Divergence: RSI vs. PriceHey everyone!
In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE!
Today, I took some time to put together an Educational Video on:
1) What a Divergence Is?
2) How to Spot them!
&
3) How to Trade them!
I hope you find this helpful!
**Tips
- Divergence is never good enough to trade alone, YOU NEED CONFIRMATION!
- The longer the Divergence takes, the more reliable it is
- Change in Momentum is KEY!
Community ideas
VOLATILITY DRAG - The Hidden ThiefThis is a super important subjective to touch on.. And that topic is Volatility Drag, also known as Percentage Loss Trap.
I believe that most traders do not consider this in their trading. They know about win-rate, risk/reward ratios, compounding, and perhaps even the fact that losing 50% of your account will require you to make 100% just to get back to break even. But few take into acccount Volatility Drag. It can be a sneaky thief, eating away at your PnL, causing you to lose money even though it seems that you are profitable.
Volatility Drag is basically the percentage loss of your account that occurs from the volatility in your wins and losses. In this video I illustrate it on a spreadsheet and graph for your understanding.
This is why slow and steady wins the race in trading. Anyone that presents you otherwise is a fool and you should absolutely stay clear of such people. One cannot have a volatile equity yet not have volatile emotions. Either that, or they have not considered the math.
Safe trading!
- R2F
Option Buying Learning Ideas!Hello, a simple trick to be successful when buying options is to wait for the candle to close. You have heard this rule many times before. In my experience, it takes time to learn it, and it takes time to implement what you have learned on the chart. But all your waiting will pay off for you.
Thanks for Reading.
Why Using Charts Can Help You with Your TradingImagine you've decided to buy a particular stock. Your position starts to make money, and you're thrilled. But what do you do now? Should you hold onto your position or cash it in? Has it made enough profit, or will it go further? It's painful to lose money, but it's also frustrating to take profits only to see your original investment quadruple in price after you've cashed out too early.
Is there something that can help you make these decisions? Yes, there is! It's called technical analysis. But what if you're a complete novice to technical analysis? It may look complicated and difficult, but don't worry.
The beauty of technical analysis is that it can help with your decision-making, and once you learn the rules, it's easy to apply.
I have attached a short video explaining the steps I go through when I first look at a chart. Do you know how to determine a trend? Do you know how to apply trend lines? Do you know what a momentum indicator is? Do you know why and how to use moving averages? Do you understand continuation and reversal signals?
Power of 3 - ICT Concept ExplainedIn this video I cover the topic of Power of 3 or otherwise known was PO3. This concept is also the same as AMD, which is Accumulation, Manipulation, Distribution.
PO3 is the basis in which Smart Money approaches the market. As we have covered before, liquidity is the lifeblood of the market. To maximize efficiency for Smart Money, liquidity is engineered for the purpose of trapping uninformed money on the wrong side of the market and assuming the counter-party to their trades.
At the open of a candle, Smart Money is accumulating positions, usually in some sort of range. The next stage is the manipulation, where price makes a fast run towards liquidity, usually in the opposite direction of where price is intended to go, and then reversing rapidly.
The final stage is distribution, where Smart Money is offloading their positions above or below the marketplace depending on whether it is a buy or sell program.
The whole purpose of understanding this concept is to be able to anticipate the future direction of price, and to ideally buy below or above the open of a candle, again depending on what type of candle it is. I show how I anticipate the PO3 in this video.
- R2F
PART 4 67years back in timeWe have previously established the close relationship between the 1899-1929 period and the 1997-2028 market cycle. Various arithmetic sequences and planetary cycles that influenced the price movement during the 1899-1929 cycle are true to happen in the current cycle. As we saw in this video, the price movements already recorded obeyed the same laws as of the 1899-1929 period and would continue to do same..
Check back for PART 5 as we look at the small timeframe and possible ways we can trade the market.
How to read the VIX properly
This video explains the VIX indicator, how I use it to guide my trading decisions, and my perspective on the market. You can download the TradingView indicator for free, as it is open-source. Additionally, I'll provide a link to my Thinkorswim version in the YouTube video description. The VIX is an excellent tool for market guidance, based on options trading activity 30 days out on the S&P 500. It indicates market fear when it rises due to increased options buying and selling. Thank you for watching! If you have any questions or comments, feel free to share them—I enjoy discussing these topics. No indicator is perfect, but I use this one daily to gauge the market.
4 Stages of Price Delivery (ICT Concepts)In this video I go through the 4 stages of price delivery as it pertains to ICT Concepts.
Generally, the market is going through either of the following:
Consolidation
Expansion
Retracement
Reversal
Price starts from a consolidation, where Smart Money accumulates their position, and then an expansion, where price is trending in a direction for the purpose of seeking liquidity and/or manipulating sentiment. From an expansionary phase, price will either retrace to re-accumulate orders and expand again, or have a complete reversal.
Now, it is important to note that price is fractal, meaning the signatures you see on a lower timeframe perspective could also be seen on a higher timeframe perspective. In a singular candlestick, there can be multiple phases of price delivery happening.
Once one can fit all these pieces together in regard to how market makers book price, one can have a clear insight into where price is likely going and where it likely won't go again, all with a high degree of accuracy.
Thanks for watching and reading!
- R2F
SPY/QQQ Plan Your Trade 7-20 - PineScript Project FeedbackI've been playing with this little project for about 7 hours now (off and on). Pinescript is fun once you get the hang of the syntax and how it expects objects/booleans for most of the conditionals.
Overall, I think this project is moving along nicely, but I wanted some feedback on the visuals.
I'm trying to create something that will help daytraders see and understand broad trends arising from shorter-term price swings.
I get a lot of questions related to how/when to identify key market price reversals - so I'm trying to develop a way to help traders understand and see where opportunities exist for better trades.
Watch this video and let me know if you see anything I can do to improve the visuals or color controls.
I want this to SHINE so people fall in love with it.
Thank you.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
PART 2: 67years back in timeContinuation of the cyclic Movement of the DJI market.
Make sure you watch the previous post and check back for PART 3
PART 1 67years back in Time.Here and elsewhere we may not get the best insight of things until we witness them grow from the beginning... Aristotle 322 AD
check back for part 2
Option Buying LearningHello, I'm sharing this video for educational purposes only. I am sharing my knowledge and ideas here . I feel that maybe it will be helpful for someone to learn and also give clarity to myself.
Thanks for Reading ...
TURN BY TURN (THAI STOCKS) w/SPECIAL GUEST SARA HOHLER Today's Show: Exploring Thai Stocks with Special Guests Moneymagnatesara & Moneymagnateaira
In today's episode, we dive into the world of Thai stocks, featuring insights from our special guests, Moneymagnatesara and Moneymagnateaira. Moneymagnatesara, a Thai/German native, shares her unique consumer perspective on various prominent companies, while Moneymagnateaira keeps us entertained with her singing and commentary. Join us as we discuss the following stocks and their market standings:
PTT Public Company Limited (PTT):
A leading energy and petrochemical company in Thailand, known for its significant role in the petroleum industry, including both upstream and downstream operations (Simply Wall St) (MarketScreener).
Airports of Thailand Public Company Limited (AOT):
The main operator of Thailand's airports, AOT is crucial in managing the country's aviation infrastructure and ensuring the efficiency and growth of its air travel industry.
Advanced Info Service Public Company Limited (ADVANC):
Thailand's largest mobile network operator, ADVANC provides a wide range of telecommunication services, including mobile, broadband, and digital services.
Bangkok Dusit Medical Services (BDMS):
One of the largest private hospital operators in Thailand, BDMS offers comprehensive medical services and is known for its extensive network of hospitals and healthcare facilities.
Siam Commercial Bank (SCB):
As one of Thailand's oldest and largest banks, SCB offers a wide array of financial services, including personal, business, and investment banking.
We agree to have a more in-depth episode with the grown-ups in the future, but for now, enjoy this unique perspective and feel free to ask questions about Thailand to gain an edge in emerging markets.
Tune in for an engaging conversation and insights that could benefit your investment strategies in the Thai market!
Demand Zone Bounce Lesson This is just going over a lesson I learned and seeing the price actually bounce off of my demand zone I thought it was cool.
EURUSD - Another Trade Analysis Using ICT ConceptsVery beautiful again today.
With the expectation of higher prices, I took a long on EURUSD. As I illustrate in the video, there were very nice algorithmic price action and sentiment manipulated. All the things I love to see in a high-probability setup.
I hope you enjoy the video and found it insightful.
- R2F
Unlock the Secrets of Gold Trading: Pericles' Ancient WisdomIn this video, we explore the profound perspectives on fear from historical figures like Pericles and modern thinkers like Ryan Holiday. Pericles, the esteemed Athenian statesman, saw fear as a natural emotion that should not paralyze us. He believed in confronting fear with courage, rational thought, and strategic planning, using it as a tool for effective decision-making.
Ryan Holiday, drawing on Stoic philosophy in his works, echoes these sentiments with stories of historical figures who turned fear into fuel for success. He recounts how John D. Rockefeller faced market crashes with calm calculation and how Theodore Roosevelt overcame health challenges by embracing adversity.
Both Pericles and Holiday teach us that fear, when managed correctly, can become a powerful ally. By acknowledging fear, confronting it with rationality and courage, and using it to sharpen our focus and strategy, we can transform challenges into opportunities for growth and success. This approach is especially relevant in the realm of trading, where mastering fear can lead to better decision-making and greater resilience.
Key Levels and Patterns:
Higher Highs (HH) and Higher Lows (HL):
The chart shows a series of higher highs (HH) and higher lows (HL), indicating an overall uptrend. This pattern suggests that the bullish momentum is still in play.
Ascending Channel:
There is a well-defined ascending channel where the price has been moving upwards within parallel trendlines. This channel can act as a guide for potential support and resistance levels.
Reversal Points (LQZ):
1-Hour LQZ / Reversal Point: Located at 2,429.190. This level is a potential area where price may reverse or find support.
4-Hour LQZ / Reversal Point: Located at 2,391.394. This level also serves as a significant support zone.
Take Profit (TP) Levels:
TP 1: 2,319.385
TP 2: 2,288.085
TP 3: 2,265.369
Recent Price Action:
The price recently reached a higher high at around 2,458.755 and then pulled back slightly, indicating a potential short-term correction within the overall uptrend.
The ascending channel suggests that if the price remains above the lower boundary of the channel, the uptrend is likely to continue.
If the price breaks below the 1-hour LQZ / Reversal Point at 2,429.190, it could test the 4-hour LQZ / Reversal Point at 2,391.394. A further breakdown below this level might lead to the next support at TP 1.
Analysis Summary:
Bullish Scenario: The price could bounce from the current levels or the lower boundary of the ascending channel, aiming for new highs. Traders might look for buying opportunities near the support levels of the channel and reversal points.
Bearish Scenario: If the price breaks below the identified reversal points and the ascending channel, it might signal a deeper correction, potentially heading towards the TP levels for possible buying opportunities at lower prices.
By applying Pericles' wisdom of confronting fear with rationality and Ryan Holiday's insights on turning fear into strategic advantage, traders can approach these levels with a clear, disciplined mindset, making informed decisions even in volatile market conditions.
Engage: Type of trading Day { DOUBLE DISTRIBUTION TREND DAY}DOUBLE DISTRIBUTION TREND DAY
A double distribution trend day is an extension of a regular trend day. It exhibits two distinct price distribution phases within the trading session, with each phase characterized by a different price range. The first distribution typically follows the morning market open, while the second occurs later in the day.
Key features:
The market opens with brief consolidation phase
After the consolidation, a new trend emerges, usually with higher volatility
Followed by another consolidation phase
Trading strategies:
Use Initial base Breakout trade.
The Concept shared from the Book " Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market " by Frank O Ochoa (Author)
Trump / Rates / Dollars / Coins, OH MY!Interest Rates and the Dollar
Interest rates, set by central banks, are a critical component of monetary policy. The Federal Reserve (Fed) in the United States uses interest rates to control inflation and stabilize the economy. When the Fed raises interest rates, it becomes more expensive to borrow money, which tends to slow down economic activity and reduce inflation. Conversely, lowering interest rates makes borrowing cheaper, encouraging spending and investment, which can stimulate economic growth.
Impact on the Dollar:
Higher Interest Rates : When interest rates rise, the yield on U.S. government bonds and other fixed-income securities increases, attracting foreign investment. This inflow of capital strengthens the U.S. dollar as investors buy dollars to purchase these higher-yielding assets.
Lower Interest Rates: Conversely, when interest rates are lowered, the yield on these investments drops, making them less attractive. This can lead to capital outflows and a weaker dollar as investors seek better returns elsewhere.
Interest Rates and Cryptocurrency
Impact on Cryptocurrencies
Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are often seen as alternative assets. Their relationship with interest rates can be complex:
Rising Interest Rates:
Higher interest rates can negatively impact cryptocurrencies. As safer, yield-bearing investments become more attractive, investors might shift their funds from speculative assets like cryptocurrencies to bonds and savings accounts.
Falling Interest Rates:
Lower interest rates can make traditional investments less attractive, potentially driving more investment into riskier assets like cryptocurrencies in search of higher returns.
The Importance of Policy Decisions Independent of Political Agendas
Central Bank Independence:
The independence of central banks from political influence is crucial for maintaining economic stability. When monetary policy decisions are driven by economic data rather than political agendas, it helps ensure that actions taken by central banks are aimed at achieving long-term economic goals such as controlling inflation and maintaining employment levels.
Transparency and Credibility:
Independent central banks are more likely to make transparent and credible policy decisions, which can build market confidence.
Economic Stability:
Policymaking that is insulated from short-term political pressures helps avoid economic instability that might arise from politically motivated decisions.
Recent News: Assassination Attempt on Donald Trump and Its Impact on BTC Markets
Recent News:
There was an assassination attempt on former President Donald Trump, which has created significant political and market turbulence.
Impact on BTC Markets:
Market Reaction:
Such high-profile political events can lead to increased uncertainty and volatility in financial markets. Bitcoin, often seen as a hedge against political and economic instability, may experience increased buying interest as investors seek to protect their wealth.
Price Movements:
Following the news of the assassination attempt, Bitcoin's price saw notable fluctuations as traders reacted to the heightened political risk.
Conclusion
Interest rates play a pivotal role in influencing the value of the U.S. dollar and cryptocurrencies. Central bank decisions on interest rates, when made independently of political agendas, contribute to economic stability and investor confidence. Recent political events, such as the assassination attempt on Donald Trump, highlight the sensitivity of markets, including cryptocurrencies, to geopolitical developments. Understanding these dynamics is essential for investors navigating the complex financial landscape.
How to use Moving Averages like a proIn this video I describe how I use Moving Averages to trade and to stay in sync with the market. Popular Moving averages include the 9, 21, 50, or 200. Feel free to use Simple Moving averages or Exponential moving averages, both works fine, and I like to use the EMAs because they are a little quicker to respond to price movement. I also go over a trading strategy for going long or short in the market once the 50 EMA starts to change directions, I will take a position in that direction. So, if the 50 EMA goes down for a long time, I will take a long once it starts to point up. Thank you for watching!
Video Recap On This "3 Step System"The rocket booster strategy is a very powerful
trading system and i want to share it with you so that
you can have a stepping stone into your trading
Journey, because even a small step ahead is better than no
step at all.
Trading is a very hard skill to understand, and so i want you
to take your time to learn it, eventually if you stay committed
you should learn more about it.
In this video, i share with you the Rocket Booster 3-Step System
Watch it now to understand more about this powerful system
Disclaimer: Trading is risky you will lose money wether you like it
or not, please learn risk management , and profit taking strategies.
Revealing My Top Gold Trading Secrets for Huge Profits!In this video, I reveal my top trading secrets for making huge profits in gold trading (XAU/USD). This educational content will cover key technical analysis techniques and strategies that I frequently use in my charts, as well as valuable insights into trading mindset and proper risk management. Let's unlock the potential of your trading skills together!
Technical Approach:
In this educational segment, we'll focus on the core technical analysis principles that I use to make informed trading decisions. Here's a detailed breakdown of my approach:
Identifying the Trend:
Uptrends and Downtrends: Learn how to recognize market trends using higher highs and higher lows for uptrends, and lower highs and lower lows for downtrends.
Trendlines: Use trendlines to connect the highs and lows of price movements, helping to identify the direction of the trend and potential reversal points.
Support and Resistance Levels:
Support Levels: Identify areas where the price tends to find support as it falls, acting as a floor preventing further decline.
Resistance Levels: Identify areas where the price tends to find resistance as it rises, acting as a ceiling preventing further ascent.
Historical Price Action: Use past price movements to pinpoint key support and resistance levels that the market respects.
Liquidity Zones (LQZ):
Definition: Liquidity zones are areas on the chart where there is a high concentration of trading activity, often leading to significant price movements.
Identification: Learn how to spot these zones using volume profiles, order flow analysis, and historical price action.
Trading Strategy: Use liquidity zones to identify potential entry and exit points, as they often precede major price moves.
Volume Analysis:
Volume Spikes: Understand how volume spikes can indicate strong buying or selling interest, confirming the validity of price movements.
Volume Trends: Analyze volume trends to gauge the strength of a price trend and anticipate potential reversals.
Entry and Stop Loss Strategies:
Breakouts and Pullbacks: Enter trades on confirmed breakouts above resistance or below support, or on pullbacks to key levels within a trend.
Trailing Stop Loss: Implement a trailing stop loss to lock in profits as the trade moves in your favor, adjusting the stop loss level as the price progresses.
Mini Lessons: Mindset:
Patience and Discipline:
Patience: Wait for the right trading setups that meet your criteria, avoiding impulsive decisions.
Discipline: Stick to your trading plan and rules, even when the market becomes volatile or unpredictable.
Emotional Control:
Stay Calm: Keep your emotions in check to avoid making irrational decisions based on fear or greed.
Mindfulness: Practice mindfulness techniques to remain focused and calm, especially during stressful trading situations.
Proper Risk Management:
Position Sizing:
Risk Per Trade: Limit the amount of capital you risk on any single trade, typically 1-2% of your trading account.
Position Size Calculation: Calculate your position size based on the distance to your stop loss and your risk tolerance.
Risk-Reward Ratio:
Target Ratio: Aim for a risk-reward ratio of at least 2:1, meaning your potential profit should be at least twice your potential loss.
Trade Evaluation: Evaluate each trade based on its risk-reward ratio before entering, ensuring it aligns with your trading strategy.
By incorporating these technical strategies and mindset principles, you can enhance your trading performance and increase your chances of success in the gold market. Stay tuned for more educational content and trading insights!
Gold Trading Strategies: Mastering Technical Indicators for InsaLearn how to master technical indicators for gold trading and maximize your profits with these effective strategies. In this video, we will provide valuable insights on how to use technical indicators specifically for gold trading, helping you make informed decisions and achieve insane profits. Whether you are a beginner or an experienced trader, understanding these techniques can significantly improve your trading success. Watch now to enhance your gold trading strategies and take your skills to the next level!
