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Trend Analysis

How To Navigate: Breakouts with Tools, Indicators & StrategyHaving a Clear and Precise understanding of whether you're dealing with a Breakout or False Breakout can help you: 1) Find potentially profitable opportunities & 2) Avoid making risky investment moves! Also knowing how to Confirm Trend Change can: 1) Rise probability of profitable trades & 2) Limit the total # taken! So today, I lay out the tools, indicators and tips I use to visualize and to make a decision! Examples: COINBASE:XLMUSD & BITSTAMP:XRPUSD Tools: - Trendline - Parallel Channel - Rectangle Indicators: - Volume - RSI - "True or False" Formula : Close + 20-25% Break + 5-6 Days Outside of Break = Breakout
BITSTAMP:XRPUSDEducation
by Novi_Fibonacci
36
Trading EURUSD and NZDUSD | Judas Swing Strategy 17/01/2024Last Friday was an exciting day trading the Judas Swing strategy! We were fortunate to spot two solid opportunities, one on EURUSD and the other on NZDUSD. Both trades presented similar setups, and once they ticked all the boxes on our trading checklist, we didn’t hesitate to execute. In this post, we’ll walk you through the entire process, from setup to outcome and share key insights from these trades. By 8:25 EST, we were at our trading desk, prepping for the session to kick off at 8:30 EST. During that brief wait, we marked our trading zones and patiently watched for liquidity resting at the highs or lows of the zones to be breached. It didn’t take long, NZDUSD breached its low within 20 minutes, while EURUSD followed suit just 40 minutes into the session. With the liquidity sweep at the lows complete, we quickly shifted our focus to spotting potential buying opportunities for the session ahead. Even though we had a bullish bias for the session, we never jump into trades blindly. Instead, we wait for confirmation—a break of structure to the upside, accompanied by the formation of a Fair Value Gap (FVG). A retrace into the FVG serves as our signal to enter the trade. On this occasion, both currency pairs we were monitoring met these criteria perfectly. All that remained was for price to retrace into the FVG, setting us up to execute the trade with confidence. Price retraced into the FVG on both EURUSD and NZDUSD, meeting all our entry requirements. We executed the trades risking 1% on each setup, putting a total of 2% on the line. Our target? A solid 4% return. The setup was clear, the risk was calculated, and we were ready to let the trades play out After executing the NZDUSD trade, it was pure momentum—zero drawdown as the trade went straight into profit without hesitation. The same was true for EURUSD, which also faced minimal to no drawdown and quickly hit our take-profit target. Both trades wrapped up in just 25 minutes, netting us a solid 4% return. These are the kinds of sniper entries traders dream of! But let’s be real, trading isn’t always this smooth. There will be times when you face deep drawdowns and even losses. The key is ensuring your strategy wins more often than it loses. And if your losses outweigh your wins, make sure your winners are big enough to cover those losses. Consistency and proper risk management are what keep traders in the game for the long haul
Education
by CleoFinance
Fractal Phenomenon Proves Simulation Hypothesis?The humanity is accelerating towards the times when virtual worlds will get so realistic that their inhabitants gain consciousness without realizing they exist in a simulation. The idea that we might be living in a simulation was widely introduced in 2003 by philosopher Nick Bostrom. He argued that if the civilization can create realistic simulations, the probability that we are living in one is extremely high. Modern games only render areas that the player is observing, much like how reality might function in a simulation. Similarly, texture of game environments update as soon as they are viewed, reinforcing the idea that observation determines what is rendered. QUANTUM MECHANICS: The Ultimate Clue Quantum Mechanics challenges our fundamental understanding of reality, revealing a universe that behaves more like a computational process than a physical construct. The wave function (Ψ) describes a probability distribution, defining where a particle might be found. However, upon measurement, the particle’s position collapses into a definite state, raising a paradox: why does the smooth evolution of the wave function lead to discrete outcomes? This behavior mirrors how digital simulations optimize resources by rendering only what is observed, suggesting that reality itself may function as an information-processing system. The Born Rule reinforces this perspective by asserting that the probability of finding a particle at a given location is determined by the square of the wave function’s amplitude (|Ψ|²). This principle introduced probability into the very foundations of physics, replacing classical determinism with a probabilistic framework. Einstein famously resisted this notion, declaring, “God does not play dice,” yet Quantum Mechanics has since revealed that randomness and structure are not opposing forces but intertwined aspects of reality. If probability governs the fabric of our universe, it aligns with how simulations generate dynamic outcomes based on algorithmic rules rather than fixed physical laws. One of the most striking paradoxes supporting the Simulation Hypothesis is Schrödinger’s Cat, which illustrates the conflict between quantum superposition and observation. In a sealed box, a cat is both alive and dead until an observer opens the box, collapsing the wave function into a single state. This suggests that reality does not exist in a definite form until it is observed—just as digital environments in a simulation are rendered only when needed. Similarly, superposition demonstrates that a particle exists in multiple states until measured, while entanglement reveals that two particles can be instantaneously correlated across vast distances, defying classical locality. These phenomena hint at an underlying informational structure, much like a networked computational system where data is processed and linked instantaneously. Hugh Everett’s Many-Worlds Interpretation (MWI) takes this concept further by suggesting that reality does not collapse into a single outcome but instead branches into parallel universes, where each possible event occurs. Rather than a singular, objective reality, MWI posits that we exist within a constantly expanding system of computational possibilities—much like a simulation running countless parallel computations. Sean Carroll supports this view, arguing that the wave function itself is the fundamental reality, and measurements merely reveal different branches of an underlying universal structure. If our reality behaves like a quantum computational system—where probability governs outcomes, observation dictates existence, and parallel computations generate multiple possibilities—then the Simulation Hypothesis becomes a compelling explanation. The universe’s adherence to mathematical laws, discrete quantum states, and non-local interactions mirrors the behavior of an advanced simulation, where data is processed and rendered in real-time based on observational inputs. In this view, consciousness itself may act as the observer that dictates what is “rendered,” reinforcing the idea that we exist not in an independent, physical universe, but within a sophisticated computational framework indistinguishable from reality. Fractals - Another Blueprint of the MATRIX? Price movements wired by multi-cycles shaping market complexity. Long-term cycles define the broader trend, while short-term fluctuations create oscillations within that structure. Bitcoin’s movement influencing Altcoins exemplifies market entanglement—assets affecting each other, much like quantum particles. A single event in a correlated market can ripple across the entire system like in Butterfly effect. Just as a quantum particle exists in multiple states until observed, price action is a probability field—potential breakouts and breakdowns coexist until liquidity shifts. Before a definite major move, the market, like Schrödinger’s cat, remains both bullish and bearish until revealed by Fractal Hierarchy. (Model using Weierstrass Function ) A full fractal cycle consists of multiple oscillations that repeat in a structured yet complex manner. These cycles reflect the inherent scale-invariance of market movements—where the same structural patterns appear.. By visualizing the full fractal cycle: • We observe the relationship between micro-movements and macro-structures. • We track the transformation of price behavior as the fractal unfolds across time. • We avoid misleading interpretations that come from looking at an incomplete cycle, which may appear random or noisy From Wave of Probability to Reality 1. Fractal Probability Waves – The market does not move in a straight line but rather follows a probabilistic fractal wave, where past structures influence future movements. 2. Emerging Reality – As the price action unfolds, these probability waves materialize, turning potential fractal paths into actual price trends. 3. Scaling Effect – The same cyclical behavior repeats at different scales (6H vs. 1W in this case), reinforcing the concept that price movements are self-similar and probabilistically driven. If psychology of masses that shapes price dynamics is governed by mathematical sequences found in nature, it strongly supports the Simulation Hypothesis Do you think we live in a simulation? Let’s discuss in comments!
INDEX:BTCUSDEducation
by fract
22
An Educational Journey into Technical Analysis with Dogecoin/USDIn this tutorial, we'll dive deep into the art of technical analysis using the Dogecoin USD chart as our canvas. You'll discover how to blend Fibonacci tools, Elliott Wave Theory, and the Wyckoff Method to forecast potential market movements. Whether you're new to trading or looking to refine your analytical skills, this guide will provide you with practical insights into identifying entry and exit points, understanding market phases, and preparing for future trends. Let's embark on this educational journey together to enhance your trading strategy toolkit. When in doubt, Zoom Out! Below I was looking at Arguments for a Significant Short Position Before the Continuation of the Bullish Trend and the Pursuit of New All-Time Highs Elliott Waves: From the bear market bottom at 4.5 cents, we started wave 1 and concluded with wave 5 at the current top. Following five waves, we expect an ABC correction. Waves A and B have been completed, and we are now in wave C. Fibonacci 1: Trend-Based Fibonacci Extension - From the all-time high (ATH) to the recent bear market bottom, then to the current 48-cent top. The 0.382 Fibonacci level suggests a target of 0.2130 for the upcoming drop, which I believe is necessary for liquidity ahead of the next upward movement. Fibonacci 2: Regular Fibonacci Retracement - From the bottom of wave 4 to the top of wave 5, the 0.618 level is at 0.235 cents. I've marked a green box between these two targets. See in the image below how Backtesting this strategy on the two previous cycles shows that before breaking ATHs, Dogecoin always hit this 0.382 Fib level! I use these 2 Fibonacci targets to place the green box between them and where I expect price to go in the newxt couple of weeks. Additional Observation: The green line below the 0.618 Fib retracement and above the 0.382 trend-based Fibonacci extension also marks a retest of the wave 3 high at 0.23 cents. Now that we've examined the macro perspective, let's Zoom In to the current action: Wyckoff Schematic: Check my previously published idea on Bitcoin, linked here, where Bitcoin is in a Wyckoff Distribution Schematic #1. Dogecoin seems to follow with Wyckoff Distribution Schematic #2. I've added vertical lines for phase separation, a red resistance box, and a green support box. Link to Richard D. Wyckoff, his Method and Story www.wyckoffanalytics.com . ABC Pattern: Wave A from top to bottom is exactly 0.222 cents or -45.81%, suggesting wave C should be of similar magnitude. Wave B measures 0.1724 cents and 65.65% to the upside. Using an arrow tool, the 0.222 cent drop points exactly to the 0.382 Fibonacci target from the trend-based extension we did in the macro analysis, now highlighted in yellow. Link to chart. Zooming in on the 4-hour Chart: I've drawn another Fibonacci retracement just for wave B, colored in turquoise blue. Notably, the 1.272 Fibonacci extension aligns with our macro 0.382 Fibonacci target, now colored yellow for clarity. Speculations for Future Moves: Fibonacci Circle and bottom timing prediction: Drawn from A to B, this circle in orange might help us predict when we hit the green box target at the bottom. Considering that the A drop measures exactly 12 days and 4Hours I have added another vertical line now marking a timeframe of 5 days from Thursday 30 January to Monday 3 February 2025 This is speculative but worth watching. It includes also a weekend so a CME gap before weekend plus filling the week after could also be in play. Wyckoff Phases: According to earlier discussions, we're moving through phases A to E. I've added a vertical line where the Fib circle crosses our 1.272 and 0.382 Fib levels, suggesting we'll enter phase E on January 23, 2025, potentially concluding by February 2, 2025. Predictive Arrows: Blue arrows indicate possible future price movements based on current patterns. After hitting our target, I'll analyze again and publish a new idea with plans for breaking the ATH and targets for the anticipated bull market. Enough for now, as it's getting late. Give me a follow, share if you liked this analysis, and stay tuned for updates.
BINANCE:DOGEUSDEducation
by Candle_Styx
57
Bollinger Bands — Enhanced Classic Tool for Technical AnalysisBollinger Bands — Enhanced Classic Tool for Technical Analysis Bollinger Bands are a classic technical analysis tool designed to identify short-term trends and gauge market volatility. We’ve upgraded their functionality to make them even more intuitive and precise for trading decisions. What’s New in Our Bollinger Bands: Color-Coded Trend Identification The band color automatically shifts with short-term trend reversals. This allows traders to quickly spot trend direction and decide when to enter trades. Band Width Reflects current volatility levels and price momentum. Narrow bands signal consolidation (accumulation/distribution), while wide bands indicate high volatility and potential trend initiation. Dynamic Support & Resistance Levels The outer bands, calculated as standard deviations from the moving average, act as dynamic reference points for entry and exit levels. Gradient Zones The bands are divided into four gradient zones, highlighting optimal areas for position sizing. Buy near the lower zones, sell near the upper zones—simple yet effective. How to Use Bollinger Bands in Trading: 1. Identify Short-Term Trends Bullish Trend: Green bands signal a bullish market. Bearish Trend: Red bands indicate bearish sentiment. 2. Assess Volatility & Choose Strategies Wide Bands: High volatility, strong trend initiation. Consider breakout strategies. Medium Bands: Range-bound markets. Trade bounces from band boundaries. Narrow Bands: Consolidation (accumulation/distribution), often preceding strong price impulses. Pro Tip: A sharp band contraction often precedes explosive price movements. Volatility Assessment Examples High Volatility + Trend: Wide band expansion signals a strong bullish trend (green bands). Medium Volatility + Range: Moderate band width and frequent color shifts suggest choppy markets—ideal for boundary bounce trades. Low Volatility + Breakouts: A narrow band breakout (green bands) confirms a strong bullish impulse. Trading Bounces from Band Boundaries Prices tend to revert to the moving average (midline). This makes Bollinger Bands a powerful tool for swing traders: Lower Band (Support): Oversold zone—consider long positions. Upper Band (Resistance): Overbought zone—consider short positions. Bounce trades work best in sideways markets or unclear trends. Avoid bounce strategies during band expansion (new trend formation). Example Trades Short on Upper Band Rejection: Price stalls at the upper band in a bearish macro trend, offering a high-probability short entry. Long on Lower Band Rebound: Price bounces from the lower band in a bullish macro trend, confirming a long opportunity. Additional Confirmation Tips Combine Bollinger Bounce signals with: Midas Multi-Indicator: Whale activity detection, trend ribbon reversals. Oscillator Overextension: RSI, Stochastic, or MACD divergence. Price Momentum: Volume spikes or candlestick patterns. Refine entries by aligning band signals with broader market context and multi-timeframe analysis.
BINANCE:BTCUSDEducation
by VctMid
One set up, less chart time, more RRLet me take you down a rabbit whole and show you a strategy with a high win rate conviction. High risk to reward. Consistency and less chart time. Pros: high win rate, 2rr plus consistency, less chart time, systematic approach. Less entry's better reward. Cons: if you use funding accounts & they don't allow weekend, over night, or news trading this is not for you. Trades can be between 2 to 5 days if using higher time frames. Eg daily. This strategy is based on a set of checks on a check list that needs to be confirmed in order to take entry. Building confluence and a stronger trade set up. If caught on 4 hr or daily it allows a swing trade, with multiple scaling in trades with shorter duration on smaller time frames like 15 min and 1 hr. Let's break down the check list and show some break downs. The checklist 1. Is the higher time frames moving in the direct of your entry? First you analyze higher time frames. Determin if over all trend and market structure is bullish or bearish. We will be trading the Continiuation of structure. Eg if bullish we looking for buys. 2. Has there been a break of structure leaving an imbalance? We want to look for a break of structure to comfirm the bullish or bearish bias, leaving an imbalance (fvg). This gives us a retracement point to retest along with more confluence as the imbalance is likely to be filled. As part of this strat we will be using fib retracement tool with the settings 0.5 and 0.618 only. This is the golden zone our entry's will be based on the 0.618, or golden zone. Stoploss the base of fib, take profit the high of fib. Example one: bullish Weekly time frame showing higher highs and higher lows bullish market structure. Daily time frame showing a break of structure to the upside. Showing bullish continuation making a new high. Leaving a imbalance to fill. Seeing a retracement we take the low to the high. Giving us our trade set up. Trade complete minimum draw down, creating a new high. Now with the same bullish bias looking for buys. Let's take a look inside the trade on a smaller time frame and apply the same principles. 1 hr time frame Example Example 2 5 min time frame Example 2 bearish Weekly showing bearish market structure Daily created a break of structure to the down side, leaing an imbalance. 1 hr time frame Example 1 hr time frame Example 2 Combining multiple confluences like support and resistance levels, order blocks, pivotd and trend lines ect. It can provide a strong trade setup string. Each confluence acts as a confirmation of the others, increasing the likelihood of a successful trade. By stacking these confluences together, traders can build a comprehensive analysis and increase the effectiveness of their trading decisions.
OANDA:XAUUSDEducation
by samstoobad
Notes on the Correct Use of Technical IndicatorsTrend Indicators : Moving Averages, Ichimoku Cloud, Bollinger Bands, Keltner Channels. Oscillator Indicators: MACD, RSI, Stochastic, DMI, Fisher Transform. All these instruments were created to recognize points of equilibrium and disequilibrium (inflection points) in the market. Essentially, they are tools designed to detect the optimal times to buy or sell. The profession of trading can be summarized as follows: people creating theories, tools, indicators, and systems to know when to buy and sell based on the historical record of price. Keys to Using Technical Indicators 1-Indicators Do Not Predict the Future Indicators alone lack predictive capability; they are just mathematical formulas based on historical data. However, their correct or incorrect use can significantly impact your success rate. 2-The Importance of Harmony with Price Structure If your tools or indicators do not show a clear and harmonious pattern aligned with the price structure, you are probably making decisions based on randomness. Avoid erratic movements. 3-Using Trend Indicators Correctly These indicators detect trends and points of continuity. Your success rate will increase if you avoid looking for trend reversals with them, unless there is a structural or historical pattern in a higher timeframe that justifies such a reversal. 4-Resolving Contradictory Readings If an indicator shows contradictory readings across various timeframes, give more weight to those harmoniously aligned with the historical price structure. 5-Risk-Reward Ratio When price fluctuations aligned with your indicators show a risk-reward ratio of at least 1:2, the probability of success in your trades increases, attracting more participants. 6-Conflicting Signals When trend indicators and oscillators in the same timeframe send contradictory signals, the market is uncertain. Consider moving to a higher timeframe for clarity or avoid entering at that timeframe. 7-Indicator Confluences Confluences of indicators of the same type in one timeframe do not add value since the signals will be very similar. Aligning multiple indicators does not necessarily improve your success rate. 8-Reversal Signals in Oscillators Divergences in oscillators show weakness in price action but do not justify a trend reversal unless there is an aligned historical structure or pattern. 9-20-day Moving Average It is the most used indicator by investors due to its accuracy in revealing trend strength and equilibrium points. It's fundamental in indicators like Bollinger Bands, Donchian Channels, and Keltner Channels. 10-Price Action vs. Technical Indicators You can make good decisions based solely on price action, but not solely on technical indicators. Practical Examples: •MACD : The more erratic, the more randomness. In a trend, if it accompanies continuations harmonically, its predictive capability increases, identifying reliable inflection points. •Ichimoku Cloud: Useless in range-bound markets; its function is to show strong trends and equilibrium zones. •EMA 20: If the price reacts strongly when touching it in a trend, it is likely that many market participants are watching it, making it an opportunity zone. •Crosses of Moving Averages and MACD: If the 20-day and 50-day moving averages cross above a declining price while the MACD crosses upwards, it indicates a contradictory signal of market doubt. Conclusions: No single indicator is superior by itself; all have strengths and weaknesses. The key lies in how, where, and when to interpret their signals. Avoiding randomness by relying on structure and historical records improves your success rate. Remember to study more about mass psychology than psychotrading, do not buy courses (especially scalping courses), respect the ancients, and above all, question everything except your own capabilities.
BINANCE:BTCUSDEducation
by Especulador96
Using Volume to Validate Market MovesVolume is one of those metrics that often sits quietly at the bottom of your chart, unnoticed by many traders. Yet, it plays a critical role in understanding the market’s behaviour. Think of volume as the fuel behind price movements—without it, even the most promising breakout can fizzle out. But, just like with fuel, more isn’t always better. Today, we’re focusing on the simple volume histogram that appears at the bottom of most charts. While there are countless indicators built around volume—like On-Balance Volume (OBV) or the Volume-Weighted Average Price (VWAP)—the histogram is a straightforward, effective tool for gauging participation in the market. Let’s explore how to use it, how to put volume into context, and how it behaves with different price patterns, including the concept of volume divergence. Simple Volume Histogram Past performance is not a reliable indicator of future results Why Volume Matters (and Why More Isn’t Always Better) Volume measures how many shares or contracts change hands during a given period. When volume spikes, it signifies heightened interest—buyers and sellers actively engaging. However, it’s not as simple as “more volume equals better signals.” For instance, a breakout on high volume often reflects strong conviction, but it can also indicate exhaustion at the end of a trend. Conversely, a low-volume breakout might lack the interest needed to sustain the move. Understanding the relationship between volume and price action is key to avoiding false signals. A Simple Trick: The Volume Moving Average One of the easiest ways to contextualise volume is by applying a moving average to the volume histogram. Platforms like TradingView make this simple: double-click the volume histogram, select ‘Style,’ tick the Volume MA box, and adjust the average length under ‘Inputs.’ A 9-period moving average, for example, acts as a baseline. When volume spikes significantly above the average, it suggests increased participation and potentially more meaningful price moves. Conversely, volume below the average often reflects quieter market phases. Adding MA to Your Volume Histogram Past performance is not a reliable indicator of future results Volume Divergence: When Volume and Price Don’t Align Volume divergence occurs when price action and volume move in opposite directions, often hinting at weakening trends or potential reversals. Imagine an uptrend where the price makes higher highs, but volume decreases at each new peak. This divergence signals fading participation, suggesting the trend may be losing steam. On the other hand, if the price trends lower while volume rises, sellers could be gaining momentum, increasing the likelihood of further downside. Take the example below, where volume divergence on the FTSE 100 preceded a period of sideways consolidation. Volume Divergence: FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results Patterns That Thrive on High Volume Certain price patterns rely on strong volume to confirm their validity. A classic example is a triangle breakout. As the price consolidates within the triangle, volume often contracts. When the breakout finally occurs, you want to see a surge in volume, confirming that participants are backing the move. Without it, the breakout might lack the conviction needed to sustain the trend. Patterns That Prefer Lower Volume Other patterns work best with subdued volume. A pullback within a trend is a great example. Let’s say a stock is in a strong uptrend and starts to retrace slightly. Ideally, you want to see declining volume during the pullback. This suggests the selling is more about profit-taking than aggressive distribution. Once the pullback completes and the trend resumes, volume should pick up again. If the pullback occurs on high volume, it could indicate stronger selling pressure, signalling that the uptrend might be in trouble. A Practical Example: DXY Pullback and Breakout Let’s apply these concepts to a real-world case. In October, the dollar index (DXY) formed a steady uptrend followed by a pullback, creating a descending channel or bull flag. During the flag formation, average volume declined, indicating reduced selling pressure. When the price broke out, volume surged to nearly triple the 20-day average—a clear signal of strong buying interest. This breakout led to a multi-week uptrend. DXY Daily Candle Chart Past performance is not a reliable indicator of future results Final Thoughts The volume histogram is a simple yet invaluable tool for traders. By applying a moving average to identify volume trends and watching for divergences between price and volume, you can gain a clearer understanding of market dynamics. Volume isn’t just about how much activity is happening—it’s about when and how it aligns with price action. Whether you’re trading breakouts, pullbacks, or reversals, understanding volume can provide an essential layer of confirmation and help you spot potential warning signs. Keep in mind, volume is just one piece of the puzzle. But when used correctly, it can give you a better sense of whether a price move has the backing it needs to succeed—or if it’s running on empty. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
NASDAQ:TSLAEducation
by Capitalcom
Example of explanation of chart analysis and trading strategy Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- There was an inquiry asking for detailed information on how to analyze charts and create trading strategies accordingly, so I will take the time to explain it. Before reading this article, you need a basic understanding of charts. That is, you need to understand candles and price moving averages. If you study this first and then read this content, I think you will have some understanding of trading. --------------------------------------- Whether you are trading spot or futures, marking support and resistance points according to the arrangement of candles on the 1M, 1W, and 1D charts is the first task you need to do before trading. To do this, you need to understand the arrangement of candles. Therefore, before using my indicator, it is better to study candles first and understand the arrangement of candles. When studying candles, it is better not to try to memorize the names or shapes of various patterns. This is because the overall understanding of candles is important, not the various patterns of candles. If you study with a book or video, you will be able to understand candles after reading or watching them at least 3 times. We study charts to trade, not to analyze charts and teach them to others, so we need to study efficiently and save time. - If you study candles, you will naturally understand the price moving average. The indicator corresponding to the price moving average is the MS-Signal indicator. This MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator, and the main indicator is the M-Signal indicator. Therefore, we added the M-Signal indicator of the 1W chart and the M-Signal indicator of the 1M chart to the 1D chart so that we can see the overall trend. - You can see the arrangement of the MS-Signal (M-Signal of 1M, 1W, 1D charts) indicators in the example chart. Currently, since the M-Signal of the 1M chart > the M-Signal of the 1W chart, we can see that it is a reverse array. If you understand the price moving average, you will understand that we should not trade when it is a reverse array, but when it is a regular array. Therefore, since the current state of the example chart is a reverse array, it is not suitable for trading. However, the reason we brought this chart in this state is because the M-Signal indicators of the 1M and 1W charts are converging. As convergence progresses, it will eventually diverge. Therefore, since the possibility of price volatility increases, the possibility of capturing the timing for trading increases depending on whether there is support at the support and resistance points. - The indicators included in the example chart are drawn as horizontal lines to indicate support and resistance points. This work performs the same role as the support and resistance points drawn on the 1M, 1W, and 1D charts according to the arrangement of the candles mentioned above. Therefore, on the 1M, 1W, and 1D charts, horizontal lines are drawn on the indicators to indicate support and resistance points. You can draw horizontal lines on indicators that are horizontal for at least 3 candles, and if possible, 5 candles. - Among the HA-MS indicators, the important indicators are the HA-Low and HA-High indicators. The HA-Low and HA-High indicators are indicators created for trading on the Heikin-Ashi chart. Therefore, it is the next most important indicator after the MS-Signal (M-Signal on 1M, 1W, 1D charts) indicator that can tell the trend. You can create a trading strategy depending on whether there is support near the HA-Low, HA-High indicators. - The next most important indicator is the BW(0), BW(100) indicator. When this indicator is created or touched, it is time to respond in detail. That is, when you are trading with a trading strategy created from the HA-Low, HA-High indicators, when the BW(0), BW(100) indicators are created or touched, you can choose whether to proceed with a split transaction. In addition, you can understand the OBV, +100, -100 indicators as response points for split transactions. Therefore, you do not need to indicate support and resistance points for the OBV, +100, -100 indicators. However, it is recommended to mark support and resistance points for the HA-Low, HA-High, BW(0), BW(100) indicators. - If you look at the price position in the example chart, you can see that it is located in the 0.03347-0.03485 range. And, the M-Signal indicator of the 1W chart is passing through this range, and the HA-High indicator of the 1W chart is acting as support and resistance. Therefore, whether there is support near 0.03485 is an important key point. If support is confirmed near 0.03485, it is a time to buy. However, since the MS-Signal (M-Signal on the 1D chart) indicator is passing between 0.03485-0.03814, the point to watch is whether the MS-Signal (M-Signal on the 1D chart) indicator can break through upward. As I mentioned earlier, if the MS-Signal indicator passes, a trend change will occur, so it is significant. Therefore, in order to turn into a short-term uptrend, it is likely to be supported around 0.03814-0.03982. Therefore, the first split selling section will be around 0.03814-0.03982. At this time, whether to sell or hold depends on your investment style and investment period. - Since the M-Signal indicator on the 1M chart is passing around 0.04341, it is likely to start when the price is maintained above the M-Signal indicator on the 1M chart in order to turn into a long-term uptrend. Therefore, the second split selling period will be around the M-Signal indicator on the 1M chart. This is also something you can choose. - An important volume profile section is formed around 0.03038. Therefore, the 0.03038 point corresponds to a strong support section. - (30m chart) When the time frame chart you are trading is below the 1D chart, it is recommended to activate the 5EMA indicator on the 1D chart. (I just used the 30m chart as an example. The same principle applies to any time frame chart you usually use.) This is because there is a high possibility of volatility when the 5EMA of the 1D chart and the M-Signal indicator of the 1M, 1W, and 1D charts are touched. In other words, you can understand that it plays a certain role of support and resistance. If it touches the HA-High, BW(100) indicator and falls and falls below the MS-Signal indicator, it will basically touch the HA-Low or BW(0) indicator. On the other hand, if it touches the HA-Low, BW(0) indicator and rises and rises above the MS-Signal indicator, it will basically touch the HA-High or BW(100) indicator. However, since it may not do so and may rise or fall in the middle, it is necessary for the support and resistance points drawn on the 1M, 1W, and 1D charts as mentioned earlier. The support and resistance points drawn on the 1D chart are currently indicated at the 0.03347 point. Therefore, even if it falls below the MS-Signal indicator, you can understand that there is a possibility of rising again around 0.03347. Since the 5EMA of the 1D chart and the M-Signal indicator of the 1W chart are passing around 0.03485, we can see that the area around 0.03485 is an important support and resistance zone. - Since the StochRSI indicator is currently above 50, we should focus on finding a time to sell. Since it has fallen below the BW(100) and HA-High indicators, it has fallen too much to start trading with a sell (SHORT) position. However, if you can respond quickly, you can enter a sell (SHORT) position when it falls from the 0.03411 point where the MS-Signal indicator is passing. When the StochRSI indicator falls below 50, we should focus on finding a time to buy. At this time, you can trade based on whether there is support or resistance at the support and resistance points drawn on the 1M, 1W, and 1D charts or around the MS-Signal (M-Signal on the 1M, 1W, and 1D charts), 5EMA, HA-Low, HA-High, BW(0), and BW(100) indicators on the 1D chart. As mentioned earlier, you should not forget that trading strategies can be created based on whether there is support at the HA-Low and HA-High indicators. Therefore, if possible, it is recommended to trade based on whether there is support near the HA-High indicator point of 0.03443. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
9
Using Volume to Validate Market MovesVolume is one of those metrics that often sits quietly at the bottom of your chart, unnoticed by many traders. Yet, it plays a critical role in understanding the market’s behaviour. Think of volume as the fuel behind price movements—without it, even the most promising breakout can fizzle out. But, just like with fuel, more isn’t always better. Today, we’re focusing on the simple volume histogram that appears at the bottom of most charts. While there are countless indicators built around volume—like On-Balance Volume (OBV) or the Volume-Weighted Average Price (VWAP)—the histogram is a straightforward, effective tool for gauging participation in the market. Let’s explore how to use it, how to put volume into context, and how it behaves with different price patterns, including the concept of volume divergence. Simple Volume Histogram Past performance is not a reliable indicator of future results Why Volume Matters (and Why More Isn’t Always Better) Volume measures how many shares or contracts change hands during a given period. When volume spikes, it signifies heightened interest—buyers and sellers actively engaging. However, it’s not as simple as “more volume equals better signals.” For instance, a breakout on high volume often reflects strong conviction, but it can also indicate exhaustion at the end of a trend. Conversely, a low-volume breakout might lack the interest needed to sustain the move. Understanding the relationship between volume and price action is key to avoiding false signals. A Simple Trick: The Volume Moving Average One of the easiest ways to contextualise volume is by applying a moving average to the volume histogram. Platforms like TradingView make this simple: double-click the volume histogram, select ‘Style,’ tick the Volume MA box, and adjust the average length under ‘Inputs.’ A 9-period moving average, for example, acts as a baseline. When volume spikes significantly above the average, it suggests increased participation and potentially more meaningful price moves. Conversely, volume below the average often reflects quieter market phases. Adding MA to Your Volume Histogram Past performance is not a reliable indicator of future results Volume Divergence: When Volume and Price Don’t Align Volume divergence occurs when price action and volume move in opposite directions, often hinting at weakening trends or potential reversals. Imagine an uptrend where the price makes higher highs, but volume decreases at each new peak. This divergence signals fading participation, suggesting the trend may be losing steam. On the other hand, if the price trends lower while volume rises, sellers could be gaining momentum, increasing the likelihood of further downside. Take the example below, where volume divergence on the FTSE 100 preceded a period of sideways consolidation. Volume Divergence: FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results Patterns That Thrive on High Volume Certain price patterns rely on strong volume to confirm their validity. A classic example is a triangle breakout. As the price consolidates within the triangle, volume often contracts. When the breakout finally occurs, you want to see a surge in volume, confirming that participants are backing the move. Without it, the breakout might lack the conviction needed to sustain the trend. Patterns That Prefer Lower Volume Other patterns work best with subdued volume. A pullback within a trend is a great example. Let’s say a stock is in a strong uptrend and starts to retrace slightly. Ideally, you want to see declining volume during the pullback. This suggests the selling is more about profit-taking than aggressive distribution. Once the pullback completes and the trend resumes, volume should pick up again. If the pullback occurs on high volume, it could indicate stronger selling pressure, signalling that the uptrend might be in trouble. A Practical Example: DXY Pullback and Breakout Let’s apply these concepts to a real-world case. In October, the dollar index (DXY) formed a steady uptrend followed by a pullback, creating a descending channel or bull flag. During the flag formation, average volume declined, indicating reduced selling pressure. When the price broke out, volume surged to nearly triple the 20-day average—a clear signal of strong buying interest. This breakout led to a multi-week uptrend. DXY Daily Candle Chart Past performance is not a reliable indicator of future results Final Thoughts The volume histogram is a simple yet invaluable tool for traders. By applying a moving average to identify volume trends and watching for divergences between price and volume, you can gain a clearer understanding of market dynamics. Volume isn’t just about how much activity is happening—it’s about when and how it aligns with price action. Whether you’re trading breakouts, pullbacks, or reversals, understanding volume can provide an essential layer of confirmation and help you spot potential warning signs. Keep in mind, volume is just one piece of the puzzle. But when used correctly, it can give you a better sense of whether a price move has the backing it needs to succeed—or if it’s running on empty. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
NASDAQ:TSLAEducation
by Regency_Capital
12
How to Avoid Falsa Breakouts and Breakdowns?Avoiding False Breakouts and False Breakdowns: A Guide for Traders Have you ever seen a significant resistance level break and then opened a long trade, only for the market to make a sharp move to the downside? Or perhaps you've entered a short position after the price broke support, only to watch the market rebound? If so, you're not alone. Many traders have fallen victim to false breakouts, so don't feel bad. Recognizing these situations can be challenging, but it's crucial to learn how to identify them. In this article, we'll discuss false breakouts and breakdowns, and share two powerful strategies from the CRYPTOMOJO_TA team that can help you stay on the right side of the market and avoid unnecessary losses. Understanding False Breakouts The solution to avoiding false breakouts is quite simple: wait for the candle to close before acting on a breakout. Jumping into a trade as soon as the price breaks a key level can often lead to failure. Therefore, avoid placing entry orders above or below support and resistance levels to automatically enter a breakout. These orders can result in getting "wicked" into trades that never materialize. The only way to successfully trade breakouts is to monitor the market closely and be prepared to act as soon as the candle closes in the breakout zone. Only then can you determine the breakout's strength. How to Avoid a False Breakout It can be almost impossible to tell a true breakout from a false one if you're not careful. Here are four ways to avoid falling for a failed breakout: 1. Take It Slow One of the simplest yet most challenging ways to avoid a false breakout is simply to wait. Instead of rushing to enter a trade when the price breaks through support or resistance, take a step back. Depending on your trading style, give the market a few days to reveal whether the breakout is genuine. Often, the false breakouts will become apparent after some time. 2. Watch Your Candles A more advanced version of waiting is to use candlestick charts to confirm the breakout. Wait until the candle closes to assess the strength of the breakout. The stronger the breakout appears, the more likely it is genuine. Many traders lack the time to monitor their charts constantly, but with us, you can set alerts to notify you when specific market conditions are met. For a breakout, create an alert based on the candle's close price to ensure you're only entering after a true breakout. 3. Use Multiple Timeframe Analysis Multiple timeframe analysis is an efficient way to identify potential breakouts and distinguish between genuine and false ones. Watch your chosen market across various timeframes. For instance, you might spot a potential breakout in the short term and then "zoom out" to analyze the market over a longer period, like a week or a month. This broader perspective helps identify whether a breakout is significant in the long term or merely a short-term movement that may soon reverse. 4. Know the Usual Suspects Some chart patterns can indicate the likelihood of a false breakout. These include ascending triangles, the head and shoulders pattern, and flag formations. Familiarizing yourself with these patterns can help you identify when a breakout is more likely to fail. For example, ascending triangles often indicate a temporary market correction rather than a true breakout. How to Trade a False Breakout If you're a trader, you can use a false breakout as an opportunity to go short. Predict that the market will drop after the failed breakout and profit from the decline. Alternatively, you could hedge by opening both a long and a short position—going long in case the breakout is true, and short if it fails. To trade a false breakout, follow these steps: Create a live CFD trading account. Perform technical analysis to identify potential false breakouts. Manage your risk by using stop orders and limit orders. Open and monitor your first trade. How to Trade Breakouts If you prefer to trade actual breakouts, here's how you can do it: Create a live account or practice with a demo account. Learn the signs of a potential breakout. You can find in-depth resources about breakouts on IG Academy to upskill yourself. Open your first position. Plan your exit strategy carefully, including setting stop orders and limit orders. Take steps to manage your risk. False Breakouts Summed Up A false breakout occurs when the price moves beyond the normal support or resistance levels but fails to sustain the momentum, leading to a reversal. Traders may mistakenly go long during these events, only to see the price lose momentum shortly after. You can avoid false breakouts or trade them intentionally by studying the market, learning chart patterns, analyzing timeframes, and using the right tools. With us, you can trade both breakouts and false breakouts using CFDs. This chart is for informational purposes only. Never Stop Learning I would love to hear your thoughts, charts, and views in the comment section. Keep learning, stay patient, and keep improving your trading skills! Thank you!
BITSTAMP:BTCUSDEducation
by CRYPTOMOJO_TA
4
Unlock Your Trading Potential: How to Design the Perfect Trading Morning Trading Family Ever wonder how the pros keep getting better? It's all about the journal! Join me in this video where I spill the beans on setting up your own trading journal that'll skyrocket your learning curve. We'll go through how to record each trade like a pro, capturing not just the when and where, but the why. I'll share simple methods to make your journal entries meaningful and insightful. Check out a real-life example from my journal, where I share not just the trades but the feelings behind them. Learn to spot the patterns in your trading - the good, the bad, and the ugly. Whether you're just starting out or you've been trading for years, this video is your roadmap to personal growth in the trading world. I'll show you how a few minutes each day can transform your trading strategy. Drop your thoughts, questions, or your own journaling hacks in the comments! Kris/Mindbloome Exchange Trade What You See
FX:XAUUSDEducation
by Mindbloome-Trading
CHoCH (Change of Character) in Crypto TradingWhat is CHoCH? CHoCH (Change of Character) is a concept from Smart Money Concept (SMC) used in technical analysis. It signals a shift in market behavior and often marks the beginning of a new trend phase, whether a trend reversal or consolidation. Unlike Break of Structure (BoS), which confirms trend continuation, CHoCH indicates a potential change in direction. --- How to Identify CHoCH? 1. In an Uptrend: Price forms Higher Highs (HH) and Higher Lows (HL). If the price breaks the last HL but fails to create a new HH, this is CHoCH, signaling a potential bearish reversal. 2. In a Downtrend: Price forms Lower Lows (LL) and Lower Highs (LH). If the price breaks the last LH but does not form a new LL, this is CHoCH, suggesting a bullish reversal. --- How to Trade CHoCH? CHoCH is a powerful tool for spotting trend weakness and entering trades early. 1. Spotting Trend Weakness: In an uptrend, if the price fails to make a new HH and breaks the last HL, a trend shift might be occurring. In a downtrend, if the price fails to form a new LL and breaks the last LH, expect bullish momentum. 2. Entry Strategies After CHoCH: Wait for confirmation with a retest of the key level. Use volume indicators to check if the breakout is significant. Enter the trade after the retest of the broken support/resistance level. 3. Combining CHoCH with Other Tools: CHoCH works well with Order Blocks, Liquidity Zones, and Fair Value Gaps (FVG). Volume analysis helps confirm institutional activity in the trend change. --- CHoCH Trading Example Imagine an uptrend where price forms Higher Highs (HH) and Higher Lows (HL). Suddenly, the price fails to create a new HH and breaks the last HL. This is CHoCH, suggesting a potential shift from bullish to bearish. 💡 Traders can use this signal to exit long positions and prepare for short setups.
BINANCE:1000SHIBUSDT.PEducation
by Max_Pr0fit
Gann Astro Intraday: Live Gold Trade in ActionIn this trading idea, I will provide a detailed breakdown of the live trade I executed on Monday, January 12, 2024, on gold, using advanced mathematical modules of Gann Astro. This trade was entered precisely at the market low, as I had calculated the timing of the low formation three hours in advance. While the trade setup was accurate, it took over 7 hours for the price to reach the target. In this breakdown, I will explain the complete trade analysis with supporting data, charts, and visuals. Additionally, I will dive into the psychological aspects of holding a trade for an extended period, maintaining patience, and interpreting price action as a delivery algorithm. I'll also discuss observing liquidity buildup in real-time and the mindset required to stay composed while navigating market movements. Significant points of this Gann Astro trade are as below - Detailed breakdown of the live gold trade executed on Monday, January 12, 2024, using advanced Gann Astro mathematical modules. - Trade entry was made precisely at the market low, calculated 3 hours in advance. - Explanation of the trade setup with supporting data, charts, and visuals. - Insights into the psychology of holding trades for an extended period (this trade took over 7 hours to reach the target). - Understanding price action as a price delivery algorithm and observing liquidity buildup in real-time. - Discussion on maintaining patience and composure during prolonged trades. As shown in the charts, the reversal time for gold was calculated 3 hours in advance using Gann Astro Trading principles and mathematical modules. The reversal occurred at 8:00 AM New York time, as observed on the 90-minute chart, where I anticipated the price to form a low. Now, you might wonder why the 90-minute timeframe was chosen. This ties into the universal concept that everything vibrates at a specific frequency, including markets, aligning with the significance of 3-6-9, as extensively discussed by Gann. Knowing the exact reversal time eliminates uncertainty in trading, which directly enhances trading psychology. This clarity allows for patience and composure, avoiding impulsive actions. The ability to stay calm and wait for a setup to align with your analysis is an art mastered by only a few traders. Most traders operate out of FOMO (Fear of Missing Out), often taking uncertain trades that fall under the category of gambling. True success in trading lies in patience, discipline, and the ability to observe the charts without acting prematurely. These traits separate professional traders from the majority who struggle to maintain consistency. BUY ENTRY IN GOLD LONG TRADE WITH GANN ASTRO After waiting for 3 hours, the market reached my calculated time and price level, aligning perfectly. As Gann emphasized, when time and price are equal, the market must reverse. With this principle, I executed a trade on gold using Gann Astro techniques in intraday trading. This is where the true challenge of trading begins—not in entering the trade, but in maintaining patience until the price either hits your stop loss or your profit target. Many traders fail at this critical stage due to a lack of discipline and risk management, trading without stop loss or proper planning. To trade successfully, one must approach the market with precision, patience, and a sound strategy. Key Points: 1. Stop Loss is Essential: - Trading without a stop loss is equivalent to gambling with hard-earned money. - A solid risk management strategy is non-negotiable for long-term success. 2. Risk Management Rules: - Always limit risk to 1% of your account per trade. - Never over-leverage or expose yourself to unnecessary risk. 3. Learn to Stay Patient: - Patience is a core skill in trading—waiting for the market to hit your levels and then staying disciplined in the trade. - Avoid impulsive decisions driven by fear or greed. 4.Avoid Common Pitfalls: - Many traders lose their entire capital within weeks due to poor risk management and lack of preparation. - Focus on learning proper risk management before entering live markets. By incorporating these principles, you can significantly improve your chances of success and build a sustainable trading career. Patience in trading is a skill that requires not just discipline but also a deep understanding of how to manage emotions while observing the market's algorithmic price delivery in real-time. One of the most effective ways to stay focused is by minimizing the psychological triggers that impact your decision-making. Colours like red and green can strongly influence your mood and perspective during trading, which is why I switched to black-and-white candles when I started trading back in 2019. This change eliminates the emotional bias caused by colour psychology. Additionally, hiding your profit and loss figures while trading is another powerful way to stay emotionally neutral. Seeing how much you are making or losing can trigger fear of loss or overconfidence, which may lead to impulsive decisions. Removing these distractions helps you maintain clarity and focus during your trading session. Key Points: 1. Eliminate Colour Psychology: - Switch to black-and-white candles to avoid emotional biases caused by red and green colours. - This reduces the impact of visual triggers on your mood and decision-making. 2. Hide Profit and Loss Figures: - Turn off the display of your profit and loss numbers on the trading platform. - This prevents emotional reactions like fear of loss or overconfidence from influencing your trades. 3. Stay Focused on Price Action: - Concentrate solely on the market's price delivery without distractions. - Train yourself to analyse the market algorithm objectively without emotional interference. 4. Build a Calm Trading Environment: - Create a setup that minimizes external triggers and focuses on clear decision-making. - Practice mindfulness and emotional control to remain patient and disciplined. By implementing these steps, you can enhance your trading psychology and improve your ability to read the market with greater clarity and precision. Once you master the foundational skills of managing emotions and maintaining patience, the real challenge begins—understanding the price delivery algorithms and their underlying intentions. The market operates on an algorithmic framework, where price delivery is designed to build liquidity and then seek it. To identify this process, you need to observe where liquidity is being left in real-time, which is often around old highs and lows. These areas act as targets for the algorithm as it seeks to capture liquidity. In the chart, I have marked the live formation of liquidity in the market, illustrating how the algorithm builds and targets these zones. By understanding this process, you gain an edge in predicting the market's next moves. Keeping a detailed record of every trade, you take is crucial for long-term success in trading. Use software tools to record live trades and store the data systematically. This practice allows you to review your past performance, analyse what worked, and identify areas for improvement. Journaling is an essential habit in trading, as it not only tracks your progress but also accelerates your learning curve. The most successful traders consistently review their past trades, assess their strategies, and refine their approach to stay ahead in the game. It’s been 6 hours since I entered the trade. I was patient and have mastered the art of trading psychology. With Gann Trading astro techniques and years of trading experience backed by data, I’ve honed my mindset for consistent success. For new traders, here are 10 ways to improve your trading psychology: 1. Cultivate Emotional Discipline. Mastering trading psychology begins with controlling emotions like fear and greed. Recognize emotional triggers and respond with logic, not impulsivity. 2. Develop a Trading Plan. A well-structured trading plan helps eliminate emotional decision-making. Include entry, exit, and risk management strategies to stay disciplined. 3. Practice Risk Management. Never risk more than a small percentage of your capital on a single trade. Knowing your maximum loss tolerance minimizes stress and preserves mental clarity. 4. Keep a Trading Journal. Record every trade, including rationale, outcomes, and emotions. Regularly review the journal to identify patterns and areas for improvement. 5. Focus on Process Over Outcome. Prioritize consistent execution of your strategy rather than obsessing over profits. This shift in mindset builds confidence and long-term success. 6. Learn to Accept Losses. Losses are a natural part of trading. Accept them as learning experiences rather than personal failures to maintain a positive mindset. 7. Practice Visualization and Mental Rehearsal. Visualize different market scenarios and how you will respond. Mental rehearsal prepares you for stressful situations and improves decision-making. 8. Stay Patient and Avoid Overtrading. Wait for high-probability setups that align with your strategy. Overtrading often stems from impatience and leads to unnecessary mistakes. 9. Maintain a Balanced Lifestyle. Take care of your physical and mental health. Regular exercise, proper nutrition, and adequate rest are essential for maintaining focus and emotional stability. 10. Seek Continuous Education. Stay updated with market trends, refine your strategies, and learn from experienced traders. An informed trader is a confident and less emotionally reactive trader. Once you follow all these steps, the market rewards you with good trading profits. Just like in this chart, I entered at the low and exited at the top by practicing patience and executing trades only with a Gann astro and mathematical edge. This disciplined approach ensures consistent results and builds the foundation for long-term trading success. 1. Gann's Principle: Time is More Important than Price. Understanding the timing of market movements is crucial, as time often dictates the outcome of trades more than price levels. 2. Everything in the Universe Vibrates on Specific Frequencies. Market trends and patterns are influenced by universal vibrations, making it essential to align trading strategies with these natural cycles.
CAPITALCOM:GOLDEducation
by GannAstroTrader
Organizing Chaos: Practical Example of Using ChannelsChannels have been used by technical analysts for more than a century due to their ability to clarify price action and detect historical patterns (the main advantage of an investor, which I will write an article about soon). Today, I want to show you a practical example of the good use of this tool. We are looking at the Australian Dollar / Japanese Yen pair (AUD/JPY), and we can clearly see how the use of channels shows us areas of imbalance or inflection points between supply and demand (blue lines). Specifically, I want you to focus on the imbalance area where we are today. Historically, supply (selling force) has exceeded demand (buying force) in this price zone, which means that the majority of market participants, under the same conditions, have considered this price zone to be expensive. Another interesting detail is how strongly supply (sellers) has reacted after reaching this imbalance area. Although it has encountered resistance from buyers around the 88 level (which is an equilibrium zone), so far, sellers have been dominant and have managed to drive the price down to the 75 level. It's also noticeable that there could still be an upward response, but historically, this has been nullified by the selling force before surpassing the highs. Conclusions: It's amazing how a simple tool like a channel has given us a considerable advantage when making decisions. In just minutes, we've identified an opportunity zone, understood the psychology of the market participants, established two price zones as probable targets (88 and 75), and even got an idea of the magnitude of the selling force based on historical records. Remember to study less about psychotrading and more about mass psychology, not to buy courses (especially not scalping courses), to respect the old masters, and above all, to question everything except your own capabilities.
Education
by Especulador96
Gann Astro Trading: Psychology & Patience in Intraday Gold TradeIn this trading idea, I will provide a detailed breakdown of the live trade I executed on Monday, January 12, 2024, on gold, using advanced mathematical modules of Gann Astro. This trade was entered precisely at the market low, as I had calculated the timing of the low formation three hours in advance. While the trade setup was accurate, it took over 7 hours for the price to reach the target. In this breakdown, I will explain the complete trade analysis with supporting data, charts, and visuals. Additionally, I will dive into the psychological aspects of holding a trade for an extended period, maintaining patience, and interpreting price action as a delivery algorithm. I'll also discuss observing liquidity buildup in real-time and the mindset required to stay composed while navigating market movements. Significant points of this Gann Astro trade are as below - Detailed breakdown of the live gold trade executed on Monday, January 12, 2024, using advanced Gann Astro mathematical modules. - Trade entry was made precisely at the market low, calculated 3 hours in advance. - Explanation of the trade setup with supporting data, charts, and visuals. - Insights into the psychology of holding trades for an extended period (this trade took over 7 hours to reach the target). - Understanding price action as a price delivery algorithm and observing liquidity buildup in real-time. - Discussion on maintaining patience and composure during prolonged trades. As shown in the charts, the reversal time for gold was calculated 3 hours in advance using Gann Astro Trading principles and mathematical modules. The reversal occurred at 8:00 AM New York time, as observed on the 90-minute chart, where I anticipated the price to form a low. Now, you might wonder why the 90-minute timeframe was chosen. This ties into the universal concept that everything vibrates at a specific frequency, including markets, aligning with the significance of 3-6-9, as extensively discussed by Gann. Knowing the exact reversal time eliminates uncertainty in trading, which directly enhances trading psychology. This clarity allows for patience and composure, avoiding impulsive actions. The ability to stay calm and wait for a setup to align with your analysis is an art mastered by only a few traders. Most traders operate out of FOMO (Fear of Missing Out), often taking uncertain trades that fall under the category of gambling. True success in trading lies in patience, discipline, and the ability to observe the charts without acting prematurely. These traits separate professional traders from the majority who struggle to maintain consistency. BUY ENTRY IN GOLD LONG TRADE WITH GANN ASTRO After waiting for 3 hours, the market reached my calculated time and price level, aligning perfectly. As Gann emphasized, when time and price are equal, the market must reverse. With this principle, I executed a trade on gold using Gann Astro techniques in intraday trading. This is where the true challenge of trading begins—not in entering the trade, but in maintaining patience until the price either hits your stop loss or your profit target. Many traders fail at this critical stage due to a lack of discipline and risk management, trading without stop loss or proper planning. To trade successfully, one must approach the market with precision, patience, and a sound strategy. Key Points: 1. Stop Loss is Essential: - Trading without a stop loss is equivalent to gambling with hard-earned money. - A solid risk management strategy is non-negotiable for long-term success. 2. Risk Management Rules: - Always limit risk to 1% of your account per trade. - Never over-leverage or expose yourself to unnecessary risk. 3. Learn to Stay Patient: - Patience is a core skill in trading—waiting for the market to hit your levels and then staying disciplined in the trade. - Avoid impulsive decisions driven by fear or greed. 4. Avoid Common Pitfalls: - Many traders lose their entire capital within weeks due to poor risk management and lack of preparation. - Focus on learning proper risk management before entering live markets. By incorporating these principles, you can significantly improve your chances of success and build a sustainable trading career. Patience in trading is a skill that requires not just discipline but also a deep understanding of how to manage emotions while observing the market's algorithmic price delivery in real-time. One of the most effective ways to stay focused is by minimizing the psychological triggers that impact your decision-making. Colours like red and green can strongly influence your mood and perspective during trading, which is why I switched to black-and-white candles when I started trading back in 2019. This change eliminates the emotional bias caused by colour psychology. Additionally, hiding your profit and loss figures while trading is another powerful way to stay emotionally neutral. Seeing how much you are making or losing can trigger fear of loss or overconfidence, which may lead to impulsive decisions. Removing these distractions helps you maintain clarity and focus during your trading session. Key Points: 1. Eliminate Colour Psychology: - Switch to black-and-white candles to avoid emotional biases caused by red and green colours. - This reduces the impact of visual triggers on your mood and decision-making. 2. Hide Profit and Loss Figures: - Turn off the display of your profit and loss numbers on the trading platform. - This prevents emotional reactions like fear of loss or overconfidence from influencing your trades. 3. Stay Focused on Price Action: - Concentrate solely on the market's price delivery without distractions. - Train yourself to analyse the market algorithm objectively without emotional interference. 4. Build a Calm Trading Environment: - Create a setup that minimizes external triggers and focuses on clear decision-making. - Practice mindfulness and emotional control to remain patient and disciplined. By implementing these steps, you can enhance your trading psychology and improve your ability to read the market with greater clarity and precision. Once you master the foundational skills of managing emotions and maintaining patience, the real challenge begins—understanding the price delivery algorithms and their underlying intentions. The market operates on an algorithmic framework, where price delivery is designed to build liquidity and then seek it. To identify this process, you need to observe where liquidity is being left in real-time, which is often around old highs and lows. These areas act as targets for the algorithm as it seeks to capture liquidity. In the chart, I have marked the live formation of liquidity in the market, illustrating how the algorithm builds and targets these zones. By understanding this process, you gain an edge in predicting the market's next moves. Keeping a detailed record of every trade, you take is crucial for long-term success in trading. Use software tools to record live trades and store the data systematically. This practice allows you to review your past performance, analyse what worked, and identify areas for improvement. Journaling is an essential habit in trading, as it not only tracks your progress but also accelerates your learning curve. The most successful traders consistently review their past trades, assess their strategies, and refine their approach to stay ahead in the game. It’s been 6 hours since I entered the trade. I was patient and have mastered the art of trading psychology. With Gann Trading astro techniques and years of trading experience backed by data, I’ve honed my mindset for consistent success. For new traders, here are 10 ways to improve your trading psychology: 1. Cultivate Emotional Discipline. Mastering trading psychology begins with controlling emotions like fear and greed. Recognize emotional triggers and respond with logic, not impulsivity. 2. Develop a Trading Plan. A well-structured trading plan helps eliminate emotional decision-making. Include entry, exit, and risk management strategies to stay disciplined. 3. Practice Risk Management. Never risk more than a small percentage of your capital on a single trade. Knowing your maximum loss tolerance minimizes stress and preserves mental clarity. 4. Keep a Trading Journal. Record every trade, including rationale, outcomes, and emotions. Regularly review the journal to identify patterns and areas for improvement. 5. Focus on Process Over Outcome. Prioritize consistent execution of your strategy rather than obsessing over profits. This shift in mindset builds confidence and long-term success. 6. Learn to Accept Losses. Losses are a natural part of trading. Accept them as learning experiences rather than personal failures to maintain a positive mindset. 7. Practice Visualization and Mental Rehearsal. Visualize different market scenarios and how you will respond. Mental rehearsal prepares you for stressful situations and improves decision-making. 8. Stay Patient and Avoid Overtrading. Wait for high-probability setups that align with your strategy. Overtrading often stems from impatience and leads to unnecessary mistakes. 9. Maintain a Balanced Lifestyle. Take care of your physical and mental health. Regular exercise, proper nutrition, and adequate rest are essential for maintaining focus and emotional stability. 10. Seek Continuous Education. Stay updated with market trends, refine your strategies, and learn from experienced traders. An informed trader is a confident and less emotionally reactive trader. Once you follow all these steps, the market rewards you with good trading profits. Just like in this chart, I entered at the low and exited at the top by practicing patience and executing trades only with a Gann astro and mathematical edge. This disciplined approach ensures consistent results and builds the foundation for long-term trading success. 1. Gann's Principle: Time is More Important than Price. Understanding the timing of market movements is crucial, as time often dictates the outcome of trades more than price levels. 2. Everything in the Universe Vibrates on Specific Frequencies. Market trends and patterns are influenced by universal vibrations, making it essential to align trading strategies with these natural cycles.
CAPITALCOM:GOLDEducation
by GannAstroTrader
Psychological Strategy: "Buy The Rumour, Sell The News"Trumpcoin has given us a textbook example of how greed and enthusiasm work before major news events. ‘Buy the Rumor, Sell the News’ is one of the simplest yet most effective psychological strategies—it’s all about playing on people’s emotions. Next time you notice major economic or other significant news approaching, remember: markets tend to push hard before the event, but when the grand finale day arrives, sellers usually dominate. Use this knowledge to know when to take your profits and avoid falling into the FOMO trap! There are always opportunities to make money in the markets. 🤝 Swallow Team
Education
by SwallowAcademy
4
How Can You Trade with an Inverted Hammer Pattern?How Can You Trade with an Inverted Hammer Pattern? In trading, patterns are powerful tools, allowing traders to anticipate changes in trend direction. One such pattern is the inverted hammer, a formation often seen as a bullish signal following a downtrend. Recognising this pattern and understanding its implications can be crucial for traders looking to spot reversal opportunities. In this article, we will explore the meaning of inverted hammer candlestick, how to identify it on a price chart, and how traders can incorporate it into their trading strategies. What Is an Inverted Hammer? An inverted hammer is a candlestick pattern that appears at the end of a downtrend, typically signalling a potential bullish reversal. It has a distinct shape, with a small body at the lower end of the candle and a long upper wick that is at least twice the size of the body. This structure suggests that although sellers initially dominated, buyers stepped in, pushing prices higher before closing near the opening level. While the inverted hammer alone does not confirm a reversal, it’s often considered a sign of a possible trend change when followed by a bullish move on subsequent candles. The pattern can have any colour so that you can find a red inverted hammer candlestick or upside down green hammer. Although both will signal a bullish reversal, an inverted green hammer candle is believed to provide a stronger signal, reflecting the strength of bulls. One of the unique features of this pattern is that traders can apply it to various financial instruments, such as stocks, cryptocurrencies*, ETFs, indices, and forex, across different timeframes. To test strategies with an inverted hammer formation, head over to FXOpen and enjoy CFD trading in over 700 markets. Hammer vs Inverted Hammer The hammer and inverted hammer are both single-candle patterns that appear in downtrends and signal potential bullish reversals, but they have distinct formations and implications: - Hammer: The reversal hammer candle has a small body at the top with a long lower wick, indicating that buyers pushed prices back up after a period of selling pressure. This pattern shows that sellers were initially strong, but buyers regained control, potentially signalling a reversal. - Inverted Hammer: The inverted hammer, by contrast, has a small body at the bottom with a long upper wick. This structure indicates initial buying pressure, but sellers prevented a complete takeover. This pattern suggests that buyers may soon regain strength, hinting at a possible trend reversal. Both patterns signal possible bullish sentiment, but while the green or red hammer candlestick focuses on buyer strength after selling, the inverted hammer suggests buyer interest in an overall bearish context, needing further confirmation for a trend shift. How Traders Identify the Inverted Hammer Candlestick in Charts Although the inverted hammer is easy to recognise, there are some rules traders follow to increase the reliability of the reversal signal it provides. Step 1: Identify the Pattern in a Downtrend - Traders ensure the market is in a downtrend, as the inverted hammer is only significant when it appears after a period of sustained selling pressure. - Then, they look for a candlestick with a small body at the lower end and a long upper wick that’s at least twice the size of the body. This upper shadow shows initial buying pressure followed by selling, suggesting a potential reversal in sentiment. Step 2: Choose Appropriate Timeframes - The pattern can be seen across various timeframes, but daily and hourly charts are particularly popular for identifying it due to their balance of signals and reliability. - Higher timeframes charts generally provide more reliable patterns, while shorter timeframes, like 5 or 15-minute charts, might lead to more false signals. Step 3: Use Indicators to Strengthen Identification - Volume: A rise in bullish trading volume after the inverted hammer can indicate stronger interest from buyers, increasing the likelihood of a trend reversal. - Oscillators: Oscillators like Stochastic, Awesome Oscillator, or RSI showing an oversold reading alongside the candle can further suggest that the asset might be due for a reversal. Step 4: Look for Confirmation Signals - Gap-Up Opening: A gap-up opening in the next trading session indicates buyers stepping in, giving further weight to the bullish reversal. - Bullish Candle: Following the inverted hammer with a strong bullish candle confirms that buying pressure has continued. This is a key signal that a trend reversal may be underway. By following these steps and waiting for confirmation signals, traders can increase the reliability of the inverted hammer’s signals. Trading the Inverted Hammer Candlestick Pattern Trading the inverted hammer involves implementing a systematic approach to capitalise on potential bullish reversals. Here are some steps traders may consider when trading: - Identify the Inverted Hammer: Spot the setup on a price chart by following the rules discussed earlier. - Assess the Context: Analyse the broader market context and consider the pattern's location within the prevailing trend. Look for support levels, trendlines, or other significant price areas that could strengthen the reversal signal. - Set an Entry: Candlestick patterns don’t provide accurate entry and exit points as chart patterns or some indicators do. However, traders can consider some general rules. Usually, traders wait for at least several candles to be formed upwards after the pattern is formed. - Set Stop Loss and Take Profit Levels: The theory states that traders use a stop-loss order to limit potential losses if the trade doesn't go as anticipated. It may be placed below the low of the candlestick or based on a risk-reward ratio. The take-profit target might be placed at the next resistance level. Inverted Hammer Candlestick: Live Market Example The trader looks for a bullish inverted hammer on the USDJPY chart. After a subsequent downtrend, the inverted hammer provides a buying opportunity that aligns with the support level. They enter the market at the close of the inverted hammer candle and place a stop loss below the support level. Their take-profit target is at the next resistance level. A trader could implement a more conservative approach and wait for at least a few candles to form in the uptrend direction. However, as the pattern was formed at the 5-minute chart, a trader could lose a trading opportunity or enter the market with a poor risk-reward ratio. Advantages and Limitations of Using the Inverted Hammer The inverted hammer has its strengths and limitations. Here’s a closer look: Advantages - Simple to Identify: The pattern is easy to recognise on charts due to its unique shape, making it accessible for traders at all experience levels. - Can Be Spot in Different Markets: The candle can be found on charts of different assets across all timeframes. - Straightforward Trading Approach: It offers a straightforward signal that can be incorporated into broader trading strategies, especially with confirmation signals. Limitations - Reliability Depends on Confirmation: The candle alone does not guarantee a market reversal; it requires confirmation from the next candlestick or other indicators. Without this, the reversal signal may be weak. - Works Only in Strong Downtrends: The pattern might be more effective in strong downtrends; in ranging or weak trends, it generates less reliable signals. - False Signals Can Occur: False signals are possible, especially in volatile markets. Over-reliance on this pattern without additional analysis may lead to poor trade outcomes. Final Thoughts While the inverted hammer can provide valuable insights into potential trend reversals, it should not be the sole basis for trading decisions. It is important to supplement analysis with other technical indicators and tools to strengthen the overall trading strategy. Furthermore, effective risk management strategies are crucial while trading the setup. Setting appropriate stop-loss orders to limit potential losses and implementing proper position sizing techniques can help potentially mitigate risks and protect trading capital. If you are ready to develop your trading strategy, open an FXOpen account today to trade in over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50. Good luck! FAQ Is an Inverted Hammer Bullish? Yes, it is considered a bullish reversal pattern. It indicates a potential shift from a downtrend to an uptrend in the market. While it may seem counterintuitive due to its name, the setup suggests that buying pressure has overcome selling pressure and that bulls are gaining strength. How Do You Trade an Inverted Hammer? To trade an inverted hammer, traders wait for confirmation in the next session, such as a gap-up or strong bullish candle. They usually enter a buy position with a stop-loss below the low of the pattern to potentially manage risk and a take-profit level at the closest resistance level. Is the Inverted Hammer a Trend Reversal Signal? It is generally considered a potential trend reversal signal. An inverted hammer in a downtrend suggests a shift in market sentiment from bearish to bullish. An inverted hammer in an uptrend does not signify anything. What Happens After a Reverse Hammer Candlestick? After a reverse (or inverted) hammer candle, there may be a potential bullish reversal if confirmed by a strong bullish candle in the next session. However, without confirmation, the pattern alone does not guarantee a trend change. How Do You Trade an Inverted Hammer Candlestick in an Uptrend? In an uptrend, an inverted hammer isn’t generally considered significant because it’s primarily a reversal signal in a downtrend. Are Inverted Hammer and Shooting Star the Same? No, the inverted hammer and shooting star look similar but occur in opposite trends; the former appears in a downtrend as a bullish reversal signal, while the latter appears in an uptrend as a bearish reversal signal. What Is the Difference Between a Hanging Man and an Inverted Hammer? The hanging man and inverted hammer differ in both appearance and context. The former appears at the end of an uptrend as a bearish signal and has a small body and a long lower shadow, while the latter appears at the end of a downtrend as a bullish signal and has a small body and a long upper shadow. What Is the Difference Between a Red and Green Inverted Hammer? A green (bullish) inverted hammer candlestick closes higher than its opening price, indicating a stronger bullish sentiment. A red (bearish) inverted hammer candlestick closes lower than its opening, which might indicate less buying strength, but both colours can signal a reversal if followed by confirmation. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. 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
1
Commitment of Traders Modelled as Stratified Poissant Processes Hey! This video theorizes about the relevance of the poissant process in predicting areas of support and resistance in a way that accounts for temporal and probabilistic grounding. Essentially, the commitment of traders is modelled as a poissant process. Lambda is remeasured at each time step and the stratas' opacity reflects the strength of the probability, modelling trader capitulation as a time decay function. The recency and recurrence of information is intuitive and visible at a glance. Enjoy!
COINBASE:BTCUSDEducation
by garysebastianbrowniii
3