Learning
How to use Corrective Structures to develop a SetupGreat day to learn something, today; we will understand how to use corrective structures to develop a setup on any chart.
a) There are 3 types of Corrective Structures, Zig-Zag (first example), Flat (Second Example), Triangles (third example). Use them as an archetype to spot them on a chart.
b) Now that you understand the types of corrective structures is time to look at one on the chart ( you can see a Flag Pattern on the real chart)
c) Should I trade all the corrective structures I see? NO, YOU DONT! You need Context. Your corrective structure must be well-positioned on the chart, it can be a Trendline, or it can be a Support. Never trade isolated patterns.
d) Then you need a clear path in the direction you are expecting. In this case, we are at All-time Highs, so we don't have any Resistance
e) How can I calculate my target? Use Fibonacci Extensions. Draw it from the base of the impulse towards its top (where the corrective structure starts) and then take it back to the impulse's bottom. Pay attention to 2 levels only 1.27 for Break Even, and 1.618 for Target
f) Only take setups with a risk-reward ratio higher than 1.5
Have a Great Day!!!
How to Trade the Breakout of a Range 101In this post, we will learn how to trade the breakout of a clear range. Let's start learning.
a) First of all, we need a clear Range ( we can say that is clear when we have a support and a resistance level and the price in between for a considerable amount of time)
b) From a technical perspective, the expected movement after a range is broken is the extension of it in the broken direction (green arrow)
c) Also, we will see how that projected movement fits in the context of the chart. In this case, we will look for the next resistance zone.
d) The correct way of identifying a resistance zone is by looking for clear reversal movements in the past. Ignore small corrections. Look for reversal movement and define it with a horizontal line ( in this case, we used 2 yellow arcs to show the idea)
e) Now you can see two things. 1) The projected distance of the range is very similar to the distance towards the next resistance zone 2) You have good space to try to catch a wave
f) But how can I trade a situation like this? You need a CONFIRMATION. In this case, we always wait for corrective structures (remember that corrective structures can be Flat, Zig Zag, Triangles, or Irregulars)
g) Wait for a clear corrective structure on the Edge of the broken Range. IF that happens, you need to define its edges, and from now, it's straightforward. (You can also look for a corrective structure on a lower timeframe; for example, if you define the range on the 4HS chart, you can change your timeframe to the 1H chart.)
h) Open positions on the Breakout of the structure, Set stop loss below the structure, Set take profit on the next resistance zone, Define the risk you will take on the trade
i) Use this as an archetype on how to trade this type of structure.
Have a great day!
Short pullback ETHusdt Etherium is looking really bullish for the last months, and I think Etherium will hold strong untill the end of the year.
But before the uptrend continues, I think Ehterium will go in a downtrend to the 320 usdt mark before continuing the uptrend.
This can be seen directly from the RSI, which represents hidden divergence in the last highs (marked in red).
I hope you like my idea,
If you do so please give me a comment on how I can improve my idea's.
I stepped into crypto a couple of months ago and want to learn as mutch as possible.
Therefore don't follow my idea's blindly and do your own research.
Hope you guys stay health and
GOOD TRADING : )
ALIBABAthat was weird
kinda worried about going 280, but the RSI might not support that low.
mid-term the same for now, I'll get worried if it close under 300 (orange support line)
Red = out
Green = in
Short after falling back into rangeshort after deviation @ range high.
- TP1 --> Mid range
- TP2 --> Range-low
GBPAUD - Sell Daily Triangle Break - Trend Continuation Hi Traders!
The market is in an overall Downtrend.
Let's begin the Multiple Timeframe Analysis with the Weekly.
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Before we start analysing this pair, here is an important lesson for everyone who's reading that:
You probably often heard or read in trading lessons, that you shouldn't draw many things into your charts.
But the truth is, that many of them don't even really know why. They just say "so you don't become confused".
Why is it so important? It's probably more than you think.
"so you don't get confused" - this argument is valid, but not everything
You focus on the main thing and you don't get unsure because of tiny barriers
If the trade goes negative, you calm down, because you see the reasons you traded
If the trade goes positive, you don't get scared, because you know how to exit
If you go through your Journal, you instantly understand the reasons why you traded, that can help you identify the Winners and the Losers and its Setups
It gives you the skill of keeping everything uncomplicated
You can share your charts easily, without explaining :)
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Here is the screenshot:
Why did we share the information above? Because of that example we give you now.
As you can see we only drawed one Trendline into the entire chart.
This is enough to get us an idea of the current market situation.
The market broke out of the Trendline downwards.
Then it retested it and it is continuing further.
Conclusion: We're only intrested in taking Sell-Trades.
Moving on to the Daily.
Here is the screenshot:
This is the zoomed up situation of the Breakout.
Here we can see the daily Triangle.
Moving on to the H4:
Nothing new at all.
We only established the Target area, which is the tourquise dotted horizontal ray.
In addition this is ray the 78.6% Fibonacci Retracement.
Lastly, the Entry Timeframe:
We here see a Wedge Pattern.
We're waiting for the Break of the Daily Triangle and the Retest at the upper Trendline of the Wedge before we enter the market.
The SL is a decent distance away from the recent high.
The risk-to-reward ratio is better than 1 to 3.
We recommend to trade the Breakout with a strong Retest.
Thanks and successful Trading :)!
Candle AnatomyDecided to start posting content. Going from Basics to more advanced topics, little by little.
If you're just starting to learn how to trade, here's the first thing you should know. What's a candle?
A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period.
-The candle has an open and close price point in time. If the movement is upwards, then the candle will close above its open price. Consequently, if the movement is downwards, the candle will close below its open price.
-The wicks will show the highest and lowest prices in the market at that moment.
-When looking at the market structure, it's important to look at the body of the candles, not the wick.
-For identifying liquidity, it is important to look at the wicks.
*The information I am sharing is mostly for new traders.
*I am not Certified to give out any information, but I enjoy trading and enjoy sharing what I know as well.
Future of learning and education with $CHGGTA
-120EMA Support. High volume at $62 level.
- Early May 2020 shows double the volume from the previous highest volume day= Institutional accumulation. Average volume 2.8M. May 5th volume : 38.5M
- Distribution volume slowing down
- RSI reversal
- MACD golden cross
- Strong relative strength
FA,
- Integrated platform = Chegg study+ Chegg Writing+ Chegg Math solver + Chegg tutors + High quality future proof skills based courses
- Structural tailwind with e-learning/self-learning.
- Yahoo finance Growth rate : 25%+. Simply wall street growth rate : 68%
- FY15 to FY20 CAGR revenue 39%
- Accelerating Earnings, revenues and margins in consecutive quarters(Almost Code 33)
- Growing subscriber base= Network effect with more tutors and students
- High growth and high margin. FCF positive
- Good management
Current subscribers of 3.9M with 29% YoY growth. Total opportunity at 102M subscribers
- Baillie Gifford ownership : 11%. High quality fund ownership + Growing institutional ownership. #smartmoney
Concerns,
-Increased competition : Amazon, Khan Academy, Open study, Linkedin
- Physical textbooks are a thing of the past.
- Debt of 900M and interest coverage of 1.09. However, Cash is at 700M with a healthy current ratio of 8+
Added at $72.
Uncertainty of the MarketHi guys, to be consistent trader and successful trader, first you want to have a mindset of a beginner, willing to learn back from the basics
The mindset of you dont know that thing and by that your curiosity pushes you to learn things to decode that scenario. Always remember that there will always room for your brain to relearn again ang again. Happy trading everyone
Bank nifty... what can happen next!!!Out look for banks degraded loan moratorium hearing still pending!!! Plenty of bad news and much much of frustration for bank nifty bulls. This month is testing some nerves now! What can happen now, 21600-21500 is the strongest support we can have in September month if broken and shattered we can see 20900-21100 coming up ahead... with news playing its part bank nifty can pull down the nifty as well. So you can buy around 21750-21800 with sl of 21600 and target of 22000-22100-22200 and you can sell on rise as well with sl of 22250 for bull to be back in action 22550-22650 should be crossed effectively. Comparing the option chain data we can expect a bounce back now not a trend reversal as such.
Strong BTC support line + Bullish RSI divergence =BULLISH RUNHI TRADERS!
This BTC support Area is strong so far and when RSI help it, gonna be good sign.
A strong support {9800-10000) kept btc above support area and couple times Bitcoin touched it,as price action aspect we can say many buy orders triggered in this area which push btc up 200-300$ anytime therefore it is important support because of technical and Psychology matter for traders .(above 10k psychologically matters a lot in bitcoin market as many of you know}
At bottoms you can see RSI bullish divergence occur in 4H and Daily time frame , similar happen for MACD as well which confirms Rsi bullish divergence and give BTC a higher chance for Bull run. (MACD & RSI bullish divergence)
If BTC stay above 9800 in next couple hours it will be another good News for Bulls.
Please share your idea and leave a LIKE . I'd really appreciate it.
Good Luck and Good Profit.
FLDM: Am I just seeing rounding bottoms everywhere?FLDM hourly chart.
Just wanted to publish my chart before it gets cleared, lol.
I think I see a rounding bottom on this sucker.
Also potential gap above.
Blue lines are what I think are res points.
I have short term and long term fibs showing, hopefully charted properly.
The candlesticks are Heikin Ashi.
The candle filler-colors are representative of RSI.
Vertical Lines:
Yellow (pre-market start)
Green (market open)
Orange (power hour/market close/after hours start)
Red (after hours end)
RSI Colors from High to Low:
Bright Green
Green
Dark Green
Light Blue
Dark Blue
Yellow
Orange
Red
Dark Red
USDCHF still bullish ,still goingThis is one of those trades I wish I could have put more into. Excellent climb thus far. Just wanted to update and say even though I moved my price a little higher to take a larger return (.01) to (.02) I’m still getting a good run.
How are you all doing with this trade so far? Are we all in profit?!
Daily Wisdom 16 - Track what mattersDaily behaviors leads to results. Too many focus on the results while lacking daily behaviors. No wonder they fail.
