close) / (highestHigh - lowestLow) \* -100 plot(williamsR, title="%R", color=color.purple) hline(-20, "Overbought", color=color.red) hline(-80, "Oversold", color=color.green) ≫ Key Settings: 14-Period Default and Customizations The default setting for Williams %R is 14 periods, which Larry Williams originally recommended. However, this lookback period can be customized based on your trading style and timeframe. Here’s how different settings can be applied: ❖ Intraday Trading (5-minute to 15-minute charts): Use a 9 to 14-period setting for faster, more responsive signals. Ideal for scalpers or short-term traders seeking quick entries and exits. ❖ Swing Trading (1-hour to Daily charts): Stick with the standard 14 to 21-period range. Balances sensitivity and reliability; helps capture short- to mid-term reversals. ❖ Position/Long-Term Trading (Weekly charts or higher): Use 21-period or longer to smooth out signals and reduce noise. Best for spotting high-conviction turning points with less frequent trades. 🔁 Customization Tip: You can also use multiple %R settings (e.g., 14 and 50) together to analyze short-term momentum inside longer-term trend cycles, adding depth and context to your strategy. ≫ Interpretation: Overbought and Oversold Conditions The Williams %R scale ranges from 0 to -100 and is interpreted as follows: ❖ Overbought: %R above -20 Indicates that price is near the top of its recent range Suggests potential for a pullback or reversal downward ❖ Oversold: %R below -80 Indicates price is near the bottom of its recent range Suggests potential for a bounce or reversal upward ⚠️ Important: Overbought does not mean “time to sell” and oversold does not mean “time to buy.” These are conditions, not signals. Use them with confirmation tools like support/resistance zones, candlestick patterns, volume analysis, divergences and more. ✅ 3. Using Williams %R Effectively ≫ Entry Signals Williams %R can be used to time entries based on shifts in momentum, especially around key overbought and oversold zones. ❖ Overbought/Oversold Reversals This is the most common use of Williams %R - identifying turning points when price reaches extreme levels in its recent range: Overbought Zone (above -20): Signals potential bearish reversal Look for confluence with resistance levels or bearish candlestick patterns Confirmation often comes as %R drops back below -20 Oversold Zone (below -80): Indicates a possible bullish reversal Stronger when aligned with support or demand zones Confirmation often comes when %R climbs back above -80 ⚠️ Note: These are signals of potential exhaustion, not guaranteed reversals. Always pair with price action context or volume. ❖ Pullback Continuations Williams %R can also support trend-following strategies by identifying momentum retracements within an ongoing trend: In an uptrend, wait for Williams %R to dip below -80 (short-term oversold) and then re-enter above -80 as the trend resumes In a downtrend, look for a rally where %R rises above -20 (short-term overbought), then re-enters below -20 to confirm trend continuation This technique helps you buy the dip or sell the rally with better timing and risk control. ≫ Exit Signals Williams %R can also guide exit timing by showing when momentum is weakening, especially as price moves away from extremes. ❖ Returning to Neutral Zones When Williams %R moves back toward the -50 midpoint, it can signal that the current move is losing steam. In a long position, if %R returns from oversold to above -50 but then flattens or dips again, it may be time to take profit In a short position, if %R rises from overbought back below -50, it suggests selling pressure is decreasing Exiting before full reversals can help you lock in gains while reducing risk exposure. ❖ Crossovers at Extremes Some traders look for quick crossovers back through key thresholds (-80 and -20) as exit or reversal alerts: If %R drops from above -20 back below it, the overbought condition may be ending If %R rises from below -80 back above it, the oversold condition may be ending These sharp shifts often precede momentum flips, making them useful for both exit timing and new trade setups in the opposite direction. ❖ False Signal Filtering Techniques Williams %R can produce false signals, especially in trending or volatile markets. To improve signal quality, consider these filters: Use with Trend Filters: Apply moving averages (e.g., 50- or 200-period MA) to define trend direction and avoid counter-trend trades Only trade overbought signals in a downtrend and oversold signals in an uptrend Add Price Action Confirmation: Look for candlestick patterns (e.g., engulfing, pin bars) or support/resistance reactions before acting on %R signals Volume Analysis: Confirm signals with volume spikes or divergences to validate strength or weakness in a move Multiple Timeframe Confluence: Use Williams %R on a higher timeframe (e.g., 4H or daily) to establish the broader context, then align trades on a lower timeframe Avoid during High Volatility Events: News releases and earnings reports can create erratic spikes that cause misleading %R readings ❖ Best Market Conditions: Ranging vs Trending Markets Williams %R performs best under specific market conditions. Understanding when to use it—and when to avoid it—is key to success. Ranging Markets: Ideal Conditions Williams %R excels in sideways or consolidating markets In ranges, price frequently oscillates between support and resistance, making overbought/oversold signals highly effective Reversals from the -20 or -80 zones often align with the top and bottom of a trading range Trending Markets: Use With Caution During strong trends, Williams %R can stay in the overbought or oversold zone for extended periods This makes reversal signals less reliable and more prone to false exits In trending conditions, it’s better to: Use Williams %R for pullback entries Combine it with a trend filter to stay on the dominant side of momentum ✅ 4. Optimizing the Period Setting (5, 9, 14, 21, etc.) The length of the lookback period in Williams %R significantly affects signal behavior: Shorter periods (5, 9): Produce faster, more frequent signals Best for scalping and intraday trading More sensitive but can result in higher noise and false signals Default period (14): Balanced responsiveness Suitable for swing trading and multi-hour charting Longer periods (21+): Generate fewer but more stable signals Best for position trading or slower-moving markets Reduced noise but may lag in volatile conditions 🔍 To optimize: Test various period values under consistent rules (e.g., entry/exit and risk management stay the same) Compare outcomes across different market environments (trending, ranging, volatile) ✅ 4. Key Takeaways Williams %R is a momentum oscillator that measures the close relative to the recent high-low range on a scale from 0 to -100. It was developed by Larry Williams to help identify short-term overbought and oversold market conditions. A reading above -20 suggests overbought conditions, while a reading below -80 indicates oversold conditions. The default 14-period setting balances signal responsiveness and stability for most traders. Shorter periods generate faster signals with more noise, while longer periods produce smoother signals with more lag. Williams %R works best in ranging or sideways markets rather than strongly trending environments. Traders can use %R for reversal signals or to confirm pullbacks within a broader trend. Filtering signals with price action, support/resistance, or volume improves accuracy. The indicator is not meant to be used in isolation and requires confirmation before acting on signals. Backtesting across different timeframes and period settings is essential for identifying optimal usage. Performance metrics such as win rate, R:R ratio, and drawdown help evaluate the indicator’s reliability. Williams %R is easy to code and automate in platforms like TradingView using Pine Script. The indicator adds value when used as part of a broader, disciplined trading system. Williams %R is a simple yet deeply insightful momentum oscillator. While often overlooked in favor of more complex indicators, it provides a unique lens into market sentiment and price extremes. Its greatest strength lies in its clarity — helping traders time entries and exits with greater confidence when paired with context.
Education
by CandelaCharts
The CBBI, identify the timing the end of the Bull Run cryptosIntroduction: The bitcoin price is a highly cyclical market structured around the halving event that takes place every 4 years. BTC's last halving took place in April 2024, and it is around this event that our current cycle is structured, which should end at the end of 2025 if and only if the cycle repetition still applies (Bitcoin's famous 4-year cycle). To find a more precise time frame for the end of the current crypto bull run, there are a number of indicators, some of which are based on Bitcoin blockchain data. This is particularly true of the CBBI Index, which we'll be presenting in this new TradingView analysis. Don't hesitate to subscribe to our TradingView account to follow all our daily analyses on cryptos and financial markets in general. 1) Definition of the CBBI Index (Colin Crypto Bitcoin Bull Run Index) The CBBI Index, an acronym for Colin Talks Crypto Bitcoin Bull Run Index, is an indicator developed by Colin Talks Crypto, a well-known analyst and popularizer in the crypto-currency community, notably on YouTube. Its aim is to give a global reading of the Bitcoin market's position in its cycle, by combining several technical and on-chain indicators. The CBBI synthesizes all these indicators and calculates a final score. It is the value of this score that tells us whether the Bitcoin price is close to the beginning of its bullish cycle or close to the end of its bullish cycle. Rather than relying on a single volatile indicator, CBBI compiles nine major metrics such as MVRV Ratio, RHODL Ratio, NUPL and Reserve Risk. The result is expressed in the form of a score from 0 to 100: A score close to 100 suggests that the market is overheating, that the final peak of the cycle is in sight, and that there is therefore a risk of a downward reversal. Conversely, a low score (close to 0) indicates a probable end to the bear market, and an increased likelihood of the cycle reversing upwards. Looking at the chart of the CBBI Index (the green curve on the graph below) overlaid with the bitcoin price, we can see that the CBBI Index has been highly relevant in identifying the beginnings and ends of bullish cycles for BTC. 2) The current CBBI Index score suggests that the crypto bull run is not yet over The current CBBI Index score is below 80 and is still a long way from the bull run end identification zone. Naturally, no single indicator is relevant on its own, so we'll need to combine the CBBI Index with other indicators influencing the crypto market, in particular the underlying trend in global liquidity and the theoretical price targets from the graphical analysis of bitcoin's long-term price charts. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions. 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Swissquote is the marketing brand for the activities of Swissquote Bank Ltd (Switzerland) regulated by FINMA, Swissquote Capital Markets Limited regulated by CySEC (Cyprus), Swissquote Bank Europe SA (Luxembourg) regulated by the CSSF, Swissquote Ltd (UK) regulated by the FCA, Swissquote Financial Services (Malta) Ltd regulated by the Malta Financial Services Authority, Swissquote MEA Ltd. (UAE) regulated by the Dubai Financial Services Authority, Swissquote Pte Ltd (Singapore) regulated by the Monetary Authority of Singapore, Swissquote Asia Limited (Hong Kong) licensed by the Hong Kong Securities and Futures Commission (SFC) and Swissquote South Africa (Pty) Ltd supervised by the FSCA. Products and services of Swissquote are only intended for those permitted to receive them under local law. All investments carry a degree of risk. The risk of loss in trading or holding financial instruments can be substantial. The value of financial instruments, including but not limited to stocks, bonds, cryptocurrencies, and other assets, can fluctuate both upwards and downwards. There is a significant risk of financial loss when buying, selling, holding, staking, or investing in these instruments. SQBE makes no recommendations regarding any specific investment, transaction, or the use of any particular investment strategy. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts suffer capital losses when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Digital Assets are unregulated in most countries and consumer protection rules may not apply. As highly volatile speculative investments, Digital Assets are not suitable for investors without a high-risk tolerance. Make sure you understand each Digital Asset before you trade. Cryptocurrencies are not considered legal tender in some jurisdictions and are subject to regulatory uncertainties. The use of Internet-based systems can involve high risks, including, but not limited to, fraud, cyber-attacks, network and communication failures, as well as identity theft and phishing attacks related to crypto-assets.
BITSTAMP:BTCUSDEducation
by Swissquote
How to Use Drawing Tools on TradingViewThis tutorial video discusses why and how traders use different types of trading tools, how to access the trading tools in Tradingview, and a few examples of how and why you might apply them. Learn more about using Tradingview to trade futures with Optimus Futures: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary.
CME_MINI:ES1!Education
by OptimusFutures
Understanding How Cryptocurrency Prices Are FormedHello, Traders! 👋🏻 The estimated value of cryptocurrencies is a multifaceted process influenced by various dynamic factors. Unlike traditional assets, crypto prices are determined through a combination of market mechanisms, technological attributes, and investor behaviors. This article delves into the core elements that shape cryptocurrency prices, offering a detailed perspective on their formation. 1. Supply and Demand Dynamics At the heart of any market lies the principle of supply and demand, and the cryptocurrency market is no exception. The price of a crypto asset is significantly influenced by the balance between its availability and investors' desire to acquire it. Limited Supply: Many cryptocurrencies like Bitcoin (BTC) have a capped supply. Bitcoin, for instance, has a maximum supply of 21 million coins. This scarcity can lead to increased demand, especially during periods of heightened investor interest, thereby driving up the price. Demand Fluctuations: Demand for a cryptocurrency can be influenced by various factors, including technological developments, media coverage, and macroeconomic trends. An increase in demand, with a constant or limited supply, typically results in higher crypto prices. 2. Market Sentiment and Speculation Investor sentiment plays a central role in the cryptocurrency market. The collective mood of investors, often swayed by news events, social media trends, and broader economic indicators, can lead to significant price fluctuations. Positive Sentiment: Announcements of technological advancements, regulatory approvals, or endorsements by influential figures can boost investor confidence, leading to increased buying activity and higher cryptocurrency prices. Negative Sentiment: Conversely, news of security breaches, regulatory crackdowns, or macroeconomic uncertainties can result in fear and panic selling, causing prices to decline. Speculative trading, driven by the anticipation of future price movements rather than intrinsic value, further amplifies these effects, contributing to the volatility observed in crypto prices. 3. Liquidity and Trading Volume Liquidity refers to the ease with which an asset can be bought or sold in the market without affecting its price. High liquidity indicates a robust market with ample trading activity, while low liquidity can lead to significant price swings. High Liquidity: Cryptocurrencies with high trading volumes and widespread adoption tend to have more stable prices, as large transactions can be executed without drastically impacting the market. Low Liquidity: Lesser-known or newly launched cryptocurrencies may experience sharp price movements due to limited trading activity, making them more susceptible to manipulation and volatility. 4. Technological Developments and Network Utility The underlying technology and utility of a cryptocurrency significantly influence its value. Factors such as network scalability, transaction speed, and real-world applications can influence investor perception and demand. Network Upgrade: For example, the implementation of the Pectra Upgrade (ETH) (May 2025) is the most significant overhaul since the Merge (March 2024). It encompasses 11 Ethereum Improvement Proposals (EIPs) focused on improving transaction speed, reducing costs, and enhancing wallet usability. These continuous technological advancements improve Ethereum's functionality and play a crucial role in shaping investor perception and demand, thereby influencing crypto coin prices. Use Cases: Cryptocurrencies that offer practical applications, such as smart contracts, decentralized finance (DeFi), or non-fungible tokens (NFTs), may attract more users and investors, positively impacting their prices. Ethereum (ETH), for instance, has established itself as a foundational platform for smart contracts, enabling a wide array of decentralized applications (dApps) across various sectors. The recent Dencun and Pectra upgrades have further enhanced this utility, improving scalability and user experience. In decentralized finance (DeFi), platforms like Uniswap (UNI) and Aave (AAVE), built on Ethereum, facilitate peer-to-peer trading and lending, offering users alternatives to traditional financial systems. These practical applications demonstrate the versatility of cryptocurrencies and play a crucial role in shaping investor perception and, consequently, market prices. 5. Regulatory Environment Regulatory developments across different jurisdictions can profoundly affect cryptocurrency markets. Policies that promote innovation and provide clear guidelines can foster growth, while restrictive regulations may hinder market expansion. Favorable Regulations: Clear and supportive regulatory frameworks can attract institutional investors and enhance market credibility, contributing to increased demand and higher cryptocurrency prices. Restrictive Measures: Conversely, bans on cryptocurrency trading or stringent compliance requirements can deter participation, reducing liquidity and declining prices. In 2025, regulatory landscapes for cryptocurrencies are undergoing major transformations globally. In the United States, the Securities and Exchange Commission (SEC) is working to establish clear guidelines for crypto tokens, aiming to provide a rational framework that promotes lawful issuance, custody, and trading of crypto assets while deterring misconduct. Concurrently, President Trump's administration has taken a proactive stance by signing Executive Order 14178, which prohibits the establishment of a Central Bank Digital Currency and establishes a group tasked with proposing a federal regulatory framework for digital assets within 180 days. Across the Atlantic, the European Union's Markets in Crypto-Assets (MiCA) regulation came into full effect on December 30,2024. It aims to harmonize crypto regulations across member states and enhance investor protection. 6. Macroeconomic Factors Global economic conditions can indirectly impact cryptocurrency markets, including inflation rates, interest rates, and geopolitical events. Inflation Hedge: In times of rising inflation, investors may turn to cryptocurrencies like Bitcoin as a store of value, driving up demand and prices. Economic Uncertainty: During economic instability or currency devaluation periods, cryptocurrencies may be perceived as alternative assets, influencing their adoption and valuation. 7. Market Infrastructure and Accessibility The infrastructure supporting cryptocurrency trading, including exchanges, wallets, and payment processors, plays a crucial role in market development. Exchange Listings: Listing on major cryptocurrency exchanges increases a coin's visibility and accessibility, potentially leading to higher trading volumes and prices. User-Friendly Platforms: The availability of intuitive trading platforms and secure wallets can attract a broader user base, enhancing market participation and liquidity. 8. Media Influence and Public Perception Media coverage and public discourse can significantly sway investor behavior and market trends. Positive Coverage: Favorable news stories, endorsements by public figures, or viral social media content can generate hype and increase demand, leading to price surges. Negative Publicity: Reports of scams, regulatory issues, or technological flaws can erode trust and prompt sell-offs, resulting in price declines. However, it's crucial to approach media narratives critically. Not all promotions are organic, and some are strategically crafted to manipulate market sentiment. 9. Competition and Market Saturation The cryptocurrency market is highly competitive, with thousands of coins vying for investor attention. The emergence of new projects and technologies can influence the market share and valuation of existing cryptocurrencies. Innovative Competitors: New entrants offering superior technology or unique features may attract investment away from established coins, affecting their prices. Market Saturation: An oversupply of similar projects can dilute investor interest and capital, potentially leading to stagnation or decline in cryptocurrency prices. So, what really drives crypto prices? Well… everything and nothing — all at once. From market sentiment and smart contract upgrades to surprise tweets and regulatory drama, the crypto world doesn’t exactly run on logic alone. What we’ve covered here is just the surface — a polite handshake with a market that often prefers chaotic dance battles. If you were hoping for a simple answer like “just follow the charts,” we’ve got news: even the charts are sometimes confused. That said, understanding the basic mechanics — supply, demand, tech upgrades, and public perception — at least gives you a fighting chance in this wonderfully unpredictable space. And hey, if we missed something (and we probably did), drop it in the comments.
Education
by WhiteBIT
Bullish Engulfing Pattern: A Strong Reversal SignalBullish Engulfing Pattern: A Strong Reversal Signal The bullish engulfing pattern is a two-candlestick formation that suggests a possible reversal from a downtrend to an uptrend in the financial market. This particular pattern holds immense value for traders and technical analysts as it equips them with the means to discern potential buying opportunities. In this article, we will explain how traders implement this pattern in their trading strategies. What Is a Bullish Engulfing Pattern? The bullish engulfing is a technical analysis pattern consisting of two candles. This formation emerges when a large bearish candlestick is succeeded by a larger green one that entirely engulfs it. What does the bullish engulfing mean? The bullish engulfing indicates a potential shift in market sentiment, suggesting that buying pressure might surpass selling pressure in the near future and highlighting a possible reversal from a downtrend to an uptrend. Traders can find the bullish engulfing candlestick pattern across various financial instruments, including currencies, stocks, cryptocurrencies*, ETFs, and indices. Bearish Engulfing vs Bullish Engulfing The bullish engulfing pattern has a counterparty - bearish engulfing. The bearish engulfing pattern occurs during an uptrend, indicating a change in market sentiment and potential price reversal to the downside. It consists of two candles, where the second is larger and bearish and completely engulfs the body of the preceding candlestick. How Can You Trade the Bullish Engulfing Pattern? Here are some steps traders consider when trading with the bullish engulfing: - Identification: Look for a clear bullish engulfing setup on a price chart at the end of a downtrend. - Entry Point: Although candlestick patterns don't provide precise entry and exit points as chart patterns do, there are general rules you could use. The entry point could be set slightly above the high of the bullish engulfing formation. In the conservative approach, traders enter the market after several candles close higher. In a risky approach, traders open a buy position after the pattern is formed. - Exit Point: A stop-loss level could be below the low of the engulfing candle or below a nearby support level. A take-profit level could be based on a trader’s risk/reward ratio or key resistance levels. - Risk Management: You can consider a risk management strategy to potentially limit losses. Traders focus on appropriate position sizing and risk-to-reward ratios to maintain a balanced approach to trading. - Trade Monitoring: Once you have entered the trade, monitor price action and market conditions. Pay attention to any sign of reversal confirmation or potential obstacles that may invalidate the signal. - Stop-Loss and Take-Profit Adjustment: As the trade progresses, you may consider adjusting your stop-loss level to protect potential returns. Similarly, you may consider adjusting your take-profit level if the price signals a strong uptrend. Live Market Example Let's consider an example of a bullish engulfing on the forex chart. The bullish engulfing candle in the example below is marked with 1 and 2. The trader sets the entry point above the green candle and a stop-loss level below it. The take profit is at the closest resistance level. How Do Traders Confirm a Bullish Engulfing Candlestick Pattern? Confirming this pattern enhances the reliability of its signals and helps traders make informed decisions. Here are key steps to confirm it: - Volume Analysis: Traders typically look for increased buying trading volume accompanying the candle. Higher volume suggests stronger buyers’ interest and validates the reversal signal. - Follow-Up Candlesticks: Waiting for subsequent closes can confirm the upward momentum. A series of higher closes strengthens its credibility. - Support Levels: If it forms near a significant support level, this adds context to the reversal, as buyers are stepping in at a critical price point. - Technical Indicators: Complementary indicators like the Relative Strength Index (RSI), Stochastic Oscillator, or a pair of moving averages can confirm the shift in sentiment. - Market Context: Traders assess the overall market trend and news to ensure the formation aligns with broader market conditions. Bullish Engulfing and Other Patterns Let’s take a closer look at how this pattern compares to other chart formations, like the piercing and harami. What Is the Difference Between a Bullish Engulfing and a Piercing Pattern? A bullish engulfing pattern occurs when a large bearish bar is followed by a larger candlestick that completely overtakes the former's body. This indicates a strong potential reversal from a downtrend to an uptrend. In contrast, a piercing formation also signals a potential reversal but is slightly weaker. It forms when a bearish candle is followed by a bullish candle that closes above its midpoint but doesn’t envelop it entirely. What Is the Difference Between a Bullish Engulfing Pattern and a Bullish Harami Pattern? The bullish harami pattern consists of a large red candle followed by a smaller green candle that is completely contained within the body of the red candle. This formation suggests a potential reversal but is generally considered less strong than the bullish engulfing candle pattern, as the latter completely envelops the previous bearish bar, showing more decisive buying pressure. Final Thoughts While this pattern offers valuable insights into potential trend reversals, it's essential to complement it with technical indicators and robust risk management for effective use. Also, be sure to explore other patterns as they may look very similar but provide different signals. FAQ What Is a Bullish Engulfing Pattern? A bullish engulfing pattern is a two-candlestick formation in technical analysis that suggests a potential reversal from a downtrend to an uptrend. It occurs when a large bearish candlestick is followed by a larger bullish candlestick that completely engulfs the body of the preceding bearish candle. How Reliable Is the Bullish Engulfing Pattern? The reliability of the bullish engulfing pattern as a reversal signal depends on various factors, including the overall market context, confirmation from other technical indicators, and the timeframe being analysed. While it can be a strong indication of a potential trend reversal, it is not foolproof and should be used in conjunction with other tools and fundamental analysis. What Is a Bullish Engulfing Candle Trading Strategy? The bullish engulfing candle strategy involves identifying this pattern at the end of a downtrend as a signal for a potential sentiment shift. Traders typically enter a buy position slightly above the high of the closing bar, with stop-loss levels set below the low or beneath nearby support levels. Take-profit levels are determined based on risk/reward ratios or key resistance levels. Do Wicks Matter in Engulfing Candlesticks? Yes, wicks matter in the formation. The wicks provide insights into price rejection and volatility. For a strong confirmation, the absence of long upper wicks suggests sustained buying pressure, reinforcing its validity as a reversal signal. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. 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
by FXOpen
1
How To Setup & Use The Trend Trading IndicatorThis video gives an in depth explanation of each setting of the Trend Trading Indicator so you can understand how to set up the indicator properly and get your desired results. We cover the following: Master trend signals and settings How to configure your master trend signal timeframes correctly How to get rid of signals when the market is ranging Each type of extra signal: strong all timeframe trends, pullbacks during strong trends, trend score signals and more What timeframes and settings to use for intraday trading Customizing the settings to get the results that fit your trading style Make sure to test out your settings on various markets using historical data to ensure you have the indicator performing according to your specific parameters. If you have any questions about using the indicator or the settings, feel free to reach out to us. Happy Trading :)
COMEX_MINI:MGC1!Education
by FriendOfTheTrend
2
How to Set Custom Alerts for Futures Trading in TradingViewThis tutorial video demonstrates how to access and add custom alerts for futures and other types of trading as well as manage those alerts. Learn more about trading futures with Optimus Futures using the TradingView platform here: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary.
CME_MINI:NQ1!Education
by OptimusFutures
Is the US Dollar about to Rally?Hey traders just saw 3 bar trend line confirmed on US Dollar Index but is it actually entering a new uptrend? Not sure no one knows of course fundamentally speaking I'm not sure. Seasonally it normally tops in the summer. But of course anything is possible in this new Tariff driven market we are in. But as you can see this is how you can get in when a trend changes early just find 3 bars and draw a straight line to connect them and you will be close to being on the right side of the market. So if your bullish be careful and use risk management. But if you bearish don't short until it goes back under the downtrend line imo. Enjoy! Clifford
ICEUS:DXM2025Education
by TradetheFuturesCharts
Investments with Predictable Growth Even in Times of InstabilityThe financial world is changing rapidly, and this is especially noticeable in light of recent news from the cryptocurrency sector. Every week, events occur that can either shake investors’ confidence or create unique opportunities for capital growth. At Altavics Group, we are confident: even in uncertain conditions, it is possible not only to preserve but also to increase your assets. The key lies in using advanced analytical tools, expert knowledge, and strategic thinking. Why Do News Events Play a Key Role in Investment Forecasting? News is the pulse of the market. Political decisions, economic sanctions, technological breakthroughs, statements from major players, the launch of new projects, or the introduction of regulatory measures — all these events instantly affect asset prices and investor sentiment. A good example is the recent announcement from the SEC regarding the creation of new rules for regulating cryptocurrency tokens, which caused a temporary drop in Bitcoin’s value. However, it is precisely such moments that create the foundation for smart investment decisions. At Altavics Group, we don’t just monitor the news — we know how to turn it into an advantage. How Altavics Group Uses the Flow of Information for Forecasting Our experts analyze global and local events daily, including changes in legislation, central bank activity, geopolitical trends, and market signals. We combine this data with algorithmic models based on machine learning, which allows us to: Predict asset movements in both the short and long term. Assess potential risks before they materialize. Develop adaptive investment strategies focused on capital growth. We believe that information without analysis is just noise. But information transformed into strategy — is capital. Example: When News Becomes an Investment Tool Let’s take the situation with Coinbase being added to the S&P 500 index. This step was a clear signal to investors about the legitimization of the cryptocurrency industry and increased interest from institutional players. While many reacted emotionally and too late, we at Altavics Group predicted this market reaction in advance and prepared investment scenarios for our clients that not only avoided losses but also yielded profit. Another example — the establishment of strategic Bitcoin reserves in the U.S. While the majority saw this as just another headline, we saw a trend: growing institutional interest, strengthening of the digital economic base, and, consequently, the long-term growth potential of BTC. This allowed us to adjust the share of crypto assets in our clients’ portfolios and realize gains within a few weeks. What You Get When Working with Altavics Group Individual Approach – We understand that every investor is unique. Some seek stability, others strive for aggressive growth. We tailor strategies to fit your goals and style. Real-Time Analytics – Thanks to our proprietary platform and expert team, we deliver analytics based on current events and supported by historical data. Transparency and Security – Altavics Group doesn’t offer blind solutions. Every step and investment is accompanied by clear reasoning and transparent reporting. Focus on Growth – Our key objective is growing your capital. And we firmly believe: growth is not an accident but a result of accurate analysis and smart decisions. Conclusion The world of investment is not a guessing game — it’s a science based on logic, analysis, and strategy. News shouldn’t cause fear — it should provide direction. At Altavics Group, we know how to see trends behind the headlines, assess risks beyond the emotion, and forecast capital growth based on facts, not assumptions. If you want your assets to grow on a predictable and sustainable path — even when everything seems uncertain — we invite you to partner with Altavics Group. We don’t just manage capital. We guide it toward growth — even when the market appears to be heading downward.
CSE:CRCEducation
by HCN-News12
What Makes a Chart Tradable – Part TwoIn the previous post , we explored the foundations of technical trading. We examined how market behavior can appear structured even when it results from randomness, how bias affects interpretation and how volatility persistence helps explain why certain moves tend to cluster rather than appear in isolation. This post builds on that foundation by focusing on how to recognize meaningful movement and determine whether a chart structure is tradable. Technical charts often present a wide range of setups, patterns, and interpretations. But a core distinction must be made between coincidental formations and actual price behavior driven by imbalance. Not all movements are equal, and recognizing the difference between random fluctuation and purposeful structure is essential. A common assumption in technical analysis is that certain patterns or shapes inherently provide a specific outcome. This assumption is problematic without a defined context. The ability to recognize a flag or wedge does not imply statistical validity. For a price movement to be tradable, there should be characteristics that suggest underlying buying or selling pressure. Unusual Movement To determine whether a price move is meaningful, it must be assessed in relation to what is typical for that market. All assets have their own average range, pace and rhythm. When price breaks from that baseline through unusually strong or sustained movement, it can signal momentum or imbalance. What makes these moves relevant is not their size alone, but the fact that they differ from normal behavior. This kind of shift may reflect changes in supply and demand or a reaction to new information. Such movements could mark a change in behavior and can serve as reference points. Their value lies in being statistically uncommon, which may suggest that market conditions have changed. Pullbacks as Rebalance Following strong directional movement, price tends to enter a state of reversion or pause. This is known as a pullback, a controlled retracement .It is not merely a pause. It reflects a psychological reset and the temporary rebalancing of order flow in response to imbalance. Not all pullbacks are viable. For a setup to be considered tradable, the retracement must occur in the context of a meaningful prior move. When the underlying trend is intact and the pullback is controlled, the structure can offer a more reliable opportunity. The Role of Standardization Trading should be based on discretion. It involves interpretation, context and deliberate decision-making. But without structure, it risks becoming inconsistent and reactive. Therefore movement and momentum should be measurable. What appears meaningful must be evaluated relative to the asset’s own historical behavior, not assumed based on surface-level appearance. Without a reference, the evaluation may lack foundation. Measurement supports model building. Standardization supports disciplined execution. A trader might believe a move is strong based on visual cues or pattern familiarity, but if it lacks historical context or fails to meet defined criteria, that evaluation could be flawed. Framework and Models There are categories of tools that can be incorporated to support standardization. The choice is not fixed and should be based on personal preference, methods and research. Example: Volatility Measure: Could be used to confirm when price moves outside a volatility-based envelope, indicating movement beyond the average range. Momentum Measure: Could be used to confirm whether current price action is faster or stronger compared to recent historical behavior. Such models are used to define context, not to predict outcomes. They help standardize analysis and filter out questionable movements and patterns. Conclusion The textbook patterns often referenced on their own do not create edge. Tradable charts are those where meaningful movement, defined by momentum, imbalance and structure, can be observed and evaluated using standardized methods. The purpose is not precision but repeatability. Discretionary trading is built on contextual evaluation supported by consistency and objective tools.
NASDAQ:QQQEducation
by StockLeave
How to Master Premium & Discount For Better EntriesA lot of traders talk about premium and discount, but very few actually know how to use it properly. Most just draw Fibonacci tools on random legs and try to catch reactions at the 61.8% level. That kind of trading lacks structure and context. If you're serious about using Smart Money Concepts the right way, then you need to understand where value exists in the market and how to position yourself accordingly. This guide is all about mastering the premium vs discount model using a 4H bias, entries on the 1H or 15M, and refinements based solely on Fair Value Gaps. No order blocks. No guessing. Just clean structure, displacement, and a focus on institutional logic. Establishing a Valid 4H Dealing Range Your entire analysis starts with the 4H chart. That’s where you define the dealing range, the leg of price that caused a significant shift in market structure, usually confirmed by displacement and a break of a previous swing. To do this correctly: Identify a 4H swing high to swing low (or low to high) that broke structure and created an imbalance. Anchor your range from that swing point to the extreme, this becomes your dealing range. Mark the 50% of this range — this is your equilibrium line. Everything above this midpoint is premium, everything below is discount. You’re not drawing fibs for retracement levels. You’re using them to separate cheap price from expensive price. Premium vs Discount: Why It Matters The logic is simple: institutions buy at discount and sell at premium. They don’t place large positions in the middle of the range, they accumulate when price is cheap and distribute when price is expensive. Once you’ve marked out your 4H range, you now have a framework: Price in discount (below the 50%) = potential buy setups. Price in premium (above the 50%) = potential sell setups. The key is to only look for trades in the right part of the range. If price is in premium and you're trying to long, you're working against smart money. If it's in discount and you're trying to short, you're fading accumulation. Refining the Setup on 1H or 15M Once price enters the zone you’re interested in, premium or discount. Drop to the 1H or 15M charts to look for entries. But we’re not trading any structure or supply/demand zone. We’re only interested in Fair Value Gaps. Why? Because FVGs are the cleanest way to spot imbalance — they show where price moved too aggressively and left inefficiency behind. Here's what to do: Watch for displacement on 1H or 15M once price taps into the 4H premium or discount zone. The move should break short-term structure and leave a clear FVG. Wait for price to retrace into that FVG. Entry is placed inside the gap, preferably in the upper or lower third depending on direction. Your invalidation is the low or high of the displacement move. The FVG gives you a clean risk-to-reward setup that is backed by structure, context, and smart money intent. Example: Long from Discount Let’s say price is trading inside the discount zone of a 4H bullish dealing range. You now drop to 15M and see a sharp move higher that breaks structure and creates a clean 15M FVG. Now you wait. If price retraces into that gap and shows some form of reaction (volume, reaction wick, or small lower timeframe shift), you have a valid long. The trade is high probability because: It’s inside 4H discount The 15M displacement confirms smart money is stepping in The FVG is your refined entry zone Target is always the next liquidity pool inside premium. Example: Short from Premium Opposite logic applies. If price trades into the premium zone of a 4H bearish range, you drop to 1H or 15M and wait for displacement to the downside. When you get a strong bearish move that leaves behind a Fair Value Gap and breaks intraday structure, you mark the FVG. When price retraces into it, you execute your short. Stop is above the displacement high. Target is the first liquidity level inside discount, such as an old low or a clean equal low. Rules for FVG Entries (1H/15M) To keep your execution sharp, stick to these: Only enter FVGs that form from displacement moves. The FVG must break intraday structure. It must form inside the 4H premium or discount zone, no exceptions. Avoid FVGs that form in the middle of the range or during chop. Make sure higher timeframe context supports the direction. This filters out 90% of weak setups and forces you to trade in sync with value. Targets and Exits Where you enter is based on imbalance and structure, but where you exit is based on liquidity and the premium/discount model in reverse. If you long from discount, you should be targeting premium levels. If you short from premium, you should be targeting discount levels. More specifically: Look for old highs/lows Clean equal highs/lows Unfilled FVGs in the opposite zone This way, you’re always exiting into areas where the market is likely to reverse or stall, and not overstaying your trade. Conclusion Trading from premium or discount zones isn’t just a concept, it’s a framework that puts you in line with institutional activity. When you combine it with FVGs, you have a clean, mechanical way to structure your trades. Keep your bias on the 4H. Mark your ranges clearly. Drop to 1H or 15M only when price is in a valid zone, and only take entries on FVGs that form from strong displacement. If you stay disciplined with this model, you’ll avoid chasing price and start trading from areas of true value. ___________________________________ Thanks for your support! If you found this guide helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀 Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈
CAPITALCOM:US100Education
by TehThomas
63
Best GOLD XAUUSD Psychological Levels Indicator on TradingView There is one free technical indicator that will show you every significant psychological level on Gold XAUUSD chart. It is available on TradingView and it is very easy to set. Discover the best psychological support and resistance indicator for Gold trading , its settings and useful tips. First, let's discuss the significance of psychological levels in GOLD XAUUSD analysis and trading. The classic way of the search of significant supports and resistance is based on the analysis of a historic price action. However, while Gold constantly sets new historic highs such a method does not work, because there are no historic resistances to rely on. In such a situation, the only reliable strategy to find potentially strong resistances is to analyze psychological levels. Psychological levels are the round numbers based price levels. Because of the common human psychological biases, these levels attract the interest of the market participants and the prices tend to react to them. A great example of a psychological level in Gold trading is 3000 level. It served as a resistance first and after a breakout turned into an important support. And I found a free technical indicator that plots all the significant psychological levels efficiently. One more thing to note is that I strictly recommend searching for psychological levels on a daily time frame, because it provides the most relevant perspective. To use this indicator, search "round" in indicators wind ow. It is called "Round numbers above and below". Click on that and it will start working immediately. You can see that the indicator plotted 3 significant psychological resistances above current prices and 3 supports below on Gold chat. In the settings of the indicator, you can change the number of levels to identify and change the style of the horizontal lines. Examine the reaction of the price to psychological supports that the indicator shows. These levels may remain significant in futures and applied for pullback/breakout trading. With a crazy bullish rally that we contemplate on Gold this year, psychological levels will be the most reliable technical analysis tools for the identification of future bearish reversals and corrections. This free technical indicator on TradingView will help you in search of the strongest ones. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Hammer Candlestick: Meaning and SignalsHammer Candlestick: Meaning and Signals Technical analysis is a commonly used approach in the financial markets. It involves studying historical price data to make informed trading decisions. Among the various tools and formations employed in technical analysis, the hammer candlestick pattern stands out as a powerful tool. This article will delve into the meaning of the hammer candlestick pattern and explain how traders can interpret it on a forex, stock, and crypto* price chart. What Is a Hammer Candle? A hammer is a candlestick that is found on trading charts. It occurs at the end of a downtrend and acts as a bullish reversal signal. To identify a bullish hammer candle on a price chart, traders do the following: - Look for a significant downward movement: They begin by searching for a notable decline in an asset’s price. - Observe the candle shape: The setup is characterised by a small body near the top of the candle and a long lower shadow. The lower shadow must be at least two times the length of the body. The colour of the candle doesn’t matter, but if it’s a green hammer candlestick, meaning it closed higher than it opened, the signal may be stronger. - Analyse the context: Traders usually look for areas of support nearby as they may increase the setup's reliability. Bullish Hammer Pattern: Trading Rules Here are the common steps traders take when trading with a hammer: - Confirm validity: Traders ensure that the hammer meets the criteria discussed earlier, such as a significant market decline followed by a candle with a small real body near the top and a large lower wick. - Determine the entry point: Once the bullish hammer candlestick is confirmed, traders identify an appropriate entry point. Candlesticks don’t provide specific entry points. However, traders usually wait for the subsequent bar to close above and enter the trade if the market moves higher. - Set stop-loss and take-profit levels: Traders place a stop-loss order below the low of the hammer to potentially limit risks. Traders determine a suitable take-profit level based on their trading approach, such as at the nearest resistance level or in accordance with the risk/reward ratio. Trading Example A trader spots a hammer on the hourly chart of the EURUSD pair. They wait for the candle to close above the hammer to enter the market. Their stop loss is below the hammer’s lower shadow, with the take profit calculated in accordance with the 1:2 risk/reward ratio. How Can You Confirm the Hammer Candlestick? Confirming the hammer candlestick pattern enhances the reliability of trading decisions. Beyond its basic identification, several techniques and indicators help validate its potential bullish reversal signal. - Volume Analysis: A significant increase in trading volume during the formation of the hammer candlestick suggests stronger confirmation. Higher buying volume indicates heightened interest and participation, reinforcing the potential reversal. - Support Levels: The presence of a strong support level near the hammer adds credibility to the pattern. Support levels act as psychological barriers where buying interest may increase, boosting the likelihood of a reversal. - Subsequent Candlesticks: Observing the price action of the next few candlesticks after the hammer can provide further confirmation. A bullish candle closing above the high of the hammer enhances its validity. -Double Hammer Pattern: While rare, a double hammer candlestick pattern where two candles appear consecutively can offer strong confirmation of a bullish movement. - Trend Indicators: Utilising trend indicators like moving averages can help confirm the hammer. A rising moving average confirming the upward trend or a hammer forming in line with a broader trend adds weight to the potential reversal. - Divergence: Identifying divergence between the price and momentum indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), can strengthen the pattern's reliability. Hammer and Other Candlestick Patterns Let’s compare the hammer to other candle formations you can spot on price charts. Inverted Hammer The inverted hammer is similar to the hammer but has a different appearance. It is characterised by a small body near the bottom of the candle and a long upper wick. The inverted hammer signals a potential bullish reversal as buyers start to gain strength and push the market up. The small body and small lower shadow reflect the rejection of lower prices, suggesting a shift in market sentiment from bearish to bullish. Doji In contrast to the red or green hammer candlestick pattern, the doji features a small real body with equal or close opening and closing prices and long upper and lower wicks. It represents market indecision, where neither buyers nor sellers have gained a clear advantage. While the hammer is potent during the downtrend, the doji can occur after both uptrends and downtrends, and it signals market consolidation or a potential trend reversal. Shooting Star The shooting star formation emerges at the top of an uptrend and suggests a potential bearish reversal. It is identified by a small real body near the bottom of the candle and a long upper wick, implying a rejection of higher prices and potential exhaustion of buying pressure. Hanging Man The hanging man emerges after an uptrend and suggests a potential bearish reversal. It resembles the hammer with a small real body near the top and a long lower wick, but the crucial difference is that it occurs in an uptrend. The hanging man implies that sellers are starting to exert influence, potentially leading to a reversal in the market. Limitations of the Hammer Pattern While the hammer is a valuable tool in technical analysis, it is not without its limitations. - False Signals: It can sometimes produce false signals, leading to premature or incorrect trade entries. In certain market conditions, such as strong downtrends or highly volatile environments, the hammer may be less effective. Its success rate can vary across different assets and market scenarios. - Dependence on Confirmation: The reliability of the hammer significantly depends on additional confirmation tools and indicators. Without these, alone it might not provide sufficient confidence for trading decisions. - Short-Term Nature: The hammer primarily signals short-term price movements and typically can’t be used to anticipate medium or long-term price trends. The Bottom Line Successful implementation of the hammer formation requires experience, practice, and the use of additional technical analysis tools and indicators. Traders never rely solely on the hammer’s signals but integrate it into a comprehensive trading strategy. FAQ What Is a Hammer Candlestick? A hammer is a specific setup found in charts that indicates a potential reversal to an uptrend. It is formed when a financial instrument opens at a certain price and experiences a significant decline during the trading period but eventually rallies back and closes near its opening price. Is a Hammer Candlestick Pattern Bullish? Yes, the hammer candlestick pattern is generally considered bullish. It signifies a potential trend reversal after a downtrend, as buyers enter the market and drive the price higher from its lows. The long lower shadow indicates that the buying pressure is strong and can potentially lead to further upward movement in the market. Can a Hammer Candle Be Bearish? A hammer candle is generally considered a bullish reversal signal, signalling a potential upward price movement after a downtrend. There is no bearish hammer. If the market continues to move lower after it forms, it just means that bearish market conditions were stronger and didn’t allow buyers to change market sentiment. What Is the Hammer Candle Rule? The hammer candle rule states that it must occur after a significant downtrend, have a small real body near the top of the candle, and feature a long lower shadow at least twice the length of the body. This pattern indicates a potential bullish reversal if confirmed by subsequent price action. What Is the Hammer Strategy? The hammer trading strategy involves identifying a candlestick at the end of a downtrend, confirming its validity with additional indicators or signals, and then entering a long position. Traders typically set stop-loss orders below the hammer's low and determine take-profit levels based on risk/reward ratios or nearby resistance levels. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. 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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