USD/CHF Supply and Demand SetupThe two marked up zones above could be potential OB's. Therefore I am looking for a Short here.
Further information can be found in the chart.
Learning
RISK : REWARD. Visualized breakdown
⚠️Regardless of whether you prefer day trading or swing trading, you need to understand the fundamental concepts regarding risk. They form the basis of understanding the market, managing trading activities, and investment decisions. Otherwise, you will not be able to protect and increase your balance.
We have already discussed risk management, position size, and stop-loss setting. But if you are actively trading, answer two important questions. How does the growth potential relate to potential losses? In other words, what is your risk-reward ratio?
In this article, we will discuss how to calculate the risk-to-profit ratio for any transaction.
✅What is the ratio of risk and profit?
🟢The risk-reward ratio (risk/reward or R/R ratio) allows you to understand what risk a trader is taking for the sake of a potential reward. In other words, it shows what the potential profit is for every dollar you risk when investing.
🟢The calculation itself is very simple. The maximum risk is divided by the net target profit. How exactly? First, think about where you want to enter into the transaction. Decide where you will take profit (if the trade is successful) and where to place a stop loss (if it is a losing trade). This is extremely important for effective risk management. Good traders set profit targets and stop-loss before entering a trade.
Now you have entry and exit points, that is, you can calculate the ratio of risk and profit. To do this, you need to divide the potential risk by the potential profit. The lower this coefficient is, the more potential profit you will receive per "unit" of risk. Let's figure out how it works.
✅How to calculate the ratio of risk and profit
🟢Let's say you want to open a long position on bitcoin. You perform an analysis and determine that your take profit order will be 15% of the entry price. Next, you have to answer the following question: where your position will be closed in case of a market reversal. This is where you will have to set a stop loss. In this case, you decide that your cancellation point will be 5% of the entry point.
It is worth noting that it, as a rule, should not be based on arbitrary percentage numbers. The profit target and stop loss should be determined based on market analysis. Technical analysis indicators are very useful for solving this problem.
🟢So, our profit target is 15%, and the potential loss is 5%. What is the ratio of risk and profit? 5/15 = 1:3 = 0,33. Everything is simple. This means that for each unit of risk we potentially win three times more. In other words, for every dollar we risk, we can get three dollars. Thus, if we have a position worth $100, then we risk losing $5 with a potential profit of 15.
🟢You can also move the stop loss closer to our entry to reduce this ratio. However, the entry and exit points should not be calculated arbitrarily, but solely based on analysis. If a trading position has a high risk-to-profit ratio, it is probably not worth "arguing" with the numbers and hoping for success. In this case, we recommend choosing another position with a good risk-reward ratio.
‼️Please note: positions with different sizes may have the same risk-to-profit ratio. For example, if we have a position worth $10,000, we risk losing $500 for a potential profit of $1,500 (the ratio is still 1:3). The ratio changes only if we change the relative position of our target and stop loss.
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CANDLESTICK PATTERN TRADING | Engulfing Candle 📚
Hey traders,
In this post, we will discuss a classic candlestick pattern formation each trader must know - the engulfing candle.
Key properties of this pattern:
🔑 Engulfing candle is a reversal pattern.
🔑 Engulfing candle can be bullish or bearish.
❗️Also, remember that this candle demonstrates the highest accuracy when it is formed on a key level (support or resistance).
⬆️Bullish Engulfing Candle usually forms after a strong bearish impulse.
Weakening, the market keeps going lower forming bearish candles.
However, at some moment, instead of forming a new bearish candle the market reverses. The price forms a bullish candle that engulfs the range of the previous bearish candle and closes above its opening price.
Such a candle we call a bullish engulfing candle.
The main feature of this pattern is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bearish candle.
Being formed on a key support level or within a demand zone it signifies a highly probable pullback or even a trend reversal.
⬇️Bearish Engulfing Candle usually forms after a strong bullish move.
Reaching an overbought condition, the market keeps going higher forming bullish candles.
However, at some moment, instead of forming a new bullish candle the market goes in the opposite direction. The price forms a bearish candle that engulfs the range of the previous bullish candle and closes below its opening price.
Such a candle we call a bearish engulfing candle.
The main feature of this pattern is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bullish candle.
Being formed on a key resistance level or within a supply zone it signifies a highly probable pullback or even a trend reversal.
📝Engulfing candle can be applied for scalping lower time frames, for intraday trading, or even for swing trading.
Personally, I apply this candle on daily/4h time frames as one of the confirmations of the strength of the structure level that I spotted.
Do you trade engulfing candle?
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Bitcoin Analysis
BTC has made bearish candles in last few days and you can see image and our previous post. BTC is following the blocks we have made.
There are good chances that BTC will further go down because there is a big liquidation setup at 27k to 28k range.
If market gets good volume then it can reverse back from here but it revert again to take the remaining order blocks.
We are not market makers
Soon market will be good once again 🙂 don't worry guys.
NZDUSD LongI looked at this setup last night and set an alert. After the Sto RSI bottomed out on the 1H and the price tested the bottom zone I opened a 1:3 RR at 0.67599 with TP at 0.68299 and Stop Loss at 0.67327. I'm trading on a very small account or I would place a partial TP at 0.67936. I'll be watching and move the Stop Loss up to a zero risk trade once it clears 0.67936.
I would be surprised yet admit my fault if it falls lower from here.
As always, I'm still learning and welcome any and all constructive criticism or advice. If anyone knows any good resources for studying pitchforks I am open to suggestions. Thank you.
LINK DeathcrossThis deathcross thing, you know. I could write a hundred updates. LINKUSD had a deathcross recently. It's had quite a run since it broke. Unfortunately for many, that day the crossing meant large scale sell-off. 11% of USD marketcap was traded away in a single daily candle. Talk about volatility!
Trading on Financial Markets | Your Guide to Trade Planning 📝
Hey traders,
In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment.
1 - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels.
2 - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand).
You should patiently wait until one of these zones is tested.
3 - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy.
4 - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level.
5 - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations.
6- Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene.
Only then a trading position is opened.
No matter what will be the end result of your trade, you should assess it:
1 - You should journal the trade outlining its end result, trading instrument, and your entry reason.
2 - Note any peculiar thing about this trade that you noticed.
3 - Record your gain/loss percentage.
4 - Identify whether any mistake was made and if so, learn from that.
Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated.
Do not underestimate its importance and treat it as the main element of your trading routine.
Do you plan your trades like that?
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USDJPY Schiff PitchforkI was learning about the differences between the Andrews and Schiff Pitchforks. I think the Schiff applies to the current USDJPY chart better than the lines I drew before. When it reverts to the center line I'll like try a small position.
ALCX LongAfter yesterdays debacle with VET i was unsure to post this.
What i did was bought a small part in at 306.8 what was fib lvl .786
As a backup i will buy more 1.5x the first bit at lvl 300.8
This was the swing recent swing lo.
This 1 is now in profit and i already moved my stop loss from 294 to 306.8
So in profit.
lets see how long we could ride this baby
Bitcoin. A multi-month correction? #BTCI've been hesitant to try TA on Bitcoin. With the institutional interest growing over the last year I haven't made very many good calls, so this idea is entirely for entertainment purposes. I hope it generates some comments and conversation more than anything.
I put a horizontal ray near $41000 after it switched from resistance to support in early January, mid-June, and again in late September.
I'm still learning the vast complexities of Elliot Wave Theory but at first glance this is what I think is going on.
XYO Descending Pitchfork into Support Zone DAILYI've held XYO since it was on Kucoin but this is the Coinbase chart. I'm waiting for it to test the zone at the bottom of the pitchfork to add to my bag and then revisit it.
NTPC IS MAKING RISING THREE METHODS The Stock is currently on the way of making a Rising Three Methods Pattern on Monthly Chart, if the Stock Price Closes above 144.2 this month.
It is a Bullish Continuation pattern, can be hold for couple of months if formed.
I am learning, any critics or comments are welcome.
Happy Investing :)
Beginner's Charting Attempt 1: COSTFirst: Any constructive criticism is very much appreciated and helpful! :)
So here I am, an absolute beginner with a couple crayons of knowledge: I just drew in what I observed to be wedges. The first a rising bullish wedge that continued to a bullish trend. That wedge was followed by a falling bearish(?) wedge. I thought a continuation pattern (bearish) was more likely than a reversal (bullish) because of resistance (COST had previously hit that high before and didn't break through).
I might've used some of the terminology wrong, honestly. But I'm just trying to journal out my thought process to be able to communicate and work through my own ideas and opinions.
Never invest hard earned money based on social media influencersThese days there are a lot of social media influencers, to be honest most of them do not know about the Crypto fundamentals and what is the tech behind this and how things work in the long time.
For an example,
If an influencer says to buy and hold SLP token from Axie Infinity for long term, you need to instantly block them, because they do not even know the different types of token and are just misleading people. In this case, SLP is a utility/commodity token with infinite supply, as the number of players increases, more SLP will be minted hence price will go down, given that this game has no good burn mechanism. Such influnecers will come up with a drawing of new trend lines every day, and say the coin is in downtrends, but these trend lines have no impact on utility/commodity tokens. They depend upon the tokenomics.
What I want to say is -- Never trust blindly any Social Media Influencer for your hard earned money! Always have curiosity to learn more and develop a trading system that works for you best.
Give this new year a new start!
MANAUSDT LONG POSITION BUYHI EVERYONE!!!
HAPPY NEW YEAR TO ALL OF YAH!!!
thank you so much TRADING VIEW for all the learning and experience
for being a beginner learner fast move on 2022... BRING IT ON!!!!
I LOVE YOU ALL!!!
Trading And InvestingTrading isn’t the same thing as investing.Investors buys stocks and hold them for a long time - often for a too long riding a stock all the way down and possibly even buying more along the way. Traders, on the other hand, hold stocks for as little as a few minutes or as long as several months, and sometimes possibly even a year or more. The specific amount of time depends the type of trader that you are.
Investors
Investors want to carefully balance an investment portfolio among growth stocks, value stocks, domestic stocks, and foreign stocks, along with long‐, short‐, and intermediate‐term bonds. A well‐balanced portfolio generally offers the investor a steady return of between 5 percent and 12 percent, depending on the type of investments and amount of risk he or she is willing to take.
Trader
As a trader, you look for the best position for your money and then set a goal of exceeding what an investor can otherwise expect from an aggressive portfolio. During certain times within the market cycle, your best option may be to sit on the sidelines and not even be active in the market.
Technical analysis Question (BTC/USDT)G'day peoples, I have recently been learning about technical analysis and am wondering what some more experienced people think of my current analysis of the chart and my prediction. What I'm seeing on the charts is the likelihood for BTC to grow about 3 percent in the next day or two shadowing what it did on the 21st to 22nd of dec from 20.00 to 4.00 on the hourly timeframe. Would I be on point in this prediction? For more experienced traders: Where would the entry point be?
Thanks everyone who is able to give me some advice on this. :)
shibusdtHI EVERYONE!!!
this is my bias for SHIBUSDT for long position i hope this technical analysis will move the right direction
again this is only base on my beginners knowledge hoe you will understand this idea..
if you have suggestions or other idea please feel free to comment..
and if you like this PLEASE HIT THE LIKE BOTTON it really help me to boost my self to push my trading learning..
thank you!!!!
LUNA NEW YEAR ATH ???First of all, not financial advice.
Here, I see a potential triangle pattern forming.
The apex of the triangle should be around January 1st !
If the price breaks the apex bullish, we might see a new ATH !
Right now , with the MACD histogram, we can see that the bullish momentum is very. The price as good chances to be pushed on the top of the triangle, completing the 5th elliot wave.
Keep in mind that daddy BTC leads the market, so a bearish BTC is a bearish LUNA...
Please post thoughts so I can learn from them :)
Will SOL get to 1200$ ?First of all I'm a nooby so not financial advice.
This idea is mostly to get feedbacks and learn from them.
Please comment your ideas on this possible elliot wave :)
Rules By Warren Buffett (Educational)Hello everybody, today, we are going to talk about Warren Buffett and his rules and advice.
Who is Warren Buffett?
In an abbreviation, he is an american businessman and investor with an property of over 100 billion dollars.
He is an old-school, but in some way, his rules are really impressive and are working.
He also wrote an preface for the best book ever written on investing, The Intelligent Investor by Benjamin Graham.
1. Reinvest Your Profits
When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits.
2. Be Willing to Be Different
Don’t base your decisions upon what everyone is saying or doing. Have your own reason to buy the stock.
3. Limit What You Borrow
Buffett has never borrowed a significant amount — not to invest, not for a mortgage.
In other words, if you can´t buy it twice, you can´t afford it.
4. Be Persistent
A young boy who sold Coca-Cola for a nickel ended up being a majority shareholder of Coca-Cola. This transition does require persistence.
Warren is an Realistic Optimist. He believed they will succeed but with planning, effort, and persistence even when times are tough.
You don´t have to make deals every day, just watch markets and paper trade.
5. Know When to Quit
Once, when Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. Buffett never repeated that mistake.
6. Know What Success Really Means
Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities.
7. Stay In Your Circle Of Competence
Imagine Circle with 3 layers. In the smallest layer, inside the circle, are things that you really know. In middle of circle are things that you think you know, but you don´t. And in an outer layer, the biggest one, are things that you don´t know.
Warren recommends to stay in the smallest layer and just buy what you really understand.
Otherwise it doesn´t mean that you have to be closed to every opportunities, but first of all, learn something about it. And this leads us into another topic:
8. Always Learn
This is really important to understand, because you have to learn new things, that´s no rule, it´s an habit that you need to make.
Learn about market every day, read articles, books, papertrade, watch youtube.
In these days is super easy to learn something, all you need to have is good wifi connection and phone or notebook.
Warren reads up to 500 pages every day. Try to beat him :) (good luck)
9. Two Legendary Rules
These 2 rules are good to know, it seems really clear, but someone had to tell you:
1. Never Lose Money
2. Never Forget Rule Number One
And that´s serious guys! Never lose money, that´s not your style.
10. Diversify
When you are buying penny stocks, you have to buy one large-cap stock, because penny stocks are volatile and can drop to 0. It can make you big profits or big losses.
With a large-cap stock, you will protect your portfolio from total crash, because large-cap stocks are not as volatile and as risky as penny stocks.
You should diversify in sectors too. If in your portfolio are only oil companies and price of oil will go rapidly down, well, good luck. When you have money in oil companies, you should buy some stock from another sector, for example real estate or healthcare.
Quotes By Warren Buffett
„Cash was never a good investment."
„I´d rather buy a wonderful business at a fair price, than a fair business with a wonderful price."
„Big oppportunities in life have to be seen."
„No matter how great the talent or efforts, some things just take time. You can´t produce baby in one month by getting nice women pregnant."
End
So, seems like we are at the end. Thanks for your effort to read it all, because my view is that it is really educational and you should know it.
If you agree with me and Warren Buffett, please make sure you liked and i´ll see you again at another post. Have a nice day.
Morning star candle pattern buyer-seller psychologyMorning star candle pattern buyer-seller psychology:
The sellers are in complete control in the downtrend before the pattern starts,
* The first candle in that pattern sells heavily, and with the Big Red candle the sellers paint a picture of their full control.
• The opening of the 2nd candle has a selling down through a gap down, then the sellers start buying when the price goes down. This leads to a lot of buyer-seller fights and an indication of small body red / green candles.
* The seller loses control of the 3rd candle through the gap up and the buyer takes full control of the green candle. The uptrend begins.
# Conservative traders wait for the 4th candle for confirmation and many enter the 3rd candle gap up
