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Mastering volume bars – How to read and use volume bars!When it comes to trading, price action often takes the spotlight, but volume is the quiet force behind the scenes that tells the real story. Volume bars show how much trading activity occurs during a given time period and can offer valuable insight into the strength or weakness of a price move. In this guide, we’ll break down how to read volume bars, what the different colors represent, and how to use them to make more informed trading decisions. Whether you're a beginner or looking to sharpen your strategy, understanding volume is a key step toward becoming a more confident and capable trader. ------------------------------- What will we discuss: - What is the volume indicator? - What are the green and red volume bars + the MA line? - How does the volume indicator work? - How to use volume during Support/resistance flips? - How to use volume while trading pattern breakouts? - How to use volume while trading inside a pattern? ------------------------------- What is the volume indicator The volume Bar indicator is a simple but yet essential tool that helps traders understand the level of activity behind every price movement. When you add the Volume Bar indicator to your chart, you will see vertical bars appear beneath each candlestick under in your chart. This represents the total volume during that time period. These bars show how much buying and selling occurred, but not whether it was mostly buying or mostly selling. The taller the bar, the more active the market was during that candle. ------------------------------- What are the green and red volume bars + the MA line? A green volume bar means the price closed higher than it opened during that period, indicating bullish sentiment and suggesting that buying pressure was stronger. A red volume bar means the price closed lower than it opened, reflecting bearish sentiment and suggesting that selling pressure dominated. While the volume itself shows how much was traded, the color tells you whether that activity occurred mostly during upward or downward price movement. It's important to note that the color doesn't directly show the number of buyers or sellers, since every trade has both. The MA line in a volume bar indicator stands for “Moving Average.” It represents the average trading volume over a specific number of past periods, smoothing out short-term fluctuations to show the overall trend in volume activity. This helps traders see whether the current volume is unusually high or low compared to the average. For example, if the current volume bar is significantly higher than the MA line, it could signal strong interest or momentum behind a price move. Conversely, if volume is consistently below the MA line, it may indicate weak market participation or a lack of conviction behind recent price changes. ------------------------------- How does the volume indicator work? Using volume effectively in trading involves looking at how it behaves in relation to price. For example, if price is moving up and volume is increasing , that usually confirms strong buying interest, suggesting the move is valid. On the other hand, if price rises on low volume, it could be a sign of weakness or a potential reversal. The same logic applies to down moves, if price drops on high volume, it is more likely a strong selling move. If it drops on low volume, it could just be a temporary pullback. ------------------------------- How to use volume during Support/resistance flips? Volume can also play a key role when trading support and resistance levels. When the price breaks through a key resistance level with strong volume, it often signals a shift in market sentiment and increases the likelihood that this level will now act as support. The high volume behind the breakout indicates strong conviction from buyers, meaning bulls were actively stepping in to push price higher. Because of this, if the price comes back down to retest that zone, it's likely that buyers will defend it, turning the former resistance into solid support. This concept is often referred to as a "break and retest" strategy, and volume is what helps confirm whether the breakout was strong enough to validate the level as a new base. Without significant volume, the breakout might lack follow-through, and the price could easily fall back below the level, failing to establish it as support. But when the breakout is backed by high participation, the probability of that level holding increases. I’ve included an example to show exactly how this plays out in action. ------------------------------- How to use volume while trading pattern breakouts? When trading chart patterns, volume can be a powerful tool to confirm whether a breakout is genuine or likely to be a fake-out. Patterns like triangles, flags, head and shoulders, or rectangles often lead to breakouts, but not all of them are trustworthy. That’s where volume comes in. If price breaks out of a pattern, it's important to look at the volume at that moment. A strong breakout is usually accompanied by a noticeable increase in volume. This surge in volume indicates that more market participants are getting involved, adding weight to the move. Essentially, higher volume reflects stronger conviction. It means traders aren’t just watching the breakout, they’re actively trading it. On the other hand, if the price breaks out but the volume remains low or even drops, that’s a red flag. Low volume suggests a lack of interest or commitment, and the breakout may not have enough strength to continue. In such cases, the price might quickly fall back into the pattern, turning what looked like a breakout into a fake-out. ------------------------------- How to use volume while trading inside a pattern? You can also use volume to gain insights while the price is still developing within a chart pattern, such as a rising wedge. In these situations, volume can help reveal the strength, or lack of strength, behind the price movement, even before a breakout occurs. For example, if the price drops sharply with high volume and then starts moving upward again in a rising wedge formation, but this upward move happens on low or declining volume, it can be a sign of potential weakness. The initial high-volume drop shows strong selling pressure, and the lack of buying volume on the recovery suggests that buyers are not fully supporting the move. This imbalance between strong selling and weak buying can indicate that the upward movement is not sustainable. It often means the rising wedge is forming as a corrective or weakening structure, increasing the chances of a breakdown once the pattern completes. In this way, volume becomes a clue, not just for breakouts, but for spotting when a move might be running out of steam even before it happens. ------------------------------- Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!

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Market Structure Shift (MSS) & Break of Structure (BOS) - Guide Introduction Understanding market structure is fundamental to becoming a consistently profitable trader. Two key concepts that Smart Money traders rely on are the Break of Structure (BOS) and the Market Structure Shift (MSS) . While they may seem similar at first glance, they serve different purposes and signal different market intentions. In this guide, we will break down: - The difference between BOS and MSS - When and why they occur - How to identify them on your charts - How to trade based on these structures - Real chart examples for visual clarity --- Break of Structure (BOS) A Break of Structure is a continuation signal. It confirms that the current trend remains intact. BOS typically occurs when price breaks a recent swing high or low in the direction of the existing trend . Key Characteristics: - Happens with the trend - Confirms continuation - Can be used to trail stops or add to positions Example: In an uptrend: - Higher High (HH) and Higher Low (HL) form - Price breaks above the last HH → BOS to the upside --- Market Structure Shift (MSS) Market Structure Shift signals a potential reversal . It occurs when price breaks a significant swing level against the prevailing trend and is often followed by a shift in the internal structure (e.g., lower highs after higher highs). Key Characteristics: - Happens against the trend] - Signals possible trend reversal - Often occurs after a liquidity grab or stop hunt - Optional: is created by a displacement candle Example: In an uptrend: - Price takes out a significant high (liquidity grab) - Then aggressively breaks the most recent HL → MSS to the downside --- How to Identify BOS and MSS For BOS: 1. Determine the current trend. 2. Identify swing highs/lows. 3. Look for price breaking past these levels in the same direction as the trend . For MSS: 1. Look for signs of exhaustion or liquidity grabs near swing highs/lows. 2. Watch for price to break against the trend structure . 3. Confirm with a shift in internal structure (e.g., lower highs start forming in an uptrend). --- Using BOS and MSS in Your Trading Strategy With BOS: - Use it to confirm trend continuation - Add to your position after a retracement into an OB or FVG - Trail your stop-loss below the most recent HL or above LH With MSS: - Look for confluence (liquidity sweep + MSS = strong signal) - Use it to spot early reversal entries - Wait for a confirmation candle or structure shift on LTF (1m, 5m, 15m) - If the displacement candle is too big you can wait for the retest --- Common Mistakes to Avoid - Confusing BOS with MSS - Ignoring higher timeframe context - Trading MSS too early without confirmation - Chasing BOS without waiting for a proper retracement Pro Tip: Use BOS/MSS with confluences like SMT Divergence, IFVGs, or key session times for higher probability setups. --- Final Thoughts Mastering BOS and MSS will give you an edge in understanding price delivery and anticipating market moves. BOS confirms strength in the current trend, while MSS warns of a possible reversal and new trend forming. Combine these with smart money tools, and you’ll be equipped to enter the market like a pro. Happy Trading!

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Mastering Candlestick Patterns - How to use them in trading!Introduction Candlesticks are one of the most popular and widely used tools in technical analysis. They offer a visual representation of price movements within a specific time period, providing valuable insights into market trends, sentiment, and potential future price movements. Understanding candlestick patterns is crucial for traders, as these formations can indicate whether a market is bullish or bearish, and can even signal potential reversals or continuations in price. While candlesticks can be powerful on their own, trading purely based on candlestick patterns can be challenging and risky. ----------------------------------------------------------------------------------------------- What are we going to discuss: 1. What are candlesticks? 2. What are bullish candlestick patterns? 3. What are bearish candlestick patterns? 4. How to use candlestick patterns in trading? ----------------------------------------------------------------------------------------------- 1. What are candlesticks? A candlestick in trading is a visual representation of price movement in a specific time period on a chart. It is a fundamental element used in technical analysis to study market trends, determine price levels, and predict potential future price movements. A single candlestick consists of four main components: the open, close, high, and low prices for that time period. Here’s how a candlestick works: - The Body: The rectangular area between the open and close prices. If the close is higher than the open, the body is green, indicating a bullish (upward) movement. If the close is lower than the open, the body is red, signaling a bearish (downward) movement. - The Wick (high and low of the candle): The thin lines extending above and below the body. These represent the highest and lowest prices reached during the period. The upper wick shows the highest price, while the lower wick shows the lowest price. - The Open Price: The price at which the asset began trading in that time period (for example, the start of a day, hour, or minute depending on the chart timeframe). - The Close Price: The price at which the asset finished trading at the end of the period. ----------------------------------------------------------------------------------------------- 2. What are bullish candlestick patterns? What is a Hammer Candlestick Pattern?  A hammer candlestick pattern has a small body near the top of the candle and a long lower wick, typically two to three times the length of the body. There is little to no upper wick. This formation shows that during the trading session, sellers managed to push the price significantly lower, continuing the downward momentum. However, buyers eventually stepped in with strong demand and drove the price back up near the opening level by the close. What is an Inverted Hammer? An inverted hammer has a small body near the bottom of the candle with a long upper wick, usually at least two to three times the size of the body, and little to no lower wick. This unique shape resembles an upside-down hammer, hence the name. What is a Dragonfly Doji?  A dragonfly doji has a unique shape where the open, close, and high prices are all at or very close to the same level, forming a flat top with a long lower wick and little to no upper wick. This gives the candle the appearance of a "T," resembling a dragonfly. What is a Bullish Engulfing? A bullish engulfing candlestick consists of two candles. The first candle is bearish, indicating that sellers are still in control. The second candle is a large bullish candle that completely engulfs the body of the first one, meaning it opens below the previous close and closes above the previous open. This pattern reflects a clear shift in market sentiment. During the second candle, buyers step in with significant strength, overpowering the previous selling pressure and reversing the momentum. The fact that the bullish candle completely engulfs the previous bearish candle indicates that demand has taken over, signaling a potential trend reversal. What is a Morning Star?  The morning star consists of three candles. The first is a long bearish candle, indicating that the downtrend is in full force, with strong selling pressure. The second candle is a small-bodied candle, which can be either bullish or bearish, representing indecision or a pause in the downtrend. Often, the second candle gaps down from the first, indicating that the selling pressure is subsiding but not yet fully reversed. The third candle is a long bullish candle that closes well above the midpoint of the first candle, confirming that buyers have taken control and signaling the potential start of an uptrend. ----------------------------------------------------------------------------------------------- 3. What are bearish candlestick patterns? What is a Shooting Star?  A shooting star has a smal body near the low of the candle and a long upper wick, usually at least twice the size of the body, with little to no lower wick. This shape shows that buyers initially pushed the price higher during the session, continuing the upward momentum. However, by the close, sellers stepped in and drove the price back down near the opening level. What is a Hanging Man?  A hanging man has a distinct shape, with a small body positioned near the top of the candle and a long lower wick, usually at least twice the length of the body. There is little to no upper wick. The appearance of this candle suggests that although there was strong selling pressure during the session, buyers managed to bring the price back up near the opening level by the close. Despite the recovery, the long lower wick shows that sellers were able to push the price down significantly at one point. This introduces uncertainty into the uptrend and can indicate that bullish momentum is weakening. What is a Gravestone Doji?  A gravestone doji has a distinctive shape where the open, low, and close prices are all at or near the same level, forming a flat base. The upper wick is long and stretches upward. This shape resembles a gravestone, which is where the pattern gets its name. What is a Bearish Engulfing?  A bearish engulfing candlestick pattern is a two-candle reversal pattern that typically appears at the end of an uptrend and signals a potential shift from bullish to bearish sentiment. The first candle is a smaller bullish candle, reflecting continued upward momentum. The second candle is a larger bearish candle that completely engulfs the body of the first one, meaning it opens higher than the previous close and closes lower than the previous open. This indicates that bears have taken control, overpowering the buyers, and suggests a potential downside movement. What is an Evening Star?  An evening star is a bearish candlestick pattern that typically signals a potential reversal at the top of an uptrend. It consists of three candles and reflects a shift in momentum from buyers to sellers. The pattern starts with a strong bullish candle, showing continued buying pressure and confidence in the upward move. This is followed by a smaller-bodied candle, which can be bullish or bearish, and represents indecision or a slowdown in the uptrend. The middle candle often gaps up from the first candle, showing that buyers are still trying to push higher, but the momentum is starting to weaken. The third candle is a strong bearish candle that closes well into the body of the first bullish candle. This candle confirms that sellers have taken control and that a trend reversal could be underway. The more this third candle erases the gains of the first, the stronger the reversal signal becomes. ----------------------------------------------------------------------------------------------- 4. How to use candlestick patterns in trading? Candlestick patterns are most useful when they appear at key levels, such as support, resistance, or significant trendlines. For instance, if a bullish reversal pattern like a hammer or bullish engulfing forms at a support level, it may indicate that the downtrend is losing momentum, and a reversal could be coming. Trading based on candlestick patterns alone can be risky. To improve your chances of success, always seek additional confirmation from other technical analysis tools. Here are some common ones: - Support and Resistance Levels: Look for candlestick patterns that form near key support or resistance levels. For instance, if the price reaches a support zone and a bullish reversal candlestick pattern forms, this may suggest a potential upward reversal. - Fibonacci Retracement: Use Fibonacci levels to identify potential reversal zones. If a candlestick pattern appears near a key Fibonacci level (such as the Golden Pocket), it adds confirmation to the idea that the price may reverse. - Liquidity Zones: These are areas where there is a high concentration of buy or sell orders. Candlestick patterns forming in high liquidity zones can indicate a stronger potential for a reversal or continuation. - Indicators and Oscillators: Incorporating indicators like the Relative Strength Index (RSI), Moving Averages, MACD, or Stochastic RSI can help confirm the momentum of the price. For example, if a candlestick pattern forms and the RSI shows an oversold condition (below 30), this could indicate a potential reversal to the upside. It’s crucial to wait for confirmation before entering a trade. After a candlestick pattern forms, it’s important to wait for the next candle or price action to confirm the signal. For example, if you spot a bullish reversal candlestick like a hammer at support, wait for the next candle to close above the hammer’s high to confirm that buyers are in control and a reversal is likely. ----------------------------------------------------------------------------------------------- Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!

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Mastering the Stochastic RSI - Guide to Spotting Momentum Shifts Introduction In the world of technical analysis, momentum indicators are essential tools for understanding market sentiment and potential price movements. One such tool is the Stochastic RSI (Stoch RSI), a unique and highly sensitive variation of the traditional Relative Strength Index (RSI). While the standard RSI focuses on price, the Stoch RSI takes it a step further by measuring the momentum of the RSI itself. This makes it a faster-reacting and more dynamic indicator that many traders use to anticipate trend shifts and spot overbought or oversold conditions earlier. What is the Stochastic RSI? The Stochastic RSI (Stoch RSI) is a momentum oscillator that operates similarly to the RSI but with a twist — instead of measuring the price of an asset, it measures the movement of the RSI. Because of this, the Stoch RSI is typically more sensitive and quicker to respond to changes in market momentum. It consists of two lines: * The blue line: The primary line that reacts quickly and shows when the RSI is gaining or losing momentum. * The orange line: A moving average of the blue line, which acts as a smoother version to help filter out noise and highlight potential turning points. How to Read the Stoch RSI The Stoch RSI moves between 0 and 100, and traders often focus on the 20 and 80 levels as key thresholds: Above 80 (Overbought): Indicates that the RSI has been running hot compared to recent values. This suggests strong upward momentum that could be due for a slowdown or minor correction. However, it doesn’t necessarily mean the price will drop immediately, just that conditions are extended. Below 20 (Oversold): Suggests the RSI has been suppressed, signaling weakening bearish momentum and a possible reversal upward. Again, this isn’t a guaranteed bounce but rather a situation where a shift may be more likely. How to Trade with the Stoch RSI While entering overbought or oversold zones can offer insight, trading solely based on those levels is risky. Instead, look for crossovers between the blue and orange lines: Bearish signal: When the Stoch RSI is above 80 and the blue line crosses below the orange line, it can indicate that bullish momentum is fading — a potential short entry. Bullish signal: When the Stoch RSI is below 20 and the blue line crosses above the orange line, it may suggest that bearish momentum is weakening — a potential long entry. These crossover points provide more reliable signals than the levels alone, especially when confirmed by price action or other indicators. What Timeframes to Use The Stoch RSI can be applied to any timeframe, but its effectiveness varies. On lower timeframes (like 1-minute or 5-minute charts), it generates many signals, including plenty of false or weak ones. For stronger and more reliable signals, it’s best used on higher timeframes such as the 4-hour, daily, weekly, or monthly charts. Generally, the higher the timeframe, the more significant the signal becomes. Conclusion The Stochastic RSI is a powerful indicator that combines the strengths of the RSI and Stochastic Oscillator to deliver sharper, more responsive momentum signals. While it’s tempting to act on overbought or oversold readings alone, true effectiveness comes from understanding the behavior of the two lines and using it in conjunction with other analysis tools. Whether you're a short-term trader or a long-term investor, mastering the Stoch RSI can add depth to your strategy and help you make more informed decisions.

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Smart Money Technique (SMT) Divergences - The Ultimate Guide Introduction SMT Divergences are a powerful concept used by professional traders to spot inefficiencies in the market. By comparing correlated assets, traders can identify hidden opportunities where one market shows strength while the other shows weakness. This guide will break down the major SMT divergences: EURUSD/GBPUSD, US100/US500, and XAUUSD/XAGUSD . --- What is SMT Divergence? SMT Divergence occurs when two correlated assets do not move in sync, signaling potential liquidity grabs or market inefficiencies. These divergences can be used to confirm trend reversals, identify smart money movements, and improve trade precision. Key Concepts: - If one asset makes a higher high while the correlated asset fails to do so, this suggests potential weakness in the pair making the higher high. - If one asset makes a lower low while the correlated asset does not, this suggests potential strength in the pair that did not make a lower low. - Smart Money often exploits these inefficiencies to engineer liquidity hunts before moving price in the intended direction. --- EURUSD vs. GBPUSD SMT Divergence These two forex pairs are highly correlated because both share the USD as the quote currency. However, when divergence occurs, it often signals liquidity manipulations. How to Use: - If GBPUSD makes a higher high but EURUSD does not, GBPUSD may be trapping breakout traders before reversing. - If EURUSD makes a lower low but GBPUSD does not, EURUSD might be in a liquidity grab, signaling a potential reversal. --- US100 vs. US500 SMT Divergence The NASDAQ (US100) and S&P 500 (US500) are both major indices with a strong correlation, but tech-heavy NASDAQ can sometimes lead or lag the S&P. How to Use: - If US100 makes a higher high but US500 does not, it suggests US100 is extended and may reverse soon. - If US500 makes a lower low but US100 does not, US500 might be experiencing a liquidity grab before a reversal. --- XAUUSD vs. XAGUSD SMT Divergence Gold (XAUUSD) and Silver (XAGUSD) have a historic correlation. However, due to differences in volatility and liquidity, they can diverge, presenting trading opportunities. How to Use: - If Gold makes a higher high but Silver does not, Gold might be overextended and ready to reverse. - If Silver makes a lower low but Gold does not, Silver might be in a liquidity grab, signaling strength. --- Indicator Used for SMT Divergences To simplify the process of identifying SMT divergences, this guide utilizes the TradingView indicator TehThomas ICT SMT Divergences . This tool automatically detects divergences between correlated assets, highlighting potential trade opportunities. You can access the indicator here: Why Use This Indicator? - Automatically plots divergences, saving time on manual comparisons. - Works across multiple asset classes (Forex, Indices, Metals, etc.). - Helps traders spot Smart Money inefficiencies with ease. --- Final Tips for Trading SMT Divergences 1. Use Higher Timeframes for Confirmation: SMT Divergences on 1H or 4H hold more weight than those on lower timeframes. 2. Combine with Other Confluences: ICT concepts like Order Blocks, FVGs, or liquidity sweeps can strengthen the SMT setup. 3. Wait for Market Structure Confirmation: After spotting SMT divergence, look for a market structure shift before entering trades. 4. Be Mindful of Economic Events: Divergences can appear due to news releases, so always check the economic calendar. --- Conclusion SMT Divergences are a valuable tool for traders looking to gain an edge in the markets. By analyzing inefficiencies between correlated assets, traders can anticipate smart money movements and improve trade precision. Practice spotting these divergences on real charts, and soon, you'll develop a keen eye for hidden liquidity traps. Happy trading!

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How Leverage Works in Forex Trading Dear readers, my name is Andrea Russo, and today I want to talk to you about one of the most discussed topics in trading: leverage in Forex. This tool, both powerful and delicate, allows traders to amplify their gains with small investments but also carries significant risks if not used prudently. In this article, I will guide you step by step, explaining how leverage works, its advantages and risks, and how you can start trading safely. What is leverage in Forex? Leverage is a tool that allows traders to control much larger positions than the capital actually invested. For example, with a leverage of 1:100, you can open a $100,000 position with an initial investment of just $1,000. Here’s a simple example: You invest $1,000 with a leverage of 1:100. Your market exposure will be $100,000. If the market moves 1% in your favor, you will earn $1,000 (equal to 100% of your capital). If the market moves 1% against you, you will lose your entire capital. As you can see, leverage amplifies both gains and losses, which is why it’s essential to understand how it works before using it. Advantages of leverage Leverage offers several advantages that make it an attractive tool for those who want to invest in Forex: Access to the market with small capital: You can start trading even with modest sums, thanks to leverage. Diversification: With limited capital, you can open multiple positions on different currency pairs. Maximization of profits: Even small price movements can translate into significant gains. The risks of leverage Despite its advantages, leverage carries important risks: High losses: The same amplification that generates profits can multiply losses. Margin Call: If losses exceed the available margin, the broker may automatically close your positions. Emotional stress: High leverage can lead to impulsive decisions, often driven by anxiety. How to start trading in Forex with leverage If you want to use leverage effectively and safely in Forex, follow these steps: 1. Educate yourself and learn the basics First of all, study how the Forex market works. It’s important to understand what influences exchange rates and which strategies to adopt. Dive into key concepts such as: Major currency pairs Spread and commissions Technical and fundamental analysis 2. Choose a reliable broker The broker is your trading partner, so ensure that it is regulated and offers transparent conditions. Look for brokers with: Competitive spreads Flexible leverage options User-friendly platforms 3. Start with a demo account To practice, use a demo account. You can test your strategies without risking real money and gain confidence with the platform. 4. Set up a trading strategy A good trader doesn’t leave anything to chance. Define a trading plan that includes: Realistic goals Percentage of risk per trade (1-2% of capital) Risk management tools like stop-loss and take-profit 5. Start with low leverage If you’re a beginner, use moderate leverage, such as 1:10 or 1:20. This will allow you to limit losses while learning to manage risk. 6. Monitor positions and manage risk Risk management is the key to successful trading. Invest only what you can afford to lose and constantly monitor your positions. Conclusion Leverage is an incredible tool, but it must be used cautiously. It can open the doors of the Forex market even to those with limited capital, but it requires discipline, education, and good risk management. Thank you for reading this article. If you have any questions or want to share your experiences in Forex, feel free to write in the comments. And remember: trading is a marathon, not a sprint! Happy trading!

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by Andrea_Russo_SwipeUP

Common Mistakes in Forex Trading: How to Avoid Them Forex trading is the largest and most liquid market in the world, but precisely because of this, it is also one of the most complex and challenging. Many traders, especially beginners, often make mistakes that can jeopardize their profits or even wipe out their capital. However, with proper planning and greater awareness, it is possible to avoid the most common pitfalls and build a successful trading career. In this guide, we will explore the 10 most frequent mistakes in Forex trading and provide concrete strategies to overcome them. 1. Not Having a Trading Plan A trading plan is essential for any trader. Without a clear plan, it is easy to get carried away by emotions, make impulsive decisions, and lose money. An effective trading plan should include: Trading goals: Decide how much you want to earn and within what timeframe. Risk tolerance: How much are you willing to lose in a single trade? Entry and exit rules: Set criteria for opening and closing a position. Capital management strategy: Determine how much of your capital to invest in each trade. Practical example: if your goal is to earn 10% in a month, the plan should specify how many trades to make, which currency pairs to monitor, and the risk levels for each trade. 2. Inadequate Risk Management A common mistake is risking too much capital in a single trade. This is a fast way to lose all your money. A good rule of thumb is to follow the 1-2% rule, meaning you should not risk more than 1-2% of your capital on a single trade. For example, if you have a capital of €10,000, the maximum risk per trade should be between €100 and €200. This approach allows you to survive a series of consecutive losses without jeopardizing your account. Additionally, it is essential to diversify your trades. Avoid focusing on a single currency pair or a specific strategy to reduce overall risk. 3. Not Setting Stop-Loss Orders Stop-loss is an essential tool to protect your capital. It allows you to limit losses by automatically closing a position when the market moves against you. Many traders, out of fear of closing at a loss, avoid setting stop-loss orders or adjust them incorrectly. This behavior can lead to losses much larger than expected. Effective strategy: Set the stop-loss level based on your trading plan and never change this setting during a trade. For example, if you are trading EUR/USD and your risk level is 50 pips, set the stop-loss 50 pips away from the entry price. 4. Excessive Trading (Overtrading) Overtrading is a common mistake, especially among beginner traders. The desire to "make money quickly" leads many to execute too many trades, often without a clear strategy. Each trade comes with costs, such as spreads or commissions, which can quickly add up and reduce profits. Furthermore, excessive trading increases the risk of making impulsive decisions. How to avoid it: Stick to your trading plan. Take a break after a series of trades, especially if they have been losing trades. Set a daily or weekly limit on the number of trades. 5. Using Too Many Indicators Many traders rely on a multitude of technical indicators, hoping that more information will lead to better decisions. In reality, excessive use of indicators can create confusion and conflicting signals. It is better to choose 2-3 indicators that complement each other. For example: Moving Average to identify trends. RSI (Relative Strength Index) to measure market strength. MACD (Moving Average Convergence Divergence) to identify entry and exit points. 6. Not Understanding Leverage Leverage is a powerful tool that allows traders to control large positions with relatively small capital. However, it can amplify both profits and losses. Many beginner traders use excessive leverage, underestimating the risks. For example, with 1:100 leverage, a small market fluctuation can result in significant losses. Practical advice: Use low leverage, especially if you are a beginner. Start with leverage of 1:10 or 1:20 to limit your risk exposure. 7. Ignoring Economic News Economic and political events have a profound impact on the Forex market. Ignoring the economic calendar is a serious mistake that can lead to unexpected surprises. For example, interest rate decisions, employment data, or monetary policy announcements can cause significant market movements. Strategy: Regularly check an economic calendar. Avoid trading during high-volatility events unless you have a specific strategy for these scenarios. 8. Not Backtesting Strategies Backtesting is the process of testing a strategy on historical data to verify its effectiveness. Many traders skip this step, entering the market with untested strategies. Backtesting allows you to: Identify strengths and weaknesses in your strategy. Build confidence in your trading decisions. There are numerous software and platforms that allow you to perform backtesting. Be sure to test your strategy over a long period and under different market conditions. 9. Uncontrolled Emotions Fear and greed are a trader's worst enemies. Fear can lead you to close a position too early, while greed can make you ignore exit signals. To manage emotions: Establish clear rules for each trade. Take regular breaks from trading. Consider using a trading journal to analyze your decisions and improve emotional control. 10. Not Staying Updated The Forex market is constantly evolving. Strategies that worked in the past may no longer be effective. Not staying updated means falling behind other traders. Tips to stay updated: Read books and articles about Forex. Attend webinars and online courses. Follow experienced traders on social media and trading platforms. Conclusion Avoiding these mistakes is the first step to improving your performance in Forex trading. Remember that success requires time, discipline, and continuous learning. Be patient, learn from your mistakes, and keep refining your skills. Happy trading!

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by Andrea_Russo_SwipeUP

Why I Invest Exclusively in Forex: A Strategic Choice Investing in the currency market (forex) has gained popularity among investors worldwide due to its liquidity, accessibility, and profit potential. If you're wondering why I prefer to focus solely on forex and not diversify into other markets like stocks or cryptocurrencies, here are some reasons explaining my choice to concentrate exclusively on the currency market. Unmatched Liquidity Forex is the largest and most liquid financial market in the world, with a daily trading volume exceeding 6 trillion dollars. This extraordinary liquidity means I can enter and exit positions at any time without worrying about slippage or difficulty finding a buyer or seller for my trades. The high liquidity also makes the market more stable, reducing the risk of price manipulation and increasing transparency. 24/7 Accessibility Forex is a global market that operates 24 hours a day, five days a week. This provides a flexibility that few other markets can match. I can decide to trade at any time of the day, fitting it into my schedule and routine without worrying about the fixed hours of other markets, like stock exchanges. This constant accessibility makes forex perfect for those with busy lives or those who prefer to trade during specific sessions, such as the Asian, European, or American sessions. Low Barrier to Entry Another significant advantage of forex is the low barrier to entry. You don’t need a large capital to start trading forex. Thanks to leverage, I can control a much larger position than my initial investment, potentially increasing returns. Additionally, many trading platforms offer free demo accounts, allowing me to learn and refine my skills without risking real money. The ability to start with modest amounts makes forex accessible to a wide range of investors, even those with limited budgets. Less Volatility Than Cryptocurrencies While cryptocurrencies promise high returns, they are notoriously volatile and risky. In comparison, forex tends to be more stable, especially when dealing with the most traded currencies like the US dollar, the euro, or the Japanese yen. While cryptocurrencies can experience price fluctuations of 10% or more in a single day, forex, though influenced by economic and political events, tends to move more predictably and in a controlled manner. For those seeking a less speculative and more regulated market, forex is a preferred choice over cryptocurrencies. Predictability and Fundamental Analysis In forex, currency movements are mainly influenced by economic factors such as interest rates, central bank monetary policies, inflation, and macroeconomic data. This predictability makes it easier to anticipate price movements compared to other markets. With a solid understanding of fundamental analysis, it’s possible to develop trading strategies based on economic events and government policies, providing a relatively clear basis for forecasting. On the other hand, the cryptocurrency market is influenced by unpredictable factors, including technological adoption, regulation, and speculation, making it harder to analyze. International Diversification Investing in forex gives access to a wide range of currencies from different countries and regions. This geographic diversification can protect the portfolio from risks related to individual stock markets or local economic crises. Furthermore, currencies behave differently based on global economic and political developments, offering multiple investment opportunities in different macroeconomic environments. Less Dependence on Companies or Sectors In stock trading, results are heavily dependent on the performance of individual companies or sectors. For instance, a corporate crisis or regulatory change can significantly affect stock values. In forex, however, performance depends on global macroeconomic factors, not individual entities. More stable currencies are influenced by monetary policies and economic data, making them easier to analyze and predict. Risk Management In forex, there are several risk management tools such as stop-loss and take-profit orders that help limit losses and protect gains. Furthermore, the ability to use leverage allows for higher returns but must be managed with caution. Risk management in forex is well-developed and allows for safer trading compared to other markets like cryptocurrencies, where volatility can lead to larger losses in a short amount of time. Conclusion Investing in forex offers numerous advantages, including liquidity, accessibility, relative stability, and the ability to trade 24/7. While every market has its risks, forex seems to be the most balanced for those seeking an investment that combines stability with profit opportunities. Though not without risks, forex offers greater predictability compared to cryptocurrencies and flexibility that allows for adaptation to changing market conditions. For these reasons, I’ve decided to focus my portfolio exclusively on this asset class.

Education

by Andrea_Russo_SwipeUP

AlgoTrading Basics for Beginners and Advanced Strategies Hello, 1 Introduction Algotrading or Algorithmic trading has brought about a revolution in the financial markets: automation of trades with the help of complex algorithms. These algorithms execute trades according to predefined rules and are quicker in capturing market opportunities compared to manual trading. HFT in gold HFT-based algotrading has also greatly skewed the transaction volumes in recent years, but even though these trades are very short-term, they can tell us something about longer-term trading strategies. --- 2 What is Algorithmic Trading? Algorithmic trading is a method of executing orders using automated, pre-designed trading instructions that account for variables such as trade timing, price, and volume. The platform has found application in the work of large financial institutions, hedge funds, and individual traders to facilitate the ease of trading strategy selection and optimization. One might be, a set of rules that tells it to buy the gold if it falls below a certain level and sells as soon as the price of that gold hits a specified level. Traders can take advantage of small price movements without sitting in front of their screens all day. --- 3 Why use Algorithmic Trading? There are various reasons as to why one would engage in Algotrading: Speed: It is obvious that technology is used to carry out trades and computers do this faster than people. This proves extremely useful in fast markets like gold trading where prices may change in milliseconds. Emotionless Trading: An individual does not deviate from the proposal; emotional elements like fear and greed that affect traders do not affect its operation. Backtesting: Trading systems risk analyses can be done using test histories which access the performance of trading systems on historical figures, thus preventing any risk when trading. Precision and Consistency: Algorithms maintain accuracy levels in trade initiation with almost never deteriorating without human intervention as only information is required regarding trading and no emotions. --- 4 Core Principles of Algorithmic Trading Apart from trading in shares, forex or even taking a position in gold (XAUUSD) there are a few primary principles common to all algorithmic trading: a Data Mining And Data Management Technical Indicators – Besides backtesting and strategy optimization, algorithms employ very prominent technical indicators such as Moving Averages (MA), Relative Strength Index (RSI), Bollinger Bands, or other indicators associated with detecting trends or momentum. Price Patterns – Other factors that might be of influence include pattern recognition algorithms which can be trained to identify specific shapes such as heads and shoulders, flags, or triangles, and thereby predicting price movements. Volume Analysis – Volume analysis can be instrumental in price movement validation. Volumes increase during up-trend or down-trend and their analysis is essential when confirming trends or reversals. b Machine Learning Models Machine learning models aim to work in this way in modern algorithms with a view to predicting price changes in the near future. Algorithms that one develops or wires are fed with data sets and they learn patterns and devise methods of trading faster or more efficiently anyway as the case might be. There are other strategies like SVM, Random Forests, and Neural Networks that one can use to enhance predictive power. c High-Frequency Trading HFT involves placing numerous orders and getting them executed in split seconds and on some occasions microseconds. That is particularly attractive in cash markets like a gold market where there are narrow price bands in which one can place determinants and capitalize on the fluctuations. --- 5 Advanced Techniques in Gold (XAUUSD) Algorithmic Trading Trading gold presents unique challenges and opportunities in the algorithmic trading world. Here are some advanced techniques tailored to the XAUUSD market: Reinforcement learning has emerged as a powerful technique in gold trading. RL works as the trading systems interact with the market and improvise over the strategy by solving the problem by trying it in the market. This is useful for gold trading, as RL strategies are adaptable to external shocks such as economic news or investor sentiment changes. They include sentiment predictions around precious metals. Gold as an asset class has a unique character because it is a ‘safe-hoard’ asset and hence its price is subject to global and domestic conditions, military conflicts and general investor feel. Sentiment algorithms incorporate news, social networks, and reports on economics and stock markets to identify the mood of the investor's community. If there is a piece of news pointing to some uncertain or negative times ahead, then the algorithm predominantly directed by the sentiment may initiate purchases of gold. --- 6 The Future of Algorithmic Trading Although this form of trading has not yet reached widespread use, the potential of quantum computing in investment strategies including gold markets is promising. Quantum calculations have been demonstrated to outperform classical computation in solving combinatorial optimization problems and processing big data. This can allow the development of new and better trading strategies and more effective utilization of unnecessary. --- 7 Practical Use of the Traders on Platforms like TradingView With the inception of platforms like TradingView, algorithmic traders have been aided with a design, a test, and an automated strategy submission in the most reliant fashion. a Algorithmic Strategies Implemented Using Pine Script On its part, TradingView accepts user-written trading algorithms. Pine Script programming language is based on TradingView. These traders favor strategies resting on either technical indicators, patterns, or custom conditions. For instance, one can formulate a strategy to place a gold (XAUUSD) order whenever the price rises above its 50-day moving average and a closing order whenever the price goes down. b Strategic Testing Strategies (algorithms) are tested using back-testing methods incorporated in the trading software, this process is known as back-testing. A feature of the TradingView platform is that a trader can run their algorithms on record and see how those algorithms would have played out on historical data. This is important for adjusting the entry and exit plus the risk control parameters and further the performance of a strategy. c Community Insights Another benefit of using the TradingView platform is the community of traders around it who can post their strategies, exchange ideas, and learn from each other. You will be able to learn how other traders have taken to algorithmic trading with gold and other assets and be able to develop better strategies. --- 8 Tactics to Consider for New and Intermediate Trading Positions The strategies provided for algorithmic trading may vary from simple to complex in levels. Below are some typical strategies that every trader should consider implementing in their trading practice: a Trend Following This is perhaps the most basic type of algorithmic trading. The idea is very simple; one buys those assets that are on the uptrend (bullish) and sells those that are on the downtrend (bearish). For example, in gold trades, a strategy for a trader may be quite simple: moving averages. For instance, an algorithm could be designed in such a way that it buys gold whenever the 20-day moving average of gold crosses the 50-day moving average upwards and sells when this situation is reversed. b Arbitrage Arbitrage strategies, as the very definition suggests, enable traders to exploit all such situations which emerge, due to the mispricing corrects routinely. In gold trading, for instance, this would refer to the action of selling short shares in an exchange retrieved in one exchange, where that price, would include a premium orchestrated by other markets. c Mean Reversion Mean reversion strategies originate from the classic concept that there is a high likelihood of prices returning to their average or mean. For instance, an algorithm buys an asset such as gold if its average is lower than the over its certain period moving average and sells whenever it is above that average. d High-Frequency Trading (HFT) HFT although it calls for many resources, there are traders who have this kind of approach to gold markets in that they seek to benefit from price changes within seconds or rather milliseconds HFT. This strategy also calls for other aspects such as having very good network connectivity to enable very fast execution of trades as well as high volume trades. --- 9 Conclusion Algorithmic trading opens a world of opportunities for all kinds of traders. It doesn't matter whether you're a beginner looking into simple tactics such as trend-following or a seasoned trader putting more sophisticated approaches to work with gold (XAUUSD), there has never been a time that the tools and methods are more readily available to you for successful algotrading. Traders can use existing platforms such as our TradingView to develop, back & optimize their strategies to keep up with today’s fast-moving financial markets. The financial world is evolving and staying up to date with these new breakthroughs in technology, including machine learning, sentiment analysis, and quantum computing will help give the traders the edge. Algorithmic trading can become everyone’s thing if one is patient, disciplined, and keeps learning. Regards, Ely

Education

by Elysian_Mind

Basic terminology In this idea I would like to cover basic market/crypto terminology for beginners! Trading is a speculation in various assets with the aim of making a profit. Technical analysis is a type of market analysis that uses information from price movements on a chart. Fundamental analysis is a type of market analysis that uses information about a project, segment and market as a whole to create trading hypotheses. Liquidity is the ability to quickly execute a transaction. KYC - “Know Your Customer” is a mandatory procedure for identifying users for financial institutions, exchanges, and brokers. Fiat money is paper notes with several degrees of security, which are issued by the state for circulation within the country and abroad. This type of money also includes virtual funds, stored on a simple plastic card, and also accepted for payment for goods and services. P2P trading is the direct buying and selling of cryptocurrency by users without the participation of a third party or intermediary. Ticker is a short name given to the project for identification in financial markets (in crypto, most often the name of the token). Spot trading is real-time trading of a physical asset. Order - an application to buy/sell. Limit order is an order to buy/sell at a limit price you define, which is lower than the current one when buying and higher than the current one when selling. Such orders fall into the order book. Order book is a list of limit orders on the market at the current moment. Makers are traders who work with limit orders. Add liquidity to the exchange. Market order is a buy/sell order that is instantly triggered at the current price at the current moment. Takers are traders who work with market orders. They take away the liquidity of the exchange. Stop-limit order is a limit order that, when the stop price is reached, is placed in the order book. Take profit is a limit or market order with which profit is fixed. Stop Loss is an order that will allow you to close a losing position so as not to incur a larger loss. Futures trading is the trading of regular or perpetual contracts. This is an agreement that in the future one party will sell or buy something from the other party. Long - Long position, work to increase prices. Short - Short position, work to lower prices. Stop market order is a market order that, when the stop price is reached, interacts with the nearest limit orders in the order book. Hedging is a tool that allows you to reduce risks by trading on different markets. Leverage is a multiplier that allows you to open a position with a volume exceeding your deposit. Margin is the minimum amount of equity in the account that ensures maintaining an open position. Isolated margin is a margin provision in which a limited amount of margin (allocated by you) is used. Cross margin is a margin provision in which the entire futures deposit is used. Liquidation is the forced closure of a position with the loss of futures deposit funds (with cross margin) and the loss of the margin allocated for the transaction (with isolated margin). ADL (auto deleveraging) is a method of liquidation that occurs only if the exchange's insurance fund ceases to function. Last price - the cost of the last sold contract from the order book (order book). The mark price is an average price that is calculated based on the latest prices of several major exchanges. Prices on exchanges are different. TradingView is a web service for technical analysis of trading charts. Backtest is work on the history of the chart, which is aimed at testing and getting used to the trading strategy, as well as collecting statistics. Statistics help you understand whether a trading strategy is working. Bullish candle is a candle that indicates upward price movement. Bearish candle is a candle that indicates downward price movement. Price Action (PA) is a method based on analyzing a price chart using candlestick formations. Candlestick formation is a graphical pattern of several candles that indicates the mood of the market. Patterns are a graphical pattern, visible on the chart in the form of figures, indicating the mood of the market. Time frame - the time during which one candle is formed on the price chart. HTF - Higher Time Frame. MTF - Medium Time Frame. LTF - Lower Time Frame. H4 - 4 hour. H1 - 1 hour. M15 - 15 minute. M5 - 5 minute. Trend is a market tendency that is formed as a result of purchases/sales of a sufficiently large volume of assets and capable of influencing price movements. Uptrend is an upward price movement formed as a result of successive purchases of a large volume of an asset. Downtrend is a downward price movement formed as a result of successive sales of a large volume of an asset. Accumulation is a narrow price range in which a large player accumulates (buys) a position with the goal of selling an asset at higher prices. This creates an upward trend. Distribution - a narrow price range in which a large player distributes (sells) a position in order to make a profit. This creates a downward trend. Market cycle is a chain of market phases during which a major participant accumulates/distributes a position, initiating an upward/downward movement. Bulls are buyers. Bears are sellers. HH (Higher High) - higher maximum. HL (Higher Low) - higher minimum. LH (Lower High) - lower maximum. LL (Lower Low) - lower minimum. Impulse movement is movement directed along the main trend. Correction is a movement directed against the main trend. Swing is a structural point. Swing High - the highest structural point. Swing Low - the lowest structural point. Strong Swing - a price high/low that is key within a specific structural movement. Update of this point leads to a change in structural movement. Weak Swing - a price high/low that has no impact on the structural movement. Market Structure (MS) - market structure. Bos (break of structure) - breakdown of structure. Conf (confirmation) - continuation (update) of the structure. Fake bos – formation of manipulation in the zone of a key structural high/low. Liquidity (in the understanding of the concept) is the ability to buy or sell a large volume of assets without affecting the price. Large participants are exchanges, funds or wealthy traders (crypto market), central banks and their interbank algorithms which have a large amount of funds or assets, which makes it possible to manipulate the value of an asset. Support level is a conditional price level for purchases, which acts as a zone of liquidity accumulation. Resistance level is a conditional sales price level, which acts as a zone of liquidity accumulation. Sweep/Raid - false update of highs/lows in order to remove liquidity. BSL (Buy Side Liquidity) - liquidity as a goal for buyers. SSL (Sell Side Liquidity) - liquidity as a goal for sellers. EQH (Equal Highs) - equal price highs. EQL (Equal Lows) - equal price minimums. Internal liquidity is an accumulation within a sideways movement or formed impulse, between a structural maximum and a minimum, on the corresponding TF. External liquidity - accumulation outside the boundaries of the sideways movement and at the structural highs and lows of the corresponding TF. Compression is liquidity that is formed as part of a corrective movement between key structural points. Crypto market is a market where participants 24/7 trade assets associated with blockchain technologies on centralized and decentralized crypto exchanges. Bitcoin is the first cryptocurrency payment system that laid the foundation for the entire crypto market and has maximum trust among the community. Altcoins are cryptocurrencies launched as an analogue of Bitcoin with certain improvements in technology (speed, functionality, scalability). Tokens are modern altcoins, which, thanks to technological development, have moved away from cryptocurrency payment systems to implement functionality for the decentralization of classic centralized services, organizations and services. Stablecoins are tokens that are pegged 1:1 to fiat currencies. On-chain analysis is a type of analysis that uses transaction data within a blockchain to predict future changes in price. Lot is a unit of measurement for the value of a transaction. Pip is a unit of measurement for changes in the value of currency pairs. Spread is the difference between buying and selling. Broker is an intermediary between the trader and the Forex market. Prop company is a company that finances traders. Trading sessions are the time frames for banks' work. Fibonacci numbers are elements of a number sequence in which the first two numbers are 0 and 1, and each subsequent number is equal to the sum of the previous two numbers. OTE (Optimal trade entry) – zone of optimal entry into a position, specifies the entry point into the position. Premium/Discount - sales area and purchase area. Balance - balance. Imbalance - disequilibrium. In the context of trading - price inefficiency. Fair Value Gap (FVG) is a graphical pattern indicating a price imbalance. Slippage is the difference in price that can occur between the time an order travels and its actual execution. Rebalance is the process of covering market imbalances. Fill - complete coverage of the FVG zone. Order Block is a certain price area where large market participants leverage their large volumes of purchases / sales by capturing reverse orders (liquidity), which leads to a sharp acceleration in price. Absorption is the closing of a subsequent candle or several subsequent candles (not necessarily the first) with a body below or above (depending on the direction) the body of a potential order block. It is the most important factor in validating a potential block. Breaker Block / BB (breaker) is an order block that breaks through and leads to a reversal of the price movement (BOS or Shift*), then becomes a breaker. In the future, it will act as a “support/resistance for price” zone during testing. Rejection Block is a separate form of order block in the form of a large wick that removes liquidity. Mean Treshold (MT) - the level of the middle (50%) of the OB body. 50% of the order block body is the second most important level that the price can test in the future. The level indicates the validity of the block. We must observe how price behaves with the MT level during the subsequent test. Profit - profit from the trades. Risk management is the process of making and executing management decisions aimed at reducing the likelihood of an unfavorable outcome and minimizing possible losses caused by its implementation. In trading, R is used to indicate possible risk. Discipline is strict and precise adherence to the rules accepted by a person for implementation. RR - Risk to Reward - the ratio of risk and reward (RR 1:3 would mean that I risk 1 to get 3). R is a conventional unit that the trader risks in a transaction. WinRate is an indicator of a trader's success, calculated as a percentage. Sideways movement (consolidation, sideways, Range, flat, range) is a market situation when the price of an asset is in a narrow range, without clear signs of an upward or downward trend. Deviation is the price going beyond the lateral movement in order to remove external liquidity. Indicators are tools based on statistical indicators of trading: prices, trading volumes, etc. Relative Strength Index (RSI) is a well-known indicator based on price momentum. It is widely used to measure the rate of price changes. PD Array Matrix - Premium/Discount matrix. It is expressed in the sequential arrangement of areas of interest (POI) and problem areas FTA within the premium / discount range. Point of Interest (POI) - area of interest. This is a certain price range on the chart from which a price reaction is expected and a position is entered. First Trouble Area (FTA) - the first problem area. In essence, this is also a POI, but formed against our main structural price movement. Usually acts an obstacle to the delivery of prices to the renewal of the structure, which leads to a “complex correction”. Fractality is the ability of prices to repeat identical price movements on different timeframes. Substructure is a full-fledged structural price movement on a lower timeframe, inside a senior impulse or corrective movement. Long Term - long-term perspective. Intermediate Term - mid-term perspective. Short Term - short-term perspective. ROI (Return on Investment) is an indicator of return on investment. FOMO – fear of missing out (Fomo) - a feeling of lost profits. Trading strategy is a set of rules that determine all the actions of a trader in the process of trading in financial markets. Investing is making a profit by helping projects in the early stages, when they have not yet entered the market. Medium/long-term speculation - making a profit by purchasing assets after the launch of the project. Market cap of a project is the circulating supply of an asset * at the current price of the asset. FDV (Fully Diluted Market Cap) - market capitalization at the current price when tokens are fully released to the market. The maximum (total) supply of tokens is the number of tokens when fully unlocked. The circulating (current) supply of tokens is the number of tokens that have been mined to date. Total market capitalization is the sum of all market capitalizations of projects. Dominance is an index that shows the ratio of the market capitalization of an asset and the overall market capitalization. Cumulative delta - cumulative delta over a certain period of time. It combines the accumulated delta information and then displays this information visually in the form of a histogram. Delta is the difference between market buy and sell orders. Volatility is a financial indicator that reflects how much the price of an asset or product changes in a short period of time. In other words, this is the range in which the price fluctuates during the day, week, month, year. Imbalance is the state of the market during a period when demand prevails over supply or vice versa. Transaction feed - detailed information on transactions, where you can see how much of an asset was bought/sold (volume), at what price, when bought/sold (time), which order was the initiating one, i.e. who sent the order from the market, buyer or seller (direction). Pump and Dump - a sharp increase in the exchange rate in the markets followed by a strong collapse. Mining is the process of processing transactions in blockchains using the Proof-of-Work consensus algorithm. Validation is the process of processing transactions in blockchains using the Proof-of-Stake consensus algorithm. The consensus algorithm is a technology that allows information to be added to the network without centralized intermediaries. Smart contract is an algorithm that allows certain actions to be performed on the blockchain and acts as a decentralized intermediary. Contracts, deferred payment systems, insurance - all this can be written in a smart contract. Scam - any type of fraud/unforeseen circumstances that caused the loss of assets. X - received or potential profit, which is measured by multiplying the deposit. Narrative is a market segment that receives a lot of attention and investment. For example, the AI sector. Whitepaper is a technical document that describes the basic principles of the protocol. Hold - holding assets for a long time. TGE (Token generation event) is the process of creating tokens, which most often starts when an asset is first listed on sites. The project announces its launch on a specific date and time. When this date and time is reached, a program is created with a predetermined number of tokens and operating parameters. Lockup - period of freezing/blocking of tokens. For example, lock 1 year start after TGE - one year of token freezing, which starts after listing. Vesting is a linear unfreezing of tokens. Usually you receive tokens once a month or quarter, in equal parts. For example, 10 month vesting starting on December 1, 2023 - 10 months linear vesting, we will receive tokens in equal parts over 10 months. Cliff is the same lock, but is more often used when there is a period of unfreezing along with vesting, for example, 3 month cliff followed by a 10 month vesting starting on December, 2023 - 3 months - complete freezing, after which 10 months you will receive tokens linearly in equal parts. Allocation is the amount per participant with which he can purchase assets. For example, allocation is $100-1500. This means you can purchase assets ranging from $100 to $1,500. Listing - the process of placing an asset at the market. Venture funds are organizations engaged in investments at the earliest stages. Most often, investments go into the idea, rather than the finished/working product. Seed Round is a round for large funds and investors. The best profit potential, but the biggest risks. Private Round is a round for smaller funds, or additional fundraising by large funds. The potential is worse, but the project already has some success. Public Sale/Round - a public investment round, anyone can participate. The worst potential, but the product is already functional. Tokensale - an event during which a Public Sale/Round is held. Tokens are sold to anyone. It is carried out to make a profit, as well as a more even distribution of tokens. ICO is a token sale on specialized centralized platforms. IDO is a token sale on decentralized platforms. IEO - token sale on exchanges. IGO is a token sale of gaming-related projects. Launchpad is a platform that helps projects launch a product. Assistance in marketing, economic model, initial investment and token sale. Tokenomics is the internal economy of the project. Describes the economic relationship between elements of the system. Supply/Token Supply - the number of tokens that the project issues as part of tokenomics. The supply can be: constant, inflationary and deflationary. TVL (Total Value Locked) - the volume of assets blocked on the network. CEX is a centralized exchange. DEX is a decentralized exchange. NFT is a non-fungible token. Technology that enables the digitalization of physical assets as well as images, videos and music. PFP (Profile Picture/avatar) - NFT, which is used as an avatar on Twitter, Discord, Telegram. Minting (Mint/Mint/Mining) is the process of creating an NFT token. The best example is the creation of a new NFT collection by the project to develop its ecosystem. Whitelist is a list of users who receive priority access to a specific action (purchase of NFTs, participation in a sale, access to a product, etc.). Reveal is the process of opening a real NFT image. When participating in the launch of a collection of projects, very often you initially receive some kind of blurry image that opens after some time. After opening, you can see the characteristics of your NFT and its rarity. Flip (Flip/flipper) - purchase of NFT for the purpose of subsequent resale. To put it simply, it's just speculation. People look for NFTs for less and sell them for a little more. Floor Price (Floor/Floor/flur) - lower price limit. Using this information, you can track the dynamics of interest in the collection. JPGs are NFTs that can be in the format of JPG, PNG, GIF, audio/video files or computer games. Delist - the process of removing a token or NFT from an exchange/marketplace. Roadmap is an action plan that a project plans to implement to achieve its goals. Gas - a sharp increase in the cost of gas (commission) in the Ethereum network, when a massive project enters the market in which everyone wants to participate. To participate in such projects, you need to conduct transactions from your wallets. A large number of such transactions loads the network and increases the transfer fee. DYOR (Do your own research/duor) - conducting your own research on the project. A person who makes such a note abdicates his responsibility for advice. Airdrop is a crypto-activity in which a project distributes its tokens or NFTs for simple actions. Most often used for media purposes. Retrodrop is a crypto-activity in which a project distributes its tokens for participation in the early work of the product. Most often used to increase on-chain parameters, test the service under load, and distribute tokens. Testnet is a beta version of the project, which is intended to test the functionality and performance of the product. Faucet is a service that allows you to obtain test tokens for working with the test version of the project. Mainnet - launched version of the product. Nodes - network nodes that allow the network to function. Play-to-Earn/Play2Earn/P2E is a crypto-game concept that allows you to receive project tokens for playing time and activity. Metaverse are ecosystems trying to develop the direction of virtual worlds. DeFi (Decentralized Finance) - decentralized finance. A separate segment of the crypto market trying to create a decentralized analogue of the current financial system (TradeFi). DAO (Decentralized Autonomous Organization) - decentralized autonomous organizations. A direction that develops solutions for decentralized management. Staking is the delegation of assets to validators. Farming/Yield farming is the process of making profit through DeFi protocols. Pharming allows you to receive rewards in the form of protocol tokens for providing loans, receiving loans, participating in liquidity pools, as well as through other forms of interaction with platform protocols. Landing - depositing one's funds in order to receive interest or a loan in order to receive third-party assets in return for one's own. Oracles are decentralized applications whose task is to collect reliable information from the outside world and convert it into a form convenient for blockchain applications. AMA session (Ask Me Anything) is an event held in text, voice and video format, at which the project team communicates with users and answers questions. Crosschain is a decentralized application that allows you to connect different blockchains. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!

Education

by Crypto4light

Guide to Altcoin Growth Explosions The whispers of "altseason" echo through the cryptosphere, igniting the imaginations of investors with visions of explosive altcoin growth. But what exactly is this mythical period, and how can you navigate its thrilling (and potentially treacherous) waters? Deciphering the Altcoin Landscape: Imagine Bitcoin as the majestic oak, anchoring the crypto forest with its established presence. Altcoins, on the other hand, are the diverse flora teeming around it, each offering unique characteristics and purposes. From the DeFi tokens powering decentralized finance to the meme-fueled Dogecoin, the altcoin landscape is a vibrant tapestry of innovation and experimentation. Understanding Altseason's cycle: Think of altseason as the spring bloom of the crypto market. Just as flowers burst forth with vibrant colors, altcoins experience a surge in growth during this period. This happens when investors, having secured profits from Bitcoin's rise, seek new avenues for higher returns, shifting their focus to altcoins. Catching the Altseason Wave: While predicting the exact arrival of altseason is like trying to pinpoint the exact moment a flower blooms, there are key indicators you can watch: The Bitcoin Dominance Symphony: When Bitcoin's market share (dominance) starts to dip, it's often a sign of capital flowing towards altcoins. Track this metric closely, as it can be an early harbinger of the altseason melody. The Altcoin Season Index: This handy tool (link provided in the original article) acts like a conductor, orchestrating an index that reflects altcoin performance against Bitcoin. A score above 75% might signal the start of the altseason concerto. Choosing Your Altcoin Stars: Don't be swayed by the allure of the season alone! Before diving in, carefully consider these factors: Market Capitalization: Look beyond the current valuation and examine historical trends. Has the market cap experienced significant fluctuations? A stable market cap indicates a more established project. Project Innovation: Does the project address a real-world problem or offer a unique value proposition? Don't get swept away by hype; true innovation has staying power. The Orchestra Behind the Project: A strong, transparent team and an engaged community are essential for long-term success. Look for projects with a clear roadmap and a team that inspires confidence. Tokenomics: Understanding the Score: This refers to the coin's supply, distribution, and release schedule. How will the release of new coins impact the price? A well-defined tokenomic model fosters trust and sustainability. Trading Volume Harmony: Don't limit yourself to the major exchanges. Explore diverse platforms to potentially discover hidden gems with lower trading volume but high growth potential. Learning from the Past, Embracing the Future: While past performance isn't a crystal ball for the future, analyzing top gainers from previous altseasons (like Gala, Axie Infinity, and Solana in 2021) can offer valuable insights. Remember, the crypto market is a dynamic ecosystem, and new projects with groundbreaking ideas are constantly emerging. The Power of Research: Your Guidebook to Altseason: ETH-BTC pair : The ETH/BTC pair is one of the most important indicators to watch when trying to determine when altseason will begin. This is because Ethereum is the second-largest cryptocurrency by market capitalization, and it is often seen as a bellwether for the rest of the altcoin market. When the ETH/BTC pair is rising, it means that Ethereum is outperforming Bitcoin. This is often a sign that investors are becoming more bullish on altcoins, and that altseason may be on the horizon. Conversely, when the ETH/BTC pair is falling, it means that Ethereum is underperforming Bitcoin. This can be a sign that investors are becoming more risk-averse, and that altseason may be coming to an end. Altseason can be a lucrative opportunity, but venturing in without proper research is like navigating a dense forest blindfolded. Utilize the wealth of information available in the crypto community, explore various tools and resources, and conduct your own due diligence before making any investment decisions. Diving into 2021's explosive altseason: check out these top performers: Gala (GALA) +10891.26%; Axie Infinity (AXS) +10598.52%; Solana (SOL) +7998.67%; Fantom (FTM) +7155.14%; Polygon (MATIC) +6805.13%; Rari Governance Token (RGT) +5491.43%; Terra (LUNA) +5071.23% (well, it was there); Dogecoin (DOGE) +3855.02%; PancakeSwap (CAKE) +2963.16%; The Sandbox (SAND) +1896.16%. *Data taken from coinmarketcap. Remember, altseason is not a guaranteed path to riches. Invest responsibly, stay informed, and enjoy the journey! The crypto market is an ever-evolving landscape, and altseason offers a unique opportunity to witness and potentially participate in its growth. By understanding the fundamentals, making informed choices, and staying adaptable, you can navigate this dynamic season with knowledge and potentially reap the rewards. P.S. Share this article with your crypto-curious friends and start your own discussions about altseason!

Education

by Yaroslav_Krasko

Mastering Risk Management: Guide from TOP investor Welcome to the comprehensive guide on mastering risk management in cryptocurrency trading. In this detailed tutorial, we'll walk you through the essential principles of calculating stop losses, determining risk percentage per trade, and strategically placing stops for optimal risk mitigation. Whether you're a novice or an experienced trader, understanding and implementing effective risk management is paramount for sustained success in the volatile crypto market. Opening a Position on TradingView Brief overview of TradingView and accessing the "projection" section for long positions. A step-by-step guide on how to initiate a long position using TradingView. The 5 Fundamental Principles: Introduction to the five key principles of effective risk management. 1: Trend Following 2: Not Gambling but Trading 3: Entry after retest 4: Stick to your strategy 5: Don't overtrade Calculating Stop Losses 2.2 Risk Percentage Per Trade: Explanation of the concept of risk percentage per trade (e.g., 0.5% of the trading capital). Position sizing is the process of allocating a specific percentage of your crypto assets for trading, with the goal of managing risk effectively. To calculate your position size: Determine Your Risk Per Trade: Decide the percentage of your total account value you're comfortable risking on a trade. Typically advised to risk 1–3% of your trading balance per trade. For example, with a $5,000 balance and a 2% risk, you'd only lose $100 per trade. Set Your Stop-Loss: Determine your stop-loss level, the point at which you exit a trade if it moves against you. The stop-loss helps control losses and is crucial for risk management. Consider Position Size: Use your risk percentage and stop-loss to calculate the position size. Position size varies based on the distance of the stop loss; it's smaller for wider stops and larger for tighter stops. Proper position sizing ensures consistent risk, regardless of the trade amount. By following these steps, you can strategically size your positions, balancing risk and potential rewards in your crypto trading endeavors. Strategic Placement of Stop Losses Hiding Behind Local Lows: The rationale behind placing stop losses just below local lows for effective risk containment.Beneath Manipulation Zones: Strategic placement of stop losses under zones susceptible to manipulation. The importance of avoiding regions where price is unlikely to return if manipulation has occurred. Practical Examples The Anatomy of a Good Stop Loss: Visual representation of a well-placed stop loss using real-life chart examples. 4.2 Pitfalls of Poorly Placed Stop Losses: Analysis of common mistakes in stop loss placement and their consequences. Conclusion: Empowering Your Trading Journey As we conclude this in-depth guide, remember that effective risk management is the cornerstone of successful trading. From understanding the basics of stop losses to strategically placing them based on market dynamics, each step contributes to minimizing potential losses and maximizing gains. Implement these principles in your trading strategy, adapt them to your risk tolerance, and embark on a journey of informed and calculated trading decisions. 💡 Mastering Risk | 📊 Setting Stop Losses | ⚖️ Calculating Risk Percentage | 🎯 Strategic Placement | 📈 Empowering Your Trades 💬 Engage in the discussion: Share your experiences with risk management, ask questions, and join a community committed to fostering intelligent and secure trading practices. 🌐✨

Education

by Yaroslav_Krasko

8 Things I Wish I Knew When Getting Started Here are some insights I've gathered over the years of trading experience 1. Position Sizing: A common issue for traders stems from taking positions that are too large. Emotional decision-making often takes over when you see your account balance decreasing. I've observed traders exiting trades prematurely to free up capital for what they perceive as a 'better opportunity'. Ideally, you should trade as if each share counts significantly. Emotion-driven decisions tend to lead to poor outcomes. While your goal is to make a profit, it's crucial to balance this with not trading from a place of fear. 2. Avoiding FOMO: The fear of missing out (FOMO) has led to the downfall of many trading accounts. We've all experienced moments of witnessing a stock, like CLOV, suddenly gaining traction in trading forums or chat rooms. The natural reaction might be to join in hastily, often abandoning solid trades for the allure of rapid gains. However, this usually leads to frustration as the market can quickly change direction. My advice is to steer clear of FOMO; assess trades on their merits rather than the hype. 3. Exit Strategy: One of the most common queries is about when to exit a trade. New traders often take profits too early and hold onto losing positions for too long. My key piece of advice is to focus on technical analysis rather than your current profit or loss. I exit a trade when the initial conditions that led me to enter it change. This approach requires a shift in mindset from profit/loss consideration to technical analysis. Interestingly, many experienced day traders prefer mental stops over hard stops, though they require experience and skill. 4. Journaling: Keeping a detailed record of your trades, whether through software or manually, is vital. This practice helps in analyzing your strengths and weaknesses. Understanding patterns in your trading, like the time of day when you're most successful or which types of trades work best for you, is crucial for improvement. 5. Buying Strategy: The common wisdom of 'Buy Low - Sell High' doesn't always hold. Sometimes, it's more effective to 'Buy High - Sell Higher', especially in the context of strong bullish momentum. Joining a trend can often be more profitable than waiting for the perfect low entry point. 6. Market Predictions: Avoid the trap of trying to predict market tops and bottoms. Following technical analysis is more reliable than going with gut feelings or trying to time the market. 7. Market Understanding: No one, not even economists, can claim complete market understanding. Trading based on market speculation or biases can lead to poor decision-making. Focus on the present market conditions. 8. Knowledge is Key: Lastly, don't trade what you don't understand. This seems straightforward, but many traders enter markets or trades without fully grasping the mechanisms at play, often leading to unnecessary losses. Understanding is crucial, especially in more complex trades like options. These insights are drawn from my experiences and observations in the trading world. Regards,

Education

Demystifying Algo Trading: A Comprehensive Guide for Beginners In the fast-evolving landscape of financial markets, algorithmic trading, commonly known as algo trading, has emerged as a powerful and accessible tool. Today we have created a comprehensive guide for beginners, breaking down the concept, exploring its benefits, and providing insights to facilitate a successful journey into algo trading. Are you ready? Let's dive in! Understanding Algo Trading The Role of Algorithms- Algo trading, at its core, involves using algorithms that have predefined sets of rules and instructions to automate the process of trading financial assets. Algorithms are the engines that drive trade decision-making. Trading algorithms execute trading entries and exits of varying complexity. Understanding how algorithms function and their role in the trading process is fundamental for beginners. If you are considering utilizing a trading algorithm, understand how it functions to the best of your abilities. Understanding how an algorithm will work can help limit downside risk or other unwanted results. Key Components of an Algo Trading System- An algo trading system is a sophisticated ensemble of components. These include data sources, where information about financial instruments is gathered; the algorithm itself, which interprets data and makes decisions; and the execution platform, which translates decisions into actual trades. Knowing these components and their interplay provides a foundational understanding of algo trading systems. Benefits and Advantages Speed and Efficiency- The primary advantage of algo trading lies in its speed. Algorithms can execute trades at a pace impossible for humans, capitalizing on even the slightest market fluctuations. This speed is not just a luxury but a necessity in today's fast-paced market, where opportunities and risks can arise and vanish in milliseconds. Complex Strategy Execution- Algorithms excel at handling intricate trading strategies involving multiple parameters and decision points. This complexity, which might overwhelm manual traders, is seamlessly managed by algorithms. They can simultaneously process vast amounts of data, identify patterns, and execute trades according to predefined criteria. Error Minimization- Emotions and errors often go hand in hand in traditional trading. Algo trading removes the emotional component, ensuring that trades are executed based on logic and predefined criteria. This absence of emotional decision-making minimizes the risk of costly errors caused by fear, greed, or hesitation. Access to Various Markets and Asset Classes- Algorithms can be set up to trade across different markets and asset classes simultaneously. This diversification is challenging for individual traders but is a strength of algo trading. By spreading trades across various instruments, traders can manage risk more effectively and seize opportunities in different financial arenas. Choosing the Right Algo Trading Platform Factors to Consider- Choosing the right platform involves more than just functionality. It encompasses factors like user-friendliness, asset coverage, and backtesting capabilities. A platform that aligns with your trading goals and preferences is essential for a seamless algo trading experience. TradingView is a notable platform. TradingView stands out for its social community and advanced analysis tools, providing a holistic trading experience. Trading algorithms can be launched from nearly any TradingView chart, and signals can be sent to various exchanges to execute trades via a third-party connector. Risk Management in Algo Trading The Importance of Risk Management- While the speed and precision of algo trading are advantageous, they can amplify losses if not managed properly. As a trader, we must remember that the algorithm will only do what it's told to do. Implementing risk management strategies, such as setting stop-loss and take-profit levels, is vital. This aspect of algo trading is not just about making profits; it's about safeguarding your capital and ensuring longevity in the market. Diversification as a Risk Mitigation Strategy- Diversifying trading strategies and portfolios can spread risk and prevent overexposure to a single asset or market condition. While individual trades may carry inherent risks, a diversified portfolio minimizes the impact of adverse movements in a specific instrument or sector. Diversification is a fundamental principle for risk-conscious algo traders, and this is why it is important to have algorithms trading different assets. Realizing Success in Algo Trading Continuous Monitoring- Algo trading is a dynamic field and not a set-it-and-forget method of trading. Each algorithm a trader runs needs to be continuously monitored for performance and functionality. A runaway algorithm can easily hurt any trader's capital. Successful algo traders adapt their strategies to changing market conditions. Avoiding over-optimization and remaining flexible are keys to sustained success. The ability to tweak algorithms based on evolving market dynamics ensures that algo traders stay relevant and effective over the long term. Conclusion Algo trading is not reserved for financial experts. It's a realm open to anyone willing to learn and adapt. The journey begins with understanding the basics, choosing suitable strategies, and embracing continuous learning. As you embark on your algo trading adventure, remember: it's not about predicting the future but navigating the present while utilizing the past. Happy trading!

Education

🔥 Learn To Trade With FT: Fibonacci Retracements As of today I will start a new series for the TradingView community: Learn To Trade With FieryTrading. I will be doing deep-dive analyses on different trading strategies to explain how they work and especially why they work. The idea behind this overview is to make you a better, more well informed trader. If you learn anything from this post, please give it a like! Learn To Trade With FT: Fibonacci Retracement Entry Introduction: Fibonacci retracements are a popular technical analysis tool used by traders to identify potential support and resistance levels in financial markets. Derived from the Fibonacci sequence, this tool can help you make more informed trading decisions. In this guide, we'll walk you through how to use Fibonacci retracements effectively and how to draw them accurately. Understanding the Fibonacci Sequence: Before diving into Fibonacci retracements, it's essential to understand the Fibonacci sequence. The sequence begins with 0 and 1, and each subsequent number is the sum of the two preceding ones. The sequence goes like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. The ratios derived from these numbers are used in Fibonacci retracements. The primary Fibonacci ratios used in retracements are: 0.236 (23.6%) 0.382 (38.2%) 0.500 (50.0%) 0.618 (61.8%) 0.786 (78.6%) 1.000 (100.0%) How to Draw Fibonacci Retracements: Select a Trend: Identify a significant price trend (either up or down) on your chart. Fibonacci retracement reversals usually work better in strong trends. Choose the Swing Points: Locate the swing points of the trend. A swing low is the lowest point in an upward trend, and a swing high is the highest point in a downward trend. Draw the Fibonacci Lines: Using Tradingview's Fibonacci Retracement Tool (ALT+F), draw a horizontal line from the swing low to the swing high (for an uptrend) or from the swing high to the swing low (for a downtrend). Identify Key Levels: The lines you've drawn will automatically divide the trend into various retracement levels, as per the Fibonacci ratios mentioned earlier. The most common levels to pay attention to are the 38.2%, 50%, and 61.8% retracement levels. Learn To Trade Once you have spotted a strong trend on the chart, it's to be expected that the price will pull back somewhat, which is where you will be waiting as an expert trader. Once the price starts pulling back, look at which Fibonacci Retracement it will stick. Once the price starts trading horizontally for a while, there's a decent probability that the Fibonacci Retracement will hold and that the price will continue its longer-term trend from there onwards. To make this strategy even better, try to combine it with the RSI. A severely oversold RSI after a pull-back from a strong bullish trend is likely to find support at one of the key Fibonacci Retracements. Put it on your chart and see for yourself! Note: this strategy is not a one-size-fits-all solution. Learn how to use it in conjunction with your current strategies. Use this strategy to create order in a world of chaos. Why Does This Work Like many other trading indicators and strategies, it's a self fulfilling prophecy . If a lot of people is watching a certain indicator or line, it's more likely that they will react to it. Same reason that supports and resistances often cause reversals, same goes for longer period moving averages like the 50 and 200 period MA's. Real Life Examples In the screenshots below I'm going to show that the 0.382 / 0.5 / 0.618 Fibonacci Retracements offer strong support and resistance on Bitcoin's chart in practically every timeframe. Skilled traders were ready for the Fibonacci Retracements and got good entries in their trades. Next time this can be you! This strategy works on every asset. Apply correct risk-management on your trades by always using a stop-loss.

by FieryTrading

Mastering Crypto Trading with Fixed Volume Range Profile 📊🚀Fixed Volume Range Profile (FVRP) is a powerful tool for crypto traders seeking deeper insights into market dynamics. It allows you to visualize price and volume data in a unique way, helping you make informed trading decisions. In this comprehensive guide, we'll walk you through the fundamentals of using Fixed Volume Range Profile for trading cryptocurrencies. Understanding Fixed Volume Range Profile (FVRP): FVRP is a graphical representation of price and volume data within specific price ranges. It divides the trading range into equal volume intervals, providing a snapshot of where most trading activity occurred. Key elements of FVRP include: Price Range: The trading range under consideration, typically from a few hours to several days. Volume Intervals: Equal-volume increments within the price range. Profile Bars: Vertical bars representing the volume distribution at each price level. How to use it ? 1. You need to open any stock/crypto/indices that you want . 2. Look at screenshot to open this tool 👇 3. Attach first point to the start of impulse (Highest point before trend change) and second to the end of impulse (Lowest point of impulse) . Or identify biggest trading volumes in a range 👇 Some more samples 👇 Using FVRP for Crypto Trading: Now, let's explore how to utilize Fixed Volume Range Profile for crypto trading: 1. Identifying Key Levels: Start by selecting the cryptocurrency and the specific timeframe you want to analyze. Plot the FVRP on your chart. This will create profile bars within the specified price range. Pay attention to areas where the profile bars are the tallest or thickest. These represent high-volume nodes and are crucial support/resistance levels. 2. Trading Signals: High-Volume Nodes: When the price approaches a high-volume node, it often acts as strong support or resistance. Look for potential buy/sell signals near these levels. Gaps: Gaps between profile bars indicate a lack of trading activity in that range. Breakouts from these gaps can signal strong price movements. 3. Combining with Other Indicators: To enhance your trading strategy, consider using FVRP in conjunction with other technical indicators like Moving Averages, RSI, or MACD. Confirm your signals with multiple indicators to reduce false alarms. 4. Risk Management: Always use stop-loss and take-profit orders to manage risk. Determine your position size based on your risk tolerance and the distance to your stop-loss. 5. Monitoring Market Sentiment: FVRP can provide insights into market sentiment. For example, a concentrated volume node near a resistance level may indicate strong selling pressure. 6. Backtesting: Before trading with real capital, practice using FVRP on historical data to refine your strategy. Conclusion: Fixed Volume Range Profile is a valuable tool that empowers crypto traders with a unique perspective on market data. By identifying key support/resistance levels, gauging market sentiment, and combining FVRP with other indicators, you can make more informed trading decisions. However, remember that no single tool guarantees success in trading. Always approach the market with caution, practice risk management, and continuously educate yourself to stay ahead in the ever-evolving world of crypto trading. 📊💹🚀

Education

Meditations for the Modern Trader Drawing inspiration from the timeless wisdom of Marcus Aurelius, this guide distills ancient Stoic principles into modern trading strategies. Dive in to discover how to strengthen your trading mindset and unlock your unique edge. 1. On Emotion and the Markets Remember: The markets are indifferent to your emotions. Anxiety, joy, desperation – these are constructs of your own mind and have no bearing on the ebb and flow of currencies or stocks. Allow your decision-making to be guided not by the heat of the moment, but by calculated, unbiased reasoning. 2. The Impermanence of Success and Failure Today you may rejoice in your gains, yet tomorrow, you might lament your losses. Both states are transient, just as day turns to night. Strive, then, not for constant triumph, but for a balanced mind that remains unperturbed by these shifts. 3. Humility in Profit, Acceptance in Loss Each transaction in the market offers an opportunity to learn humility and acceptance. When you profit, do not let arrogance cloud your judgment. When you lose, do not fall into the abyss of self-pity. Recognize that both are integral aspects of the trader's journey. 4. The Futility of Prediction Remember that no man can predict the movements of the market with unerring accuracy. Do not let fear of the unknown cripple your actions. Instead, make educated decisions based on research and your understanding of the market, accepting the inherent uncertainty of the trade. 5. On Overindulgence Excessive trading is akin to overindulgence in food or drink - it may bring temporary satisfaction but can lead to long-term harm. Moderation is key. Know when to act and when to remain still. 6. The Trap of Comparisons Comparing oneself to others is a distraction and an invitation to distress. Your path in trading is your own and must not be dictated by another’s success or failure. Seek to better yourself and not simply to surpass others. 7. Learning From Mistakes Each mistake is an opportunity for growth. Instead of fearing errors, embrace them as teachers. Learn from them, adjust your strategies, and forge ahead with newfound knowledge. 8. Acceptance of Market Forces Just as one must accept the changing of the seasons, accept the cycles of the market. There will be times of plenty and times of scarcity. In both, stay steadfast and remember that this, too, shall pass. 9. The Power of Patience Do not expect instant success in your trading endeavors. Mastery comes with time and experience. Be patient with your progress and do not rush the journey. The fruit of patience is often sweet. 10. The Mind as the Trader's Greatest Asset Your greatest tool in trading is not a strategy or algorithm, but your mind. Cultivate it with knowledge, exercise it with practice, and keep it balanced with mindfulness. In a balanced mind, reasoned decision-making thrives. Trade with wisdom, patience, and acceptance, and let not the waves of market tides disturb your inner peace. Embrace the journey with all its ups and downs, for this is the path of the enlightened trader. Which Stoic principle resonates most with your trading approach?

Education

🐼Mastering the Art of Forex Trading Strategies🐼 Key words: ,,,,, , ,, 🐼The world of forex trading is as fascinating as it is dynamic. To thrive in this fast-paced market, developing a robust trading strategy is paramount. In this article, we will explore the key points that can help you identify and refine your trading strategy, bringing you closer to success. 🐼Identifying Market Trends: Understanding market trends is crucial in making informed trading decisions. By analyzing moving averages, trend lines, and price patterns, you can identify the prevailing market direction and potential opportunities. 🐼Implementing Effective Risk Management Strategies: Mitigating risks is a vital aspect of any trading strategy. Set appropriate stop-loss orders, determine suitable position sizes, and manage leverage wisely to protect your capital and minimize exposure to potential losses. 🐼Incorporating Technical Analysis Tools: Technical analysis tools provide valuable insights into market behavior. Use oscillators like the Relative Strength Index (RSI) to identify overbought or oversold conditions, Fibonacci retracement levels to pinpoint support and resistance levels, and Bollinger Bands to gauge market volatility. 🐼Staying Informed about Market News and Economic Calendar Events: Keeping up with the latest news and economic events can provide valuable context for your trading strategy. Monitor economic indicators such as GDP releases, central bank meetings, and geopolitical events to understand potential impacts on currency movements. 🐼Conclusion: Crafting a successful forex trading strategy requires a comprehensive approach that covers market trend identification, risk management, technical analysis, and staying informed about market news. By incorporating these key points into your strategy, you can enhance your trading skills and increase your chances of long-term success in the forex market. Remember, forex trading is a continuous learning journey, so adapt and evolve your strategy as the market evolves. Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸

Education

by AnabelSignals

✅The DO’S And DON’TS Of Risk Management❌ ❤️Risk management is a crucial component of forex trading to help minimize potential losses. In this article, we’ll explore the do’s and don’ts of risk management in forex trading. 🧡DO’S 💁🏼‍♀️Set a stop-loss order: A stop-loss order is a pre-set level at which a trade will automatically close, thus limiting the loss on an open position. 💁🏼‍♀️Diversify your portfolio: Spread your investments across multiple currency pairs to avoid exposure to a single currency’s risks. 💁🏼‍♀️Use leverage wisely: Leverage allows traders to invest more than their account balance. However, it also increases the potential risk. Only trade with leverage if you fully understand how it works. 💁🏼‍♀️Keep an eye on economic events: Economic events can impact forex markets. Keeping a close eye on them can help you adjust your trading strategy accordingly and avoid unexpected losses. 💁🏼‍♀️Use risk-reward ratio: It is essential to have a clear risk-reward ratio in mind before entering a trade. This ratio should be based on your established trading strategy and the probability of success. 💙DON’TS 🙅🏼‍♀️Don’t invest more than you can afford to lose: This is a fundamental rule of investing in any financial market. Never invest more than you can afford to lose. 🙅🏼‍♀️Don’t let emotions drive your trading: Emotions such as fear, greed, and hope can lead to impulsive decisions and cause significant losses. 🙅🏼‍♀️Don’t ignore fundamental analysis: Fundamental analysis helps traders understand a country’s economic and political situation, which can significantly impact forex markets. 🙅🏼‍♀️Don’t follow the herd: It is essential to have your own trading strategy and stick to it. Following others' trades blindly can lead to significant losses. 🙅🏼‍♀️Don’t trade without a strategy: A trading strategy helps you make informed decisions and minimize the risks of trading. Not having a strategy can lead to impulsive decisions and significant losses. 🖤 In conclusion , risk management is a crucial component of forex trading. It is essential to follow the do’s and don’ts mentioned above to minimize potential losses and make informed decisions. Remember, successful trading comes with experience, discipline, and patience. Happy trading! Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸

Education

by AnabelSignals

Stock Heatmap: The Ultimate Guide for Beginners (2023)How to use the Stock Heatmap on TradingView to find new investment opportunities across global equity markets including US stocks, European stocks, and more. Step 1 - Open the Stock Heatmap Click on the "Products" section, located at the top center when you open the platform. Then click on "Screeners" and “Stock” under the Heatmap section. Members who use the TradingView app on PC or Mac can also click on the "+" symbol at the top of the screen and then on "Heatmap - stocks". Step 2 - Create a Heatmap with specific stocks Once the Heatmap is open, you have the capabilities to create a Heatmap based on a number of different global equity markets including S&P 500, Nasdaq 100, European Union stocks, and more. To load these indices, you must click on the name of the current selected index, located at the top left corner of the screen. In this example, we have the S&P 500 heatmap loaded, but you can load any index of your choice by opening the search menu and looking for the index of your choice. Step 3 - Customize the Stock Heatmap Traders can configure their Heatmap to create highly custom visualizations that’ll help discover new stocks, insights, and data. In this section, we’ll show you how to do that. Keep on reading! The SIZE BY: Button changes the way companies are sized on the chart. If we click on "Market Cap" in the top left corner of the Heatmap, we can see the different ways to configure the heatmap and how the stocks are sized. By default, "Market Cap" is selected with the companies, which means a company with a larger market capitalization will appear bigger than companies with smaller market capitalizations. Let’s look into the other options available! Number of employees: It measures the size of the squares based on the number of employees in the company. The larger the square size, the more employees it has relative to the rest of the companies. For example, in the S&P 500, Walmart has the largest size with 2.3 million employees. If we compare it to McDonalds, which has 200,000 employees, we can see that Walmart's square size is 11 times larger than McDonalds. This data is usually updated on an annual basis. Dividend Yield, %: If you choose this option, you will have the size of the squares arranged according to the annual percentage dividend offered by the companies. The higher the dividend, the larger the size of the square. It is important to note that companies with no dividend will not appear in the heatmap when you have chosen to arrange the size by Dividend Yield, %. Price to earnings ratio (P/E): It is a calculation that divides the share price with the net profit divided by the number of shares of the company. Normally the P/E of a company is compared with others in its own sector, i.e. its competitors, and is used to find undervalued investment opportunities or, on the contrary, to see companies that are overvalued in the market. Oftentimes a high P/E ratios indicate that the market reflects good future expectations for these companies and, conversely, low P/E ratios indicate low growth expectations. Going back to heatmaps, it will give a larger square size to those companies with higher P/E ratio over the last 12 months. Companies that are in losses will not appear in the heatmap as they have an undetermined P/E. Price to sale ratio: The P/S compares the price of a company's shares with its revenue. It is an indicator of the value that the financial markets have placed on a company's earnings. It is calculated by dividing the share price by sales per share. A low ratio usually indicates that the company is undervalued, while a high ratio indicates that it is overvalued. This indicator is compared, like the P/E ratio, to companies in the same sector and is also measured over the most recent fiscal year. A high P/S indicates higher earnings expectations for the company and therefore could also be considered overvalued, and vice versa, companies with a lower P/S than their competitors could be considered undervalued. Price to book ratio: The P/B value measures the stock price divided by the book value of its assets, although it does not count elements such as intellectual property, brand value or patents. A value of 1 indicates that the share price is in line with the value of the company. High values indicate an overvaluation of the company and below, oversold. Again, as in the P/E and P/S Ratio, it is recommended to compare them with companies of the same sector. Regarding the heatmaps, organizing the size of the squares by P/B gives greater size to companies with high values and it is measured by the most recent fiscal year. Volume (1h, 4h, D, S, M): This measures the number of shares traded according to the chosen time interval. Within the heatmaps comes by default the daily volume, but you can choose another one depending on whether your strategy is intraday, swing trading or long term. It is important to note that companies with a large number of shares outstanding will get a higher trading volume on a regular basis. Volume*Price (1h, 4h, D, S, M): Volume by price adjusts the volume to the share price, i.e. multiplying its volume by the current share price. It is a more reliable indicator than volume as some small-cap stocks or penny stocks with a large number of shares would not appear in the list among those with the highest traded volume. Also available in 1-hour, 4-hour, daily, weekly and monthly time intervals. COLOR BY: In this area we will be able to configure how individual stocks are colored on the Heatmap. If you’re wondering why some stocks are more red or green than others, don’t fret, as we’ll show you how it works. For example, click on the top left of the Heatmap where it says "Performance D, %" and you’ll see the following options: Performance 1h/4h/D/S/M/3M/6M/YTD/Year (Y), %: This option is the most commonly used, where we choose the intensity of the colors based on the performance change per hour, 4 hours, daily, weekly, monthly, in 3 or 6 months, in the current year, and in the last 12 months (Y). Tip: this feature works in unison with the heat multiplier located at the top right of the Heatmap. By default, x1 comes with 3 intensity levels for both stocks in positive and negative, as well as one in gray for stocks that do not show a significant change in price. This takes as a reference values below -3%/-2%/-1% for stocks in negative or above +1%/+2%/+3% for stocks in positive and each of the levels can be turned on or off independently. As for how to configure this parameter, you can use the following settings according to the chosen intervals. For 1h/4h intervals, multipliers of: x0.1/x0.2/x0.25/x0.5 are recommended. For daily heat maps, the default multiplier would be x1. And finally, for weekly, monthly, 3 or 6 months and yearly intervals, it is recommended to increase the multiplier to x2/x3/x5/x10. Pre-market/post-market change, %: When this option is selected, you can monitor the changes before the market opens and the after hours trading (this feature is not available in all countries). For example, if we select the Nasdaq 100 pre-market session change, we will see the day's movements between 4 a.m. and 9:30 a.m. (EST time zone). Or, if we prefer to analyze the Nasdaq 100 post-market, we will have to choose that option; this would cover the 4 p.m. to 8 p.m. time zone. For heatmaps in after-hours trading we recommend using very low heat multipliers (x0.1; x0.2; x0.25; x0.5). Relative volume: This indicator measures the current trading volume compared to the trading volume in the past during a given period and it measures the level of activity of a stock. When a stock is traded more than usual, its relative volume increases. Consequently, liquidity increases, spreads are usually reduced, there are usually levels where buyers and sellers are fighting intensely and where an important trend can occur. The possible strategies are diverse. There are traders who prefer to enter the stock at very high relative volume peaks, and others who prefer to enter at low peaks, where movements tend to be less parabolic in the short term. In the stock heatmap, relative volume is identified in blue colors. Heat multipliers of x1, x2 or x3 are usually the most common for analyzing the relative volume of stocks. Let's do an example: Imagine that we want to see the most unusual movements in today's Nasdaq 100 after the market close. We select the color by Relative Volume and apply a default heat multiplier of x1. Then, in order to be able to see only those stocks that stand out the most, we uncheck the numbers 0; 0.5; 1 at the top right of the screen. After this, we will have reduced the number of stocks to a smaller group, where we will be able to see chart by chart what has happened in them and if there is an interesting opportunity for trading. Volatility D, %: It measures the amount of uncertainty, risk and fluctuation of changes during the day, i.e., the frequency and intensity with which the price of an asset changes. A stock is usually referred to as volatile when it represents a very high volatility compared to the rest of the chosen index. Volatility is usually synonymous with risk, since the price fluctuation is greater. For example, we want to invest in a stock with dividends on the US market, but we are somewhat averse to risk. To do so, we decide to look for a stock with a high dividend yield with low volatility. We select the index source "S&P 500 Index", then size by "Dividend yield, %" and color by "Volatility D, %". Now, we deactivate the heat intensity levels higher than 2%, but higher than 0% (those that do not suffer movement, usually have low liquidity). From the list obtained, we would analyze the charts of the 10 companies that offer us the best dividend. Gap, %: This option measures the percentage gap between the previous day's closing candle and the current day's opening candle, i.e. the difference in percentage from when the market closes to when it opens again. GROUP BY: Here you can enable or disable the group mode. By default all stocks are grouped by sector, but if you select ‘No group’, you will see the whole list of companies in the selected index as if it were a single sector. It is ideal for viewing opportunities at a general level, you can sort directly by dividend percentage and see the companies in the index with the best dividend from highest to lowest or, for example, the best yielding stocks by market capitalization size. Another important note is that when you have chosen to group stocks by sector, you can zoom in on a specific sector by clicking on the sector name. Doing so, you will be able to analyze the assets of that sector in more depth. TOGGLE MONO SIZE: Here you can split all the stocks in the selected index completely equally in size, while still respecting the order of the chosen configuration. That is, if we have toggled the mono size by market cap, all the stocks will have the same square size with the first ones being the ones with the largest capitalization, from largest to smallest. FILTERS: One of the most interesting settings, where it allows you to filter certain data to eliminate "noise" and have a selection of interesting stocks according to the chosen criteria. It is important to note that in filters we can see in each of the parameters where most of the stocks are located by vertical lines of blue color. It is especially useful in indexes where all stocks of a certain country are included, for example, the index of all US companies. Making a good filter will help you find companies in a heatmap with very specific criteria. The parameters are the same as those found in the SIZE BY section, i.e. market cap, number of employees, dividend yield, price to earnings ratio, price to sales ratio, price to book ratio, and volume (1h/4h/D/W/M). Primary listing: When you work on an index with stocks that may be, for example, from another country or not traded within the main market, they will be categorized outside the primary listing. STYLE SETTINGS: Here you can change the content of the inner part of the heatmap squares: Title: The company symbol or ticker (e.g., AAPL - Apple Inc.). Logo: The company logo. First value: Shows you the value you have chosen in the COLOR BY section (performance 1h/4h/D/S/3M/6M/YTD/Y, pre-market and post-market change, relative volume, volatility D, and gap). Second value: You can choose between the current price of the asset or its market cap. These values are also available when you hover your mouse over one of the stocks and hold it over its square for a few seconds. SHARE: On TradingView, we can easily share our trading analysis and our heatmaps! You can download your Heatmap as images or you can copy the link to share it across social networks like Facebook,Twitter, and more. If you made it this far, thanks for reading! We look forward to seeing how you master the Heatmap and all it has to offer. We also want to hear your feedback! Leave us your comments below! 👇 - TradingView Team

Education

Sell Order GJ Selling GJ in range. Will target 4hr support, if we see a break it could open our target to 181.300

Short

Updated

👻The Movers and Shakers: Meet the Big Forex Players👻 🍀The forex market is a dynamic and complex marketplace, with billions of dollars changing hands every day. At the center of this volatile financial landscape are a handful of key players who wield immense power and influence over the direction of global currencies. In this article, we'll introduce you to some of the biggest and most influential forex market players. 🌸The Central Banks: "We set the tone for the entire forex market." Perhaps the most important forex market players are the world's central banks. These powerful institutions have the ability to control the supply and demand of their respective currencies, through interest rate policies and other monetary maneuvers. Whenever a central bank makes a move, traders around the world sit up and take notice. 🌺The Big Banks: "We are the gatekeepers of the forex market." Big banks are another major group of forex market players, and they play a critical role in providing liquidity to the market itself. These institutions act as intermediaries, buying and selling currencies on behalf of their clients and helping to facilitate trades between different market players. 🌼Hedge Funds and Trading Firms: "We thrive on volatility and uncertainty." Hedge funds and trading firms are a relatively new entrant to the forex market, but they have quickly become some of the most important players. These firms are often staffed by experienced traders and analysts who use complex algorithms and trading strategies to capitalize on short-term market movements. 🌹In conclusion, the forex market is a complex and ever-evolving landscape, but understanding the key players involved can help investors and traders make more informed decisions. Whether you're following the moves of central banks, working with big banks, or leveraging the insights of hedge funds and trading firms, the forex market is full of opportunities for those who are willing to take the risk. Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸

Education

by AnabelSignals

👻3 Steps To Become A Professional Trader👻 Becoming a professional trader is not an easy task. While trading may seem exciting and lucrative, it requires dedication, discipline, and a sound understanding of the markets. In this article, we’ll share with you three key steps to becoming a professional trader. 🌺Step 1: Build a Strong Foundation Before beginning your journey as a trader, it’s essential to build a strong foundation. This involves educating yourself about the financial markets, including learning about different trading strategies, technical analysis, risk management, and market psychology. The good news is there are plenty of resources available online to learn about trading principles and strategies. Another part of building a strong foundation involves studying the market and practicing with demo accounts. Demo accounts allow you to practice trading in a simulated environment that replicates the real market. 🌸Step 2: Develop a Trading Plan Developing a trading plan iscrucial to becoming a successful trader. A trading plan should outline your objectives, risk management strategies, trading rules, and decisions about entry and exit points. It would help if you also identified what type of trader you are, whether that’s a day trader, swing trader, or a position trader. A trading plan gives you a framework to base your trading decisions on, which can help you remain disciplined and make smart choices based on data, not emotions. 🌼Step 3: Consistency is Key Consistency is key in trading. It’s not enough to have a single profitable trade; you need to be able to make profitable trades consistently. To achieve this, you need to have patience, discipline, and a strong mindset. One of the essential aspects of consistency in trading is understanding and managing risk. This involves limiting potential losses and setting profit targets to ensure you don’t go overboard. Lastly, you need to set realistic expectations and maintain good habits like keeping a trading journal, analyzing your trades, and continuously improving your trading strategies. In conclusion, while there isn’t a specific recipe for success when it comes to trading, these three steps outline the fundamental elements of becoming a professional trader. With dedication, effort, and discipline, you too can make a living or even a fortune from trading! Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸

Education

by AnabelSignals

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