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What's Flowing: Trump’s Tariffs – Institutional Insight On this episode of “What’s Flowing”, I dive into a document shared with me by an institutional trader analyzing the impact of Trump’s tariffs on the markets. With global trade in focus, we’ll explore how these policies are affecting currencies, commodities, and equities, and what institutional traders are watching closely. Are tariffs a strategic move for economic leverage, or are they setting the stage for market volatility? I’ll break down what I can from the report, reading between the lines to extract key takeaways for traders and investors. Stay tuned as we analyze the potential winners and losers in this shifting economic landscape, and what it all means for your portfolio.

Education

03:44

by moneymagnateash

FOMO Traps: How Market Makers Capitalize on Panic Selling Hello and greetings to all the crypto enthusiasts, ✌ Reading this educational material will require approximately 3 minutes of your time. For your convenience, I have summarized the key points in 3 concise lines at the end . I trust this information will prove to be insightful and valuable in enhancing your understanding of Bitcoin and its role in the global financial landscape. The influence of FOMO (Fear of Missing Out) on market prices is particularly pronounced across global financial markets, and the cryptocurrency market is certainly not immune to its effects. Imagine that today, many of you log into your profiles, expecting a minor 5% dip, only to be taken aback by a much sharper decline. Instead of the anticipated 5%, you find your portfolio down by 10%, or in some cases, even 30%. In this situation, how do you respond? This is where the market’s true dynamics come into play. Rather than holding steady, many of you might impulsively decide to liquidate your positions in a panic, believing that this is the best way to minimize further losses. However, as you make these decisions, the market maker — who operates from an elevated position, almost like a mastermind pulling the strings in an anime like *Solo Leveling* — watches this reaction with amusement. Their grin widens as they anticipate your next move. This is the essence of FOMO at work. As fear sets in, some of you may be tempted to take short positions, convinced that the market will continue to fall and that you can secure profits in the downturn. However, the market maker has likely anticipated this and is preparing for the next step: hunting your stop-loss orders. Always keep in mind that in the world of cryptocurrency, the true market manipulators operate like skilled hunters, waiting to capitalize on your fear and mistakes. To avoid falling into these emotional traps , it’s essential to take a step back and reassess your strategy. Acting purely on emotion can cloud your judgment, leading to decisions that could harm your long-term investment goals. It’s crucial to treat your assets with the respect they deserve, especially given the time, effort, and sacrifice it took to accumulate them. Establish clear and reasonable stop-loss and profit-taking levels before making any decisions, and stick to them. While I personally lean towards a bearish outlook on the market in the immediate term, it’s important to recognize that market makers typically aim for a few more rallies — perhaps even pushing for one or two additional all-time highs — before the broader crypto winter settles in. These cycles are common in volatile markets, and it’s vital to be prepared for both upward surges and inevitable corrections. However , this analysis should be seen as a personal viewpoint, not as financial advice, and it’s important to be aware of the high risks that come with investing in crypto market and that being said, please take note of the disclaimer section at the bottom of each post provided by the 🧨 Our team's main opinion is: 🧨 FOMO plays a huge role in market moves, especially in crypto. Many of you might expect a small drop, but instead, face a sharp decline, leading to panic selling. This plays right into the hands of market makers, who capitalize on your fear, sometimes even hunting your stop-losses. To avoid falling into this trap, stay calm, stick to your plan, set clear profit and loss levels, and avoid emotional decisions. While the market may dip, I believe there could still be a few more highs before the crypto winter hits. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋

Education

Double Bottom Pattern: Bitcoin Total Domination Last week my post on Bitcoin dominance played out faster than it was expected. (see related) This indicator broke out into 60-70% area. So, I switched to a weekly time frame and spotted a classic reversal pattern called "Double Bottom" in the making for you. Let's break it down. We have two bottoms highlighted with yellow arcs in the same area. Indicator eyes the middle top between bottoms, it is called "Neckline" Now, let's breakdown buying technique: 1) buy entry is at the breakout above Neckline (green dashed line) 2) stop loss is at the valley of the right bottom (red dashed line) 3) target is located at the depth of the right bottom from the Neckline. in our case it can't be higher than 100% and is set at the maximum (blue dashed line) Its amazing that technical analysis could predict things that out of our scope as yet.

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How To identify the Jesse Livermore Buy Pattern As traders, we're always on the lookout for reliable patterns that can give us an edge in the market. One such pattern, popularized by the legendary trader Jesse Livermore, is the Accumulation Cylinder with Widening Mouth. This pattern is a rare but potentially explosive formation that can signal a significant price move. What is the Accumulation Cylinder with Widening Mouth? The Accumulation Cylinder with Widening Mouth is a technical analysis pattern where the price of an asset moves back and forth between two non-parallel lines, creating a cylinder-like shape. Over time, the "mouth" of the cylinder widens as the price continues to fluctuate within the pattern. This pattern is often seen during periods of consolidation, where the market is accumulating before a potential breakout. Key Characteristics Non-Parallel Lines: The price moves between two trendlines that are not parallel. Widening Mouth: The distance between the trendlines increases over time. Consolidation: The pattern typically forms during a period of consolidation, where the price is ranging within a defined area. Volume: You must see that the volume size is as pictured in the schema. This post is real evidence that such a pattern does exist. In addition, you can see that the consolidation period takes time to develop... No need to rush... Also, if you have not got on it from the start, by looking at the past, you can estimate that the runup is just starting, so you can still get some of the cream. The Plus and Minus are showing increasing volume vs decreasing volume.

Education

Refreshing the conversation. Showing my learners under the hood Recently I've been lucky enough to mentor an 18 year old into the world of crypto and the markets Being able to speak with wisdom instead of trying to factor in a ridged mindset gave me the freedom to speak about where MTOPS truly originated from Listen in with an open mind

Education

20:00

by Blayno_MTOPS

Probabilistic Realm I remember taking the CMT exam, where one question referenced the Efficient Market Hypothesis (EMH), which asserts that price action is purely random. To avoid losing points, I had to select “random” as the correct answer, despite knowing that market behavior is far more structured than EMH suggests. Despite of passing I still won't ever agree that market is random. Prices are neither random nor deterministic. Market fluctuations follow a chaotic structure, but chaos is not the same as randomness. Chaos operates within underlying patterns and scaling, whereas randomness lacks any order or predictability. Although chaos makes predictions difficult, keep in mind that the universe is not random— effects still follow causes in continuity . No matter how chaotic a system may seem, it always follows a trajectory toward a certain point. For example, in Lorenz’s model of chaos, the trajectory formed a pattern resembling the wings of a butterfly. Understanding these patterns of chaos has practical applications. In the market, even a slight fluctuation can trigger irreversible changes, reinforcing the idea that we cannot rely on absolute forecasts— only probabilities . The market is not necessarily a reflection of the economy; rather, it reflects participants’ feelings about the “economy.” The human emotional component drives the uncertainty and chaos, making it essential to visualize price dynamics exclusively through "systematic" lens. Market Structure Is Self-Referential Markets move in proportion to their own size, not in fixed amounts. Price is arbitrary, but percentage is universal – A $10 move on Bitcoin at $100 is not the same as a $10 move at $100,000. Percentage metrics reflects this natural scaling and allows comparability across assets and timeframes – A 50% swing in 2011 holds similar structural significance to a 50% swing in 2024, despite price differences. Using log scale is a must in unified fractal analysis. Percentage swings quantify the intensity of collective emotions—fear, panic, euphoria—within market cycles. Since markets are driven by crowd psychology, percentage changes act as a unit of measurement for emotional extremes rather than just price fluctuations. After all it's the % that make people worry.. The magnitude of percentage swings encodes emotional energy, shaping the complexity of future market behavior. This means that larger past emotional extremes leave deeper imprints on market structure, influencing the trajectories future trends. The inverse relationship between liquidity and psychology of masses partially explains the market’s fractured movements leading to reversals. In bullish trends, abundant liquidity fosters structured price behavior, allowing trends to develop smoothly. In contrast, during bearish conditions, fear-driven liquidity contraction disrupts market stability, resulting in erratic price swings. This dynamic highlights how shifting sentiment can amplify price distortions, causing reactions that are often disproportionate to fundamental changes. PROBABILISTIC REALM Rather than viewing fluctuations as a sequence of independent events, price action unfolds as a probabilistic wave shaped by market emotions. Each oscillation (outcome) is relative to historical complexity, revealing the deep interconnectedness of the entire chart that embodies the “2-Polar Gravity of Prices.” Fibonacci numbers found in the Mandelbrot set emphasizes a concept of order in chaos. The golden ratio (Phi) acts as a universal constant, imposing order on what appears to be a chaotic. This maintains fractal coherence across all scales, proving that price movements do not follow arbitrary patterns but instead move relative to historic rhythm. The reason why I occasionally have been referring to concepts from Quantum Mechanics because it best illustrates the wave of probability and probabilistic realm of chaos in general. Particularly the Schrodinger's wave equation that shows probability distributions. Key intersections in Fibonacci-based structures function as "quantum" nodes, areas of market confluence where probability densities increase. These intersections act as attractors or (and) repellers, influencing price movement based on liquidity and market sentiment. Similar to Probability Distribution in QM. Intersections of Fibonacci channels reveal the superposition of real psychological levels, where collective market perception aligns with structural price dynamics. These points act as probabilistic zones where traders’ decisions converge, influencing reversals, breakouts, or trend continuations. Don’t expect an immediate reversal at a Fibonacci level—expect probability of reversal to increase with each crossing. To prove that Efficient Market Hypothesis is wrong about prices being random, I'd go back to a very distant past from current times. For example, price fell 93% from 2011 ATH, reversed and established 2013 ATH. Using a tool "Fibonacci Channels" to interconnect those 3 coordinates reveals that markets move within its fractal-based timing derived from direction. If prices were random, this would have never happened. The bottomline is that viewing current price relative to history is crucial because markets operate within a structured, evolving framework where proportions of past movements shape future probabilities. Price action is not isolated—it emerges from a continuous interaction between historical trends as phases of cycles, and liquidity shifts. By analyzing price within its full historical context , we can differentiate between temporary fluctuations and meaningful structural shifts justified by the fractal hierarchy. This approach helps identify whether price is expanding, contracting, or aligning with larger fractal cycles. Without referencing historical complexity, there is a risk misinterpreting patterns from regular TA, overreacting to short-term noise, and overlooking the deeper probabilistic structure that governs price behavior.

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Leap Ahead with a Regression Breakout on Crude Oil The Leap Trading Competition: Your Chance to Shine TradingView’s “The Leap” Trading Competition presents a unique opportunity for traders to put their futures trading skills to the test. This competition allows participants to trade select CME Group futures contracts, including Crude Oil (CL) and Micro Crude Oil (MCL), giving traders access to one of the most actively traded commodities in the world. Register and compete in "The Leap" here: TradingView Competition Registration . This article breaks down a structured trade idea using linear regression breakouts, Fibonacci retracements, and UnFilled Orders (UFOs) to identify a long setup in Crude Oil Futures. Hopefully, this structured approach aligns with the competition’s requirements and gives traders a strong trade plan to consider. Best of luck to all participants. Spotting the Opportunity: A Regression Breakout in CL Futures Trend reversals often present strong trading opportunities. One way to detect these shifts is by analyzing linear regression channels—a statistical tool that identifies the general price trend over a set period. In this case, a 4-hour CL chart shows that price has violated the upper boundary of a downward-sloping regression channel, suggesting the potential start of an uptrend. When such a breakout aligns with key Fibonacci retracement levels and existing UnFilled Orders (UFOs), traders may gain a potential extra edge in executing a structured trade plan. The Trade Setup: Combining Fibonacci and a Regression Channel This trade plan incorporates multiple factors to define an entry, stop loss, and target: o Entry Zone: An entry or pullback to the 50%-61.8% Fibonacci retracement area, between 74.60 and 73.14, provides a reasonable long entry. o Stop Loss: Placed below 73.14 to ensure a minimum 3:1 reward-to-risk ratio. o Profit-Taking Strategy: First target at 76.05 (38.2% Fibonacci level) Second target at 77.86 (23.6% Fibonacci level) Final target at 78.71, aligning with a key UFO resistance level This approach locks in profits along the way while allowing traders to capitalize on an extended move toward the final resistance zone. Contract Specifications and Margin Considerations Understanding contract specifications and margin requirements is essential when trading futures. Below are the key details for CL and MCL: o Crude Oil Futures (CL) Contract Details Full contract specs: CL Contract Specifications – CME Group Tick size: 0.01 per barrel ($10 per tick) Margin requirements vary based on market conditions and broker requirements. Currently set around $5,800. o Micro WTI Crude Oil Futures (MCL) Contract Details Full contract specs: MCL Contract Specifications – CME Group Tick size: 0.01 per barrel ($1 per tick) Lower margin requirements for more flexible risk control. Currently set around $580. Choosing between CL and MCL depends on risk tolerance and account size. MCL provides more flexibility for smaller accounts, while CL offers higher liquidity and contract value. Execution and Market Conditions To maximize trade efficiency, conservative traders could wait for a proper price action into the entry zone and confirm the setup using momentum indicators and/or volume trends. Key Considerations Before Entering Ensure price reaches the 50%-61.8% Fibonacci retracement zone before executing the trade Look for confirmation signals such as increased volume, candlestick formations, or additional support zones Be patient—forcing a trade without confirmation increases risk exposure Final Thoughts This Crude Oil Futures trade setup integrates multiple confluences—a regression breakout, Fibonacci retracements, and UFO resistance—to create a structured trade plan with defined risk management. For traders participating in The Leap Trading Competition, this approach emphasizes disciplined execution, dynamic risk management, and a structured scaling-out strategy, all essential components for long-term success. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.

Education

ETH | Alternative Chart Pattern | Education Just a short update for my latest C&H post Price is also forming an Ascending Triangle pattern with a liquidity zone of $2,800 - $3,000 for an average spot for buyer to step in When trading chart patterns it's best to figure out how to jump in before the breakout similarly to the last touches highlighted in blue on the bottom trendline You can see that price was forming a bottom-like pattern or what I also like to call price accumulation and then vice versa for the tops.

Education

Foundations of Mastery: 2025 Mentorship Begins!📢 Welcome to the 2025 Mentorship Program! Greetings, Traders! This is the first video of the 2025 Mentorship Program, where I’ll be releasing content frequently, diving deep into ICT concepts, and most importantly, developing structured models around them. My goal is to help you gain a deeper understanding of the market and refine your approach to trading. Before we get started, I want to take a moment to speak to you directly. 💭 No matter where you are in your trading journey, I pray that you achieve—and even surpass—your goals this year. 📈 If you’re striving for consistency and discipline, may you reach new heights. 💡 If you’ve already found success, may you retain and refine your craft—because growth never stops. 🎯 If you’re just starting out, I pray you develop patience, discipline, and above all, accountability—because true progress comes when we own our failures and learn from them. 🔥 If you’ve been trading for years but still struggle with consistency, do not give up. The greatest adversity comes when you’re closest to success. Stay disciplined, stay dedicated, and keep pushing forward. Above all, let this be a year where we grow together—not just as traders, but as individuals. May we foster humility, respect, and a learning environment where both experienced and new traders can share knowledge and thrive. 🙏 I pray over these things in the name of Jesus. Amen. Let's have a great year! The_Architect

Education

20:00

by The_Archi-tect

Stop Loss Mastery: Methods Of Trade Protection Stop Loss and Take Profit represent the fundamental boundaries of every trade, acting as the cornerstones of risk management in trading. While both are important, Stop Loss carries particular significance and is considered more crucial than Take Profit. In manual trading, implementing a Stop Loss is absolutely essential, whereas Take Profit settings remain optional, offering traders more flexibility in managing their profitable positions. Traders can employ various methods to set their SL levels, and while specific trading systems often dictate their own rules, several universal approaches have proven effective. Let's examine one of the most common methods. 📍 On the Local Extrema This method offers two primary variations. The first involves placing your Stop Loss relative to the signal candle. For buy positions, you would set the Stop Loss several pips below the minimum of the bullish signal candlestick. Conversely, for sell positions, you would place it several pips above the maximum of the bearish signal candlestick. The second variation focuses on the last local extreme point rather than the signal candle itself. When opening a buy position, you would position your Stop Loss a few points below the most recent local minimum. For sell positions, you would place it above the most recent local maximum. However, traders should be aware of a significant drawback to these approaches: their predictability. Market makers and experienced traders can easily identify these common Stop Loss placement patterns on their charts. They often exploit this knowledge by deliberately pushing prices to levels where they anticipate a concentration of Stop Loss orders. After triggering these stops and forcing smaller traders to close their positions at a loss, they frequently allow the price to resume its original direction. This practice, known as "stop hunting," particularly affects retail traders who rely on these conventional placement methods. 📍 Setting Stop Loss by Key Price Levels When using price levels for Stop Loss placement, traders can take advantage of significant order accumulation points that are naturally more resistant to manipulation. This method requires placing the Stop Loss a few points beyond the key level - below when buying and above when selling. A key advantage of this approach is that it typically positions the Stop Loss well beyond the last local minimum (for buy trades) or maximum (for sell trades). This strategic placement helps protect positions from premature exits that might occur with simpler Stop Loss methods. 📍 Technical Indicator-Based Stop Loss The ATR or Parabolic SAR indicator offers a straightforward approach to Stop Loss placement that appeals particularly to newer traders. Its clear visual markers provide explicit guidance for Stop Loss positioning, with traders simply placing their stops at the SAR marker level. This method offers an interesting advantage: traders can manually adjust their Stop Loss with each new candle formation, creating a flexible alternative to traditional trailing stops. However, like extrema-based stops, indicator-based placement can be predictable and potentially vulnerable to market manipulation. 📍 Stop Loss Based on Fundamentals Rather than relying solely on pre-set Stop Loss levels, fundamental analysis often guides manual exit decisions. Prudent traders might close positions before significant market events, such as: • At the end of the American trading session when market activity naturally declines • Shortly before major economic news releases that could trigger substantial price movements Some traders incorporate fundamental factors into their Stop Loss calculations. For instance, they might set stops based on average daily price movements for specific currency pairs - like using a 70-pip Stop Loss for FX:EURUSD trades, reflecting that pair's typical daily range. 📍 Advanced Technical Stop Loss Strategies Beyond basic indicator-based stops, traders can employ more sophisticated technical analysis tools for exit trades. These might include: • Moving average crossovers • Stochastic oscillator overbought/oversold signals These approaches often require active management, with traders monitoring indicators in real-time and executing manual exits when their chosen signals appear. 🔹 Psychological Aspects of Stop Loss Management The psychological impact of Stop Loss execution presents a significant challenge for many traders. Even when a Stop Loss performs its intended function of limiting potential losses, traders may experience: • Feelings of personal failure • Diminished confidence in their trading system • General market skepticism • Emotional distress after multiple consecutive stops 🔹 Avoiding Mental Stop Losses While some traders prefer "mental" stops over actual platform orders, this approach carries significant risks: • Technical failures could prevent manual exits • Emotional barriers might delay necessary exits • Small losses can balloon into significant account drawdowns To protect against these risks, traders should always implement their mental stops as actual platform orders, ensuring systematic risk management regardless of market conditions or psychological pressures. This structured approach to Stop Loss placement combines technical precision with psychological awareness, helping traders develop both the skills and mindset needed for successful risk management. 🔹 Additional Position Management Methods In trading, while Stop Loss and Take Profit orders form the foundation of exit strategies, several sophisticated techniques can help traders optimize their position management. Let's explore these methods that go beyond basic exit orders. ⚫️ Breakeven Stop Adjustment One of the most psychologically powerful position management techniques involves moving your Stop Loss to the trade entry point, effectively eliminating downside risk while maintaining upside potential. This strategy becomes particularly valuable when price movement has demonstrated strong momentum in your favor. The conventional approach suggests adjusting to breakeven when the price has moved in your favor by double the initial Stop Loss distance. For instance, consider a trade with a 20-pip Stop Loss and a 60-pip Take Profit target. When the position shows 40 pips of profit (twice the initial risk), moving the Stop Loss to the entry point ensures you won't lose money on the trade while still allowing for further gains. ⚫️ Dynamic Risk Management with Trailing Stops Trailing Stops represent an evolution in risk management, allowing traders to protect accumulated profits while maintaining exposure to continued favorable price movement. This technique dynamically adjusts your Stop Loss level as the price moves in your favor, essentially "trailing" behind the price at a predetermined distance. ⚫️ Strategic Partial Position Closure Traders often face a dilemma when price approaches their Take Profit level: should they close the entire position or attempt to capture additional gains? The partial closure strategy offers a balanced solution. When market conditions suggest potential for extended movement beyond your initial target, consider closing a portion of your position (typically 70-80%) at the original Take Profit level while allowing the remainder to pursue more ambitious targets. This approach becomes particularly relevant when trading near significant technical levels. For example, if you're holding a long position with a Take Profit set below a major resistance level, and technical indicators suggest this level might break, closing most of your position secures profits while maintaining exposure to potential breakout gains. 📍 Conclusion While numerous exit strategies exist in trading, successful execution requires more than just mechanical application of techniques. True trading mastery emerges from the ability to recognize market context, understand both technical and fundamental factors, maintain emotional equilibrium, and make flexible decisions within established risk parameters. The journey of becoming a skilled trader involves developing judgment about when to apply different exit strategies. This wisdom comes through experience in the markets, careful observation of price action, and a deep understanding of how different approaches work in varying market conditions. Traders gradually build their expertise by starting with fundamental concepts and progressively incorporating more sophisticated position management techniques into their trading approach. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣

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Trading BITCOIN and other things: less is more I present in the video a strategy I devised to trade Bitcoin that proved to work on a cluster of other ETFs and stocks.

Education

12:29

Episode 30 <<Trade Surplus and Trade Deficit>>"3-Minute Mini Class" Sharing basic financial knowledge every day, guiding you from beginner to expert. Follow me and improve a little bit every day! Financial freedom is getting closer to you!

Education

by Ronnie-Economy

The Trading Quest: Leveling Up Your Trading Game Hello, fellow traders. In this education post I will present the evolution of a trader as levels because, truth be told, trading sometimes feels like a video game—except the boss fights are market volatility, and here the only cheat code is discipline. Developing a winning strategy is a journey that starts with basic understanding and evolves into a well polished plan. For this to happen, certain levels have to be "burnt". So below I will outline what I think are the levels of development a winning trading strategy, starting from initial experimentation to highly refined and scalable strategy: 1️⃣ Level 1: The Trial and Error Phase In the beginning, traders experiment with different strategies, tools, and systems. They may rely on random tips, indicators, or systems they read about online, often jumping from one strategy to another without a clear understanding of why one works and another doesn't. Important Aspects: The main issue here is lack of consistency. Strategies often lead to inconsistent results because traders fail to backtest or assess the viability of a system over time. At this stage, the trader might experience frustration as they can't pinpoint why certain strategies work or fail. Why? Testing and refining are vital to developing a strategy. A trader must learn the importance of understanding market conditions and being patient with their trial-and-error process. Backtesting becomes an invaluable tool for this level. 2️⃣ Level 2: The Search for the Right Strategy By this stage, traders understand that there is no "perfect" strategy, but a variety of strategies can work depending on the market behavior. They start to narrow down their focus and look for strategies that align with their risk tolerance, personality, and time commitment. Important Aspects: The trial here is resisting the temptation to continuously jump between different strategies. Traders may still be tempted by the allure of quick profits and may find themselves trying too many things at once, leading to becoming overwhelmed. Why? It is important to focus on finding simplicity and focus on one strategy. Strategies should be tailored to personal strengths, whether that’s day trading, swing trading, or position trading. The trader needs to focus on risk-reward ratios and refine their approach to fit the market conditions. 3️⃣Level 3: Strategy Development and Backtesting At this level, the trader now begins to build their strategy around clearly defined rules for entry, exit, and risk management. Backtesting comes into play, allowing the trader to see how the strategy would have performed in different market conditions. This stage marks the beginning of data-driven decisions rather than relying on guesswork. Important Aspects: The main focus here is to avoid over-optimization. There is the temptation to over-optimize the strategy based on historical data, which can lead to curve fitting. Strategies must be robust enough to perform in a variety of market environments, not just those found in past data. Why? Robust backtesting provides valuable insights, but should not be viewed as a guarantee of future performance. The focus should be on understanding the strategy’s performance across a range of scenarios and refining risk-reward parameters. 4️⃣ Level 4: Refining and Optimization With a tested strategy in place, traders now focus on refining their approach to adapt to real market conditions. This involves implementing risk management techniques such as position sizing, stop-losses or maximum drawdown limits. Here the focus is on refining the strategy, ensuring it is flexible and adaptable to various market environments. Important Aspects: During this phase is important to maintain a balanced risk-reward ratio. Overoptimizing for profitability can lead to excessive risk exposure, which undermines the strategy's long-term viability. Why? Because optimization is an ongoing process. Strategies should never be set in stone. The trader learns that fine-tuning a strategy based on live market conditions and feedback is a continuous process. Optimizing the risk-reward balance will determine the long-term success of the strategy. 5️⃣ Level 5: Live Trading with a Demo or Small Capital Finally! Trust me when I say this is the biggest turning point. After refining the strategy, traders move to live markets with real money, (if then haven't been tempted already and lost money). Often time they start small or using demo accounts to minimize risk. At this level, traders will encounter the psychological elements of trading—such as fear of loss, overconfidence after wins, or hesitation after losses. Important Aspects: The main trial at this level is that the emotional component of trading takes over. Traders may experience a shift in behavior when real money is at stake, even though they had success in demo accounts or small-size trades. Overtrading, revenge trading, and second-guessing the strategy are common pitfalls. Why? The trader must apply the same rules from backtesting to live trading, despite the emotions involved. At this stage, mental resilience and psychological control are just as important as the strategy itself. 6️⃣ Level 6: Full Strategy Deployment and Scaling By now, the trader has developed confidence in their strategy. They’ve mastered the mental discipline required to follow their trading plan, even when emotions are high. The trader begins scaling their strategy, increasing position sizes while maintaining the risk-reward ratio and capital allocation that suits their risk tolerance. Important Aspects: At this level, the trial is to maintain consistency while scaling. The trader may face issues related to emotional attachment to larger positions or feel the pressure to adjust the strategy for increased capital. Market volatility can also affect decision-making, leading to increased risk exposure. Why? As the trader increases their trading capital, they must remain mindful of market conditions and adjust position sizes accordingly. Portfolio diversification and ensuring that no single trade has too large an impact on overall capital are essential here. 7️⃣Level 7: The Master Strategist - The Final Boss 🏆 Congratulations! At this highest level, you must have developed a consistently profitable strategy that can be applied in different market behavior. The strategy has become highly effective in various conditions, and the trader can easily adapt to different setups without deviating from the core principles. Important Aspects: Now the focus is on fine-tuning their mindset for optimal performance. They anticipate emotional triggers before they happen and know exactly how to deal with them when they do come. The trader’s mental clarity allows them to stay composed during market volatility and follow their strategy with unmoved commitment. Why? The pinnacle of trading psychology is the ability to systematically execute trades with confidence, without being influenced by fear, greed, or euphoria. This confidence comes from knowing that their strategy is built on years of testing, adjustment, and improvement. This allows them to consistently make rational decisions that align with their long-term trading goals. They maintain discipline regardless of market volatility and use data-driven decisions to continue growing their capital. 📈 Developing a winning trading strategy is a dynamic process that requires continuous learning, adjustment, and discipline. Traders must be patient with themselves during each level, from the initial trial and error to the refined, proven strategy that supports consistent success. The levels involve mastering both the technical elements of strategy development and the psychological factors that affect trading performance. 🌟

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Trading strategy is determination and waiting Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- BW(100) indicator and HA-High indicator show the high point range. In other words, the fact that the BW(100) indicator and HA-High indicator were created means that it has fallen from the high point range. Therefore, the range made up of the BW(100) indicator and the HA-High indicator is called the high boundary zone. When it falls in this range, you can sell (SHORT), but it is not easy to enter the actual sell (SHORT) position. Therefore, in order to reduce this difficulty, the box range was set and displayed based on the HA-High indicator. Therefore, when it falls below the 2.9660 point and shows resistance, it is possible to enter a sell (SHORT) position for the last time. In that sense, it can be said that entry was possible today. - Currently, the StochRSI indicator is showing a pattern of rising in the oversold zone and then failing to continue the upward trend and falling again. This means that the decline is strong. However, when the StochRSI indicator falls again to the oversold zone and then rises, it is highly likely to show a large increase depending on where it is supported. In that sense, if it shows support in the second zone of 2.5127-2.6031, it is highly likely to show a large increase. If not, there is a possibility of meeting the M-Signal indicator on the 1W chart. - (30m chart) For a trend change, you can see where it is based on the MS-Signal indicator. However, you need to check whether the trend is sustainable at the support and resistance points. In other words, it is currently showing signs of rising above the MS-Signal indicator. If it continues to rise like this, in order to continue the upward trend, it must rise above the M-Signal indicator and 5EMA+StErr indicator on the 1D chart to maintain the price. If not, it will fall again. Therefore, you need to buy (LONG) when it is supported near the HA-Low indicator and BW(0) indicator, and liquidate when it is resisted near the MS-Signal indicator. If you continue trading like that, if the MS-Signal indicator rises higher and the price is maintained, you can check for support near the M-Signal indicator and 5EMA+StErr indicator on the 1D chart and respond. Therefore, when looking at the 30m chart, it may be advantageous to trade with a buy (LONG) position. Then, when you meet the HA-High indicator or BW (100) indicator, you trade with a sell (SHORT) position. If you had previously traded with a sell (SHORT) position on the HA-High indicator or BW (100) indicator on the 30m chart, it would have been the best choice. - Thank you for reading to the end. I hope you have a successful trade. -------------------------------------------------- - Big picture I used TradingView's INDEX chart to check the entire range of BTC. (BTCUSD 12M chart) Looking at the big picture, it seems to have been following a pattern since 2015. In other words, it is a pattern that maintains a 3-year bull market and faces a 1-year bear market. Accordingly, the bull market is expected to continue until 2025. - (LOG chart) Looking at the LOG chart, we can see that the increase is decreasing. Accordingly, the 46K-48K range is expected to be a very important support and resistance range from a long-term perspective. Therefore, we do not expect to see prices below 44K-48K in the future. - The Fibonacci ratio on the left is the Fibonacci ratio of the uptrend that started in 2015. That is, the Fibonacci ratio of the first wave of the uptrend. The Fibonacci ratio on the right is the Fibonacci ratio of the uptrend that started in 2019. Therefore, this Fibonacci ratio is expected to be used until 2026. - No matter what anyone says, the chart has already been created and is already moving. It is up to you how to view and respond to it. Since there is no support or resistance point when the ATH is updated, the Fibonacci ratio can be appropriately utilized. However, although the Fibonacci ratio is useful for chart analysis, it is ambiguous to use it as a support and resistance role. The reason is that the user must directly select the important selection points required to create the Fibonacci. Therefore, it can be useful for chart analysis because it is expressed differently depending on how the user specifies the selection point, but it can be seen as ambiguous for use in trading strategies. 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (when overshooting) 4th: 134018.28 151166.97-157451.83 (when overshooting) 5th: 178910.15 -----------------

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Trade high probabilities using game theory According to statistics, 95% of traders are losing longterm. Not because they lack skill, but because they involve in high variance (or poor probability) situations. What is game theory? we can define GT with three principles. *People dont want to lose. (hence.. predictable). *People buy good things at good price, or they are profit maximizing. *Everyone is strategic. ** we assume that "nobody can predict future". ** markets respond to feedbacks or signals. Practice: the higher something goes, potential narrows and risk increases. Deeper something falls, "potential" becomes attractive. Once market decides that it will fall -- people assume crash as possibility. People who can buy at a strong trend line - has benefit of having more information. (1) Downtrending VIX highs and accumulating lows. a strong signal about SPX peak, with everyone expecting a market correction before US election. ---> GT in practice. (2) pre-election. Markets be wobbly, pointing to 50-50 probability or risk. Maybe there was fear of NVDA/AAPL high valuations, or the fear due to Trump tariff policy (markets are 6m forward looking) as bond yields were rallying. If we assume statistically, markets boom after elections. We can predict GT in action (or call it market forces). imo that still is a profitable risk. People hate uncertainty and they love guarantees. So the "wobble" was reasonable. (3) VIX higher low.. predictably (GT) sell off follows. Almost as by the book. other way to put it? people maximize potential while minimize loses/risk. There are periods of volatile markets and periods for one directional rallies. P.S. Blue arrows are longterm macd turning points.

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Episode 29 <<National Budget>>"3-Minute Mini Class" Sharing basic financial knowledge every day, guiding you from beginner to expert. Follow me and improve a little bit every day! Financial freedom is getting closer to you!

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by Ronnie-Economy

Blueprint for Becoming a Successful Trader in 2025 Using AlgoBot **Blueprint for Becoming a Successful Trader in 2025 Using Algo Trading and Trading Bots** Algorithmic trading (algo trading) and trading bots are becoming increasingly dominant in financial markets, including stocks, crypto, and forex. To succeed as an algo trader in 2025, you need a well-structured plan covering **strategy development, risk management, automation, backtesting, and market adaptation**. Here’s a step-by-step blueprint: ## **1. Understand the Basics of Algo Trading** Before diving into automated trading, ensure you understand key concepts: ✅ **Market Microstructure** – Learn how markets function, order types, liquidity, slippage, and execution speeds. ✅ **Trading Strategies** – Get familiar with high-frequency trading (HFT), mean reversion, momentum, arbitrage, and market-making. ✅ **Programming & APIs** – Master Python, JavaScript, or C++ for coding bots and integrating them with exchanges. ✅ **Backtesting & Optimization** – Learn how to test and refine strategies using historical data. ### **Key Tools & Resources:** - **Languages:** Python (Pandas, NumPy, Scikit-learn), C++, JavaScript - **Libraries:** Backtrader, Zipline, QuantConnect, TensorFlow (for AI-based models) - **Market APIs:** Binance API (crypto), Alpaca API (stocks), MetaTrader (forex) ## **2. Choose a Trading Market & Strategy** Your strategy will depend on the asset class and market structure. ### **Popular Markets for Algo Trading in 2025:** 📈 **Cryptocurrency (Solana, Ethereum, Bitcoin, meme coins)** – High volatility, DeFi opportunities, 24/7 trading. 📊 **Stocks (Nasdaq, NYSE, Penny Stocks)** – Institutional competition, algo arbitrage, trend following. 💱 **Forex (EUR/USD, GBP/JPY, AUD/CAD)** – Global liquidity, macroeconomic-driven trends, HFT-friendly. ### **Types of Algo Trading Strategies:** 1. **Market Making** – Providing liquidity by placing buy/sell orders. 2. **Trend Following** – Using moving averages, RSI, and MACD to follow price momentum. 3. **Mean Reversion** – Buying oversold assets and selling overbought assets. 4. **Statistical Arbitrage** – Exploiting price inefficiencies using mathematical models. 5. **AI-Driven Bots** – Machine learning models predicting price action based on data patterns. 6. **High-Frequency Trading (HFT)** – Ultra-fast trading strategies requiring low-latency execution. ### **Key Trading Platforms & Tools:** 🔹 **Crypto:** 3Commas, Pionex, HaasOnline, KuCoin bots 🔹 **Stocks & Forex:** MetaTrader, NinjaTrader, TradingView Pine Script 🔹 **AI & Data Analysis:** QuantConnect, Zipline, TensorFlow, GPT-based bots ## **3. Build & Automate Your Trading Bot** ### **Steps to Create an Algorithmic Trading Bot:** 1. **Define the Strategy** – Choose a trading approach (trend following, arbitrage, etc.). 2. **Code the Bot** – Write scripts in Python, JavaScript, or C++ to execute trades via exchange APIs. 3. **Backtest on Historical Data** – Use past market data to see if your bot would have been profitable. 4. **Simulate in a Paper Trading Environment** – Run the bot in a risk-free simulated market. 5. **Deploy on Live Market** – Use a small amount of capital to test real-world performance. ### **Key Factors for a Good Algo Trading Bot:** ✅ **Latency Optimization** – Reduce execution delays for better entry/exit timing. ✅ **Error Handling** – Implement stop-loss, failsafe mechanisms to prevent large losses. ✅ **AI & Machine Learning** – Use AI to analyze market sentiment, detect patterns, and adapt to new conditions. ✅ **Auto-Tuning Parameters** – Use reinforcement learning or Bayesian optimization for continuous improvement. ## **4. Risk Management & Capital Preservation** Even the best trading bot can fail if risk management isn’t in place. ### **Risk Control Techniques:** 🚨 **Position Sizing** – Never risk more than 1-2% of your capital per trade. 🔻 **Stop-Loss & Take-Profit** – Set predefined exit points to limit losses and lock in profits. 📊 **Diversification** – Run multiple bots with different strategies across various markets. ⚖️ **Leverage Management** – Avoid excessive leverage that can wipe out your account in high volatility. ## **5. Optimize, Scale & Stay Ahead of the Market** The best algo traders **adapt** to market conditions and continuously improve their strategies. ### **Scaling Your Trading Operations:** ✅ **Optimize Execution** – Use low-latency execution via co-location services. ✅ **AI-Enhanced Strategies** – Incorporate machine learning for adaptive decision-making. ✅ **Multi-Bot Portfolio** – Run multiple bots across different strategies & timeframes. ✅ **Real-Time Monitoring** – Use dashboards for tracking performance and debugging. ### **Emerging Trends for 2025:** 🚀 **AI-Powered Trading** – GPT-based trading models analyzing market sentiment. 📡 **Decentralized Trading Bots** – Running bots on blockchain-based smart contracts. 🌍 **Multi-Asset Trading** – Crypto, stocks, forex, and commodities in one unified algo framework. 🔗 **DeFi Trading & Arbitrage** – Bots leveraging DEX liquidity pools & yield farming. ## **Final Blueprint for Success in 2025** 📌 **Master Algo Trading Basics** – Learn coding, market mechanics, and execution methods. 📌 **Choose a Profitable Market & Strategy** – Focus on AI-driven bots, arbitrage, or market making. 📌 **Develop & Automate Bots** – Use Python, API integrations, and machine learning models. 📌 **Implement Risk Management** – Use stop-loss, proper position sizing, and capital allocation. 📌 **Optimize & Adapt** – Constantly improve execution speed, data analysis, and bot strategies. 📌 **Stay Ahead with AI & DeFi** – Leverage blockchain innovations and AI-powered trade predictions. By following this blueprint and continuously refining your strategies, you can **maximize profits, reduce risks, and stay competitive in 2025’s algo trading landscape**. 🚀📈

Education

by ProjectSyndicate

Understanding Pitchfork The Pitchfork indicator, also known as Andrews' Pitchfork, is a popular technical analysis tool used by traders to identify potential support and resistance levels, as well as to gauge the direction of a trend. Developed by Dr. Alan Andrews, this indicator is based on the concept of median lines and is particularly useful in trending markets. How the Pitchfork Indicator Works The Pitchfork indicator consists of three parallel trendlines that are drawn using three key points on a price chart: Pivot Points: The first point (P0) is a significant high or low in the price action. The second (P1) and third (P2) points are subsequent highs or lows that form the basis of the trend. Drawing the Pitchfork: The middle line (median line) is drawn from P0 to the midpoint between P1 and P2. The upper and lower lines are drawn parallel to the median line, starting from P1 and P2, respectively. These three lines create a "pitchfork" shape, which helps traders visualize potential areas of support and resistance. Key Features of the Pitchfork Indicator Trend Identification: The Pitchfork is most effective in trending markets. The median line acts as a dynamic support or resistance level, depending on the direction of the trend. In an uptrend, prices tend to gravitate toward the median line and often find support there. In a downtrend, the median line acts as resistance. Support and Resistance Levels: The upper and lower lines of the Pitchfork serve as potential resistance and support levels, respectively. Traders often look for price reactions (bounces or breaks) at these levels to make trading decisions. Price Targets: The Pitchfork can help identify potential price targets. For example, if the price breaks above the upper line in an uptrend, it may continue to move higher, with the next target being the extension of the median line. Divergence and Convergence: The Pitchfork can also highlight divergences or convergences between price action and the indicator, which may signal potential reversals or continuations. How Traders Use the Pitchfork Indicator Trend Confirmation: Traders use the Pitchfork to confirm the strength and direction of a trend. If prices consistently respect the median line and the parallel lines, the trend is considered strong. Entry and Exit Points: Traders often enter trades when prices bounce off the median line or one of the parallel lines. Exits are typically planned near the opposite parallel line or when the price shows signs of reversal. Stop-Loss Placement: Stop-loss orders are often placed just outside the Pitchfork lines to minimize risk in case the price breaks through the expected support or resistance levels. Combining with Other Indicators: The Pitchfork is often used in conjunction with other technical indicators, such as moving averages, RSI, or MACD, to increase the probability of successful trades. Limitations of the Pitchfork Indicator While the Pitchfork is a powerful tool, it has some limitations: It works best in trending markets and may produce false signals in sideways or choppy markets. The accuracy of the Pitchfork depends on the correct selection of pivot points, which can be subjective. It requires practice and experience to use effectively. Conclusion The Pitchfork indicator is a versatile and insightful tool for traders seeking to analyze trends and identify key levels of support and resistance. By understanding how to draw and interpret the Pitchfork, traders can enhance their technical analysis and make more informed trading decisions. However, like all technical tools, it should be used in conjunction with other analysis methods and risk management strategies to maximize its effectiveness.

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by CRYPTONIC_trend

Strongest Reversal Candlestick Patterns For Gold & Forex In this educational article, we will discuss powerful reversal candlestick patterns that every trader must know. Bullish Engulfing Candle Bullish engulfing candle is one of my favourite ones. It usually indicates the initiation of a bullish movement after a strong bearish wave. The main element of this pattern is a relatively big body. Being bigger than the entire range of the previous (bearish) candle, it should completely "engulf" that. Such a formation indicates the strength of the buyers and their willingness to push the price higher. Bullish engulfing candle that I spotted on Gold chart gave a perfect bullish trend-following signal. Bearish Engulfing Candle The main element of this pattern is a relatively big body that is bigger than the entire range of the previous (bullish) candle. Such a formation indicates the strength of the sellers and their willingness to push the price lower. ________________________ Bullish Inside Bar Inside bar formation is a classic indecision pattern. It usually forms after a strong bullish/bearish impulse and signifies a consolidation . The pattern consists of 2 main elements: mother's bar - a relatively strong bullish or bearish candle, inside bars - the following candles that a trading within the range of the mother's bar. The breakout of the range of the mother's bar may quite accurately confirm the reversal. A bullish breakout of its range and a candle close above that usually initiates a strong bullish movement. Bearish Inside Bar A bearish breakout of the range of the mother's bar and a candle close below that usually initiates a strong bearish movement. Bearish breakout of the range of the mother's bar candlestick provided a strong bearish signal on EURUSD. ________________________ Doji Candle (Morning Star) By a Doji we mean a candle that has the same opening and closing price. Being formed after a strong bearish move, such a Doji will be called a Morning Star. It signifies the oversold condition of the market and the local weakness of sellers. Such a formation may quite accurately indicate a coming bullish movement. Doji Candle (Evening Star) Being formed after a strong bullish move, such a Doji will be called an Evening Star. It signifies the overbought condition of the market and the local weakness of buyers. Such a formation may quite accurately indicate a coming bearish movement. Above is a perfect example of a doji candle and a consequent bearish movement on Silver. I apply these formations for making predictions on financial markets every day. They perfectly work on Forex, Futures, Crypto markets and show their efficiency on various time frames. ❤️Please, support my work with like, thank you!❤️

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by VasilyTrader

Trendline Liquidity Grabbing – Smart Money Tactics!🚀 What Just Happened? A trendline was respected multiple times, creating a strong support level. However, instead of bouncing immediately, price broke below the trendline, grabbing liquidity before reversing with strong momentum! 🔍 Why Does This Happen? 📌 Retail Trap: Many traders place buy orders at the trendline and stop losses just below. Smart money hunts these stops to accumulate liquidity. 📌 Fake Breakout: The price temporarily dips below to trigger stop losses & weak hands before the real move begins. 📌 Confirmation Reversal: After liquidity is taken, strong buying pressure pushes the price back up! 📊 Lesson for Traders: ✅ Don't panic when a trendline breaks—watch for liquidity grabs! ✅ Wait for confirmation before entering trades. ✅ Use this as a sniper entry strategy for high RR trades. 🔥 Master this, and you'll stop falling for fake breakouts! 💰

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Understanding RSI In Trading This article takes a deep dive into the Relative Strength Index (RSI), a powerful tool for traders at any level. We’ll break down how RSI works, how to interpret it, and how to use it effectively in your trading strategies. Plus, we’ll touch on the math behind it. Whether you’re a seasoned pro or just getting started, this guide will give you the insights you need to make RSI a valuable part of your trading toolkit. Understanding Oscillators in Trading An oscillator is a technical indicator that moves between two extremes, usually ranging from 0 to 100. Traders use oscillators to spot overbought and oversold conditions in the market. An overbought signal suggests that excessive buying has driven prices too high and may not be sustainable, while an oversold signal indicates the opposite—excessive selling that could lead to a potential rebound. By tracking these price oscillations, traders can anticipate trend reversals and make more informed decisions. Key Functions of Oscillators: Momentum Analysis: Oscillators gauge the speed and strength of price movements, offering insights into an asset’s momentum. Volatility Detection: They help identify periods of high or low volatility, enabling traders to adjust their strategies accordingly. Trend Confirmation: When combined with other technical indicators, oscillators can validate or reveal emerging trends in the market. Introduction to the RSI Indicator The Relative Strength Index (RSI) is a momentum-based technical indicator used to assess the strength of recent price movements and identify overbought or oversold conditions in an asset. It helps traders spot potential trend reversals by oscillating between 0 and 100. An RSI above 70 suggests the asset may be overbought, while a reading below 30 indicates it may be oversold. By the end of this, you'll be an RSI expert! Interpreting RSI Readings RSI values above 70 suggest that an asset is overbought, meaning it has likely experienced a sharp price increase and may be due for a correction. On the other hand, RSI values below 30 indicate that the asset is oversold, implying a steep price drop and the possibility of a rebound. However, it's important to remember that RSI isn't foolproof and can occasionally give false signals. To increase accuracy, it's best to use RSI in combination with other technical indicators and fundamental analysis. Overbought: An RSI reading above 70 signals that the asset may be overbought and due for a correction. This could present a potential selling opportunity, but traders should be cautious, as false signals can occur. Oversold: An RSI reading below 30 indicates that the asset may be oversold and due for a rebound. This can signal a potential buying opportunity, but again, traders should be cautious of possible false signals. Divergence: Divergence happens when the RSI moves in the opposite direction of the price. For instance, if the price makes new highs while the RSI forms lower highs, this could point to a potential trend reversal. Support and Resistance: The RSI can also help identify support and resistance levels. If the RSI consistently bounces off the 30 level, it may indicate a support level. Conversely, if the RSI repeatedly fails to break through the 70 level, this could signal a resistance level. RSI and Divergence Divergence happens when the RSI moves in the opposite direction of the asset's price, often signaling a potential trend reversal. For example, if the price is hitting new highs but the RSI forms lower highs, it could indicate a bearish divergence, suggesting a possible sell signal. A common example of bearish divergence is when the price of an asset makes higher highs, but the RSI forms lower highs. This suggests weakening buying momentum, even as the price continues to rise. It can be a sign that the uptrend may be losing steam, with a reversal to the downside potentially on the horizon. On the other hand, bullish divergence occurs when the price is making lower lows, but the RSI is making higher lows. This indicates that selling pressure is subsiding, and the asset may be primed for a rebound to the upside. Traders can use this pattern to time their entries for long positions. RSI divergence can help traders identify overbought or oversold conditions, enabling them to make more effective decisions about entry and exit points. However, divergence should always be used alongside other technical and fundamental analysis for confirmation before acting on the signal. Calculating the RSI Indicator Calculating the RSI is straightforward once you break it down. The goal is to determine the average gains and losses over a set period, typically 14 days. This helps assess the strength of price movements and identify overbought or oversold conditions. While the math may sound complex, understanding the formula is key to using the tool effectively. The RSI formula is: RSI = 100 - (100 / (1 + (Average Gains / Average Losses))) This calculation provides valuable insights into the relative strength of an asset’s price movements. Factors Affecting the RSI Calculation The RSI calculation can be influenced by several factors, with the length of the time period being the most significant. A shorter period (e.g., 5 days) results in a more volatile RSI that responds quickly to price changes, while a longer period (e.g., 20 days) creates a smoother RSI, filtering out short-term fluctuations. The ideal time period depends on your trading style and the volatility of the market you're analyzing. Why the RSI Indicator is Powerful Identifies Overbought and Oversold Conditions: The RSI helps traders recognize when an asset is overbought or oversold, allowing them to time their entries and exits more effectively. Detects Divergences: Divergences between the RSI and price can signal potential trend reversals, giving traders an early warning to adjust their positions accordingly. Flexible and Customizable: Traders can adjust the RSI’s period to match their trading style and the specific market conditions, making it a highly versatile tool for technical analysis. Widely Adopted and Well-Understood: The RSI is one of the most popular technical indicators, with a wealth of resources and analysis available to assist traders in interpreting its signals. Practical Application in Real Life Here are a few effective strategies where RSI can be combined with other technical indicators for a more comprehensive analysis: Example 1: RSI + Support/Resistance + Moving Averages Scenario: You are analyzing a stock that has been in an uptrend, with the price currently approaching a key resistance level at $100. The 50-period moving average is also trending upwards, confirming the bullish trend. The RSI is at 75, indicating an overbought condition. As the price nears the resistance level, the RSI starts to flatten, suggesting the upward momentum might be weakening. You wait for the price to fail to break above the $100 resistance level and the RSI to drop below 70, signaling a potential reversal. This provides a clearer sell signal, as both the price and RSI align with the idea that a correction could be coming. Why this works: By using both RSI and moving averages with support and resistance, you have a solid confirmation of the potential reversal, as it combines trend analysis with overbought conditions. Example 2: RSI + SFP (Swing Failure Pattern) + Price Action Scenario: You’re monitoring a currency pair that recently made a new low, breaking through a previous swing low at 1.1500. However, the price quickly reverses and fails to sustain the breakdown, bouncing back above the previous low, forming an SFP. At the same time, the RSI is below 30, but it starts to turn upward, forming a bullish divergence (higher lows on the RSI while the price makes lower lows). This divergence and the SFP setup suggest that the selling pressure is decreasing, and a potential reversal to the upside could be imminent. Why this works: The Swing Failure Pattern highlights the false breakdown, and the RSI divergence confirms that momentum is shifting. This combination increases the likelihood of a successful trade when entering on the potential reversal. Key Takeways The RSI is an essential tool for traders looking to spot overbought or oversold conditions and potential trend reversals. By mastering how to interpret RSI readings and incorporating them into your strategies, you can improve your decision-making and potentially boost your trading results. For a more balanced approach, always use RSI alongside other technical indicators and fundamental analysis.

Education

by CandelaCharts

10 Technical Indicators Every Trader Uses for Trading 10 Technical Indicators Every Trader Uses for Trading Technical analysis indicators are essential tools for traders to analyse every aspect of market movements, including market trends, momentum, volume, and volatility. This article explores ten key technical indicators you could add to your toolkit. Read detailing definitions, uses, and the signals they provide to potentially enhance trading strategies. To get started with these indicators, head over to FXOpen. Ichimoku Cloud The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a comprehensive technical analysis tool designed to provide a clear picture of market trends, momentum, and support and resistance levels. Considered one of the best stock market indicators, this Japanese tool is widely used for its ability to offer a panoramic view of the market. Definition The Ichimoku Cloud comprises five main components: - Tenkan-sen (Conversion Line): The average of the highest high and the lowest low over the past 9 periods. - Kijun-sen (Base Line): The average of the highest high and the lowest low over the past 26 periods. - Senkou Span A (Leading Span A): The average of the Tenkan-sen/Conversion Line and Kijun-sen/Base Line, offset by 26 periods ahead. - Senkou Span B (Leading Span B): The average of the highest high and lowest low over the past 52 periods, plotted 26 periods ahead. - Chikou Span (Lagging Span): The most recent closing price positioned 26 periods behind. These components create the "Kumo" or cloud, which projects future support and resistance levels. Signals 1. TK Cross: - Bullish Signal: Tenkan-sen crosses above Kijun-sen above the Kumo. - Bearish Signal: Tenkan-sen crosses below Kijun-sen below the Kumo. 2. Kumo Breakout: - Bullish Signal: Price breaks above the Kumo. - Bearish Signal: Price breaks below the Kumo. 3. Chikou Span Confirmation: - Bullish Signal: Chikou Span is above the price and Kumo. - Bearish Signal: Chikou Span is below the price and Kumo. 4. Kumo Twist: - Indicates a potential trend reversal when the cloud changes colour (from red to green for bullish, green to red for bearish). For cryptocurrency* trading, the standard settings (9, 26, 52) are often adjusted to 20, 60, 120 to accommodate the 24/7 trading cycle. More details on using Ichimoku in crypto* markets can be found on the FXOpen dedicated page. Fibonacci Retracements Fibonacci retracements are a technical tool that helps traders identify potential areas of support and resistance in a given market. This method is based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones. In trading, key Fibonacci levels are 38.2%, 50%, and 61.8%, which are used to analyse potential reversal points. Definition Fibonacci retracements are widely used stock chart indicators that help traders determine where the price might reverse during a correction in a prevailing trend. The tool involves plotting horizontal lines at these key levels, calculated from a significant high to a significant low when the price corrects after a strong downward movement or from a significant low to a significant high when the price corrects after a strong upward movement. Signals 1. Support and Resistance Levels: - 38.2%, 50%, and 61.8% Levels: These are the primary retracement levels where the price is likely to reverse. 2. Trend Identification: - Uptrend: Place the tool from a swing low to a swing high. - Downtrend: Place the tool from a swing high to a swing low. 3. Trade Setup: - Entry Points: Traders often look for the price to reach and react at these levels before entering a trade. - Stop Loss: Typically set just beyond the nearest Fibonacci level the price targets. - Take Profit: Targets are often placed at the next Fibonacci level. For cryptocurrency* trading, settings may vary. We provide a detailed explanation on using Fibonacci retracements in crypto markets with adjustments to fit this unique trading environment. Volume Weighted Average Price (VWAP) The Volume Weighted Average Price (VWAP) is a technical indicator that provides the average price an asset has traded at throughout a particular period (usually one day), weighted by volume. It offers a more comprehensive view than simple moving averages by incorporating both price and volume data and is considered one of the best intraday trading indicators. Calculation VWAP is calculated using the formula: - VWAP = Sum(Typical Price * Volume) / SumVolume, where Typical Price is the average of the high, low, and close prices for each period. Signals 1. Assessing Fair Value: A price above VWAP indicates overvaluation, while a price below suggests undervaluation. 2. Market Sentiment and Trends: - Bullish Trend: Price above VWAP. - Bearish Trend: Price below VWAP. 3. Support and Resistance Levels: - Support: VWAP acts as support in a bullish market. - Resistance: VWAP acts as resistance in a bearish market. 4. Entry Quality: - Entry near VWAP suggests buying or selling at a reasonable market value. For cryptocurrency* trading, the VWAP settings remain similar to traditional markets, but the tool's application may vary due to the 24/7 nature of crypto* trading. Check out FXOpen’s page on how to use VWAP in crypto markets for more information. Accumulation/Distribution Indicator (A/D) The Accumulation/Distribution (A/D) indicator is a volume-based tool that assesses the cumulative flow of money into and out of an asset. It’s widely used as an indicator for day trading. It helps traders determine the underlying buying and selling pressure, making it one of the valuable forex and stock indicators for analysing potential price trends and reversals. Calculation The A/D indicator calculates the Money Flow Multiplier (MFM), which ranges from -1 to 1 based on the closing price's position within the period’s high-low range. If the closing price is in the upper half, the MFM is positive; if in the lower half, it is negative. This multiplier is then multiplied by the period’s volume to get the Money Flow Volume (MFV). The A/D line represents the cumulative sum of these MFVs over time, reflecting net volume flow. Signals Identifying Reversals: - Bullish Divergence: Price makes lower lows while the A/D line makes higher lows, indicating waning selling pressure and a potential price increase. - Bearish Divergence: Price makes higher highs while the A/D line makes lower highs, suggesting decreasing buying pressure and a possible price decline. Trend Confirmation: - Uptrend: Both price and A/D line rise, indicating sustained buying pressure. - Downtrend: Both price and A/D line fall, showing continuous selling pressure. Trading Breakouts: - The A/D indicator can confirm breakouts beyond support or resistance levels. A breakout in price aligned with a similar movement in the A/D line signals the start of a new trend. Average True Range (ATR) The Average True Range (ATR) is a technical tool used to measure market volatility. It reflects the degree of price movement over a specified period, helping traders understand the level of volatility in an asset. Calculation ATR calculation includes several steps. Find more details in our article. Signals ATR does not indicate the price direction but rather the degree of price movement. Traders use ATR to make informed decisions about stop-loss levels and to gauge the potential for market moves. It’s one of the popular day trading indicators. 1. Volatility Measurement: - A high ATR value indicates high volatility, while a low ATR suggests low volatility. This helps traders adjust their strategies based on market conditions. 2. Setting Stop-Loss Levels: - Traders often set stop-loss orders at a multiple of the ATR value. For instance, a stop loss might be placed at twice the ATR below the entry price in a long position to account for volatility and reduce the risk of being stopped out prematurely. 3. Identifying Potential Breakouts: - Sudden increases in ATR values can indicate the start of a new trend or a significant price move, alerting traders to potential trading opportunities. Donchian Channel Indicator The Donchian Channel is a technical analysis tool designed to identify volatility, market trends, price reversals, and potential breakout points. It consists of three lines based on the highest high and lowest low over a specified period, typically 20 periods. Definition - Upper Boundary: The highest high over N periods. - Lower Boundary: The lowest low over N periods. - Middle Line: The average of the upper and lower boundaries. These lines help traders determine market volatility and identify potential buy and sell signals based on price movements. Signals 1. Tracking Volatility: - Widening Channel: Indicates high volatility. - Narrowing Channel: Indicates low volatility. 2. Identifying Trends: - Bullish Trend: The upper boundary rises while the lower boundary stays flat. - Bearish Trend: The lower boundary falls while the upper boundary stays flat. 3. Trading Breakouts: - Above Middle Line: Potential bullish signal. - Below Middle Line: Potential bearish signal. 4. Trading Reversals: - In range-bound markets, the upper boundary acts as resistance and the lower boundary as support, guiding traders to close or open positions accordingly. Chaikin Money Flow (CMF) The Chaikin Money Flow (CMF) is a volume-weighted average indicator measuring the buying and selling pressure on an asset over a specific period, typically 20 or 21 periods. It combines price and volume data to provide insights into market sentiment and potential price movements, making it one of the key forex and stock market technical indicators. Calculation The CMF calculation involves three main steps: - Money Flow Multiplier (MFM): (Close - Low) - (High - Close) / High - Low. This value ranges from -1 to 1 and is positive when the closing price is in the upper half of the period's range and negative when in the lower half. - Money Flow Volume (MFV): Calculated by multiplying the MFM by the period's volume. - CMF Value: The sum of MFVs over the period divided by the sum of volumes over the same period. The resulting CMF values fluctuate between -1 and +1, providing a visual representation of money flow into and out of the asset. Signals 1. Trend Strength: - Positive CMF: Indicates buying pressure, suggesting a bullish trend. - Negative CMF: Indicates selling pressure, suggesting a bearish trend. 2. Trend Reversal: - Bullish Divergence: Occurs when the price makes lower lows, but the CMF makes higher lows, indicating a potential reversal to the upside. - Bearish Divergence: Occurs when the price makes higher highs, but the CMF makes lower highs, indicating a potential reversal to the downside. 3. Breakout Confirmation: - A breakout in price above/below a key level accompanied by a breakout in the CMF value above/below previous highs/lows can confirm the strength of the move. Average Directional Movement Index (ADX) The Average Directional Movement Index (ADX) is an indicator traders apply on a chart to measure the strength of a trend. It is particularly useful for traders who want to determine whether a market is trending or ranging. Definition The ADX consists of a single line that fluctuates between 0 and 100. It does not indicate the direction of the trend but rather its strength. The standard ADX setting is a 14-period, but this can be adjusted to suit different trading styles. - 0-25: Indicates a weak or non-existent trend. - 25-50: Signals a strong trend. - 50-75: Suggests a very strong trend. - 75-100: Reflects an extremely strong trend. Signals 1. Trend Strength: - A rising ADX value above 25 indicates a strengthening trend, regardless of whether it is bullish or bearish. - A falling ADX below 25 suggests a weakening trend or a ranging market. 2. Trend Momentum: - When ADX peaks and starts to decline, it can signal a potential weakening of the current trend, indicating that traders might consider closing or reducing positions. Combining ADX with DI Lines The ADX is often used in conjunction with the Positive Directional Indicator (+DI) and Negative Directional Indicator (-DI) lines: - +DI > -DI: Suggests a bullish trend. - -DI > +DI: Indicates a bearish trend. A rising ADX alongside these signals confirms the strength of the current trend. Traders use this indicator to enter trades. For this, they look for ADX to rise above 25 to confirm the beginning of a strong trend before entering trades in the direction of the trend indicated by the +DI and -DI lines. Commodity Channel Index (CCI) The Commodity Channel Index (CCI) is a momentum-based indicator that measures the deviation of an asset's price from its historical average. It helps traders identify potential overbought or oversold conditions, trend reversals, and divergence signals. Calculation - CCI is calculated using the formula: CCI = (Typical Price − SMA) / 0.015 * Mean Deviation, where: - Typical Price = (High + Low + Close) / 3 - SMA = Simple Moving Average of the Typical Price - Mean Deviation = Average of the absolute differences between the Typical Price and its SMA The constant 0.015 normalises the CCI values, ensuring that approximately 70-80% of the values fall between -100 and +100. Signals 1. Overbought and Oversold Conditions: - Above +100: Indicates the asset is overbought, suggesting a potential price pullback or a downward reversal. - Below -100: Indicates the asset is oversold, suggesting a potential pullback or an upward reversal. 2. Trend Reversals: - Bullish Divergence: When the market is making lower lows while the CCI makes higher lows, potentially preceding a bullish reversal. - Bearish Divergence: When the market is making higher highs while the CCI makes lower highs, potentially preceding a bullish reversal. 3. Trade Entries: - Traders consider entering long positions when CCI breaks above -100 from below. - Conversely, traders might enter short positions when CCI moves below +100 from above. Keltner Channel The Keltner Channel is a popular technical analysis tool used to determine market trends, price volatility, and potential reversal points. It consists of three lines: an exponential moving average (EMA) in the middle, and upper and lower bands calculated by adding and subtracting a multiple of the Average True Range (ATR) to the EMA. Definition The standard settings for Keltner Channels typically use a 20-period EMA and an ATR multiplier of 2. These settings can be adjusted to suit different trading styles and timeframes, making Keltner Channels effective technical indicators for day trading. The EMA provides a smoothed average price, while the ATR measures volatility. The bands expand and contract based on market volatility, creating a channel around the price. Signals 1. Trend Identification: - Upward-Sloping Channel: Indicates a bullish trend. - Downward-Sloping Channel: Indicates a bearish trend. - Flat Channel: Suggests a ranging market. 2. Dynamic Support and Resistance: - The upper and lower bands of the Channels serve as dynamic levels of support and resistance. Price action within these bands can help traders identify potential entry and exit points. 3. Breakout Signals: - Bullish Breakout: Price closing above the upper band. - Bearish Breakout: Price closing below the lower band. The Bottom Line These ten technical indicators could be added to your toolkit to potentially enhance your trading strategies. By understanding their signals and applications, traders can better navigate the worlds of forex, stocks, commodities, and cryptocurrencies*. Open an FXOpen account today to access advanced trading tools and start implementing these indicators in live markets. FAQs Which Types of Trading Indicators Are Common to Use? 4 common types of technical indicators include trend (Moving Averages, ADX), momentum (RSI, Stochastic Oscillator), volume (On-Balance Volume, VWAP), and volatility (Bollinger Bands, ATR) indicators. These help traders analyse trends, momentum, volume, and volatility. How Many Indicators Should a Trader Use? Traders often use 2-3 indicators to avoid overcomplication and conflicting signals. Combining different types of indicators can provide a more comprehensive analysis. Why Do Indicators Fail? Indicators can fail due to market volatility, news events, and their inherent lag. They may also produce false signals in choppy markets. Combining indicators with risk management can potentially improve reliability. Is It Better to Trade Without Indicators? Trading without indicators, known as price action trading, can be effective for experienced traders. However, using a few indicators can provide valuable insights and confirm price movements for most traders. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. *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. 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.

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VARAUSD - How to Find Accurate Pivot Levels For Swing Trades I'm using VARAUSD for this tutorial presentation because that is the coin I am currently trading. In this tutorial I demonstrate how to locate nearly exact pivot points for great entry and exit opportunities to swing trade like a professional. Just remember, the levels need to be updated often. You cannot set them and forget them. Something I did not mention is that order walls MOVE and they move ALOT especially during an active pump or dump. Investors choose to pull order walls deciding not to sell in which case the price will continue up beyond that resistance area. In this regard, update your levels OFTEN. VARA is in a massive squeeze / range bound trading with accurate pivot points can lead to easy wins however, neglect your levels and get left behind!

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Select market data provided by ICE Data services. Select reference data provided by FactSet. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc.

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