Learn the 4 Best Strategies to Maximize Your Profits Today
In the today's article, we will discuss 4 classic yet profitable forex and gold trading strategies.
1️⃣Pullback Trading
Pullback trading is a trend-following strategy where you open the positions after pullbacks.
If the market is trading in a bullish trend, your goal as a pullback trader is to wait for a completion of a bullish impulse and then let the market correct itself. Your entry should be the assumed completion point of a correctional movement. You expect a trend-following movement from there.
In a bearish trend, you wait for a completion of the bearish impulse, let the market retrace, and you look for short-entry after a completion of the retracement leg.
Here is the example of pullback trading.
On the left chart, we see the market that is trading in a bearish trend.
A pullback trader would short the market upon completion of the correctional moves.
On the right chart, I underlined the buy entry points of a pullback trader.
That strategy is considered to be one of the simplest and profitable and appropriate for newbie traders.
2️⃣Breakout Trading
Breakout trading implies buying or selling the breakout of a horizontal structure or a trend line.
If the price breaks a key support, it signifies a strong bearish pressure.
Such a violation will trigger a bearish continuation with a high probability.
Alternatively, a bullish breakout of a key resistance is a sign of strength of the buyers and indicates a highly probable bullish continuation.
Take a look, how the price broke a key daily resistance on a daily time frame. After a breakout, the market retested the broken structure that turned into a support. A strong bullish rally initiated from that.
With the breakout trading, the best entries are always on a retest of a broken structure.
3️⃣Range Trading
Range trading signifies trading the market that is consolidating.
Most of the time, the market consolidates within the horizontal ranges.
The boundaries of the range may provide safe points to buy and sell the market from.
The upper boundary of the range is usually a strong resistance and one may look for shorting opportunities from there,
while the lower boundary of the range is a safe place to buy the market from.
EURCAD pair is trading within a horizontal range on a daily.
The support of the range is a safe zone to buy the market from.
A bullish movement is anticipated to the resistance of the range from there.
Taking into considerations, that the financial instruments may consolidate for days, weeks and even months, range trading may provide substantial gains.
4️⃣Counter Trend Trading
Counter trend trading signifies trading against the trend.
No matter how strong is the trend, the markets always trade in zig-zags. After impulses follow the corrections, and after the corrections follow the impulses.
Counter trend traders looks for a completion of the bullish impulses in a bullish trend to short the market;
and for a completion of bearish impulses in a downtrend to buy it.
Here is the example of a counter trend trade.
EURJPY is trading in a bullish trend. However, the last 3 bearish moves initiated from a rising trend line. For a trader, shorting the trend line was a perfect entry to catch a bearish move.
Such trading strategy is considered to be one of the most complicated, because one goes against the crowd and overall sentiment.
With the experience, traders may combine these strategies.
Try them all, and find the one that suites you the most.
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Learntotrade
Learn the KEY PRINCIPLES of Technical Analysis
In the today's article, we will discuss the absolute basics of trading - 3 key principles of technical analysis.
1️⃣History Repeats
History tends to repeat itself in the Forex market.
Certain trends are cyclical and may reemerge in a predictable manner, certain key levels are respected again and again over time.
Take a look at the example:
Silver perfectly respected a historical horizontal resistance in 2011 that was respected in 1980 already. Moreover, the price action before and after the tests of the underlined zone were absolutely identical.
2️⃣Priced In
All relevant information about a currency pair: economical and political events, rumors, and facts; is already reflected in a price.
When the FED increased the rate 26th of July by 25 bp, EURUSD bounced instead of falling. Before the rate hike, the market was going down on EXPECTATIONS of a rate hike. The release of the news was already price in.
3️⃣Pattern DO Work
Some specific price models can be applied for predicting the future price movements.
Technicians strongly believe that certain formations - being applied and interpreted properly, can give the edge on the market.
Depending on the trading style, different categories of patterns exist: harmonic patterns, price action patterns, wave patterns, candlestick patterns...
Above, I have listed various price action patterns that are applied by many traders and investors as the main tool for analyzing the financial markets.
If you believe in these 3 principles , you are an inborn technician!
Study technical analysis and learn to apply these principles to make money in trading.
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Your ULTIMATE Guide For Time Frames in Trading
If you just started trading, you are probably wondering what time frames to trade. In the today's post, I will reveal the difference between mainstream time frames like daily, 4h, 1h, 15m.
Firstly, you should know that the selection of a time frame primarily depends on your goals in trading.
If you are interested in swing trading strategies, of course, you should concentrate on higher time frames analysis while for scalping the main focus should be on lower time frames.
Daily time frame shows a bigger picture.
It can be applied for the analysis of a price action for the last weeks, months, and even years.
It reveals the historical key levels that can be relevant for swing traders, day traders and scalpers.
The patterns that are formed on a daily time frame may predict long-term movements.
In the picture above, you can see how the daily time frame can show the price action for the last years, months and weeks.
In contrast, hourly time frame reflects intraweek & intraday perspectives.
The patterns and key levels that are spotted there, will be important for day traders and scalpers.
The setups that are spotted on an hourly time frame, will be useful for predicting the intraday moves and occasionally the moves within a trading week.
Take a look at the 2 charts above, the hourly time frame perfectly shows the market moves within a week and within a single day.
4H time frame is somewhere in between. For both swing trader and day trader, it may provide some useful confirmations.
4H t.f shows intraweek and week to week perspectives.
Above, you can see how nicely 4H time frame shows the price action on EURUSD within a week and for the last several weeks.
15 minutes time frame is a scalping time frame.
The setups and levels that are spotted there can be used to predict the market moves within hours or within a trading session.
Check the charts above: 15 minutes time frame shows both the price action within a London session and the price action for the last couple of hours.
It is also critical to mention, that lower is the time frame, lower is the accuracy of the patterns and lower is the strength of key levels that are identified there. It makes higher time frame analysis more simple and reliable.
The thing is that higher is the time frame, more important it is for the market participants.
While lower time frames can help to predict short term moves, higher time frames are aimed for predicting long-term trends.
Trading Exposed: The Hard-Hitting Truth Behind the 99% Who Fail
The picture above completely represents the real nature of trading:
We all came here because we all wanted easy money.
Being attracted by catchy ads, portraying the guys on lambos, wearing guccies and living fancy lives, we jump into the game with high hopes of doubling our tiny initial trading accounts.
However, the reality quickly kicks in and losing trades become the norm.
The first trading account will most likely be blown.
In just one single month, 40% of traders will be discouraged and abandon this game forever.
The rest will realize the fact that the things are not that simple as they seemed to be and decide to start learning.
The primary obstacle with trading education though is the fact that there are so much data out there , so many different materials, so many strategies and techniques to try, so the one feels completely lost .
And on that stage, one plays the roulette: in the pile of dirt, he must find the approach that works.
80% of the traders, who stay after the first month, will leave in the next 2 years. Unfortunately, the majority won't be able to find a valid strategy and will quit believing that the entire system is the scam.
After 5 years, the strongest will remain. The ones that are motivated and strong enough to face the failures.
With such an experience, the majority of the traders already realize how the things work. They usually stuck around breakeven and winning trades start covering the losing ones.
However, some minor, tiny component is still missing in their system. They should find something that prevents them from becoming consistently profitable.
Only 1% of those who came in this game will finally discover the way to make money. These individuals will build a solid strategy, an approach that will work and that will let them become independent.
That path is hard and long. And unfortunately, most of the people are not disciplined and motivated enough to keep going . Only the strongest ones will stay. I wish you to be the one with the iron discipline, titanic patience and nerves of steel.
Gold BUYGold is continuously falling and now has reached on its daily support level around 1905 to 1910 also gold has formed a trendline structure which also followed its sell baised but it seems like on daily level of support price is going to break above its H1 trendline also on daily level price is also taking support on 200EMA which is also a good sign for BUY side
We will waiting and watching price if it breaks above 1910 level with a price action Bullish engulfing Morbozu we will buy this pair
Good luck 🤞
Blueprint to Success: How to Master Trading Sessions & Planning👑 Pre-Trading Sessions & Planning:
🔥 Key Details + Concepts
--------------------------------------
(Psychological, Technical & Concepts):
🟠 Psychological:
- Don’t trade if your emotions aren’t aligning with what is on the screen.
- If you’re not super happy about entering, and you don’t fully accept the loss, don’t take the trade.
- Don’t ‘force’ something to work because it won’t.
- Trade as if you are looking for buys and sells in your markup. This removes mental bias, and effectively emotion in trading.
🟠 Technical:
- Cause is the most important factor in trading – find what caused the injection of volume (‘follow the money’). Did it get effectively mitigated? Did it leave imbalance? … Find that block of orders and don’t get liquidated
- The more inducement respected, the more liquidity to take out, the bigger the move
- Zones to trade from must have resting orders to mitigate. Make sure they have inducement above/below (or create it), and they are the cause of structural breaks, demand/supply fails etc
- Start analysing on the daily first! Find the intention of price and follow it
- Mark out S/R – (support becomes resistance levels vice versa) as that level will be liquidated to usually meet our orderblock above/below it
- Previous daily/weekly highs/lows can act as strong structural inducement points
- Price needs reason to move to certain levels – imbalance
- Often when we have a low Phase 2 inducement, we will sweep it’s orderblock as a SMT because of the zone’s large imbalance = lack of inducement
- If you don’t spot the buyers/sellers who got swept before entering, you’ll become liquidated
- Mark out pullback zones too
- If we break our LPOD/S, we are effectively going to run through all mitigated price until the next valid orderblock
- Ensure you wait for your respective time-frame reaction (e.g., don’t look for a 1m reversal from a 4h zone)
- If price taps the outside of a zone but doesn’t enter it, it can still be used as inducement
- We don’t recommend stacking countertrend trades
- A mitigation can be confirmed when price sweeps into its previous range over another small-range inducement.
🟠 Concepts
- The demand/supply that took out the Phase 1 inducement then gets broken confirms a shift in market structure. If it is respected, we can trade a continuation.
- A ‘slight mitigation’ is when price sweeps liquidity into a range, but doesn’t properly mitigate the orderblock where the high-volume orders lie. Even though we may react from there, we can come back to this orderblock and properly mitigate it, using the ‘slight mitigation’ level as a point of inducement.
- It is important for the AR (automatic rally) to ‘fail’ in a reversal range after the B/SC (Buyers/sellers climax) as it often grabs the LPOD/S (the last point of demand & supply), so it is successfully mitigated
- News candles can be targeted high/lows as they don’t have inducement
- Price works with momentum. You will never see something shoot up or down randomly
- Refine zones by excluding the inducement it swept before it
– draw a line through the orderblock from the inducement it swept. This will refine your orderblock to the pure manipulation *has exceptions*
- If an inducement phase isn’t very clean or only sweeps a small range, there will be another opportunity as more manipulation is needed to fuel a larger move
- Weak highs and lows are determined after a leg has been properly mitigated; the 5-15m TF is best to determine an active zone
- A high/low is likely to be targeted when it wicks the other side’s high/low (to sweep) instead of having a candle closing over (BoS)
- The first part of a ChoCh is often formed from Phase 1 inducement getting swept, creating a slight pullback, then breaking it again to hit the refinement
Used Word Definitions:
- LPOD/S – Last point of demand/supply
- ChoCh – Change of character (a sweep of liquidity then a break of structure)
- BoS – Break of structure (a failure of supply or demand creating a price leg break)
- OB – Orderblock (a valid zone to trade from)
- FVG – Fair value gap (a form of inefficiency/price gaps in the market)
- IMB – Imbalance (a form of inefficiency/price gaps in the market)
- IPA – Inefficient price action (imbalance)
- S&D – Supply and demand (the levels of buying and selling)
- IFC – Institutionally funded candle (a candle created by institutions to push price to a certain area)
- IPB – Inducement Pullback (The level where price pullbacks before a continuation)
- PA – Price action (how price is moving)
- B2S – Buy to sell (often seen as a wick to mitigate or sweep)
- S2B – Sell to buy (often seen as a wick to mitigate or sweep)
- AOI – Area of interest (an area of price that is reactive or tradable)
- POI – Point of interest (a specific point where price is reactive or tradable)
- IND – Inducement (placement of liquidity that is used to manipulate traders)
- EQH/L’s – Equal highs/lows
- SMT – Smart money trap (a zone that doesn’t have liquidity under/above it, and gets run, trapping SMC traders)
- MSS - Market Structure Shift (a confirmed shift in the markets direction towards the next reversal zone)
- Vectors – Large-bodied, impulsive candles that are to push price to its purposeful target
- V-SR – V-Shaped Recovery (quick movement of price to enter and exit a zone)
- TF – Time frame
- FR – Failed Reaction (Internal supply/demand failure)
- OF – Order-flow (the movement of money through the market)
- True Zone – The actual orderblock that will be used which holds the high volume or orders
- PDH/PWH or PDL/PWL – Previous daily/weekly high/low
🟠 Colour Codes:
🟠 Time and Price (Times in AEST):
ASIA > FRANKFURT > LONDON > NEW YORK
- Asia: – Asia is important to analyse as it can create the model for New York and London its purpose is to create liquidity above and below its session. Mark the bottom and top to create a range, as well as the midline. Often, price will aim to take a high/low or both (AWS) starting with Frankfurt + London Open. If Asia takes a form of liquidity and is impulsive, a continuation trade can be played.
- Frankfurt: - Frankfurt often prepares London for its main movement of the day. It often does this by taking out the high or low of Asia to create an orderblock mitigation for London, creates more Phase 1 inducement for London to take out, or helps to move price to an already-made valid orderblock.
- London: - When London opens, there is a volatility spike in price. London’s purpose is to attack the liquidity created during Asia. Often, London creates a continuation mitigation after 1.5 hours, but can also contribute to a larger liquidity build-up for New York. Entries that induce + mitigate can be taken at the open (sometimes +30). After 2 hours of opening, we often see a shift in direction.
- Pre-NY: - Before New York opens, we often see an impulsive move that directly contributes to the New York session. Sometimes, we can create a valid zone for New York to play from by mitigating high-volume orders. Most often, we see an impulse in price to move into a higher timeframe orderblock to then become targeted liquidity, or we create more low timeframe reversal inducement to then be swept.
- New York: –We open with a volatile shift of momentum. New York’s purpose is to attack the liquidity created during the London session, or to create a continuation from London. The New York trap usually starts 1 hour after opening and reverses. After 1.5 hours of opening (MMM), we often see a clean mitigation of the ‘correct’ orderblock and liquidate the opening move. Sometimes, New York Open can mitigate the high-volume orders and continue in the correct direction of the day.
- London Close – mitigates the peak of NY open / Reversal for a continuation in NY open direction. Sometimes there is a mitigation-inducement before London Close.
- Magic Minute Mitigations (MMM) - refer to high probability trading times that mitigate active continuation orderblocks. We can best see these 1.5 hours after London and New York Opens – rarely, we can see these 3.5 hours after these opens instead.
In the next post I will continue with my 8-step daily markup process and my Asian session manipulation formulas.
If you found this article helpful, please share it with your friends and leave a comment!
Cheers!
Attention Traders. DON'T Make This MISTAKE in Top-Down Analysis
Most of the traders apply multiple time frame analysis completely wrong. In the today's article, we will discuss how to properly use it and how to build the correct thinking process with that trading approach.
The problem is that many traders start their analysis with lower time frames first. They build the opinion and the directional bias analyzing hourly or even lower time frames and look for bullish / bearish signals there.
Once some solid setup is spotted, they start looking for confirmations , analyzing higher time frames. They are trying to find the clues that support their observations.
However, the pro traders do the opposite .
The fact is that higher is the time frame, more significant it is for the analysis. The key structures and the patterns that are spotted on an hourly time frame most of the time will be completely irrelevant on a daily time frame.
In the picture above, I underlined the key levels on USDJPY on an hourly time frame on the left.
On the right, I opened a daily time frame. You can see that on a higher time frame, the structures went completely lost .
BUT the structures that are identified on a daily, will be extremely important on any lower time frame.
In the example above, I have underlined key levels on a daily.
On an hourly time frame, we simply see in detail how important are these structures and how the market reacts to them.
The correct way to apply the top-down approach is to start with the higher time frame first: daily or weekly. Identify the market trend there, spot the important key levels. Make prediction on these time frames and let the analysis on lower time frames be your confirmation.
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Understanding the Learning CurveWelcome to @Vestinda new article about Learning Curve! We are delighted to share this insightful piece with our valued community on @TradingView !
At Vestinda, we believe in empowering traders with knowledge and tools to navigate the cryptocurrencies and futures trading. In this article, we will explore the concept of the learning curve and its relevance to the trading journey. Whether you are a novice trader or a seasoned professional, understanding the learning curve can be instrumental in your path to success.
If you focus and invest time into a subject, you will eventually reach a level of mastery.
The actual level clearly depends on the amount of invested time and to a significant extent on your inherent abilities to acquire the specific knowledge. I could probably spend a decade on quantum physics and not progress beyond the level of ‘enthusiastic beginner'. However, attaining mastery is seldom a smooth and linear journey. It is more like a curve in the mathematical sense, characterized by uneven ups and downs, reflecting the usual 'bumps in the road' that we all experience when dealing with challenging topics.
There is a pattern in the process of learning something new (knowledge, skills, etc.), which was formulated by the American psychologist Albert Bandura. This pattern is depicted in the form of a graph known as the Bandura curve.
The graph demonstrates the relationship between time (number of attempts), the level of human competence in what they are studying, and their expectations.
If you have ever enthusiastically started a new training, holding high hopes for it, and then quietly gave up, blaming others or anything else, then you are not alone. To avoid repeating this in the future, it's important to understand how human psychology and the system work, and that each of us is part of this system. Below, we will provide recommendations on what to pay attention to.
So, the Bandura curve shows the stages a person goes through when beginning to learn something new.
1. Clueless (You don't know what you don't know)
When you first venture into trading cryptocurrencies and futures, you are essentially clueless about the intricacies of the market. The concepts, strategies, and tools may seem foreign and overwhelming. It's like staring at a vast landscape without a map, unsure of where to even begin.
2. Naively confident (You think you know, but still don't know what you don't know)
As you begin your learning journey, you might gain some basic knowledge and techniques. This newfound understanding might lead to a sense of naively confident. You believe you have a handle on things, but in reality, there's a lot you're still unaware of, and the market can surprise you with unexpected turns.
3. Discouragingly realistic (You know what you don't know)
With more experience, you come to a point of realization that there is much more to learn. The challenges and complexities of trading become evident, and you may face setbacks that test your resolve. It can be a discouraging phase as you grapple with the reality of how much you still need to learn.
4. Mastery achieved (You know it)
Through persistence and a commitment to learning, you gradually achieve mastery in trading cryptocurrencies and futures. You've gained a comprehensive understanding of the market dynamics, developed effective strategies, and learned how to manage risks. You can now navigate the market with confidence and consistently make informed decisions.
Remember: The learning curve in trading is a natural part of the process, and each stage brings its own valuable lessons. Don't be disheartened by challenges or setbacks; they are opportunities to grow and improve your trading skills.
WHAT TO DO?
✅ Embrace the journey of learning and growth, recognizing that mastery takes time.
✅ Stay humble and open-minded, acknowledging that there is always more to learn.
✅ Be patient with yourself during the challenging phases and use them as motivation to improve.
✅ Keep refining your strategies and adapting to the ever-changing market conditions.
Can you identify which stage you are currently in your cryptocurrency and futures trading journey? Remember, each stage brings you closer to becoming a proficient trader.
We hope you found this article on understanding the learning curve in trading cryptocurrencies and futures helpful!
If you have any thoughts, questions, or personal experiences related to the topic, we'd love to hear from you. Please share your feedback in the comments below.
Your input is valuable to us and can help us create more content that resonates with your interests and needs.
Thank you for being part of our community!
Are You Taking the Right Risks in Trading? Best RISK Per Trade
What portion of your equity should you risk for your trading positions?
In the today's article, I will reveal the types of risks related to your position sizing.
Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size.
🟢Risking 1-2% of your trading account per trade will be considered a low risk.
With such a risk, one can expect low returns but a high level of safety of the total equity.
Such a risk is optimal for conservative and newbie traders.
With limited account drawdowns, one will remain psychologically stable during the negative trading periods.
🟡2-5% risk per trade is a medium risk.
With such a risk, one can expect medium returns but a moderate level of safety of the total equity.
Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks.
🔴5%+ risk per trade is a high risk.
With such a risk, one can expect high returns but a low level of safety of the total equity.
Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome.
That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital.
🛑15%+ risk per trade is considered to be a stupid risk.
With such a risk, one can blow the entire trading account with 4-5 trades losing streak.
Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken.
The problem is that most of the traders does not measure the % risk per trade and use the fixed lot. Never make such a mistake and plan your risks according to the scale that I shared with you.
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Improve Your Trading | The Ultimate CHECKLIST For Your Trades
If you are looking for a way to increase the accuracy of your trades, I prepared for you a simple yet powerful checklist that you can apply to validate your trades.
✔️ - The trades fit my trading plan
When you are planning to open a trade, make sure that it is strictly based on your rules and your entry reasons match your trading plan.
For example, imagine you found some good reasons to buy USDJPY pair, and you decide to open a long trade. However, checking your trading plan, you have an important rule there - the market should strictly lie on a key level.
The current market conditions do not fit your trading plan, so you skip that trade.
✔️ - The trade is in the direction with the trend
That condition is mainly addressed to the newbie traders.
Trading against the trend is much more complicated and riskier than trend-following trading, for that reason, I always recommend my students sticking with the trend.
Even though USDCHF formed a cute double bottom pattern after a strong bearish trend, and it is appealing to buy the oversold market, it is better to skip that trade because it is the position against the current trend.
✔️ - The trade has stop loss and target level
Know in advance where will be your goal for the trade and where you will close the position in a loss.
If you think that it is a good idea to buy gold now, but you have no clue how far it will go and where can be the target, do not take such a trade.
You should know your tp/sl before you open the trade.
✔️ - The trade has a good risk to reward ratio
Planning the trade, your potential reward should outweigh the potential risks. And of course, there are always the speculations about the optimal risk to reward ration, however, try to have at least 1.3 R/R ratio.
Planning a long trade on EURNZD with a safe stop loss being below the current support and target - the local high, you can see that you get a negative r/r ratio, meaning that the potential risk is bigger than the potential reward. Such a trade is better to skip.
✔️ - I am ok with losing this trade if the market goes against me
Remember that even the best trading setups may occasionally fail. You should always be prepared for losses, and always keep in mind that 100% winning setups do not exist.
If you are not ready to lose, do not even open the position then.
✔️ - There are no important news events ahead
That rule is again primarily addressed to newbies because ahead and during the important news releases we have sudden volatility spikes.
Planning the trade, check the economic calendar, filtering top important news.
If important fundamentals are expected in the coming hours, it's better to wait until the news release first.
Taking a long trade on Gold, you should check the fundamentals first. Only after you confirm, that there are no fundamentals coming soon, you can open the position.
What I like about that checklist is that it is very simple, but you can use it whether you are a complete newbie or an experienced trader.
Try it and let me know if it helps you to improve your trading performance.
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SILVER (XAGUSD): Very Bearish Outlook Explained 🪙
Silver formed a double top pattern on a daily.
The neckline of the pattern was a key horizontal structure support.
This week, on Thursday, the price broke and closed below that.
It is a very important bearish signal that indicates a local bearish reversal.
I will expect a bearish continuation on Silver to lower structures.
Goal for sellers - rising trend line.
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Key Levels and US Market Review for the Asian session open 24/07US markets had a quiet session Friday to follow on from an uneventful European session. Traders are focused on the US earning session so I expect to see support in the near term. I feel that the markets are generally extended and traders will be in a holding pattern ahead of results from big tech next week. Defensive stocks were favoured on Friday which, for me, points to a potential risk off move as traders lock in some recent gains.
Expecting a stronger open in Asia with the ASX200 to open up 30 pts, the Nikkei to open up 330 pts and Hang Seng to open up 100 pts.
Traders will be keeping an eye on inflationary data (Aus CPI out tomorrow) for signs that inflation is still easing. Whether that translates into lessening pressure on the wallet and the cost of living, will take some time to play out.
Some KEY ACTIONABLE LEVELS into the Asian market session. Review of the European and US sessions and what that will mean to the price action in the near term along with key levels to watch.
Markets covered :-
DOW
Nasdaq
DAX
FTSE
ASX200
Hang Seng
USD Index
Gold
Oil
Copper
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Sandur Looks good for investment for Long term CMP 772Sandur Looks good for investment for Long term CMP 772,
Strong BS and Fundaments along with integrity and positive management approach.
Share price may test 1700 levels, after that may reach to 2300++ in longer run.
Keep eye on it and research from your side as well before investing.
3 Best Market Trading Opportunities to Maximize Profit Potential
Hey traders,
In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets.
1. Trend Line Breakout and Retest
The first setup is a classic trend line breakout.
Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves.
If the market bounces from a trend line, it is a vertical support.
If the market drops from a trend line, it is a vertical resistance.
The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from.
The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from.
Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support.
A candle close below that confirmed its bearish violation.
It turned into a vertical resistance.
Its retest was a perfect point to sell the market from.
2. Horizontal Structure Breakout and Retest
The second setup is a breakout of a horizontal key level.
The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance.
Its retest is a safe point to sell the market from.
The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support.
Its retest if a safe point to buy the market from.
Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation.
After a breakout, the broken resistance turned into a support.
Its test was a perfect point to buy the market from.
3. Buying / Selling the Market After Pullbacks
The third option is to trade the market after pullbacks.
However, remember that the market should be strictly in a trend.
In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines.
Buying the market from such a trend line, you open a safe trend-following trade.
In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines.
Selling the market from such a trend line, you open a safe trend-following trade.
On the chart above, we can see EURAUD pair trading in a bullish trend.
After the price sets new highs, it retraces to a rising trend line.
Once the trend line is reached, trend-following movements initiate.
What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits.
Good luck!
Learn 4 Proven Methods of Applying Moving Average Indicator
Hey traders,
The moving average is one of the most popular technical indicators.
It is applied in stocks/forex/crypto trading and proved its high level of efficiency.
There are hundreds of trading strategies based on MA.
In this post, we will discuss the 4 most popular ways to apply the moving average.
1️⃣The first method is applied to identify the market trend.
While the price keeps trading above the MA, one considers the trend to be bullish and looks for buying opportunities.
Once the price starts trading below the MA, the trend is considered to be bearish and a trader is looking for shorting opportunities.
In the example above, Moving Average is applied for showing the identification of the market trend. Its upward climb signifies that the market is trading in a strong bullish trend.
2️⃣The second method applies the combination of 2 MA's: preferably a long-term one and a short-term one.
The point is that once a short-term moving average crosses above a long-term MA, with high probability, it signifies the initiation of a bullish trend.
Alternatively, a crossover of short-term and long-term MA's to the downside indicates a start of a bearish trend.
In the example above, there are 2 Moving Averages: short term and long term ones. Their cross signifies the bullish trend violation and initiation of a bearish trend.
3️⃣The third method applies MA as a structure.
While the moving average is lying above the price, it is considered to be a dynamic resistance.
Staying below the price, it serves as a strong dynamic support.
Perceiving MA as the structure, one applies that for trade entries.
In the picture above, Moving Average is applied as support on GBPJPY and the price starts growing after its test.
4️⃣The fourth method is aimed to track the crossover of the moving average and the price.
The idea is that a bullish violation of the MA by the price gives an early signal for a possible trend reversal.
While a bearish breakout of the MA by the market indicates a highly probable bullish trend violation.
In the example above, the crossover of the moving average and the price is a perfect indicator of coming bullish and bearish movements.
Backtest different MA's inputs and learn to apply that for predicting the future direction of the market and for trading it.
Let me know, traders, what do you want to learn in the next educational post?
Learn Why You Should Study Multiple Time Frame Analysis
In my daily posts, I quite frequently use multiple time frame analysis.
If you want to enhance your predictions and make more accurate decisions, this is the technique you need to master.
In the today's post, we will discuss the crucial importance of multiple time frames analysis in trading the financial markets.
1️⃣ Trading on a single time frame, you may miss the important key levels that can be recognized on other time frames.
Take a look at the chart above. Analyzing a daily time frame, we can spot a confirmed bullish breakout of a key daily resistance.
That looks like a perfect buying opportunity.
However, a weekly time frame analysis changes the entire picture, just a little bit above the daily resistance, there is a solid weekly resistance.
From such a perspective, buying GBPUSD looks very risky.
2️⃣ The market trend on higher and lower time frames can be absolutely different.
In the example above, Gold is trading in a bullish trend on a 4h time frame. It may appear for a newbie trader that buyers are dominating on the market. While a daily time frame analysis shows a completely different picture: the trend on a daily is bearish, and a bullish movement on a 4H is simply a local correctional move.
3️⃣ It may appear that the market has a big growth potential on one time frame while being heavily over-extended on other time frames.
Take a look at GBPJPY: on a weekly time frame, the market is trading in a strong bullish trend.
Checking a daily time frame, however, we can see that the bullish momentum is weakening: the double top pattern is formed and the market is consolidating.
The sentiment is even changing to a bearish once we analyze a 4H time frame. We can spot a rising wedge pattern there and its support breakout - very bearish signal.
4️⃣ Higher time frame analysis may help you to set a safe stop loss.
In the picture above, you can see that stop loss placement above a key daily resistance could help you to avoid stop hunting shorting the Dollar Index.
Analyzing the market solely on 1H time frame, stop loss would have been placed lower and the position would have closed in a loss.
Always check multiple time frame when you analyze the market.
It is highly recommendable to apply the combination of at least 2 time frames to make your trading safer and more accurate.
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The Dangers of Giving Up Too Soon on a Trading Strategy
There are hundreds of different strategies to trade. Some of them are losing ones, some provide modest results and some strategies are very profitable.
Novice traders often struggle to find the right strategy that suits their personality, financial goals and risk appetite. Unfortunately, they also tend to make some common mistakes that can undermine their performance and confidence.
❌ One of the biggest mistakes that they make in their search is that they give a strategy a very short trial period. It simply means that they are trying to assess the validity of the strategy, trading that for a very short time span (usually a day to a week).
Please, realize the fact that the performance of the strategy can be measured only with extended backtesting - meaning that the strategy should be tested on multiple financial instruments and for a long period of time and applying multiple evaluation metrics.
Moreover, if the strategy proves its efficiency on backtesting, it should be traded on a demo account at least 2 months before the valid performance can be calculated.
❌ Another common mistake is that many traders drop the strategy once it starts losing. And by losing, I mean just 2–3 trades in a row.
Newbies are searching for the approach that never loses.
They may even abandon a trading strategy once they catch JUST ONE bad trade.
✅ In contrast, a smart trader realizes that one bad trade does not define the performance of the strategy. Moreover, such a trader calmly faces the losing streaks and sticks to the strategy.
Take a look at that picture.
On the top, we have the traits of a newbie trader and his equity curve.
He abandons the strategy after he faces the loss, not giving the strategy a chance to recover.
When he changes the strategy, he starts recovering a little bit and a losing period follows.
He drops a strategy again, and he keeps following this vicious cycle till his entire account is blown.
On the bottom of the picture, we see the equity curve of a smart trader.
Even though he faces losses occasionally, his strategy always gives him a chance to recover and with time his trading account steadily grows.
Please, realize the fact that a perfect strategy does not exist. You will lose the money occasionally anyway. What distinguishes a smart trader from a dumb one is his discipline and trust to his trading system and willingness to face losses.
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Learn The Market Volatility | The Double-Edged Sword
Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring?
In this educational article, we will discuss the market volatility, how is it measured and how can it be applied for making smart trading and investing decisions.
📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time.
High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily.
High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains.
On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest.
The chart on the left is the perfect example of a volatile market.
While the chart on the right is a low volatility market.
📰 The main causes of volatility are economic and geopolitical events.
Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements.
On the other hand, the absence of the news and the relative stability are the main sources of a low volatility.
Here is the example, how the Covid pandemic affected GBPUSD pair.
The market was falling in a very rapid face in untypical manner, being driven by the panic and fear.
But how the newbie trader can measure the volatility of the market?
The main stream way is to apply ATR indicator, but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated.
📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks.
The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles.
Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset.
Take a look at a price action and candlesticks on Bitcoin.
The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility.
🛑 For traders who just started their trading journey, high volatility is the red flag.
Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level.
Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves.
The best solution is to look for the market where the volatility is average, where the market moves but on a reasonable scale.
Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid.
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Step-by-Step Guide to Begin Forex and Gold Trading
Forex and gold trading have become immensely popular among investors as a great way to earn profits. However, starting with this venture can be quite overwhelming for beginners. Here is a step-by-step guide to help you begin your forex and gold trading journey:
1. Learn the Basic Concepts: Before investing your hard-earned money, it's important to get familiar with the key concepts of forex and gold trading.
2. Choose a Trading Platform: There are plenty of online trading platforms to choose from. Look for one that is user-friendly and offers competitive trading fees.
3. Identify Your Investment Goals: Decide on your investment objectives, as it will help you to make informed trading decisions.
4. Develop a Trading Plan: Create a trading plan to determine how much you're willing to invest, when you'll buy or sell, and which assets you'll trade.
5. Set a Budget: Determine how much money you intend to invest and set a budget accordingly. Remember, only invest an amount you're comfortable losing.
6. Practice on a Demo Account: Most trading platforms offer a demo account that simulates real trading conditions and helps you practice trading with virtual money.
7. Analyze the Market: Before making any trades, analyze the market through technical and fundamental analysis to identify trends and potential outcomes.
8. Monitor Your Investments: Keep track of your investments regularly and make necessary adjustments if needed.
9. Be Prepared for Risks: Understand that trading involves some risks, so be prepared to handle losses.
10. Keep Learning: Continuously educate yourself on market trends, economic indicators, and other factors that affect the forex and gold trading market.
11. Identify a Reliable Broker: Choose an experienced and licensed broker who can offer you guidance and support when starting.
12. Start Small: Begin with small investments and gradually build your portfolio as you gain more experience and confidence.
13. Diversify Your Portfolio: Spread your investments across different currencies and assets to reduce the risk of losses.
14. Be Realistic: It takes time and patience to become a profitable trader, so set realistic expectations and avoid making hasty decisions.
15. Stay Disciplined: Maintain discipline and stick with your trading plan to achieve your investment goals.
Here is the example of how exactly you should trade.
Imagine that you have a trading strategy for gold trading.
You trade key levels.
Once a key support is reached you buy and once a resistance reached you sell.
Taking the trade you risk fixed % of your trading account.
You know the exact entry reasons, your stop loss and target.
Ideal approach should work like clock.
In conclusion, starting forex and gold trading can be challenging, but with the right knowledge and preparation, you'll be on your way to making profitable trades. Just remember to keep learning, stay disciplined, and be patient.
Harsh Truth About Trading: In Books VS In Reality
Most traders start their trading journey by studying theory first, reading books or taking video courses before putting these newfound skills into practice. But once they start trading on a real market, they quickly realize that things are not as straightforward as the books make them out to be.
In this educational article, we will take a critical look at the difference between theoretical knowledge and practical experience.
📍And first of all, do not get me wrong. I am not trying to imply that trading books or courses are bad.
Theoretical knowledge is essential for successful trading, and of course the books are the best source of that.
The problem is, however, that books can be misleading. The examples in books are always tailored. When the authors are looking for the examples of the patterns, of key levels, they are looking for the ideal cases.
📍The problem becomes even worse, when one start studying the trade examples in books. And of course, the authors choose the brilliant winning trades with huge take profits and tiny stop losses.
I guess you saw these pictures of "sniper" entry trades with 5/1 R/R.
The inexperienced trader may start thinking that the markets are perfect and act in total accordance with the books.
That all the trades that he will take will bring tremendous profits.
That the identified patterns will work exactly as it was described.
📍The harsh truth is that books and courses are simply the compositions of different examples, cases and market situations.
In reality, each and every trading setup is unique.
The reaction of the price to the same pattern will be always different.
Please, realize the fact that books are only good for acquiring the knowledge. But in order to survive on financial markets, you need the experience. And the experience will be gained only after studying thousands of real market examples in real time.
📍Here is the example of a double top pattern that we were trading with my students on AUDJPY.
In books, double tops are always perfect. Once the market breaks the neckline, the price retests that and then quickly drops.
So the one can set a tiny stop loss and a big take profit.
However, after a retest of a broken neckline, AUDJPY bounced and the market maker was stop hunting the newbies. Our stop loss was way above the head, and we managed to survive.
Even though the pattern triggered a bearish movement, the reaction of the market was far from perfect.
Be prepared, that the market will much different from what you see in the books.
Good luck to you!
Learn The Main Elements of The Trading Strategy
There are hundreds of different trading strategies based on fundamental and technical analysis.
These strategies combine different tools and trading techniques.
And even though, they are so different, they all have a very similar structure.
In this educational article, we will discuss 4 important elements every trading strategy should have.
1️⃣ The first compontent of a trading strategy is the list of the instruments that you trade.
You should know in advance what assets should be in your watch list. For example, if you are a forex trader, your strategy should define the currency pairs that you are trading.
2️⃣ The second element of any trading strategy is the entry reasons.
Entry reasons define the exact set of market conditions that you look for to execute the trade.
For example, trading key levels with confirmation, you should wait for a test of a key level first and then look for some kind of confirmation like a formation of price action pattern before you open a trade.
3️⃣ The third component of a trading strategy is the position size of your trades.
Your trading strategy should define in advance the rules for calculating the lot of size of your trades.
For example, with my trading strategy, I risk 1% of my trading account per trade. When I am planning the trading position, I calculate a lot size accordingly.
4️⃣ The fourth element of any trading strategy is trade management rules.
By trade management, I mean the exact conditions for closing the trade in a loss, taking the profit and trailing stop loss.
Trade management defines your actions when the trading position becomes active.
Here is the example.
I took a trade on Friday, following my top-down trading strategy.
I was trading Dollar Index (the instrument that is in my trading list).
Entry reason was a test of a key level on a daily and a formation of a horizontal range on 1H time frame.
The position was opened on a retest of its broken neckline.
Position size of this trade was based on 1% of my trading deposit.
Stop loss and targets were structure based.
Make sure that your trading strategy includes these 4 elements.
Of course, your strategy might be more sophisticated and involve more components, but these 4 elements are the core, the foundation of any strategy.
What Should Be Inside Your Trading Plan
Find out why you should have a trade plan—and the five elements that may help you put it to work successfully.
Element 1: Your time horizon
How long do you plan to hold a position? This will depend on your trading strategy. Generally, traders fit into one of three categories:
Single-session traders are very active and look to gain from small price variations over very short time periods (minutes or hours) throughout the trading day.
Swing traders target trades that can be completed in a few days to a few weeks.
Position traders seek larger gains and recognize that it often takes longer than a few weeks to achieve them.
Element 2: Your entry strategy
Look for entry signals—for instance, divergences from trend lines and support levels—to help you place your trades. The signals you employ and the orders you use to make good on them hinge on your trading style and preferences.
Element 3: Your exit plan
When it comes to an exit strategy, plan for two types of trades: those that go in your favor and those that don’t. You might be tempted to let favorable trades run, but don’t ignore opportunities to take some profits.
Element 4: Your position size
Trading is risky. A good trade plan establishes ground rules for how much you’re willing to risk on any single trade. Say, for example, you don’t want to risk losing more than 2%–3% of your account on a single trade. You could consider exercising portion control, or sizing positions, to fit your budget.
Element 5: Your trade performance
Look over your trading history to calculate your theoretical trade expectancy, meaning your average gain (or loss) per trade. You start by determining the percentage of your trades that have been profitable versus those that haven’t. This is known as your win/loss ratio.
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How to Trade the Pin Bar Pattern on Forex and Gold 🕯
The pin bar is a powerful price action setup that tells a fascinating story concerning price momentum and the possibility of an imminent reversal in price direction.
A pin bar is a Japanese candlestick that has a long wick on one side and a small body.
Understanding the story behind the pin bar is essential.
📚What does the pin bar candlestick pattern tell us about market psychology?
📉This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection.
📈The pin bar followed by a strong uptrend, and the presence of a long tail above the body tells us that the market rejected any attempt by overly exuberant buyers to move the price higher. The length of the tail speaks to the strength of the rejection.
⭐️The best pin bars are bearish pin bars that form at the top of an extended move up, and bullish pin bars that form at the bottom of an extended move down.
✅Entry and exit is very simple. If you are going short on a bearish pin bar, enter short when the next candle opens and ticks below the low of the bearish pin bar. If you are going long at your fx broker, enter long when the next candle opens and ticks above the high of the bullish pin bar.
❗️Keep in mind that these are general trading concepts that build on the collective experience of traders. Even though a lot of traders believe that these chart patterns have a bearing on the future direction of the price there are no guarantees in trading. Forex & gold trading is risky and you should never speculate with funds you cannot afford to lose.
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