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Learn Best Price Action Patterns by Accuracy Last year, I shared more than 1300 free signals and forecasts for Gold, Forex, Commodities and Indexes. In my predictions, quite often I relied on classic price action patterns. In this article, I will reveal the win rate of each pattern, the most accurate and the least accurate formations of the last year. Please, note that all the predictions and forecasts that I shared this year are available on TradingView and you can back test any of the setup that I identified this year by your own. Just choose a relevant tag on my TradingView page. Also, some forecasts & signals were based on a combination of multiple patterns. Here is the list of the patterns that I personally trade: 🔘 Double Top or Bottom with Equal Highs The pattern is considered to be valid when the highs or lows of the pattern are equal. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Double Top or Bottom with Lower High/Higher Low or Cup & Handle The pattern is considered to be valid when the second top/bottom of the patterns is lower/higher than the first one. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Head & Shoulders and Inverted Head and Shoulders The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Horizontal Range The pattern is the extension of a classic double top/bottom with at least 3 equal highs/lows. The pattern gives a bearish/bullish signal when its neckline is broken. 🔘 Bullish/Bearish Flag The pattern represents a rising/falling parallel channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Rising/Falling Wedge Pattern The pattern represents a contracting rising/falling channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Rising/Falling Expanding Wedge The pattern represents an expanding rising/falling channel. It gives a bullish/bearish signal when its upper/lower boundary is broken. 🔘 Descending/Ascending Triangle The pattern is the extension of a cup & handle pattern with at least 2 lower highs/lows. The pattern gives a bearish/bullish signal when its neckline is broken. Please, also note that all the patterns that I identified and traded were formed on key horizontal or vertical structures. Remember that the accuracy of any pattern drops dramatically if it is formed beyond key levels. I consider the pattern to be a winning one if after a neckline breakout, it managed to reach the closest horizontal or vertical structure, not invalidating the pattern's highs/lows. For example, if the price violated the high of the cup and handle pattern after its neckline breakout, such a pattern is losing one. If it reached the closest structure without violation of the high, it is a winning pattern. 🔍 Double Top or Bottom with Equal Highs I spotted 85 setups featuring these patterns. Their accuracy is 62%. 🥉 Double Top or Bottom with Lower High/Higher Low or Cup & Handle 96 setups were spotted. The performance turned out to be a little bit higher than a classic double top/bottom with 65% of the setups hitting the target. 🔍 Head & Shoulders and Inverted Head and Shoulders 58 formations spotted this year. Average win rate is 64% 🏆 Horizontal Range The most accurate pattern of this year. More than 148 patterns were spotted and 74% among them gave accurate signal. 🔍 Bullish/Bearish Flag 38 setups identified this year. The accuracy of the pattern is 57% Rising/Falling Wedge The pattern turned out to be a little bit more accurate. Among 62 formations, 59% end up being profitable. 👎 Rising/Falling Expanding Wedge The worst pattern of this year. I recognized 24 patterns and their accuracy was just 51%. 🥈 Descending/Ascending Triangle 64 patterns were identified. The win rate of the pattern is 66%. The most important conclusion that we can make analyzing the performance of these patterns is that they all have an accuracy above 50%. If you properly combine these patterns with some other technical or fundamental tools, the accuracy of the setup will increase dramatically. Good luck in your trading! ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
27
9 Essential TIPS For Newbie Traders (Learn from my Mistakes!) In the today's article, I will reveal trading secrets I wish I knew when I started trading. 1️⃣ Forget about becoming a pro quickly Most of the traders believe, that you can learn how to trade easily and that it takes a very short period of time in order to master a profitable trading strategy. The truth is, however, that trading is a long journey. I spent more than 3 years, trying different strategies and looking for a profitable technique to trade. Once I found that, it took more than a year to polish a trading strategy and to learn how to apply that properly. Be prepared to spend YEARS before you find a way to trade profitably. 2️⃣ Focus on One Strategy While you are learning how to trade you will try different techniques, tools and strategies. And the thing is that newbies are trying multiple things simultaneously. The more strategies you try at once, the more setups you have on your chart. The more setups you have on your chart, the more complex and difficult is your trading. Remember that in this game, your attention is the key. You should meticulously study each and every trading setup. For that reason, I highly recommend you to focus on one strategy, one approach, one technique. Test it, try it and look for a new one only when you realize that it doesn't work. Here is the example how the same price chart can provide absolutely different trading opportunities depending on a trading strategy. Price action pattern trader would recognize a lot of a patterns, while indicator based trader could spot absolutely different bullish and bearish signals. Now, try to imagine how hard it would be to follow both strategies simultaneously. 3️⃣ Start with small capital that you can afford to lose You will lose your first trading deposit and, probably, the second one and potentially the third one as well. Losses are the only way to learn real trading. While you are on a demo account, you feel like a king, but once you start risking your savings, the perspective completely changes. For that reason, make sure that you trade with an account that you can afford to lose. The fact of blowing such an account should be unpleasant, but that should not affect your daily life. 4️⃣ Use stop loss I am doing trading coaching for more than 4 years. What pisses me off is that the main reason of the substantial losses of my mentees is the absence of stop loss. Why can it be if naturally everyone: from your broker to Instagram trading gurus repeat that day after day. Set stop loss, know in advance how much you risk per trade, and know the exact level on a price chart where you become wrong. Imagine what could be your loss, if you shorted USDJPY and hold the trade while the market kept going against you. 5️⃣ Forget about getting rich quick That is the iconic fallacy. I believe that around 90% of people who come in this game want to get rich quick, want easy money. And no surprise, when I share a trading setup on TradingView, and it loses I receive dozens of messages that I am a scammer. People truly believe that professional trading implies 100% win rate and quick and easy money. The truth is, traders, that trading is a very tough game. And with a good trading strategy, you have just a little statistical edge that will give you the profits that would slightly overcome your losses. 6️⃣ Train your eyes Professional trading implies pattern recognition: it can be some technical indicators pattern, the price action or candlestick formation, etc. Your main goal as a trader is to learn to identify these patterns. Pattern recognition is a hard skill to acquire. You should spend dozens of hours in front of the screen in order to train your eyes to identify certain patterns. Here is how many patterns you would spot on GBPUSD chart, paying close attention. 7️⃣ Track and analyze your trades Study all the trades that you take, especially the losing ones. Look for mistakes, look for the reasons why a certain setup played out and why a certain one didn't. Journal your trades and make notes. 8️⃣ Don't use technical indicators Newbies believe that technical indicators should do the work for them. They are constantly looking for one or a bunch that will accurately show where the market will go. However, I always say to my mentees that technical indicators make the chart messy and distract. If you just started trading, focus on a naked chart, learn to analyze the market trend, key levels, classic price action patterns. Learn to make accurate predictions relying on a price chart alone. Only then add some technical indicators on your chart. They won't do the work for you, but will help you to slightly increase the accuracy of a certain setup. Above is the classic chart of newbie trader. A lot of indicators and a complete mess The same chart would look much better without technical indicators. 9️⃣ Find a Mentor There are hundreds of trading mentors. Find the one with a trading style that you like. Follow him, learn from his trading experience, listen to his trading recommendations. 9 years ago I found a guy, his name was Jason. I really liked his free teachings, and they were meaningful to me. I decided to purchase his premium coaching program. It was 200$ monthly - a huge amount of money for me at that time. However, with his knowledge I saved a lot, I learned a lot of profitable techniques and tricks that helped me to become a professional forex trader. Of course, this list could be much bigger. The more I think about different subjects in trading, the more important tips come to my mind. However, I believe that the tips above are essential and I truly wish I knew all that before I started. I hope that info will help you in your trading journey! Good luck to you. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Trading on Holidays: Liquidity and Spreads When trading forex, it's essential to check spreads, especially during holidays. Trading forex during holidays can be a bit more challenging due to reduced liquidity in the market. Liquidity refers to the ease with which assets can be bought or sold without causing a significant change in price. During holidays, liquidity can be lower as many traders and financial institutions take time off, leading to fewer participants in the market. Lower liquidity can directly impact the spread, which is the difference between the bid and ask price of a currency pair. In times of reduced liquidity, spreads tend to widen, meaning the difference between the buying and selling price of a currency pair increases. This can lead to higher trading costs for traders, as wider spreads require a larger price movement in the underlying asset before a trade becomes profitable. It's essential for traders to be aware of these potential spread increases during holidays to avoid unexpected trading costs. Additionally, wider spreads can also lead to slippage , where a trade is executed at a different price than expected. This can further impact trading results, especially during fast-moving markets with low liquidity. Therefore, checking spreads during holidays is crucial for forex traders to anticipate potential increases in trading costs and adjust their trading strategies accordingly. On TradingView, you can check the spreads in the top left corner. There you can find bid, ask prices and the spread between them. It's important to factor in the impact of wider spreads on profitability and risk management when trading during these periods. By staying informed about spread changes during holidays, traders can make more informed decisions and better navigate the challenges of lower liquidity in the forex market. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
4
Trading in December. Everything You Need to Know Because of the coming holidays, you are probably wondering should you trade in December at all and if yes, when should you stop and resume your trading. In this article, I will share with you how I trade in December. First, let me briefly explain to you how holidays, especially Christmas and New Year, affect the financial markets. In many countries, Christmas and New Year's Day are official banking holidays. 🗓 In Europe, for example, December 24th, 25th, 26th and 31st are official banking holidays. In the UK, the markets are officially closed December 25th and 26th. While December 25th is the official banking holiday in the US. When I trade I stick to the following rule: when there is a banking holiday in US, UK or EU I don't place any trade in that exact day. However, with winter holidays it is a bit different. I always skip the entire Christmas week - from 25th to 30th of December , because even though many markets remain opened, they are hardly moving and very slow. You should also be very careful, trading the third week of December. Till Wednesday, I trade in a normal schedule. The presence of various important fundamentals in the economic calendar (especially the US ones), indicates potential volatility and nice movements on the markets. With many years of experience, I noticed that trading volumes start falling since Thursday. And on Friday in many countries there are early bank closes or banking holidays like in New Zealand. So my advice is, close all your trades on Wednesday 20th in the middle of NY session and stop trading. 📝 Here is the plan: we trade in a normal schedule the first half of December and then all the trades are closed, and we are enjoying holidays. And when should you resume trading? Again, here is a constant debate among traders. My take is to resume trading from the third week of January. ❤️Please, support my work with like, thank you!❤️
COINBASE:BTCUSD
by VasilyTrader
9
Market Manipulations. Bullish Trap (smart money concepts) In the today's article, we will discuss how smart money manipulate the market with a bullish trap. In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand on an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions in a loss. When a short position is closed, it is automatically BOUGHT by the market. Take a look at a key horizontal resistance on AUDCHF. Many times in the past, the market dropped from that. For sellers, it is a perfect area to short from. Bullish violation of the underlined zone make sellers close their position in a loss and attracts buyers. Then the market suddenly starts falling heavily, revealing the presence of smart money. Both the sellers and the buyers lose their money because of the manipulation. There are 2 main reasons why the smart money manipulates the markets in a such a way: 1️⃣ - A big player is seeking to close a huge long position When a long position is closed, it is automatically SOLD to the market. In order to sell a huge position, smart money needs a counterpart who will buy their position. Triggering stop losses of sellers and creating a false demand, smart money sell their position partially to the crowd. 2️⃣ - A big player wants to open a huge short position But why the smart money can't just close their long position or open short without a manipulation? A big sell order placed by the institutional trader, closing their long position, can have an impact on the price of the asset. If the sell order is large enough, it can push the price downward as sellers outnumber buyers. Smart money are trying to balance the supply and demand on the market, hiding their presence. It is quite complicated for the newbies and even for experienced traders to recognize a bullish trap. One of the efficient ways is to apply multiple time frame analysis and price action. Remember, that most of the time bullish traps occur on key horizontal or vertical resistances. After you see a breakout, analyze lower time frames. Quite often, after a breakout, the market starts ranging. After a breakout of a key daily resistance, gold started to consolidate within a narrow range on an hourly time frame. Bearish breakout of the support of the range will indicate a strength of the sellers and a highly probable bullish trap. Remember, that you can not spot all the traps, and occasionally you will be fooled by smart money. However, with experience, you will learn to recognize common bullish traps. ❤️Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
3
Essential Tips for Newbie Day Traders: Forex and Gold Trading Entering the world of day trading can be both exciting and daunting, especially for those who are new to the game. This article aims to provide simple yet valuable recommendations for beginner day traders specifically focusing on forex and gold trading. 💼💰🚀 1. Educate Yourself: Before diving into day trading, it is crucial to understand the intricacies of the forex and gold markets. Take the time to learn about the basic terminology, technical analysis, fundamental analysis, and different trading strategies. Knowledge is your best weapon in this realm. 📚✍️📈 Start by reading books, attending webinars or courses, or even joining online trading communities to gain insight into successful day trading techniques. 2. Practice with a Demo Account: To avoid unnecessary losses, it is highly recommended to practice trading using a demo account. This allows you to gain hands-on experience without the risk of losing real money. Take the time to experiment with different strategies and understand how the market works. 📊📝💡 Tradingview paper trading offers demo accounts where you can simulate real trading scenarios and test your skills. 3. Develop a Trading Plan: A well-defined trading plan is essential for any day trader. Specify your goals, risk tolerance, and trading style. Determine the maximum amount you are willing to risk per trade and set realistic profit targets. Stick to your plan and avoid impulsive decisions. 📝🎯💼 Example: Decide on a risk-to-reward ratio, such as 1:2, which means you are willing to risk $1 to potentially earn $2, and only take trades that meet this criteria. 4. Manage Your Risks: Risk management is a crucial aspect of day trading. Never risk more than you can afford to lose and always set stop-loss orders to limit potential losses. It is important to maintain a disciplined approach to preserve your capital. 💪💸📉 Example: Let's say you have $10,000 as your trading capital. Set a maximum loss limit per trade, such as $200, and ensure your stop-loss order reflects this limit. 5. Keep Up with Market News: Stay informed about global events, economic indicators, and market news that can impact the forex and gold markets. Develop a routine of reading relevant financial news and reports to stay ahead of market trends. 🌍📰💼 Important events like central bank announcements, political developments, or changes in commodity prices can significantly affect currency and gold prices. Tradingview nicely displays the coming news on the horizontal scale of a price shart. Just click on a circle and you will see the coming related events. In conclusion, starting out as a newbie day trader in the forex and gold markets requires a combination of knowledge, practice, discipline, and risk management. By following these simple recommendations, you will be better equipped to navigate the markets and enhance your chances of success in day trading. 💪📊✨
Education
by AnabelSignals
1
Unlocking Margin Trading: Your Guide to Trading Basics 📊🔓💡 Margin trading stands as a fundamental concept in the world of trading, offering opportunities to amplify potential gains but also carrying increased risk. This article is a comprehensive guide to understanding the basics of margin trading, exploring its mechanics, implications, and the vital role it plays in financial markets. Understanding Margin Trading Margin trading involves leveraging borrowed funds from a broker to increase trading position sizes, allowing traders to control larger positions than their initial capital. Increased Buying Power: Risks of Margin Calls: Margin trading unlocks opportunities for increased exposure in the financial markets but demands a thorough understanding of risks and prudent risk management strategies. This article serves as a foundational guide to mastering this critical aspect of trading. 📊🔓💡 Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
2
Learn What is PULLBACK and WHY It is Important For TRADING In the today's post, we will discuss the essential element of price action trading - a pullback. There are two types of a price action leg of a move: impulse leg and pullback. Impulse leg is a strong bullish/bearish movement that determines the market sentiment and trend. While a pullback is the movement WITHIN the impulse. The impulse leg has the level of its high and the level of its low. If the impulse leg is bearish, a pullback initiates from its low and should complete strictly BELOW its high. If the impulse leg is bullish, a pullback movement starts from its high and should end ABOVE its low. Simply put, a pullback is a correctional movement within the impulse. It occurs when the market becomes overbought/oversold after a strong movement in a bullish/bearish trend. Here is the example of pullback on EURJPY pair. The market is trading in a strong bullish trend. After a completion of each bullish impulse, the market retraces and completes the correctional movements strictly within the ranges of the impulses. Here are 3 main reasons why pullbacks are important: 1. Trend confirmation If the price keeps forming pullbacks after bullish impulses, it confirms that the market is in a bullish bearish trend. While, a formation of pullbacks after bearish legs confirms that the market is trading in a downtrend. Here is the example how bearish impulses and pullbacks confirm a healthy bearish trend on WTI Crude Oil. 2. Entry points Pullbacks provide safe entry points for perfect trend-following opportunities. Traders can look for pullbacks to key support/resistances, trend lines, moving averages or fibonacci levels, etc. for shorting/buying the market. Take a look how a simple rising trend line could be applied for trend-following trading on EURNZD. 3. Risk management By waiting for a pullback, traders can get better reward to risk ratio for their trades as they can set tighter stop loss and bigger take profit. Take a look at these 2 trades on Bitcoin. On the left, a trader took a trade immediately after a breakout, while on the right, one opened a trade on a pullback. Patience gave a pullback trader much better reward to risk ration with the same target and take profit level as a breakout trader. Pullback is a temporary correction that often occurs after a significant movement. Remember that pullbacks do not guarantee the trend continuation and can easily turn into reversal moves. However, a combination of pullback and other technical tools and techniques can provide great trading opportunities. Please, let me know if you have any questions! Also, please, support this post with like and comment! Thank you for reading!
OANDA:XAUUSDEducation
by VasilyTrader
32
Learn 2 Essential Elements of Trading In the today's post, we will discuss how trading is structured , and I will share with you its 2 key milestones. Trading with its nuances and complexities can be explained as the interconnections of two processes: trading rules creation and trading rules following. 1️⃣ With the trading rules, you define what you will trade and how exactly, classifying your entry and exist conditions, risk and trade management rules. Such a set of consistent trading rules compose a trading strategy. For example, you can have a following trading plan: you trade only gold, you analyze the market with technical analysis, you buy from a key support and sell from a key resistance on a daily, your entry confirmation is a formation of a reversal candlestick pattern. You set stop loss above the high/low of the pattern, and your target is the closest support/resistance level. Here is how the trading setup would look like. In the charts above, all the conditions for the trade are met, and the market nicely reached the take profit. 2️⃣ Trading strategy development is a very simple process. You can find hundreds of different ones on the internet and start using one immediately. The main obstacle comes, however, with Following Trading Rules. Following the rules is our second key milestone. It defines your ability to stay disciplined and to stick to your trading plan. It implies the control of emotions, patience and avoidance of rationalization. Once you open a trade, following your rules, challenges are just beginning. Imagine how happy you would feel yourself, seeing how nicely gold is moving to your target after position opening. And how your mood would change, once the price quickly returns to your entry. Watching how your profits evaporate and how the initially winning position turns into a losing one, emotions will constantly intervene. In such situations, many traders break their rules, they start adjusting tp or stop loss or just close the trading, not being able to keep holding. The ability to follow your system is a very hard skill to acquire. It requires many years of practicing. So if you believe that a good trading strategy is what you need to make money, please, realize the fact that even the best trading strategy in the world will lose without consistency and discipline. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
Trading Secrets Revealed: Mindset Shift from Beginner to Expert In the today's post, we will discuss the evolution of a mindset of a trader as he matures in trading. ✔️Beginner For some unknown reasons, beginners assume that a couple of educational videos and books about trading is more than enough to start trading successfully. They believe that they got a comprehensive knowledge and that very few things remain to learn. They start trading, but quickly realize that their knowledge is not enough to make even small gains. ✔️COMPETENT After practicing a couple of years, traders come to the conclusion that they know everything in that field. That they learned, tested and tried all concepts and techniques that are available. They consider themselves to be the experts in the field BUT for some unknown reasons, these traders still are not able to trade profitably. ✔️EXPERT After many years of learning, training and practicing, eyes finally open. Traders realize how limited is their knowledge and how much more there is to learn. While they already have the skills to trade in profits, they understand now that even the entire life is not enough to learn all the subtleties of trading. And here is a little lifehack for you: if you are a beginner, embrace a mindset of an expert. Start from realizing how little you actually know and how much more there is to know, that will help you a lot in your trading journey.
OANDA:XAUUSDEducation
by VasilyTrader
5
Learn 6 Common Beginner Trading Mistakes In the today's post, we will discuss very common beginner's mistakes in trading that you should avoid. 1. No trading plan 📝 That is certainly the TOP 1 mistake. I don't know why it happens but 99% of newbies assume that they don't need a trading plan. It is more than enough for them to watch a couple of educational videos, read some books about trading and Voilà when a good setup appears they can easily recognize and trade it without a plan. Guys, I guarantee you that you will blow your trading account in maximum 2 months if you keep thinking like that. Trading plan is the essential part of every trading approach, so build one and follow that strictly. 2. Overtrading 💱 That mistake comes from a common newbies' misconception: they think that in order to make money in trading, they should trade a lot. The more they trade, the higher are the potential gains. Same reasoning appears when they choose a signal service: the more trades a signal provider shares, the better his signals are supposed to be. However, the truth is that good trades are very rare and your goal as a trader is to recognize and trade only the best setups. While the majority of the trading opportunities are risky and not profitable. 3. Emotional trading 😤 There are 2 ways to make a trading decision: to make it objectively following the rules of your trading plan or to follow the emotions. The second option is the main pick of the newbies. The intuition, fear, desire are their main drivers. And such an approach is of course doomed to a failure. And we will discuss the emotional trading in details in the next 2 sections. 4. Having no patience ⏳ Patience always pays. That is the trader's anthem. However, in practice, it is extremely hard to keep holding the trade that refuses to reach the target, that comes closer and closer to a stop loss level, that stuck around the entry level. Once we are in a trade, we want the price to go directly to our goal without any delay. And the more we wait, the harder it is to keep waiting. The impatience makes traders close their trades preliminary, missing good profits. 5. Greed 🤑 Greed is your main and worst enemy in this game. It will pursue you no matter how experienced you are. The desire to get maximum from every move, to not miss any pip of profit, will be your permanent obstacle. Greed will also pursue you after you close the profitable trades. No matter how much you win, how many good winning trades you catch in a row, you always want more. And that sense main lead you to making irrational, bad trading decision. 6. Big Risks 🛑 Why to calculate lot size for the trade? Why even bother about risk management? These are the typical thoughts of the newbies. Newbie traders completely underestimate the risks involved in trading and for that reason they are risking big. I heard so many times these stories, when a trading deposit of a trader is wiped out with a one single bad trade. Never ever risk big, especially if you just started. Start with a very conservative approach and risk a tiny little portion of your trading account per trade. Of course there are a lot more mistakes to discuss. However, the ones that I listed above at the most common and I am kindly recommending you to fix them before you start trading with a substantial amount of money. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
8
Learn the KEY PRINCIPLES of Technical Analysis In the today's article, we will discuss the absolute basics of trading - 3 key principles of technical analysis. 1️⃣History Repeats History tends to repeat itself in the Forex market. Certain trends are cyclical and may reemerge in a predictable manner, certain key levels are respected again and again over time. Take a look at the example: Silver perfectly respected a historical horizontal resistance in 2011 that was respected in 1980 already. Moreover, the price action before and after the tests of the underlined zone were absolutely identical. 2️⃣Priced In All relevant information about a currency pair: economical and political events, rumors, and facts; is already reflected in a price. When the FED increased the rate 26th of July by 25 bp, EURUSD bounced instead of falling. Before the rate hike, the market was going down on EXPECTATIONS of a rate hike. The release of the news was already price in. 3️⃣Pattern DO Work Some specific price models can be applied for predicting the future price movements. Technicians strongly believe that certain formations - being applied and interpreted properly, can give the edge on the market. Depending on the trading style, different categories of patterns exist: harmonic patterns, price action patterns, wave patterns, candlestick patterns... Above, I have listed various price action patterns that are applied by many traders and investors as the main tool for analyzing the financial markets. If you believe in these 3 principles , you are an inborn technician! Study technical analysis and learn to apply these principles to make money in trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
8
Improve Your Trading | The Ultimate CHECKLIST For Your Trades If you are looking for a way to increase the accuracy of your trades, I prepared for you a simple yet powerful checklist that you can apply to validate your trades. ✔️ - The trades fit my trading plan When you are planning to open a trade, make sure that it is strictly based on your rules and your entry reasons match your trading plan. For example, imagine you found some good reasons to buy USDJPY pair, and you decide to open a long trade. However, checking your trading plan, you have an important rule there - the market should strictly lie on a key level. The current market conditions do not fit your trading plan, so you skip that trade. ✔️ - The trade is in the direction with the trend That condition is mainly addressed to the newbie traders. Trading against the trend is much more complicated and riskier than trend-following trading, for that reason, I always recommend my students sticking with the trend. Even though USDCHF formed a cute double bottom pattern after a strong bearish trend, and it is appealing to buy the oversold market, it is better to skip that trade because it is the position against the current trend. ✔️ - The trade has stop loss and target level Know in advance where will be your goal for the trade and where you will close the position in a loss. If you think that it is a good idea to buy gold now, but you have no clue how far it will go and where can be the target, do not take such a trade. You should know your tp/sl before you open the trade. ✔️ - The trade has a good risk to reward ratio Planning the trade, your potential reward should outweigh the potential risks. And of course, there are always the speculations about the optimal risk to reward ration, however, try to have at least 1.3 R/R ratio. Planning a long trade on EURNZD with a safe stop loss being below the current support and target - the local high, you can see that you get a negative r/r ratio, meaning that the potential risk is bigger than the potential reward. Such a trade is better to skip. ✔️ - I am ok with losing this trade if the market goes against me Remember that even the best trading setups may occasionally fail. You should always be prepared for losses, and always keep in mind that 100% winning setups do not exist. If you are not ready to lose, do not even open the position then. ✔️ - There are no important news events ahead That rule is again primarily addressed to newbies because ahead and during the important news releases we have sudden volatility spikes. Planning the trade, check the economic calendar, filtering top important news. If important fundamentals are expected in the coming hours, it's better to wait until the news release first. Taking a long trade on Gold, you should check the fundamentals first. Only after you confirm, that there are no fundamentals coming soon, you can open the position. What I like about that checklist is that it is very simple, but you can use it whether you are a complete newbie or an experienced trader. Try it and let me know if it helps you to improve your trading performance. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Learn 4 Proven Methods of Applying Moving Average Indicator Hey traders, The moving average is one of the most popular technical indicators. It is applied in stocks/forex/crypto trading and proved its high level of efficiency. There are hundreds of trading strategies based on MA. In this post, we will discuss the 4 most popular ways to apply the moving average. 1️⃣The first method is applied to identify the market trend. While the price keeps trading above the MA, one considers the trend to be bullish and looks for buying opportunities. Once the price starts trading below the MA, the trend is considered to be bearish and a trader is looking for shorting opportunities. In the example above, Moving Average is applied for showing the identification of the market trend. Its upward climb signifies that the market is trading in a strong bullish trend. 2️⃣The second method applies the combination of 2 MA's: preferably a long-term one and a short-term one. The point is that once a short-term moving average crosses above a long-term MA, with high probability, it signifies the initiation of a bullish trend. Alternatively, a crossover of short-term and long-term MA's to the downside indicates a start of a bearish trend. In the example above, there are 2 Moving Averages: short term and long term ones. Their cross signifies the bullish trend violation and initiation of a bearish trend. 3️⃣The third method applies MA as a structure. While the moving average is lying above the price, it is considered to be a dynamic resistance. Staying below the price, it serves as a strong dynamic support. Perceiving MA as the structure, one applies that for trade entries. In the picture above, Moving Average is applied as support on GBPJPY and the price starts growing after its test. 4️⃣The fourth method is aimed to track the crossover of the moving average and the price. The idea is that a bullish violation of the MA by the price gives an early signal for a possible trend reversal. While a bearish breakout of the MA by the market indicates a highly probable bullish trend violation. In the example above, the crossover of the moving average and the price is a perfect indicator of coming bullish and bearish movements. Backtest different MA's inputs and learn to apply that for predicting the future direction of the market and for trading it. Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
14
Learn the ONLY REASON Why You Should Try on RETEST!Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed, we can either open a trading position aggressively once the candle closes above/below the structure, or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally, not letting the price return back to the broken structure. Take a look at that triangle pattern on Bitcoin. The price broke its support BUT did not retest it, so trading only the retest, the opportunity would be missed. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
7
Real Example of a TRADING PLAN Revealed Hey traders, In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment. 1️⃣ - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels. Here on WTI Crude Oil I have analyzed key levels and came to the conclusion that the market is trading in sideways. 2️⃣ - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand). You should patiently wait until one of these zones is tested. Back to our example. The support that the market is approaching is a safe area to buy from. 3️⃣ - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy. In our example, the confirmation pattern - the ascending triangle is spotted on lower time frames. 4️⃣ - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level. Trading Oil, the perfect entry point will be on a retest of a broken neckline of a triangle. 5️⃣ - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations. Back to our example - our safe stop loss will be below the lows. 6️⃣ - Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene. Returning to our trade, the Perfect target level is based on a closes strong resistance. Only then a trading position is opened. No matter what will be the end result of your trade, you should assess it: 1️⃣- You should journal the trade outlining its end result, trading instrument, and your entry reason. 2️⃣ - Note any peculiar thing about this trade that you noticed. 3️⃣ - Record your gain/loss percentage. 4️⃣ - Identify whether any mistake was made and if so, learn from that. Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated. Do not underestimate its importance and treat it as the main element of your trading routine. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
8
Learn The Market Volatility | The Double-Edged Sword Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring? In this educational article, we will discuss the market volatility, how is it measured and how can it be applied for making smart trading and investing decisions. 📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time. High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily. High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains. On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest. The chart on the left is the perfect example of a volatile market. While the chart on the right is a low volatility market. 📰 The main causes of volatility are economic and geopolitical events. Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements. On the other hand, the absence of the news and the relative stability are the main sources of a low volatility. Here is the example, how the Covid pandemic affected GBPUSD pair. The market was falling in a very rapid face in untypical manner, being driven by the panic and fear. But how the newbie trader can measure the volatility of the market? The main stream way is to apply ATR indicator, but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated. 📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks. The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles. Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset. Take a look at a price action and candlesticks on Bitcoin. The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility. 🛑 For traders who just started their trading journey, high volatility is the red flag. Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level. Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves. The best solution is to look for the market where the volatility is average, where the market moves but on a reasonable scale. Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
What Should Be Inside Your Trading Plan Find out why you should have a trade plan—and the five elements that may help you put it to work successfully. Element 1: Your time horizon How long do you plan to hold a position? This will depend on your trading strategy. Generally, traders fit into one of three categories: Single-session traders are very active and look to gain from small price variations over very short time periods (minutes or hours) throughout the trading day. Swing traders target trades that can be completed in a few days to a few weeks. Position traders seek larger gains and recognize that it often takes longer than a few weeks to achieve them. Element 2: Your entry strategy Look for entry signals—for instance, divergences from trend lines and support levels—to help you place your trades. The signals you employ and the orders you use to make good on them hinge on your trading style and preferences. Element 3: Your exit plan When it comes to an exit strategy, plan for two types of trades: those that go in your favor and those that don’t. You might be tempted to let favorable trades run, but don’t ignore opportunities to take some profits. Element 4: Your position size Trading is risky. A good trade plan establishes ground rules for how much you’re willing to risk on any single trade. Say, for example, you don’t want to risk losing more than 2%–3% of your account on a single trade. You could consider exercising portion control, or sizing positions, to fit your budget. Element 5: Your trade performance Look over your trading history to calculate your theoretical trade expectancy, meaning your average gain (or loss) per trade. You start by determining the percentage of your trades that have been profitable versus those that haven’t. This is known as your win/loss ratio. ✅LIKE AND COMMENT MY IDEAS✅ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
3
Secret of Success in Trading: Patience, Emotions, Psychology I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regard to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis, totally neglecting trading psychology and risk management. Learning different trading strategies, I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal, I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading, I finally saw a glimmer of hope. Reading a dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗️ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew?
FOREXCOM:XAUUSDEducation
by VasilyTrader
7
Learn Why Most of the Traders Fail The evidence suggests that only a very small proportion of day traders makes money year over year. There are certain patterns which may separate profitable traders from those who ultimately lose money. And indeed, there is one particular mistake that in our experience gets repeated time and time again. What is the single most important mistake that led to traders losing money? Here is a hint – it has to do with how we as humans relate to winning and losing. Our own human psychology makes it difficult to navigate financial markets, which are filled with uncertainty and risk, and as a result the most common mistakes traders make have to do with poor risk management strategies. Traders are often correct on the direction of a market, but where the problem lies is in how much profit is made when they are right versus how much they lose when wrong. Bottom line, traders tend to make less on winning trades than they lose on losing trades. Humans aren’t machines, and working against our natural biases requires effort. Once you have a trading plan that uses a proper reward/risk ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. That will help you to be a consistently profitable trader. ✅LIKE AND COMMENT MY IDEAS✅ Do you like this post? Do you want more articles like that
Education
by ProSignalsFx
11
5 Easy Steps for Beginners to Start Trading in Forex 📝 Being a beginner, it is natural for you to feel overwhelmed when you first start forex trading. But that doesn’t mean that you should shy away from the market. By following the 5 steps listed below, you can start your trading journey in currencies in a smooth and efficient manner. 1. Get to know what drives the market 📈 When it comes to trading in currencies, the first ever step that you would need to make as a beginner is educate yourself about the market. Although the forex market works in a very similar fashion to the stock market, the factors behind the movement of the currencies tend to be different. 2. Choose the right broker 🤝 Selecting the right forex broker is as important as getting to know how to trade in currencies. Not all brokers offer the same level of services or are always reliable. Therefore, it is essential for you to spend some time looking into the various brokers offering forex trading services. An ideal forex broker should have an easy account opening process, a simple trading platform, offer exceptional customer support and have low transaction costs. While evaluating brokers, make sure to look into their downtime frequency. 3. Establish your financial goals and targets💰 The next step is to work on your financial goals and targets. Introspect and ask yourself what you hope to achieve by trading in currencies. Also, before you actually buy and sell currencies, it is a good idea to first determine your financial targets. For instance, you can set a target for each forex trade you make or a target for each day or month of trading. Establishing these goals can make you plan your trades much better by helping you come up with a trading plan, which will ultimately make you a better trader. 4. Practice with demo (paper) trading 📃 Through extensive virtual trading practice sessions, you can quickly get the hang of currency trading and try out new trading techniques and strategies. Since you’re not really trading with real money, you don’t have to worry about losing money on trades. Instead, you can spend some quality time learning the ropes and trying to analyze the trades that you make. This can give you some much-needed perspective on how to tackle forex trading in real-time. 5. Start slow and go easy on your trades🐢 Once you’ve gotten the hang of trading in currencies on demo account, you can slowly move onto the real thing. Now, there are a few things that you should keep in mind. The forex market’s volatility tends to be quite high and can lead to wild swings in the price. Therefore, it is a good idea to start slow by using just a fraction of your total investment amount. Now that you’re aware of the 5 steps that you need to take to start trading in forex, go ahead and begin your journey. Good luck to you! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
Learn How to Improve Your Forex Trading 🔝 Whether you're new to Currency Trading or a seasoned trader, you can always improve your trading skills. Education is fundamental to successful trading. Here are some tips that will help hone your Currency trading skills. ⭐️Plan How You Will Trade You may have heard the adage, "if you fail to plan, you plan to fail." This is particularly true in Forex speculation. Successful traders start with a sound strategy and they stick to it at all times. ⭐️Most traders fail because they make the same mistakes over and over. A diary can help by keeping track of what works for you and what doesn't. Used consistently, a well-kept diary is your best friend. ⭐️Patience Once you know what to expect from your system, have the patience to wait for the price to reach the levels that your system indicates for either the point of entry or exit. If your system indicates an entry at a certain level but the market never reaches it, then move on to the next opportunity. There will always be another trade. ⭐️Discipline Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Sometimes, the price action won't reach your anticipated price point. At this time, you must have the discipline to believe in your system and not to second-guess it. Discipline is also the ability to pull the trigger when your system indicates to do so. This is especially true for stop losses. ⭐️Realistic Expectations Even though the market can sometimes make a much bigger move than you anticipate, being realistic means that you cannot expect to invest $250 in your trading account and make $1,000 each trade. Although there is no such thing as a "safe" trading time frame, a short-term mindset may involve smaller risks if the trader exercises discipline in picking trades. This is also known as the trade-off between risk and reward. Trading is nuanced and requires as much art as science to execute successfully, which means that there is only a profit-making trade or a loss-making trade. Warren Buffet said that there are two rules in trading: Rule 1: Never lose money. Rule 2: Remember Rule 1. Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
Learn The Iceberg Illusion | The Fallacies & Reality We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success. This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’. You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success. We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running. There are no shortcuts. There are no overnight successes. The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed. ✅LIKE AND COMMENT MY IDEAS✅ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9