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DeGRAM | EURUSD long from support to 1.132The instrument in the last trading day of the last weekly session was abruptly bought back and formed an engulfing. The price updated local tops and broke through resistance levels. At the moment, the currency pair rolls back to the support level 1.126, from which I expect the price to consolidate and rise to the resistance level of 1.132 ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
Long
by DeGRAM
5
DeGRAM | EURUSD forecast for the week. Short after pullback The trend is not broken, the price only retraces against the background of the bearish trend. The instrument did not reach a strong level by several points, so the interest of a major player remains at 1.1168. A pattern that supposedly can suggest a market reversal in this situation, when the key point has not been reached, is most often a scam, players who were in a hurry and or did not manage to enter the market enter the market, but at some point the price reverses again and moves to earlier not achieved goal, here the others fall into a trick. I think that after a rollback, the price will continue falling along the trend. Key zone below 1.1168 ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
Short
by DeGRAM
3
Psychology of the market circle Hello traders! Euphoria and Anxiety, Fear and Greed Psychology of the market cycle Any trader finds himself under the influence of changing market cycles. At favorable moments, investors feel joy and are overwhelmed with self-confidence. On dark days, the investor falls into despair and feels anxiety attacks. The only way not to succumb to such an emotional influence is to follow the clear rules of a properly compiled system. Unfortunately, most traders have no plan and no strategy. In order not to become a victim of emotions, a trader must have an idea of the emotional stages of the market cycle. Psychological stages of trading An uptrend is a trader's emotions. Optimism When the market is growing, the trader sees an opportunity to earn and invests money. The economy is growing, the price is rising, profits are growing. At such a moment, the trader feels confident, begins to open new positions after each pullback, which eventually turns into a kind of instinct. At this stage, the trader begins to forget about the risks. Enthusiasm and Abundance The market is starting to accelerate. Traders experience pleasant feelings of joy and enthusiasm. The trader begins to lose his head, confidence overwhelms him. Euphoria After that, the last stage of the upward trend comes - Euphoria. Money comes very easily, the trader is overwhelmed with confidence in his actions and decides to open positions using leverage. At some point, the trader begins to think that he is a professional analyst, and it is not he who is following the market, but the market is following him. This stage in the market helps large investors to discount their shares to self-confident traders who buy everything in a row, believing in the continuation of the upward trend. In fact, this phase is the most risky, after which the trend is reversed. Emotional stages of a Downtrend in the market Anxiety The price is starting to slow down, there are fewer and fewer sellers, bears are gaining momentum. For a trader blinded by luck, this phase looks like another correction. But the market can no longer create new highs and falls, forming new lows. Such a fall creates anxiety in the trader's soul, easy profits begin to melt. Denial and Fear Fear fills the market, traders are afraid to be wrong, because recently they ruled the market. At this stage, the trader denies that he is wrong and tries in every way to justify holding unprofitable positions. Like any beginner, a trader believes that sooner or later the price will not only return, but also go beyond the maximum. Denial brings the trader to a state of helplessness and inaction, from misunderstanding of the situation on the market. The trader gets lost, not knowing what to do and waits without knowing what, without closing unprofitable positions. Despair and Panic The price continues to fall, and the trader falls into despair, because the confidence in holding a losing position is already beginning to disappear. This phase is the most painful, because the severity of losses presses too hard to stay calm. Surrender The unprofitability of the position is increasing, traders can no longer tolerate this pain. In this phase, traders have to capitulate just to stop these torments. Traders are starting to close positions and it is here that large companies are included, for which this moment gives a new opportunity for large profits. Asset buying begins, because a reversal is possible soon. Despondency and Confusion As it often happens, as soon as a trader has closed a position, the market begins to grow. It looks like the law of meanness. This phase drives the trader into despondency, because the position was closed a moment before the rise. It is here that newcomers begin to think about whether it is worth investing further. Hope The market is starting to revive. The price shows new highs and the investor has hope. It seems that here it is, a new opportunity. The trader begins to enter the market, forgetting about the past, without drawing conclusions. A trader enters the market when the price has already accelerated, at points where the risk is again close to a critical value, the cycle begins again. Traders should keep this cycle in mind. Such emotional roller coasters can ruin anyone. A well-designed strategy can help avoid these painful blows. Remember the risks, remember the cycles, work on the mistakes, and victory will not take long to wait. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
40
Formation of distribution to Wyckoff Phase A - The moment the previous trend stops. The dominant force up to this point was demand, but now the balance is changing in favor of supply. The capitulation of the bulls has not yet happened, but it is at this stage that the bears begin to struggle to reverse the trend: • PSY - pre-delivery - at this stage, a big stock reset begins, after a strong growth. There is an increase in volumes, while the price movement begins to expand. • BC - the end of purchases - the volume increases greatly, the price soars sharply. Large players need to close their long positions without a strong change in the exchange rate, so at this moment news about profits or losses usually come out, which encourage retail traders to buy stocks en masse, which are dumped by big players. • AR - automatic reaction. The price falls under the influence of decreased purchases and retained sales - AR is formed. The minimum of movement in the AR phase is the lower bound of the TR distribution. Phase B - Creating conditions for a new trend. Smart money starts dropping long positions and opening short ones, while trying not to push the price too much in order to get a better price: • ST - secondary (repeated) test , in which the price returns to the BC area again, to check the difference in supply/demand. The supply at such a moment must exceed the demand to confirm the top. There is a decrease in volume and spread. The secondary test (ST) can sometimes be formed in the form of an upward movement (UT). At such a moment, the price may pass the BC resistance line before turning sharply. Often, after UT, the price tests the lower bound of TR. Phase C - This is a test of the remaining demand . The price can update the maximum, thereby collecting stops and a new portion of energy for the fall. This moment may turn out to be a trap for bulls who believe that the bullish trend has gained strength again. Big players will push the price against the crowd to close their positions in the footsteps, so it is quite dangerous to trade in this phase: • UTAD - uptrast after distribution. In the last phases of TR, a test of new demand is possible, after the breakdown of resistance. At the same time, UTAD does not necessarily have to appear on the chart. Phase D - breakdown of the TR line and confirmation of the bears' strength. It is here that it becomes finally clear - bulls have lost the fight and bears are pushing the price in the direction they need. Small short-term rises will often appear which can serve as good points for opening positions. The proof of the bears' strength will be the breakdown of support and a further fall in the price: • SOW - a sign of weakness. At this point, the price falls below TR or stops a little higher. All this is happening because there is more supply than demand. • LPSY - is the last power point. The weakness of growth is clearly observed when the price bounces and tries to move up, after the SOW test. The reason for such weakness may be a lack of demand or a large supply pushing the price down. In the LPSY phase, there is a wave of the last distribution of major players, after which a stronger fall will begin. Phase E - acceleration of a new downtrend. The accumulated force breaks through the TR line and a strong downward movement begins, which, however, may temporarily switch to a return to the resistance line. This moment can serve as another opportunity to enter. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
6