Structural QML Diagonal Analysis of GBPUSD in 1D TimeFrame.Structural QML Diagonal Analysis of GBPUSD in Bullish Trend Market and Bearish Trend Market.
Community ideas
Smart Traders Watch the Fed — Smarter Ones Watch the DollarHello Traders 🐺
In this idea, I decided to talk about the U.S. Dollar Index (DXY) — because so many people have been asking me:
“How do you predict the Fed’s moves, and how do they affect deflationary assets like BTC?”
My last idea was about BTC, where I explained why I believe a major bull run is coming — and part of that is because the Fed might soon shift back to QE.
But if you're trying to predict QE...
The first thing you need to watch is the U.S. Dollar Index, which reflects the strength of the U.S. Dollar.
So let’s break it all down:
🔍 Part 1: What Does the Fed Actually Do?
The Fed isn’t just a printer — it’s the U.S. central bank, and it has a dual mandate:
✅ Keep prices stable (control inflation)
✅ Promote maximum employment
That means the Fed doesn’t just want growth — it wants sustainable growth. No crazy inflation, no deep recession. Balance is key.
🧰 How Does the Fed Do It?
Through Monetary Policy, which is basically the toolkit used to control liquidity, interest rates, and economic behavior (like how much people borrow, spend, or save).
Let’s break down the main tools:
1️⃣ Federal Funds Rate
This is the most powerful tool the Fed has.
It’s the rate banks use to lend to each other overnight.
If the Fed raises the rate:
→ Loans get expensive
→ Spending slows
→ Inflation drops
→ But markets can crash
If the Fed cuts the rate:
→ Loans get cheaper
→ Demand rises
→ Growth accelerates
→ But inflation can surge
2️⃣ Open Market Operations (OMO)
This is how the Fed injects or removes liquidity using bonds.
Buys bonds → Injects money → 🟩 QE (Quantitative Easing)
Sells bonds / lets them expire → Removes money → 🟥 QT (Quantitative Tightening)
3️⃣ Reserve Requirements
This used to be a big deal — the % banks had to hold in reserves.
But since 2020, it's set to 0%.
4️⃣ Discount Rate
The interest rate the Fed charges banks directly.
A change here sends a strong signal to the markets.
Sometimes the Fed also works in sync with the U.S. government — using fiscal support like:
💸 Stimulus checks
🏢 Corporate bailouts
🧾 Tax relief packages
📈 So... Why Does the Dollar Index (DXY) Matter?
There’s a very clear inverse correlation between the DXY and BTC.
When the dollar gets stronger (DXY pumps), BTC usually dumps.
Why? Because rising DXY often means:
🔺 The Fed is raising rates
🔺 Liquidity is being pulled out
🔺 QT is in play
Let me show you some real chart examples:
📉 July 2014 — DXY pumped → BTC dumped hard
DXY Chart:
BTC Chart:
➡️ Just a 28% DXY pump → 80% BTC crash. Ouch.
📈 2017 — DXY dropped → BTC entered full bull market
DXY Chart:
BTC Chart:
➡️ A 15% DXY drop → Bitcoin bull run of a lifetime.
Now here’s the good news 👇
DXY is starting to look very bearish on the chart:
Combine that with the Fed shifting to QE, and guess what?
We're likely entering the early stages of another bull market.
If you read my last BTC idea, you already know what I’m expecting...
🚀 A massive run is just around the corner.
I hope you found this idea useful, and as always —
🐺 Discipline is rarely enjoyable, but almost always profitable 🐺
🐺 KIU_COIN 🐺
Head and Shoulders Pattern: Advanced Analysis for Beginners█ Head and Shoulders Pattern: Advanced Analysis for Beginners
The Head and Shoulders pattern is one of the most widely recognized and reliable patterns in technical analysis. And today, I am going to teach you how to use it as efficiently as an experienced trader would.
Learning to spot and trade this pattern can be a great asset in your tool belt —whether you’re trading stocks, forex, or cryptocurrencies.
The Head and Shoulders is a well-known reversal pattern in technical analysis that signals a potential trend change.
⚪ It consists of three peaks:
The Left Shoulder: A peak followed by a decline.
The Head: A higher peak formed after the left shoulder, followed by a decline.
The Right Shoulder: A smaller peak resembling the left shoulder, followed by another decline.
When these peaks form in a specific order and the price breaks below the neckline (the line connecting the two troughs between the shoulders), it indicates a bearish reversal from an uptrend to a downtrend.
█ What about Bullish reversals? Don’t worry — there's good news!
Conversely, the Inverse Head and Shoulders pattern forms at the bottom of a downtrend and signals a potential reversal to the upside. By recognizing the pattern early, you can position yourself for a high-probability trade with a clear entry and exit strategy.
█ How to Identify a Head and Shoulders Pattern?
I truly believe the best way to learn any trading strategy is to keep it simple, away from the “technical” jargon unless absolutely necessary. We’ll do the same with this strategy.
Despite its varied usage, you can break it down into four simple steps:
1. Look for the Left Shoulder
The first part of the pattern forms when the price rises , creating a peak. Then, it declines back down to form the trough . This creates the Left Shoulder of the pattern.
Example: If the price of Bitcoin (BTC) rises from $85,000 to $90,000, and then declines to $87,500. This is your Left Shoulder.
2. Spot the Head
The second part of the pattern is the Head . After the Left Shoulder, the price rises again , but this time, it forms a higher peak than the Left Shoulder. The price then declines again, creating a second trough .
Example: Continuing with Bitcoin, after the price dropped to $87,500, it rises to a new high of $95,000 before dropping back to around $90,000. This $95,000 peak is the Head, which is higher than the Left Shoulder.
3. Find the Right Shoulder
After the decline from the Head, the price rises again, but this time, the peak should be smaller than the Head, forming the Right Shoulder . The price then starts declining again, and this is where the neckline is formed (connecting the two troughs).
Example: Bitcoin then rises from $90,000 to $92,000 (lower than the $95,000 peak). This forms the Right Shoulder, and the price starts to decline from there.
4. Draw the Neckline
The neckline is drawn by connecting the lows (troughs) between the Left Shoulder and the Head, and between the Head and the Right Shoulder. This is your key reference level.
█ How to Trade the Head and Shoulders Pattern
Once you've spotted the Head and Shoulders pattern on your chart, it’s time to trade it. And yes, it did need a separate section of its own. This is where most amateur traders mess up - the finish line.
1. Wait for the Neckline Breakout
The most crucial part of the Head and Shoulders pattern is the neckline breakout . This is when the price breaks below the neckline, signaling the start of the trend reversal.
Example: After the price rises to form the Right Shoulder at $92,000, Bitcoin then drops below the neckline (around $90,000). This is the confirmation that the pattern is complete. The price of BTCUSD is likely to continue downward past the 90k mark.
2. Enter the Trade
Once the price breaks below the neckline, enter a short position (for a bearish Head and Shoulders pattern). This is your signal that the market is reversing from an uptrend to a downtrend.
3. Set Your Stop Loss
Your stop loss should be placed just above the right shoulder for a bearish Head and Shoulders pattern . This makes sure you are protected in case the pattern fails and the price reverses back upward.
Example: Place your stop loss at around $93,000 (just above the Right Shoulder at $92,000) on BTCUSD.
You can also try one of these strategies I have used in the past:
⚪ Conservative Stop: Place the stop above the head (for bearish H&S) or below the head (for bullish iH&S) for maximum safety.
⚪ Aggressive Stop: Place the stop above the right shoulder (for bearish H&S) or below the right shoulder (for bullish iH&S) to reduce your stop size.
⚪ Neckline Reclaim Invalidation: Exit the trade if the price reclaims the neckline after breaking it. This could be an indication of a false positive/invalid pattern.
4. Set Your Profit Target
To calculate your profit target, measure the distance from the top of the Head to the neckline and project that distance downward from the breakout point.
Example: The distance from the Head at $95,000 to the neckline at $90,000 is $5,000. So, after the price breaks the neckline, project that $5,000 downward from the breakout point ($89,800), which gives you a target of $84,800.
5. Monitor the Trade
We’re in the home stretch now, people. This is the 9th inning.
There’s only one job left: keeping an eye on any retests or contrarian moves.
As the price moves in your favor, you can scale out or move your stop loss to break even to lock in profits.
█ What makes H&S strategy an all-time classic?
It’s simple. It works.
This pattern works because it reflects a shift in market sentiment:
In a Head and Shoulders pattern , the uptrend slows down as the market struggles to make new highs, and then the price ultimately breaks down, signaling that the bulls have lost control.
In an Inverse Head and Shoulders pattern , the downtrend weakens as the market fails to make new lows, and the price breaks upwards, signaling a bullish reversal.
⚪ Here are a few points to remember as a cheatsheet for Head and Shoulders patterns:
Wait for the neckline breakout to confirm the pattern.
Set a stop loss above the right shoulder for protection.
Project the price target using the height of the head for a realistic profit goal.
Always monitor the trade for any signs of reversal or false breakouts.
Mastering this pattern can be a game-changer for any trader, but like any tool, it’s only effective when combined with other indicators, strategies, and a solid risk management plan.
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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
What Is a Balanced Price Range, and How Can You Use ItWhat Is a Balanced Price Range, and How Can You Use It in Trading?
Balanced Price Ranges (BPRs) offer traders insight into areas where market forces temporarily balance. Understanding how BPRs form and how to use them can help traders identify key zones of interest on the chart. This article explores the details of BPRs, their applications in trading, and how combining them with other tools can refine your market analysis.
What Is a Balanced Price Range (BPR)?
A Balanced Price Range (BPR) is an Inner Circle Trader (ICT) concept used to pinpoint areas on a price chart where market activity reflects a temporary equilibrium between buyers and sellers. These zones, often identified through overlapping Fair Value Gaps (FVGs), highlight price levels where buying and selling pressures have offset each other, creating a balance.
Here’s how it works in a bullish scenario: a rapid price move downward leaves a bearish Fair Value Gap—a price range the market skips over due to strong selling momentum. If the price rises with equal intensity shortly, creating a bullish Fair Value Gap in the opposite direction, the overlapping region between these gaps becomes the BPR. This overlap represents a zone of temporary balance, where the market has effectively “corrected” the earlier imbalance.
BPR zones are not random. They often form in areas of high market interest—perhaps near key support or resistance levels, or after significant news events that cause sharp price movements. Traders look at these ranges because they frequently act as reference points for future price reactions.
The boundaries of an ICT BPR—its high and low—serve as critical levels. These edges often function as dynamic support and resistance, helping traders gauge potential turning points. Furthermore, BPRs can appear across various timeframes, from minute-by-minute to weekly charts.
How Does a Balanced Price Range Form?
Now that we know the idea of the ICT Balanced Price Range, let’s look at how it forms step by step.
1. An Initial Price Imbalance
A BPR begins with a strong price movement in one direction—either up or down. For example, in an overall bearish scenario, buyers initially drive the price up rapidly and leave behind a bullish FVG. This gap reflects an area where the market didn’t fully engage, often skipping over price levels due to overwhelming demand.
2. A Counter-Move Creates an Opposing Gap
After the initial move, the market can shift in the opposite direction with equal momentum. In our example, sellers step in, pushing the price downward. This creates a bearish FVG that partially overlaps with the earlier bullish FVG. These rapid shifts often occur around key events, such as news releases or liquidity grabs, which ignite temporary market imbalances.
3. Overlapping Fair Value Gaps Define the Range
The overlapping portion of the bullish and bearish FVGs is what forms the BPR. This zone represents the price levels where buying and selling forces are temporarily balanced, neutralising the earlier imbalances.
4. Market Consolidation and Testing
Once the BPR is established, the price often consolidates near this range. This zone acts as a magnet for future price action because it’s seen as an area of high market interest, where traders may take note of previous balance. In the example given, a test may precede a bearish reaction.
Combining BPRs With Other ICT Concepts
Balanced Price Ranges in the ICT methodology become even more powerful when combined with other related concepts. By layering multiple tools, traders can refine their analysis and pinpoint high-probability areas for market activity. Here’s how BPRs work with key ICT concepts:
Fair Value Gaps
Since BPRs are defined by overlapping fair value gaps, understanding how to read these gaps adds depth to BPR analysis. FVGs outside the BPR can act as supplementary zones of interest.
Order Blocks
Traders often spot BPRs forming near significant order blocks. When these zones overlap, they highlight areas where institutional activity may have left a footprint, increasing their importance for analysis.
Liquidity Pools
BPRs often align with liquidity zones where stop orders are clustered. Price may gravitate toward these areas before reacting, offering traders insight into potential price reversals or continuations.
Market Structure Shifts
BPRs can reinforce insights gained from market structure shifts. For example, a BPR forming after a break in structure might signal consolidation before the next major move.
Higher Timeframe Confluence
When a BPR aligns with key levels on higher timeframes, it can provide added confidence in the zone’s relevance for price reactions.
How to Use a Balanced Price Range
The Balanced Price Range can provide traders with valuable insights into price behaviour, acting as a reference point for analysing potential market movements. By understanding how these zones function, traders often use them to refine their strategies and enhance their market analysis.
Identifying High-Interest Zones
As BPRs highlight areas where the market found an equilibrium between buyers and sellers, traders typically monitor how the price reacts when revisiting a BPR. For example, if the price approaches the upper or lower boundary of a BPR, it may indicate a potential turning point or a continuation, depending on the market context.
Support and Resistance Dynamics
One common approach is to view BPRs as dynamic support or resistance zones. When the price tests the range, traders often anticipate a reaction. For instance, a rejection from a BPR in a bearish trend may suggest continued downward momentum, while a breach might signal weakening selling pressure.
Contextualising Larger Market Structures
BPRs don’t exist in isolation; they often align with broader market structures. Traders may use them in combination with tools like liquidity zones or order blocks to build a more complete market picture. For instance, if a BPR forms near a major resistance level on a higher timeframe, this confluence could strengthen its importance as a reference point.
Adjusting for Timeframe and Strategy
The relevance of a BPR often depends on the timeframe being analysed. Day traders might focus on intraday BPRs to find potential trading opportunities, while swing traders could look for these zones on higher timeframes, considering them significant levels for long-term moves. Either trader can use lower and higher timeframe BPRs to inform their analysis and entries.
Managing Risk Around BPRs
Traders may incorporate BPRs into their risk management plans, such as by using the boundaries of the range to set stop-loss or take-profit levels. A breach of these levels can indicate a shift in market sentiment, helping traders refine their analysis.
Risks and Considerations When Using BPRs
While BPRs can be a useful tool for analysing price behaviour, they aren’t without limitations. Traders need to approach BPRs with a clear understanding of their potential pitfalls. Here are some key considerations:
- Not Predictive: BPRs don’t guarantee future price movement. While they highlight zones of interest, traders must combine them with broader market analysis to avoid over-reliance.
- Subjectivity: Identifying BPRs can sometimes be subjective. What one trader sees as a balanced range might not align with another’s interpretation, especially on different timeframes.
- Timeframe Sensitivity: A BPR on a lower timeframe may lose significance in the broader market context. Conversely, higher timeframe BPRs may lag behind fast-moving markets.
- False Breakouts: Price can move beyond a BPR briefly before reversing, creating potential traps for traders relying solely on breakout strategies.
- Market Context Matters: BPRs are analysed alongside market conditions like volatility, news events, or broader trends. Ignoring these factors can reduce their reliability.
The Bottom Line
Understanding Balanced Price Ranges can help traders interpret key market zones and improve their analysis. By combining BPRs with other tools and strategies, traders gain deeper insights into price movements.
FAQ
What Is the ICT Price Range?
The ICT price range refers to specific price levels or zones highlighted in the Inner Circle Trader (ICT) methodology. These ranges often represent areas of interest in the market, such as liquidity pools, fair value gaps, or balanced price ranges. Traders use ICT price ranges to analyse price movement, identify potential reaction points, and refine their trading strategies.
What Is the Meaning of a Balanced Price?
Balanced price describes a market state where buying and selling pressures are in equilibrium. It typically forms in areas where overlapping fair value gaps exist, reflecting zones where previous imbalances have corrected. These areas can act as key levels for future price reactions.
What Is an Optimal Trade Entry in a Balanced Price Range?
Optimal trade entry in a balanced price range refers to identifying high-probability entry points within or near a BPR. Traders often look for price reactions at the range’s boundaries, combining BPR analysis with other ICT tools, such as order blocks or liquidity zones, to refine their approach.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Elliott Wave Analysis of DLF: A Technical PerspectiveHello friends, let's analyze the DLF chart on a daily time frame. Currently, we're observing a corrective phase, where the stock has completed a flat correction pattern (A-B-C) with a 3-3-5 structure. Following this correction, we've seen a significant drop, accompanied by a strong double divergence in the RSI indicator. Where Fibonacci Retracement of last long Rally on Weekly is near 50% - 55% which is less than 61.8% should consider as a Healthy Retracement
As the price is currently moving upwards, completing wave counts, a breakout above the downward trend line would increase our conviction in the analysis.
This analysis is for educational purposes only and not a tip or advisory. If the price breaks out and stays above the trend line while maintaining the low of 601, we can expect further upside momentum. However, 601 would remain a crucial invalidation level, and a breakdown below it would require us to reassess our wave counts.
Key points:
1. DLF chart analysis on daily time frame
2. Flat correction pattern (A-B-C) with 3-3-5 structure
3. Healthy Retracement
4. Strong double divergence in RSI indicator
5. Breakout above trend line increases conviction (Which is pending yet)
6. 601 as invalidation level
Please note that this is a Educational technical analysis post and not a recommendation to buy or sell.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
What to consider when trading...
Hello, traders.
If you "Follow", you can always get new information quickly.
Please click "Boost".
Have a nice day today.
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This is my personal opinion, so it may differ from yours.
Please keep this in mind.
-
So, how should I proceed with day trading?
When trading day trading, the first thing to consider is the trading volume.
Coins (tokens) with low trading volume should be avoided because volatility can occur in an instant, making it difficult to respond quickly and likely to result in losses.
Therefore, if possible, it is recommended to choose coins (tokens) with high trading volume.
The next thing to consider is the price of the coin (token).
If the price of the coin (token) becomes too high or too low, even if you sell it for profit, you may incur a loss.
Therefore, when trading a coin (token) with a very high price, you should trade with a longer time frame.
In other words, the increase should be high.
When trading a coin (token) with a very low price, you need to be persistent.
This is because the amount you want to trade is large, so the rise or fall may be slow.
The next thing to consider is the size of your trading funds.
If your trading funds are too small, you may not be able to enjoy trading because you will earn too little profit compared to the stress of trading.
If you lose the fun of trading like this, you will have difficulty continuing to trade or you will likely leave the investment market, so you need to be careful.
If you set the trading fund size too high, you can suffer a big loss with one mistake, so you must set a stop loss point and keep it.
You can find out how much trading fund size is right for you by looking at your psychological state when you trade.
If you think you are trading too boldly, it is better to think that the trading fund size is small and increase it little by little.
If you feel extremely anxious when you trade and incur a loss, it is better to reduce the trading fund size little by little.
-
(BTCUSDT 30m chart)
Considering the above considerations (trading volume, price, trading fund size), you should continuously observe the selected coin (token) chart to check the movement at the support and resistance points.
To do this, you need to check whether there is support at the support and resistance points drawn on the 1M, 1W, and 1D charts when you meet the HA-Low and HA-High indicators, which can be the basis for starting a transaction, or when you have a trading strategy.
Usually, when the Trend Cloud indicator shows an upward trend while receiving support near the HA-Low indicator and rising, there is a high possibility of rising.
Therefore, you should consider whether to buy when the HA-Low indicator shows support.
And, when the HA-High indicator touches and falls, there is a high possibility of falling when the Trend Cloud indicator shows a downward trend.
Therefore, the area near the HA-High indicator corresponds to the first selling section.
In this way, you can conduct transactions within the sideways section trading within the HA-Low ~ HA-High section.
Then, when there is a movement that falls below the HA-Low indicator or rises above the HA-High indicator, you can conduct a transaction according to the trend.
Therefore, split trading is essential.
The basics of split trading are to sell half when you make a profit and set the stop loss at the principal price for the remaining half.
-
This is something everyone knows, but it is not easy to follow.
Also, there are times when it is difficult to decide what to use as the standard for trading.
In such cases, as I mentioned, I recommend that you choose a coin (token) considering the trading volume, price, and trading fund size and continuously check the movement of the chart.
Even if you are not familiar with chart analysis, if you continuously look at the chart, there is a possibility that you will see movement.
However, you need prior knowledge on how to set the stop loss point.
-
Thank you for reading to the end.
I hope you have a successful trade.
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Understanding Our Approach: High-Probability Reversals Understanding Our Approach: High-Probability Reversals with Price & Time Analysis
Hello Fellow Traders!
We often get asked about the core principles behind our analysis here on TradingView. Today, we want to share a key part of our methodology: how we combine Price Analysis and Time Analysis to pinpoint potentially high-probability reversal signals in the market.
Our goal isn't just about finding any setup, but finding setups where the odds seem stacked more favorably for a potential trend change. We do this by looking for confluence – where different factors align.
1. Price Analysis: Finding Where the Market Might Turn
What it is: This is about identifying significant price levels on the chart. Think of these as important zones, not just single lines.
How we use it:
Support & Resistance: We look for historical areas where price has repeatedly bounced off (support) or struggled to break through (resistance). The stronger and more tested the level, the more significant it becomes.
Price Action Clues: We watch how price behaves when it reaches these key levels. Are there strong rejection candles (like pin bars or engulfing patterns)? Is momentum slowing down? These clues tell us if buyers or sellers are stepping in or losing control.
2. Time Analysis: Finding When the Market Might Turn
What it is: This adds the dimension of time to our price analysis. Markets often move in cycles or react around specific time points.
How we use it:
Timing Cycles: We look for potential cycles or rhythmic patterns in price swings. Sometimes, trends tend to exhaust themselves after a certain duration.
Time Convergence: We pay close attention when price approaches a key Price Level (from step
1) around a potentially significant Time point (e.g., end of a known cycle, specific session timing, alignment with time-based indicators if used).
The Synergy: Combining Price & Time for High-Probability Signals
The real power in our approach comes when Price and Time align.
Imagine price reaching a major historical resistance level (Price Analysis).
Now, imagine this happens exactly when a known time cycle is expected to complete (Time Analysis).
This convergence signals a potentially higher probability reversal point than if only one factor was present. It tells us that where the market is and when it got there are both significant.
How You Can Apply This Concept:
Identify Key Levels: Mark major support and resistance zones on your charts.
Observe Time: Become aware of market timing – session opens/closes, news events, or potential cyclical patterns you observe.
Look for Confluence: Wait for price to test a strong level around a potentially significant time point.
Seek Confirmation: Always look for confirmation signals (like candlestick patterns or divergence) at these points of confluence before considering any action.
Important Note: Trading involves significant risk. This methodology aims to identify higher probability setups, but no method guarantees success. Always use proper risk management and conduct your own analysis before making any trading decisions. This is shared for educational purposes.
We hope this gives you a clearer insight into our analysis process! Follow us here on TradingView to see how we apply these concepts in our regular updates. Feel free to ask questions in the comments – we're all here to learn together.
Want to Level Up?
Join Shunya Trade’s Mentoring Program to master these strategies and sharpen your technical analysis skills.
Trade safely!
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Here few Historical chart study's
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PriceAnalysis, TimeAnalysis, PriceAction, TechnicalAnalysis, SupportResistance, CandlestickPatterns, ChartPatterns, MarketStructure, TimeCycles, MarketTiming, TradingSignals, ReversalTrading, TradingStrategy, MarketAnalysis, TradingView, Forex, Stocks, Crypto, Trading, Investing, DayTrading, SwingTrading, MarketCycles, FibonacciTime, Gann, TradingLevels, PricePatterns
Crypto Risk Management: The Most Overlooked EdgeIn the thrilling yet unforgiving world of crypto, profit potential is massive—but so is the risk. Every trader or investor enters the space with dreams of 10x gains, but without a solid risk management strategy, many exit just as fast—with a trail of losses.
Risk management is the art of protecting your capital while giving yourself the best shot at long-term profitability. It’s not just a skill; it’s a survival strategy.
What Are the Risks in Crypto?
Crypto markets are unique—24/7, global, and driven by emotion, hype, and tech disruption. With that come several risk categories:
Market Risk – Volatile price swings can wipe out unprepared traders.
Liquidity Risk – Low-volume coins can be hard to exit during dumps.
Regulatory Risk – Government crackdowns or bans (e.g., Binance or XRP cases).
Security Risk – Hacks, rug pulls, phishing scams, and smart contract bugs.
Operational Risk – Mistakes like sending funds to the wrong address or using faulty bots.
These risks aren’t just theoretical—think of the LUNA/UST collapse or the FTX debacle. Billions were lost due to poor risk management at multiple levels.
🧠 Core Principles of Risk Management
To stay in the game long-term, you need to adopt some fundamental principles:
Preserve capital first, profit later.
Risk small, aim big.
Never risk more than you can afford to lose.
Think in probabilities, not certainties.
Be consistent, not lucky.
Even the best traders lose—but they survive because they manage their downside better than the rest.
🛠️ Tools & Techniques That Can Save Your Portfolio
1. ✅ Position Sizing
Don’t bet your whole stack on one trade. A common approach is to risk 1–2% of your portfolio per trade. That way, even a streak of bad trades won’t destroy your capital.
2. 🛑 Stop-Loss & Take-Profit
Always have predefined stop-loss levels to cut losses, and take-profit targets to lock in gains. Trading without a stop-loss is like driving without brakes.
3. 📊 Diversification
Spread your investments across different sectors (DeFi, AI, Layer 1s, etc.). Don’t rely on one narrative or one coin.
4. ⚖️ Leverage Control
Leverage can amplify gains—and losses. Avoid high leverage unless you’re an experienced trader with a tight plan.
5. 🔁 Portfolio Rebalancing
Adjust your allocations periodically. If one asset balloons in value, rebalance to lock in gains and manage exposure.
6. 💵 Using Stablecoins
Stablecoins like USDT, USDC, or DAI are great for hedging during volatility. Park profits or prepare dry powder for dips.
🧠 Psychological Risk: The Silent Killer
Many traders don’t lose due to bad analysis—they lose to emotions.
FOMO leads to buying tops.
Fear leads to panic selling bottoms.
Revenge trading after losses leads to bigger losses.
Greed blinds you from taking profits.
The key is discipline. Create a plan, follow it, and review your mistakes objectively.
🚫 Common Mistakes to Avoid
Going all-in on one trade or coin
Holding through massive drawdowns hoping for a recovery
Ignoring stop-losses
Overleveraging small positions to “win it all back”
Risk management is about avoiding unnecessary pain, not killing your gains.
🧭 Final Thoughts
The best traders in crypto aren't those who win big once—they're the ones who survive long enough to win over and over. Risk management is your edge in a market that respects no one.
Whether you’re a scalper, swing trader, or long-term HODLer, never forget: capital is your lifeline. Guard it with your strategy, protect it with your plan, and grow it with patience.
✍️ By Green Crypto
Empowering traders with analysis, tools, and education. Stay sharp. Stay profitable.
How To Connect Your NinjaTrader Account To TradingViewHow to connect your NinjaTrader brokerage account to be able to trade on TradingView.
Scalping with ATM Options Using Candle + OI Confirmation!Hello Traders!
If you love quick entries and fast exits with defined logic, then ATM Option Scalping is your game. But scalping without confirmation often leads to stop-loss hits. That’s why combining candlestick structure with live Open Interest (OI) data gives you a serious edge. Let’s break down the exact setup I use to scalp with ATM options in Nifty & BankNifty .
Why ATM Options for Scalping?
Better Liquidity: ATM strikes have tight spreads and high volumes, making execution quick and efficient.
Quick Premium Movement: Even small index moves reflect fast in ATM premiums.
Less Theta Decay (Intraday): Within first half of day, theta doesn’t hurt much. Scalping avoids time decay traps.
Scalping Strategy: Candle + OI Confirmation
Step 1 – Watch 5-Min Candle Setup:
Look for strong breakout candles, bullish/bearish engulfing, or reversal candles at key zones like VWAP/PDH/PDL.
Step 2 – Confirm with OI Shift:
Check ATM strikes on option chain.
Put OI rising + Price sustaining = bullish confirmation.
Call OI rising + Price rejecting = bearish confirmation.
Step 3 – Take Trade in ATM Option:
Enter CE or PE near breakout candle close with proper SL below/above that candle.
Step 4 – Exit Fast (Scalp Mode):
Book partial profits at 30–40% or when next resistance/support is hit. Avoid overholding!
Bonus Risk Management Tips
Avoid Trading Near News or Events: OI gives false signals in high volatility zones.
1 Trade = 1 Risk Unit Only: Do not revenge trade. Scalping is about accuracy, not frequency.
Trade only when both candle + OI align: No confirmation = no entry.
Rahul’s Tip
Let the chart speak, but let the OI validate. When both agree — that’s where scalpers win big.
Conclusion
Scalping with ATM options using candle structure + OI shift is a powerful setup if executed with discipline. It’s fast, clean, and logical. Focus on 1–2 setups a day — and make them count.
Do you scalp ATM options? Share your entry rules or struggles in the comments below!
Ranging? Not Really. The Big Guys’ Plan Is Already Set…Ever wondered what the crowd is really doing behind the candles?
This video breaks down how to read Cumulative Volume Delta (CVD)—
from retail behavior to sentiment charts, and why the market doesn’t always follow logic.
✅ When price moves one way but the crowd trades the other...
✅ When sideways markets aren’t as neutral as they look...
✅ When emotions take over—and how to spot it in advance.
We’re lifting the hood. The engine’s running. Let’s see what drives it.
This is where money is made — in the retrace, not the rally. Strategy Recommendation
Wait for:
Rejection or bullish reversal pattern in Buy Zone.
CHoCH or BOS in LTF (1H/4H).
Target: 1.1600–1.2000 supply zone (wave v completion).
Risk Management: Below the But Zone or trendline break.
EUR/USD- Elliott Wave + Smart Money Concepts (SMC)SMC Insight
Supply Zone Marked: Between 1.1500 – 1.2000.
Price is heading toward the supply zone.
On the right visual, schematic shows:
Liquidity build-up below equal highs.
Possible liquidity grab just above the supply zone.
Expect reaction or reversal around that supply.
---
Trade Bias
Short-term: Bullish (momentum and structure are up).
Long-term: Watch for reaction at the 1.1500–1.2000 zone. This could be a major sell zone if price shows rejection/mitigation signs
The Ultimate Guide to Smart Money ReversalsLet’s cut to it. Most retail traders get caught chasing moves that were never meant for them. They’re entering late, reacting to structure breaks without context, or fading moves without understanding what’s really happening behind the price.
If you're trying to trade like smart money on the reversal, at the turn then you need to know when the game is flipping. That’s where the Market Structure Shift (MSS) comes in. But not just any MSS. I'm talking about MSS that follow a liquidity sweep and are driven by real displacementnot weak candles, not in consolidation. Real intent. Real shift.
Here’s how I approach it.
What Actually Counts as a Market Structure Shift?
Everyone talks about market structure higher highs, lower lows, etc. But structure breaks alone don’t mean anything. A valid MSS isn’t just about breaking a swing point. It’s why it broke and how it broke that matters.
I only consider a shift valid when three things are in place:
Liquidity has been taken (above a high or below a low).
The shift is caused by a displacement candle that clearly shows urgency.
The move happens with strength, not during chop or consolidation.
If you don’t have all three, it’s just noise.
Liquidity Comes First
Everything starts with a liquidity sweep. That’s the trap.
Price has to reach into a pool of liquidity usually above equal highs, clean swing highs, or below clean lows to grab those orders, and reject. That rejection is key. It shows smart money is offloading positions into retail breakouts or stop hunts.
Without a sweep, I don’t care what breaks. No liquidity = no reversal setup.
So the first thing I do is mark out obvious liquidity levels. Equal highs, equal lows, trendline touches anywhere retail is likely to have their stops sitting. That’s where the fuel is.
Then Comes Displacement
After the sweep, I want to see displacement a sharp, aggressive move in the opposite direction.
Not a weak pullback. Not a slow grind. A real candle that shows intent.
Displacement is always obvious. You’ll get a clean candle, often engulfing multiple others, that breaks structure and leaves behind an imbalance what we call a Fair Value Gap (FVG). That imbalance is the signature of smart money hitting the market hard enough to leave a gap in the order flow.
If the candle’s weak, or if it happens during consolidation, I skip it. Displacement is what separates real reversals from fakeouts.
Here is a clean example of what it should look like.
Confirming the Shift
Once displacement confirms intent, I check if it actually broke structure.
That means:
In an uptrend, I want to see price break a previous higher low after sweeping a high.
In a downtrend, I want price to break a lower high after sweeping a low.
When that happens, that’s your MSS. Price has grabbed liquidity, shown displacement, and broken a key point in the structure. At that point, we’ve got a confirmed shift in control.
Entries, Stops, and Targets
Here’s how I trade it.
After the MSS, I wait for price to pull back into the origin of the move. Usually, that’s going to be one of two things:
The Fair Value Gap (imbalance left by the displacement candle)
Or the MSS line itself (Shown on the example)
Once price comes back into that zone, that’s where I’m interested in getting in.
Stop loss always goes just above the high (for shorts) or below the low (for longs) of the displacement candle that caused the MSS. You’re giving it room to breathe, but keeping it tight enough to protect capital.
Targets are straightforward: go for the next pool of liquidity. That means swing lows (sell-side) if you’re short, or swing highs (buy-side) if you’re long. That’s where price is most likely to be drawn next.
A Clean Bearish Example
Let’s say price is trending up, putting in higher highs and higher lows. Then it takes out a recent swing high liquidity swept.
Immediately after that, a strong bearish candle drops and breaks the most recent higher low. That candle leaves an imbalance behind—perfect.
Now I’ve got:
✅ Liquidity sweep
✅ Displacement
✅ Break of structure
I mark out the FVG / MSS line, wait for price to retrace back into it, and enter the short. My stop goes above the displacement candle high. My target? The next clean swing low. That's the next spot where stops are resting where the market is drawn.
A Few Things to Watch Out For
This method works, but only if you’re strict about the rules.
Don’t take MSS setups in consolidation. Wait for clean, impulsive breaks.
If the shift happens without displacement or imbalance, skip it. It’s not clean.
Be realistic with stops. Tight is good, but don’t choke the trade. Give it the structure it needs.
The biggest mistake I see? Traders jump in too early trying to front-run the shift before displacement confirms it. Let the story unfold. Wait for the sweep. Wait for the candle that slaps the market and breaks structure. That’s your edge.
As shown here, the first "MSS" is invalid and not the A+ setup you're looking for.
Final Thoughts
Trading smart money reversals is about reading intent. You’re not just looking at price, you’re understanding why it moved the way it did.
When you combine a liquidity grab, displacement, and a break in structure, you're aligning with institutional activity. You're trading at the turn when smart money flips the script and leaves everyone else chasing.
This isn’t about trading every break. It’s about knowing which breaks matter.
Keep it clean. Stay patient. Follow the flow.
__________________________________________
Thanks for your support!
If you found this guide helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀
Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈
Supply and Demand by Thapelo Consolidation and Expansion
The markets either do one of two things: Price either consolidates or expands.
Consolidation: a period in the market where price is moving calm which moves in a range known as the dealing range. We will be able to identify a clear high and low to this range.
You have probably heard of the term range bound, ranging, or consolidating. This means that price is typically staying in one area, and just moving sideways, rather than up or down.
The range can be tight (meaning a spread of only a few pounds), or the range can be loose (meaning a spread of hundreds of thousands of pounds from range high to low. This partly will come down to the timeframe implemented.
Expansion: a period in the market where price is moving aggressively in one direction or the other. We will see an impulsive move to the upside, or an impulsive move to the downside, where price will give us large candle bodies or wicks. This is known as expansion.
How to Apply Modern Portfolio Theory (MPT) to Trading?How to Apply Modern Portfolio Theory (MPT) to Trading?
Harry Markowitz’s Modern Portfolio Theory revolutionised investing by providing a structured way to balance potential risk and returns. By focusing on diversification and understanding how assets interact, MPT helps traders and investors build efficient portfolios tailored to their goals. This article explores “What is MPT,” the core principles of MPT, its practical applications, and its limitations, offering insights into why it remains a foundational concept in modern finance.
What Is Modern Portfolio Theory?
Modern Portfolio Theory (MPT) is a financial framework designed to help investors build a portfolio that balances potential risk and returns in the most efficient way possible. Introduced by economist Harry Markowitz in 1952, MPT is grounded in the idea that diversification—spreading investments across different assets—can reduce overall risk without necessarily sacrificing returns.
At its core, MPT focuses on how assets within a portfolio interact with each other, not just their individual performance. Each asset has two key attributes: expected return, which represents the potential gains based on historical performance, and risk, often measured as the volatility of those returns.
The theory emphasises that it’s not enough to look at assets in isolation. Instead, their relationships—measured by correlation—are critical. For instance, combining assets that move in opposite directions during market shifts can stabilise overall portfolio performance.
A central concept of Markowitz’s model is the efficient frontier. This is a graphical representation of portfolios that deliver the highest possible return for a given level of risk. Portfolios below the efficient frontier are considered suboptimal, as they expose investors to unnecessary risk without sufficient returns.
MPT also categorises risk into two types: systematic risk, which affects the entire market (like economic recessions), and unsystematic risk, which is specific to an individual company or sector. Diversification can only address unsystematic risk, making asset selection a key part of portfolio construction.
To illustrate, imagine a portfolio that mixes equities, bonds, and commodities. Equities may offer high potential returns but come with volatility. Bonds and commodities, often less correlated with stocks, can act as stabilisers, potentially reducing overall risk while maintaining growth potential.
The Core Principles of MPT
Markowitz’s Portfolio Theory is built on a few foundational principles that guide how investors can construct portfolios to balance potential risk and returns.
1. Diversification Reduces Risk
Diversification is the cornerstone of MPT. By spreading investments across different asset classes, industries, and geographic regions, traders can reduce unsystematic risk. For example, holding shares in both a tech company and an energy firm limits the impact of a downturn in either industry. The idea is simple: assets that behave differently in various market conditions create a portfolio that’s less volatile overall.
2. The Risk-Return Trade-Off
Investors face a constant balancing act between potential risk and returns. Higher potential returns often come with higher risk, while so-called safer investments tend to deliver lower potential returns. MPT quantifies this relationship, allowing investors to choose a risk level they’re comfortable with while maximising their potential returns. For instance, a trader with a low risk tolerance might lean towards a portfolio with bonds and dividend-paying stocks, whereas someone with a higher tolerance may include more volatile emerging market equities.
3. Correlation Matters
One of MPT’s key insights is that not all assets move in the same direction at the same time. The correlation between assets is crucial. Low or negative correlation—where one asset tends to rise as the other falls—helps stabilise portfolios. For example, government bonds often perform well when stock markets drop, making them a popular addition to equity-heavy portfolios.
How the MPT Works in Practice
Modern Portfolio Theory takes theoretical concepts and applies them to real-world investment decisions, helping traders and investors design portfolios that align with their goals and risk tolerance. Here’s how it works step by step.
The Efficient Frontier in Action
The efficient frontier is a visual representation of optimal portfolios. Imagine plotting potential portfolios on a graph, with risk on the x-axis and expected return on the y-axis. Portfolios on the efficient frontier offer the highest possible return for each level of risk. For example, if two portfolios have the same level of risk but one offers higher returns, MPT identifies it as the better choice. Investors aim to build portfolios that lie on or near this frontier.
Portfolio Optimisation
The goal of Markowitz’s portfolio optimisation is to combine assets in a way that balances potential risk and returns. This involves analysing the expected returns, standard deviations (volatility), and correlations of potential investments. For instance, a mix of stocks, government bonds, and commodities might be optimised to maximise possible returns while minimising overall portfolio volatility. Technology, like portfolio management software, often assists in running complex Modern Portfolio Theory formulas, like expected portfolio returns, portfolio variance, and risk-adjusted returns.
Risk-Adjusted Metrics
Investors also evaluate portfolios using metrics like the Sharpe ratio, which measures returns relative to risk. A higher Sharpe ratio typically indicates a more efficient portfolio. For example, a portfolio with diverse holdings might deliver similar returns to one concentrated in equities but with less volatility.
Adaptability to Changing Markets
While the theory relies on historical data, Markowitz’s Portfolio Theory is adaptable. Investors frequently rebalance their portfolios, adjusting asset allocations as markets shift. For example, if equities outperform and dominate the portfolio, a trader may sell some and reinvest in bonds to maintain the desired risk level.
Limitations and Criticisms of MPT
Modern Portfolio Theory has reshaped how we think about investing, but it’s not without its flaws. While it offers a structured framework for balancing possible risk and returns, its assumptions and practical limitations can present challenges.
Assumption of Rational Behaviour
MPT assumes that investors always act rationally, basing decisions on logic and complete information. In reality, emotions, biases, and unpredictable behaviour play significant roles in markets. For example, during a financial crisis, fear can lead to widespread selling, regardless of an asset’s theoretical value.
Ignoring Tail Risks
The model underestimates the impact of extreme, rare events, known as tail risks. These events, including economic collapses or geopolitical crises, can significantly disrupt even well-diversified portfolios.
Dependence on Historical Data
The theory relies on historical data to estimate risk, returns, and correlations. However, past performance doesn’t always reflect future outcomes. During major market disruptions, correlations between assets—normally stable—can spike, reducing the effectiveness of diversification. For instance, in the 2008 financial crisis, many traditionally uncorrelated assets fell simultaneously.
Simplified Risk Measures
MPT equates risk with volatility, which doesn’t always capture the full picture. Sharp price swings don’t necessarily mean an asset is risky, and relatively stable prices don’t guarantee reliability. This narrow definition can lead to overlooking other important factors, like liquidity or credit risk.
How Investors and Traders Use MPT Today
Modern Portfolio Theory remains a cornerstone of investment strategy, and its principles are widely applied in portfolio construction, asset allocation, and diversification.
Portfolio Construction and Asset Allocation
Central to Modern Portfolio Theory is asset allocation: determining the optimal mix of assets based on an investor’s risk tolerance and goals. A classic example is the 60/40 portfolio, which allocates 60% to equities for growth and 40% to bonds for so-called stability. This balance aims to provide steady possible returns with reduced volatility over time.
Another well-known approach is Ray Dalio’s All-Weather Portfolio, designed to perform across various economic conditions. It includes:
- 30% stocks
- 40% long-term bonds
- 15% intermediate bonds
- 7.5% gold
- 7.5% commodities
This portfolio reflects MPT's emphasis on diversification and risk management, spreading investments across asset classes that respond differently to market shifts.
Alternative Investments and Diversification
MPT has evolved to include alternative investments like real estate, private equity, crypto*, hedge funds, and even carbon credits. These assets often have lower correlations with traditional markets, enhancing diversification. For example, real estate might perform well during inflationary periods, offsetting potential declines in equities.
Investors also consider geographic diversification, combining domestic and international assets to balance regional risks.
Implications for Traders
While MPT is often associated with long-term investing, its principles can inform trading strategies. For instance, traders might diversify their positions across uncorrelated markets, such as equities and commodities, to reduce overall portfolio volatility. Dynamic position sizing—adjusting exposure based on market conditions—also aligns with MPT’s risk-return framework.
The Bottom Line
The Modern Portfolio Theory offers valuable insights into balancing possible risk and returns, helping traders and investors create diversified, resilient portfolios. While it has its limitations, MPT’s principles remain widely used in portfolio construction and trading strategies.
FAQ
What Is the Modern Portfolio Theory?
The Modern Portfolio Theory (MPT) is a framework that helps investors construct portfolios to balance possible risk and returns. It emphasises diversification, using statistical analysis to combine assets with varying risk and return profiles to reduce volatility and optimise potential income.
What Are the Two Key Ideas of Modern Portfolio Theory?
MPT focuses on two main concepts: diversification and the risk-return trade-off. Diversification spreads investments across assets to potentially reduce risk, while the risk-return trade-off seeks to maximise possible returns for a given level of risk.
What Are the Most Important Factors in Modern Portfolio Theory?
Key factors include expected returns, risk (measured by volatility), and correlation between assets. These elements determine how assets interact within a portfolio, enabling investors to build an efficient mix that aligns with their risk tolerance and goals.
What Are the Disadvantages of Modern Portfolio Theory?
MPT assumes rational behaviour and relies on historical data, which does not predict future market behaviour. It also underestimates extreme events and simplifies risk by equating it solely with volatility.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Do You Know the Difference Between an Indicator and a Strategy?A lot of traders jump into Pine Script or apply a script on TradingView without understanding one key difference:
Indicators and Strategies are not the same — especially when it comes to real-time performance and backtesting.
---
What’s the Key Difference?
Indicators
Indicators are visual tools designed to help you analyze price action in real time . They do not track trade performance or simulate trades automatically.
You can use them to:
- Generate signals
- Stack confluences
- Set custom alerts
- Overlay custom visuals on charts
Best for: Chart analysis, signal confirmation, and manual or semi-automated alerts.
---
Strategies
Strategies are built for backtesting . They simulate how your trade logic would have performed historically, using `strategy.entry`, `strategy.exit`, and related functions.
They automatically calculate:
- Hypothetical P&L
- Win/loss ratio
- Drawdowns
Best for: Validating trade logic, optimizing entries and exits, performance tracking.
---
But Here’s the Catch
Many traders assume that once a strategy backtest looks good, it will behave exactly the same in live trading. This assumption can lead to poor decision-making.
❌ Why Forward Testing Isn't Perfect
When you set alerts based on a strategy, you're asking a backtest engine to behave like a live trading engine — and that’s not what it was designed for.
TradingView strategies:
- Only execute on candle close
- Do not simulate intrabar price action
- Do not account for slippage
- Do not reflect real-time market volatility
So:
- Your strategy alert may fire late compared to actual price movement
- Your SL/TP may be hit within a candle, but the strategy won’t know until close
- You may see better backtest results than what happens live
---
Takeaway
If you're using strategies with alerts, it’s critical to understand these constraints:
TradingView’s strategy engine is optimized for historical testing, not for real-time execution. It provides insight into the validity of your logic — but it’s not a replacement for a live execution engine.
Best Practice Recommendations:
- Always forward-test on a demo or paper account first
- Monitor how alerts perform in real-time
- Be ready to adjust parameters based on your asset and timeframe
If you need better responsiveness or real-time adaptability, consider using indicators to generate your alerts. Indicators react to price in real time and are often more suitable for live market conditions.
---
Final Note
Some strategies are built with these limitations in mind. They can still be useful in real-time trading as long as you're aware of how they work.
Transparency is key. Backtesting is a guide, not a guarantee.
Trade smart, stay informed.
Feel free to reach out if you have questions or insights to share!
3 Tips to Make Trading EasierTrading is such a strange beast—both extremely difficult and unparalleled in its simplicity.
Sometimes, we find ourselves floating in effortless flow. Other times, we’re stuck in a storm of confusion, frustration, or overconfidence.
And it’s in these oscillations—the swing between extremes—where the true difficulty lies.
On one end, we show the market less respect than it demands.
On the other, we freeze in fear or get swept away in frustration and rage.
Managing these extremes is part of the trader’s job.
Managing them well… is an art form.
Here are 3 foundational tools that have helped me:
⸻
1. Find. Your. Rhythm.
Each of us is wired differently. Our biochemistry, personality traits, and preferences are all unique—and they absolutely affect how we trade.
Some traders thrive on high-frequency scalping.
Others wait patiently for a single swing setup.
Some feel energized after 6 hours of screen time.
Others burn out after one intense hour.
If you don’t understand your personal rhythm, you’ll constantly be misaligned—not just with your strategy, but with your life.
Workaholics may get bored and start forcing trades.
Laid-back traders may overcommit and burn out fast.
Rhythm isn’t just about preference—it’s about sustainability.
⸻
2. Practice Tolerating Discomfort.
Trading is uncomfortable.
Let’s be real—90% of it ranges from mildly uneasy to outright agonizing.
Practicing discomfort outside of trading has made a huge difference for me:
Cold plunges.
Sadhu boards.
Early morning wake-ups.
Cardio.
Even practicing restraint during family arguments.
These things teach you to sit with that gnawing feeling and not act impulsively.
They train your nervous system to stay stable under pressure.
Trading may not get “easier,” but your capacity for difficulty increases—so it starts to feel easier.
⸻
3. Plan Is Everything.
Trading becomes way simpler when you just show up to execute a plan.
If your plan says there are no trades today—then walk away.
If your plan says take two trades—then take them.
Win or lose, outsource the result to the plan, not to your self-worth.
Then, at the end of a set period (ideally written into the plan), review your execution.
Were you compliant?
What can be adjusted?
A good plan + rhythm alignment + discomfort tolerance = consistency.
⸻
Trading is obviously more complex than three bullet points can capture—but the foundation you can build from these is immense.
Thanks for reading.
Happy trading.
—Lightwork_
Major Life Update: I Left the United Nation to Trade Full TimeAfter 11+ years of working in some of the toughest crisis zones — Jordan, Turkey, Syria, Iraq, HQ Geneva, and Ukraine — I’ve officially stepped down from my role as Head of the Information Management Team for the Health Cluster – World Health Organization – Ukraine Office.
It wasn’t easy.
But it was time.
The pressure, the politics, the burnout… it all started to weigh too heavy. And somewhere along the way, I realized I wasn’t living — I was just surviving.
And with the recent UN funding cuts — especially following the decision by Trump to halt contributions — it became clear that working in the humanitarian system is no longer something I can rely on for long-term stability or financial security for my family.
Trading changed that for me.
It gave me space to think, to breathe, and to build something that’s mine. It taught me discipline, patience, and how to trust myself again.
So now, I’m stepping into a new chapter — full-time day trader.
Not chasing the noise. Just sticking to my setups, showing up every day, and trusting the process.
I’m sharing this here because honestly, everyone following me feels like my new big family — and to the good friends I’ve made in this community, thank you for being part of this journey.
This isn’t the end of the road. It’s a new one.
And I’m walking it fully awake this time.
Wish me luck, see you in the minds section :)
Moe,
#TradingLife #Mindset #DayTrader #Resignation #LifeShift #NewChapter #FinancialFreedom #SeeYouInTheMindsSection
Bitcoin, Gold, S&P 500 and InflationBitcoin, Gold, S&P 500 and Inflation
This is a 3 year view (2022 - 2025 to date), 1 week comparison chart of Bitcoin, Gold, S&P 500 and US cumulative rate of inflation. The most interesting part of this analysis to me is that the S&P 500 bounced off the cumulative rate of inflation slope. I did not know that until after I set up the comparison.
Gold = +80%
BTCUSD = +50%
S&P 500 = +19%
US cumulative rate of inflation:
2022 = +6.5%
2023 = +3.4%
2024 = +2.9%
3 yr = +10.8%
2025 = +2.4% forecast
Best Technical Indicator to Identify Order Block & Imbalance
Your ability to correctly identify Order Blocks on a price chart is essential for profitable trading Smart Money Concept.
In this article, I will show you a great technical indicator that will help you to spot Order Blocks on any financial market.
First, in brief, let me give you my definition of Order Block.
The problem is that in SMC trading there is no one single definition of that and many traders interpret it differently.
To me, an Order Block is a specific zone on a chart from where a strong price movement initiates and where a significant imbalance between supply and demand occurs .
This imbalance should strictly originate from a liquidity zone.
That definition implies that in order to identify an Order Block zone, one should learn to properly identify the imbalance and liquidity zones.
And again, there is no precise definition of an imbalance on a price chart. To me, a bullish imbalance is a formation of a bullish engulfing candle - the one that engulfs a range of previous bearish candle with its body.
Above is the example of a valid Order Block on GBPUSD.
A bearish imbalance is a formation of a bearish engulfing candle - the one that engulfs a range of a previous bullish candle with its body.
Above, you can see the example of an Order Block on USDCAD, based on a bearish imbalance.
There is one technical indicator that will help you to recognize such Order Blocks. It is called " All Candlestick Patterns" on TradingView.
Open settings of the indicator and make it show ONLY Engulfing Candles and choose "No Detection" in "Detect Trends Based on".
After that, hide the indicator and first, Identify the liquidity zones on a chart and wait for a test of one of these zones.
Here is a test of a liquidity zone on NZDUSD on an hourly time frame.
After that, turn on the indicator, and wait for its signal.
You can see that after some time, the price formed a bullish imbalance with a bullish engulfing candle. The indicator highlight that candle.
The Order Block zone will be based on the lowest low of 2 candles and the high of a bearish candle preceding the imbalance.
One more example. We see a test of a significant liquidity zone on EURAUD on a 4H time frame.
We turn on the indicator and look for a signal.
A bearish imbalance is formed and the indicator immediately notifies us.
An Order Block Zone in that case will be the area based on the highest high of 2 candles and the low of a bullish candle preceding the imbalance .
Of course, there will be the rare cases when the indicator will miss the imbalances. But while you are learning to recognize Order Blocks, this indicator will definitely help you a lot!
Thank you for reading!
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Trendlines and broken trendlines resultsTrendlines are one of the major supports or resistances and on this Bitcoin chart we can see few examples which price react well to them and start to pump from green trendlines and sometimes dump from red trendlines and it is easy to draw one trendline ----> simple like drawing support line this time try to find support line which is Diagonal and one or two touch with this trendline you can find next support which is third touch and you can set your buy there like below example:
also sometimes trendline broke and their support turn to resistance and after retest of breakout you can enter sell like example:
there are so many rules about trendline like when it can break or after how many touches trendline lose it's power and ... we can discuss in comments more about them so ask any questions there and lets discuss.
Also currently if we have a valid breakout of red trendline to the upside for Bitcoin price can easily pump to 90K$ at least.
DISCLAIMER: ((trade based on your own decision))
<<press like👍 if you enjoy💚
How Can You Use the Ascending Triangle in Trading?How Can You Use the Ascending Triangle in Trading?
An ascending triangle is a chart pattern traders rely on to identify potential breakouts and further price movements. Recognised for its versatility, this pattern can signal trend continuations across all types of markets, including stocks, forex, commodities, and cryptocurrencies*. In this article, we’ll break down how to spot and trade this formation.
What Is an Ascending Triangle?
An ascending or rising triangle is a bullish chart pattern that usually signals a trend continuation. It is framed by two trendlines. The upper line connects highs placed at almost the same level, while the lower line is angled and connects higher lows.
The triangle’s appearance is explained as follows: buyers try to push the price up, but they meet a strong resistance level, so the price rebounds. Still, buyers have strength, which is reflected in higher lows. Therefore, they continue pushing the price until it breaks above the resistance level. The period during which the price bounces back and forth between the two lines depends on the timeframe. On daily charts, the triangle can be in place for over a week.
Note: The ascending triangle is a continuation chart pattern but sometimes it can be used as a reversal signal. It happens when the ascending triangle occurs in a downtrend. It’s the biggest challenge of all the triangles.
The rising triangle is one of the setups in the triangle group. There are also descending and symmetrical formations.
Ascending, Descending, and Symmetrical Triangles: The Differences
The triangle group of patterns comprises ascending, descending, and symmetrical formations.
The ascending triangle is a bullish formation and the descending triangle is bearish. At the same time, the symmetrical triangle is a bilateral setup that signals a rise and a fall in the price.
To distinguish between them, traders draw trendlines. In a rising triangle pattern, an upper trendline is horizontal and connects equal or almost equal highs, while the lower trendline is rising as it connects higher lows. In a descending or falling triangle pattern, the lower trendline is horizontal and connects equal or almost equal lows, while the upper trendline declines, going through lower highs. A symmetrical triangle has a falling upper line that connects lower highs and a rising lower line that connects upper lows.
How Traders Spot the Ascending Triangle
It’s quite easy to identify the formation on a chart. Still, there are a few rules that may help a trader determine its strength.
- The trend strength. Although the setup may appear on any timeframe, traders look for strong long-term trends as risks of a fakeout on low charts are higher.
- Consolidation. Triangles appear when the market consolidates within an overall trend.
- Trendlines. Trendlines must be drawn through at least two points. Still, the larger the number of points, the higher the possibility the setup works.
- Breakout. Can the ascending triangle pattern be bearish? No. It is a bullish formation that appears in a bullish and a bearish trend but always signals a potential price rise.
How Can You Trade Ascending Triangles?
The rising triangle pattern is usually considered a continuation setup formed in an uptrend. Still, if the ascending triangle is in a downtrend, it may signal a trend reversal. The trading rules will be the same in both cases.
As with most chart patterns, triangles have specific rules that help traders place entry and exit points.
Entry
The theory suggests trades go long when the price breaks above the setup's upper boundary. In a conservative approach, traders wait for the price to form at least several candles before entering the market. In a risky strategy, traders open a position as soon as the breakout occurs, and the breakout candlestick closes.
It's worth considering trading volumes as breakouts often turn into fakeouts, meaning the market returns to its previous trend. The chance of a strong breakout is higher if the volumes are high.
However, increased volumes aren't the only tool used to confirm a breakout. Many traders consider trend indicators and oscillators to potentially limit the risks of bad trading decisions.
- If the triangle serves as a continuation setup, it may be helpful to look at the signals of trend-strength indicators, including the average directional index.
- If traders use the ascending triangle as a reversal setup, they usually implement indicators that may signal a trend reversal, including the moving average, the relative strength index, the moving average convergence divergence, and the stochastic oscillator.
Take Profit
A standard take-profit target equals the size of the largest part of the setup and is measured just from the breakout trendline.
Stop Loss
Traders consider several options when placing stop-loss levels. In a conservative approach, they implement the risk/reward ratio, which is usually 1:2 or 1:3 but depends on the trader's willingness to take risks. Also, traders utilise the upper trendline as a threshold and place the stop-loss order just under it.
Note: These are general rules. However, traders can develop their own trading strategies and adjust the pattern's parameters and rules according to their trading approach.
Ascending Triangle: Strategy
In this strategy, traders observe an existing bullish trend and the formation of an ascending triangle, which suggests the potential for a continuation pattern. Incorporating a short-term moving average, such as a 9-period EMA, provides dynamic support, aligning with the trendline to strengthen the setup.
Entries
- Traders typically wait for the price to break through the top trendline of the ascending triangle.
- A strong candle breaking the resistance level adds confidence, though any move above the top trendline can serve as an entry signal.
- The price should also trade above the moving average, offering additional confirmation.
- An order is often placed at the top trendline, anticipating a retracement to this level, which now acts as support.
Stop Loss
- Traders place a stop-loss below the most recent swing low within the triangle.
- For more conservative traders, the stop may be set at any prior swing low, depending on risk tolerance.
Take Profit
- Many traders aim for a risk-reward ratio of 1:2 or 1:3.
- Profits might also be taken at the next strong resistance level, aligning with the market structure.
Rising Triangle: Benefits and Drawbacks
This formation has advantages and pitfalls that traders consider when developing their strategies.
Benefits
- It can be used on any timeframe. Triangles are formed on charts of any period. Still, they might be more effective if the setup appears in a solid trend on a high timeframe.
- It can be used for any asset. Another advantage is that the ascending triangle pattern is used for stock, commodity, cryptocurrency*, and Forex trading.
- Easy to spot. A trader only needs to draw two trendlines to define this setup on the chart.
- Exact entry and exit points. Although traders can develop their entry and exit points, the setup assumes there are specific rules traders with any experience utilise.
Drawbacks
- It can confuse traders. As the rising triangle is used as a reversal and continuation formation, traders with less experience may be confused with its signals.
- False breakouts. The setup works when a price breakout occurs. However, there is a high risk the breakout will appear to be a fakeout, and the price will return.
- The pattern may fail. Aside from a fakeout, there is another risk when trading with triangles. The price may break another side of the formation, and the formation will fail.
- The trading rules may not work. Although specific rules indicate where a trader should place entry and exit points, buyers may be too weak to push the price to the take-profit target.
Final Thoughts
The ascending triangle is one of the more common chart patterns traders use when trading various assets. Still, there is no 100% guarantee that it will work every time you spot it on a price chart. It's vital to remember that every signal must be confirmed with other indicators, chart patterns, and candlesticks. Also, it's a well-known fact that any trade involves risks that should be considered every time a trader enters the market. Improve your skills by practising on different assets and timeframes.
FAQ
How Do You Form an Ascending Triangle?
An ascending triangle is formed when the price action creates a series of higher lows while facing a resistance level, resulting in a horizontal upper trendline and a rising lower trendline. The price consolidates between these two lines before potentially breaking out above the resistance, signalling a bullish continuation.
Is an Ascending Triangle Bullish or Bearish?
The ascending triangle is a bullish pattern. It suggests that buyers are gaining strength as higher lows form, increasing the likelihood of a breakout above the resistance level. There is a descending triangle pattern that usually appears in a downtrend, signalling a downward movement.
How to Enter an Ascending Triangle?
According to the theory, in triangle pattern trading, it’s common to enter the market when the price breaks above the upper trendline of the triangle. In a conservative approach, traders wait for confirmation through several closing candles after the breakout. The increased volume also adds confidence to the trade.
What Is the Ascending Triangle Pattern Retest?
A retest occurs when the price breaks out of the triangle but then briefly falls back to test the former resistance level. A successful retest confirms the breakout and can provide an additional entry point.
How Long Does an Ascending Triangle Pattern Take to Form?
The formation of a bullish triangle pattern can vary based on the timeframe. On daily charts, it can take several days to weeks, while on shorter timeframes, it might form within hours.
What Is the Difference Between an Ascending Triangle and a Rising Wedge?
In comparing the ascending triangle vs. the rising wedge, it’s key to recognise that the rising wedge has converging trendlines, signalling a possible weakening trend, often leading to a bearish reversal. In contrast, an ascending triangle trading pattern typically signals a continuation of the uptrend.
*At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.
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