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Structure

USDCAD - Be Careful of Overlapping Levels of Structure Experience is a major part of becoming a consistently profitable trader. Now experience isn't just gained by the amount of time that you spend in the markets, it has to be earned by doing the little things such as reviewing your trades on a daily basis & asking yourself what did I do good, what did I do bad & what could I have done better? Something that I began to notice in my trading years back was that I wasn't being the smartest with my stop loss in certain situations and this was mainly due to having too much of a recency bias and not focusing enough on the past in comparison to the present. Situations like the one on the chart would routinely take me out because although my stops were below the most recent level fo structure (making me feel safe), they were not below those sneaky past levels of structure causing me to be easy pickens for smart money hunting. I now take this into account on every trading scenario I look at and although it has reduced the amount of trades that I take, it has increased my efficiency in the opportunities that I do take. Akil
Education
by Akil_Stokes
10
How To Read Charts (Sec. 2) Mastering Reversals, Trends & RangesHey Traders, Here is Section 2 of the "How to read structure (Charts) Tutorial". In this Section, you will learn some of the methods that professional trend traders use to bring home a profit week after week, month after month, & year after year! In this Section, I will be explaining- - The Characteristics of a healthy trend (Chart 6) - A simple method that makes identifying trend reversals easy (Chart 7) - Why you should not rush your trades plus when & why you should have a neutral biased as a trend trader (Chart 8) - Mastering Reversals & how to trade them properly (Chart 9) - Continuation of GBPUSD Structure Analysis ~ How To Identify & Avoid Trading Ranges To Improve Your Trend Trading Strategies ~ The Importance Of A Candles Closing Price. (Chart 10) - One of my trend trading rules to avoid trading ranges & Intro to the 1st part of Section 3. (Chart 11) Section 1 of this tutorial is linked below. Please start with section 1 as it will lay some of the ground work for this section & will also show these methods on actual charts. This section of the tutorial is a breakdown of the methods taught in section 1 and when studied together, can really give you a good understanding of how trends, reversals, ranges etc work. Please feel free to leave feedback below regarding if these tutorials have been helpful. I will be releasing many more of these tutorials in future ideas and your feedback really helps me to improve them! It may take you a couple minutes to get use to the format of these tutorials so take your time & read over the charts multiple times as there is a lot of good information provided within these tutorials. Chart 6- Characteristics of a healthy trend Chart 7- A simple method that makes identifying trend reversals easy Chart 8- Why you should not rush your trades plus when & why you should have a neutral biased as a trend trader Chart 9- Mastering Reversals & how to trade them properly Chart 10- Continuation of GBPUSD Structure Analysis ~ How To Identify & Avoid Trading Ranges To Improve Your Trend Trading Strategies ~ The Importance Of A Candles Closing Price. Chart 11- One of my trend trading rules to avoid trading ranges & Intro to the 1st part of Section 3. You Have Completed Section 2 Of The "How To Read Structure (Charts) Tutorial. Charts 6-11"! Thank you for taking the time to finish this section of the tutorial! I hope Section 1 and 2 have been helpful to you! In section 3, we will start looking at how you can use price action/structure & the methods taught in this tutorial to design your own trading strategy! After all of the sections are complete, you will have the tools needed to read structure, create your own rules based trading strategy and much more so please stick around as this is only the beginning of a very educational tutorial. Thanks Traders!
Education
by Alec40
16
How To Read Structure (Charts) Tutorial- Section: 3 Charts 12-18The highly anticipated release of the How to read structure tutorial is finally here! Thank you for your patience traders, lets get right into it. In Section one and two of the how to read structure tutorial, we spent a lot of time going over the process that I use to identify potential reversals as well as what I consider to be confirmation of a trend reversal. In this section we are going to learn why I use this process & how it helps me identify the difference between a pull back and an actual reversal. We are also going to take our first detailed look into how this process is used to identify trading ranges as they are occurring & we will end with a brief introduction regarding how to properly use multiple timeframes to increase your strategies performance and overall returns. Section 3 Will Consist of 7 Charts: Chart 12- Simple Pullbacks Explained. Chart 13- One Simple Way To Identify A Fake Reversal + Identifying The Complex Pullback. Chart 14- My Method Of Identifying Trading Ranges Before They Occur. Chart 15/16- Continuation Of Chart 14 & Why The Complex Pullback Method Is Effective. Chart 17/18- An Effective Way To Use Multiple Timeframes With A Strategy. Chart 12- Simple Pullbacks Explained & Ground Work For Learning The Complex Pullback Method The majority of people who try their hand at trading, do not have any formal training or education of any kind therefore most of the trading related knowledge they learn is obtained through free sources, books or online courses that never fully go all the way, leaving them with a ton of questions and confused. Proper chart reading and structure analysis is one of the most commonly misunderstood aspects amongst novice traders, and at little to no fault of their own. It is important to understand that not all structure analysis is the performed the same, each trader may have his/her own process for reading structure so if this is a topic you wish to learn, I highly recommend learning one traders specific process to avoid confusion and conflicts with education that you may have learned elsewhere. Chart 13- One Simple Way To Identify A Fake Reversal & Identifying The Complex Pullback (my process) It is said and assumed that- "In order to identify a trading range, price must trade in it for an extended period of time". This is true with the traditional method of technical analysis however the Complex Pullback is an advanced structure analysis method that I have used to successfully identify trading ranges as they are occurring for years... With this method, we do not have to wait for a trading range to be established before identifying it as one, which gives us the ability to spot & avoid many false reversals. Incorporating this method into your strategies, can dramatically increase its performance & returns. Please see the chart below to get a better understanding of how this method works. Chart 14- My Method Of Identifying Trading Ranges Before They Occur Chart 15/16- Continuation Of Chart 14 & Why The Complex Pullback Method Is Effective Each 4hr candle represents 4hrs of price action therefore, each 4hr candle can be seen as 4- 1hr candles. Lower timeframes, can be used to obtain more information about price action. For example- If your strategy uses a specific candlestick as an entry signal, dropping down to the 1hr chart would give you an additional 3 candles which would result in 3 more opportunities for your entry signal to appear. Chart 17/18- An Effective Way To Use Multiple Timeframes With A Strategy As always, I hope this tutorial was helpful to you. Please leave your feedback in the comments below, & if you got value from this please share & give the tutorial a thumbs up. Your Shares & Likes really help to get these tutorials out to traders who are trying to learn, While your feedback lets me know that these free tutorials are helpful to you. I will continue to share them if they are of value. If you would like to learn more about how to read charts, and structure based trading please see sections 1 & 2 of the "How to read charts, structure based trading tutorials" (linked in the related ideas section below) or head over to TradersNsights: Courses/Lessons Forex Coaching To request a tutorial or topics you would like to see in the future, Fill out a quick request form and enter "Request" in the subject field or simply comment below. More Free Trading Related Education
Education
by Alec40
40
BTCUSD- Understanding Structures in the Crypto MarketHi all, I felt compelled to spend quite a bit of time to create what I believe is an incredibly comprehensive guide to understanding the movements of the market. If you're tired of getting burned on every run, then look no further. Let's begin. You might notice a handful of purple and black bars in this chart- their purpose is to designate "structures", or zones of heavy resistance/support. They might take a moment to get a grasp of, but once you understand how to define them, it becomes easy, and you'll be to start predicting where a run will end with scary accuracy. To define a structure, you will essentially want to cover the .5-.618 region of a wave, although since waves rarely retrace exactly in that zone, you may want to expand your structures out a bit to cover wicks and outliers. Anyways, the easiest way to define your structure is simply by recognizing what our trend is. Would you be able to look at a chart and tell me when we've seen a bullish reversal or a bearish reversal? If not, it's quite easy; to spot a bullish reversal, look for a break above the previous high. To spot a bearish reversal, look for a break below the previous low. Obviously terms like "high" or "low" can be quite subjective, as there's a near infinite ways of looking at the charts, but having a bit of some background on Elliot Wave theory, Fibonacci retracements, and reversal candlestick patterns will help you recognize when a reversal is happening. The easiest way to try and find a reversal is by seeking out a definitive high and definitive low, and creating a Fibonacci retracement structure between the two. Let me go into detail a bit further below. If you reference the first picture above the chart, you'll see 3 blue arrows with a Fibonacci and a purple box. This is showing what a bullish trend would look like. To set up this structure, you must determine what your wave of interest is. In this example, we create our points based on the first arrow. In an uptrend, you will start your retracement from the top to the bottom, rather than the bottom to the top. The reason you want to do this is because you are retracing DOWN, so you want your retracement wave to head to the .618 in its respective direction. Anyways, as you can see, the second blue arrow is a retracement wave, and you can see that it touches the .618, ends, and then proceeds to start the third wave. Because we made a bounce off of the .618, we have confirmed continued bullish momentum. if we were to do a convincing close below the .618, this would more than likely indicate that a trend reversal is commencing. Understand that at times, we can be faked out by this, but this is the nature of trading. If you have a good trading strategy, you don't need to worry about losing trades every so often, so it's better to put your faith into something that's quite accurate rather than trade with no strategy in play. To keep in short (pun intended), whenever you are in a downtrend, the opposite applies to that of the uptrend; you will start your retracement from the bottom to the top. The same deal applies with the downtrend as it does the uptrend, in that a rejection of the .618 will most likely point to continued bearishness. Using these bullish and bearish wave structures are incredibly power tools that not only help you minimize losses, but they also give you the confidence to stay in a trade for longer than you might have realized was possible. Remember, if there's no clear signal of a trend change, then the trend will continue. So with these tools in hand, I went through every noticeable wave structure since the 3000 dollar range and determined wave lengths, which can be done by finding .5-.618 regions that appear to have found a lot of activity. For the most part, determining your wave structure will come down to common sense, but it takes a bit of practice to know where a wave starts and where a wave ends. If you look at each structure found in the chart, you'll notice they all start in different positions. I positioned each of them to reflect the date in which they first were established. As you can see, this is an incredibly powerful tool to have at your disposal, because it predicted the top in March, it predicted the top in May, and it predicted the top in July. Something tells me that this has predicted the top in September, too, but I'll let you guys figure that out ;). Additionally, the support structure (bottom purple bar) shows the rejection that we experienced in February, June, and August. I don't want to give too many details about my opinions or thoughts on what we have here, because this is meant to be educational over anything, but I hope that this helps you guys get a better understanding of what makes the market move the way it does. Feel free to message me if you have any questions, and be sure to shoot this a like if you dig what you've read. Happy trading!
BITSTAMP:BTCUSDEducation
by NickPadovani
2
Structures: Minor into a major.Just take a minute and study this chart. Price has often the tendency to morph from a minor structure into a major one. However, there are similarities and we can find them out by understanding the connections between the movements of price. Study the chart peace by peace and you will learn more then if you read a new book about a new trading setup... P! ...if you like what you see, how about learning how the Pitchforks work? Take my free ForkTrading BLUEPRINT course. Just register and you're good to go. Happy learning!
Education
by Tr8dingN3rd
A thread about STRUCTURE!This entire thread will be for STRUCTURE! In the "idea updates" column I will be posting all types of corrective and impulsive structures! When it comes to trading the waves, the 12345ABC we all love to draw when we first learned about the theory will be useless (most of the time) What we should focus on is if we're in correction, and if so how the heck can we trade the next impulse! Every instrument I look at i will post here. As long as there is structure it will be fine to be posted here!
Education
by adambiers
How To Read Structure (Charts) Tutorial. Charts 1-5By the time you are done with this tutorial, You will understand Structure, Trends, Reversals & much more! This tutorial will teach you how to dig deep into the charts & analyze where price is likely to go next! Reading Structure can be difficult when you first start trading, however most professional traders (if not all) understand structure very well and it is definitely a skill that will dramatically help you on your journey to becoming a professional trader. I tried to make this as clear & simple as possible for anyone to understand but do not worry if this is complicated or a little confusing at first. If you are new to trading, you will benefit by studying and looking over these charts multiple times. I have found that it is also helpful if you grab a piece of paper and a pencil so you can draw the chart that you are looking at. Draw a very simple line chart and mark the highs & lows as shown in the tutorial with support & resistance lines.. You will learn much faster by doing this while training your eyes to identify trends & reversals. After you do this enough, it will start to become 2nd nature & you will spot these crucial moments in structure with a quick glance at the charts. This is the first section of the Reading Structure Tutorial. This section will consist of 6 Charts total: Chart 1- An Easy and effective way to determine trend. Chart 2- Following The Trend with Support & Resistance (Highs & Lows) Chart 3- Continuation of Chart 2 Chart 4- Identifying Possible Trend Reversals Chart 5 - When Structure Doesn't Make Sense, Do Not Trade! Chart 6- Another Reversal I have put a lot of time & effort into this tutorial so feel free to ask any questions you may have.. I will be publishing section 2 of the "How To Read Structure" tutorial next week. Please leave a comment below or message me with your thoughts regarding this lesson. I am happy to continue publishing them if they are helpful to you. We are going to scroll through this chart & follow structure. This is a 60 Minute Chart of GBP-USD. Chart 1 Chart 2, In this Chart we are going to look at the highs & lows shown on Chart 1. Chart 2 Continued, (Continuation of Chart 2.) Chart 3, Identifying Possible Trend Reversals. Chart 4, In depth Analysis of Chart 3. Chart 5, Another Example of a trend reversal Section 2 of "How To Read Structure" will be published next week & I will be sure to update this tutorial with the new charts as well as publish a separate idea. Take your time & really study these charts. There is a ton of valuable information in this tutorial & by the time you get through all the sections, you will have a much easier time reading structure. Please be sure to give this tutorial a thumbs up if it was helpful & you would like me to continue posting them. Thanks Traders & I hope you enjoyed the 1st section of this tutorial!
Education
by Alec40
110
AHEAD OF FOMC TRADE + CURRENCY CORRELATION EXPLANATIONHi traders, I recently checked my long trade at EUR/GBP and got an interesting idea. I wanted to share with you not only about the mechanics & reason behind my trade but also about the currency correlation between USD, EUR & GBP that can some-how works in my favor. (Assuming we see some "Weakness" in USD when Market reacted to the Fed statements). The Trade : In this particular trade I'm using a very simple strategy that I developed called S M Fibs, which basically a strategy that is using Structure, MA, and Fibonacci as its combination of rules. I also required a supportive higher time-frame bias (uptrend on daily chart) in order to take this trade. Entry, SL and TP are as seen on the chart. The Currency Correlation : We know guys that USD and EUR overall correlated negatively (similar with the USD and GBP) that means we can expect the price of EUR and GBP to rise if the price of USD is going lower. Now, keep in mind that the level of negative correlation between EUR and USD is higher than the one on GBP and USD, because of that statistically speaking we can expect the EUR to move higher than the GBP when USD move lower. That would be translated into EUR/GBP going up which means helping me to reach my target. So, that's it for today guys. Hope this one's helpful as well as educational. Regards Fedro Christian
Education
by FedroChristian
Thoughts about BAT pattern. Some tips and secrets. Part XIII.Hey, traders. Welcome back to another edition of "thoughts about BAT pattern". Today we'll continue to discuss bat pattern types. We already know about Four types: HSNSP see it here: SNSP see it here: HSFSP see it here: SFSP see it here: These four have two common features. Their CD leg is not interrupted by a retracement more than 0,382AB and their A and B points don't form a double top/bottom. Today we'll take too more types: HSNSI and SFNSI. All the features and notes are drawn on the chart. Here I will only give some statistics. As usual I will first remind the avarage success rate of bats for eurusd, gbpusd and audusd. By success rate I mean the probability of price action to hit 0,382AD BEFORE 1,113XA. It is critical! So, average success rate for bats: On eurusd it is 53,52%, gbpusd – 52,39%, audusd – 51,53%. We have these results if we trade ALL the bats we can find. I’ve been testing HSNSI and HSFSI on M5 TF on 4-year period data and got the following features (I will only talk about eurusd , gbpusd and audusd as examples): Frequency: HSNSI: On eurusd I found 47, on gbpusd – 60 and on audusd – 67. One of the most frequent types) HSFSI: On eurusd I found 42, on gbpusd – 25 and on audusd – 38. Less frequent type. Success rate: HSNSI: On eurusd it is 48,93%, on gbpusd – 55%, on audusd – 47,76%. HSFSI: On eurusd it is 47,61%, on gbpusd – 60%, on audusd – 36,84% As you see this pattern has more than average success rate on gbpusd and less than average success rate on eurusd and on audusd . Trading this type on gbpusd and not trading it on eurusd and on audusd is a way to improve trading. Ok, mates. That is all for today. Next time I will explain SNSI and SFSI. If you find the information interesting – click “thumb-up”. If you don’t want to miss the next edition – subscribe. Hope to see you again.
Education
by Alexander_Nikitin
USD/JPY - 2618 Trade Explained USD/JPY - H1 - 2618 Trade Explained Having had a double top and now approaching a retracement back into the 61.8% Fib level, we can now look for reasons to short the USD. Unlike patterns we can't just place BUY or SELL orders in advanced. Once we have completed the rules of engagement below, we are looking for confluence within a certain area that all coincide. This in the long term will give us a better success rate. Rules Of Engagement 2618 - Double Top - Break below Neckline / Support - 0.618% Fibonacci retracement - Stop loss above double top - Target 1 at 38.2% Fibonacci - Target 2 at 61.8% Fibonacci Good luck.
Education
by UnknownUnicorn180388
15