Get started

Educationalposts

Dealing with trading losses... before they occurLosses are part of this business. People do not react well to losses. Badly handled losses in trading can trigger bigger losses. Furthermore, these have the dangerous potential of wiping out entire accounts. If you want to make it as a trader you need to have a solid psychological approach to accept and handle losses. Lots of internet articles are suggesting that the way to prevent debilitating losses in trading is to follow risk management rules. What are those rules about? Basically, they are simple thresholds indicating the maximum $ /percentage you should risk per trade, day, month etc. Having such rules is a must but it’s not enough. You can still lose much if your mind is not actually prepared to implement them. That’s why many traders set rules only to break them in the most inappropriate moments. People do not follow their own risk management rules because they are not psychologically prepared to accept losses. They are not prepared for the pain caused by a loss or a series of losses. The single most efficient way to handle losses is to accept them consciously and unconsciously. One of the most dangerous ways to react to losses is “revenge” or “on tilt” trading. This happens when the pain caused by a loss is so high that the trader looses his / her rationality and only wants his / her money back, disregarding most of the things he / she actually knows about the market. The brain cannot accept the emotional discomfort and the fastest solution is to quickly find a trade to make the money back. Most of the time, the quickest trade is in the same instrument (FX pair, stock, etc) that generated the initial loss, by averaging down/up or flipping. Some of the most experienced traders can work their way out but the vast majority will only make things worse. In order to prevent this kind of psychological slippage you need to prepare your mind to consciously and unconsciously accept losses BEFORE they occur. With the help of a psychotherapist or by yourself you can perform visual exercises where you will imagine yourself being in a losing position and reacting the right way. This would desensitize yourself, if done right. The technique I always use each time I open a position is to do that desensitization process “on the fly”. I watch the market and I see an opportunity. BEFORE opening the position, I imagine myself in the posture of facing that trade ending in a loss. After that, I imagine that trade going the way I want. I might even go back and forth (in my mind) a few times between losing and winning. This way, I prepare my unconscious mind. If I cannot imagine myself easily handling the loss (or the win) I will simply reduce size. Pay attention though, I am not recommending here to imagine yourself constantly losing because this would do more harm than good. This would be a separate topic about the power of visualization exercises.
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
17
Price Channels — Quick and Easy Guide.Greetings, @TradingView community! When it comes to analyzing market trends, there's a technique that takes trend theory to the next level: price channels. This is @Vestinda, bringing you a helpful article on the topic of the price channels, also known as trend channels, offer an exciting way to identify optimal buying and selling opportunities in the market. Price channels serve as a valuable tool in technical analysis, helping traders determine favorable entry and exit points. By drawing parallel lines that align with the angle of an uptrend or downtrend, we create a channel. The upper trend line acts as resistance, while the lower trend line represents support. These lines highlight potential areas where the market could experience reversals or continue its current trend. Understanding the sentiment of a price channel is crucial. Channels with a positive slope (upward) are considered bullish, indicating an upward trend, while those with a negative slope (downward) are bearish, pointing to a downward trend. Recognizing the slope of a price channel allows traders to gauge the prevailing market conditions and make informed trading decisions. Price channels can be categorized into three main types: Ascending channels Descending channels Horizontal channels Ascending channels display higher highs and higher lows, signaling a bullish sentiment. To create an ascending channel, draw a parallel line touching the most recent peak, aligning it with the angle of the uptrend line. Conversely, descending channels exhibit lower highs and lower lows, suggesting a bearish sentiment. To create a descending channel, draw a parallel line touching the most recent valley, aligning it with the angle of the downtrend line Horizontal channels , also known as ranging channels, indicate a consolidation phase with no clear trend direction. These channels provide insights into potential buying zones when prices hit the lower trend line and selling zones when prices approach the upper trend line. Understanding these channel types empowers traders to adapt their strategies to different market scenarios. Constructing a price channel requires parallelism between the trend lines. The lower trend line is typically considered a "buy zone," while the upper trend line serves as a "sell zone." It's crucial not to force price action into the drawn channels. When the channel boundaries slope at different angles, the pattern is no longer a price channel but a triangle pattern, requiring a distinct analytical approach. Remember that price channels don't have to be flawlessly parallel. In reality, it's rare to find price action that perfectly aligns within two trend lines. As traders, it's important not to solely rely on textbook price patterns but also consider broader market context and other essential cues from price action. Effective price channel analysis involves embracing imperfections and making informed decisions based on the available information. In conclusion, price channels provide traders with a powerful technique to uncover profitable opportunities in the market. By drawing parallel trend lines and identifying support and resistance levels, traders can gain valuable insights into market sentiment and enhance their trading decisions. However, it's essential to remember that perfection isn't the goal. Instead, focus on understanding market dynamics and adapting your strategy accordingly. 💜 So there you have it - a quick and easy guide to understanding price channels in trading! 💜
INDEX:BTCUSDEducation
by Vestinda
19
HUDCO 240 MINS CHART LONG SETUP ✅✅✅✅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. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.... Tradelikemee Academy
NSE:HUDCOLong
by Tradelikemee
3
Wise words from Buffett’s annual letterWarren Buffett, often referred to as the "Oracle of Omaha," is one of the most successful investors of all time. His investment philosophy, centered around value investing and long-term growth, has transformed Berkshire Hathaway from a struggling textile company into a sprawling conglomerate, encompassing a diverse range of businesses from insurance and utilities to railroads and retail. Buffett's shrewd investment strategies and unparalleled business acumen have made Berkshire Hathaway a powerhouse in the global economy, and himself a beacon of wisdom in the world of finance. Warren has been investing through Berkshire Hathaway (BRK.A) (BRK.B) for 58 years, but he ascribes most of his success to remarkably few decisions. He writes: “Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.” The turbulent swings of the market are utterly engrossing. An overwhelming amount of information and analytics are constantly prompting us to act. However, taking into account Buffett's advice—that only one great idea is needed every five years—can help us understand the importance of every investment decision we make. This parallels another renowned saying from Buffett, advising us to limit the number of good investment strategies we attempt to execute. Buffett proposes a '20-slot punch card' guideline: Imagine being handed a card with only 20 holes, each punch representing each investment you could make in your entire life. After all the slots have been punched, you can't make any more investments. Given these constraints, you would be compelled to scrutinize each decision and would tend to invest heavily in what you've deeply pondered. Consequently, your results would significantly improve. Warren’s letter goes into his ‘secret sauce’ and some of the 12 ideas that have worked for him. Of particular emphasis this year: the compounding of long-term dividend and cash flow growth from his purchases 30 years ago, particularly Coca-Cola (KO) and American Express (AXP). He writes: “In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful sum at Berkshire. The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow. American Express is much the same story. Berkshire’s purchases of Amex were essentially completed in 1995 and, coincidentally, also cost $1.3 billion. Annual dividends received from this investment have grown from $41 million to $302 million. Those checks, too, seem highly likely to increase. These dividend gains, though pleasing, are far from spectacular. But they bring with them important gains in stock prices. At year end, our Coke investment was valued at $25 billion while Amex was recorded at $22 billion. Each holding now accounts for roughly 5% of Berkshire’s net worth, akin to its weighting long ago. Assume, for a moment, I had made a similarly-sized investment mistake in the 1990s, one that flat-lined and simply retained its $1.3 billion value in 2022. (An example would be a high-grade 30-year bond.) That disappointing investment would now represent an insignificant 0.3% of Berkshire’s net worth and would be delivering to us an unchanged $80 million or so of annual income.” Advice for contemporary investors: Given the resurgence of returns in the fixed income sector, where short-term Treasuries are currently yielding close to 5%, some investors are wondering if equities are now facing stiffer competition. However, these fixed income returns may find it challenging to outpace inflation over time. Unlike fixed income, equities such as Coca-Cola and American Express offer long-term compounding through dividend growth, which is a critical advantage for investors seeking wealth accumulation. In conclusion , Warren Buffett's investing principles, embodied in his stewardship of Berkshire Hathaway, provide invaluable lessons for all investors. Despite the allure of seemingly competitive returns in other markets, it is essential to remain focused on the long-term potential of equities, particularly those with a robust track record of dividend growth. As Buffett's success has shown, patient investing based on sound understanding and rational decision-making can yield substantial results over time. Stay tuned for more educational content and subscribe to our channel.
NYSE:BRK.AEducation
by financialflagship
Focusing on winning trades is your setback as a beginnerEvery individual begins their trading journey with the idea that trading is all about winning trades and making money. Soon after their dreams are shattered when they realise it was not as easy as they had thought it would be. Now as we all know, the road to success to many is long and difficult, and that’s exactly what makes them successful. So why should the road to success in trading be any different? Look at top performing athletes, they trained for years before reaching any kind of success that definitely did not occur overnight. This bring me to my main point where many traders could be failing due to focusing on winning trades rather than the process it takes to become a good trader. Every trader beginning their journey needs to understand that trading the financial markets is no different than a top performing athlete. In order to achieve success, one needs to develop their skills over years. Instead of focusing on winning every single trade, one should be focusing on the process and the experience they are gaining over this time. Studying your mistakes, your losses, your psychological weaknesses, your analysis, and your understanding of the charts, are far more important at this stage than focusing on winning trades. Look at your trading journey like a student attending university, a student will learn over years different topics, where some will seem worthless at the time, but will however develop their skills in the necessary fields to succeed in the future. Every beginner should deeply focus on the process. Winning trades are a by-product of a developed successful strategy which also requires a developed individual. The trader needs to be developed in their psychology above all in order to trust their strategy and apply it correctly without deviating from the plan. Take the time to focus on all aspects of your trading, and let the winning trades come as a result of that in the future. Trading is a marathon, not a sprint, always remember that.
COINBASE:BTCUSDEducation
by opes_trading_group
2
The Simple Plunge StrategyHello dear @TradingView community! Welcome to @Vestinda, your trusted trading companion in the ever-changing world of financial markets. Our team is passionate about giving traders like you the tools and knowledge to make smart decisions and achieve your investing and trading goals. At Vestinda, we know that successful trading involves using effective strategies, analyzing the market, and managing risk. That's why we sharing a strategy that can help you make the most of downward trends — The Simple Plunge Strategy. This strategy is designed to help you navigate downward movements in the market with confidence. It focuses on spotting specific patterns that occur during sharp drops in cryptocurrency prices. By understanding and applying this strategy carefully, you have the potential to increase your profits. The Simple Plunge Strategy involves looking for certain signs: a strong and sudden downward movement in price, shown by a big candlestick with high trading volume. After the drop, the price often recovers to levels seen when the candlestick opened. By closely watching how the price moves across certain boundaries, you can find good points to enter trades and set your profit targets and stop-loss levels. To use the Simple Plunge Strategy effectively, it's important to find the right entry points and manage your risk. You can find entry points by watching the price as it rises above the starting point of the candlestick with a big volume. To determine your profit target, you can use half of the candlestick range. And to manage risk, you can set a stop-loss order above the previous high point. This strategy can be used with different timeframes, but looking at 15-30 minute intervals can give you opportunities for quick trades. When applying the strategy to cryptocurrencies, look for coins or tokens that have experienced significant drops with high trading volume. Watch how the price moves above and across the starting point of the drop to find potential entry points. You can also find examples of Simple Plunge patterns on CEX platforms, which list various cryptocurrencies. Take a look at coins such as ETH, DOGE, and others to see instances where the price sharply drops and then rises again, indicating possible entry points. Remember, the Simple Plunge Strategy can also be used in reverse to identify opportunities during upward movements. A similar pattern often occurs when prices rise. We'd love to hear your feedback on the Simple Plunge Strategy. Have you tried this approach in your trading? Share your thoughts, questions, and experiences in the comments below. Let's have a lively discussion and support each other in the world of trading.
INDEX:BTCUSDEducation
by Vestinda
Ichimoku Target Price Theory V, N, E and NT CalculationsTHE BASICS: Here is a close up of the Ichimoku Kinkō Hyō indicator: Many people do not know that the Ichimoku Kinkō Hyō cloud system has its own Number, Wave, Target Price and Timespan Theories. After years of study, the numbers that Goichi Hosoda choose for his system are 9, 17, 26 as the basic numbers with 33, 42, 65, 76, 129 and 200~257. These numbers are used in the timespan as well as on the indicator itself. 9 is used for the Conversion Line (Tenkan Sen) 26 is used for the Base Line (Kijun Sen) 26 is also used for the Lagging Span (Chikou Span) and is used to shift the current price back 26 periods. The Lagging Span (Chikou Span) is an exceptional part of the system and allows you to see possible support and resistance levels without drawing any lines. The Leading Span A (Senkou Span A) is calculated using the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) values and is then plotted 26 periods into the future and shows potential future support and resistance levels. The Leading Span B (Senkou Span B) is calculated using double of 26 so 52 periods and is then and is then plotted 26 periods into the future. This also shows potential future support and resistance levels. Note that: The Area ABOVE the cloud is called the BULLISH ZONE. The Area BELOW the cloud is called the BEARISH ZONE. The Area IN BETWEEN the Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) levels is called the EQUILIBRIUM ZONE. Note that the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) ARE NOT MOVING AVERAGES but are instead calculated high and low midpoints of the price. So the Conversion Line (Tenkan Sen) is high and low calculated midpoint for the last 9 Periods (short-term) and the Base Line (Kijun Sen) is high and low calculated midpoint for the last 26 Periods (mid-term). THE ADVANCED: Ichimoku Kinkō Hyō Target Price Theory with examples: How accurate is Goichi Hosoda’s Target Price Theory? Using the history of the DJI/USD chart….. it turns out the calculation are very accurate. Note that i have added in timespans from Hosoda’s numbers to see if there is a day of change on the Ichimoku numbers 9, 17, 26, 33, 42, 65, 76, 129 and 200~257. Note that you can be flexible with these numbers so if a day of change is 8 days instead of 9 or 77 days instead of 76 then that is fine with this system. Ichimoku System has 4 Price Target Calculations called V, N, E and NT. A few of these we will see below. As you’ll see below, the calculations do change if they are POSITIVE or NEGATIVE. If we look at the Positive N Calculation from the Monday 3rd August 1896 until Monday 6th sept 1897 we can see that it was spot on. N Calculation positive N = C + (B-A) = D (B) $32.55 - (A) $20.77 = $11.79 (C) $27.79 + (B-A) $11.78 = (D) $39.57 The actual price it went to was $40.41 If we look at the above Negative V Calculation from the Monday 29th Sept 1929 until Monday 5th sept 1931 we can see that again, the calculation was spot on. V Calculation Negative V = B - (C-B) = D (C) $302 - (B) $194 = $108 (B) $194 - (C-B) $108 = (D) $86 The actual price it went to was $85.76 and continued to $40.72 If we look at this Negative N Calculation from the Monday 9th November 1931 until Monday 30th May 1932 we can see that again, it was almost spot on. N Calculation Negative N = C - (A-B) = D (A) $118.86 - (B) $69.85 = $48.75 (C) $89.87 - (C-B) $48.75 = (D) $41.12 Actual = $43.52 and continued to $40.72 If we look at the Positive V Calculation from Monday 4th July 1932 until Monday 17th July 1933 we can see that again, it was almost spot on. V Calculation Positive V = B + (B-C) = D (B) $81.63 - (C) $48.81 = $32.82 (B) $81.63 + (C-B) $32.82 = (D) $114.45 Actual = $110.90 If we look at the Negative V Calculation from Monday 4th Nov 1940 until Monday 13th April 1942 we can see that again, it was almost spot on. V Calculation Negative V = B - (C-B) = D (C) $131 - (B) $114 = $17 (B) $114 - (C-B) $17 = (D) $97 Actual = $92.60 If we look at the Positive NT Calculation from Monday 23rd March 2020 until Monday 10th May 2021 we can see that again, it was spot on. NT Calculation Positive NT = C + (C-A) (C) $26,114 - (A) $18,217 = $7,897 (C) $26,114 + (C-A) $7,897 = $34,011 Actually price went up to $36,971 which was until Monday 3rd Jan 2022. If we look at the Negative V Calculation from Monday 12th Dec 2022 until Monday 13th March 2023 we can see that again, it was close but off from about $600 but still would’ve made a profit. V Calculation Negative V = B - (C-B) = D (C) $34,344 - (B) $32,582 = $1,762 (B) $32,582 - (C-B) $1,762 = (D) $30,820 Actual price went to = $31,428 I have done these examples on the 1 week chart but this system also work for lower timeframes. I could go through and add much more calculations but i think you get the point with just these few. I hope this post has been helpful and insightful. For those interested, below are 2 links to my previous post about Ichimoku Kinkō Hyō that you may find helpful. Ichimoku Wave Theory: Ichimoku Crypto:
TVC:DJIEducation
by TradingThroughTheLens
3
"Discipline and Patience: The Key to Profitable Forex Trading"Forex trading can be a profitable and exciting way to invest money, but it also requires discipline and patience to succeed. The key to becoming a successful forex trader is to only take the best setups and to stay disciplined in your trading approach. The first step to staying disciplined in your forex trading is to have a solid trading plan. A trading plan should include your trading strategy, risk management rules, and goals. It should also include a set of criteria for identifying the best trading setups. Once you have a trading plan in place, it's important to stick to it. This means only taking trades that meet your criteria and avoiding trades that don't. It can be tempting to take trades that don't meet your criteria, but this can lead to losses and can derail your overall trading strategy. Staying disciplined also means being patient. Forex trading can be a fast-paced environment, but successful traders know that it's important to wait for the right opportunities. This means waiting for the right setup to present itself before entering a trade. It can be frustrating to wait for a good opportunity, but taking trades that don't meet your criteria can be even more frustrating in the long run. Another important aspect of staying disciplined in forex trading is managing your emotions. It's easy to get caught up in the excitement of trading and to make impulsive decisions. Successful traders know how to keep their emotions in check and to make decisions based on their trading plan rather than their emotions. In conclusion, forex trading requires discipline and patience to be successful. By only taking the best setups and staying disciplined in your trading approach, you can increase your chances of becoming profitable. Remember to have a solid trading plan, stick to it, be patient, and manage your emotions. With these skills in place, you'll be on your way to becoming a successful forex trader.
UEducation
by glorias3972
"Forex vs. Indices: Which Market is the Right Fit for You?Forex and indices are two popular investment options for traders. While both markets have their own unique features and advantages, it can be difficult to determine which one is better. In this blog post, we'll take a closer look at forex and indices to help you make an informed decision. Forex, or foreign exchange, is the market where currencies are traded. It's the largest financial market in the world, with an average daily trading volume of over $5 trillion. Forex trading offers high liquidity, low transaction costs, and the ability to trade 24 hours a day, five days a week. This makes it an attractive option for traders looking for flexibility and diversity in their portfolios. On the other hand, indices are a measure of the performance of a group of stocks in a particular market. Indices are often used as a benchmark for the overall health of an economy or sector. Trading indices allows investors to diversify their portfolios across multiple companies and industries, reducing the risk of investing in individual stocks. One of the key differences between forex and indices is the level of volatility. Forex markets can be highly volatile, with exchange rates fluctuating rapidly in response to global events and economic data releases. This can make forex trading exciting and potentially lucrative, but it also increases the risk of losing money. Indices tend to be less volatile than forex, which can make them a more stable investment option. Another factor to consider is the level of knowledge required to trade in each market. Forex trading can be complex, with a steep learning curve. Traders need to understand technical analysis, economic indicators, and geopolitical events to make informed decisions. Trading indices, on the other hand, is often simpler, as investors can focus on the overall performance of the market rather than individual companies. In conclusion, there is no straightforward answer to the question of whether forex or indices is better. Both markets have their own advantages and disadvantages, and the best choice depends on your individual investment goals and risk tolerance. It's important to conduct thorough research and seek professional advice before making any investment decisions
Education
by glorias3972
Double Top/Bottom Pattern #️⃣OKXIDEAS!!!👨‍🏫Hello, everyone!👋 (Reading time less than 7 minutes⏰) . There are many opportunities in the market that traders can get at every single moment. Some like to step up little by little, and some like to climb the mountain as soon as possible. The financial market, such as crypto and forex, is the same. That’s why some patterns represent the consequence of being an overnight millionaire. In this article, I will discuss two resembling patterns and talk about how to trade with them. ------------------------------------------------------------------------------------------------------------------------------------------------ Double Top Pattern: Double Top Pattern is the name of a classic pattern that can bring lots of money for the ones who use it to trade in different financial markets, such as cryptocurrency and forex. It’s noted that this pattern is used in two-sided markets, and stock traders cannot use Double Top Pattern to enter but to exit. Double Top Pattern is one of the most common technical patterns that can be used to identify an asset's roof on the chart. Stay with me to learn how this pattern is drawn on the chart and how you can get dollars out of it in very simple words. As the name suggests, Double Top represents the highest point of an asset in the area, which is known as a sensitive resistance zone. Reversal patterns are one of the most important chart patterns. So is Double Top, which occurs at the end of an upward trend. That means Double Top is a bearish reversal pattern. As the name shows, this pattern forms from two consecutive rounding tops according to the standard. Here you can see what the Double Top Pattern looks like: In an uptrend, the price breaks through resistance levels one by one, as it rises. When the price reaches a vital resistance level stronger than the last support level, that resistance pushes the price down, and it breaks through the support level. Buyers know that the uptrend has ended, and the price will enter a bearish channel. The shape of this pattern is like the letter ‘M,’ which has caused many traders to name it the ‘ M pattern ,’ but I call it ‘ Double Top ’ or ‘ Twin Top .’ Here are some tips you have to know to reduce the mistakes you’ll probably face on the path: Double Top can be used in any time frame. In Double Top Pattern, the peaks are not exactly the same size or at the same price. You are about to ignore any slight differences between them. The distance from the neckline to the top should be 20 to 25%(often) of the size of the upward trend; otherwise, it’s not considered a reversal pattern. As you see in the picture, the price goes up for a while when the buyers struggle to push it up, but it cannot pass the neckline, so it’s rejected. This neckline touch is called “the last kiss,” which is one of the best short-entry positions. I recommend that a trader considers pullbacks as confirmations. But on the other hand, you’ll lose some profits because not all the time pullbacks are completed. So, stay with me to tell you how to trade using the Double Top Patten. How to trade on Double Top Pattern There are some general methods that you can trade on Double Top Pattern; here you go: 1. Breaking neckline The first strategy to trade using the Double Top Pattern is to take a short position when the neckline is correctly broken. 2. The price retracement to the neckline (pullback/last kiss) The second useful strategy is to wait for the price to pull back to the neckline and then open a short position. It’s noted that the neckline is now considered a resistance line. 3. Combination of the first and second methods To enter the short position transaction using the double top pattern, you can use a combination of the first and second methods. You can divide the amount of volume that you want to enter into a short position into equal amounts or amounts that are consistent with your capital management. Your first entry point can be when the price breaks the neckline in a valid way (better a bearish marubozu candle) / the second entry point can be when the price pulls back to the neckline / there is even a third point, a little below the level the valley where pullback began to form. You can use a combination of the entry points I mentioned to enter a short position. Does The Double Top Pattern Fail? To tell the truth, all patterns have the possibility to fail, and Double Top is no exception. Indeed, it’s no big deal, dude. A trader always finds a way to make enough profits. As I mentioned, the Double Top Pattern is a reversal. When the price goes above the top, the pattern fails and is unsuitable for trading. In this case, a buy signal can be considered. When the price passes the Double Top and goes up, a neckline is formed at the top, the line that connects the two tops on the above chart. The entry point is when the price returns to this upper neckline. The stop-loss will be below the last bottom, and the take-profit point will be as long as the distance from the upper neckline to the last bottom. Here is a secret I’ll tell you. Usually, after the failure of these reversal patterns, the upward trend continues with more strength, and you can make profits faster. As I said earlier, during an uptrend, the price reaches its resistance zone, but it’s unable to pass it. Here the uptrend stops and finally it starts to go down in the opposite direction. Now the buyers are pushing the price up to retest the resistance level, which is a hard shield to cross, and sellers are the winners in pushing the price to go down for the second time. This movement makes a pattern called “Double Top.” But the point is that the Double Top pattern can appear in four different types. Bearish reversal Adam and Eve Patterns; in descending order of power and efficiency: 1st.Eve & Eve Double Top (EEDT) 2nd.Adam & Adam Double Top (AADT) 3rd.Adam & Eve Double Top (AEDT) 4th.Eve & Adam Double Top (EADT) Eve & Eve Double Top (EEDT) Let’s see what the Eve-Eve pattern looks like. As you can guess, Eve-Eve consists of two round peaks. That is, both tops are similar to the upside-down letter U. Adam & Adam Double Top (AADT) In this type of pattern, you can see mountain-like price tops. That means the tops are similar to the upside-down of the letter V. In this type, one or two candles hit the resistance level. Adam & Eve Double Top (AEDT) In the case of Adam-Eve, the tip of the first top is sharp, and the second top is round and wide, which has a shape like an upside-down U. Eve & Adam Double Top (EADT) In this status, the first top is round, and the second top is pointed. Eve-Adam Double Top Pattern is exactly the opposite of the Adam-Eve one. ------------------------------------------------------------------------------------------------------------------------------------------------ Double Bottom Pattern: Reversal patterns are in the tops and bottoms. The Double Bottom Pattern is a bullish reversal pattern that forms at the end of a downtrend, and it looks like the letter “ W ” in English. So it’s a good place to get a long position. Unlike the Double Top pattern, buyers take control of the market so that when the price hits the support zone, it is pushed up again. This pattern is one the best patterns for stock market traders with daily and long-term trades. Double Bottom can be used in any time frame. In two-sided markets, after engulfing the neckline, the potency of buyers increases, and more buyers enter the market. Trading volume increases after breaking the neckline, so the price gradient steepens. Here you can see an image of the Double Bottom Pattern: How to trade on Double Bottom Pattern After the price breaks the neckline, entering a long position can be profitable. But the confirmation is really important to be seen. The bullish Marubozu candle is one useful candle for pattern confirmation. Dojis and short candles are not that strong to convince confirmation. So you are about to face a fake break which leads the price to fall more. Follow the steps below to make profits: Entry points are like a double-top pattern. Stop-loss is below the bottom. Take-profit point is the distance from the neckline to the bottom. Failed Double Bottom Pattern Never forget that the patterns can be failed in the market due to the news and fundamental source. A professional trader is always looking for a valid confirmation. When the price falls below two bottoms, the pattern fails. But you can earn money with the failed pattern too. When the price passes the bottoms and goes down, a neckline forms under the pattern. This line connects the two bottoms. Here I go with the failed Double Bottom Pattern: The entry point is when the price returns to the neckline. The stop-loss will be above the last top. The take-profit point will be the distance from the bottom neckline to the last top. Here is a picture of what a Failed Double Bottom Pattern looks like. Classical patterns are in different shapes that directly affect their performance. Various types of Double Bottom Patterns are made with the Adam and Eve patterns. These types of Double Bottom patterns are as follows:(in descending order of power and efficiency) 1st. Eve & Eve Double Bottom (EEDB) 2nd. Adam & Eve Double Bottom (AEDB) 3rd. Eve & Adam Double Bottom (EADB) 4th. Adam & Adam Double Bottom (AADB) ------------------------------------------------------------------------------------------------------------------------------------------------ 🔔 Conclusion Reversal patterns such as Double Top/Bottom can be really profitable, but the essential thing is to follow your strategy and capital management. I also suggest that you follow these educational series posts to get all you need about trading.
Education
by pejman_zwin
22
"Unlocking the Secrets of Technical Analysis: A Beginner's GuideTechnical analysis is a method of analyzing financial markets that involves studying historical price and volume data to identify patterns and trends. This approach is based on the idea that price movements are not completely random, and that patterns in the past can provide insight into future price movements. Technical analysts use charts and other tools to visualize price movements and identify patterns, such as trends, support and resistance levels, and chart patterns. They also use a variety of technical indicators, such as moving averages and relative strength index (RSI), to help them make trading decisions. One of the key principles of technical analysis is that price movements tend to follow trends. Traders use trend lines and moving averages to help identify the direction of a trend and potential areas of support and resistance. Another principle of technical analysis is that history tends to repeat itself. Technical analysts believe that certain chart patterns, such as head and shoulders or double tops, can indicate potential trend reversals or continuation. It's important to note that technical analysis is not a crystal ball that can predict future price movements with 100% accuracy. Rather, it is a tool that can help traders make informed decisions based on historical price data. As with any form of analysis, it's important to use multiple sources of information and exercise sound judgment when making trading decisions. In summary, technical analysis is a method of analyzing financial markets that involves studying historical price and volume data to identify patterns and trends. Technical analysts use charts, tools, and indicators to help them make trading decisions based on the belief that price movements are not completely random and that history tends to repeat itself.
UEducation
by glorias3972
Regulated vs Unregulated Brokers: Understanding the Differences When it comes to choosing a broker for trading, one of the most important factors to consider is whether the broker is regulated or unregulated. While both types of brokers can offer trading services, there are some significant differences between them that traders should be aware of. Regulated brokers are licensed and monitored by regulatory authorities, such as the Financial Conduct Authority (FCA) in the UK or the Securities and Exchange Commission (SEC) in the US. These authorities set strict rules and standards that brokers must follow to protect investors and maintain market integrity. For example, regulated brokers are required to segregate client funds from their own operating funds, provide regular reports on their financial health, and maintain a certain level of capitalization. Unregulated brokers, on the other hand, are not licensed or monitored by any regulatory authority. This means that they are not subject to the same rules and standards as regulated brokers, and may not provide the same level of protection for investors. Unregulated brokers may also be more susceptible to fraud and scams, as there is no external oversight to ensure that they are operating in a fair and transparent manner. There are some potential advantages to using an unregulated broker, such as lower fees or more flexible trading conditions. However, these benefits may come at a higher risk to the investor, as unregulated brokers may not provide the same level of security and protection as regulated brokers. In summary, choosing between a regulated and unregulated broker is an important decision for any trader. While unregulated brokers may offer some advantages, such as lower fees, they also come with a higher risk of fraud and scams. Regulated brokers, on the other hand, are subject to strict rules and standards that help to protect investors and maintain market integrity. As such, it is important to carefully consider the reputation and regulatory status of any broker before entrusting them with your investments.
NEducation
by glorias3972
Mastering the Mindset: How to Handle Losses in Trading accordingTrading in the Zone by Mark Douglas is a classic book on the psychology of trading. In it, Douglas explores the importance of mindset and discipline when it comes to handling losses in trading. Here are some ideas from the book that can help traders deal with losses: Accepting losses as part of the game: Douglas emphasizes the importance of accepting losses as a natural part of the trading process. Rather than trying to avoid losses altogether, he suggests that traders should learn to accept them as part of the game. By doing so, traders can avoid getting emotionally attached to their trades and make more rational decisions. Understanding the probabilities: According to Douglas, traders should understand that trading is a game of probabilities. Even the best traders will experience losses from time to time, and this is just part of the probabilities of the market. By focusing on making good trades based on a solid strategy, traders can minimize their losses and maximize their gains over the long run. Managing risk: Douglas stresses the importance of managing risk in trading. He suggests that traders should always have a plan for managing their risk, such as using stop-loss orders or limiting the size of their positions. By doing so, traders can minimize the impact of losses on their portfolio and avoid making emotional decisions. Staying disciplined: Douglas argues that discipline is crucial for successful trading. This means sticking to a trading plan, avoiding impulsive decisions, and staying focused on the long-term goals. By maintaining discipline, traders can avoid making emotional decisions based on fear or greed, which can lead to losses. In summary, Trading in the Zone provides valuable insights on how to handle losses in trading. By accepting losses as part of the game, understanding the probabilities, managing risk, and staying disciplined, traders can minimize the impact of losses and improve their overall performance over time.
GEducation
by glorias3972