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Trend Analysis

GAIL: This is why People lose moneyThis is one important case study as to why investors lose money in the stock market. Now if you look at the chart, Here is what you see: 1. 32 Months of pure range-bound consolidation 2. Clearly defined support and resistance zones 3. Five months of consolidation at the resistance zone 4. A beautiful high-volume breakout followed by a retest. 5. This is one textbook setup for a long trade So, We should go long here, right? If I zoom out of the chart, Here is what you will see. - We have a strong resistance zone sitting just above the breakout level. - The price took a strong rejection from the exact resistance zone. Also, Observe the volatile consolidation zone that lasted almost 2 Years. That volatile zone may not be passed through in one instant. What we investors do is draw conclusions based on partial data and predict the price action that is yet to come. What we fail to do is observe the previous price action in its entirety. Does that mean that GAIL will not rise in value, Absolutely not. It just means that the uncertainty it has on the charts for a mere 10% gain ( breakout to ATH Distance) is super high. The market is full of opportunities. Why invest in something that already has a foreseeable red flag? If you liked the read, Would you give us a boost and a follow for our efforts? Have Requests, Questions, or Suggestions? Let us know in the comments below.👇 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:GAILEducation
by TheChartereds
16
Asymmetric Risk Reward: The Secret to Success in Trading?Be as bold as you want yet protect your capital with the asymmetric risk reward strategy — an approach adopted by some of the greatest market wizards out there. In this Idea, we distill the concept of asymmetric bets and teach you how to risk little and earn big. Spoiler: legendary traders George Soros, Ray Dalio and Paul Tudor Jones love this trick. Every trade you open has only two possible outcomes: you either turn a profit or make a loss. Perhaps the greatest thing you can learn about these two outcomes is the balance between them. The fundamental difference between making money and losing money — the mighty risk-reward ratio . The risk-reward ratio is your trade’s upside relative to the downside you baked in (or realized). Let’s Break It Down 🤸‍♂️ Most traders believe that you have to take huge risks to be successful. But that’s not what the big guys in the industry do with the piles of cash they’ve got. Instead, they try to take the least amount of risk possible with the most upside. That’s what asymmetric risk-reward ratio means. Think of it this way: you invest $1 only if you believe you can ultimately make $5. Now your risk-reward ratio is set at 1:5, or a hit ratio of 20%. Safe to say that you’ll likely be wrong lots of times. But step by step, you can risk another dollar for that $5 reward and build up a good track record or more wins than losses. That way you can be wrong four times out of five and still make money. Let’s scale it up and pull these two further apart. Let’s say you want to chase a juicier profit with a small risk. You can pursue a risk-reward ratio of 1 to 15, meaning you risk $1 to make $15. The odds are very much in your favor — you can be wrong 14 times out of 15 and still break even. What Does This Look Like in Practice? 🧐 Suddenly, the EUR/USD is looking attractive and you’re convinced that it’s about to skyrocket after some big news shakes it up. You’re ready to ramp up your long position. Now comes decision time — what’s a safe level of risk relative to a handsome reward? You decide to use leverage of 1:100 and buy one lot (100,000 units) at the price of $1.10. That means your investment is worth €1,000 but in practice you are selling $100,000 (because of the leverage) to buy the equivalent in euro. In a trade of that size one pip, or the fourth figure after the decimal (0.0001), carries a value of €10 in either direction. If the exchange rate moves from $1.1000 to $1.1100, that’s 100 pips of profit worth a total of €1,000. But if the trade turns against you, you stand to lose the same amount per pip. Now, let’s go to the practical side of things. You choose to widen the gap between risk and reward and aim for profit that’s 15 times your potential loss. You set your stop loss at a level that, if taken out, won’t sink your account to the point of no return. Let’s say you run a €10,000 account and you’ve already jammed €1,000 into the trade. A safe place to set your stop loss would be a potential drawdown of 2%, or €200. In pip terms, that’s equal to 20 pips. To get to that 1:15 ratio, your desired profit level should be 300 pips, aiming for a reward of €3,000. If materialized, the €3,000 profit will bump your account by 30% (that’s your return on equity), while your return on investment will surge 200%. And if you take the loss, you’d lose 2% of your total balance. It’s How the Big Guys in the Industry Do It You’d be surprised to know that most of the Wall Street legends have made their fortunes riding asymmetric bets. Short-term currency speculator George Soros explains how he broke the Bank of England with a one-way bet that risked no more than 4% of his fund’s capital to make over $1 billion in profits. Ray Dalio talks about it when he says that one of the most important things in investing is to balance your aggressiveness and defensiveness. “In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” Paul Tudor Jones, another highly successful trader, spotlights the skewed risk-reward ratio as his path to big profits. “5:1 (risk /reward),” he says in an interview with motivational speaker Tony Robbins,” five to one means I’m risking one dollar to make five. What five to one does is allow you to have a hit ratio of 20%. I can actually be a complete imbecile. I can be wrong 80% of the time, and I’m still not going to lose.” What’s Your Risk-Reward Ratio? 🤑 Are you using the risk-reward ratio to get the most out of your trades? Do you cut the losses and let your profits run by using stop losses and take profits? Share your experience below and let’s spin up a nice discussion!
Editors' picks
Education
by TradingView
7
Sectoral Analysis in the beginning of the monthWe use our Customised Indicator called ECG to mark the most important support and resistance zones for the price in the respective time frame. Here we have plotted the index charts on day time frame which gives us the levels for positional trades which are valid for the whole month of August 2024.. Now the yellow colour lines form a zone which makes the home of the price.. Upper yellow line is the breakout line and the lower yellow line is the breakdown line. So if the price gives a valid crossover above the breakout then it is a bullish indication and if the price closes below the breakdown then it is a bearish indication. Above the Breakout zone we have the Upper PRZ zone which is a potential reversal zone and similarly below the breakdown level there is Lower PRZ zone.. the PRZ zones marked in red colour act as a trend changer and major moves are expected from these zones.. the zones are small hence they create good value proposition for us. Beyond the PRZs both on upper and lower end we have the cycle targets depicted in green colour. So when the month starts we can refer to our Sector Analyser chart Setup and see which sector is looking good for the month and how they are progressing. We can also identify early change in trends from the PRZ zones. We usually refer to the chart once in a day or at EOD to make our analysis.
NSE:CNXINFRAEducation
by VineetJain_TradingSiksha
Unlocking the Power of Option Analysis for Forex TradingFiltering Options by Sentiment: A Key to Profitable Trading As traders, we're constantly on the lookout for ways to gain an edge in the markets. Option portfolios analysis is not a magic solution for success itself, but it can and should be a great tool to add to your trading strategy. Learning how to analyze the option portfolios of big and successful players on one of the world's biggest exchanges can really improve your market awareness and give you more confidence when reading the current market trends. The Power of Option Analysis Option analysis is not just about identifying bullish or bearish sentiment. It's about understanding the nuances of market psychology and identifying opportunities that others may be missing. By filtering options by sentiment, we can identify portfolios that are more likely to result in profitable trades. Key Factors to Consider When filtering options by sentiment, there are several key factors to consider: 1. Size and value of the option portfolio 2. Distance from the central strike (Delta) 3. Time to expiration 4.Appearance on the rise/fall of the underlying asset By considering these factors, we can identify option portfolios that are more likely to result in profitable trades. As mentioned above, option portfolios with names such as vertical spread, butterfly, and condor (in English - VERTICAL SPREAD, IRON FLY/FLY, CONDOR/IRON CONDOR) have predictive sentiment regarding the direction of the asset's price movement. However, it is critically important to be able to filter out such sentiment, since similar portfolios are widely used and appear almost daily in CME exchange reports, but only a small percentage of them have predictive value. Portfolios that are traded during a price movement with an obvious trend have low value. On the other hand, if a portfolio appears in a sideways market before the start of a trend and meets other conditions, which will be discussed later, it is reasonable to fix such a portfolio on the chart and subsequently track its correction (closure/partial closure/re-sale). If you "caught" such a portfolio that is already generating profit for its owner, i.e., the price is moving in the desired direction, you get an additional bonus: by tracking changes in this portfolio, you can understand whether the price movement will continue in the chosen direction or whether the movement is fading or has exhausted its potential and it's time to close your position. It is necessary to track changes daily using QuickStrike and GlobexTradeBrowser by CME GROUP. If you track less frequently, you can lose the thread of sentiment. I recommend performing analysis on a regular basis. Some examples: On July 17th, there was a really big beat on the Japanese yen in the options market for October. The bed was based on the idea that the yen futures would go up (or the dollar/yen forex rate would fall). As we saw, the bat started to pay off almost immediately, and the yen came really close to the target in just a few days! Could we have used this information for forex trading? Absolutely. The risk-reward ratio on this trade was about 1 : 3, but importantly , when we made this trade, we had real insider information. Insiders are required by the exchange to disclose their trades, just like other market participants. Not using this free information in your trades would be a big mistake for a serious trader who doesn't want to gamble in market. Another example: In April this year, we saw a strong bullish option sentiment for Silver prices rising between $32 and $35, based on a large options portfolio stated at around $27.5. We released our forecast for Silver, and you can find a copy of it with our reasoning at the link Cooper example: The forecast was made after analyzing option activity on the CME exchange on April 2. You can check the results yourself and see if the time we spent studying option sentiment and analyzing was worth it. In conclusion, as you can see, incorporating option analysis into your toolkit can really help you make more informed trading decisions. To all serious traders, I wish you patience and dedication on your journey to trading success. Remember that mastering the art of trading takes time, effort, and perseverance. Don't be discouraged by setbacks or losses, but instead, use them as opportunities to learn and improve. Stay focused, stay disciplined, and stay committed to your goals.
Education
by ClashChartsTeam
4
Trade out of balance markets like a pro (simple TPO concept)Educational video explaining in simple terms how to identify out of balance markets and use that in your day trading. It simplifies the concepts of James Dalton from "Mind over Markets" using volume profile and TPO charts and breaks it down into actionable steps. It also covers the thinking of Stacey Burke, with price always "trading in a box". You learn the meaning of value area, point of control, other timeframe traders and out of balance markets. You learn how institutional traders act in the market and how to observe and identify what they are doing and how to follow them. This can lead to massively profitable setups and trades
OANDA:XAUUSDEducation
by TC888
Prop Trading - All you need to know !!A proprietary trading firm, often abbreviated as "prop firm," is a financial institution that trades stocks, currencies, options, or other financial instruments with its own capital rather than on behalf of clients. Proprietary trading firms offer several advantages for traders who join their ranks: 1. Access to Capital: One of the most significant advantages of working with a prop firm is access to substantial capital. Prop firms typically provide traders with significant buying power, allowing them to take larger positions in the market than they could with their own funds. This access to capital enables traders to potentially earn higher profits and diversify their trading strategies. 2. Professional Support and Guidance: Many prop firms offer traders access to experienced mentors, coaches, and support staff who can provide guidance, feedback, and assistance. This professional support can be invaluable for traders looking to improve their skills, refine their trading strategies, and navigate volatile market conditions. 3. Risk Management Tools: Prop firms typically have sophisticated risk management systems and tools in place to help traders monitor and manage their exposure to market risks. These systems may include real-time risk analytics, position monitoring, and risk controls that help traders mitigate potential losses and preserve capital. 4. Profit Sharing: Some prop firms operate on a profit-sharing model, where traders receive a share of the profits generated from their trading activities. This arrangement aligns the interests of traders with those of the firm, incentivizing traders to perform well and contribute to the overall success of the firm. Overall, prop firms provide traders with access to capital, technology, support, and learning resources that can help them succeed in the competitive world of trading. By leveraging these advantages, traders can enhance their trading performance, grow their portfolios, and achieve their financial goals.
OANDA:XAUUSDEducation
by Snick3rSD
2
What is Confluence ?✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification !!Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD
Why a 30 to 50 Pips Fluctuation Means Little for XAU/USDUnderstanding Pips and Price Context In the world of forex trading, a pip (percentage in point) represents the smallest price movement in the market. For commodities like gold (XAU/USD), a pip is typically 0.01. Therefore, a fluctuation of 30 to 50 pips in gold translates to a movement of 3 to 5 USD in price. Currently, the price of gold (XAU/USD) hovers around 2400 USD per ounce. In this context, a movement of 30 to 50 pips, equating to 3 to 5 USD, is relatively minor. To put this into perspective, it’s akin to a stock priced at 100 USD experiencing a movement of only 0.13 to 0.20 USD. Gold's Historical Volatility Gold is renowned for its volatility, influenced by a myriad of factors including geopolitical tensions, economic data, inflation rates, and currency fluctuations. Historical data demonstrates that gold prices can swing dramatically within short periods. For instance, during times of economic uncertainty or geopolitical strife, gold prices can move by tens or even hundreds of dollars in a matter of days or even hours. Geopolitical Events: During geopolitical crises, such as wars or major political upheavals, gold prices often experience significant spikes as investors flock to safe-haven assets. Economic Indicators: Economic data releases, like non-farm payrolls, GDP figures, and interest rate decisions, can cause substantial and rapid fluctuations in gold prices. Market Sentiment: Changes in market sentiment, driven by news, investor behavior, and speculation, can also lead to large price movements. Why 30 to 50 Pips is Insignificant Given gold's price of 2400 USD per ounce and its historical volatility, a fluctuation of 30 to 50 pips is relatively insignificant. Here's why: Percentage Impact: A 50-pip movement at a price level of 2400 USD is just 0.21% of the total price. This is a minor change, especially in a market as volatile as gold. Daily Fluctuations: It's not uncommon for gold prices to fluctuate by more than 1% within a single trading day. This means price movements of 24 USD or more are typical, overshadowing a 3 to 5 USD change. Trading Noise: In the context of gold trading, small pip movements often represent normal market noise rather than meaningful trends. Professional traders focus on larger movements to make informed decisions, as these are more indicative of market direction. Practical Implications for Traders For traders and investors, understanding the relative insignificance of small pip fluctuations is crucial. Here are some practical takeaways: Risk Management: Traders should set their stop-loss and take-profit levels considering the high volatility of gold. Small pip fluctuations should not trigger premature exits from trades. Strategic Focus: Swing trends and significant price levels (like psychological barriers at round numbers or technical important zones) are more important than minor intraday movements. Market Analysis: Analyzing gold requires looking at broader economic and geopolitical factors rather than getting caught up in small pip changes. Conclusion: In summary, a 30 to 50 pip fluctuation in XAU/USD is relatively meaningless when considering the broader context of gold's price and inherent volatility. At a price level of 2400 USD per ounce, such movements are minor and often lost in the daily trading noise. Traders and investors should focus on larger price movements and underlying market factors to make informed decisions in the volatile gold market.
OANDA:XAUUSDEducation
by Mihai_Iacob
4
Trading EURUSD | Judas Swing Strategy 30/07/2024Risk management ought to be a trader's closest ally, as the previous week demonstrated the practical significance of incorporating risk management into every trader's toolkit. Last week, we executed four trades; despite having only one win and three losses, we concluded the week with a mere 1% loss on our trading account. This has heightened our excitement for the opportunities that this week may present. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone The next 5 minute candle swept liquidity resting at the low of the zone, which meant our focus would be on identifying potential buying opportunities for the trading session. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Please note that our stop loss is set at the low of the price leg that broke structure, and we implement a minimum stop loss of 10 pips. The minimum stop loss value was not chosen randomly; it was determined through extensive backtesting. This allows trades sufficient space to fluctuate, avoiding premature stop-outs and trades later moving in our anticipated direction. After 15 minutes, a large bearish marubozu candle formed, which could have exited us from the trade if we had set our stop loss solely based on the low of the price leg that broke structure, without including a minimal stop loss in our checklist. By using that price leg, our stop loss would have been around 6 pips, whereas a 10 pip stop loss provides the trade with sufficient breathing room. We are aware that our strategy does not guarantee a 100% win rate but rather hovers around 50% on EURUSD, indicating that some losses were inevitable. To avoid becoming emotional over the position, we used only 1% of our trading account with the goal of achieving a 2% gain. Upon checking our position later, we observed that the position was a few pips away from hitting SL. We remained calm despite the drawdown we were experiencing and were prepared for any outcome of the trade. All that was left was to wait for either our stop loss or take profit to be triggered to determine the result of our trade. A few hours later, the trade began to move in our favor. After 13 hours, our Take Profit was triggered, and our patience paid off as we hit our target on EURUSD, resulting in a 2% gain from a 1% risk on the trade.
Education
by CleoFinance
How to Use Artificial Intelligence for Stock TradingHow to Use Artificial Intelligence for Stock Trading As you may know, AI can mimic human intelligence and make decisions based on data analysis. Artificial intelligence can be used in stock trading to analyse historical market and stock data, generate investment ideas, form portfolios, and automatically buy and sell stocks. AI is able to quickly process huge amounts of data and make informed trading decisions. AI-based trading strategies can be used to identify patterns and trends in real time. This FXOpen article explores the process of using artificial intelligence in stock trading and highlights the pros and cons of AI automated trading. How Does Trading with AI Work? Using AI for trading stocks is a relatively new practice. AI analyses markets with accuracy and efficiency and makes forecasts that help traders mitigate risks and provide higher potential returns. Here’s an overview of how AI stock trading works. The first stage needed for an AI model to function properly is robust data collection and preprocessing. This stage is akin to gathering raw materials to create a final product. During the second stage, specialists load historical data and algorithms into the model, which serve as the basis for identifying trends and price fluctuations that took place in the past. This way, the model obtains the information it will then analyse and learns how to analyse it. During the third stage, the model uses real-time data from various sources, such as financial news and economic indicators, to make forecasts. As new data becomes available, the models can be adjusted and refined. The best AI stock trading software can only be created using cleaned, structured, and prepared data. The final stage includes making trading decisions, such as when to buy or sell stocks, based on the processed data. AI systems can execute trades automatically. AI can also manage investment portfolios by adjusting the allocation of assets depending on market conditions. What to Look Out for When Using AI in Trading When creating an AI system for trading, choosing the most appropriate algorithm is of paramount importance. There’s a wide range of algorithms; for example, support vector machines (SVMs) are well suited for classification tasks and recurrent neural networks (RNNs) for sequence prediction. The choice of algorithms depends on trading goals and the type of data a trader will be working with. It’s a good idea to look at performance metrics such as accuracy, precision, recall, and F1 score to determine which algorithm is the best fit for your trading strategy. If you decide to implement AI in stock market trading, you’ll need to pay attention to a few things that will allow you to minimise risks. Risk Management and Control Although AI offers many benefits in trading, it creates a new set of risks, in particular, the risk of automated decision-making. It’s important to have human oversight to ensure that the AI is making informed decisions. Human expertise helps identify potential risks and adjust the AI model as needed. Traders can take precautions, such as setting stop-loss and take-profit levels, to make sure that AI algorithms do not cause excessive losses. Data Quality Poor-quality data can lead to inaccurate predictions and incorrect trades. It’s important that the data uploaded to the system is accurate, relevant, and up-to-date and that the AI stock market trading software provider is trustworthy and reliable. Ideally, an AI system will continuously analyse incoming data and adapt to changing market conditions. For example, if an unexpected economic event occurs, the AI model must be capable of adjusting its strategies in real time. Regulatory Compliance The adoption of AI in trading also brings forth regulatory challenges. When using AI, it is critical to comply with financial regulations to avoid legal issues. This includes ensuring that the AI model is transparent and explainable and that it does not engage in illegal activities such as insider trading. AI trading strategies should comply with all relevant laws. Case Studies and Examples One real-life example of successful AI adoption in trading is the case of the hedge fund Renaissance Technologies, which uses proprietary trading algorithms based on artificial intelligence. The New York-based hedge fund has a reputation as one of the most successful investment companies in the world using AI. Bridgewater Associates, also one of the world’s largest hedge funds, uses AI to analyse market data and make trading decisions. The fund has been successful in using AI to identify patterns and trends in market data. The third example is the use of AI in high-frequency trading. High-frequency trading involves using algorithms to execute trades at high speed. AI makes it possible to execute trades with speed and accuracy that exceeds human capabilities. Benefits and Challenges of AI Trading The new technology has both advantages and pitfalls. Here’s a table summarising the benefits and challenges of using AI algorithmic trading. Benefits - Increased efficiency - Improved accuracy - Effective risk management - Real-time analysis - Diversified trading strategies - Enhanced liquidity management and execution of large orders - Improved decision-making Challenges - Low-quality data - Overfitting - Limited human oversight - Compliance with financial regulations - Cost - Potential for increased complexity - Potential for reduced transparency Using AI can result in increased efficiency, improved accuracy, effective risk management, and much more. Of course, there are other ways to analyse the market. For example, on the TickTrader trading platform, you can trade using advanced tools for analysing and assessing risks. Data quality issues, model overfitting, and limited human oversight are the potential risks that can hinder the effectiveness of trading. To mitigate these challenges, consider validating data, testing the model, and adapting to evolving market conditions. Final Thoughts AI allows traders to analyse vast amounts of data, identify patterns, and make informed decisions quickly. However, it’s important to manage and control the risks associated with the use of AI in trading. Carefully consider the challenges and limitations and endeavour to take steps to mitigate them. You can open an FXOpen account to start trading, and as you gain experience, consider implementing advanced technologies, including AI. 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.
NASDAQ:TSLAEducation
by FXOpen
6
Example of Divergence - USDJPYIn a forex chart, one expect the price on the chart and the value of the indicator to move in same direction. Well, sometimes the price and the indicator may show different movements. For example : On This Chart : The price movement on the main chart is clearly falling as the price keeps forming lower lows. Indicator Window : The indicator window(RSI in this case, any oscillator may be used) is moving upwards as it keep having higher highs as compared to the main chart. This is known as DIVERGENCE and in many cases I have seen, the price corrects after it's occurance. It helps keeping any eye on such. Please do your own analysis before placing any trades. Cheers and happy trading !!!!
Education
by FX_Wize
What Lot Size to Use in Forex for $10, $100, $1000 Account I will share with you a simple guide, that will help you to calculate a lot size for your forex trading account easily. In brief, let me explain to you why you should calculate a lot size for your trades. If you trade Forex with Fixed lot, you should be extremely careful. Too big lot size may lead too substantial losses or even blown trading account, while with a too small lot you may miss good profits. To calculate the best lot size, follow these 5 simple steps. 1. Make a list of all Forex pairs that you trade Let's say that you trade only major forex pairs: EURUSD, GBPUSD, USDJPY, USDCAD, NZDUSD, AUDUSD 2. Back test every pair and identify at least 5 past trading setups on each pair Above, you can see 5 last trades on each 6 major forex pairs. 3. Measure stop losses of each trade 4. Find the trade with the biggest stop loss in pips In our example, the biggest stop loss in on GBPUSD pair. It is 34 pips. Remember this number and the name of a currency pair. Why we need to do that? Your lot size will primarily depend on your risk in pips. For example, scalpers may have 10/15 pips stop losses, while swing traders may have even 100 pips stop losses. 5. Open a Forex position size calculator You can use any free calculator that is available. They are all the same. 6. Input your account size, 2% as the risk ratio and a currency pair with the biggest stop loss (GBPUSD in our example) In "stop loss in pips" field, write down the pip value of your biggest stop loss - 34 pips in our example. For the account size of 1000$, the best lot size to use 0.05 standard lot. The idea is that your maximum loss should not exceed 2% of your account balance, while the average loss will be around 1%. Remember to carefully back test your strategy and now exactly your maximum risks in pips, to make proper calculations! ❤️Please, support my work with like, thank you!❤️
Editors' picks
Education
by VasilyTrader
10
When to PAUSE Trading – NOT Stop – 4 TimesThere is a time where you might need to PAUSE with your trading. It will save you from a potential portfolio crash. And it happens either when – The market environment isn’t playing nice with your system. And there are moments when you need to step back from your trading. But even when you halt trading, it doesn’t mean you can just take a vacation and chill. No! The key is to track your performance each day, until the conditions improve. This will make sure, you’re poised to leap back in when the time is right. Let’s dive into the signs that it might be time to hit the pause button. Big Drawdowns Over 20% Picture this: Your portfolio is sliding, and suddenly, you’re staring at a 20% drawdown. It’s VERY rare – and I haven’t seen such downside since I started trading. But this applies to new traders who try to do too many things at once. Anyways, 20% is Ouch. If this ever happens, it’s a signal to halt trading and reassess. Then you’ll need to analyze and see what is going wrong. See if there is a flaw in your system. See if the market is the right one to trade your system with. Is it a market anomaly or is it psychological where you keep making silly mistakes. Remember, it’s about surviving to trade another day. Feeling Very Emotional with Trading Losses Trading is a game of numbers, not emotions. Now losses do sting. But that’s only when the risk is too high or you’re psychologically unable to handle them. The trick is to manage emotions and take countless trades (wins and losses), to lower the effect of the losses. But, if you find yourself riding an emotional rollercoaster with every loss, it’s time to halt. Trading with a cloudy mind, over emotions and fear is a recipe for disaster. Emotions can lead you to take impulsive and revenge trades. And this will lead to EVEN bigger losses. So, take a breather. Step away from the screens and give yourself time to cool off. Recenter your focus until you feel you have a clear, rational mindset for trading. A trader who controls their emotions controls their destiny. No Confirmed Strategy Trading without a plan is like navigating a minefield blind. If you’re unsure about your strategy or it’s not delivering consistent results, halt. Spend time to refine and optimise your approach. Backtest, analyze, and validate your strategy until you’re confident it can withstand the market’s ups and downs. Only then should you resume trading LIVE. A solid strategy is your roadmap to success. Do Not Trust Trading Trust is the cornerstone of trading. If you find yourself doubting the entire process, it’s a red flag. Maybe it’s because of repeated losses, unreliable signals, or just plain bad luck. Whatever the reason, if you don’t trust your trading, halt. You will manifest a very negative outlook on what trading can help generate you during your career. Remember trading is all about probabilities, risk and reward. Use this time to rebuild your confidence. Educate yourself, seek mentorship, and engage with the trading community. Trust isn’t rebuilt overnight, but with patience and perseverance, you’ll get there. Once you regain your trust, you’ll trade with renewed vigor and clarity. FINAL WORDS: The Power of the Pause Hitting the pause button isn’t a sign of weakness. It’s a powerful strategic move to know when something is NOT working. When you HALT trading you recognize when you need to protect your capital, preserve your mental health, and prepare for a stronger comeback. Always track your performance and be ready to adapt. Remember, the market isn’t going anywhere, and neither should you—just be smarter about your approach. Let’s sum up the times when you should HALT trading. Big Drawdowns Over 20%: Pause to reassess and prevent deeper losses. Feeling Very Emotional with Trading Losses: Step back to cool off and regain a clear mindset. No Confirmed Strategy: Refine and validate your approach before resuming. Do Not Trust Trading: Rebuild your confidence and trust in the process.
JSE:J200Education
by Timonrosso
2
Problems of Technical AnalysisProblems of Technical Analysis Trading is a complex endeavour that involves many factors. The ability to analyse markets is something that allows traders to overcome trading difficulties. Technical analysis is widely used by traders to make informed decisions about the price movements of various assets, including stocks, currency pairs, and cryptocurrencies*. Technical analysis and trading are inextricably linked, but while this method provides valuable insights, it also comes with a set of challenges. This FXOpen article discusses the challenges associated with technical analysis and suggests how traders can effectively overcome these challenges. Three Main Assumptions of Technical Analysis Technical analysis is based on the Dow Theory, which includes three basic principles and assumptions, namely: 1. The market discounts everything. Technical analysis assumes that everything that happens and can affect the market is reflected in its price. This means that the price will tell you everything you need to know. 2. Prices move in trends. According to technical analysts, even when the market is not moving in a uniform manner, prices will show trends, and this is independent of the time frame in question. 3. History tends to repeat itself. Technical traders try to identify recurring patterns in price because they have made the assumption that what has happened before in its formation is likely to happen again. Although technical analysis follows predetermined rules and principles, the interpretation of the results is not always right. Technical analysis is limited to the study of market trends and does not delve deeply into an instrument or industry to understand how it works. Critics of technical analysis argue that these assumptions may not be accurate. Below, you will learn more about the complexities of the analysis. Subjectivity in Analysis One of the main technical analysis problems is its inherent subjectivity. Traders often rely on various tools and indicators, such as moving averages, MACD, and Fibonacci retracements, to interpret price charts. The issue arises when traders misread patterns or interpret these tools incorrectly, leading to inconsistent results and trading decisions. To mitigate this challenge, traders typically establish clear and objective criteria for their analyses. This includes identifying specific entry and exit points based on predetermined trading rules. In addition, referring to experienced traders or using algorithmic trading strategies can help reduce the impact of subjectivity. Data Quality and Reliability Forex, stock, and crypto* markets are known for their high volatility, which can result in irregular price movements and gaps in historical data. Traders often rely on past price movements to make predictions about future developments. When the historical data is incomplete or inaccurate, practical technical analysis becomes less effective. Traders should be cautious about data quality, ensuring that they have access to reliable sources. The use of multiple data sources and cross-referencing will help identify and eliminate inconsistencies. In addition, the limitations of historical data should be recognised and not relied upon exclusively. Over-Reliance on Indicators Many traders become over-dependent on technical indicators, believing they hold the key to successful trading. Of course, technical analysis learning is important, and indicators are valuable tools, but relying solely on them can lead to trading errors. The problem is exacerbated when traders use too many indicators simultaneously, leading to information overload and conflicting signals. The possible response to this challenge is to select a few key indicators that align with your trading strategy and combine their signals with other analysis tools, including price action and fundamental events. Over time, traders develop the ability to interpret price action without relying only on indicators. This is a skill that can provide a more holistic view of the market. Limited Predictive Power Technical analysis primarily focuses on historical price data and patterns to predict future price movements. However, it’s crucial to acknowledge that past performance is not always indicative of future results. The markets are influenced by a wide range of factors, including economic data releases, geopolitical events, and central bank policies, which can override technical signals. To address this issue, traders should combine exploring technical analysis graphs with evaluating fundamental factors. Considering both technical and fundamental factors helps traders make more informed trading decisions and reduce the risk of being blindsided by unexpected market events. Traders need to stay informed and adaptive, even if they base their strategies on chart analysis. Emotional Trading Emotions play a significant role in trading, and technical analysis can sometimes exacerbate emotional decision-making. For example, if emotions overwhelm you during technical forex analysis, it may lead to mismanagement of trades and losses. Those who become too emotionally attached to their technical analysis may hesitate to cut their losses or take profits. System hopping is another common problem that stems from excessive impulsiveness. Traders may switch from one system or strategy to another in search of quick profits. However, this can result in confusion and inconsistency. Sticking to a trading plan and avoiding impulsive decisions can help mitigate emotional challenges. To overcome stress and prevent emotional decision-making, traders adopt disciplined risk management strategies, such as setting stop-loss orders and take-profit levels in advance. Traders calculate their risk-reward ratio to determine how much loss they can bear for the reward they are expecting. Time-Consuming Process Technical analysis can be time-consuming, especially for traders who engage in short-term trading strategies. Analysing charts, identifying patterns, and monitoring technical indicators in technical analysis is a demanding task. It could be difficult for traders with limited time to spare. The first method is to use clear and reliable trading tools with user-friendly UI. Consider the TickTrader trading platform, where you can find both simple and advanced tools and trade various assets. Another solution is to consider longer timeframes, as they require less frequent monitoring. Additionally, using automated trading systems helps traders save time while still benefiting from technical analysis insights. Final Thoughts Technical analysis is an invaluable tool in the trader’s arsenal, providing a structured approach to analysing price movements. However, it’s essential to be aware of the challenges associated with this method and take proactive steps to address them. Minimising subjectivity, using reliable data, avoiding over-reliance on indicators, and managing emotions help traders perform better in the market. Now that you know some valuable insights about trading, you can open an FXOpen account and start your journey with us. *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
10 Tips for All TradersIt’s always wise to revisit the basics of markets. The foundation of successful trading is built around continuous education, disciplined practice, and a willingness to learn. Here are 10 tips for all traders: 1. Education First: Educate yourself thoroughly in the market before you begin. Some of the smartest people on the planet trade daily, and before you go up against them, open a demo account to test your skills. 2. Create and Follow a Plan: Develop a trading plan with clear profit goals, risk tolerance, and a long-term view. Then, when you’re ready, stick to it for disciplined trading. 3. Find Your Strategy: Everyone has different goals in the markets and that means everyone will have a different approach to trading. It takes time, but if you stick with it, you will find it. 4. Set Your Risk Appetite: Define how much you are willing to risk per trade, and never trade with more than you can afford to lose. 5. Use Stop and Limit Orders: Manage risk and help protect profits with stop and limit orders, including trailing stops to secure gains as the market moves. 6. Control Your Emotions: Avoid "revenge trading" and stick to your plan. Do not let emotions drive your decisions, especially after a loss. 7. Maintain Consistency: Focus on consistent, disciplined trading. Stick to your plan with patience and maintain a positive edge. 8. Learn to Analyze Markets: Use both fundamental news and technical analysis tools to help identify trading opportunities and forecast market movements. 9. Stay Informed: Continuously update your knowledge of market trends and news to make informed trading decisions. 10. Review and Adjust: Regularly evaluate your trading plan and performance, adjusting as necessary to stay aligned with your goals. We hope you enjoyed these 10 tips and be sure to follow us for more content like this. We post daily charts here and now, have over 83,000 connected traders ) and followers. We look forward to sharing our insights with everyone!
Education
by FOREXcom
1
Why Interest Rates Matter for Forex TradersWhy Interest Rates Matter for Forex Traders Delve into the intricate world of forex, where interest rates stand as towering beacons guiding currency movements and trader strategies. From the fundamentals of central bank operations to the subtle nuances of the carry trade, uncover how they shape the global financial tapestry, dictating economic outcomes and trader fortunes. Understanding Interest Rates An interest rate is the cost of borrowing money or the return earned from lending, expressed as a percentage. Two primary types dominate the discourse: Central Bank Interest Rates Set by monetary authorities like the Federal Reserve, these rates often serve as the benchmark for short-term lending between banks. For instance, the federal funds rate in the US dictates interbank loans overnight, influencing liquidity and, by extension, currency value. Market Interest Rates Think LIBOR (London Interbank Offered Rate) – the rate at which banks lend to each other in the international interbank market. It, influenced by supply and demand dynamics, often fluctuates daily, making it a vital metric for traders who delve into currency swaps or forward rate agreements. In trading currency pairs, interest rates aren't mere numbers – they're indicators dictating strength, investment flows, and overall economic health. Interest Rates as Market Drivers In forex, interest rates emerge as crucial influencers. Acting as catalysts, they shape currency values, guide investment flows, and mould strategies traders employ. For those looking to take advantage of these forces, using a platform like FXOpen's TickTrader offers a competitive edge, ensuring traders have access to real-time data and advanced trading tools. Decoding Interest Rates in Forex Market Trends Interest rates wield enormous power in the global financial theatre, particularly in the dynamics of forex trading. One of the clearest relationships observed is between high interest rates and currencies. Elevated rates act as a magnet for foreign capital since investors constantly scout for better returns. This inflow requires the purchase of the country's currency, leading to its appreciation. Carry Trade and Interest Dynamics One such tactic to capitalise on rate disparities is the carry trade. Traders borrow funds in a currency with low rates and invest it in a currency yielding higher returns. The difference or the "carry" becomes their profit. The symbiotic relationship between interest rates and forex is deeply evident here. A sound grasp of the nuances of this strategy can lead to lucrative opportunities for seasoned traders. Interest Differentials: The Subtle Nuances Even minor variations in rates across nations can offer significant opportunities. These differentials between currency pairs influence their relative strengths. For instance, if Country A starts offering higher interest rates than Country B, it could lead to an appreciation of Country A's currency, interest rates playing the central role. Savvy traders continually analyse these differentials, strategising their trades to capitalise on the anticipated market movements. Central Banks and Monetary Policy Central banks hold a significant position in steering a nation's economic direction. One of their critical levers is the setting of interest rates. They directly impact the money supply and, subsequently, inflation levels. When inflation surges beyond targeted levels, central banks may raise rates to rein it in, as this will typically reduce consumer borrowing and spending. Conversely, when economies face downturns, they might reduce them, promoting borrowing and investment and aiming to boost economic activity. Thus, the delicate balance between inflation rates and interest rates is a testament to the central authorities’ pivotal role in economic stability. Monetary Policy Tools: Shaping the Financial Landscape Central banks use a variety of tools to implement their monetary policies: Open Market Operations By buying or selling government securities, these banks control the money circulating in the economy. Selling securities pulls money out of the market, leading to higher interest rates. Conversely, purchasing them injects money, pushing rates down. Reserve Requirements By altering the amount of money banks need to hold in reserve, central banks can influence the amount available for loans. A higher reserve means fewer loans, resulting in higher rates and vice versa. Forward Guidance and Quantitative Easing These are more nuanced tools. Forward guidance involves bank governors communicating their future plans, providing the market with a sense of direction. Quantitative easing, on the other hand, involves large-scale asset purchases to increase money supply and lower interest rates. Economic Indicators and Their Correlation with Interest Rates Economic indicators provide valuable insights into a country's financial health, and their fluctuations often influence monetary policy decisions. For instance, when inflation surpasses target levels, central banks might consider hiking them to temper the rising prices, leading to an interplay between foreign exchange and interest rates. A strong GDP growth signals a thriving economy, which might attract foreign investments. These inflows usually put upward pressure on the domestic currency. However, if the bank responds by raising rates, this may further amplify its strength. Thus, the effect of increasing interest rates on currency is often profound, making it a focal point for forex traders. Similarly, employment metrics, consumer sentiment, and manufacturing output are all vital indicators that economists monitor. Changes in these metrics might hint at upcoming monetary policy adjustments. Lastly, there are foreign currency loans and interest rates. When global rates are low, corporations might engage in foreign currency loans, seeking cheaper financing options. However, shifts in these rates can impact the cost of servicing these loans, leading to potential forex market volatility. The Bottom Line The dance between forex and interest rates is both complex and fascinating. As we've seen, interest rate trading offers profound insights and opportunities for those in the foreign exchange arena. For those eager to navigate these waters and capitalise on the intricate interplay of rates and currencies, opening an FXOpen account can be the gateway to informed, strategic trading in this dynamic market. 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.
Editors' picks
Education
by FXOpen
6
Reverse Bearish Divergence(I made a mistake, posted the wrong chart for the Reverse BULLISH Divergence, it was a reverse BEARISH one). Sorry :) Reverse Bearish Divergence , often referred to simply as "bearish divergence," occurs in technical analysis when the price of an asset makes higher lows while an oscillator (such as the Relative Strength Index (RSI), Stochastic, or MACD) makes lower lows. This situation suggests that a reversal of a bigger trend can happen soon.
BITSTAMP:BTCUSDEducation
by orbborisson
Types of Entry Models in SMC ConceptsIn Smart Money Concepts (SMC) trading, there are different types of entry models that traders use to enter the market. These include aggressive entry, actual entry, and order flow entry models. Here’s a simple explanation of each: 1. Aggressive Entry Model (15m): @Manipulation Entry Criteria: During Liquidity (LQ) Sweeps at Killzones + Stack Entries at Lower Time Frame (LTF, 1m) Description: Traders enter trades during significant liquidity sweeps, particularly in key market zones known as killzones (high-activity periods). They stack their entries by analyzing the 1-minute chart to find optimal entry points. This approach aims to catch early moves by entering immediately after liquidity has been swept, indicating potential reversals or strong market moves. Order Type: Market Order(post candle confirmation) Traders execute a market order as soon as their entry criteria are met on the 1-minute chart, entering the trade immediately at the current market price. Time Frame: 1 minute (LTF) 2. Actual Entry Model (15m): Post Manipulation Entry Criteria: At Valid Supply or Demand or Flip Zones Description: Traders enter trades at well-defined supply and demand zones or flip zones (areas where the market changes from supply to demand or vice versa). They wait for the price to reach these significant zones on the 15-minute chart, providing a more confirmed entry point that aligns with market structure and potential reversals. Order Type: Limit Order Traders place a limit order on the 1-minute chart at a specific price level they believe the market will reach, ensuring a better entry price. Time Frame: 1 minute (LTF) 3. Order Flow Entry Model (15m): @Distribution Entry Criteria: At Unmitigated Order Flow Description: Traders look for areas of unmitigated order flow on the 15-minute chart. Unmitigated order flow refers to price levels where significant orders have not yet been fully absorbed by the market, indicating potential areas of strong buying or selling pressure. Traders place their entries at these levels, often waiting for a candle confirmation to ensure the validity of the order flow analysis. Order Type: Limit Order (post candle confirmation) Traders wait for a candle confirmation on the 1-minute chart before placing a limit order. They analyze the order flow and wait for a confirming candle that aligns with their analysis before setting a limit order to enter the trade. Time Frame: 1 minute (LTF)
Education
by arjTradingofficial
Predicting Bitcoin's Cycle Using the Elliott Wave Theory, Part 2Hello traders. In this article, we dive deeper into another detailed way of seeing Bitcoin's potential end-of-cycle pattern. This is the 2nd part to the previous post that discusses Bitcoin's cycle using the Elliott Wave Theory - a comprehensive and subjective theory. Here, we will be exploring an alternative scenario that builds on our previous concept of Bitcoin fractals since its inception in 2009. By addressing some of the subjectivity in the wave theory and leveraging market psychology and algorithmic fractals, this post is aimed to provide another organized and insightful look at the structure of Bitcoin's price movements.
If you are interested in seeing the first scenario, here is a link for your convenience: For this alternative scenario, as mentioned above, it addresses some of the subjectivity that arises from the Elliott Wave Theory, specifically the observation of multiple 1-2 scenarios presented in our previous idea. Although the idea was supported by evidence from market psychology and algorithmic fractals, the problem arises by having the possibility of infinite 1-2 nested structures that works upon extending each internal wave - which is a pretty rare observation in any markets; however, Bitcoin has been able to withstand year by year and work on a pretty timely schedule. Based on the expectations, we used that observation to create the scenario of nested 1-2's. Nevertheless, due to its possible subjective count, this idea focuses more on the structural integrity of the basic 5-wave pattern and being able to fit the whole price action from inception as a 5-wave pattern.
 Simply put, this thesis aims to create a more organized structure. As many are still eager to determine how far Bitcoin might correct after this bull run ends, I hope this idea can also give you confidence to help build your own thesis.
 There is one thing that is for sure, however: the evidence portrayed from both of these scenarios strongly suggests that we will see higher levels before lower levels, though no theory can be 100% accurate, we could technically see a reversal even now. But my duty is to make sure to narrow down the scenarios as best as I can.
 For this specific idea, we have structured this whole move up as 5 waves since inception, sticking as closely as possible to the basic Elliott Wave model of the 5-wave impulse. To achieve this, we made some simple adjustments from the first thesis in the previous post.

The challenge for many arises when trying to fit a wave 3 that must be the longest or second longest wave compared to waves 1 and 5. In this chart, since primary wave 1 in yellow is the longest, wave 5 must be technically shorter than wave 3, which is a strict rule and must be obeyed.
 To accomplish this, we can use the 2017-2020 price action as a range initself for wave 4. Previously, we considered the pandemic crash as a technical bottom. If we use that as a sideways range, the only viable sideways patterns are triangles and flats (as we have exhausted the zigzag family correction patterns for wave 4 already). For more details on these patterns, please refer to the previous guide on triangle and flat patterns in my Elliott Wave Theory guide on my main page. By using the 2017-2020 range as a triangle, our subwave E has resulted in an extremely short subwave, known as a failure or truncation. After breaking out of the triangle, the next step is to figure out on how to form wave 5, which is the final part of the 5-wave motive impulse.
 Currently, the only way we can see wave 5 concluding is through a possible diagonal given the current data. Why? We would typically expect a basic 5-wave move for wave 5, but since wave 5 has to be short and wave 1 was extended, we do not expect the last primary wave 5 in yellow to be extended. Thus, the only remaining option is a possible diagonal pattern to complete wave 5, since we have also assumed it will be short due to wave 1 already being the longest wave and wave 3 being the 2nd longest wave.

This Ending Diagonal, which consists of 5 waves (unlike a Leading Diagonal, which appears in waves 1 or A), they are only observed in wave 5s or wave Cs.
 To construct our Ending Diagonal, the five subwaves must be zigzags (simple ABCs) or complex zigzags (WXYs). We are currently observing a mix of these, which is normal in diagonals: 
 * Subwave (1): ABC. Observed as a long wave A and short wave C. This can be debated, but longer wave As compared to wave Cs are not uncommon. * Subwave (2): WXY. A WXYXZ could fit as well like we observed in our previous post, but that deviates significantly from the traditional structure. A WXY is the next best alternative, and even that can be subjective as we typically observe simple ZigZags (ABCs) within diagonals. * Subwave (3): Currently being created. With the available data, it could be an ABC, though it may become more complex going forward. * Subwave (4) / (5) : To be determined. Must belong to the zigzag family.

 As we are still working on subwave (3) within the ending diagonal, the interest level for a pullback remains the same as in our previous idea, THAT IS THE KEY. This significant pullback could validate this idea, so we will monitor it up to that point.
 This larger picture presents a wide range between subwaves 4 and 5, similar to waves 1 and 2.
 Once subwaves 4 and 5 are created, it will technically terminate the larger degree wave 5 of the entire 5-wave impulse cycle. After termination, a significant downside correction is possible, potentially reaching levels as low as $3,000. Alternatively, we also have a completely different count where this cycle wave 1-2 may be already in play, and it can be achieved by using a larger flat idea that may also help with separation and further deepend subjectivity. Here is that approach: In conclusion, while the evidence strongly suggests that Bitcoin will reach higher levels before any significant correction, it is crucial to remain adaptable as market conditions evolve. The analysis presented here offers merely a potential roadmap. No theory can predict market movements with absolute certainty. By staying informed and considering multiple scenarios, investors can better navigate the complexities of the cryptocurrency market. I invite EVERYONE to share your thoughts and engage with this post in the comments below.
Editors' picks
INDEX:BTCUSDEducation
by XForceGlobal
109
Reverse bullish divergence on BTCUSDReverse bullish divergence detected. Reverse Bullish Divergence, often referred to simply as "bullish divergence," occurs in technical analysis when the price of an asset makes lower lows while an oscillator (such as the Relative Strength Index (RSI), Stochastic, or MACD) makes higher lows. This situation suggests that despite the asset's declining price trend, the momentum or underlying strength is increasing, indicating that the selling pressure may be easing and a potential reversal to the upside could occur. Traders often look for this pattern as a signal to consider entering a long position, as it may indicate that a bottom is forming and that a bullish trend may follow. It's important to combine this signal with other technical indicators and analysis to confirm the potential reversal and to manage risk appropriately.
BITSTAMP:BTCUSDEducation
by orbborisson