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Education post 9/100 – How to trade double top pattern?The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly one of my go-to methods of identifying a potential top. Just as the name implies, this price action pattern involves the formation of two highs at a critical resistance level. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. However, as simple as that may sound, there are a few critical things that must be present for this topping pattern to be useful (and profitable). By the time you finish with this lesson, you will know exactly how to identify a double top as well as how to enter and exit the pattern to maximize profits.
Education
by GroundStoneHoldings
Three things Mark Douglas taught me. (Pt2) Risk & Money Management Risk management, in my opinion, is equal in importance to psychology because it allows your trading strategy/edge to play out by keeping you in the market equity wise. There really isn’t much to risk management other than its number one rule, never risk more than 1% per trade. Risking one percent per trade allows your trading system to take losses and have drawdowns but not enough to the point that you won’t be able to get out of it. I’m actually not a big fan of risk so I place trades using less than 1% of my capital. A lot of traders would think risking .75% per trade based off of my trading strategy is ludicrous but to me, it makes a lot of sense. As a trend follower, I take multiple small losses and few big winners that make double, triple, or quadruple, the loss. Trend following is very difficult because of the multiple small losses but definitely pays off because it lets your winners run. Big winners and small losses are definitely a trader’s best friend because it allows you to have a high risk reward ratio. If you risk $1 per trade, your goal is to make at least $4 back. If you constantly trade looking for 4x your risk all you need to do is win more than 20% of the time to be profitable. (Ex: Win 1 trade=$4 Lose 4=$4=0) .To be profitable you have to win more than 1/5 trades or 20%. With that being said, risk management gets even better when you use money management. As you can tell from the title, money management and risk management are two different things in my opinion. This wasn’t always true though. The old me would've said risk management and money management are the same exact thing but now that I know what I know now, I completely disagree. Money management to me is where you spread your risk to give yourself an even bigger edge. To illustrate, let’s look at the example shown here. According to my trading strategy my risk would be .75% of my equity on this trade but I would "spread the .75%" by taking it and dividing it into six trades instead of placing it on one. Let’s say I have $1000 in my trading account with .75% of $1k being $7.5. I would take the $7.5 and divide it into six or $1.25 per trade. My trading system would've told me to take buy limit trades at 1.66308 and 1.66815 at .005 lots (possible through Oanda) at 25 pips stop loss. Unfortunately the trades would’ve been a loss of $2.50 total or -.25% but because I'm spreading the risk I would still be able to enter four more trades. The remaining four would be a buy stop at 1.6654, 1.67068, and two at 1.67980 in anticipation of price closing at 1.68300 for us to take profit. If we were to follow our trading plan and disregarded negative psychological energy, our end profit would be as follows: -$1.25, -$1.25, +8.73, $5.90= Total profit $12.13 or 1.2% gain.
Education
by ElieTheForexTraitor
5
Three things Mark Douglas taught me. (Pt1)Psychology Psychology, like anything in life, plays a big role on how humans function. It affects the way we think, act, talk, and so on but when it comes to trading it affects us, oddly enough, in only one way and that’s through our emotions. Any experienced (or shall I say inexperienced) trader knows and understands the waves of overwhelming emotions that resonates based off of a trade that’s a loser. These emotions range from sadness, depression, anger, and the list goes on. The reason for this, if I’m not mistaken, is because of the pure fact that the money we use to trade with is hard earned and even when it’s not it’s something that rightfully belongs to us. Human nature is something that’s extremely difficult to change because it's part of our genetic make-up that has allowed us to stay for so long by encouraging us to stay away from things that we don’t understand or that will hurt us. Trading psychology is definitely the hardest thing to master when it comes to trading because your psyche works against you when you're being hurt mentally (losing trades) and works for you when you're euphoric (winning trades). As if this couldn’t get any worse, a hurting mentality will tap you into a pool of past failures or misfortunes that have happened to you in life and convince you to think you're not any good as a trader and that your strategy is useless. This baffled me when I learned this from Mark Douglas because it wasn’t something that I realized. This fact is very important because it means you and only you alone are able to break this cycle of assuming a bad trade means a bad setup. A losing trade has absolutely no correlation to you as a person so you shouldn’t assume that you're the reason why you have a losing trade. According to Mark Douglas, it only takes one person around the world to negate your edge. This basically means that when you're buying, someone around the world is selling. When there are more bears (sellers) than buyers (bulls) you're long trade is no longer able to be profitable and stops you out depending on your risk. The markets are full of newcomers and unprofitable traders that agree on the wrong thing together and thus makes the impossible or improbable possible. This gets even more tricky because it makes you, the person on the other side of the trade, feel unsuccessful. This is not true! A losing trade does not represent a bad setup but because our phycology wants to protect us from losing money (what hurts us) it tricks us into thinking that we are unsuccessful as traders. The solution to this is to simply accept the risk of the trade by trading a strategy or setup that is profitable through backtesting. Mr Douglas implored that back testing should be done through 20 trade sample size to give accurate results. When I first started trading back in late 2016 I would always hear profitable traders talk about trading psychology and not trading strategies. I never knew why until I tool Mark Douglas’ principals into consideration and for that I am grateful. (see pt2)
Education
by ElieTheForexTraitor
"BULL FLAG"Hello! I start my EDUCATION Lessons with a "Bull Flag" chart pattern! A flag pattern is a trend continuation pattern, appropriately named after it’s visual similarity to a flag on a flagpole. A “flag” is composed of an explosive strong price move that forms the flagpole, followed by an orderly and diagonally symmetrical pullback, which forms the flag. When the trendline resistance on the flag breaks, it triggers the next leg of the trend move and the stock proceeds ahead. What separates the flag from a typical breakout or breakdown is the pole formation representing almost a vertical and parabolic initial price move. Flag patterns can be bullish or bearish . This pattern starts with a strong almost vertical price spike that takes the short-sellers completely off-guard as they cover in a frenzy as more buyers come in off the fence (Flagpole). Eventually, the price peaks and forms an orderly pullback where the highs and lows are literally parallel to each other, forming a tilted rectangle . Upper and lower trendlines are plotted to reflect the parallel diagonal nature. The breakout forms when the upper resistance trend line breaks again as prices surge back towards the high of the formation and explode through to trigger another breakout and uptrend move. The sharper the spike on the flagpole, the more powerful the bull flag can be. Additionally, this consolidation will retrace a small portion of the previous uptrend. If the retracement becomes deeper than 50%, it may not be a flag pattern . Ideally, we’ll see the retracement be less than 38%. Since this is a continuation pattern, we look for prices to break higher with a length equal to the size of the flagpole. The tighter the flag - the more powerful it is! Don't forget to SHARE this, hit the LIKE and the FOLLOW button if you feel this topic deserves it! That's the best way to support me and help to push this analysis to other users. Best regards!
Education
by VaidoVeek
7
The "Scalping Pro" strategy Shows the price reversal point BTCHi Friends ! I decided to show how my strategy works on large timeframes and crypto-pairs . Quite well shows the turning point of the price, you can make both short and long transactions . The strategy consists of three indicators. ""Scalping Pro 1,2,3" can be run on the free version of the site . below are screenshots with more detailed recommendations . Entry point. false signal as to act. Anyone interested in my strategies, write me a private message, I will tell you how to get a strategy " Scalping Pro" I also conduct training and advice on trading .
BITFINEX:BTCUSDEducation
by Andreev_Mikhail
4
Strategy for Binary options and Forex 70-80% of positive tradesScalping strategy working timeframe not lower 5M (15M,30M) gives 20-25 signals per working day on average. is in currency pairs EUR-USD , GBP-USD , USD-JPY ,EUR-NZD, BTC-USD . and other currency pairs Expiration time 5 min (1 candle) in more detail in the description of the script. Wishing to test strategy write in personal messages. below is an example for 5m Statistics for the week 58+ 18- =40+ profit. 26.03 27.03 28.03 29 03 30.03
Education
by Andreev_Mikhail
2
Working strategy for Binary options.Forex . statistics for weekScalping strategy working timeframe 5M gives 20-25 signals per working day on average. is in currency pairs EUR-USD, GBP-USD , USD-JPY , BTC-USD . and other currency pairs Expiration time 5 min (1 candle) in more detail in the description of the script. Wishing to test strategy write in personal messages. below is an example for 5m Statistics for the week 58+ 18- =40+ profit. 26.03 27.03 28.03 29 03 30.03
Education
by Andreev_Mikhail
1
Top 5 Risk Management RulesTop 5 Risk Management Rules: 1. Only Trade with Risk Capital -Risk Capital is the amount of money you are willing to lose and do not include your living capital into your trading account! 2. 2% Risk Management -The 2% Rule prohibits you from risking more than 2% of your account equity on each trade you are entering. 3. 6% Risk Management -The 6% Rule prohibits you from opening any new trades when your current open risks in your open trades reach 6% of your account equity. 4. 10% Risk Management -The 10% Rule prohibits you from opening any new trades for the rest of the month when the sum of your losses for the current month and the risks in open trades reach 10% of your account equity. 5. Risk to Reward Ratio -Only take the trades which provide you at least 1:2 Risk to Reward Ratio
AMEX:SPYEducation
by YongLiang
Top 10 Trading Psychology RulesTop 10 Trading Psychology Rules: 1. Plan the Trade & Trade the Plan -Plan all the potential trades beforehand, and trade accordingly with your plans 2. Always be Disciplined -Do not create excuses to break your own trading rules 3. Expect Losses -Do not take a trade unless you are willing to accept the risk 4. Emotion Management -Always analyze your trade objectively and with a neutral of mindset 5. Focus on Trading Well -As a trader, your focus is on making the good trades, not focus on making the money 6. Patient, Patient and Patient!!! -Patient to wait for the Best Setups to trade, do not trade when there are no good setups 7. Trade What You See, Not What You Think -Concern with the effects, not concern about the reasons behind of what are happening. Everything is on your charts! 8. The Trend is Always Your Good Friend -The easiest money is made trading with the trend 9. Trading Evaluation -Record down your trades, why are you entry and why are you exit, continuously improve yourself 10. Trading is a Marathon, not a Sprint! -Be realistic, trading takes time to build experience
AMEX:SPYEducation
by YongLiang