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HOW TO TRADE PULLBACKSHello everyone! Today I want to discuss pullback trading with you. You may have come across such a situation when you were waiting for a pullback to enter the market, but the price did not stop and went further. In the place where you expected the end of the rollback, there was a breakdown, and you did not receive an entry point. Something went wrong? Trend Trend is our friend! The most famous and most important rule. At the beginning of any market analysis there must be a trend definition. If you want to trade pullbacks correctly, you must determine the direction of the trend. If you are trading on the hourly chart, you must determine the direction of the trend on the daily chart and wait for the right situation on your chart, while trading, of course, with the trend. There must be a trend in the market in order to trade on a pullback. Trend types Trends are different, of different strengths. They can be divided into three types: 1. When the price bounces off the 20MA and stays higher, we say the market is in a STRONG TREND. 2. The price bounces and stays above the 50MA - GENERAL TREND. 3. The price reaches and bounces from the 200MA - WEAK TREND. Knowing these types of trend and being able to understand the movement will help us enter the market at the right point. Point of entry The entry points will be the areas around the MA lines. Here it is worth focusing on the word REGION. You must understand that the price can go below or above the MA and only then turn around, be prepared for this. Entry on a strong trend In a strong trend, the price stays above the 20MA. At the same time, you need to remember that with a strong trend, rollbacks are not deep. This means that finding the entry point will not be so easy. But you can open a position after the breakdown of the last maximum. Entry on a regular trend In a normal trend, the price makes deeper pullbacks. The price is testing the 50MA, while the previous resistance may become support. These are the moments we are looking for to enter. In such zones, we will wait for a price reversal candlestick pattern to enter. Entry on a weak trend In a weak trend, pullbacks are even deeper than in a normal trend. The price makes a strong pullback, reaching 200MA. When the price of the zone is reached, we are waiting for confirmation - a candlestick formation. Closing positions Closing a position is just as important as opening it. The main signals for closing will be the price movement beyond the MA line. For example, in a market with a strong trend, the price may go a little lower than 20MA, which is not critical yet, but it makes you be more careful. It is worth paying attention to the support level, which should not be broken by the price, but if the price still breaks through the level, then the position must be closed. With a weak trend, it is worth remembering that pullbacks can be deeper and the price will go beyond 50MA. You must be prepared for this. Watch for a support level that should not be broken. With a weak trend, holding a position is the most difficult. The price will make strong pullbacks, which will eventually force you to close the trade. Sometimes the price, having reached the desired zone, does not bounce right away. Consolidation begins and if you see such a situation, the best entry option would be to exit the consolidation zone. You must have a plan for every occasion. conclusions Trading with the trend is the most profitable business. You must be able to identify the trend on the higher timeframe and, importantly, be able to wait for the right situation on your timeframe. The market cannot be predicted with 100% certainty, so use stops and keep an eye on support and resistance levels. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
9
CONQUER YOUR EMOTIONSHello everyone Today I want to talk about a very important topic in trading – emotions. Emotions accompany us in trading from beginning to end: when we open a position, while we hold and when we close. Our psychological state is constantly being tested. All this leads to constant mistakes and loss of money. But how to avoid all this? The main reason Think about what is the main reason for your emotional swings? It may seem strange, but the main reason for emotional mistakes is the continuous observation of the price chart. You constantly look at the chart, watch every tick, the price changes its direction every second, you overwork and begin to doubt the correctness of your forecast. At the same time, it is worth recalling that people like to watch: movies, magazines, books. We are constantly looking at something and looking for something new. Forex is interesting because there is money there. When a position is open, traders are happy to follow every price movement. And when the position is not open, what do you do? That's right, you don't look, because looking at the market is just so boring. If the position is open, it is difficult to resist and not look at the chart. What is the reason for the shaky psychological state of the trader? Your drug Constant monitoring of the price leads to addiction. You get tired, the exhausting observation of how profit comes and goes, leads to big mistakes. Continuous emotional roller coasters kill the desire to trade in us and at some point, on a subconscious level, you want to lose everything just to get away from the monitor. Familiar? How to overcome emotions? There are many different ways, today we will look at three that will help you avoid emotional overload. 1. Use a higher timeframe If you trade on minute charts and experience problems with emotions and fatigue, you should switch to an older timeframe. If you start trading, for example, on a daily chart, there will be no need to look at the chart every minute, because the price does not move so fast. The daily or 4-hour schedule does not change so often and it will be enough for you to look at the chart once or twice a day. Thus, you will remove from the equation the constant monitoring of the schedule, which leads to fatigue. You will have fewer mistakes, which means more profit. 2. Daily goals A great way to reduce emotional pressure is to set goals. The point is that you set yourself a certain profit and loss goal every day, and when you reach one of the indicators, trading for you stops today. You can set yourself a profit and loss goal, for example, of 50 points. As soon as you earn or lose 50 points, you go to rest until the next day. This is a great way, and it will definitely help to avoid over-trading. But not everyone can force themselves to leave, especially after losing money. Follow the strategy, otherwise you will be pursued by losses. 3. Lot reduction For many, this method may seem strange. After all, everyone thinks only about profit and how to get it quickly. The market is a dangerous place and there is no need to hurry here. Reduce the position by 5 times and you will see the difference in your trading. You will stop making mistakes, you will follow the strategy. But why? The problem is that when trading large lots, the trader thinks only about money, forgets about risks and rules. This is how the trader drains the account. When trading small volumes, your brain will be free from thoughts of quick profit. YOU will become more reasonable and attentive. Results Emotions will not go away and the market will always test you. Strong emotional swings make you make mistakes and lose money. Use the methods listed above and control over emotions will come, the results will improve. May peace come with you! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
22
SECRETS OF PROFITABLE DAY TRADING. №2. Continuation of the first part. SECRET 6 - High Time Frames Watch the situation on high timeframes. Watch out for high time frame trends. Often, this is how beginners open positions against the trend, do not follow higher timeframes. At the same time, there are situations when a correction has begun on a smaller timeframe, which is not yet visible on a higher timeframe. Such situations can be traded, but you should be very careful. SECRET 7 - Daily drawdown You should limit your losses per day. Choose for yourself a suitable value for losses and profits, upon reaching which, you will stop trading that day. If you decide that your daily drawdown is $100, this means that if you get a loss of $100, you will stop trading that day and do not make stupid trades in the hope of winning back. Hope for wagering - always leads to the drain of deposits from beginners. Control emotions and losses. SECRET 8 - Trading Sessions A day trader wants to make a quick profit and get out of the market, so it's important to keep an eye on the trading sessions and know when the market is most active. The European session, intersecting with the American one, creates the most volatile time on the market. At this time, the market moves faster, which will give you the opportunity to earn quickly. But do not forget about the risks, such volatility can bring losses just as quickly. It is worth remembering that the end of the Asian session and the beginning of the European one is a great time for reversal setups. SECRET 9 - Daily Volatility Each pair has its own daily volatility. And, if you know this value, it will be easier for you to understand when the movement potential is likely to be exhausted. These values ​​can be found on the Internet for each pair. SECRET 10 - Carrying positions through the night Very often, beginners make this mistake - they transfer positions to the next day. Do not forget that you opened on an intraday setup, that is, this setup most likely will not work the very next day. Tomorrow, and maybe even at night, the market will behave differently, go against you and reach your stop. Don't go against your strategy, follow its rules. conclusions Day trading is not easy, but it can be learned. In addition, it is very profitable. Good for overclocking a small account. But don't forget the rules. Don't go against the market, follow the strategy. Good luck!
Education
by DeGRAM
2
DEFINE YOUR LEVELHello to all! Let's talk about what levels of becoming a trader are. LEVEL #1: Unconscious Incompetence When a beginner enters the forex market for the first time, he thinks that it will be easy to make money. He has heard many beautiful stories and is now ready for you to go into battle. The price is going up! So it's time to buy. These first steps of an incompetent trader lead to disaster: usually a loss of the deposit. It can only be worse if the trader manages to earn something and starts to think that he understands the market. Over time, these traders lose everything. After a series of mistakes and losses, comes the realization of one's incompetence and the desire to become better. LEVEL #2: Conscious Incompetence At this level, the trader realizes that he lacks knowledge and the trader begins to study and seek… A trader looks for the Grail, buys "super profitable" indicators, learns trading methods and changes them every week without understanding. A trader experiments with indicators, Fibonacci lines, each new figure of technical analysis seems to be the one that will lead to success. The trader is looking for a bottom, an ideal entry point in the market and loses money again. This level can last for several months or even years. The trader will study, search, be disappointed every day. It is at this stage that most of the players leave, who do not believe that it is possible to make money on the market. LEVEL #3: “Eureka!” At the end of the second level, the trader begins to understand that it is not a matter of strategy, but of psychology. The trader begins to realize his mistakes and realize that he was succumbing to emotions that were blinding. The trader begins to study books on psychology and find his mistakes on the pages. At some point comes the realization that the future movement of the market is impossible to predict. The trader chooses a strategy that suits him and determines the risks for himself, trading becomes easier. Negative transactions do not upset, because the trader understands that the strategy works and sooner or later the trader will take his toll, you just need to act according to the strategy. A trader has learned to manage risk and learn the discipline to follow a strategy clearly. LEVEL #4: Conscious Competence A trader opens trades when the system gives a signal. A trader easily closes losing positions when he realizes that the market is moving against him. The trader allows profitable trades to grow, and cuts unprofitable trades. Most likely at this stage, the trader will trade at zero, learn not to lose money, understand how the market works. Losses do not bother, but the trader allows profits to grow, and this can continue for about a year. LEVEL #5: Unconscious Competence Trading is easy and unconscious. The trader, as if on autopilot, opens and closes transactions and does not feel emotional swings. The trader mastered his emotions. 100 pips of profit don't turn the trader's head like before. Trading becomes work. The trader does not stop developing and analyzes each trade in order to improve the system. And the trader likes all this, because it is still a very exciting journey, which now brings money to life. Conclusion Trading is not easy, but it can be learned. It should be understood that the main enemy in the market is your emotions. Do not lose control over yourself, study, analyze, follow the strategy and then you will succeed. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
22
SECRETS OF PROFITABLE DAY TRADING. №1. Hello everyone! Today we will discuss a very important topic - intraday trading . Intraday trading is considered not an easy task, but quite profitable. There are a few secrets that every trader should know about. These secrets will greatly improve your trading and relieve you of unnecessary stress. SECRET 1 - Don't trade below H1 During the day, the trader uses setups that will often give false signals on small timeframes, which will make trading nervous and unprofitable. On H1 timeframes and above, setups are processed much better and there will not be as many false signals as on small timeframes. The higher the timeframe, the stronger the setups formed on it. SECRET 2 - Don't make too many trades Even if you think that intraday trading involves a large number of transactions, this does not mean that you need to open transactions often. Each trade should be entered after the setup signal , don't open trades just because you feel like it. Look for clear signals, like in the books. Wait, don't rush. SECRET 3 - Number of tools Day trading involves many quick decisions from the trader. If you follow 30 pairs at once, you will not be able to clearly analyze the market and will not be able to make the right decisions. There are enough deals inside the day, so keep an eye on 3 pairs , no more. For beginners and it will be a lot, start with one pair and as you get better, add more charts. Don't make it difficult for yourself, it's not easy. SECRET 4 - Risks The old risk rule still works and works well. Do not risk more than 1% of your capital on each trade. This rule applies most to beginners. Experienced traders can deviate from this rule and risk a little more. But this applies to experienced traders and even they should not risk 50% of the capital. It's too much. SECRET 5 - News News has always influenced and will influence the market. If the news is not so scary for high timeframes, then for smaller ones it can become a big loss. Do not trade half an hour before the release of important news. This is a dangerous time when the market can go either way very quickly, stopping your position. Don't take risks. Good luck! End of the first part.
Education
by DeGRAM
15
MARKET MAKER MANIPULATIONHello everyone! Today I want to discuss with you a very interesting topic - the traps of market makers. Let's get started. Traps… How often did you encounter this - you opened a position, and why did the price go sharply against you, knocking out your stop loss, and as soon as your position was closed with a loss, the price turned around again and went where you expected? You analyzed your trades and did not understand what you did wrong. Actually, it's not your fault. You just fell into the trap of a market maker. These traps are created by large players in order to collect the stops of small market participants, thereby creating liquidity for opening or closing their large positions. What do traps look like? As a rule, traps are false level breakouts. It is in these places that small players place their stop orders and this will be the main goal of a large player. The first trap pattern is the classic Double Top pattern. Everyone knows from books that the second peak should be slightly lower than the first. So the market tells us that the price no longer has the strength to make new highs and it's time to fall. In fact, above the first peak, most traders place their stop losses, and large players push the price to them in order to activate orders and gain liquidity, after which the market reverses. The second trap situation is the trend. The trend is our friend! Everyone remembers and knows this. In addition, everyone remembers that the trend changes when the price, in a bear market, renews the previous high. After the new high, we believe that the trend has changed, but the price suddenly falls even lower and the downtrend resumes again, what happened? The big player knows that traders put their stop losses above the last high and that is why the price pushes higher, so liquidity gathers, after which the bear market continues. How to trade? We cannot find out the thoughts and desires of major players. The average trader should analyze the chart and try to act in the direction the market maker is pushing the price. Pay attention to false breakouts - these are strong signals. Seeing that the price has updated the maximum, and then turned around sharply, go short, so you will trade in the same direction with a major player. Also, remember that traps are usually characterized by candles with long tails. A long shadow will be a false breakout. Conclusions Trading traps is very difficult and at the beginning of the path you will fail. Study the market, try to understand how a big player thinks. When you learn, this strategy will bring you big profits. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
16
BEST CROSS CURRENCY PAIR EUR/GBPNow the dollar is going through a turbulent time, and EURGBP will help us avoid problems related to the dollar, because the pair does not contain the main world currency. In addition, after Brexit, new interesting opportunities have opened up, which I will discuss below. Dollar Most traders choose to trade pairs in which there is a dollar due to the large liquidity. Liquidity is a trap for a trader, especially intraday traders, but beginners do not understand this. This liquidity is created by large players whose goal is to collect your stops and manipulate the market. Such a market is very difficult to predict and very often your positions will be closed by the stop. The only way out of this unfavorable situation is to trade cross-pairs. Cross-currency pairs There are 8 recognized major currencies of developed countries with stable economies. The fact that these currency pairs can interact with each other without the mediation of the dollar makes them so attractive and resistant to external news and stuffing from the United States. Cross-pairs, unlike dollar currency instruments, have the following advantages: A more unambiguous reaction to economic indicators; Limited (half-day) volatile trading period; The opportunity to calmly move positions through the night, as pairs react poorly to news from the United States; EURGBP Cross-pair The EURGBP cross-pair ranks first among the crosses in terms of transaction volumes. The EU and the UK are connected to each other geographically and politically, until 2020 it was a single union. In 2016, British citizens voted for the option of Britain exit, giving the world a new word "Brexit". After Brexit, the pair began to grow, giving a good opportunity for earnings. In addition, the EURGBP pair always reacts to problems in the global economy in the same way - with the growth of the euro, for the simple reason that the economy of the Union is larger than the economy of the island UK. The economic crises of the XXI century have raised the exchange rate of the pair to the same levels, which allows you to build countertrend strategies, as well as to fix profits in the interim. Best trading time The most active time of EURGBP trading is from 7 to 16 in London. A unique feature of EURGBP is a decrease in trading activity during the American session, which is explained by the absence of USD in the instrument. The day trader can afford not to sit waiting for the release of the Fed minutes and not to increase the stop loss before the publication of the NFP. How exactly to trade and what strategies to apply? The pair is characterized by a lower percentage of knocked-out stops, since the price does not make unexpected jumps, unlike the dollar. Thanks to this, you can trade using classic trend strategies. As a rule, the movement is most often unidirectional. That is, having opened positions in the right direction, you can safely keep it until the evening or put a take profit. The tactics of late entry, at about 10 o'clock in London, will help to weed out false breakouts. Daily trends after Brexit After Brexit, the pair gives very clear and understandable trends. You can even use a simple moving average to open good deals. The graph is literally "like in textbooks". It is unknown how long such a picture will last. Conclusion Cross-pairs are special currencies that can give a trader a number of advantages over other instruments. This situation arises because crosses are not interesting to large players, market makers work out technical trading on them without mega-fluctuations in liquidity and "hunting for stops". In general, EURGBP is a calm pair, suitable for beginners and still providing opportunities for trend trading on D1.
Education
by DeGRAM
5
STOP LOSS > TAKE PROFITHello everybody! Today I want to discuss with you a question concerning risk management – Is it possible to set a stop loss more than a take profit? History says… Historically, traders have a rule according to which a stop loss should not be more than a take profit. There is a logic in this, if you receive more losses than profits, sooner or later your account will disappear. But time goes by and the market is changing and already today it correctly seems not so ideal. Every trader should understand that after a large number of trades, the expectation should be positive. The expectation formula is as follows: (Average profit value * ratio of profitable positions) – (average loss value * ratio of unprofitable positions) - transaction costs. In order not to bother with calculations, traders have created a table that simply and clearly shows what a positive expectation is. According to the table, if only 20% of the total number of your trades are profitable, then the RISK ratio is/The PROFIT should be 5:1 and higher. If there are 50% profitable trades, then the ratio may be 2:1, and if there are 60% profitable trades, then the stop loss may be even greater than the take profit. Therefore, the main rule that a trader should follow is that the smaller the take profit, the higher the win rate should be. The difference in the markets It is worth remembering that 80% of the books where these tips on the ratio of risk to profit come from are written about the stock market, which is more inclined to rise than to fall. On the other hand, currency pairs tend to average. This is the main difference: in the forex market, if the stop is large, you can sit out the fluctuations, if the take is large– you can not wait for it to work out. You need to understand when and where to use large take profit and stop loss based on the strategy and the market. And not because you multiplied the stop loss by 10. Conclusions The conclusion may be unexpected for you, but the profit/risk ratio is not an unbreakable rule. Always adhere to the rule of positive expectation. Set a stop loss and take profit based on the strategy and the market in which you are trading.
Education
by Lingrid
13
TRIPLE TOPHello everyone Today I want to share with you a figure of technical analysis called the TRIPLE TOP. This figure occurs quite often and brings excellent profit. What does it look like? The figure looks like three maxima, approximately at the same level. These peaks are formed because the buyers' forces are drying up and with each new peak, the bears are getting stronger. Very often, the third peak will be higher than the previous two - this is the last gasp of buyers, before capitulation. How to trade? The main criterion is the formation of three peaks, after a strong uptrend. After that, the price makes the last spurt (the third peak) and breaks through the support. This breakout is the first possible entry point . Often you will observe how the price makes a retest of the level, after which it turns down. The second possible entry point will be this retest of the level. To calculate the potential profit point , you need to measure the height from the minimum to the maximum of the vertices. This value, plotted below the breakout, will be a potential profit point. The stop loss is set above the maximum of the vertices. Conclusion The figure is very profitable and often found. In addition, you can find a triple bottom on the chart, which trades in the same way as a triple top, only in the opposite direction. Very often, after a triple top, a strong downtrend begins and holding a part of the position can bring big profits. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
16
Bullish trend phases1) Use higher timeframes to determine the trend. Look for the entry point on smaller timeframes. 3) "Zone shift" is a price movement designed to accumulate and preserve volumes. In this phase, it is worth looking for entry points. 4) "Stop hunting" usually consists of three movements that occur in a short time. The minimum of the day serves as a signal point about where the reversal will occur. 2) The second zone shift serves as a profit-taking point. 5) The penetration of each accumulation zone is a potential entry point. 6) "Market maker spread" - the maximum and minimum of the initial channel. Usually this value is 25-50 points. ------------------------- Additionally: The time of termination of consolidation depends on the volume of HOD/LOD captured during the hunt. It's hard to determine. We don't know how long it will take a major player to take a position, and we don't know how much volume he needs. A) From time to time, the movement will be without consolidation, since the accumulated volume is too large, so a V-shaped bottom may form. B) The accumulation of volume always takes different time, so sometimes it will take more time to accumulate than usual. C) Accumulation may take longer, which is why a wide zone is formed, after which movement to the second stop (accumulation zone) will begin
Education
by DeGRAM
3
FLAG and PENNANTHello everyone! I want to tell you a little about such figures as Flag and Pennant. These patterns are quite common on the chart, so every trader should know how to trade them. What does the flag look like? After a strong movement (flagpole), the price begins to correct in the form of a rectangle, which corrects against the previous trend (flag). What does a pennant look like? Just like a flag, a pennant appears after a strong trend. After that, the correction begins in the form of a narrowing triangle. How to trade the flag? A bullish flag is a flag that has formed after a strong upward movement. The entry point for a bullish flag will be a breakout and anchoring the resistance of the rectangle (flag). The stop is placed at the low of the flag. To calculate a possible profit target, it is worth measuring the flagpole of the flag - this value superimposed above the breakout will be the target for your profit. How to trade a pennant? A bullish pennant forms after a strong bullish move. To find an entry point, you need to wait until the resistance of the triangle is broken and the price fixes above the level. Stop loss is usually placed below the nearest minimum. To get an approximate profit target, you need to measure the length of the bullish move in front of the triangle - this value will be your target above the break. Conclusion These patterns are very common and give an excellent risk / reward ratio, usually greater than 1: 3. With correct trading, the profit value will be even higher. Do not forget that these shapes are continuation shapes. And don't forget to set your stop loss. Good luck to you! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
14
HEAD AND SHOULDERSThere is probably no more famous figure than the HEAD AND SHOULDERS. Head and shoulders - gives a very profitable signal about the market reversal. Thanks to this figure, you will be able to open a position at the beginning of a new trend. What does it look like? The appearance of the Head and shoulders figure consists of five stages: 1. Uptrend; 2. Left shoulder; 3. Head; 4. Right shoulder; 5. Neck line. First, we need to find an uptrend on which the left shoulder will form. After that, the price makes the last rise, forming a head, after which the fall begins. The right shoulder appears on a downward movement, and the neck line can be drawn after the formation of the right shoulder. How to trade? The entry point is the breaking of the neck line. It is at this moment that the signal of the figure is confirmed. Some traders are in a hurry and open positions at the peak of the right shoulder, which is very dangerous. Always wait for the confirmation of the figure. Don't worry if you missed the first entry point, there is always an opportunity to open a position after the neck line retest. What about setting a stop loss? Stop loss is usually placed above the right shoulder. If the price went above the right shoulder, then the figure did not work, and it's time to exit the deal. Where will the profit target be? To calculate possible targets, the following method is used. It is necessary to measure the distance from the neck line to the maximum of the head, the resulting value is imposed below the penetration of the neck line, after the right shoulder, this will be your goal. Conclusions The Head and shoulders figure can bring you a lot of profit when trading correctly. It is worth noting that there is an inverted head and shoulders figure - and this figure signals a reversal and the imminent beginning of a bullish trend. The rules of trading are the same as when trading Head and shoulders, but only in a different direction. Trade using not only your shoulders, but also your head ! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
18
Ascending & Descending Triangle Triangles are very often found on the chart, but not everyone knows how to trade them. Today we will try to learn how to trade triangles correctly. What does it look like? The ascending and descending triangle have two sides: one side is flat and horizontal, the second is inclined and moves towards the first. The ascending triangle has an upper flat horizontal side, and the lower one is inclined. When you see this figure, you have to wait for a bullish movement. The descending triangle is a mirror image of the ascending triangle. With a descending triangle, there is a flat lower line and an upper inclined one, which moves in the direction of a flat one. If you see this pattern, expect a bearish breakout. Opening a position There are three techniques for opening a position: 1. Stop order at the level. 2. Fixing the level. 3. Retest of the triangle trend line. Each method is good in its own way, but the logic is the same everywhere – a breakthrough of a flat line and further movement towards a breakthrough. Therefore, if the price starts moving against the breakout, most likely the figure did not work, and in order not to lose money in such situations, set a stop loss. Stop Loss You need to set a stop loss in a place where it will be clear for sure that the figure did not work. Usually this point is located behind the inclined line of the triangle. Profit taking There are two ways to fix profits: 1. Trailing stop. 2. Graphical projection of the price. The trailing stop is set according to your trading strategy and there shouldn't be many questions if you have a strategy. It is easy to calculate the fixation point from the graphical projection: it is enough to measure the width of the base of the triangle and put the resulting value below the punched flat line – this will be your goal. Conclusion These figures are quite common, so it is important to know how to trade them. Do not forget that nothing works in the market 100% of the time, so set a stop loss. Good luck!!
Education
by DeGRAM
8
PATTERNS "BAT" and "CAT".Strange as it may seem, but not only bulls and bears can be found on the market, but also a couple of cats and even a bat! But don't be afraid, these animals have come to help you get rich in the new year. Let's go! The Bat pattern. The bat is a 5-point pattern that can indicate a bullish or bearish breakout. What does it look like? The pattern consists of five points: X is the beginning, from this point the price makes a significant movement; A - here the price unfolds, forming the first vertex; B is a pullback, which can be from 38% to 50% of the X – A movement. C is the price movement, which can range from 38% to 88% of the A – B movement. It is worth noting that C should not go above the point A. D is the price reversal, after movement C. The shortest movement of all other points. At this point we are looking for an entry into the transaction, you can use the Fibonacci lines. The movement from point D can be 88% of the movement of X-A, and can go above point A. Risks The stop loss can be set below the D point, but not below the X point. The CAT JUMP pattern. This pattern is characterized by a strong downward movement and, with proper trading, can bring huge profits. How to find it? The pattern appears in situations of strong movement, usually caused by bad news. The following pattern will be observed on the graph: 1. A sharp drop in price, sometimes with a gap; 2. Rollback to the bottom line of the gap; 3. After which there is a long and strong fall. How to trade? To begin with, you need to find a strong drop with a gap, as correctly accompanied by a strong volume. After that, we are waiting for a pullback to the bottom line of the gap and a reversal – this is where you can enter into a deal. Risks The stop loss is placed above the lower gap line. It is worth noting that from time to time the price may go above the lower gap line. In rare cases, the price reaches the upper level of the gap, and then falls. It is important to note that the fall lasts from one month or more, which is why this pattern is used by long-term traders. Important It is worth recalling that there are alternative patterns: an INVERTED CAT JUMP and a BEARISH BAT PATTERN. Both models work the same way, only in the opposite direction. These figures are very profitable, with proper trading. For example, a fall after a gap and a rollback can be 50% or even 70%, in the CAT JUMP pattern. Whatever pattern you trade, I wish you good luck and a lot of profit in the new year! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
10
HOW TO TRADE A BREAKDOWNHello everyone. Today we will discuss a very important topic - trading after the breakdown of the level. As it turned out, not everyone knows how to trade correctly in such market situations, so let's start learning. Trend Trend is our friend! Everyone knows this expression, but do not forget that the trend will end sooner or later and the price will go in a different direction. Such situations can potentially be very profitable for a trader. Breakouts happen not only during a trend, but also in accumulation zones. Identification To find an opportunity to trade a level breakdown, you need at least two conditions: 1. There must be a trend or an accumulation zone. 2. You need to wait for the breakdown of the level. How to trade? There are a couple of principles of proper breakdown trading. First, we find a trend movement (or accumulation zone), draw a support/resistance line and wait for the moment when the price breaks through this line. However, one breakthrough is not enough. There are many situations in the market when the price makes a false breakout, so you need to wait for confirmation. After the breakdown of the level, the price should close below the level - this means that the balance of forces has changed in the market, the trend has dried up and now the bears are pushing the market. And only after that we have to wait for the most important condition - repeated testing of the level. Very often, beginners are in a hurry, without waiting for the level to be retested, which leads to large losses. After the breakdown, the price should return to the level again – this is the bulls again trying to rule the market, trying to bring the price back over the level. But the forces are no longer enough and the price, after repeated testing, turns around and follows a bearish scenario. It is after the reversal that it is worth opening a position, since it signals the weakness of the bulls, the market is no longer able to move up. It is worth noting that the price may not always return to the level of the broken level. From time to time, you will observe how a small incoming movement is made in the direction of the level, but there is not enough strength, after which the price reverses without retest. Conclusion This topic is very important, this pattern is very profitable, but without patience and proper entry, you can incur losses. Do not forget to put a stop loss, which is best set above the level. All these rules also work for breaking the bearish trend, only in the opposite direction. Trade wisely, good luck to everyone! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
25
PRINCIPLES OF TRADING FIGURES CUP WITH HANDLEOne of the most popular figures of technical analysis among day traders is a cup with a handle. This figure is so popular due to its fairly clear and specific rules, in addition, the figure gives an excellent risk/profit ratio. How to identify the model? The formation of the model is divided into 4 stages: 1. The price has been rising for some time; 2. After the correction begins to about half of the previous growth – this is how the bottom of the cup is formed; 3. Then the price starts to rise to the previous maximum and turns down, failing to break through the resistance – this is the handle; 4. Then the price goes to break the maximum again, after which it goes even higher, approximately to the height of the cup depth. How long does the model take to form? A cup with a handle is formed from a few weeks to six months – that is why it is suitable for a long-term trader. It is very important to form a handle, which should be completed within a month, otherwise it may mean that the upward movement is weak and there may not be a breakdown. Characteristics of the cup and handle A round cup indicates consolidation, whereas a V-shaped cup indicates a too sharp reversal, which is not good. The depth of the cup should be equal to one-third to one-half of the previous upward growth. The handle should not fall more than one-third of the cup gain. In addition, a short and weak drop in the handle signals that a breakout may be very bullish. How to trade? Entrance The best entry point is the handle. At the moment, the price is falling and forming a downtrend, the trader should enter the transaction when the price breaks through this downtrend. Profit goals To determine the goal, you need to measure the distance from the bottom of the cup to the beginning of the handle – this distance is above the breakdown of the maximum and will be our goal. In addition to the main method of determining the goal, you can use Fibonacci lines – the 100 percent line is considered a conservative goal, and the 162 percent is considered an aggressive one. Stop Loss No matter how well the figure is formed, do not forget about the risks and the fact that the price can turn against you at any moment. Set the stop loss is set below the minimum of the handle, then you will protect yourself from large losses. Conclusions This figure is not in vain so popular, it is very profitable and has clear rules, which makes it easier to work. Be patient, because the figure is formed for several weeks, or even months. Do not go too early, without waiting for the formation of the cup and handle. Premature entry promises losses. Who knows how to wait - gets everything! Good luck!
Education
by DeGRAM
35
BEST REVERSAL PATTERNSDuring the existence of the market, a large number of technical analysis figures have been found. They all work with varying degrees of accuracy. Such a large number of patterns can confuse anyone, especially a beginner. Today we will look at just two models that are quite common and, with proper trading, can bring you big profits. Both models are united by one idea – breakouts. Beginning. First, the price goes down, creating new lows below the previous ones and new highs below the previous ones. At some point, the sellers' strength ends and the market turns around almost immediately, or it stops before accelerating upwards. For profitable trading, a trader must learn to catch this moment when the strength of the trend is extinguished and the price is preparing for a reversal. Confirmation. Stopping the previous trend is not a reason to enter a trade, you need to wait for confirmation. Confirmation will be a new maximum, higher than the previous one, after which the price will try to start moving down again, making a pullback down, but there will not be enough forces for further fall and the price goes up. The entry point will be the moment when the price returns to the breakout line, bounces off it and goes up. Stop loss. Very often, such formations will give you a lot of movement and big profits. But do not forget about the stop loss, which can be set below the breakout line (risky, since there may be an earlier close) or below the previous minimum. You can find a lot of trading opportunities on the market every day, but beginners are advised to study a couple of patterns and learn how to trade them correctly. Take your time and luck will definitely find you! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
12
BIG SHORT STRUCTUREToday we will consider a frequently occurring formation that can bring you big profits. Beginning It all starts after breaking through the resistance line of the lateral movement. Lateral movement is nothing but the accumulation of force for subsequent takeoff. Upward movement After the breakdown, the price goes up, creating new highs, correcting from time to time. All this continues until the last peak is formed – the head. Head The head is characterized by a large price rise in the beginning, after which there is a sharp drop. The fall is characterized by large volumes that grow until the breakdown of the left shoulder line. Right shoulder. After that, the formation of the right shoulder begins. In this situation, the price may break through the line of the 50-day moving average several times. The ray point of entry. After several breakthroughs of the moving average, the price will make a dash down. The ideal entry point will be the last breakout of the moving average. It is very difficult to determine and enter the position at the ideal point, so you can try to enter after breaking the neck line or a little higher. Conclusion Such situations are common in all markets, giving a huge opportunity to make a profit if everything is done correctly. Sometimes the price can fall even below the sideways movement that started it all. Don't forget about the risks, good luck! ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
NSE:NIFTYEducation
by DeGRAM
3