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The importance of the STOPLOSS protective orderOur protective stops are vital to managing our risk, and just a single position you open without a stop can lead to the suicide of your trading account. The uniqueness of stop orders lies in the fact that they, being pending orders, await their execution at a predetermined price. When stop orders are triggered, their important function is that they add momentum to the market and at the same time use the liquidity present in the market. 1) Many have probably heard such information as: "When entering a trade, place a protective stop just below the high / low of the price." The reason is that this level has been identified as an important support level. What else is posted in the support area? Limit orders of traders to buy, who have identified the support area and are waiting for the time to open a position when retesting the level. Is there a large number of stops under each level? It depends on the size of the timeframe and how quickly the price leaves the given zone at the time of purchase. 2) When the price gets to this level, traders are still interested in long positions, but this time the price does not bounce off that level as one would expect. It does not break it, does not make lower lows, but displays lower highs. If you were interested in going long right now, what would you do? The average trader who bounces off the support level would enter a long position with a stop just below the support level. If you had a limit order that hadn't been filled yet, I would have postponed the order. Candlesticks / Bars displays lower highs; The price does not rise as fast as one might expect; You know that just below the support area there are a lot of stop orders. 3) What happens next? The price moves downward under pressure and breaks the stops of traders who have long positions, and, as we remember, when buy stops are triggered, these are market sell orders, and they force the price to move further down. And traders, who are waiting for the opening of short positions, open them because the price breaks the support level, but then the market takes them out, “eats” them, because the price goes higher. 4) Those traders who were initially set for long positions and who were thrown out of the market by broken stops help push the price up. Now the graph looks like this: New stops are placed below the new level, in front of us is Groundhog Day. And everything that has just been played will be played over and over again ... only at different price levels. STOPLOSS is a way to limit losses when managing an open trading position or portfolio of positions. In fact, a stop loss is an order to close a position in the event of an unfavorable price movement. The trader sets a stop loss to limit his own losses and trade within his own money management rules.
Education
by DeGRAM
7
The importance of the STOPLOSS protective orderOur protective stops are vital to managing our risk, and just a single position you open without a stop can lead to the suicide of your trading account. The uniqueness of stop orders lies in the fact that they, being pending orders, await their execution at a predetermined price. When stop orders are triggered, their important function is that they add momentum to the market and at the same time use the liquidity present in the market. 1) Many have probably heard such information as: "When entering a trade, place a protective stop just below the high / low of the price." The reason is that this level has been identified as an important support level. What else is posted in the support area? Limit orders of traders to buy, who have identified the support area and are waiting for the time to open a position when retesting the level. Is there a large number of stops under each level? It depends on the size of the timeframe and how quickly the price leaves the given zone at the time of purchase. 2) When the price gets to this level, traders are still interested in long positions, but this time the price does not bounce off that level as one would expect. It does not break it, does not make lower lows, but displays lower highs. If you were interested in going long right now, what would you do? The average trader who bounces off the support level would enter a long position with a stop just below the support level. If you had a limit order that hadn't been filled yet, I would have postponed the order. Candlesticks / Bars displays lower highs; The price does not rise as fast as one might expect; You know that just below the support area there are a lot of stop orders. 3) What happens next? The price moves downward under pressure and breaks the stops of traders who have long positions, and, as we remember, when buy stops are triggered, these are market sell orders, and they force the price to move further down. And traders, who are waiting for the opening of short positions, open them because the price breaks the support level, but then the market takes them out, “eats” them, because the price goes higher. 4) Those traders who were initially set for long positions and who were thrown out of the market by broken stops help push the price up. Now the graph looks like this: New stops are placed below the new level, in front of us is Groundhog Day. And everything that has just been played will be played over and over again ... only at different price levels. STOPLOSS is a way to limit losses when managing an open trading position or portfolio of positions. In fact, a stop loss is an order to close a position in the event of an unfavorable price movement. The trader sets a stop loss to limit his own losses and trade within his own money management rules.
Education
by DeGRAM
1
Potential BTC Distribution ZoneThe following VAs listed in the chart (left to right): 1. VA of current calendar year 2. VA of Wyckoff Distribution Top 3. VA of potential accumulation zone 4. VA of current and potential distribution zone BTC is following a similar (granted smaller and faster) top pattern to the 2020 bull run and subsequent Wyckoff Distribution between 42K and 60K. Buyers were unable to provide a liquidity shake significantly below 30K; the demand for 30K LP was larger than expected. Market makers accumulated a decreasing supply in the bottom of 3rd VA. The POC for the 3rd VA is almost identical to the POC for the current calendar year and confidence was built for a short-term intermediate move with short liquidations providing more potential upside. I still have concern without seeing any relatively significant selling volume within the 4th VA, but would expect to see this in the upcoming days with a move down to 40-42K. I believe seller's ultimately will be unable to stay in control above 50K and the market will see impressive supply from underwater positions. In the long term, this will provide a key order block in a future more impressive buyer demanding market environment. Currently, the landscape while technically bullish does not appear to have any support from institutional buyers; with GBTC still being sold at a discount and whale wallets not clearly building position on-chain. My assumption is market makers will try to move the market price of BTC into a more value friendly zone between 18-25K. In an effort to keep myself accountable and level headed, I believe this pattern is invalidated with any break above 50K and either explosive volume with high spread or consolidation above the current (4th) value area- in the 2nd VA.
BNC:BLXShort
by WildZipper
DeGRAM | EURGBP breakout resistanceThe currency pair breaks the upper border of the descending channel with an impulse. He speaks of a trend change very early. The price rolls back to the previously broken border for possible consolidation, if the pair consolidates above the level, that is, there is every chance of a trend change. I look forward to growth from the level to the nearest resistance. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
Long
by DeGRAM
5