4 ways to set a Stop LossIn this video I explain how to set a stop loss 4 different ways, In order for more traders to become systematic.
Structure
Market Structure Identification ✅Hello traders!
✅ MARKET STRUCUTURE .
Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit.
✅ Types of Market Structure
Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl)
Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll)
Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating .
I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual strucutre
How the higher time frames help you to avoid unnecessary losses Hello everyone:
Today I want to discuss the importance of higher time frame analysis.
Doesn't matter what type of trading strategy, method or style you use,
the higher time frame often will help us to strengthen our bias overall and give us a good perspective of the possible direction for the price to go.
In addition, it helps traders to avoid unnecessary losses and mediocre entries that will eat up your profits.
More often I hear traders will execute trades on the lower time frames, and not factor the overall higher time frame bias and perspective.
Although entering on the smaller time frame can potentially give you more Risk:Reward, it's often more risky and trades can easily reverse, then hit the stop loss.
This often creates stress, negativity, and revenge trading psychology for traders which ended up blowing accounts.
I want to give a few examples of higher time frame analysis, how they can help traders to avoid “traps” on the lower time frames, avoid unnecessary losses, and keep the emotion at bay to trade another day.
When having a bullish bias on the HTFs, its good risk management to not consider any short term, bearish sell setups.
These sell setups may form on the LTFs, but they can easily not continue to your desired target, and reverse up before you have time to react.
In addition, traders hate to see profit come and go.
So if a trader has a short position running in some profit, but decides to hold onto the trade, and once the position reverses, traders don't want to exit, and then end up holding a losing position to its SL.
Examples:
AUDUSD:
HTF: Overall bias and perspective in bullish
LTF: Many LTF bearish setups/development, but due to going against the HTF, they ended up with losses
NZDUSD:
HTF: Overall bias and perspective in bullish
LTF: Many LTF bearish setups/development, but due to going against the HTF, they ended up with losses
AUDCHF:
HTF: Overall bias and perspective in bullish
LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss
NZDCHF:
HTF: Overall bias and perspective in bullish
LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss
NZDCAD:
HTF: Overall bias and perspective in bullish
LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss
SILVER:
HTF: Overall bias and perspective in bullish
LTF: LTF bearish setups/development, but due to going against the HTF, ended up with loss
How to analyze any market from scratch #3Hello everyone:
Many of you have asked me to continue making more of these analysing from scratch video, so I have prepared another one here for you today.
Not only will we refresh the previous 2 educational videos on this topic, I will go into a bit more details on the confirmation on the lower time frames with multiple examples in the chart.
Recall from the previous videos I made, when we want to analyze the chart from scratch, we always start:
1. From the higher time frames (HTF) to identify the impulse/correction phases of the market conditions so we can come up with a possible bias and direction of the current price.
2. Once we have a possible direction and bias, then we go down to the lower time frames (LTF) to also identify the impulse/correction phases which will lead to your confirmation and entry.
These are simple steps to follow, based on multi-time frame analysis, top down approach.
Many have told me it's not hard to identify the HTF’s impulse and correction, but what can be classified as a LTF confirmation before entry?
Let's take a detail look into a few examples:
A LTF confirmation is when the price is developing a few more price action structures/patterns that align with your HTF direction and bias.
These can be continuation/reversal corrections on the LTF; impulse phases on the LTF that go with your bias on the HTF; multiple corrections within the larger corrections (patterns within patterns)...etc.
The more of these LTF price actions you can identify, the more it strengthens your analysis and forecast on the HTF.
Thank you
Do check out my previous educational contents on this same topic to better learn my approach to analyse any market from scratch.
How to analyze any market from scratch #1
How to analyze any market from scratch #2
The importance of confirmationsHey Traders,
How many times in your trading career have you had a set up that you are so confident in and is so clean that you just enter it without checking for confirmations? How many times have you seen price retract into a demand or supply area with so much force that you simply think it cannot go wrong? This trade setup right here is a prime example of why it is so important to check for confirmations and ensure that the lower time frames are indicating exactly what you want to see prior to entering a trade and not entering a trade out of fear of missing out and buying as soon as the price dips into a demand zone. Let me know in the comments if this relates to you or you've ever had an issue like this.
The analysis on the four hour had me very confident once we had broken over the recent highs. We indicated after a very long and steady downtrend that we could potentially start seeing a movement to the upside. Once we did get a clear structure break, it was followed by a strong push to the downside in which I like to call The Archers pullback. Price retraced straight back down into our demand area, which means we ticked step one and now we were looking for step 2 and Step 3.
As you can see, looking at the one hour chart, we had a steady downtrend formed prior to having a strong news release which pushed price down into the demand zone. Once we had this trendline formed, what I simply wanted to see was an area of consolidation, potentially a descending channel. Then a break of this trend line followed by a pull back followed by a break of structure down on the 15 minute. But what you can notice is as we have this trendline drawn an we dip into the demand zone, that price didn't break the trend line. It simply went sideways and did form a descending channel, but to the point where we broke the recent demand and set a lower low. In turn, it made this analysis invalid.
It is highly important that with all trade setups like this, especially trading the higher time frames, that we dive into the lower timeframes to ensure that the demand or the supply is entering the market the way we're anticipating so we can trade the distance with confidence. If we do not wait for confirmations then we are sitting blind and entering what you would call FOMO trades. Entering with much higher risk. As we can see here, price can just rip straight through these areas and we must be prepared to not take trades. If we were to enter blindly into these areas, this trade would of resulted in a loss on the account.
Do you find this analysis helpful? Should we chat more about this in the future?
Market StructureWhen we identify market structure, we can sell at a premium price or buy at a discount price. Since were selling, we are trading and looking to sell in the red area that says premium
Market Structure ExampleThis Is Just A Schematic Showing The Types Of Trends (RETAIL TRADING)
Here's The Schematic In The URL Below :
The Schematic Shows Components Of An Uptrend
The Schematic Shows Components Of An Downtrend
The Schematic Shows Components Of An Sideways trend (Consolidation)
Patterns Of The Uptrend > Uptrend Channel
Pattern Of The Downtrend > Downtrend Channel
I Hope This Schematic Will Be Of Help To You.
DISCLAIMER :
Before using this Tradingview account setups, please make sure that you note the following important information:
Do Your Own Research ( DYOR )
Our content is intended to be used and must be used for information and education purposes only.
It is very important to do your own analysis before making any investment based on your own personal circumstances.
You should take independent financial advice from a professional in connection with, or independently research and verify,
any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
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we have no access to non-public information about publicly traded companies,
and this is not a place for the giving or receiving of financial advice, advice concerning investment decisions or tax or legal advice.
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We are an educational forum for analysing, learning & discussing general and generic information related to stocks, investments and strategies.
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This Is Just A Schematic Showing The Types Of Trends (RETAIL TRADING)
Safe Haven Currency, How are they affected by global eventsHello everyone:
Want to talk a bit more about safe haven currency in the market.
Since the recent tension between Russia and Ukraine,
the safe haven currency could strengthen as a result of such uncertainty in the world.
We will take a look at some past history of these currency pairs,
how they react to the market at the time, and what could we reasonably expect in the current market conditions.
Safe Haven Currency
USD
JPY
CHF
It's in our interest to look for opportunities when a strong currency is paired with a weaker one.
This generally will move the price very impulsively with strong momentum.
Pair such as these below will potentially develop the best price action for good R:R trades.
AUDUSD
NZDUSD
USDCAD
GBPUSD
AUDJPY
NZDJPY
CADJPY
GBPJPY
AUDCHF
NZDCHF
GBPCHF
CADCHF
Always have good risk management when it comes to entering. Don't enter all the pairs, don't open too many positions,
and understand correlation between the currency pairs.
Thank you
DISCLAIMER:
-My forecast and analysis are NOT trading signals nor financial advice, you should not enter trades and invest solely on this information.
Jojo
Conservative vs Aggressive Entries - Different ways to enter!There are different ways to enter trades - some opt for an aggressive approach while others opt for a conservative entry. Aggressive entries are taken at the first signs of reversal out of a supply/demand zone while conservative entries wait for more significant larger structure breaks in the trend.
I almost always opt for the conservative take as I want structure to be with me all the way. By getting in with an aggressive entry you can achieve higher risk reward but you will also inevitably run into more losses because you are relying on the short term trend to confirm your higher timeframe intensions.
It comes down to your risk tolerance: Conservative entries require patience and sometimes when they don't give an entry you'll need discipline to avoid getting burned - but they are the wiser option for risk averse traders. Aggressive trades will get you in on nearly every move you have planned but they'll also get you took out a fair amount more than conservative entries. How much pain can you take?
I recommend choosing an approach and sticking to it - being a master of one approach is better than a novice at many!
Market Structure: Basic TrendsHey! Hope you are well!
In this chart there is a display of a swing trend. In a downtrend, there is a characteristic lower low and lower high; however, the downtrend is not officially broken until the prior high is violated.
In this chart, there are three lower bottoms; the tops are confounded; the second top partially violates the first; then, the rest of the tops are in the range of the prior swing consummating with the large wick.
A similar micro example is found in this chart.
This is a five minute chart exemplifying the same characteristics.
Be well, and enjoy!
Suggested Reading:
Law of Vibration - Tony Plummer
Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course
Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III
H.M. Gartley - Profits in the Stock Market
Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition
J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach
Fabio Dreste - Quantum Trading
Michael Jardine - New Frontiers in Fibonacci Trading
The Wave Principle, Nature's Law
Ralph Nelson Elliot
Technical Analysis of the Financial Markets
John J. Murphy
A Complete Guide to Volume Price Analysis
Anna Coulling
Mastering The Elliot Wave
Glenn Neely
Bearish Entry ExampleThis kind of price action happens all the time, you just have to spot it while it's happening so that you can plan your trade and execute. I have put this together to give you an idea of the type of things I look for in the hope that it can help you too.
Once price action has made a clear impulse to the upsides and taking out previous structure that's our first sign that the buyers are stepping in. Once we see some corrective price action we can place our fib from the high to low, mark out previous structure and identify the pattern that price is making to build a picture of where price is most likely to reverse giving us the best possible entry.
How to analyze any market from scratch (Impulse & Correction) #2Hello everyone:
I received positive feedback on the last video on how to analyze the market from scratch,
and many have told me to make more of these similar contents. So here we go :)
I will go through multiple examples of how I would analyze the market by following these simple steps:
Multi-time frame analysis (Top Down Approach) Start from HTF to LTF
Identify the Impulse Phase and Correction Phase
Identify whether the Corrections is Continuation or Reversal
HTF Bias > LTF Confirmation > LTF Entry
Any questions, comments or feedback welcome to let me know :)
Thank you
How to analyze any market from scratch #1
DISCLAIMER:
-My forecast and analysis are NOT financial Advice, you should not trade and invest solely on this information.
-There are many scammers & fakers impersonating me, my channels/platforms to scam people. Be very careful as I will NEVER private/direct message you first no matter what.
Cloudflare teaching moment. Meteoric rise = catastrophic dump.Hi everyone,
Today I would like to share a piece of knowledge on parabolic growth and poor market structures.
Let us take a look at NYSE:NET Cloudflare stock.
This was an attractive buy back in 2020. As always, nobody saw that until everyone started screaming about this stock on Twitter.
I saw an opportunity in investing into Cloudflare later in 2021 for a long-term.
I did not know what's coming.
At the beginning of October, after a decent sell-off something strange began happening.
Stock rose TWELVE days in a row. And not just stayed barely positive, it gained insane 68% in price during this short period.
Right there I knew this was not sustainable and price won't last up there for long.
Yes, I sold at 175 .
Yes, I missed a run up to 220 .
But, really, did I?
Noone can predict the top. But you can predict the inevitable downfall.
The Lesson.
Look at the chart.
You see the price in the first box going parabolicly up. The price took off to the moon and was hovering up in the air. Thus, poor structure has been created.
There is no single support level from 137 to 182 .
The Market hates poor weak structures and it tends to repair them sooner or later.
That is exactly what happened with Cloudflare stock.
Price has been flushed from 204 down to 123 as fast as it flew up there back in October. You can see that in the second box.
The structure has been repaired. A lot of data points were created in the process, which will help with the analysis in the future.
This might be a rebirth of Cloudflare stock constituting healthy future movement.
Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise
How to analyze the market from scratch (Impulse & Correction)Hello everyone:
Many have asked me about demonstrating how to analyze the chart from complete scratch.
When looking at my chart and educational video, it all seems very simple, but many are telling me they are struggling to identify the market.
Today I will go over how I analyze the chart, from the Higher time frame down to lower time frame by using multi-time frame analysis, top down approach.
Specifically by identifying price action, impulse and correction phases of the market.
1. Start from the Higher Time Frame (HTF): HTF can be any time frame higher than the daily chart, such as monthly, weekly, daily.
Personally I like to use daily as a go to time frame as it is widely used by traders.
2. Identify the impulse phase of the market. Understand the impulse phase is a period of fast momentum,
price is either pushing up or down very aggressively, and not much consolidation visible on the HTF.
3. Identify a period of consolidations. Using trendlines, connect the swing highs and lows of the price.
This is to identify the correction/consolidation phase of the market.
Which is the most important aspect in price action analysis.
You will need to be very knowledgeable on the type of continuation, reversal correction patterns/structures the market usually will form.
(I will share many price action patterns/structures that I identify and use in the market below)
4. Once you identify the HTF phase of the market, you will then go down to the Lower time frames (LTF).
LTF can be anything under 2/1 HR, 30/15 Min charts. It's not a specific time frame, rather “Multi time frame analysis”.
You will also identify the impulse phases & Correction phases on the LTF and use trendlines to connect the swing highs and lows of the correction/consolidation phase, just like what we did on the HTF.
5. Now that you have both the HTF and LTF charts drawn out, the key here is to have both the HTF and LTF tell you the same direction/bias.
They should align up and have the same bullish/bearish bias. This will strengthen your probability of success.
I always make sure when I am about to enter any trades, I want the multi-time frames all telling me the same story. Same bias, same direction.
6. Now all that comes down to is forecasting the possible entries, which I have made many videos on this topic and I will share some below.
Understand you would always want to make sure you are either entering during the impulse phase on the LTF,
or the price is about to start the impulse phase to gain the upper hands in the market.
You do not want to enter when the price is in a consolidation which is why many traders end up losing money, stuck in the correction and price isn't moving too much, rather just sideways.
7. Continue to work on analyzing the chart from scratch, get comfortable at identifying the impulse phase in the market,
and do backtesting continuously so you identify the corrections in the market.
This will make you see the chart and the market completely different than before, and you will have a much better probability of entering trades that work out in your favour.
Any questions, comments or feedback welcome to let me know.
Jojo
Below I will share many educational videos that will help you to understand more on price action analysis, impulse/correction phase, entry, forecasting, backtesting and more.
Continuation and Reversal Correction
Identify a correction for the next impulse move in price action analysis
Multi-time frame analysis
Continuation Bull/Bear Flag
Parallel Channel (Horizontal, Ascending, Descending)
Reversal Ascending/Descending Channel
Reversal Rising/Falling Wedge
Reversal Double Top/Bottom
Reversal Head & Shoulder Pattern
Reversal “M” and “W” style pattern
Reversal Impulse Price Action
Continuation/Reversal Expanding Structure/Pattern
Risk Management: 3 different entries on how to enter the impulsive phrase of price action
Risk Management: How to Enter and set SL and TP for an impulse move in the market
Risk Management: When/How to move SL to BE and to profit in a running trade ?
How forecasting can benefit your trading journey
Backtesting & Chartwork on Forex Market
Backtesting & Chartwork on Indices Market
Backtesting & Chartwork on Crypto Market
How & Why I backtest:
Market Structure Simplified It is easy to get confused with overflowing information about market structure in the trading world.
To simplify things we have come up with a way of analysing market structure simply by marking each high or low.
In this particular example, you can see that higher lows were being created all the way down the bearish trend, so we knew that it was a seller's market UNTIL we got our break of structure .
When the BOS became apparent, we began to shift our attention to the possibility of reversals and used our magic tool, the Fibonacci.
This technique can be used in any trend, try it for yourselves!
Please, support this post with a like and comment!
When/How to move SL to BE and to profit in a running trade ?Hello everyone:
Today I want to discuss a topic in Risk Management, specifically on when and how to move your STOP LOSS to BREAKEVEN or in PROFIT when you have a running profit trade/position.
In an impulsive phase of the market, we want to make sure to protect our entry as well as secure profits.
In this example of EURUSD, I managed to get 2 entries in, and manage it to my best ability and secure profits
Trade close down for +7.9% profit
Original Trade Forecast and Analysis:
This is a topic that will have various answers across traders, as this is certainly up to each individual trader’s strategy, style, and management approach.
So understand there is no right or wrong, “holy grail” kind of decision.
It's up to you individually as a trader. I will share my management, and why I choose to go with these types of approaches, and you can certainly use them to your advantage to tweak/modify them to fit your strategy.
Few things to keep in minds are:
1. Moving the SL to BE or/and in profit is a way to protect your entry, as well as secure profit.
2. Sometimes moving the SL too early may “choke” the price, and you can get stopped out for BE or small profit. Then watch the price take off in your desired direction, which can create negative emotion.
3. Whereas sometimes if you don't move SL to BE or in profit, you can watch a trade that hits 3:1 RR or more, end up reversing down, passing your entry point and to your actual SL of -1%, which can also create negative emotion.
4. No perfect scenario or management when it comes to the aspect of trading, as every trade is unique, and different outcomes may happen, since the market itself is not perfect, and can do whatever it wants to do.
Now, I will explain my own management when it comes to moving SL to BE or/and in profit.
Certainly this is NOT the only way, nor it will be the best way, but over the years of backtesting & chartwork have given me reassurance on these types of management ways.
I will then show some real live examples on the trades that I closed down, and how I manage them as well.
CADJPY -
Original Trade Forecast and Analysis:
GBPJPY -
Original Trade Forecast and Analysis:
CHFJPY -
Original Trade Forecast and Analysis:
NASDAQ -
AUDNZD -
Original Trade Forecast and Analysis:
First, a general rule of thumb for me. IF the price has hit about 1:1 RR or so, and has broken past the previous recent lows,
I will move my SL to BE. There is no exception in this rule.
Again, I explained earlier that sometimes this will help you to protect your entry when price reverses, and sometimes it will choke the price.
In this case, I would rather take a BE first, and re-look for entry again in the same position, as long as the bias and the price action is still valid on both the higher time frame and lower time frame.
Second, once the entry is in some profit, say 2:1 or higher, I generally will move the SL up to about +0.5% profit or so.
Just want to secure a little profit while not choking the price entirely.
Third, once the entry is in 3:1 profit, then I will move my SL to +1% profit.
This is where I generally will decide whether I should take full profit here, or hold the trade for a mid-long term if the higher time frame has given me the bias.
Fourth, since the trade has already been in 3:1 profit or higher, generally we can expect a continuation correction to form now after the impulse phase.
If it's a smaller correction and price isn't reversing up sharply right away, I will move my SL to about +1.5% profit, set my alert above the continuation correction and observe the development of the correction.
This is generally a point where I can decide to hold the trade longer, or if it reverses up from the continuation correction, then exit the trade for profit.
Fifth, if we start to see a possible reversal development, then I will move down my SL to the recent swing highs/lows,
or just above the reversal correctional structure, and will let the trade tag me out for profit if it reverses.
Any questions, comments or feedback welcome to let me know :)
If you enjoy these contents, and the educational lessons are helpful, please press like, subscribe and follow for more.
Jojo
How to use trendline to identify price action structure/patternHi everyone:
Many have asked me about how to properly use trendlines to identify price action structures and patterns. So in today’s educational video, I will go over this topic in more detail.
First, I use the trendline as a “frame” to identify structures and patterns, and NOT use it as a Support/Resistance.
What I do is to put in the trendline for the highs and lows of the price action that can help me to pinpoint what the price is doing, what kind of a correctional structure that it is currently in.
Typically after an impulse phase of the market, then we start to identify a structure/pattern by connecting the swing highs and lows.
Second, as I always point out in my videos/streams, a structure/pattern needs at least 2 swing highs and lows to classify as a structure.
Certainly more swing highs and lows are good, but it's not necessary. Often I get asked about the “third touch” or more. To me it's not necessary, but if price does form the third touch, I would proceed the same as the price has a second touch.
Third, we are identifying the price action correctional structure, and sometimes the market is not perfect, it will not give you a textbook looking bullish flag as an example.
Hence the backtesting and chartwork from each trader is important to get your mind familiarized with the market and its “imperfect” development of the price action.
After identifying the impulse phase, then look to see what the market is doing. Is it falling into a consolidation ?
Not much movement except sideway price action, or ascending/descending like consolidation will give you a clue on whether the price is correcting to continue, or correcting to reverse.
Take a look at the educational videos I have made in the past regarding the type of correctional structures we typically see in the market. All the videos are down below.
Continue to backtest and do chart work to get familiar with drawing in the structures/patterns. The more you do these, the better and easier it is for you to identify them in your trading journey.
Remember, the market is not perfect, so not all the structures/patterns will be “Textbook” like on the real, live market. Learn to deal with the “imperfect” market, so you can better utilize price action analysis to your advantage.
Any questions, comments or feedback welcome to let me know :)
Thank you
Below are all my price action structures/patterns videos on different type of corrections.
Continuation and Reversal Correction
Identify a correction for the next impulse move in price action analysis
Impulse VS Correction
Multi-time frame analysis
Continuation Bull/Bear Flag
Parallel Channel (Horizontal, Ascending, Descending)
Reversal Ascending/Descending Channel
Reversal Rising/Falling Wedge
Reversal Double Top/Bottom
Reversal Head & Shoulder Pattern
Reversal “M” and “W” style pattern
Reversal Impulse Price Action
Continuation/Reversal Expanding Structure/Pattern
Closer look into Rising/Falling Wedge, Reversal Price Action
Closer look into Rising/Falling Wedge, Reversal Price Action structures/patterns
Hi traders:
Today I will go more in detail on rising/falling wedge correction in price action structures/patterns.
You might have already heard about these types of correctional structures, and many traders who utilize them.
Certainly there are many ways of traders identifying them and taking advantage of these kinds of price action, so it's ideal for you to understand them in your analysis.
We first need to understand that a rising/falling wedge is a REVERSAL price action. Meaning when the correction completes, there's a higher probability of the price to reverse.
You might have already seen multiple price action videos from me that go over all sorts of continuation and reversal price action (I will share links below),
and I always talk about when combining multiples of different price action structures/patterns will give you a better edge at entering positions that work out in your favor.
Same idea here, so let's take a look at how rising/falling wedges are, how to identify them, and how to effectively use them in your analysis.
Rising/falling wedge, just as the name suggests, is an ascending/descending type of correction where the price is getting squeezed into a “wedge”.
As the price gets narrower and narrower, there's a higher probability of the price to “reverse” from the wedge.
Now about entries, certainly many traders have their own method of entering, so I will share my point of view and the way how I like to enter them.
Any questions, comments or feedback welcome to let me know :)
Thank you
Risk Management: 3 different entries on how to enter the impulsive phrase of price action
Multi-time frame analysis
Identify a correction for the next impulse move in price action analysis
Continuation and Reversal Correction
Continuation Bull/Bear Flag
Parallel Channel (Horizontal, Ascending, Descending)
Reversal Ascending/Descending Channel
Reversal Double Top/Bottom
Reversal Head & Shoulder Pattern
Reversal “M” and “W” style pattern
Reversal Impulse Price Action
Continuation/Reversal Expanding Structure/Pattern
5 Min Trading How to Identify SMS on a High Time FrameIn this 5 Min Vid...
We are identifying how to place your SMS lines to identify SMS ie...posibility of trend change on a high Time frame.
On a low time Frame this is consider a stop hunt.
Continuation & Reversal Correction in price action structures
In-depth look at Continuation & Reversal Correction in price action structures/patterns
Hi everyone:
Today I want to revisit the fundamental aspect of trading impulsive and corrective phases in Price Action Analysis.
As you all know I focus on multi-time frame analysis and forecasting/anticipating the next impulsive move in the market.
To me, the most important part of identifying the next impulsive phase of the market, is to understand how correction works.
An impulse phase usually happens after a correction has finished correcting, so the key is to identify and understand how a corrections structure will complete so we anticipate the next impulsive move.
You may have seen my videos on this topic, but today I will go more in detail on this, and explain the 2 types of correctional structure the market can create.
The market can only be in 2 phases, impulsive phrase or corrective phrase.
In addition, the corrective phrase can only be continuation, or reversal.
So to fully have an edge in the market, is to understand what the correctional structure the price is currently making,
whether a continuation/reversal, then forecast the possible price outlook, and go down to the lower time frames for possible entries.
Now, it's important to understand that different traders/strategies/styles will call these patterns/structures in varies names.
What they are called or identify isn't important, but the important aspect is to understand whether they are continuation, or they are reversal.
In addition, simply seeing price action structures/patterns by itself, is not a good enough entry criteria for me.
You want to combine multi- time frame analysis, top-down approach, and with multiples of these price actions all happening so it adds extra confluence for you to enter a particular trade.
Seeing a H and S pattern, on a 5 minute chart, without considering the overall HTF and other factors, will not be a consistent move in the long run.
Continuation Correctional Structure/Pattern
Bullish/Bearish Flag
Bullish/Bearish Pennant
Parallel Channel
Reversal Correctional Structure/Pattern
Ascending/Descending Channel
Rising/Falling Wedge
Double Top/Bottom
Head & Shoulder Pattern/Inverse H and S
“M” and “W” style pattern
Reversal Impulse Price Action
I will forward all the price action structures/patterns videos I have made in the past to help you understand each of the structures more.
Impulse VS Correction
Multi-time frame analysis
Identify a correction for the next impulse move in price action analysis
Continuation Bull/Bear Flag
Parallel Channel (Horizontal, Ascending, Descending)
Reversal Ascending/Descending Channel
Reversal Double Top/Bottom
Reversal Head & Shoulder Pattern
Reversal “M” and “W” style pattern
Reversal Impulse Price Action
Continuation/Reversal Expanding Structure/Pattern
Any questions, comments or feedback please let me know. :)
Thank you
Jojo
How to manage & deal with consecutive losses in trading ?
Trading Psychology: How to manage & deal with losses/consecutive losses in trading ?
Hi everyone:
Today I want to go over a very key trading psychology lesson on how to deal with losses, especially consecutive losses.
This is bound to happen to any traders, whether you are new or experienced. ITs something all professional traders will have to deal with on a regular basis.
Understand that, dealing with losses psychologically is the key factor in the success of a trader.
This is because losses are inevitable, and trading is a probability, which trades that you take will end up both in wins and losses.
However, traders usually can not accept losses, due to their ego, greed and other emotional factors.
Aside from having a good risk management, trading plan, and trading strategies, traders can still experience the psychological emotions of losing.
This is due to the fact that we are humans and we are an “emotional” animal. We don't want to be wrong, at all.
Taking a loss is like getting slapped in the face by the market, which we have egos to fight against.
What ends up after taking losses or consecutive losses, it puts traders at a disadvantage where their emotion is high, and likely to “revenage” trade to chase back losses, which end up in a deeper hole.
To deal with such psychological phenomena, take a step back and observe your situation:
First, did you follow your trading plan/strategy on how to enter, set SL/TP, and management ?
Second, did you take an emotional trade due to greed or fear of missing out ?
Third, have you journal down your losses and review them to make sure they are trades you really want to risk your capitals on ?
By now you will see why we need to review these. Trading is a probability, not right or wrong. It's a random variable that you are putting your $ at risk.
So if you understand the rules and plans that you follow and execute a trade accordingly,
then there should NOT be any negative emotions towards the outcome of the trades, whether they are winners or losers.
When I discuss the trades I entered every week in my trade recaps videos, I am always happy to enter a position, even if it goes to a loss.
This is because I have done enough backtesting, chart work, and plan to enter a position.
I understand strictly from a probability point of view, I could have a higher strike rate, and more often the trades will end up as a winner rather than a loser.
However, I also understand and acknowledge that some trades will end up in a loss, disregard mine technical analysis or other’s fundamental analysis. It is what trading is all about.
When I have consecutive losses, I will always review the 3 points I mentioned above and make sure they are all valid for me.
Then I simply will take 1 day off from the market, chart, phone, and just get your mind clear. Come back strong after 1-2 days of rest, and have a positive mindset.
What traders often do when they have consecutive losses is to right away re-enter back into the market and try to chase back their losses.
This has always been the downfall of losing and it creates anxiety in traders’ minds.
Such a negative experience is going to stay in the traders’ mind longer and deeper, compared to consecutive winners.
So wise we understand that is the case how our brain is "programmed” into thinking, then it's up to us to do the opposite, and fight the urge to “revenge” our losses.
At the end of the day, no one is trading your trading account, except yourself.
Taking ownership of your account, learning to control our emotions, understanding the probability side of trading, and learning to let go, drop our ego will help us in the long run in this industry.
I hope these pointers can help some traders who are still struggling with this concept.
It's impossible not to take losses, but professional traders deal with it on a regular basis and still remain consistent in the long run.
Thank you
I will forward some Trading Psychology educational videos below on some of the topics explained today.
Trading Psychology: Revenge Trading
Trading Psychology: Fear Of Missing Out
Trading Psychology: Over Leveraged Trading
Trading Psychology: Is there Stop Loss Hunting in Trading ? How to deal with it ?
How to trade based on a Multi-Timeframe Analysis?Good morning, traders! Today we will do an explanatory post on how a Multi-Timeframe Analysis (Weekly-Daily-4H) can be used to take a trade. The benefit of this is that we will be trading taking into account the short, medium, and long-term behavior of the price, which gives us a higher success rate. Many times, we take a trade focusing only on one timeframe, and we are missing relevant information of higher temporalities, such as areas that we are not seeing.
Let's see how it would look in practice:
🔸The first thing is to start with the chart with the higher temporality, in this case, the Weekly:
- We see here that the price is in a range and bouncing in the support zone where a strong bullish momentum was previously generated. This gives us a first bullish hint.
🔸Then, in the Daily chart (published), we see that the price bounces off the previously marked zone and breaks the downtrend channel. This is the second bullish sign.
- In addition, in this chart, we proceed to mark the potential targets of the movement.
🔸Finally, in the 4H chart is where we will look for our entry into the market:
- After the break of the bearish channel, the price begins a corrective process at the edge of the trend line. When the breakout of this structure happens, the optimal thing is to place an income above the last lower high of the structure to avoid potential fakeouts.
BASIC BULLISH MARKET STRUCTUREWhat is Market Structure?
Market Structure is the technical structure of any market that appears over time as one primary position holds the majority of the strength (buyers or sellers). Market structure is a key technical understanding to be able to identify what the market has been doing in the past and what it has the potential to do in the future.
Market Structure is the continuous series of higher highs and higher lows (bullish market structure) or the continuous series of lower highs and lower lows (bearish market structure). When market structure is non relevant and there are no higher highs or lower lows, this is a time of consolidation.
So, what is bullish market structure?
As stated above, bullish market structure is a series of higher highs and higher lows in the markets. We can identify this series by seeing 2 or more sets of higher highs and higher lows.
Of course market structure is not EXACT, which is why trading is so hard, there is no EXACT path that price will take EVERY time, but you must understand the overall concept and be able to adjust to market conditions.
