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Supply_and_demand

Fib Retracement - better/important than most believeFibonacci. introduced by Italian mathematician "father of the Fibonacci sequence" Leonardo Da Pasa (born around A.D. 1170) in 1202 in his book Liber Abaci "book of calculations" which he handwrote as the printing was not yet invented, which also became the first book to be introduced to the Hindu-Arabic numeral system as it was a new way to write numbers and do calculations. Fibonacci in trading. the most important/popular fib tool in the trading/investing community is the Fibonacci Retracement applied from the Fibonacci sequence which is a set of steadily increasing numbers where each number is the sum of the preceding 2 numbers. Fibonacci retracement, is derived based on high and low price/ valley and peak in supply and demand terms. The most important Fibonacci ratios/percentage of the retracement measure is - 23.6%, 38.2%, 50%, 61.8%, 100%, with the ratio/percentage being represented by horizontal lines on the price chart. calculated by : in bull market, high price - (high price-low price) x percentage in bear market, low price + (high price-low price) x percentage Significance of Fib Retracement. these are very important too traders as the indicate significant price levels/areas like : - support and resistance - liquidity pool - using rectangle drawing tool to connect two fib retracement levels together as a zone not a singular ratio level. based on current market conditions and trading criteria. - price targets, exit price (Take Profit) - Stop Loss - stop and limit orders (set and forget for supply and demand traders) Fibonacci retracement also compliments other trading tool and indicators well and can be used by all sorts of traders, from position traders to scalpers. it works best on trending market conditions to identify reversals, corrections, pullbacks continuation moves. important note : - Leonardo did not invent Fibonacci, it was actually used and known to Indian mathematicians since the 6th century. - the 50% is not really a Fibonacci number instead is taken from Dow theory that assets usually retrace half their prior move. put together by : Pako Phutietsile as @currencynerd
OANDA:XAUUSDEducation
by currencynerd
Why did HPE Breakout?As shown on the one-hour chart, in the last trading session, HPE broke out of its usual trading the range being the blue high-volume area on the profile. This is with increased volatility as shown by the indicator and the large top wicks on the rising green candles. Why did this occur? Were traders simply buying anything in the IT sector vaguely related to AI after the NVDA breakout? Does HPE have a role in artificial intelligence? Was this a sympathy play? The Luxalgo Supply / Demand indicator shows supply immediately overhead. The wicks on the last several candles show a defined level. This might be called a " tweezer top " Overall, I see this as an excellent short setup to be played with either short selling or a put option as the retracement seems inevitable.
NYSE:HPEShort
by AwesomeAvani
Alikze »» Yooshi | Breaking dynamic triggerIn time 1W, it is breaking the dynamic trigger and according to the guard it took in the first step, it will have the ability to grow up to the specified supply area. If the area fails, it will have the ability to reach its high supply areas. According to the momentum in the 3rd rising wave, this guard will continue until the initial areas. »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Sincerely.❤️
YLong
by alikze
Buy GBPJPY Channel BreakoutThe GBP/JPY pair on the M30 timeframe presents a potential buying opportunity due to a recent upward breakout from a well-defined bullish channel pattern. This suggests a shift in momentum towards the upside and a higher likelihood of further gains in the coming hours. Key Points: Buy Entry: Consider entering a long position (buying) above the broken resistance level of the channel, ideally around 190.50. This offers an entry point close to the perceived shift in momentum. Target Levels: Initial bullish targets lie at the previous resistance levels within the channel, now acting as potential support zones: 191.25: This represents the first level of resistance within the channel. 191.61: This is a further extension of the upside target, based on the height of the recent price movement before the breakout. Stop-Loss: To manage risk, place a stop-loss order below the broken resistance line of the channel, ideally around 190.25. This helps limit potential losses if the price unexpectedly reverses and breaks back downwards. Thank you.
Long
by KABHI_TA_TRADING
16
Sell USDCAD Channel BreakoutThe USD/CAD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined bearish channel pattern. This suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming hours. Key Points: Sell Entry: Consider entering a short position (selling) below the broken support level of the channel, ideally around 1.3580. This offers an entry point close to the perceived shift in momentum. Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 1.3530: This represents the first level of support within the channel. 1.3511: This is a further extension of the downside target, based on the height of the recent price movement before the breakout. Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the channel, ideally around 1.3590. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards. Thank you
Short
by KABHI_TA_TRADING
19
USD JPY - incoming 1990, then 1987?G'day, Master Key for zones Red = Three Month Blue = Monthly Purple = weekly Pink = Consolidative box example (Daily) Orange = Daily Risk Warning Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence as criteria varies to suit the individual. Below are some of the take aways from the video - please listen again incase any detail is missed. Monthly simply put, look at 1990 and the gap formed in the fresh supply above at 157.XX - 164.XX (1987). not there is a hidden zone within 1986 which can be a final supply zone. Weekly The market has made a double top within the weekly supply, we'll await the confirmation on the daily time frame however. The weekly zone has been built up upon a strong resilience zone from the supply zone (note this is a strong supply zone which dates back to 1990/91) , where multiple rejection weeks have occurred and price has been in an accumulation phase since. Daily High curve created for the daily supply, and now the buyers have created again a high curve, with this time a marked zone where price can pivot to (subject to confirmation), before price can begin its journey back into the supply, after a strong demand zone which can be brought back to. Do you enjoy the setups? Professional analyst with 8+ years experience in the capital markets Focus on technical output not fundamentals Focus on investing for long term positional moves Provide updates where necessary - with new updated ideas tracking the progress. If you like the idea, please leave a like or comment. To all the followers, thank you for your continued support. Thanks, LVPA MMXXIV
by LupaCapital
Trade in a sideways marketMain price pattern of financial instruments So, when we talk about the price of financial stuff, like stocks or crypto, it often moves in specific ranges over different timeframes, right? Whether it's weekly, daily, hourly, or even minute charts, prices tend to hang out in these ranges for a while. Traders call this kind of price movement "consolidation," "range-bound," or simply a "sideways market." In this article, we'll just call it a sideways market or range. When prices are stuck in this sideways action, they can break out with a sudden burst of momentum, kickstarting a trend, or they might just keep bouncing around, forming a new sideways pattern. Let's check out the daily chart of BTCUSDT starting from October 2021. On the chart (see above), we've marked those periods where the price was moving sideways with blue markers. Since October 2021, we've spotted 7 of these sideways patterns. We label the first point of each sideways move as "1". Out of 884 trading days, the price was stuck in this sideways action for 758 days (884 - 72 - 39 - 15), which makes up about 85%. This means that throughout this whole period, you could've been looking at trades from one edge of the sideways range to the other. Based on my estimates, most financial instruments spend more than 75% of their time in this sideways market mode. So, knowing how to trade in sideways markets is a super important skill for traders. And for investors, understanding these sideways moves can really amp up the profitability of their investments by pinpointing better entry and exit points. For example, right now, considering buying BABA stocks might be a good idea because the price is chilling at the bottom of a sideways range on the weekly chart. Example1 Mastering the Skills for Successful Trading in Sideways Market Being able to effectively trade within trading ranges, between their boundaries, requires not only a certain amount of knowledge but also the development of specific skills. Initially, one must grasp the theoretical foundations and then apply them in practice, gradually honing their skills. Let's look at the necessary skills: Skill 1: Understanding and applying the Concept of Time Frame (TF) Interconnection: higher TF, lower TF. Grasping the context of the higher TF in relation to the sideways market TF. Skill 2: Identifying sideways market: determining the absolute and current boundaries of the range, as well as the current direction (vector) of price movement. Skill 3: Recognizing zones of interest for buyers and sellers. Skill 4: Determining the presence of buyers at the lower boundary (bottom protection by buyers) and sellers at the upper boundary (top protection by sellers). Skill 5: Adhering to risk management principles when entering trades (especially crucial for traders). Each of these skills is based on a vast amount of knowledge that needs to be absorbed first and then applied in practice. The journey can be long and sometimes tedious. Is there a way to hack this system and shorten the time it takes to acquire knowledge, develop skills, and start trading? Well, there are options. For example, you can use technical indicators (such as RSI, Bollinger Bands, ATR, etc.) to make buying or selling decisions. Or you could completely bypass the process of acquiring knowledge and skills and rely on signals from Telegram channels or expert opinions. But what will you find there about trading in sideways market (ranges), where the market spends more than 75% of its time? This series of articles is written for those who are ready to take control of their financial destiny, who strive to understand how financial markets work, and who want to master the skills of independent trading and making more informed investment decisions. Here you will find the knowledge and tools to start understanding what is happening in the financial markets and how to profit from it. I don't promise any magic pills or "money" buttons:). So, let's get started. Skill 1: Applying the Concept of Time Frame Interconnection The higher time frame (TF) always takes precedence over the lower one. For instance, if we observe on the daily chart that the market is in a seller's zone (which is determined by Skill 3), then on the hourly chart, we need to analyze the seller's actions (Skill 4) and primarily look for selling opportunities. However, there might be a situation where the seller is inactive, and the price starts to rise due to buyer pressure (in this case, Skill 4 comes into play again). Example2 On the provided chart, areas of seller interest are marked in red, while buyer interest areas are marked in blue. Let's examine the period from March 25th to March 27th, highlighted in yellow on the chart. On the daily TF, we observe sideways movement since December 22, 2023, with the bearish vector (11-12) being relevant. The first target of the bearish vector, 3.119, was reached on March 19, 2024. The second target (2.822) and the third (2.611) remain valid. On March 25th, the price returned to the seller's zone on the daily chart (the red zone with the lower boundary at 3.680). On the hourly chart, on March 25th, the price trend reached the daily seller's zone and formed a range with 7 points. The breakout from this range occurred downwards on March 27th. Therefore, in this range, it was advisable to look for selling opportunities from the upper boundary and riskily consider buying from the lower one. Similarly, you can make investment decisions by analyzing, for example, the weekly and daily TFs. To be continued... P.S. This is indeed an interesting point! Despite the fact that the market spends more than 75% of its time in sideways movement, indicators and strategies specifically designed for trading in this mode have not gained as much popularity as other trading approaches. Even on the internet, including TV and trading Telegram channels, signals or analyses based on identifying sideways movement are very rarely encountered. If you have experience or knowledge about trading methods in sideways markets (including indicators), please share them in the comments!
Education
by AlexeyWolf
Smart Money Concept for 1000Bonk/USDT.P In the dynamic world of cryptocurrency trading, precision and foresight are paramount. Our analysis of 1000Bonk/USDT.P reveals an intriguing opportunity rooted in the Smart Money Concept (SMC), providing a roadmap for potential gains amidst market fluctuations. Over the past day, 1000Bonk/USDT.P has surged to considerable heights, but signs indicate an impending downturn, albeit the timing remains uncertain. Leveraging the principles of SMC, we pinpoint an entry point at 0.024720. This selection aligns strategically with a 4-hour fair value gap (FVG), presenting an opportune moment to enter the market. To mitigate risk, we implement a stop-loss (SL) at 0.023544, positioned 0.8% below the 4-hour FVG. This precautionary measure serves as a safeguard against adverse movements, preserving capital in the event of unexpected market shifts. Our take-profit (TP) strategy is finely tuned to capitalize on market dynamics. We identify a TP level of 0.031182, strategically located at a bearish Order Block (OB). This targeted approach ensures that potential gains are maximized while maintaining a disciplined exit strategy. Furthermore, traders are encouraged to exercise flexibility in managing their positions, with the option to scale out profits or adjust TP levels based on evolving market conditions. By integrating adaptability with strategic analysis, traders can optimize their returns and navigate the complexities of cryptocurrency trading with confidence.
Long
by smarttrader012
1
Sell NZDCHF Rising WedgeThe NZD/CHF pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a rising wedge pattern. This pattern, despite an initial upward angle, is often seen as a bearish reversal signal. Key Points: Rising Wedge Breakout: The price has been trading within a rising wedge pattern characterized by converging upward trendlines. While the initial trend appears bullish due to the rising trendlines, this pattern can often be a bearish reversal signal. The recent break below the lower trendline signifies a potential confirmation of a downtrend continuation. Sell Entry: Consider entering a short position around the current price of 0.5425, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum. Target Levels: The initial bearish target lies at 0.5390, which represents the support level before the wedge formation. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions. Stop-Loss: To manage risk, place a stop-loss order above the broken resistance line of the wedge, ideally around 0.5445. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards. Thank you
Short
by KABHI_TA_TRADING
1