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🔥📉 Falling Wedge Alert on $POLS! Bullish Reversal Brewing?Hey traders! Today, I want to bring your attention to an intriguing chart pattern on $POLS (Polkastarter). Let's dive into the falling wedge pattern and explore the potential for a bullish reversal. 📊💡 Pattern: Falling Wedge 📉🔽 Symbol: $POLS 💰 Overview: A falling wedge is a bullish chart pattern characterized by converging trendlines, with the upper trendline sloping downward and the lower trendline sloping upward. It often signals a potential trend reversal from bearish to bullish. Now, let's analyze the falling wedge pattern on $POLS in more detail. ⚡💹 Key Features of the Falling Wedge on $POLS: Converging Trendlines: Notice how the upper trendline connects lower highs, while the lower trendline connects higher lows. This pattern suggests a potential shift in market sentiment. 📈📉 Decreasing Volatility: Observe the gradual contraction of price range and declining trading volume as the pattern develops. These characteristics may indicate diminishing selling pressure. 📉🔻📈 Breakout Expectations: A falling wedge pattern often precedes a bullish breakout. Traders typically await a decisive move above the upper trendline for confirmation. However, exercise caution and wait for a clear breakout before initiating trades. 🚀📈 Trading Strategy: Entry Point: Consider entering a long position once $POLS breaks above the upper trendline of the falling wedge pattern. This breakout could signal a potential trend reversal and the start of a bullish move. ⬆️💰 Stop-Loss: Place a stop-loss order below the lower trendline to manage risk and protect against potential downside. ⛔️📉 Target Levels: Identify key resistance levels or previous swing highs as profit targets. Adjust your position size and take profits accordingly. 🎯📈 Risk Management: Implement proper risk management techniques, including position sizing, stop-loss orders, and adherence to your trading plan. Always be mindful of the inherent risks involved in trading cryptocurrencies like $POLS. ⚠️💼💡 Disclaimer: Trading cryptocurrencies carries risks, and it is essential to conduct thorough analysis and seek professional advice before making any investment decisions. #FallingWedge #POLS #Cryptocurrency #BullishReversal #TradingStrategy #TechnicalAnalysis #ProfitTargets #RiskManagement In conclusion, the falling wedge pattern identified on $POLS indicates the potential for a bullish reversal. However, exercise patience and wait for a confirmed breakout before making any trading decisions. Stay tuned for further updates on $POLS! 🚀📊 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
PLong
by STP_MrNodeItAll
📉 Falling Wedge Alert on $HBAR! Potential Reversal Opportunity?Hey traders! Check out the falling wedge pattern I identified on CRYPTOCAP:HBAR (Hedera Hashgraph). Is a bullish reversal in the cards? Let's analyze and explore potential profit-taking levels! 📊💡 Pattern: Falling Wedge 📉🔽 Symbol: CRYPTOCAP:HBAR 💰 Overview: A falling wedge pattern on CRYPTOCAP:HBAR suggests a potential trend reversal from bearish to bullish. It forms when converging trendlines indicate decreasing volatility and selling pressure. Now, let's discuss potential profit-taking levels! ⚡💹 Key Features of the Falling Wedge on CRYPTOCAP:HBAR : Converging Trendlines: Upper trendline connects lower highs, while lower trendline connects higher lows, indicating a potential shift in sentiment. 📈📉 Decreasing Volume: Observe declining trading volume as the pattern develops, implying diminishing selling pressure. 📉🔻📈 Breakout Expectations: A bullish breakout from the falling wedge can be anticipated. Traders often await a decisive move above the upper trendline for confirmation. Exercise patience and confirm a clear breakout before executing trades. 🚀📈 Profit-Taking Levels: Take Profit 1: Consider booking partial profits as CRYPTOCAP:HBAR breaks above the upper trendline and reaches the first significant resistance level around $.07. 🎯💰 Take Profit 2: If the bullish momentum continues, look for the next resistance level around $0.10 as a potential profit target. Adjust your position accordingly. 🎯💰 Risk Management: Implement effective risk management techniques to protect your capital. Set appropriate stop-loss orders below the lower trendline to mitigate potential downside risk. Adapt your trading plan as market conditions evolve. ⚠️💼💡 Disclaimer: Trading cryptocurrencies carries risks. Conduct thorough analysis, seek professional advice, and take responsibility for your investment decisions. #FallingWedge #HBAR #Cryptocurrency #TradingOpportunity #TechnicalAnalysis #ProfitTakingLevels #BullishReversal #TradingStrategy In conclusion, the falling wedge pattern on CRYPTOCAP:HBAR indicates the potential for a bullish reversal. Monitor the breakout and adapt your strategy accordingly. Don't forget to implement proper risk management techniques. Good luck! 🚀📊 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
Long
by STP_MrNodeItAll
4
Learn THE BEST Breakout Trading Strategy Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout, assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably, these levels should be spotted on weekly/daily time frames. Here on US100, I executed structure analysis and identified key levels. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. In the picture above, we see a confirmed key level breakout. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. Following our example, the price has retested the broken level. 4️⃣Opening a trade on a retest, one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. In our example, the safest stop loss will be below a local low. Take profit - next key resistance. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for quite a long period of time before it starts acting. Breakout trader must be patient, not allowing his emotions to intervene. Returning to our example, after some time, the market easily reached the TP level and went much higher. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Here is the example of a breakout trade that I took following the strategy: I spotted a confirmed breakout of a key resistance. The price formed a high momentum bullish candle and closed above the structure. Long position was opened on a retest. Target was based on the closest horizontal resistance. Stop loss was placed below the closest horizontal support. The market quickly reached the target. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
12
Understanding and Utilizing the RSI Indicator in Forex and Gold When it comes to trading gold and forex, technical analysis plays a vital role in predicting market trends and making informed trading decisions. One of the most popular technical indicators used by traders is the Relative Strength Index (RSI). The RSI indicator is a momentum oscillator that measures the magnitude and velocity of price movements in a currency pair or gold. It oscillates between 0 to 100 and shows whether a currency pair or gold is overbought or oversold. Here are some tips on how to use the RSI indicator in gold and forex trading: 1. Identify overbought and oversold levels: RSI values above 70 indicate overbought levels, while values below 30 indicate oversold levels. 2. Use divergence for trend reversal: Divergence forms when the price and RSI indicator move in opposite directions. It can signal a potential trend reversal. 3. Combine with other technical indicators: RSI can be used in conjunction with other technical indicators, such as moving averages, to confirm signals. 4. Look for RSI support and resistance levels: RSI support and resistance levels can give traders insights into potential price levels where a reversal might occur. 5. Use RSI for trade entry and exit: Traders may use RSI to identify entry and exit points for trades. For example, buying a currency pair when its RSI is below 30 and selling it when it rises above 70. 6. Remember to adjust for volatility: High volatility can lead to false RSI signals. Traders must adjust their RSI settings to accommodate increased volatility. In conclusion, the RSI indicator is a widely used tool in technical analysis and can provide valuable insights into gold and forex trading. Remember to use it in conjunction with other tools and indicators and adjust your settings based on market volatility. Please, like this post and subscribe to our tradingview page!👍
BITSTAMP:BTCUSDEducation
by EliteTradingSignals
8
When to FEEL THRILL when Trading - It may surprise you!First let me tell you. NO you should not feel thrill when you take a profit. NO you should not feel thrill when you are on a winning streak. NO you should not feel thrill after a day, week or month of upside. But I’m not going to be a wet blanket. As a trader, including me, there are times to feel thrill. Trading is a process, it’s a lifestyle, it’s a game, it’s your control of your financial future. So let’s explore the times you should feel thrill. #1: Analyse the markets A major part of trading is assessing the current state of the markets and identifying potential opportunities. This involves creating your strategy, finding the indicators that work best and identifying the different systems (chart patterns, trend lines, Smart Money Concepts) etc… This process is super exciting part on the journey to becoming a trader. #2: Optimise your strategies Creating a strategy is one thing. But optimising and maximising your system is an ongoing thing. It’s crucial to continuously fine-tune your strategies and adapt to the ever-changing market conditions. When you identify areas for improvement and make changes that lead to better performance, the thrill of knowing that you’re on the path to success can be awesome. #3: Search for high probability trades One of the keys to success in trading is finding high probability trades. It’s these trades that will offer a favorable risk-reward ratio and a high chance of success (regardless whether they win or lose). The hunt for these opportunities is always fun and it’s almost like going on a daily treasure hunt. And spotting the highest probability trades, require a deep understanding of the markets and the ability to spot subtle patterns that others might miss. When you uncover a high probability trade and execute it successfully, the feeling of accomplishment is also a great feel. #4: Reading Fundamentals Sure your strategy might not comprise of fundamentals or news. But still learning about the markets, companies, indices and other micro and macro aspects, is interesting. A solid grasp of fundamental analysis is essential for any serious trader. This involves assessing the financial health of companies, industries, and economies to identify why markets move the way they do. When you can successfully combine technical and fundamental analysis to make informed decisions, the thrill of knowing you have an edge in the market is undeniable. #5: Monitor your results and stats As a trading boss… You need to track, analyse and assess your trading performance. You don’t get more power and thrill as a trader, when you have control of your financial markets. When you see your strategies paying off and your account balance growing, the thrill of your hard work and dedication materializing into tangible results is incredibly rewarding. Conversely, it’s also thrilling when you analyse your losses where you can gain valuable learning experiences. And this will help provide insights into areas for improvement and will motivate you to refine your approach. #6: Find new markets to trade Do you think I was looking at AI, VR, Metaverse type companies to trade 10 years ago? Nope! These markets weren’t in fruition with trading as they are today. So as a trader, this is always an exciting and thrilling venture with trading. To explore, adapt and add on new markets into your watch list. When you add and enter these new markets to your strategy, this can expose you to a whole new set of opportunities and challenges. And this will help broaden your horizons and deepen your understanding of the financial markets. So now you know when to embrace thrill as a trader. Use them to fuel and propel you toward achieving your goals. When else do you feel thrill?
JSE:J200Education
by Timonrosso
Chart Patterns: Mastering Price Patterns for Successful TradesChart patterns are powerful tools that allow traders to anticipate market movements and make informed trading decisions. This trading idea focuses on mastering various price patterns to enhance trading proficiency. By gaining expertise in recognizing and interpreting chart patterns, traders can identify high-probability trade setups, optimize entry and exit points, and increase their chances of success in the market. Objective: The objective of this trading idea is to equip traders with a comprehensive understanding of different price patterns and their significance in technical analysis. By mastering these patterns, traders can effectively analyze market trends, identify potential reversals or continuations, and make well-timed trading decisions. Key Components: Introduction to Price Patterns: Begin by understanding the fundamentals of price patterns and their importance in technical analysis. Learn about the types of patterns, including reversal patterns (such as head and shoulders, double tops/bottoms) and continuation patterns (such as flags, triangles, and rectangles). Gain insights into the characteristics and significance of each pattern in predicting future price movements. Reversal Patterns: Dive into studying popular reversal patterns that indicate potential trend reversals. Explore patterns such as head and shoulders, double tops/bottoms, and triple tops/bottoms. Understand how to identify these patterns, confirm their validity through volume analysis, and generate entry or exit signals. Analyze real-life examples to strengthen your pattern recognition skills. Continuation Patterns: Explore continuation patterns that suggest the resumption of existing trends. Study patterns like flags, triangles (ascending, descending, symmetrical), rectangles, and wedges. Learn how to interpret these patterns to validate trend direction, anticipate breakout or breakdown levels, and improve trade entries. Understand the importance of volume and other technical indicators in confirming continuation patterns. Complex Patterns: Delve into more advanced and complex patterns, such as the cup and handle, head and shoulders inverse, and ascending/descending triangles with multiple touches. Gain insights into the nuances of these patterns, their variations, and their potential impact on price movements. Understand how to incorporate these patterns into your trading strategies for enhanced accuracy. Pattern Confirmation: Learn techniques to confirm the validity of price patterns and reduce false signals. Explore additional tools and indicators such as trendlines, moving averages, Fibonacci retracements, and oscillators to validate and reinforce pattern signals. Understand the importance of multiple confirmations for higher-probability trades. Trade Management and Risk Control: Develop effective trade management techniques to maximize profits and minimize risks when trading price patterns. Learn how to set appropriate stop-loss levels based on pattern structures and support/resistance levels. Understand position sizing and risk-reward ratios to optimize risk management. Explore techniques for trailing stops and scaling out of positions to maximize gains. Backtesting and Paper Trading: Apply your knowledge by backtesting price patterns using historical market data. Utilize paper trading or demo accounts to practice trading based on your analysis without risking real capital. Evaluate the performance of your pattern-based strategies, identify strengths and weaknesses, and refine your trading approach. By mastering price patterns and effectively utilizing them in your trading approach, you can significantly improve your trading outcomes. This trading idea aims to provide you with the knowledge and skills necessary to navigate the markets with greater precision, identify high-probability trade setups, and achieve consistent trading success. Note: Trading carries a level of risk, and past performance is not indicative of future results. It is important to conduct thorough research, practice proper risk management, and consider personal circumstances before making any trading decisions.
NASDAQ:NVDAEducation
by LuminoAlgo
Enhance Your Trading Strategy with MACD and RSI ConvergenceIntroduction: Welcome, fellow traders! Today, I'm excited to present a step-by-step tutorial on how to enhance your trading strategy using a combination of two powerful technical indicators: Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) . Section 1: Understanding MACD and RSI - Exploring the Components MACD: The MACD consists of three components: MACD line : Represents the difference between two moving averages, typically the 12-day and 26-day exponential moving averages. Signal line : A 9-day exponential moving average of the MACD line. Histogram : Displays the difference between the MACD line and the signal line, providing visual cues about the momentum of the price movement. RSI: The RSI is an oscillator that measures the strength and speed of price movements on a scale from 0 to 100. Readings above 70 indicate overbought conditions, suggesting a potential price reversal. Readings below 30 indicate oversold conditions, suggesting a potential price bounce. Divergence between price and RSI can be a signal of a trend reversal. Section 2: The Idea Behind the Strategy - Combining MACD and RSI By aligning the signals of MACD and RSI , we aim to increase the reliability of our trading decisions. When both indicators provide signals in the same direction, it enhances the probability of a successful trade. The convergence of MACD and RSI helps filter out false signals and focus on high-probability trade setups. Section 3: Implementing the Strategy - Identifying Bullish and Bearish Signals Look for a bullish crossover: MACD line crossing above the signal line , indicating upward momentum. Confirm the bullish signal: Ensure the RSI reading is above a specific threshold, such as 50, indicating strength in the upward move. Consider additional confirming indicators, such as positive divergence or breakouts from key resistance levels. Identifying Bearish Signals: Identify a bearish crossover: MACD line crossing below the signal line , indicating downward momentum. Confirm the bearish signal: Ensure the RSI reading is below a specific threshold, such as 50, indicating weakness in the downward move. Consider additional confirming indicators, such as negative divergence or breakdowns from key support levels. Section 4: Backtesting and Refinement - Improving Performance and Accuracy The Importance of Backtesting: Gather historical price data for the desired trading instrument and timeframe. Apply the MACD and RSI convergence strategy to the historical data. Analyze the performance of the strategy, considering factors such as win rate, average gain/loss, and maximum drawdown. Adjust the threshold levels, timeframe, or other parameters to improve the strategy's performance. Refining the Strategy: Consider incorporating additional technical indicators, such as trend lines, Fibonacci levels, or volume analysis, to further confirm trade signals. Evaluate the strategy's performance across different timeframes and trading instruments to identify its strengths and weaknesses. Continuously monitor and adapt the strategy to changing market conditions and refine it based on your trading style and preferences. Section 5: Risk Management and Trade Execution Effective Risk Management: Determine appropriate position sizes based on your risk tolerance and account balance. Set stop-loss orders to limit potential losses if the trade goes against you. Establish profit targets to secure gains and exit the trade when the desired level is reached. Regularly review and adjust risk management parameters as needed. Conclusion: Congratulations! You've completed the tutorial on leveraging MACD and RSI convergence to enhance your trading strategy. By combining these powerful indicators, you now have a valuable tool in your trading arsenal. Remember to practice in a demo environment (aka. Paper Trading) before applying the strategy with real funds, and always adapt it to the evolving market conditions. Feel free to share your progress, ask questions, and discuss your experiences in the comments section. Let's learn from each other and continue refining this strategy together. Best of luck on your trading journey! Note: Trading involves risks, and this tutorial is for educational purposes only. Always conduct your own research, seek professional advice, and practice responsible risk management.
BEducation
by LuminoAlgo
6
Gym Well - Trade Well!When you gym well, it’s like trading well. You gym to tone, to lose weight to build muscle and to build discipline. With trading you trade to build your portfolio, build confidence, create a secured financial future and work on your mindset for life. Both pursuits require consistent effort, perseverance, and a strategic approach. Gym is an important element in my life and so I want to explore the similarities between trading and gymming, and how each can lead to success in their respective domains. You Put in the Work Every Day: Gymming and Trading Like a regular gym routine, successful trading requires dedication and consistency. You can’t expect to see results overnight – you need to put in the work every day. As a trader you must constantly educate yourself on market trends, stay informed about global events, and analyze past performance to make informed decisions. Just as gym-goers must adhere to their workout schedules, traders should establish a daily routine that involves researching and analyzing the market. You Pick Up the Portfolio (Weights) as You Make More Money When you gym, you gradually increase the weights you’re lifting to build strength and endurance. Similarly, as you become more experienced and successful in trading, you can gradually increase your investment portfolio. As your confidence and financial gains grow, you may choose to diversify your portfolio and take on a variety of different assets to spread risk, lower risk, optimise and maximize your returns. Don’t Overtrain – Don’t Overtrade Overtraining at the gym can lead to injury and burnout. And if you over trade in the market, it can result in financial losses and emotional exhaustion. It’s essential to strike a balance between staying active and giving yourself time to rest and recover. In trading, this might mean you: Set your limits on the number of trades you make each day or week Identify the goldilocks zone risk per trade Know when to hault trading or lower risks during a drawdown period. And most importantly. Remember, trading is a marathon, not a sprint. So pace yourself accordingly which is crucial to long-term success. It’s a Forever Process (Takes Time) Both gymming and trading are long-term commitments. You won’t see immediate results in either pursuit. It takes time and dedication to achieve your goals and to identify your trading risk and personality. In the gym, you can expect to see gradual improvements in your strength, endurance, and overall fitness. In trading, you’ll gain experience, knowledge, and a more refined strategy as time goes on. So stay dedicated, and you’ll be well on your way to achieving your goals. Let me know if you gym and if it helps your trading :)
JSE:J200Education
by Timonrosso
2
Step-by-Step Guide to Begin Forex and Gold Trading Forex and gold trading have become immensely popular among investors as a great way to earn profits. However, starting with this venture can be quite overwhelming for beginners. Here is a step-by-step guide to help you begin your forex and gold trading journey: 1. Learn the Basic Concepts: Before investing your hard-earned money, it's important to get familiar with the key concepts of forex and gold trading. 2. Choose a Trading Platform: There are plenty of online trading platforms to choose from. Look for one that is user-friendly and offers competitive trading fees. 3. Identify Your Investment Goals: Decide on your investment objectives, as it will help you to make informed trading decisions. 4. Develop a Trading Plan: Create a trading plan to determine how much you're willing to invest, when you'll buy or sell, and which assets you'll trade. 5. Set a Budget: Determine how much money you intend to invest and set a budget accordingly. Remember, only invest an amount you're comfortable losing. 6. Practice on a Demo Account: Most trading platforms offer a demo account that simulates real trading conditions and helps you practice trading with virtual money. 7. Analyze the Market: Before making any trades, analyze the market through technical and fundamental analysis to identify trends and potential outcomes. 8. Monitor Your Investments: Keep track of your investments regularly and make necessary adjustments if needed. 9. Be Prepared for Risks: Understand that trading involves some risks, so be prepared to handle losses. 10. Keep Learning: Continuously educate yourself on market trends, economic indicators, and other factors that affect the forex and gold trading market. 11. Identify a Reliable Broker: Choose an experienced and licensed broker who can offer you guidance and support when starting. 12. Start Small: Begin with small investments and gradually build your portfolio as you gain more experience and confidence. 13. Diversify Your Portfolio: Spread your investments across different currencies and assets to reduce the risk of losses. 14. Be Realistic: It takes time and patience to become a profitable trader, so set realistic expectations and avoid making hasty decisions. 15. Stay Disciplined: Maintain discipline and stick with your trading plan to achieve your investment goals. Here is the example of how exactly you should trade. Imagine that you have a trading strategy for gold trading. You trade key levels. Once a key support is reached you buy and once a resistance reached you sell. Taking the trade you risk fixed % of your trading account. You know the exact entry reasons, your stop loss and target. Ideal approach should work like clock. In conclusion, starting forex and gold trading can be challenging, but with the right knowledge and preparation, you'll be on your way to making profitable trades. Just remember to keep learning, stay disciplined, and be patient.
OANDA:XAUUSDEducation
by TopTradingSignals
11
STOP Impulse Trading at once – 5 Actions to takeOne of the most dangerous traits a trader can adopt is… Impulse Trading. This is where they take trades mainly on emotions and gut rather than sound financial analysis. This means, more risk, more irrational choices and that can lead to steering away from what works. Your proven trading strategy! And the end result, you’ll lose in the long term and end up with less confidence for your future endeavours as a trader. So let’s come up with certain ways for you to STOP the impulse trading. ACTION #1: Give it an hour When you feel the urge to make a trade based on emotions, it can be helpful to step back and take a break. One great way is to wait for an hour before you make any decisions. Go get something to eat, grab a beer, go walk your crocodile or go do something other than trading. Close your computer if you feel you’re about to impulse trade. This break can help you regain a sense of perspective and avoid making impulsive decisions that you may later regret. ACTION #2: Remember your long term goal I always say… Financial trading is a long-term game. You need to have a clear and specific long-term goal in mind that guides your decisions. When you feel the urge to make an impulsive trade, take a moment remember your trading record, journal and what works. Also, remember it’s not about the one trade but the hundreds of trades later… Ask yourself whether this trade aligns with your overall strategy or whether it’s just a momentary impulse. This can help you stay focused and disciplined in your trading. ACTION #3: Revisit your journal Your journal is pretty much your game-plan. It foretells of the most probable outcome when you follow it. And it should include a record of all your trades, your thoughts and feelings at the time of the trade, and the results of the trade. When you feel the urge to make an impulsive trade, take some time to revisit your journal. Look at your past trades and the results they produced. My favourite… Go look at your drawdowns. Go look at your biggest drawdowns. Then go see how you came out of the drawdowns and your portfolio headed to NEW all time highs. There is no better feeling than that. Do this and I doubt you’ll want to take any impulse trades again. ACTION #4: Read more trading psychology Mind is everything with trading. It’s a great way to develop your discipline and avoid impulse trading. Either go read trading books, articles, watch YouTubes or just save this article. I can almost guarantee… If you read this article, when you feel like taking an impulse trade – You will stop that primitive way of thinking. You’ll stop that inner conscience from trying to ruin your trading performance. ACTION #5: Avoid Overtrading If you find you take MANY trades at a time… You’ll be more inclined of taking impulse trades, because you feel you need to take more. Try and have a cap when it comes to the number of trades you hold. I used to never hold more than 5 trades. But over time, with adopting into new markets and evolved markets – that number gone up. Now I make sure I never have more than 12 trades opened at any one time. Remember to give yourself time to reflect, keep your long-term goals in mind, revisit your journal, and read more about trading psychology. Let’s bring back the 5 actions to avoid taking any impulse trades. ACTION #1: Give it an hour ACTION #2: Remember your long term goal ACTION #3: Revisit your journal ACTION #4: Read more trading psychology ACTION #5: Avoid Overtrading Let me know if this was useful in the comments.
Editors' picks
JSE:J200Education
by Timonrosso
7
Learn The Main Elements of The Trading Strategy There are hundreds of different trading strategies based on fundamental and technical analysis. These strategies combine different tools and trading techniques. And even though, they are so different, they all have a very similar structure. In this educational article, we will discuss 4 important elements every trading strategy should have. 1️⃣ The first compontent of a trading strategy is the list of the instruments that you trade. You should know in advance what assets should be in your watch list. For example, if you are a forex trader, your strategy should define the currency pairs that you are trading. 2️⃣ The second element of any trading strategy is the entry reasons. Entry reasons define the exact set of market conditions that you look for to execute the trade. For example, trading key levels with confirmation, you should wait for a test of a key level first and then look for some kind of confirmation like a formation of price action pattern before you open a trade. 3️⃣ The third component of a trading strategy is the position size of your trades. Your trading strategy should define in advance the rules for calculating the lot of size of your trades. For example, with my trading strategy, I risk 1% of my trading account per trade. When I am planning the trading position, I calculate a lot size accordingly. 4️⃣ The fourth element of any trading strategy is trade management rules. By trade management, I mean the exact conditions for closing the trade in a loss, taking the profit and trailing stop loss. Trade management defines your actions when the trading position becomes active. Here is the example. I took a trade on Friday, following my top-down trading strategy. I was trading Dollar Index (the instrument that is in my trading list). Entry reason was a test of a key level on a daily and a formation of a horizontal range on 1H time frame. The position was opened on a retest of its broken neckline. Position size of this trade was based on 1% of my trading deposit. Stop loss and targets were structure based. Make sure that your trading strategy includes these 4 elements. Of course, your strategy might be more sophisticated and involve more components, but these 4 elements are the core, the foundation of any strategy.
FOREXCOM:XAUUSDEducation
by VasilyTrader
5
Don't listen to your inner NINNY! I can't swear on TV :(Traders have 1 JOB!. To just take the trade. All the other stuff is semantics. But most times you’ll find your inner B I mean Ninny takes over. And it tells you: ~ Don’t take the trade. ~ You’ll lose money. ~ The stars are not aligned! ~ Blah blah fish paste! You need to stop listening to your inner F - inny, or it will destroy your chances of success. So let’s talk about the 4 common excuses traders make and how to overcome them. Excuse #1: I’m not in the mood The markets are awake with or without you. People are making money and doing things in this world. Others are taking ice baths, cold showers, hitting the gym twice a day. They are doing the hard. You need to stop the excuses of not in the mood, get off the couch and take action for your life. You are in control of your life, what you do and what you make. Do what you need to. Create a schedule that includes time for exercise, meditation, and of course trading. Excuse #2: External news event kicked in Financial markets are subject to external events that can impact trading decisions. These events can include political developments, natural disasters, or major economic announcements. The problem is. These events come daily. Every day there are new news announcements, GDP numbers, employment and jobs reports, Interest rates, inflation rates etc…If you’re not taking a trade because of one of these announcements, I’m sorry but. That’s just an excuse! If you must. Write down a few IMPORTANT news announcements that you want to watch for when you trade. Maybe interest rates in America. Maybe NFP reports, Maybe during FOMC meetings. But do the research and find out what news events are worthy to NOT take a trade. I’ve been in the markets for 20 years and I haven’t found one worthy news announcement other than NFP for Forex trading. Excuse #3: Market doesn’t feel right To you it doesn’t feel right. To you, you think the market is some sentimental machine that feels healthy or sick. To me, I see prices, risks and probabilities. I see a robot and mechanical processes with billions of dollars streaming in and out at any one second, the market is opened. You need to develop an objective criteria for assessing market conditions. Have tunnel vision and stop trying to predict the temperature of the market. It’s not human. There is buying. There is selling. There is a repetition of that every day. Market doesn’t feel right, is an excuse. Excuse #4: System lined up but it’s not perfect Ok so you have a system good. You have a strict strategy to follow, great. But the system lined up and it’s not perfect. As I mentioned before. You need to write down the rules and criteria that you can use to identify opportunities and risks. There are only three types of trades in this world. HIGH probability trade – Market lined up perfectly according to the system. MEDIUM probability trade – Market almost lined up perfectly but I will still take the trade and risk a little less. NO trade – Market did NOT line up and therefore I’m not taking a trade. So, are you going to continue to listen to your inner Busy Ninny or are you going to start making money the right way?
TVC:SA40Education
by Timonrosso
Cup and Handle Trading Guide ☕️ The cup and handle pattern is a continuation chart pattern that looks like cup and handle with a defined resistance level at the top of the cup. It forms from a strong drive up that pulled back and consolidated over a period of time creating the cup before making another push to the resistance where it pulls back again but not as far creating the handle and then makes it final push past the resistance level and continuing on the trend. How To Trade A Cup and Handle Pattern To trade using a cup and handle strategy, place your stop buy order a little higher than the handle’s upper trend line. Your order will only execute if the price breaks through the pattern’s resistance. As an alternative you can wait for the price to close higher than the handle’s upper trend line, and then place a limit buy order a little bit lower than the breakout level for the pattern, which will execute if the price retraces. However, you will face the risk of missing the trade if the price fails to pullback and continues to advance uninterrupted. 💫Useful tips: The ideal cup pattern should not be too deep. Avoid patterns with handles that are too deep as well, since the handles should be forming somewhere in the cup pattern’s top half. The volume should be decreasing as the price declines, and then stay lower than the average seen in the base of the cup. The price should increase as the security starts to move higher toward the previous high. The retest at the end of the cup pattern does not need to directly reach the previous high, but the further the top of the handle is from the old high, the less significant the breakout from the handle’s bottom may be. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
5
How to get your Trading DoneTrading is the easiest hardest way to become financially free. You need to follow a simple approach and then have the discipline to do it again and again for the rest of your life. It can at first be a daunting task because you have to implement an element of risk. But before you know it, you’ll be free from your financial shackles and struggle. Here are five tips to help you get your financial trading done efficiently and effectively. Step #1: Always have your cheat sheet with you. A cheat sheet is a list of rules that you have set for yourself when trading. These rules are from how to spot trading signals, getting your trading setup ready, to implementing the maximum amount of money you’re willing to risk on a trade to the indicators you look for when deciding on a trade. Always make sure you have your cheat sheet with you to have a clear set of rules to follow. This way you’ll avoid making impulsive decisions. Step #2: Look for the right trading setups with high probability trades. Before you enter a trade, it’s essential to look for the right trading setup. A trading setup is a specific combination of conditions that must be met before you enter a trade. For example, you may look for a bullish continuation or reversal price breakout strategy, combined with a moving average crossover and RSI divergence indicator. Once you have identified the right trading setup, you can then look for high probability trades within that setup. Step #3: Execute your trades or just take the trade. Once you have identified a high probability trade, it’s time to execute the trade. When executing a trade, it’s important to remember that the market can be unpredictable. You may have done everything right and still end up losing money on a trade. Therefore, it’s essential to take the trade, execute your plan, and move on to the next opportunity. Step #4: Journal your trades It’s essential to keep a record of all your trades, including the reasons why you entered and exited the trade. This can help you identify patterns in your trading and make adjustments to your strategy as needed. This way you can record, monitor and also identify areas where you can improve and re-evaluate your trading plan accordingly. Step #5: Rinse and repeat the process. Finally, once you have executed a trade, recorded it in your journal, and made any necessary adjustments to your trading plan, it’s time to rinse and repeat the process. Trading is a continuous process. There will always be new opportunities to explore and it’s ALWAYS the right time to start or continue. If you follow the above steps, you’ll increase your chances of success and make the most of your trading endeavours.
TVC:SA40Education
by Timonrosso
How to Trade the Pin Bar Pattern on Forex and Gold 🕯 The pin bar is a powerful price action setup that tells a fascinating story concerning price momentum and the possibility of an imminent reversal in price direction. A pin bar is a Japanese candlestick that has a long wick on one side and a small body. Understanding the story behind the pin bar is essential. 📚What does the pin bar candlestick pattern tell us about market psychology? 📉This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection. 📈The pin bar followed by a strong uptrend, and the presence of a long tail above the body tells us that the market rejected any attempt by overly exuberant buyers to move the price higher. The length of the tail speaks to the strength of the rejection. ⭐️The best pin bars are bearish pin bars that form at the top of an extended move up, and bullish pin bars that form at the bottom of an extended move down. ✅Entry and exit is very simple. If you are going short on a bearish pin bar, enter short when the next candle opens and ticks below the low of the bearish pin bar. If you are going long at your fx broker, enter long when the next candle opens and ticks above the high of the bullish pin bar. ❗️Keep in mind that these are general trading concepts that build on the collective experience of traders. Even though a lot of traders believe that these chart patterns have a bearing on the future direction of the price there are no guarantees in trading. Forex & gold trading is risky and you should never speculate with funds you cannot afford to lose. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10