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GOLD : How to trade with Rsi IndicatorOANDA:XAUUSD What Does RSI Mean? The relative strength index (RSI) measures the price momentum of a stock or other security. The basic idea behind the RSI is to measure how quickly traders are bidding the price of the security up or down. The RSI plots this result on a scale of 0 to 100. Readings below 30 generally indicate that the stock is oversold, while readings above 70 indicate that it is overbought. Traders will often place this RSI chart below the price chart for the security, so they can compare its recent momentum against its market price. How do you trade effectively with RSI? The common levels to pay attention to when trading with the RSI are 70 and 30. An RSI of over 70 is considered overbought. When it below 30 it is considered oversold. Trading based on RSI indicators is often the starting point when considering a trade, and many traders place alerts at the 70 and 30 marks. KEY TAKEAWAYS The relative strength index (RSI) is a popular momentum oscillator introduced in 1978. The RSI provides technical traders with signals about bullish and bearish price momentum, and it is often plotted beneath the graph of an asset’s price. An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. The RSI line crossing below the overbought line or above oversold line is often seen by traders as a signal to buy or sell. The RSI works best in trading ranges rather than trending markets.
OANDA:XAUUSDEducation
by INVESTRONE
GOLD : Whales Impact In trading MarketOANDA:XAUUSD A whale is any individual or company who has enough money and power To directly influence the price of a cryptocurrency or stock, usually in a negative way. Think of a whale and their large mass. Whales use artistically created buy walls and sell walls to manipulate traders by changing current market sentiment. Traders should be aware of large buy walls and sell walls that appear quickly. They could be part of a whale's manipulation strategy. How do you spot a whale trade? There are four primary ways to track whale activities, which include monitoring known whale addresses, order books, sudden changes in market capitalization and trades on crypto exchanges. Whales are held responsible for sudden price fluctuations in the crypto and traditional markets every so often.
OANDA:XAUUSDEducation
by INVESTRONE
From Zero to Hero: The Art of Finding Winning Crypto Projects!!!Hello there, fellow traders👨‍💻! As a trader, I know that choosing the right crypto project to invest in can feel like navigating a sea of uncertainty. But fear not mateys😎! Today, we will set sail on a journey to discover the best crypto projects.😉 I will examine critical factors to help identify the most promising crypto projects💡. But I won't be venturing blindly into the unknown. Oh no, I have a trusty checklist for each crypto project to guide us on our quest. I give a score from 1 to 10 for each factor. With this checklist in hand✅, we will be able to evaluate each crypto project based on essential factors(But I must say that the ✨ starred factors ✨ are more important in our checklist). So let's dive into the factors. Founders ✨: The founders' vision, expertise, reputation, leadership, and decision-making abilities are essential to a crypto project's success and sustainability. Project's Goal ✨: The project goal is a critical component of a crypto project that defines its purpose, attracts investors, guides development, and measures success. Source Code ✨: The importance of source code in a crypto project lies in its ability to determine its functionality, security, and transparency. Access to source code enables security experts and auditors to review the project's security measures, identify weaknesses, and recommend improvements. Open-source projects promote transparency and accountability, building trust among stakeholders. Also, new commits submitted to the project can be analyzed through the project's repository. Token Inflation Rate ✨: The importance of a crypto project's token inflation rate lies in its impact on the token's value, liquidity, and long-term sustainability. A high inflation rate can decrease the token's value and liquidity, while a low inflation rate can promote token scarcity and sustainability. White Paper Analysis ✨: The importance of a whitepaper in a crypto project lies in its ability to communicate the project's vision, value proposition, and technical specifications to investors. It is a marketing tool, technical specification document, project blueprint, and credibility establishment tool. Community ✨: This is a significant factor when analyzing a crypto project. Community in a crypto project provides the ability to support the project's growth, adoption, and sustainability. A strong community can promote adoption and awareness, provide feedback and insights, offer support and resources, and promote the project's values and mission. Tokenomics : Can determine the token's value, utility, and sustainability. Tokenomics can help balance token supply, demand, and circulation, design token utilities that incentivize user participation, and regulate token supply to promote. Developers : They play a crucial role in a crypto project, as they are responsible for designing, building, and maintaining the project's software and infrastructure. The importance of developers in a crypto project lies in their ability to ensure the project's functionality, security, and scalability. Developers are responsible for designing, building, and maintaining the project's software and infrastructure, promoting innovation and creativity, and promoting the project's vision and values. Venture Capital (VC) Investors : The importance of VC investors in a crypto project lies in their ability to provide the project with funding, expertise, and connections to help it grow and succeed. VC investors can help the project overcome challenges, expand its reach, and promote its legitimacy and credibility. Competitors : Comparing a crypto project to its competitors is essential to understand its strengths and weaknesses, assess its potential for growth and profitability, identify any potential risks, and evaluate the project's unique features. These factors are critical for making a well-informed investment decision in crypto. 👆According to the factors mentioned, getting lost in this sea is challenging.👆 With this map or lantern, you will find your way to the safe shore and the treasure.💎 Warren Buffett once said, "Risk comes from not knowing what you're doing." In today's ever-changing financial markets, staying informed and making well-informed investment decisions is more critical than ever. So hoist the anchor and embark on this exciting adventure together.✌🏻 With this checklist and knowledge, you'll be able to navigate the treacherous waters of the crypto market and find the projects that will lead you to the ultimate booty - success! 🙏🏻😍 Share your ideas with me💡, and if you have any questions❓, you can ask in the comments.💬 Learn and always stay updated📚. Don't forget to invest what you can afford to lose.💸 Discretion is the greater part of valor.🤗
Education
by pejman_zwin
10
What is Candlestick Pattern?Candlestick patterns are a charting technique used by traders to analyze the price movement of financial instruments. They originated in Japan in the 18th century and were used to track the price of rice. The technique was later adapted for trading other assets like stocks, currencies, commodities, and cryptocurrency. Candlestick patterns are an important tool used by traders and investors to analyze the price movement of financial assets. A candlestick is a visual representation of the price movement of an asset during a specific time period. Each candlestick represents the opening, closing, high, and low prices of the asset during the period. The shape and color of the candlestick provide important information about the price movement of the asset. Candlestick patterns are formed by the combination of one or more candlesticks, and they can indicate a potential trend reversal, continuation, or indecision in the market. Some candlestick patterns are based on just one candlestick, while others are based on combinations of two or more candlesticks. A bearish candle (red candle) represents a period of trading where the closing price is lower than the opening price. This indicates that sellers were able to push the price down, indicating a negative sentiment in the market. The bearish candle has a long body and a small lower wick, indicating that sellers were in control for most of the trading period. A bullish candle (green candle) represents a period of trading where the closing price is higher than the opening price. This indicates that buyers were able to push the price up, indicating a positive sentiment in the market. The bullish candle has a long body and a small upper wick, indicating that buyers were in control for most of the trading period. Both bullish and bearish candles can come in various sizes and shapes, indicating different levels of buying or selling pressure. For example, a long bullish candle with no or a very small upper shadow could indicate strong buying pressure, while a short bullish candle with a long upper wick could indicate weaker buying pressure. Different types of candlesticks Pattern: 1. Bullish Candlestick Pattern - Hammer - Inverse Hammer - Bullish Harami - Bullish Engulfing - Morning Star - Three white soldiers 2. Bearish Candlestick Pattern - Shooting star - Hanging man - Bearish Harami - Bearish Engulfing - Evening star - Three black crows Doji: Gravestone Doji Dragonfly Doji Long-legged Doji ( Spinning top ) In the upcoming post, we will elaborate on the various types of candlesticks and how to use them. Thanks Hexa
BITSTAMP:BTCUSDEducation
by HexaTrades
4
Stablecoins Depeg: Twist of Events, Banking CrisisHi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. In a twist of events, an incident that happened within the banking realm created chaos for the crypto realm. I bet you didn't have that on your bingo cards for 2023... In the past few weeks, there have been two significant bank failures in the United States that have sent shockwaves throughout the financial world. The collapse of Silicon Valley Bank and Silvergate Bank has sparked concerns about the stability of the banking system and the future of the crypto industry. The failure of these banks highlights the fragility of the financial system and the challenges faced by institutions that operate in high-risk sectors like tech and crypto. Silicon Valley Bank (SVB) was closed by the FDIC on March 9 due to its heavy losses caused by the downturn in technology stocks and the U.S. Federal Reserve's aggressive plan to increase interest rates. The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the US Congress in 1933 to maintain stability and public confidence in the nation's financial system. The FDIC provides deposit insurance that guarantees the safety of deposits in member banks, up to a certain limit. In the event that a member bank fails, the FDIC will step in to insure deposits, provide assistance to depositors, and liquidate the failed bank's assets. The FDIC also regulates and supervises member banks, as well as conducts research and analysis on the banking industry. Silicon Valley Bank bought bonds using customers' deposits, but the value of those investments fell as interest rates rose. This is usually not a problem for banks, but Silicon Valley Bank's customers were largely startups that needed cash. Venture capital funding was drying up, and companies were tapping their existing funds deposited with Silicon Valley Bank, which was at the center of the tech startup universe. In response to this liquidity crisis, SVB sold a $21bn bond portfolio at a loss of $1.8 billion . The bank attempted to fill the solvency hole with a combined equity offering of $2.25bn on March 8, but the attempt failed. This is the largest failure of a financial institution in the United States since Washington Mutual collapsed more than a decade ago. The closure of SVB had an immediate effect on some startups that had ties to the bank, as they scrambled to pay their workers and feared having to pause projects or lay off employees until they could access their funds. SVB, the 16th largest bank in the US, had assets of $209 billion, with more than 50% of its investments tied up in long-term securities, including exposure to the Silicon Valley tech and health startup world. The bank's sudden collapse has raised questions about its risk management practices, and the impact of its closure on its clients, who are largely startups and wealthy tech workers. The bank's large uninsured deposits and exposure to high-risk sectors like tech and crypto contributed to its downfall. But SVB isn't the only one... Silvergate Bank, which has been a significant player in the crypto world, has announced that it is closing and returning deposits. The bank's holding company, Silvergate Capital Corporation, stated that the decision was made "in light of recent industry and regulatory developments." The closure follows the loss of one billion dollars in a quarter after customers withdrew $8.1 billion, and a subsequent filing in March revealing even worse financials. The closure of Silvergate Bank is concerning for the crypto industry, as it may lead to companies turning to less regulated institutions for their banking needs, potentially making the space even riskier. Coinbase, Crypto.com, and Paxos have already started moving away from the bank. The collapse of the bank will likely draw scrutiny from lawmakers who are concerned about the crypto contagion affecting the traditional financial sector. The Silvergate Exchange Network, which allowed crypto exchanges like Coinbase, Gemini, and Kraken to move money between themselves and other institutions, has also been shut down. The bank's financial struggles have been ongoing for some time, with some of its high-profile clients like FTX and Genesis also experiencing challenges. Silvergate's collapse raises concerns about the future of the crypto industry, as companies may turn to less regulated institutions for their banking needs, potentially making the space even riskier for everyone involved. The bank's failure is also likely to draw scrutiny from lawmakers concerned about the potential contagion of the crypto industry on the traditional financial sector. Late Friday night Coinbase, a popular cryptocurrency exchange, announced that it would suspend conversions for the USDC stablecoin. This led to a rush of people trying to sell their USDC holdings, causing it to depeg from its value of $1 and trade as low as $0.87 before recovering to $0.92. Another stablecoin, Dai, also depegged and experienced a high volume of trading. Stablecoins are important in the cryptocurrency market as they provide a way for traders to move funds between different exchanges or cryptocurrencies without having to convert back to fiat currency. They are also used as a store of value by some cryptocurrency investors who prefer a more stable asset compared to the volatility of Bitcoin or other cryptocurrencies. If stablecoins depeg permanently, it could lead to a loss of confidence in their stability and reliability. This could potentially cause a sell-off of stablecoins and a shift towards other assets perceived as more stable, such as traditional fiat currencies. But before we panic too hard and FUD out, it's important to note that the impact of this crisis on cryptocurrencies such as alts and Bitcoin would depend on the severity and duration of the stablecoin depegging event, as well as other market factors such as investor sentiment and regulatory actions. In the past, there have been instances of stablecoins temporarily depegging from their underlying assets without significant impact on the broader cryptocurrency market. One notable example of a stablecoin depegging in the past is the case of Tether (USDT) in 2018. Tether is a stablecoin that is pegged to the value of the US dollar, with each USDT token representing one US dollar. In October 2018, Tether's price dropped below the $1 peg on several cryptocurrency exchanges, leading to concerns about the stability of the stablecoin. The depegging was attributed to a variety of factors, including regulatory pressures, concerns about Tether's reserves, and a general market downturn. The depegging led to a sell-off of Tether and a shift towards other stablecoins such as USD Coin (USDC) and TrueUSD (TUSD), which saw increased demand as traders and investors sought more reliable alternatives. Despite the depegging of Tether, the broader cryptocurrency market did not experience a significant impact, with Bitcoin and other cryptocurrencies largely unaffected. However, the incident highlighted the potential risks and uncertainties associated with stablecoins and their reliance on centralized institutions to maintain their pegs. In terms of price action for the immediate term, the Tether (USDT) depegging event in 2018 did have some impact on the cryptocurrency market prices, although the impact was relatively limited and short-lived. Following the depegging of USDT, there was a brief sell-off of Tether and a shift towards other stablecoins such as USD Coin (USDC) and TrueUSD (TUSD). This led to increased demand for these stablecoins, which helped to maintain their pegs to the US dollar. However, the broader cryptocurrency market, including Bitcoin, was largely unaffected by the Tether depegging. While there was some initial volatility and uncertainty, the market quickly stabilized and resumed its upward trend. 💭The collapse of Silicon Valley Bank is the second-largest bank default in U.S. history and puts the golden trifecta rule of banking (liquidity, solvency, and profitability) into review. This failure reminds us of the unintended consequences of unorthodox monetary policies, pandemic remediation measures, excessive leverage, and democracy eroding rulings. SVB had significant exposure to long-term securities and the Silicon Valley tech and health startup world. The bank's uninsured deposits pose a problem but insured deposits will be available as soon as Monday. The collapse of Silicon Valley Bank and Silvergate Bank underscores the need for stricter regulatory frameworks and tighter risk management practices in the financial industry. The failures also highlight the importance of diversification and risk mitigation strategies for banks and their clients. As the financial industry continues to evolve, it is essential that institutions keep pace with the changes and adapt their practices to ensure their stability and resilience in the face of future challenges. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
G
by CryptoCheck-
28
GOLD: 3 Reason's why To Invest in Trading education is importantOANDA:XAUUSD 1. Get a Mentor The best asset to your trading is having a knowledgeable mentor in your corner. Even the most well-written book or well-structured online trading course can only cover so many contingencies! When you run into a unique scenario and money -your money – is on the line, why gamble when you could ask someone more experience for help? A mentor can ensure that your trading practices get off on the right foot, as well. If you develop bad habits or emotional triggers early on in your trading career, it’s going to be that much harder to “shake” them later on. Remember: your mentor has likely had the same fears, the same apprehensions and the same mistakes under their belt – learn from their mistakes and the student might even surpass the teacher, in time. 2 Understand What You’re Doing We’re all guilty of coasting somewhere in life – getting the “gist” of something and just letting inertia carry you to a result. Trading, however, is not a High School literature test – it’s an important structure of rules, probabilities and information that could make you a lot of money. It’s not enough to know that cause A affects company B, you’ll need to know why that affect changes things in order to be a knowledgeable trader. Are industry trading magazines, blogs and corporate research efforts a little dry at times? They certainly can be. That doesn’t mean they aren’t important as part of a holistic trading approach. Taking online trading courses may come with an upfront cost, but what they offer in structure and support is priceless. In addition to the course materials, you’ll get access to a community of fellow traders, which will allow you to clarify ideas and discuss strategies with other traders at your level. When it comes to pre-made trading blueprints, following – not blindly following or copying, but keeping an eye on – certain systems will help keep concepts fresh in your mind and promote understanding. That brings us to our final point… 3 Forge Your Own Trading Path The beginning trader could throw a stone and hit a dozen sources that claim they’ve “cracked the code” for 100% successful trading. Not only is that statistically improbable, it’s made to appeal to lazy traders that aren’t willing to put in the work to succeed. No matter how “foolproof” a trading system seems, always filter it through your mentor and your own trading research to ensure it’s worth pursuing. An old saying also holds true, here: don’t count your chickens before they’re hatched. While it’s important to get comfortable with risk in trading, don’t bet the farm when you’re still learning the ropes. As you practice your trades and build confidence in your methods, success will follow naturally.
FX:XAUUSDEducation
by INVESTRONE
GOLD : Benefits of Investing in GoldOANDA:XAUUSD Gold has been an inconsistent inflation hedge, but there may still be benefits to holding a small amount of the yellow metal in your portfolio. Gold has historically had a low or even negative correlation to both stocks and bonds, suggesting it offers value as a tool of diversification. Gold prices held up pretty well during the Covid-19 pandemic market sell-off in early 2020, for example. From Feb. 1 to April 1 in 2020, the S&P 500 declined 23% while the price of gold dropped less than 0.1%. Demand for gold from investors, central banks, jewelers and tech companies is also growing. According to the World Gold Council, global gold demand increased 12% year over year to 2.189 tons in the first half of 2022. Depending on your individual goals, there are several easy ways to invest in gold. Investors can buy gold bullion, physical bars or coins that can be kept in a safe or bank. You can also buy physical gold exchange-traded funds (ETFs) that hold gold bullion on investors’ behalf. The most popular gold ETF is SPDR Gold Shares (GLD). Investors looking to speculate in the gold market can trade gold futures contracts. These contracts provide significant leverage, allowing investors to control large quantities of gold with a relatively small amount of money. Finally, investors can buy shares of individual gold stocks or a gold mining ETF. The VanEck Gold Miners ETF (GDX) holds a diversified basket of 54 gold-related stocks, including Newmont Corp. (NEM), Barrick Gold Corp. (GOLD) and Franco-Nevada Corp. (FNV). Conclusion : GOLD IS SAFE HEAVEN TO INVEST IN IT .
OANDA:XAUUSDEducation
by INVESTRONE
1
GOLD : What Drives the Price of Gold ?OANDA:XAUUSD Gold is highly sought after, not just for investment purposes and to make jewelry but also for use in the manufacturing of certain electronic and medical devices. As of February 2023, the price of gold was more than $1,870 an ounce. While down around $100 from a high posted in April 2022, it is still up considerably from levels under $100 seen 50 years ago. But what factors drive the price of this precious metal higher over time ? KEY TAKEAWAYS 1 Investors have long been enamored by gold, and the price of the metal has increased substantially over the past 50 years. 2 Not only does gold retain additional value, but supply and demand have a huge impact on the price of gold—especially demand from large ETFs. 3 Government vaults and central banks comprise one important source of demand for gold. 4 Gold sometimes moves opposite to the U.S. dollar because the metal is dollar-denominated, making it a hedge against inflation. 5 Supplies of gold are primarily driven by mining production. Conclusion : Gold Is a high Value Asset , Which Can be Hedge Against Growing Inflation.
OANDA:XAUUSDEducation
by INVESTRONE
💲Catch Profits in Channels💲Hello dear traders🙋🏻; I'm Pejman & this is the "How to get fish from channels" class. I guess you've heard, "Give a man a fish, and you feed him for a day🍣; teach a man to fish🎣, and you feed him for a lifetime." Like every other educational post, today I will teach you how to fish and make money from the Market River🏞️. As you know, fishing requires patience and practice, and you also have to take risks and throw bait into the water⛲. But today, together, we can use all kinds of price channels that are formed in this attractive river as a fishing net.🕸️ Our tool for fishing in the market river is technical analysis, which we discussed in previous posts. You can refer to this post and pick up your fishing rod. You must have noticed that in the financial markets, the prices have their patterns and trends, which help us to catch the best fish🐠. These patterns and specific price movements cause various trends in the market, which I explained in the market types post. Another feature of specific price patterns and trends is the creation of price channels. Of course, don't get me wrong, I don't mean TV channels📺. Although these channels are as attractive as sports channels and watching the Barcelona and Real Madrid games⚽🏟️, they have other features besides attractiveness✨. They help you to predict the area of price movement even for the future. But please don't confuse channels with a magic 8-ball🎱. Based on past trends, they can give you a sense of where the price may be headed👀. Trading without a price channel is like fishing without a net🕸️; you just guess.🤔 So, let's check the channels more closely and catch fish from them until the river is wavy.🌊 First, we need to know what the channel is.🤷🏻 Channels are like riverbanks that guide water flow, except, in this case, the channels guide the flow of candlesticks.🕯️ Price channels are made when the price is under the pressure of two ranges of supply and demand. A channel is a trading range between two trend lines in which the price of an asset moves in almost predictable directions💁🏻. A price channel is like a trend line with a friend; two are always better than one, right?🧑🏻‍🤝‍🧑🏻 They also say: "The trend is your friend, but the price channel is your guide🙏🏻." By drawing the channels, you can find the possible price path🛣️, and at the right time, your hook will be stuck on sweet and big dollars💰. Channels can be formed and used in any market with trending price changes, from stocks to forex and cryptocurrencies. Channels, like many other tools in this market, have different types. Put down your fishing rods and put on your swimsuits🩲👙; we have to dive into the next topic.🏊🏻‍♀️ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Dear students welcome to the types of channels class.🧑🏻‍🏫 The first lesson is ascending channels.⬆️ The ascending channel for the price is like a staircase to heaven! An ascending channel is the same as an upward trend line, with the difference that in addition to the aligned valleys🌄, the peaks⛰️ are also aligned and are formed parallel to the valleys. Both the peaks and valleys will be predictable.💁🏻 Of course, you cannot be sure what the next price move will be, but you can predict many possibilities.👀 Now that we climbed the stairs and got acquainted with the ascending channel, it is time to get acquainted with the descending channel⬇️ and do some skiing⛷️. They say: In the deepest water is the best fishing. So let's swim deeper and get to know the descending channel.🤿 The descending channel is like a waterfall, pulling down everything in its path. Candles are no exception, and when they are in a descending channel, they slide like fish🐠 in a waterfall and go lower and lower. Look for a series of Lower Highs(LH) and Lower Lows(LL) to identify descending channels. The difference between ascending and descending channels is similar to climbing🧗🏻 and skiing⛷️; Descending channels push the price down and cause lower peaks and valleys. If you were trading in one-sided markets and encountered a descending channel, my friend, just sell and run🏃🏻. But if you were in two-sided markets, you can enjoy taking short positions🔻 and fishing in this drop.🎣 The noteworthy point✨ is that the longer a channel is and the more times⏳ the price has hit any side of this channel, the more essential and reliable this channel becomes.✅ But what if the price is too tired to climb the stairs🔺😩 and not in a good mood to play on the slide🔻😒? In this case, it will be stuck between two✌🏻 horizontal trend lines and form a range or sideway channel. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Range channels are just like ponds. There is no exceptional water flow🌊 in a pond, and fish and other creatures can only Move inside this pond. But range channels could be more attractive and eye-catching, like ponds.🌟 Range channels make traders tired.🙍🏻 Because trading in these channels will be more difficult than in other channels, it is challenging to recognize price movements or profit from small price movements in range channels.🤷🏻 The range channel is not similar to the ascending or descending channel. Because as its name suggests, it does not have a particular trend at all and is trendless. When the price is in a channel range, the number of buyers🟢 and sellers🔴 is almost equal, and supply and demand are virtually identical. 🙅🏻Unlike ascending and descending channels, no peaks or valleys can be seen in a range channel higher or lower than its previous peaks or valleys. Range channel is created by considering two trend lines from one peak to another peak and from one valley to another valley. 👌🏻Actually, the difference between a range channel and other channels is that these peaks and valleys are equal and basically in the same direction. These channels may be permanent for river fishes🐟 and have become their home🏡, but there is no permanent channel or trend line for candles.😉 Remember that candles can leave their channel just like a bird🕊️ that jumps out of its cage or a prisoner escaping prison.🏃🏻 Do you remember in the previous posts when I talked about support and resistance lines, we said that candles could finally be released from their support or resistance prison? This case is the same.💁🏻✅ If you forget or don't know about support and resistance lines, take a breath and read this post before going to the next steps.👇🏻 The longer a channel is and the longer the price is locked in it🔒, the pressure of supply and demand on the price is more significant, and you will probably see a strong movement of the candles after the failure.💪🏻 But don't worry. You can still make money trading channels and even breakouts. In the following steps👣, I will teach you how to trade with all types of channels, as well as how to trade in breakouts.😉 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now you must have questions about how to draw channels.🤷🏻 Well, obviously, with a very sharp pencil✏️ and a steady hand✍🏻. Just kidding😅, you must first recognize the trend and look for regular price movements to draw channels. To catch a good fish, you must patiently monitor the price movements and look for peaks and valleys that move in the same direction.🕵🏻 You will find your channel by connecting these peaks and the valleys to each other. You need at least two✌🏻 parallel peaks and two valleys to draw a channel. But how do you know that a channel has been drawn correctly?🤔 Channels have conditions, my friend. I wrote these conditions, so pay attention when drawing the channel.😊 When you draw your channel, make sure that the upper and lower lines of the channel must be parallel. If the two channel lines are not parallel and are angled, this is a sign of your terrible drawing🤦🏻‍♀️. What kind of school🏫 did you go to where you can't draw two parallel lines?😐 I'm kidding😄, but if this happens, the pattern is no longer a trend channel but a triangle, which I discussed in previous posts. Channels and trend lines create patterns by forming different shapes, which I explained in the above post. I said the lines should be parallel but don't take a ruler📏 to measure each channel and trend line. There is nothing quite like books, my friend.😉 According to the definitions, don't expect to always find a channel 100%. In that case, you will lag behind the whole market.🙅🏻 But there is a tool with the help of which you can draw your channels correctly and lower your error percentage. ✅You can find this expression from the toolbar beside your TradingView charts. Who doesn't like to cheat sometimes? Look to the left of your charts and click on the second one from the top. New options are displayed; the fifth option from the bottom is the Parallel Channel. Select this tool and look at your chart. Use this tool wherever you can draw a channel. To draw ascending channels, you have to find two valleys with a peak between them and you can look for the second peak by drawing the parallel channel. And vice versa, to draw descending channels, you must look for two peaks with a valley between them. If you found two valleys and there were no peaks between them, something must be wrong & you should reconsider to find the right points. Finally, the task of the range channels is also straightforward🙂 When you start drawing, from peak to peak or valley to valley, the range channel will show itself, and it will not be different.😊 By default, parallel channels are also a middle line.👀 The middle line is like a negotiator between the other two lines. When the price moves from the upper band of a channel to the bottom, the middle line can mediate and supports the price.🟢 Or when the price moves from the lower band of a channel to the top, the middle line can prevent the price from moving further.🚫 Dear students🧑🏻‍🏫, now you have acquired the necessary skills, and it is time to take your sticks🪝 and come with me to the river. Before you trade and catch fish yourself, pay attention🙏🏻 to the positions I took with the help of channels to gain skills in this field because a poor worker blames his tools. There are ✌🏻two strategies for trading using channels, both of which I will teach you. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- For example, in an ascending channel, such as trading with a support line, you can buy🟢 when the price is on the lower line of the channel and wait for it to reach the upper line of the channel and exit the positioning 🔚. In previous articles, we talked about candlestick patterns. Using these patterns, you can get help to enter and exit your positions. You can place your stop loss below the bottom line of the channel. You must indeed lose a fly to catch a trout.🎣 But always remember to be careful.😉 They say to invest what you can afford to lose. But remember to manage your Risk-Ratio and only trade after practicing and testing your strategies several times.✅ Indeed, even if the channel is downward🔻, you should only trade in the direction of the trend; as soon as the price reaches the upper line or resistance line, enter the position and take your profit💲 when you get the lower line of the channel. Of course, if you are facing a range channel, your general strategy should be to buy at the bottom and sell at the top of the channel, and it's like eating a piece of cake.🍰👌🏻 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- When the price is stuck in a channel, is it like a prisoner who can't guess whether he will finally escape by digging a tunnel or climbing over the prison walls? It is impossible to know from which side the price will eventually break its channel.🤷🏻 It seems that channels usually break against the direction of their slope, but it is always possible for a channel to break on both sides.😉 If a channel is broken, the price usually starts a significant move in the same direction as the break.🏃🏻 Did I say that the more the price is locked in a channel, the stronger it will move?💪🏻 Usually, the price can move according to the width of its channel. When the price is stuck in a channel, is it like a prisoner who can't guess whether he will finally escape by digging a tunnel or climbing over the prison walls? It is impossible to know from which side the price will eventually break its channel.🤷🏻 It seems that channels usually break against the direction of their slope, but it is always possible for a channel to break on both sides.😉 If a channel is broken, the price usually starts a significant move in the same direction as the break.🏃🏻 Did I say that the more the price is locked in a channel, the stronger it will move?💪🏻 Usually, the price can move according to the width of its channel. You can even use both strategies to trade channels.👌🏻 For example, if the price is locked in this channel, trade in the direction of the channel trend. Breaking channels is like breaking trend lines or support & resistance, and it comes with a breakout candle🚩 and a confirmation candle✅. After the breakout, if you have an open position in the trend direction of the channel, you should close it.🙅🏻 After seeing the confirmation✅ of the breakout, enter the position according to your trading strategy and follow the risk management points. For example, I would have ✌🏻two entry points. And I place my stop loss slightly above the breakout candle🔴. My first point of entry is after seeing the confirmation candle. And if the price returns🔁 to its channel for the last kiss💋, I activate my second entry point. This will reduce my Risk-Ratio, and I will have a safer position. To know that your channels are ending🔚, you should look for signs of weakness in price movements; for example, in an ascending channel, breaking below the low trend line or failing to reach higher peaks are signs of weakness. It's like the price is taking a break before going higher again. The last thing I'd like to tell you is don't try to force a price on a channel when it doesn't exist. Remember, patience is vital, and it is better to lose a trade than accept a losing trade. As said: "Sometimes the best catches are found in still waters." 🎣 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Conclusion : Price channels are the rails that keep asset prices on track.🛤️ Just like fishing in a river, trading requires patience, skill, and an understanding of your environment. Check and avoid being affected by market fluctuations.🙅🏻 Now you can take your fishing rod🎣. Whether you are fishing in a bullish, bearish, or range market, the right approach and tools can help you make big profits.😉💲 Remember that profit and loss are together. Profits are never permanent and remember that a bad day at fishing is better than a good day at work. Am I right?😊 For you to have more good trading days than bad days, remember that it's okay to make mistakes when drawing🖌️ those price channels. You can make up for all your mistakes by practicing and finding the right strategy. Warren Buffett says: The best investment you can make is your abilities.💪🏻 Feel free to experiment and try new strategies.✨ Don't be like a fish out of water; use the channels for swimming🏊🏻‍♀️ towards the market river. Remember what Jesse Livermore said: "Price channels are like guardrails on the highway🚧 - they keep you from going off track and help you stay on track." This post is over, but the road to the technical analysis journey is not over🧳✈️. In the following posts, I will accompany you step by step👣 and teach you other tools. Be healthy🙏🏻, profitable💲, and successful!✌🏻 Ask your questions in the comments💬 and share your opinions with me😍.
Education
by pejman_zwin
86
Bull and Bear Traps!!!👨‍🏫Hello, dear traders🙋🏻; I am Pejman, and welcome to TradingView Tunes📺. As a lover of classic cartoons, I would like to explain Bull and Bear Trap using the Road Runner and Coyote cartoons😍. If you've never seen this cartoon👀, let me tell you, it's a masterpiece of trapping and pranking. But what does it have to do with financial markets🤷🏻❓ Believe it or not, there are some striking similarities between the traps Coyote🐺 sets for Road Runner🐦 and the traps that exist in financial markets💲. The market traps are known as bull🐮 and bear🐻 traps, and they can lead to significant losses if investors aren't careful.🙍🏻 For example, the Coyote paints🖌️ the road to drag the Road Runner to a suitable place and traps him with stones🪨 and TNT💣. Or he is trying to surprise the bird with TNT & cactus🌵, in another way.🤭 Large financial institutions and market makers, or whales🐋, try to deceive amateur traders in the financial markets. Like coyotes, they try to trap inexperienced people by creating fake buy🟢 and sell🔴 signals. To trade with these traps, you should know technical analysis to neutralize the coyote traps of the market like Road Runner.😉 In the financial markets, we have two types of fraudsters. Bulls are the ones who buy and cause prices to rise☝🏻, and on the contrary, bears are the ones who sell and make prices fall👇🏻. Simple enough, right😊❓ However, I explained more about bulls and bears in the market types post👀. You can refer to this post to better understand the rest of the article.👇🏻😉 Every hunter needs prey. For example, we said that the Coyote used to paint the roads. Exactly bulls, by pumping up the price and bears by a sharp drop in the price, fool the inexperienced people. Also, all these events are short-term. Like Road Runner, you have to pay close attention to the market⚠️. In this post, I will teach you how to turn threats into opportunities and profit from them.✅ The first step is to identify these traps. Our first trip today is the bull trap. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Bull Trap: Let's start with the Bull Trap🏁. This is when the market looks like it's on the up-and-up⬆️, so you start throwing money around like a looney tune💸. But just like Coyote's contraptions, the market can suddenly backfire and leave you feeling like you just got hit with an anvil💥. It's enough to make you want to go "meep meep" all the way home☹️🏠. Be like Road Runner and stay alert, or you'll end up with a crate of dynamite💣 strapped to your back. That's a bull trap in a nutshell. A bull trap is when the market appears to increase, so investors jump in, hoping to make a profit. But then, the market suddenly drops, and those investors are left holding the bag👜. They thought they were getting ahead of the game but were just falling into a trap.🪤 You may be fooled by the chart and expect the price to pump up, but in reality, the price will start to fall or act like a reversal pattern.↩️ At this time, those who traded without stop loss🚫 will lose the most. It would help if you watched out for these traps in any type, whether up, down, or sideways (range market). The price must be below a resistance zone for a bull trap to form a reversal pattern. A bull trap can change an uptrend to a downtrend after creating classic reversal patterns such as double tops, heads & shoulders, diamonds, etc.😉 If you want to know the patterns and learn classic patterns with a quick review⏩, you can get help from the following post. Now that you know this trap, we can talk about ways to recognize and deal with this trap. How to recognize the Bull Trap🔎 Sir John Templeton says: The four most dangerous words in investing are: "This time it's different."🤔 We may have said these words and confused real traps with fake traps. But how can you prevent this mistake?🤷🏻 Do you remember that we talked about fake and valid breakouts in the Support and Resistance post?💭 You can also read the link below for a background on this topic. Let's go back to our topic. To ensure that the breakout is valid, we should look for two confirmation signs✅️: 1. Increase in Trading Volume 2. Bullish candlestick patterns Now let's go through each one in detail because the devil👹 is in the details 😂. Increase in Trading Volume For the breakout to be valid, the volume📶 of the broken candle must be significantly higher than the previous candles. But more is needed because coyotes are clever and intelligent. Even after the breakout, the trading volume for the other candles should remain high to ensure the failure is real. In a bull trap, the volume of the fake breakout candles either does not increase or only slightly. If you see that the trend has lost momentum after breaking out or has no strong momentum to continue or start the trend, this is precisely the trail of coyotes in the market. Along with market volume, considering candlesticks and their patterns can be equally helpful as they clearly show market movement. You can take a look at the following post to learn about these candlestick patterns and review them. For example, by seeing bullish candlestick patterns, you can understand that a breakout is not fake. Bullish Candlestick Patterns: If the breakout candle is a giant momentum candle, it's called a Marubozu , which is not difficult to find on the chart. This candle has a green and long body, and its wick is tiny compared to its body, or it does not have a wick at all. This candle is associated with a high trading volume, and it shows that TNT is not working in this upward trend, and real buyers are in the market. Also, the pattern of the 👩‍🚀👩‍🚀👨‍🚀 Three White Soldiers 👩‍🚀👨‍🚀👩‍🚀 is a reversal pattern that can be seen as a continuation pattern in the charts. Along with all these signs, you should always keep the market trend in mind. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Bear Trap: Next up is the Bear Trap. This is when the market looks like it's going to crash💥 and burn🔥, so you start selling your assets like there's no tomorrow. But just like Coyote's rockets, the market can suddenly bounce back and leave you feeling like you just got flattened by an Acme anvil. Don't panic! Be like Road Runner and stay calm, or you'll fall off a cliff. Bear traps are similar to bull traps. Young and inexperienced bears🐻 are caught in these traps. When the young bears think the market is going down, these traps are activated, and the hunters place heavy buy orders. At this moment, this heavy order will cause the price to turn upward, and anyone who has a short position without a stop loss will lose their money💸. A trap is a trap, and it doesn't matter if it is a bear or a bull🐮. Here we use the duplicate confirmations we used in bull traps, like a steady increase in trading volume and continuation candlestick patterns. When a support zone is broken, hunters prepare to set traps. If the bearish momentum candle is not accompanied by increased trading volume, this can be a sign of a trap. The ⚫️⚫️⚫️ Three Black Crow ⚫️⚫️⚫️ candlestick pattern is usually a reversal pattern but sometimes acts as a continuation pattern. If a high trading volume accompanies this pattern, it can be a valid sign of a breakout. Now I will tell you how to use these traps (Bull&Bear) and get profit from them like a professional trader. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- How to trade with a Bull Trap The bull traps start with an uptrend. As you can see the picture has a resistance zone, and the price may test a zone several times before passing it. When a fake breakout occurs, it may initially be accompanied by an increase in trading volume, but it is entirely temporary, and you will notice a decrease⤵️ in the intensity of the trend from the next candles. When the intensity of the trend decreases, market coyotes activate their traps. And they set sell orders, and the bloody🩸 candles appear on the chart. With a valid breakout of the last support, the price reaches our entry point station⛽️. You can place your stop loss a little higher than the top of the bull trap and place your stop loss🚫 above the breakout candlestick of the support zone, considering the higher Risk-Reward ratio. To find the take profit💰 point, consider the difference between the peak trap and the support zone as X, and Viola, now expects X amount to profit from your entry point. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- How to trade with a Bear Trap Now it's time for the second trap. After occurring a valid support zone breakout and an increase in price, you must wait for the price to break through the last resistance zone after a sudden sharp move. When you can use the signs⚠️, you are sure that the coyotes have abandoned the process, that there is no trap🪤, and that real failure has happened; you can open your long positions. Now, this passed resistance zone has turned into support, and you can wait for the price to test this area several times for more confidence and then open your entry point. Like trading in bull traps, in bear traps, you can place your stop loss a little below the valley of the bear trap. Considering the higher Risk-Reward ratio, you can also put it below the breakout candle of the resistance zone. The take-profit point is the same as the bull trap, but vice versa. Consider X from the lowest price in the bear trap and the resistance zone. Now, as much as X, we can expect that the upward trend will continue and precious dollars will rain on our heads. Now that you have learned about the bull trap🪤 in an uptrend and the bear trap in a downtrend↘️, you should remember that the market is not always up🔺️ and down🔻, and the road runner should also expect traps on the range roads. You should be aware of bull/bear traps in the range market. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Range Market When the price gets stuck between the support and resistance zones, the range market is created, and the coyotes also look for inexperienced road runners in this market. This is a sad story for new traders who rush into positions when they see the resistance or support zone break. Price fluctuations in range markets are minor; trading in a range market is much more complex than in bull and bear markets. So I suggest you spend more time on your trading strategies and test them several times. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Conclusion: Even in life, some coyotes seek to trick you by creating fake situations. But you have to be careful and smart like Road Runner. Sir John Templeton believes that: "Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria." And also, David Dreman says: "Bear markets are like avalanches: they start slowly and accelerate gradually before gaining momentum and becoming a force of nature🏞." In the financial markets, bulls and bears are constantly fighting each other, but the real winners are always those who use various tools and indicators to avoid risk and find safe spots for trading and profit. Once you practice and familiarize your eyes with all kinds of trends and traps, you will become a road runner in the market. So, if you want to be like the clever road runner and avoid falling into the bull and bear traps in the financial markets, stay alert, stay informed, and be prepared to adapt your investment💰 strategy when necessary. In future posts, we will take new steps in technical analysis and travel to the world of classic patterns. So follow the future posts and share your opinions and ideas in the comments. Your comments🎓 are precious to me. Also, if you have friends👬👭 who are into classic cartoons🎆 and trading, send them this post.
Education
by pejman_zwin
10
CHFJPY - 240 MINS MY VIEWThe 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
Short
by Tradelikemee
As Above So Below - the harmony of the market In this real world, there is various philosophy that tries to explain the "As above, so below" harmony is the great law of nature but none can prove this law hence it's still a hypothesis. The law of nature works on everything and the stock market is not untouched by nature. I am not here to give a lecture on this law of nature but to prove how this harmony of nature is preserved in the stock market and to share my research work on 'Stock-et' science which is equally difficult as 'Rocket' science. Many of you have heard of these famous patterns:- -> 'Head and Shoulder' -> 'Cup and Handle' -> 'Rounding Top/Bottom' -> 'Flag/Pennant' -> 'Double Top/Bottom' Do you all observe some correlation among them? They all are candlestick patterns that either decide reversal or continuation, if this was your observation then probably you are correct but I wasn't indicating this. Let me explain to you what kind of relationship I was talking about. How do we estimate the target of these patterns? To the target level, we first measure the depth of the pattern i.e. how deep it's below the breakout level. As its depth is below so will the height above. Now, I think you all can draw how this law of nature is respected here in the candlestick pattern or more precisely in the stock market. Let’s have an example to be more sound:- The above chart describes how BTC fell after the breakdown following this law of nature. It fell non-stop without showing any jerk until it attained the same depth as its height or say it fell until the script attained the equilibrium. This proves how the market preserves "As above, so below" harmony, the great law of nature. Still not convinced then look to another example, This is the vice-versa of the previously explained example, here index attains the height as the depth of the cup - i.e. ' equilibrium' after giving a breakout. This proves how the market preserves "As below, so above" harmony, the great law of nature. Now let's look at this concept with different dimensions i.e. dimensions of mathematics, physics, and chemistry. Don’t be afraid I'm not going to talk about 'Rocket' science but 'Stock-et' science. -> In math, we all have read negative and positive cancels out i.e. (-3+3=0) same in candlestick patterns if the stock has a pattern depth of then the pattern target would be +30% to attain '0' or say 'equilibrium'. -> In physics, we all have read that negative charges neutralize the positive charge to attain 'equilibrium' same in the stock market. -> In chemistry, we all have read that all chemical changes occur in nature to attain 'equilibrium' i.e. two elements share their electrons to attain 'stability' ( H2O, here two hydrogen molecules share their 1 electron with 6 electrons of oxygen to attain equilibrium) this same happens in markets all market movements occur to attain 'stability'. You all can use this law to get the target after the breakout or breakdown cause the pattern name matters less. Generally, people have fantasies about 'Rocket' science but we traders have fantasies about 'Stock-et' science. Please drop comments on whether you have a fantasy for any of the above science. Also, let me know how many of you believe that the stock market doesn't work on speculation but has its science let's call it 'Stock-et' science.
TVC:DJIEducation
by Chaser30
4