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Exploring PAMM AccountsExploring PAMM Accounts Navigating the complex world of trading becomes easier with the right tools and options. PAMM accounts offer a unique opportunity for investors to leverage the skills of experienced traders. This article delves into the essentials of these accounts, discussing their mechanics, how to choose a PAMM manager, and what you need to know to get started. What Is a PAMM Account? PAMM stands for "Percent Allocation Money Management." In simple terms, it's a type of trading account where an experienced trader (known as the manager) handles the trading on behalf of other investors. Investors allocate a portion of their capital to the account, and the manager uses this collective fund to execute trades. This system automatically distributes gains and losses among the investors based on their share in the system. PAMM Account Mechanics In a PAMM account, the manager and investors have specific roles. The manager is responsible for making trading decisions and executing trades. The investors, on the other hand, contribute capital but are not involved in the day-to-day trading activities. The allocation of profits and losses is determined by the percentage of the total fund each investor holds. When it comes to the distribution of profits, different brokers may use various methods such as equity ratio, lot allocation, or even custom plans. There are also various types of accounts. At FXOpen, we offer PAMM ECN, STP, and Crypto* accounts, which each come with their own unique advantages and disadvantages. Evaluating PAMM Managers Choosing the right PAMM investment manager is a critical step in your investment journey. Firstly, assess the manager's performance records, including returns on investment and drawdowns. Look for consistency rather than short-term gains; a stable track record over an extended period is a reliable indicator of skill. Secondly, examine their risk management strategies. At FXOpen, you can dig deep into various statistics, like their drawdown, overall gains, trade duration, and more. This will help you gain a well-rounded view of the manager’s risk management style. Lastly, ensure transparency. The manager should be willing to provide regular updates and be open about their trading strategies. A well-documented performance history and audited financial statements are good signs that a manager is transparent and reliable. Investing in PAMM Accounts with FXOpen If you don’t want to grant a random manager with your own funds, you can use modified PAMM mechanics at FXOpen. Here, Percent Allocation Master Module is not an asset management tool. It is a technical opportunity for one Customer (“Follower”) to follow strategies of another Customer (“Master”). The funds allocated to PAMM trading remain in the accounts of the parties, but are separated from other funds and cannot be used for any other purposes. By using the FXOpen PAMM account, a Follower can benefit from trading but don’t need to do market research, trade and monitor positions themselves. In their turn, Masters can use funds exceeding their own capital, also, they receive a guaranteed fee for doing so. You can start by opening an investment account and depositing your initial funds. Different account types may have varying minimum deposit requirements, so make sure to check the specifics. Next, it’s good to identify your investment goals and risk tolerance. FXOpen offers a range of Masters, from conservative to aggressive strategies. You can look at our PAMM Account Rating page to find the best PAMM accounts suitable for you. Once you’ve invested, you'll be able to monitor your investment’s performance in real time via a user-friendly interface. The Bottom Line Understanding and investing in PAMM accounts can be a valuable strategy for diversifying your trading portfolio. From choosing a reliable manager to monitoring your investment, we provide all the tools you need for a positive experience. To get started on your journey, consider opening an FXOpen account. You’ll gain access not only to a curated selection of PAMM accounts and masters but also to a wide range of markets and the advanced TickTrader platform, equipping you with the tools for trading success. PAMM accounts aren’t available to FXOpen EU and FXOpen UK clients. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
Catch Big Market Moves: How to Trade Liquidity Zones Like a Pro The charts provided showcase potential scenarios based on different liquidity zones (LQZ) on multiple timeframes, such as 15M, 1H, and 4H. Let's break down the key insights from the images: Key Levels: Weekly Flag Trendline: This yellow trendline represents the long-term trend and acts as a major resistance or support. It’s crucial to monitor price action around this level for significant moves. 4HR LQZ (Liquidity Zone) at 2,532.077: This level signifies an important area of liquidity on the 4-hour chart. It’s a potential reversal point or continuation area depending on how the price interacts with it. 1HR LQZ and 15M LQZ: These shorter timeframe liquidity zones are at 2,482.129 and 2,470.544 respectively. They act as interim targets or bounce zones based on the smaller trend movements. Price Action Context: Wedge Formation: The rising wedge pattern visible in all the charts, combined with slowing momentum near the top, suggests possible bearish pressure. Wedges often lead to sharp breakouts, so a breakout to the downside would align with the wedge structure. Multi-Touch Confirmation: The multiple touches on trendlines, both support and resistance, increase the probability of significant movements. This concept is supported by multi-touch confirmation techniques​. Scenario Planning: Upside Potential: A breakout above the 4HR LQZ suggests further bullish momentum, likely toward higher liquidity zones. This can result in a continuation to the upside, as shown with the green line projection on some charts. Downside Risks: A breakdown below the wedge support and failing to hold the 15M or 1HR LQZ may lead to a bearish move toward the lower liquidity targets. The yellow line projections suggest a pullback to 2,485.055 and potentially lower. The Trinity Rule Approach: Confluence Setup: If price interacts with three major zones (like the 4HR LQZ, wedge support, and Weekly Flag Trendline), we can assess whether these align with other signals. This rule adds extra confirmation for higher-probability setups, as discussed in your document​​. Overall, price action shows a decision point around the wedge and liquidity zones, with strong reactions expected in either direction.
OANDA:XAUUSDEducation
by Adlercon333
3
Why Most Traders Fail—and How You Can Succeed!The charts you provided showcase potential scenarios based on different liquidity zones (LQZ) on multiple timeframes, such as 15M, 1H, and 4H. Let's break down the key insights from the images: Key Levels: Weekly Flag Trendline: This yellow trendline represents the long-term trend and acts as a major resistance or support. It’s crucial to monitor price action around this level for significant moves. 4HR LQZ (Liquidity Zone) at 2,532.077: This level signifies an important area of liquidity on the 4-hour chart. It’s a potential reversal point or continuation area depending on how the price interacts with it. 1HR LQZ and 15M LQZ: These shorter timeframe liquidity zones are at 2,482.129 and 2,470.544 respectively. They act as interim targets or bounce zones based on the smaller trend movements. Price Action Context: Wedge Formation: The rising wedge pattern visible in all the charts, combined with slowing momentum near the top, suggests possible bearish pressure. Wedges often lead to sharp breakouts, so a breakout to the downside would align with the wedge structure. Multi-Touch Confirmation: The multiple touches on trendlines, both support and resistance, increase the probability of significant movements. This concept is supported by multi-touch confirmation techniques​. Scenario Planning: Upside Potential: A breakout above the 4HR LQZ suggests further bullish momentum, likely toward higher liquidity zones. This can result in a continuation to the upside, as shown with the green line projection on some charts. Downside Risks: A breakdown below the wedge support and failing to hold the 15M or 1HR LQZ may lead to a bearish move toward the lower liquidity targets. The yellow line projections suggest a pullback to 2,485.055 and potentially lower. The Trinity Rule Approach: Confluence Setup: If price interacts with three major zones (like the 4HR LQZ, wedge support, and Weekly Flag Trendline), we can assess whether these align with other signals. This rule adds extra confirmation for higher-probability setups, as discussed in your document​​. Overall, price action shows a decision point around the wedge and liquidity zones, with strong reactions expected in either direction.
OANDA:XAUUSDEducation
by Adlercon333
How to Optimize Your Investments and Navigate Economic SeasonsThe economy operates in recurring phases of expansion and contraction, known as business cycles or economic cycles. These cycles play a fundamental role in shaping economic activity, employment, and investment decisions. In this article, we will explore the different phases of the business cycle, relate them to the seasons of the year, and discuss how investors and businesses can navigate these cycles effectively. 🔵𝚆𝙷𝙰𝚃 𝙸𝚂 𝙰 𝙱𝚄𝚂𝙸𝙽𝙴𝚂𝚂 𝙲𝚈𝙲𝙻𝙴? A business cycle refers to the fluctuation of economic activity over a period, encompassing periods of growth and decline. It is measured through changes in key economic indicators such as GDP (Gross Domestic Product), employment, consumer spending, and industrial production. Business cycles typically follow a regular pattern, starting with a phase of expansion, followed by a peak, a period of contraction or recession, and eventually a trough, after which the economy recovers and the cycle begins anew. 🔵𝙱𝚄𝚂𝙸𝙽𝙴𝚂𝚂 𝙲𝚈𝙲𝙻𝙴𝚂 𝙰𝙽𝙳 𝚃𝙷𝙴 𝚂𝙴𝙰𝚂𝙾𝙽𝚂 𝙾𝙵 𝚃𝙷𝙴 𝚈𝙴𝙰𝚁 Each phase of the business cycle can be compared to a season of the year, which provides a helpful way to visualize the economic conditions at play: Spring (Recovery) : After the trough (winter), the economy enters a phase of recovery. Like spring, it's a time of renewal, with growth resuming and businesses beginning to thrive again. Employment rises, consumer confidence improves, and investment increases. Summer (Expansion) : The economy reaches its full strength during the expansion phase. Just like summer brings warmth and energy, this phase brings rising consumer confidence, employment, and production. Companies grow, and investments yield high returns. Autumn (Weakening) : As the cycle peaks, the economy starts showing signs of weakening, much like the cooling of autumn. Consumer spending and business growth slow down, and inflation may rise. The peak signals that the economy is at its maximum potential, and a slowdown or contraction may follow. Winter (Contraction or Recession) : In winter, the economy enters a recession, characterized by declining economic activity, falling production, and rising unemployment. Just as winter halts nature’s growth, a recession slows down economic growth. This is the time when businesses may suffer losses, and consumer confidence weakens. 🔵𝙸𝙼𝙿𝙰𝙲𝚃 𝙾𝙵 𝙱𝚄𝚂𝙸𝙽𝙴𝚂𝚂 𝙲𝚈𝙲𝙻𝙴𝚂 𝙾𝙽 𝙳𝙸𝙵𝙵𝙴𝚁𝙴𝙽𝚃 𝚂𝙴𝙲𝚃𝙾𝚁𝚂 Business cycles affect various sectors of the economy differently. Some sectors, like consumer discretionary and industrials, tend to perform well during expansions but suffer during recessions. Others, such as utilities and consumer staples, may be more resilient during downturns, as they provide essential goods and services. For example: Technology and Manufacturing : These sectors are highly sensitive to business cycles and tend to flourish during periods of expansion due to increased consumer and business spending. Healthcare and Utilities : These sectors often remain stable during recessions because demand for healthcare and essential services remains constant. Crypto Sector: SP500: 🔵𝙽𝙰𝚅𝙸𝙶𝙰𝚃𝙸𝙽𝙶 𝙱𝚄𝚂𝙸𝙽𝙴𝚂𝚂 𝙲𝚈𝙲𝙻𝙴𝚂 𝙰𝚂 𝙰𝙽 𝙸𝙽𝚅𝙴𝚂𝚃𝙾𝚁 Investors can use knowledge of the business cycle to adjust their portfolios. During expansion phases, growth stocks and cyclical industries may offer better returns. Risk-On vs. Risk-Off Investing in Different Business Cycle Phases During periods of economic expansion (summer), the environment is often referred to as "risk-on." Investors are more willing to take risks because economic growth drives higher returns on riskier assets, such as equities, growth stocks, or emerging markets. As consumer confidence, business spending, and investments increase, the potential rewards from higher-risk investments become more appealing. Example of risk-on and off of cryptocurrency Example of risk-on and off of Stock Market However, during periods of economic contraction or recession (winter), investors typically shift to a "risk-off" strategy. In this phase, they seek to protect their capital by moving away from high-risk assets and toward lower-risk investments like government bonds, blue-chip stocks, or cash. The focus shifts to preserving wealth, and risk-taking is minimized or eliminated. Investors may use leading and lagging indicators to anticipate where the economy is headed. Leading indicators, such as stock market performance or consumer confidence, tend to signal changes before the economy as a whole moves. Lagging indicators, like unemployment or corporate profits, confirm trends after they occur. 🔵𝙶𝙾𝚅𝙴𝚁𝙽𝙼𝙴𝙽𝚃 𝙿𝙾𝙻𝙸𝙲𝙸𝙴𝚂 𝙰𝙽𝙳 𝙱𝚄𝚂𝙸𝙽𝙴𝚂𝚂 𝙲𝚈𝙲𝙻𝙴𝚂 Governments often intervene to smooth out the extremes of business cycles through fiscal and monetary policy. During recessions, governments may implement stimulus packages, cut taxes, or increase spending to boost demand. Central banks may lower interest rates to encourage borrowing and investment. Conversely, during periods of rapid expansion and inflationary pressure, governments may raise taxes or cut spending, while central banks might increase interest rates to prevent the economy from overheating. 🔵𝙲𝙾𝙽𝙲𝙻𝚄𝚂𝙸𝙾𝙽 Business cycles are a natural part of economic activity, influencing everything from consumer spending to corporate profitability and investment strategies. By understanding the phases of the business cycle (or seasons of the economy) and their impact on various sectors, investors and businesses can better position themselves to navigate economic fluctuations. Whether the economy is expanding or contracting, being aware of the current phase of the business cycle helps guide decisions, manage risks, and seize opportunities.
VANTAGE:SP500Education
by BigBeluga
3
Master Trading with Heiken Ashi Candles in 11.32 minutes Let’s talk about how to DOMINATE the market using Heiken Ashi candles for perfect entries and exits! This is where your trading game levels up. First, when those candles start turning smooth and green with no wicks at the bottom, that's your entry signal! It’s like the market saying, "Hop on, this train is about to take off!" You ride those green candles as long as they stay strong and wick-free at the bottom. Now, here’s the key – watch for red candles starting to form with wicks on top! That’s your signal to EXIT! Don’t get greedy, secure those gains, and get out before the market turns against you. With Heiken Ashi, you get smoother trends, cleaner signals, and better trades! Enter with confidence, exit with precision, and OWN the market! That's it, fast and powerful! Now go crush those trades!
AMEX:SPYEducation
by Deno_Trading
3
Calm in the Chaos: Handling Panic During Trading ChallengesPanic can manifest in trading when unexpected events occur, such as sudden news announcements or price reversals. During these moments, traders are often prone to making impulsive decisions, such as adjusting stop-loss orders, prematurely closing trades at a loss, or holding onto losing positions for too long. This kind of panic can severely impact one’s emotional and psychological well-being. While external factors can provoke these feelings, it is crucial for traders to learn how to manage their emotional responses. 📍 Strategies for Managing Panic in Trading Although the following tips may seem obvious, they are frequently overlooked, particularly during moments of panic. Acknowledging their importance can help traders regain composure and make rational decisions. 1. Deep Breathing Techniques Begin by taking a deep breath in through your nose, counting slowly to four. Hold your breath for a few seconds, then exhale slowly through your mouth while counting to four. Repeat this process several times until your breathing becomes more even and calm. By focusing on your breath, you can help your nervous system relax, allowing you space to regain clarity. 2. Distraction Engaging in an alternate activity that requires concentration can be beneficial. Puzzles, reading, or even listening to calming music or nature sounds can divert your attention from the stressful situation at hand. Joining online forums for discussion can also serve as a useful escape, allowing you to clear your mind and gain perspective. 3. Rational Analysis Take a moment to evaluate the situation by asking questions such as: “What specifically is causing my panic?” and “What are the real risks involved?” It may turn out that the circumstances aren't as dire as they appear. Create a list of potential solutions and their implications, providing a clearer view of your options. Writing down pros and cons can further aid in rationalizing your thoughts. 4. Set Realistic Goals Establish clear and achievable objectives for each trading session. Avoid setting expectations for unrealistically high profits in a short timeframe. Recognize that losses are an inherent part of trading; anticipating them can make dealing with panic more manageable. 5. Incorporate Relaxation Techniques Regular meditation, yoga, or stretching exercises can help alleviate physical tension and improve emotional control. Techniques such as aromatherapy or taking warm baths can also promote relaxation. For those experiencing chronic tension, these practices may offer lasting relief from panic attacks. 6. Cultivate Positive Thinking Shift your mindset by replacing negative thoughts with affirmations. Instead of telling yourself, “I will lose everything,” reinforce the belief that “I can control my risks.” Recall past instances where you successfully managed stressful situations and celebrate small victories in your trading journey. Building self-esteem based on real accomplishments is essential, as both inflated and diminished self-worth can hinder decision-making. 7. Limit Exposure to News and Social Media During periods of market panic, news and social media can be rife with negative information, exacerbating your anxiety. Consider avoiding these sources until you regain your composure. 8. Understand You're Not Alone It's important to remember that all traders experience panic from time to time—it's a normal part of the trading landscape. Acknowledging this reality can help prevent panic from obstructing your capacity to make informed decisions. 📍 Conclusion Maintaining composure in the face of panic is critical for effective trading. While it may feel easier to take no action during such times, doing so can adversely affect your mental health. Developing strategies to manage your emotions is essential not only for your trading success but also for your overall well-being. By practicing these techniques, traders can learn to navigate the high-stakes world of trading with greater confidence and resilience. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣
Education
by Lingrid
9
Thesis Generation for mutitimeframe SB Style Trading explainedIn this video, I guide you through the complete process of generating a trading thesis and selecting pairs for my shortlist. We'll begin with a theoretical explanation and then apply it to today's NAS situation. My analysis incorporates the Stacey Burke trading style alongside a mechanical multi-timeframe bias analysis. A consistent and clear analysis process, repeated daily, is crucial for continuous improvement. I hope you find this helpful!
OANDA:NAS100USDEducation
by TC888
All About the Flag Pattern (Beginner-Friendly)Hello everyone, Today, I’ve prepared an educational guide on chart patterns, specifically focusing on the Flag Pattern. This content is designed to be easy for beginners to follow, so I hope you find it engaging and informative. :) Below is the outline I’ll be using for this post: ———— ✔️ Outline 1. What is a Flag Pattern? Definition Key Components Characteristics 2. Bullish Flag Pattern Basic Characteristics Examples 3. Bearish Flag Pattern Basic Characteristics Examples ———— 1. What is a Flag Pattern? 1) Definition A Flag Pattern forms during a brief consolidation phase after a strong price movement, often signaling the continuation of a trend. It typically appears when prices make a sharp move, either up or down, followed by a period of sideways or slightly counter-trend movement. Flag Patterns can occur in both uptrends and downtrends, named for their resemblance to an actual flag. After a strong price move, the market consolidates briefly before continuing in the original trend direction. 2) Key Components Flagpole: The initial strong price movement that sets the overall trend direction before the consolidation phase. Flag: The consolidation period where prices move sideways or slightly counter to the trend, often forming a rectangle or parallelogram. This phase typically occurs with a decrease in trading volume. Breakout: The moment when the price resumes its original trend direction. In an uptrend, this is an upward breakout, and in a downtrend, a downward breakout, confirming the continuation of the trend. 3) Characteristics Duration: The Flag Pattern typically lasts longer than the Flagpole but varies depending on the timeframe. Volume: Volume usually decreases during the Flag’s formation and increases once the breakout occurs. Reliability: The Flag Pattern is considered a reliable indicator of trend continuation, making it a favorite among traders using trend-based strategies. ———— 2. Bullish Flag Pattern 1) Basic Characteristics A Bullish Flag forms after a strong upward price movement, signaling a temporary consolidation phase. During this consolidation, volume typically decreases, suggesting that the market is pausing rather than reversing. After this phase, the price often continues its upward trend, accompanied by an increase in volume. Bullish Flag Patterns also help relieve overbought conditions in technical indicators, providing the market with a chance to prepare for another move up. 2-1) Example 1 This chart from May 2023 shows a strong Flagpole followed by a long consolidation phase (Flag). The volume then increased as the price broke out, completing the Bullish Flag Pattern. 2-2) Example 2 In this chart from March 2021, we see a similar setup: a strong Flagpole, followed by a consolidation phase, leading to a breakout that continued the upward trend. ———— 3. Bearish Flag Pattern 1) Basic Characteristics The Bearish Flag Pattern is the inverse of the Bullish Flag. It follows a strong downward move (Flagpole) and is followed by a period of consolidation (Flag) with decreasing volume. Like its bullish counterpart, the Bearish Flag can relieve oversold conditions, leading to a continuation of the downtrend after a breakout. 2-1) Example 1 This chart from May 2022 displays a Bearish Flag Pattern: a strong downward Flagpole, followed by a Flag consolidation phase. After the consolidation, a breakout occurred, continuing the downtrend. 2-2) Example 2 This chart from February 2022 also illustrates a strong downward Flagpole, followed by a consolidation phase (Flag), leading to a breakout that completed the Bearish Flag Pattern. This guide will help you better understand the Flag Pattern and how it can be used in your trading strategy effectively! ———— ✔️ Conclusion I hope the various Flag Patterns and market analysis techniques covered in this post prove helpful in your investment journey. Chart analysis is not merely a technical skill but also a deeper understanding of market psychology and movement. Flag Patterns, along with other chart patterns, visually reflect the psychological dynamics of the market. Mastering their use can greatly contribute to successful trading. That being said, the crypto market is inherently unpredictable and fast-moving. While technical analysis is a valuable tool, it’s important to adopt a comprehensive approach that considers broader market trends and external factors. I encourage you to apply the insights gained from this post with a balanced and cautious perspective when making investment decisions. New opportunities are constantly emerging, and those who are prepared to seize them will find success. The chart represents the market’s voice. Listening to it, interpreting it, and making informed decisions based on that interpretation is "the essence" of chart analysis. I sincerely hope that, through continuous learning and experience, you’ll evolve into a more confident and successful investor.
Editors' picks
Education
by Killer_Whales
9
USDJPY~Currency Carry Trade~Forex Fundamentals The upper pane is inverted USDJPY, ie JPYUSD. THE lower pane is US10, or inverted US10Y. When interest rate in US rises against/faster than/compared with interest rate in JP, the exchange rate of USJPY follows as well. Investors will simply pull out the capitals from Japan and park them in US for better return. If you can rent out your resources at the price of 5%, why wasting them only earning 1%. Capital tends to flow to the people/places/projects that can utilize it most.
Education
by jackxzone
Build Confidence with Heikin-Ashi Candle Patternow to Trade Using Heikin Ashi Candles on the NDX Chart Heikin Ashi candles are a powerful tool for filtering out market noise and identifying trends more clearly than traditional candlesticks. By smoothing out price action, they allow traders to focus on the overall direction of the market, helping you make more informed trading decisions. Here’s a breakdown of how to use Heikin Ashi candles effectively, specifically on the NDX chart. 1. How to Read Heikin Ashi Candles The primary difference between Heikin Ashi and traditional candlesticks is in how they are calculated. Heikin Ashi uses a modified formula that incorporates the open, close, high, and low prices of the previous candle, which results in a smoother appearance. This smoothing effect allows traders to more easily spot trends: Bullish Trends: A series of green candles with no lower wicks typically indicates a strong uptrend. These are the times to consider long trades. Bearish Trends: A series of red candles with no upper wicks signals a strong downtrend. These are great opportunities for short positions. Consolidation: Mixed green and red candles with wicks on both ends often indicate consolidation or indecision in the market. The Heikin Ashi chart reduces the noise from minor price fluctuations, allowing you to focus on the trend itself rather than the short-term volatility. 2. Entry and Exit Points The beauty of Heikin Ashi candles lies in their ability to simplify entries and exits. Here’s how to use them: Entry Points: You want to enter a trade when a new trend is confirmed. For a long position, wait for the first few green Heikin Ashi candles after a period of red ones, signaling a reversal to the upside. For a short position, look for a sequence of red candles after a bullish period has ended. Exit Points: Exit your trade when you start seeing signs of reversal. For long trades, this would be the appearance of the first red Heikin Ashi candle after a series of green ones. For short trades, exit when the first green candle appears after a bearish sequence. Waiting for these clear signals helps avoid premature exits and ensures that you’re riding the trend for as long as possible. 3. Key Support and Resistance Levels Heikin Ashi works even better when combined with key support and resistance levels. On the NDX chart, identifying these levels provides context for your trades: Support Levels: If the price is approaching a key support level, and you start to see bullish Heikin Ashi candles, it’s a potential buy signal. Resistance Levels: If the price is approaching resistance and bearish Heikin Ashi candles begin forming, that could signal a good time to sell or short. Using Heikin Ashi in conjunction with these levels increases the probability of success by ensuring you are trading within important zones where price action tends to react. By mastering the use of Heikin Ashi candles and combining them with support and resistance, you can significantly improve your ability to spot and act on high-probability trading opportunities, especially on volatile instruments like NDX.
AMEX:SPYEducation
by Deno_Trading
New Features For Dynamic Pivot Levels - Percentage indicatorIn our latest update, we’ve packed in some exciting new features and enhancements that will elevate your analysis experience to the next level: Exciting New Features: We’ve added additional Exponential Moving Averages (EMAs), allowing you to track five different EMAs tailored to your needs. But that’s not all – we’ve introduced smiley indicators that give you instant feedback on whether the price is above or below the moving average. Now you can analyze with a clean, clutter-free chart! Fibonacci Level Enhancements: We’ve upgraded the logic behind Fibonacci levels to give you more accurate insights. The improved Fibonacci calculations provide a clearer, more precise visual representation, helping you make better-informed decisions. A Sleek, Streamlined User Interface: We know how important it is to work with a smart, efficient tool, so we’ve revamped the user interface! Settings are now neatly organized into categories, allowing you to quickly and easily customize everything you need. This makes your workflow smoother and faster. This update doesn’t just bring new capabilities – it makes the tool more accessible and user-friendly than ever. It’s your key to staying focused on precision analysis, without the distractions!
NASDAQ:AMZNEducation
by The_Real_Hippopotamus
Relative Strength (Not RSI)For a serious trader Relative Strength (Not RSI) is a very important component. A careful study of RS will tell you your are on which stage. There are 4 stages in a stock's life Stage: Stage 1 - This is the stage of consolidation, usually happens at bottom after a fall. Stage 2 - This when stock breaks out from Stage 1 and price moves away from stage 1. Stage 3 - This is again a consolidation phase but this will be at top or after stage 2. Stage 4 - This is the break down of stage 3 and price falls quickly . As a Trader we usually enter at Stage 2 to go long or Stage 4 to either book out our stock or to short a stock. Relative Strength or RS is a stocks performance against bench mark index. This tool is freely available in TV community. Which is a great tool to take or avoid a trade. In this case RS is in red or falling which means the stock is under performing bench mark index NIFTY500. Now look the chart, stock is in consolidation after a up move. So RS is advising us against any further buy a stock is underperforming even though moved up and rightly so the eventual broken down.
BSE:BANKINDIAEducation
by Vasu_devan
Mastering Trading ConfluenceIn the world of trading, success often hinges on making informed decisions based on reliable analysis. However, relying on a single indicator or tool can sometimes lead to false signals and missed opportunities. This is where the concept of trading confluence comes into play. Trading confluence refers to the alignment of multiple indicators, tools, or analysis techniques to confirm trading signals, thereby increasing the probability of a successful trade. 🔵𝚆𝙷𝙰𝚃 𝙸𝚂 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴? Confluence in trading is the process of combining different technical analysis tools to identify high-probability trading opportunities. Instead of relying on a single indicator, traders look for areas where multiple indicators or strategies align, providing a stronger signal for entering or exiting a trade. These tools might include price action analysis, moving averages, Fibonacci retracements, support and resistance levels, or even fundamental analysis. When several tools point to the same conclusion, the signal is considered more robust, reducing the likelihood of false positives and improving the chances of a successful trade. 🔵𝚆𝙷𝚈 𝙸𝚂 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 𝙸𝙼𝙿𝙾𝚁𝚃𝙰𝙽𝚃? The financial markets are complex, with numerous factors influencing price movements. Relying on a single indicator can lead to inconsistent results, as no indicator is infallible. By using confluence, traders can: Increase Confidence in Trade Decisions : When multiple indicators confirm the same signal, it provides traders with greater confidence to act on that signal, knowing that it is backed by various forms of analysis. Filter Out False Signals : Indicators sometimes produce false signals. By requiring alignment between different tools, confluence helps filter out these false positives, leading to more reliable trading decisions. Enhance Risk Management : Confluence allows traders to pinpoint more precise entry and exit points, which can lead to tighter stop-loss levels and better risk-reward ratios. This, in turn, can improve overall portfolio performance. 🔵𝙷𝙾𝚆 𝚃𝙾 𝚄𝚂𝙴 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 𝙸𝙽 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 To effectively use confluence in your trading strategy, consider the following steps: Select Complementary Indicators : Choose indicators that complement each other rather than those that replicate the same information. For example, combining a momentum indicator like the Relative Strength Index (RSI) with a trend-following indicator like a Moving Average can provide a more comprehensive view of market conditions. Identify Key Levels : Look for confluence at key levels such as support and resistance zones, Fibonacci retracement levels, or pivot points. When price action aligns with these levels and is confirmed by multiple indicators, it suggests a higher probability trade setup. Confluence of Chart Patterns and Oscillator One powerful example of confluence is when a chart pattern like Equal Highs (EQH) aligns with a momentum indicator such as the Stochastic RSI. This combination provides more confidence in determining the trend direction. When both the EQH pattern and Stochastic RSI align, such as when price hits equal highs while the Stochastic RSI shows overbought conditions, traders can have increased confidence in anticipating a trend reversal. Combining Same-Type Indicators - Using multiple trend-following indicators, such as the Aroon, Directional Movement Index (DMI), and the 50-period Simple Moving Average (SMA), can enhance your ability to identify strong trends and avoid false signals. These indicators complement each other by offering different perspectives on trend strength and direction. - Combining multiple mean reversion indicators can provide stronger signals for potential price reversals. This approach helps in identifying overbought or oversold conditions with greater confidence. Here are some ways to create confluence using mean reversion indicators: When multiple indicators align to show overbought or oversold conditions, it provides a stronger signal for a possible price reversal. However, it's important to remember that even with confluence, no indicator combination is foolproof, and proper risk management should always be employed. Use Multiple Time Frames : Analyzing confluence across different time frames can provide additional confirmation. For instance, if a bullish signal is confirmed on both the daily and hourly charts, it strengthens the case for entering a long position. Multiple timeframe analysis is a highly effective strategy in technical analysis, as it allows traders to see the broader picture of market trends and zoom into shorter-term price movements. One common approach is to apply a 50-period Simple Moving Average (SMA) across different timeframes, such as 3D, 1D, 12H, and 4H charts, to assess trend strength and direction. By combining these timeframes with the 50-period SMA, traders can assess whether the trend is aligned across different perspectives. For example, if the price is above the 50-SMA on the 3D and 1D charts but below it on the 4H chart, it might signal a short-term pullback within a larger uptrend. This confluence of trend analysis across multiple timeframes provides a more robust trading strategy. Combine Technical and Fundamental Analysis : While technical indicators are the primary tools for identifying confluence, integrating fundamental analysis (such as economic reports, earnings releases, or geopolitical events) can further validate your trading decisions. Practice Patience and Discipline : Trading confluence requires patience. It’s important not to force trades when indicators are not in alignment. Waiting for confluence signals can prevent impulsive trades and improve your long-term success rate. 🔵𝙻𝙸𝙼𝙸𝚃𝙰𝚃𝙸𝙾𝙽𝚂 𝙾𝙵 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 While trading confluence can significantly enhance your trading strategy, it’s important to acknowledge its limitations: Overfitting : Relying on too many indicators can lead to overfitting, where the analysis becomes too complex, and signals become rare or conflicting. It's essential to strike a balance and avoid excessive complexity. Subjectivity : Confluence can be somewhat subjective, as traders might interpret the alignment of indicators differently. Developing a consistent and disciplined approach to identifying confluence is key. Delayed Signals : Waiting for multiple indicators to align can sometimes result in missed opportunities, especially in fast-moving markets. Traders should be aware of the trade-off between signal reliability and timing. 🔵𝙲𝙾𝙽𝙲𝙻𝚄𝚂𝙸𝙾𝙽 Trading confluence is a powerful concept that can enhance the quality of your trading decisions by providing more reliable signals and reducing the risk of false positives. By combining complementary indicators, analyzing multiple time frames, and incorporating both technical and fundamental analysis, traders can increase their confidence and improve their overall performance. However, it’s important to remain mindful of the potential limitations and to apply confluence in a disciplined and balanced manner. By mastering trading confluence, you’ll be better equipped to navigate the complexities of the market and make informed decisions that align with your trading goals.
VANTAGE:SP500Education
by BigBeluga
3
Simple charts and methods can make money!It's a late summer Saturday afternoon and I am writing this so you don't have to! Lot's of people don't have time to watch the market all day and night. Here is a bare bones daily chart that you can easily construct from default configured Trading View community indicators and even more easily discern the correct market position. ONLY BE IN THE MARKET WHEN THE PRICE IS ABOVE OR BELOW BOTH INDICATORS. Configure TV Alerts from the SPX price cross of the indicators and be on your way. I position in pre and post SPX ETF markets off this chart Happy Trades! And now I'm going fishing. DAP
TVC:SPXEducation
by anotherDAPTrader
NIFTY50: Comparative study of all major Indices.f we consider 27th Oct 2023 as BASE LINE (i.e from where the Current Rally Starts) Here are the comparison of major indices as now (Base line treat as 0%) CAC (French Index): +35.07% NASDAQ (US Tech Index): +32.02% NIFTY50 (NSE India INDEX): +31.29% SP500 (US large 500 Company index LIKE in NSE NIFTY500): +31.03% DAX (GERMANY Index) : +24.61% DJI (Dow Jones Industrial Avg USA Index) +24.46% NIKKEI (Index of JAPAN): +15.19% UK100 (Index from United Kingdom Previously Known as FTSE): +12.27% HANSSENG (Index of HONGKONG): +0.26% SSE (Shanghi Composite China): -8.35% INDIAAN RUPEE Vs US Doller: +0.87% INDIAAN RUPEE Vs EURO: +6.09% (Good for TCS Like Stocks) US Doller Vs EURO (Currency of EUROPIAN Uniom): +4.69% Conclution: 1. Indian Indices is farely valued compare to NASDAQ & S&P500 2. Moderate OVERSTRETCHED CCompare to DAX & DOW Jones.
NSE:NIFTYEducation
by DSKF16
Trade what you see, not what you think or hope!There’s no better time to post this educational article than right now. Despite constantly reminding myself to "trade what you see, not what you think or hope," two days ago I did the exact opposite. I ignored a clear double Pin Bar formation at a support level, which resulted in me taking a stop loss. Ironically, I knew better. But, as the saying goes, "Do as the preacher says, not as the preacher does." Let’s dive deeper into this vital concept—how emotions and our tendency to predict or hope for the market’s next move can lead us astray, and why sticking to what the charts show is crucial for long-term trading success. Trade What You See, Not What You Think or Hope In trading, the temptation to predict the market’s movement based on gut feeling, emotions, or even hope is always present. Whether you’re new to trading or experienced, this temptation can lead you to stray from your strategy, often with disastrous results. Successful traders have mastered the discipline of relying on objective data—what they see on the charts—and they minimize the influence of personal bias or emotional decision-making. In this section, we will cover why trading what you see is essential, the pitfalls of emotional trading, and strategies to remain focused. 1. The Pitfall of Predicting the Market One of the biggest mistakes traders make is attempting to outsmart the market by predicting its next move based on feelings or speculation. It's a lot like gambling. For instance, after a loss, traders may try to "get back" at the market by forcing trades or doubling down, just as a gambler would after a bad hand. This reactive behavior is the opposite of trading based on logic and a structured plan. In fact, reacting emotionally after a loss or even after a win (due to overconfidence) creates patterns of erratic trading. Instead, traders should stick to price action setups and predefined trading strategies. 2. Objectivity Over Emotion Trading involves acknowledging that the market doesn’t care about your emotional state. It’s not personal. And yet, so many traders get emotionally attached to their trades, thinking they can make the market to move in their favor. Instead, your goal should be to detach emotionally from individual trades and focus on the larger picture: is the setup you are seeing aligned with your strategy? No matter how perfect a setup looks, you should never become overly confident or emotionally invested in a trade. Always maintain your risk management, even if you are sure this trade is a “winner.” 3. Emotions Can Be Deceptive Your mind can play tricks on you, especially when you're hoping for a specific outcome. Often, traders get caught up in their ideas of where they "want" the price to go, or what they "think" the market "should" do. This can cloud judgment and lead to chasing trades, forcing setups where none exist. Price action on the chart is objective. It doesn’t care about your opinions. By focusing on clean price action patterns and setups, you will avoid being misled by your own expectations. 4. Stick to Your Trading Plan One of the most effective ways to ensure you're trading based on what you see is to stick to your trading plan. Every trade should be in line with the rules you’ve set in advance, whether that’s for entering, exiting, or managing risk. Deviating from your plan because of a gut feeling can quickly turn a good strategy into a string of bad decisions. Ask yourself: Is there a clear setup here, or am I just trying to make one up? Does this trade align with my strategy and risk management rules? 5. Trust What the Charts Show You The key takeaway is that no matter how tempting it is to speculate or act on emotions, the price action is your guide. Trust what the charts show you, even if it contradicts what you “feel” should happen. For instance, ignoring a perfect Pin Bar setup because you “hope” for a retracement can result in missed opportunities or losses. Ultimately, price action trading boils down to looking at what the chart is telling you and not what you want it to say. Have a nice weekend! Mihai Iacob
OANDA:XAUUSDEducation
by Mihai_Iacob
Learn 7 Types of Liquidity Zones in Trading In the today's article, we will discuss 7 main types of liquidity zones every trader must know. Just a quick reminder that a liquidity zone is a specific area on a price chart where a huge amount of trading orders concentrate. Read carefully, because your ability to recognize and distinguish them is essential for profitable trading. 1. Fibonacci Zones The zones based on Fibonacci levels can concentrate the market liquidity. Classic Fibonacci retracement levels: 0,382; 0,5; 0,618; 0.786 and Fibonacci Extension levels: 1,272; 1,414; 1,618 attract market participants and the liquidity. Above, you can see an example of a liquidity zone based on 0,618 retracement level. The reaction of the price to that Fib.level clearly indicate the concentration of liquidity around that. Also, there are specific areas on a price chart where Fibonacci levels of different impulse legs will match. Such zones will be called Fibonacci confluence zones. Fibonacci confluence zones will be more significant Fibonacci based liquidity zones. Above, is the example of a confluence zone that is based on 0,618 and 0,5 retracement levels of 2 impulses. The underlined area is a perfect example of a significant liquidity zone that serves as the magnet for the price. 2. Psychological Zones Psychological zones, based on psychological price levels and round numbers , quite often concentrate the market liquidity. Look at a psychological level on WTI Crude Oil. 80.0 level composes a significant liquidity zones that proved its significance by multiple tests and strong bullish and bearish reactions to that. 3. Volume Based Zones The analysis of market volumes with different technical indicators can show the liquidity zones where high trading volumes concentrate. One of such indicators is Volume Profile. On the right side, Volume Profile indicate the concentration of trading volumes on different price levels. Volume spikes will show us the liquidity zones. 4. Historic Zones Historic liquidity zones will be the areas on a price chart based on historically significant price levels. Market participants pay close attention to the price levels that were respected by the market in the past. For that reason, such levels attract the market liquidity. Above, you can see a historically significant price level on Silver. It will compose an important liquidity zone. 5. Trend Lined Based Zones Quite often, historically significant falling or rising trend lines can compose the liquidity zones. Above is the example of an important rising trend line on GBPJPY pair. Because of its historical significance, it will attract the market liquidity. Trend lined based liquidity zone will be also called a floating liquidity area because it moves with time. 6. Technical Indicators Based Zones Popular technical indicators may attract the market liquidity. For example, universally applied Moving Average can concentrate huge trading volumes. In the example above, a floating area around a commonly applied Simple Moving Average with 50 length, acts as a significant liquidity zone on EURJPY. 7. Confluence Zones Confluence zones are the liquidity zones based on a confluence of liquidity zones of different types. For example, a match between historic zones, Fibonacci zones and volume based zones. Such liquidity zones are considered to be the most significant. Look at the underlined liquidity zone on US100 index. It is based on a historical price action, psychological level 17000, significant volume concentration indicated by volume indicator and 618 Fibonacci retracement. Always remember a simple rule: the more different liquidity zone types match within a single area, the more significant is the confluence zone. Your ability to recognize the significant liquidity zones is essential for predicting the market movements and recognition of important reversal areas. Liquidity zones are the integral element of various trading strategies. Its identification and recognition is a core stone of technical analysis. Study that with care and learn by heart all the liquidity types that we discussed today. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
GOLDEN ZONE TRADINGFibonacci retracements and extensions are technical analysis tools that use the Fibonacci sequence to identify potential support and resistance levels in financial markets. They are based on the mathematical concept that the ratio between any two consecutive numbers in the Fibonacci sequence approaches the golden ratio (approximately 1.618) as the numbers get larger. Fibonacci Retracements: Calculate levels: Fibonacci retracements are calculated by dividing the price difference between a high and a low by the Fibonacci ratios (0.000%, 23.6%, 38.2%, 50.0%, 61.8%, 100.0%). Identify support and resistance: The resulting levels are plotted on the chart to identify potential support and resistance areas. Trading strategy: Traders can use Fibonacci retracements to enter trades at support levels and exit trades at resistance levels. Fibonacci Extensions: Calculate levels: Fibonacci extensions are calculated by extending the price movement beyond a high or low by the Fibonacci ratios (1.618, 2.618, 4.236). Identify potential targets: The resulting levels are plotted on the chart to identify potential price targets for a move. Trading strategy: Traders can use Fibonacci extensions to set profit targets for their trades. Golden Zone Trading: The term "golden zone" is often used in conjunction with Fibonacci retracements and extensions. It refers to the area between the 38.2% and 61.8% retracement levels, which is considered to be a high-probability zone for price reversals or continuations. Trading Strategies: Buy at 38.2% retracement: If the price retraces to the 38.2% level and shows signs of bullish reversal (e.g., a higher low), traders can consider buying with a target at the 61.8% extension level. Sell at 61.8% retracement: If the price retraces to the 61.8% level and shows signs of bearish reversal (e.g., a lower high), traders can consider selling with a target at the 61.8% extension level on the downside. Use in combination with other indicators: Fibonacci retracements and extensions can be used in combination with other technical indicators (e.g., moving averages, RSI) to improve the accuracy of trading signals. Important Considerations: Subjectivity: Fibonacci analysis is a subjective tool, and the exact levels used may vary among traders. Market conditions: The effectiveness of Fibonacci tools can vary depending on market conditions and the specific asset being traded. Risk management: As with any trading strategy, it is important to use proper risk management techniques to protect your capital. Additional Tips: Practice: The best way to learn how to use Fibonacci tools effectively is to practice on historical data. Combine with other analysis: Consider using Fibonacci tools in combination with other forms of technical analysis, such as chart patterns or support and resistance levels. Be patient: Trading using Fibonacci tools often requires patience, as it may take time for price to reach the desired levels. Remember: While Fibonacci retracements and extensions can be a valuable tool for traders, they are not infallible. It is important to use them in conjunction with other forms of analysis and to always practice good risk management.
CAPITALCOM:GOLDEducation
by Trade_With_Prakash
Two Roads to Profit. A Comparison of ICT/SMC and Advanced VSAHello traders and investors! When we start engaging in trading and investing, we get acquainted with various methods of forecasting price movements. Gradually, if we have enough persistence, strength, and patience, we choose our own path to profitable trades. Among the most popular approaches, we can highlight the use of various oscillators and channels, Dow Theory, Elliott Waves, Fibonacci levels, supply and demand, Volume Spread Analysis (VSA), market auction theory, and the Inner Circle Trader/Smart Money Concept (ICT/SMC). Many traders combine elements from different approaches into their trading system. I personally prefer a concept I call Advanced VSA. It’s a comprehensive set of tools that combines ideas from VSA, Dow Theory, and Supply and Demand analysis. The name "Advanced VSA" perfectly captures the essence of the method, as it is fundamentally based on analyzing volume and price spread. Recently, the ICT/SMC concept has been gaining more and more popularity. Today, I want to explore the similarities and differences between ICT/SMC and Advanced VSA. If there are any inaccuracies in my explanation of ICT/SMC basics, feel free to correct me in the comments. Perhaps after reading this article, you’ll be able to decide which approach resonates more with you and which one you believe will help you in your trading. I hope this will be helpful. Let’s dive in! Basic Differences Before diving into the technical details, let's first clarify the key differences between these concepts. Who Controls Price Movements The ICT/SMC concept assumes that price movements are controlled by large players, such as market makers, who direct prices in the desired direction. This is similar to a model where one "center of power" determines the market's direction. In contrast, Advanced VSA is based on the idea that two forces influence price — the Buyer and the Seller. All analysis revolves around the interaction between these two sides, creating a more balanced model where both forces are equally important. Traded Volume The ICT/SMC concept does not use traded volume as a part of its analysis. In Advanced VSA, volume is an important factor. It is considered an integral part of the data that helps to understand market processes and the actions of participants. Now let’s move on to a detailed comparison of the elements of these concepts. What They Have in Common Both concepts teach traders to identify price ranges on the chart where a large player (Market Maker in ICT/SMC) or a Buyer (in Advanced VSA) shows interest in buying, and ranges where the Market Maker or Seller is interested in selling. When the price returns to these ranges, traders can execute buys or sells. We can call these price ranges contextual areas for buying and selling. Neither concept relies on technical indicators. Instead, they focus on the following key terms for identifying the trade direction and the trade entry point: Trend Trend break/half-trend Trend confirmation Accumulation/Distribution/Sideways movement/Flat Contextual areas for buying and selling The first four terms help determine the direction of the trade, while the fifth helps identify the entry point and the likely target of the trade. Both methods suggest using higher timeframes to find contextual areas and lower timeframes to find entry points within those areas. What Are the Differences The differences between the concepts lie in the interpretation of key terms. For the first four terms (trend, trend break, trend confirmation, accumulation/distribution/Sideways movement), the distinctions are minor and relate mostly to specific interpretations. However, the main differences arise in the rules for identifying contextual areas of interest (buyer, seller, or market maker). Let's look at these differences in more detail. Difference 1: Use of Volume In ICT/SMC, contextual areas of interest are determined solely based on price action and candlestick patterns, without taking traded volume into account. In contrast, Advanced VSA sees volume as an integral part of the analysis. contextual areas of interest are identified by both traded volume and price behavior (candlestick patterns). If there was interest from a buyer, seller in a specific price range, leading to a price change, it's logical to assume that the volume traded in that range should be higher than in previous periods over a similar timeframe. To illustrate the importance of using all available data for analysis, consider an analogy with choosing the best time for a seaside vacation. If the decision is based only on water and air temperature, while ignoring factors like wind or rainfall, the choice may be misguided. For example, choosing April for its comfortable temperature might result in encountering constant rain and high waves. Thus, in Advanced VSA, volume plays a crucial role, whereas it is absent in ICT/SMC. Difference 2: Types of Contextual Areas of Interest In ICT/SMC, the following types of contextual areas of interest are used: order block, breaker, mitigation block, and rejection block. All of these areas are formed by a specific arrangement of candles on the chart. In contrast, Advanced VSA operates with a different set of contextual areas of interest: effort, zone, and range (sideways movement). Effort refers to a single candle or bar that indicates significant market activity. Zone is formed by a sequence of candles or bars, taking into account their traded volumes. Range (sideways movement) is defined by a series of consecutive candles/bars where price fluctuates within a limited range, interacting alternately with the upper and lower boundaries of the range. It's only possible to identify which party (buyer, seller, or market maker) controls the range after the price breaks out and confirms the move. If the volumes align with Advanced VSA's criteria, order blocks and mitigation blocks in ICT/SMC can be considered as zones in Advanced VSA. So, not all order blocks and mitigation blocks will be considered zones in Advanced VSA. The breaker will be discussed separately, and there is no equivalent to the rejection block in Advanced VSA. Difference 3. Price Attraction Points In ICT/SMC, concepts such as fair value gap, liquidity void, and liquidity are used to describe price attraction points. In Advanced VSA, the terms fair value gap and liquidity void are not utilized. Most of the time, these ICT/SMC elements correspond to price interest points in Advanced VSA, such as effort. The term liquidity has the same meaning. Difference 4. Importance of Levels In Advanced VSA, levels play an important role in identifying trade opportunities. To understand the significance of levels, let’s first recall the concepts of trend and range (sideways movement). In both ICT/SMC and Advanced VSA, a trend is broken down into components, often referred to as impulses or expansion moves. A range, on the other hand, is characterized by its boundaries and the vectors of price movement between those boundaries. In Advanced VSA, important trading signals include the defense of a broken level or a price retracement to a level followed by its defense. In Advanced VSA, the defense of a broken level or the cancellation of a breakout (where the price returns back behind the broken level) followed by a defense of that level is considered a signal for identifying trades. This method helps traders spot potential entry points where either buyers or sellers to protect a key price level, giving more confidence in the direction of the market. The most important levels include the base of the last impulse, the boundaries of a range, and the test level of a zone. In ICT/SMC, there are no direct equivalents of these elements when it comes to searching for trades. However, breakers and sometimes mitigation blocks serve similar purposes to the levels in Advanced VSA, but the approaches differ. In ICT/SMC, trades are typically executed within the breaker or mitigation block, whereas in Advanced VSA, trades are found when a level is defended: buy trades above the level (supported by buyers), and sell trades below the level (supported by sellers). Additionally, Advanced VSA allows for trading within ranges, moving from one boundary to the other, as long as the boundaries are defended. Summary Despite the shared terms and similar approaches, there are significant differences between the two concepts: Number of forces influencing price movement: In ICT/SMC, it is believed that price is controlled by a single force, the Market Maker (MM). In contrast, Advanced VSA considers the interaction of two forces—buyers and sellers—as driving price movements. Use of volume in analysis: ICT/SMC does not take traded volume into account during analysis, while in Advanced VSA, volume is a crucial element for identifying market forces and areas of interest. Use of levels for trade entries: In ICT/SMC, levels do not play an important role, whereas in Advanced VSA, levels one of the possible places for identifying potential trade setups. Good luck with your trading and investing!
OANDA:XAUUSDEducation
by AlexeyWolf
2
The Art of Candlestick Trading: How to Spot Market Turns EarlyBuckle up, TradingViewers! It's time to unravel the ancient secrets of candlestick patterns. Originating from an 18th-century Japanese rice trader, these patterns aren't simply red and green elements on your trading charts—they are the Rosetta Stone of market sentiment, offering insights into the highs and lows and the middle ground of buyers and sellers’ dealmaking. If you’re ready to crack the code of the market from a technical standpoint and go inside the minds of bulls and bears, let’s light this candle! Understanding the Basics: The Candlestick Construction First things first, let’s get the basics hammered out. A candlestick (or Candle in your TradingView Supercharts panel) displays four key pieces of information: the open, close, high, and low prices for a particular trading period. It might be 1 minute, 4 hours, a day or a week — candlesticks are available on every time frame. Here’s the breakdown: The Body : This is the chunky part of the candle. If the close is above the open, the body is usually colored in white or green, representing a bullish session. If the close is below the open, the color is usually black or red, indicating a bearish session. The Wicks (or Shadows) : These are the thin lines poking out of the body, showing the high and low prices during the session. They tell tales of price extremes and rejections. Understanding the interplay between the body and the wicks will give you insight into market dynamics. It’s like watching a mini-drama play out over the trading day. Key Candlestick Patterns and What They Mean Now onto the fun part — candlestick formations and patterns may help you spot market turns (or continuations) early in the cycle. The Doji : This little guy is like the market’s way of throwing up its hands and declaring a truce between buyers and sellers. The open and close are virtually the same, painting a cross or plus sign shape. It signals indecision, which could mean a reversal or a continuation, depending on the context. See a Doji after a long uptrend? Might be time to brace for a downturn. The Hammer and the Hanging Man : These candles have small bodies, little to no upper wick, and long lower wicks. A Hammer usually forms during a downtrend, suggesting a potential reversal to the upside. The Hanging Man, its evil twin, appears during an uptrend and warns of a potential drop. Bullish and Bearish Engulfing: These are the bullies of candlestick patterns. A Bullish Engulfing pattern happens when a small bearish candle is followed by a large bullish candle that completely engulfs the prior candle's body — suggesting a strong turn to the bulls. Bearish Engulfing is the opposite, with a small bullish candle followed by a big bearish one, hinting that bears might be taking control of the wheel. The Morning Star and the Evening Star : These are three-candle patterns signaling major shifts. The Morning Star — a bullish reversal pattern — consists of a bearish candle, a small-bodied middle candle, and a long bullish candle. Think the dawn of new bullish momentum. The Evening Star, the bearish counterpart, indicates the onset of bearish momentum, as if the sun is setting on bullish prices. The Shooting Star and the Inverted Hammer : Last but not least, these candles indicate rejection of higher prices (Shooting Star) or lower prices (Inverted Hammer). Both feature small bodies, long upper wicks, and little to no lower wick. They flag price exhaustion and potential reversals. Trading Candlestick Patterns: Tips for Profitable Entries Context is King : Always interpret candlestick patterns within the larger market context. A Bullish Engulfing pattern at a key support level is more likely to pan out than one in no-man’s-land. Volume Validates : A candlestick pattern with high trading volume gives a stronger signal. It’s like the market shouting, “Hey, I really mean this move!” Confirm with Other Indicators : Don’t rely solely on candlesticks, though. Use them in conjunction with other technical tools like RSI, MACD, or moving averages to confirm signals. Wrapping It Up Candlestick patterns give you a sense for the market’s pulse and offer insights into its moment-to-moment sentiment — is it overreacting or staying too tight-lipped. Mastering candlesticks can elevate your trading by helping you spot trend reversals and continuations. These patterns aren’t foolproof — they are powerful tools in your trading toolkit but require additional work, knowledge and context to give them a higher probability of confirmation. It’s time to light up those charts and let the candlesticks illuminate your trading path to some good profits!
Editors' picks
Education
by TradingView
6