Bitcoin weekly chart. A hint at how its price may head very soon
My understanding is that BTCUSD has already broken the breakout top-line of the weekly cup, it was a price at about 73,750. I could be wrong, but approximately correct. This means BTCUSD has broken out already.
This weekly chart of bitcoin contains the famous weekly head n shoulders pattern that first started forming back in 2021 or was it 2022? Either year is long enough.
In the chart you will also see a rising wedge on this weekly chart. Well bitcoin is climbing to the top right now and does not have far to go. USD might be very strong today so it may not be the session for Bitcoin, but Bitcoin is so resilient to the USD that anything is possible and BTCUSD moves fast when it wants.
Price will bounce out of the top of wedge and become independent to formations, before it makes a short retrace and then heads over the critical area which is the Cup top-lining. This will probably happen very quickly but there should be a retest of the breakout zone.
Also, you want to view the price action on a very low time frame, like 1m to 5m. There will probably be a bullish rising wedge that price also moves in before separating and breaking out.
Good luck.
Educationalposts
GBPUSD bullish divergence daily. Lows and Highs Div.
I put out a buy on this pair a week or 2 ago, GBPUSD, a lot can happen in this amount of time, last time I called a Long-trade on this pair & the same this time.
GBPUSD is moving up towards a neckline breakout on a Double-bottom system intraday.
But the real glossy confluence I see is the Daily chart and bullish RSI divergence. In recent days the RSI on the daily chart, where divergences probably work best because most traders look for divergences on Daily & even Weekly, 4hr charts, has seen lower low to higher low on the RSI AND also lower high to higher high on the daily RSI, but on the price action for GBPUSD it was a lazy lower prices down compared to a bullish turnaround on the RSI.
So this divergence is going to be noticed by traders and GBPUSD should be a buy going forwards.
As an added bonus of confluence, I threw in some MACD's to also highlight that the trade is supported on the Daily by MACD's sweeping upwards.
Crypto Bull Run: Unveiling the First StageAfter a year-long bear market, cryptocurrency prices enter a consolidation phase at the bottom, lasting approximately 500-700 days. If the price breaks through this consolidation resistance, it could experience a bullish move of 100%-300%, This pattern occurs once every four years in the crypto market.
Currently, most cryptocurrency prices are breaking out of their consolidation phases and experiencing 100%-300% moves. This marks the first stage of the crypto bull run.
I will share the example charts below.
Regards
Hexa
Cryptocurrency ADAUSD CARDANO: Next to break out.
I bought into this one recently but it was weighing heavily since the purchase in terms of price not quite breaking-out enough, but that all changed today as Cardano moves out of its squeeze and into climbing and rallying mode.
Earlier in 2024 it entered a Supply-downtrend but in recent months buying entered into Cardano and the charts stated to expand with some volatility to upside prices.
A breakout "jump" is what ADAUSD set-out to do in 2024 and with supply switching mostly over to demand and with Bitcoin now very close to 71,000, that time is near.
DogeUsd moves up but watch 4 Bitcoins break above 76,522
Bitcoin is making a sluggish return to the long-side in trading today, so DogeUsd is following suit.
But Bitcoins next leg-up is dependant on a Top2 system 'taking' and a BTCUSD move above price 76,522 should ensure Bitcoins next bullish move but also DogeUsd.
My other pick at the moment is Cardona, ADAUSD which I picked Long at 0.33 & is now at nearly 0.39, however it's chart is indicative of much higher prices as Bitcoin Price Ascends further.
Pick of the Currency Outbreaks AUDUSD. More bulls ahead.
This is the Daily chart of AUDUSD. It's up well over 1% today.
It looks to have strength continuing to the upside due to a change in momentum favouring the Aussie.
You can see in the chart of daily how the 200ema has turned in favour of the Aussie.
I would be looking for a pullback to this 200ema which is about 0.6652 to 0.6655 to offer a wider zone of buying.
If you look ahead on the Daily, you will see a huge head n shoulders bullish setup which the bulls will be chasing.
I wrote a month or 2 ago how I expected the Aussie to breakout, but the USD has also returned to strength.
We also saw AUD perform very strongly against a basket of of other currency's in the Asian session earlier.
Silver very bullish now. Giving its usual false breaks earlier
As I mentioned for Gold price and Silver, although overextended a bit in price still, I am seeing momentum swinging back for the bulls and on the important bigger timeframes like 4hr and daily.
This chart is a recent Fibs pullback. Check it out below.
No false-break upwards here in Gold-It's moving up fast
Gold and Silver had a healthy downwards correction from what I understand.
A few nervous Gold-holders after Donald Trump's re-election.
But there is much more to the story for gold prices to go higher.
I see the intraday charts looking bullish for silver and gold today, as momentum is shifting back to the upside.
Wait and see what the Economic News tells us before rushing to go Long
Economic data just released was probably more in favour of the USD, but I note it was a mixed-bag release and in some ways favouring Gold price. Gold price has shrugged off the data it seems.
BTCUSD Defying a further pullback. Too bullish at Mid 75k
Bitcoin BTCUSD took a normal day of retracement in earlier trading (Asian & Europe Session), but it's recently made a move upwards, which prompted me to check the intraday charts and it looks like the climb will continue today. Mainly on momentum the past couple of days and of course there is that break of the March high, which reminds the pullback earlier today was probably to test this break of a previous high by new price.
Understanding Trading Leverage and Margin.When you first dive into trading, you’ll often hear about leverage and margin . These two concepts are powerful tools that can amplify your profits, but they also come with significant risks. The image you've provided lays out the essentials of leverage and margin: Leverage allows traders to control larger positions, Margin acts as a security deposit, Profit Amplification boosts potential gains, and Risk Amplification warns of increased losses.
In this article, we’ll break down these terms and explore how leverage and margin work, their advantages and risks, and what to consider before using them in your trading strategy.
What is Leverage in Trading?
Leverage is essentially a loan provided by your broker that allows you to open larger trading positions than your actual account balance would otherwise allow. It’s a tool that can multiply the value of your capital, giving you the potential to make more money from market movements without needing to invest large sums of your own money.
Think of leverage as “financial assistance.” With leverage, even a small amount of capital can control a larger position in the market. This can lead to amplified profits if the trade goes your way. However, it’s a double-edged sword; leverage can also lead to amplified losses if the trade moves against you.
Example of Trading with Leverage
Suppose you have €100 in your trading account and your broker offers a leverage of 1:5. This means you can control a position worth €500 with your €100 investment. If the market moves in your favor, your profits will be calculated based on the €500 position, not just the €100 you originally invested. However, if the market moves against you, your losses will also be based on the larger amount.
What is Margin in Trading?
Margin is the amount of money you must set aside as collateral to open a leveraged trade. When you use leverage, the broker requires a deposit to cover potential losses—this is called margin. Margin essentially acts as a security deposit, ensuring that you can cover losses if the trade doesn’t go as planned.
Margin is usually expressed as a percentage of the total trade size. For example, if a broker requires a 5% margin to open a position, and you want to open a €1,000 trade, you would need to deposit €50 as margin.
How Does Margin Work?
Margin works together with leverage. The margin required depends on the leverage ratio offered by the broker. For instance, with a 1:10 leverage, you’d only need a 10% margin to open a position, while a 1:20 leverage would require a 5% margin.
If the market moves against your position significantly, your margin level can drop. If it falls too low, the broker may issue a **margin call**, requesting additional funds to maintain the trade. If you don’t add funds, the broker might close your position to prevent further losses, which could lead to a loss of the initial margin amount.
How Does Leveraged Trading Work?
Leveraged trading involves borrowing capital from the broker to increase the size of your trades. This allows you to open larger positions and potentially gain higher profits from favorable market movements.
Here’s a simplified process of how it works:
1. Deposit Margin: You set aside a portion of your own funds (margin) as a security deposit.
2. Leverage Ratio Applied: The broker provides you with additional capital based on the leverage ratio, increasing your trading power.
3. Open Larger Positions: You can now open larger trades than you could with just your capital.
4. Profit or Loss Magnified: Any profit or loss from the trade is amplified, as it’s based on the larger position rather than just your initial capital.
While leverage doesn’t change the direction of your trades, it affects how much you gain or lose on each trade. That’s why it’s essential to understand both the potential for profit amplification and the risk amplification that leverage brings.
The Benefits and Risks of Using Leverage
Benefits of Leverage
- Profit Amplification: With leverage, you can control larger trades, which means any favorable movement in the market can lead to greater profits.
- Capital Efficiency: Leverage allows you to gain exposure to the markets without needing to invest a large amount of your own money upfront.
- Flexibility in Trading: Leveraged trading gives traders more flexibility to diversify their positions and take advantage of multiple opportunities in the market.
Risks of Leverage
- Risk Amplification: Just as leverage can amplify profits, it also amplifies losses. If a trade moves against you, your losses can be substantial, even exceeding your initial investment.
- Margin Calls: If the market moves significantly against your leveraged position, you may face a margin call, requiring you to add more funds to your account to keep the position open.
- Rapid Account Depletion: High leverage means that small market moves can have a big impact on your account. Without careful management, you could deplete your account balance quickly.
Important Considerations for Leveraged Trading
1. Understand the Leverage Ratio: Different brokers offer various leverage ratios, such as 1:5, 1:10, or even 1:100. Choose a leverage ratio that aligns with your risk tolerance. Higher leverage ratios mean higher potential profits but also higher potential losses.
2. Know Your Margin Requirements: Always be aware of the margin requirements for your trades. Brokers may close your positions if your margin level drops too low, so it’s essential to monitor your margin balance regularly.
3. Risk Management is Key: Use risk management strategies like stop-loss orders to limit potential losses on each trade. Don’t risk more than a small percentage of your account balance on any single trade.
4. Avoid Overleveraging: One of the biggest mistakes new traders make is using too much leverage. Start with a lower leverage ratio until you’re more comfortable with the risks involved in leveraged trading.
5. Only Use Leverage if You Understand It: Leveraged trading is suitable primarily for experienced investors who understand the market and the risks involved. If you’re new to trading, practice with a demo account to learn how leverage works before applying it in a live account.
Final Considerations
Leverage and margin are powerful tools in trading that can amplify profits, but they come with considerable risk. Using leverage wisely and understanding margin requirements are essential to avoid unnecessary losses and protect your account. While the prospect of profit amplification is attractive, traders should always remember that leveraged trading is a double-edged sword—it can lead to significant gains, but it can also result in rapid account depletion if not managed carefully.
To summarize:
- Leverage allows you to control larger trades with a small investment, multiplying both potential profits and potential losses.
- Margin is the deposit required to open a leveraged trade and acts as a security against potential losses.
- Use leverage responsibly and only after understanding the risks involved.
Leverage can be a valuable tool in trading if used wisely, so make sure to educate yourself, practice with a demo account, and always approach leveraged trading with caution.
BTCUSD Now +73,000 pumping so hard to take March high today
Bitcoin has absolutely exploded with upside movement during the last couple of sessions, even yesterday during New York trading, Cryptocurrency had a smashing day and I did not even have to look at the charts to understand that Bitcoin BTCUSD was on its way to take the March High.
Well if you don't own any Cryptocurrency, for educational purposes only, it's always a good idea to buy Bitcoin or stock/currency BEFORE the breakout, when price will go up very fast in line with how much Bitcoin is breaking out.
My next profit target for BTCUSD is not 120,000 which is where I think it will make very quickly after it explodes upwards in price following the break above the Huge CUP pattern on the Weekly chart. BTCUSD price is at time of writing is 73,150 approximately.
Prior to Cryptocurrency prices going into a frenzy following such a breakout, some other Crypto names that are solid and safe performers are DOGEUSD, TRXUSD, SOL & of course BTCUSD the number 1.
GOLD OUTLOOK Gold a safe heaven as we have taken bunch of profits today as it was our lucky day now as we see all day activity gold price remained very choppy price didn't broke above 2748 price level of resistance also didn't broke below 2731 price level of support as price has formed immediate resistance level of 2746-48
Now we again predict a fall in price as from H4 to H1 we can observe price is in a bearish momentum although price is showing some bearish signs over Daily Time frame but still price is in a bullish trend daily as we haven't observed any CHOCH on daily TF
GEOPOLITICS
As Geopolitics is concerned tight situation between iran and israel has loosen up to some extent of some tension increases we can see a bull run over price
US ELECTIONs
As far as today's big news is concerned gold is under effect of US Congress elections and what we have observed today is election effect tomorrow at 6th we can see any predictable price movment till now we are bearish over gold as price is all sideways
AUDCAD about to Pop to the upside.
Another setup I like mostly from this Daily chart. Price recently decoupling from a falling-wedge and moving briefly to a nearby liquidity zone and then shaping up to move upwards.
Trade has plenty of upwards momentum and should be a good riser commencing very soon.
I have bought at current levels around 0.9195 and SL at 0.9184, quite tight.
For educational purposes on tradingview only.
NZDCAD Long: Another solid setup on Daily
NZDCAD was a trade I took long about 8 hours ago.
In the old days, when I would break every trading rule and chase the market, I would've done that this morning, but then I realised price is going to pull back for my entry after I analyse it's chart for at least 10 minutes.
It has recently pulled back to about a 50% Fib retracement,
Mastering the Risk/Reward Ratio: A Key to Trading ProfitabilityMastering the Risk/Reward Ratio: A Key to Trading Profitability
In the world of trading, achieving success isn't merely about selecting the right stocks or making spot-on predictions. True profitability lies in managing risk effectively, a skill that can be the difference between sustained growth and heavy losses. A primary tool for this is the risk/reward ratio—a fundamental element in a trader’s toolkit. This metric helps traders maintain discipline and clarity, ensuring each trade has a strong potential for profit while keeping possible losses in check.
Whether you’re new to trading or have years of experience, understanding and using the risk/reward ratio can transform your approach. It’s not about maximizing the number of wins but ensuring that the rewards consistently outweigh the risks. Here, we’ll explore how this ratio impacts trading strategy and why it’s critical for long-term success.
Understanding the Risk/Reward Ratio
The risk/reward ratio is a straightforward formula that compares the profit potential of a trade to its possible loss. Essentially, it answers the question: How much can I gain for every dollar I risk?
For example, if you're willing to risk $100 for a possible $300 gain, your risk/reward ratio is 1:3, meaning you could make $3 for every $1 at risk.
Example of a 1:3 risk-reward ratio in EUR/USD
This concept encourages traders to evaluate the potential downside of a trade before jumping in, moving away from focusing solely on potential gains. By keeping a balanced view of risk and reward, traders can avoid seemingly attractive trades that may carry excessive risk, enabling them to approach the market with a disciplined, long-term mindset.
Why Risk/Reward Matters
Every trade involves risk, and the ability to manage it effectively often differentiates successful traders from those who struggle. Using the risk/reward ratio ensures that each trade is structured with a clear plan, protecting capital while allowing for potential profits. Without this focus on risk, traders may chase high returns without properly assessing the downside, leading to costly mistakes.
Combined with tools like stop-loss orders and position sizing, the risk/reward ratio becomes part of a broader risk management strategy. These components work together to balance profit potential with loss control, which is essential for traders aiming to sustain profitability over time.
Here you can find a comprehensive article on stop-loss strategies.
Risk/Reward Ratio vs. Win Rate
A common misconception among novice traders is that trading success depends on winning more trades than losing ones. Experienced traders know that profitability has more to do with how risk is managed in losses than how many wins you achieve. The risk/reward ratio addresses this, making it possible to be profitable even if a trader wins less than half of their trades, as long as the wins are substantial enough to offset the losses.
For example, if a trader wins only 40% of the time but maintains a 1:3 risk/reward ratio, the profits from winning trades can cover losses from losing trades while still yielding an overall profit.
Here is a comprehensive table comparing risk/reward ratios to win rate profitability.
Advantages of a Disciplined Risk/Reward Approach
One of the most valuable benefits of using the risk/reward ratio is the structure it brings to trading. It helps traders stay rational and minimizes emotionally driven decisions, such as holding onto losing positions with the hope of a reversal. By maintaining a favorable risk/reward ratio, traders enter each trade with a defined plan, reducing the chance of impulsive, loss-heavy decisions.
Furthermore, applying a risk/reward framework ensures that trades are entered only when the reward justifies the risk. Over time, this disciplined approach fosters consistency and sets the stage for more predictable results.
Steps to Calculate Risk/Reward Ratio
Calculating the risk/reward ratio is a simple yet impactful process that enhances trade planning. Here’s a step-by-step guide:
1- Determine Your Risk: Define the amount you’re willing to lose if the trade moves against you, which is the difference between your entry price and stop-loss level.
2- Define Your Reward: Establish the potential profit if the trade goes in your favor, measured from the entry price to your target profit level.
3- Calculate the Ratio: Divide the potential reward by the potential risk to get your risk/reward ratio.
For instance, if you’re buying a stock at $100 with a stop-loss at $95, your risk is $5. If you aim to sell at $115, your reward is $15, giving you a 1:3 risk/reward ratio.
Choosing an Ideal Risk/Reward Ratio
The ideal risk/reward ratio can vary based on trading style and goals, though many traders aim for a minimum of 1:2 or 1:3. Higher ratios like 1:3 allow for a more forgiving approach to losses, where a trader doesn’t need a high win rate to be profitable. However, shorter-term traders might use lower ratios (e.g., 1:1.5) while aiming for a higher win rate to balance profitability.
Ultimately, the best ratio depends on factors like trading frequency, volatility, and risk tolerance. Day traders may prefer a 1:2 ratio, allowing for quicker exits with decent returns. Swing traders, on the other hand, might look for a 1:3 ratio or higher to justify holding positions longer despite potential market fluctuations.
Managing Risk with the Right Tools
Achieving long-term profitability requires more than just a favorable risk/reward ratio; it also demands effective risk management. Stop-loss orders, for instance, are invaluable for capping potential losses. Placing stops at logical price points, such as below support levels or above resistance levels, helps protect positions without risking premature exits.
Similarly, maintaining discipline by skipping trades that don’t meet your risk/reward criteria can prevent excessive losses. Proper position sizing and a detailed trading plan round out this approach, ensuring that each trade aligns with your overall strategy and risk tolerance.
Here is a comprehensive guide about the Risk Management
Final Thoughts: The Power of the Risk/Reward Ratio in Trading
The risk/reward ratio is more than a calculation—it’s a mindset that can lead to stronger, more disciplined trading decisions. By assessing potential risks and rewards before each trade, you can avoid impulsive choices and safeguard your capital. This approach brings clarity and control to trading, even amid market unpredictability.
While the risk/reward ratio may be a straightforward tool, its impact is profound. Focusing on balancing risk with reward enables traders to protect themselves from major losses while pursuing worthwhile gains. The next time you plan a trade, remember to ask: “Does this meet my risk/reward criteria?” If not, stepping back could be the wisest move.
Risk management is essential for lasting success, and the risk/reward ratio serves as a constant guide. Consistently applying this ratio fosters discipline, confidence, and, ultimately, greater profitability in your trading journey.
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Strong Bullish Chart Structure: TRON TRXUSD: Sets up
This is a Cryptocurrency that always reminds me of DOGEUSD because they share a similar price at around 0.16 cents, the difference is that this one TRXUSD is positioned very strongly in terms of its price.
The setup here is the 4HR chart. You will see about 6 times that price action has drawn together with the 200EMA just before price rally's in Long positions.
You will see in the 4hR CHART how Tron is meeting with the 200EMA very soon, once again, I doubt it quite makes the joining with 200EMA because its price is going to take off very soon, northwards/longwards.
The thicker WHITE-LINE in chart is the 200EMA
BPCL 240 MINS MY VIEW The Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Please keep your comments useful & respectful.
Keep it simple, keep it Unique.
Thanks for your support
Tradelikemee Academy
Saanjayy KG
APOLLOHOSPITAL 240 MINS TIME FRAME - MY VIEW ONLYThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Please keep your comments useful & respectful.
Keep it simple, keep it Unique.
Thanks for your support
Tradelikemee Academy
Saanjayy KG
Bitcoin's Squeeze in price is building momentum upwards
I hope you are well this Sunday.
If you have been following my Bitcoin thread this weekend, you will know that price has further to fall, if the Bitcoin market is to tank downwards. What I am saying is that we are in a squeeze moving price down and up which contracts price and causes the squeeze effect, which quite frankly is needed in circumstances where volumes are again low this weekend.
But this squeeze is building momentum in the Bitcoin tank.
Bitcoin price has recently tested the level just under 69000 which is a big support level. Unfortunately some Stop Losses would've been triggered and price has taken the liquidity and moved higher. I never like to promote a stop loss level to someone, but I think it's reckless if I do not in circumstances where price tanks.
Please take a look at a recently Daily Chart of Bitcoin. I present Fib Levels & Fib EMA's 8,13,21,55. Both are supportive of price to move higher from current levels. 69,000 and thereabouts is the support zone and I think this level will hold.