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Advanced Chart Pattern That Pro Trader Must Know 📉CUP AND HANDLE PATTERN A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.A cup and handle is considered a bullish signal extending an uptrend, and it is used to spot opportunities to go long. Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern. There can be both bullish and bearish Cups and Handles. 📊DIAMOND PATTERN The diamond pattern is a reversal indicator that signals the end of a bullish or bearish trend. It is most commonly found at the top of uptrends but may also form near the bottom of bearish trends. The bullish diamond pattern occurs after a strong downward move in price. It consists of two resistance levels that constrain previous retracements and two support levels that have constrained the downtrend. Also known as the diamond bottom pattern, the bullish diamond pattern signals a buying opportunity. Often it is the precursor for a bullish breakout. The Bearish Diamond Pattern, is the mirror opposite of the bullish one, even though it works on the same logic and it indicates the end of the uptrend. 📈SCALLOP PATTERN A scallop chart pattern is a technical analysis pattern that signals a short-term continuation of a bullish trend. It is created when prices make an upward-sloping curve that resembles the letter J on a price chart. That's why it's sometimes referred to as a J-shaped or J hook pattern. During the scallop formation, prices move higher, retrace, and trade lower for a short period before reaching a new peak. This indicates a short-term weakness of the ongoing uptrend and indecision in the market as to whether the trend will continue or not. But if prices are able to hold above the retracement zone for a while, it implies a strong momentum behind the uptrend and a potential breakout of the resistance level. The pattern is considered complete when you see prices break out above the key resistance level and rally to a new high. Once the upward breakout occurs, it confirms the continuation of the prevailing uptrend and a positive outlook on the market for the near future. There are both bearish and bullish Scallop Patterns and both can be used successfully. 📚FINAL REMARKS: Though these patterns are somewhat rare, it is essential for an advanced trader to know about them and to know how to use them, because that knowledge might provide you the missing piece of the puzzle in a difficult market making the difference between a good day and bad day. Which is all that matters after all. So I recommend you to spend some time and learn about the obscure patterns and to make it your goal to find them or at least look for them to give your brain enough data to let it do it’s pattern recognition learning magic. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
7
❌NO RISK OF LOSS=NO CHANCE OF GAIN✅ *️⃣There are several reasons why losses are part of the game: 1️⃣Emotion: Traders, just like all human being, are prone to emotional bias, which can lead to impulsive decision making and ultimately to losses. 2️⃣Probability: Even with the best trading strategy, there will be losing trades. It's important to remember that not all trades will be successful, and losses are a normal part of the process. A successful trader should aim to have more winning trades than losing ones. 3️⃣Markets are unpredictable: Even the most experienced traders can't predict market movements with 100% accuracy. Unforeseen events, such as natural disasters or major political announcements can cause sudden changes in market conditions, leading to losses. 4️⃣Risk is inherent in trading: All forms of investing involve some level of risk. In trading, the risk is even greater due to the fast-paced nature of the markets and the fact that positions are often held for shorter periods of time. 5️⃣There is no Holy grail strategy: There is no one strategy that will work in every market condition and for every trader. Different strategies work better in different market conditions, and a trader should be flexible and adaptable to changing market conditions. ▶️It's important to remember that losses are a normal part of trading, and traders should not be discouraged by them. Instead, traders should focus on managing risk, learning from losses, and continuing to develop and refine their trading strategies over time. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that
Education
by ProSignalsFx
10
🔲15 TRADING TOPICS YOU SHOULD LEARN🔲 Hey traders, Here is the list of topics that you must study in trading to trade like a pro. ▪️Price Action ▪️Trading Psychology ▪️Trend Lines ▪️Fibonacci ▪️Breakout Trading ▪️Fundamentals ▪️Key Levels ▪️Supply & Demand Zones ▪️Risk Management ▪️Candle Patterns ▪️Chart Patterns ▪️Supply & Demand ▪️Fundamentals ▪️Risk to Reward Analysis ▪️Technical Indicators 🔲Spend at least a week on each topic. I guarantee you that your trading performance will dramatically improve once you learn all these concepts. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
6
Classic Reversal Pattern You Must Know ☑️WHAT IS THE RISING WEDGE PATTERN? The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish). A rising wedge can be both a continuation and reversal pattern, although the former is more common and more efficient as it follows the direction of an overall trend. The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. ☑️KEY FEATURES • The price action temporarily trades in an uptrend (the higher highs and higher lows) • Two trend lines (support and resistance) that are converging • The decrease in volume as the wedge progresses towards the breakout The third point is seen more as a boost to the validity and effectiveness of the pattern, rather than a mandatory element. And it is applicable either for stocks trading mostly. ☑️SPOTTING THE RISING WEDGE Identifying a rising wedge is not so difficult. As a first step, you should eliminate all types of wedges that are present in the sideways-trading environment. The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. ☑️TRADING THE RISING WEDGE Trading the rising wedge pattern is pretty easy. After we correctly identified the pattern all we need to do is wait patiently for the breakout of the wedge to the downside. After the breakout is confirmed(usually at least a 4H candle needs to close below the broken level) we can place a limit order to short the pair on a pullback giving us a better risk to reward ratio. The correct Stop Loss should be placed above the last higher high established by the wedge before the breakout. What concerns the Take Profit level, it must be based on the technical levels below( If there are any). If not, then we might use Trailing Stop or just choose a minimal acceptable RR of 1:1,5 ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
🔥TYPES OF FIBONACCI TOOLS🔥 There are several types of Fibonacci tools that are commonly used in technical analysis, including: 📊FIBONACCI RETRACEMENT Fibonacci retracement levels—stemming from the Fibonacci sequence—are horizontal lines that indicate where support and resistance are likely to occur.Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. 📊FIBONACCI EXTENCION Fibonacci extensions don't have a formula. When the indicator is applied to a chart, the trader chooses three points. The first point chosen is the start of a move, the second point is the end of a move and the third point is the end of the retracement against that move. The extensions then help project where the price could go next. Once the three points are chosen, the lines are drawn at percentages of that move.Extensions are drawn on a chart, marking price levels of possible importance. These levels are based on Fibonacci ratios (as percentages) and the size of the price move the indicator is being applied to. 📊FIBONACCI PROJECTION Fibonacci projections are mainly used to get the possible target levels of an ongoing uptrend or downtrend. It is drawn by joining three points unlike Fibonacci Retracement which has just two points- by joining the lowest and the highest points of a pre-defined.In order to draw the Fibonacci projections for an asset in an uptrend, we need 3 points: 👉Swing Low - that is the point from which the actual trend started. 👉Swing High - the point at which price started to retrace. 👉Low of the ongoing price correction. Fibonacci projections provide potential good levels to book profits. The important Fibonacci projections levels to watch out for are 61.8%, 100%, 161.8%, 200%, and 261.8%. 📊FIBONACCI EXPANSION(SIMILAR TO PROJECTION) Essentially, Fibonacci expansions allow us to project how far a potential price move is likely to travel. This price move is typically considered an impulsive price move, in the context of Elliott wave. That is to say that it will typically follow a corrective phase and thus form a new trend leg in the direction of the larger trend.In that way it is very different compared to Fibonacci retracements. Unlike Fibonacci retracements which measure an internal retracement against a larger trend leg, a Fibonacci expansion measures an external price leg. CONCLUSION It's important to note that the use of Fibonacci tools in trading is just one aspect of technical analysis and should not be used in isolation. I myself use Fibonacci regularly but I also combine them with technical key levels and with the price action patterns on top of that. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
15
Learn Fibonacci Retracement Tool ☸️WHAT ARE FIB RETRACEMENT LEVELS Fibonacci retracement levels are horizontal lines that indicate the possible support and resistance levels where price could potentially reverse direction. The first thing you should know about the Fibonacci tool is that it works best when the market is trending. The idea is to go long on a retracement at a Fibonacci support level when the market is trending UP. And to go short on a retracement at a Fibonacci resistance level when the market is trending DOWN. Fibonacci retracement levels are considered a predictive technical indicator since they attempt to identify where price may be in the future. ☸️FINDING FIB RETRACEMENT LEVELS In order to find these Fibonacci retracement levels, you have to find the recent significant Swing Highs and Swings Lows. Then, for downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. For uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High. ☸️HOW TO USE Once you’ve done that, you will see the following levels appear: 23.6% , 38.2%, 50.0%, 61.8% and 76.4%. (The 50% one is not technically a Fib level but its still used by everyone)The idea is that the price will make a correction that will reverse at one of these levels. So all we need to do is watch the price action near these levels and look for the reversal patterns, like triple bottom, head and shoulders, narrowing wedge breakouts, etc… Once the we see a confluence of the Fib level and the reversal pattern, we can just wait for the confirmation breakout and enter the trade on the pullback. EASY!👻 ☸️WHY IT WORKS Because of all the people who use the Fibonacci tool, those levels become self-fulfilling support and resistance levels. If enough market participants believe that a retracement will occur near a Fibonacci retracement level and are waiting to open a position when the price reaches that level, then all those pending orders will impact the market price. ☸️IMPORANT REMINDER One thing you should take note of is that price won’t always bounce from these levels. They should be looked at as areas of interest so as I wrote above, one can’t simply trade off these levels, but needs to employ reversal patterns with confirmation to increase the probability rate of one’s calls. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Trading Basics | Learn What is a PIP 👉What is a Pip? The unit of measurement to express the change in value between two currencies is called a “pip.” If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP. A pip is usually the last decimal place of a price quote. Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out to two decimal places). For example, for EUR/USD, it is 0.0001, and for USD/JPY, it is 0.01. 👉What is a Pipette? There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places. They are quoting FRACTIONAL PIPS, also called “points” or “pipettes” which equal a 10th of a pip. 👉How to Calculate Pip Value: 👉The value of pip depends on the following three factors: ✔️The quoted currency ✔️The volume of the trade ✔️And the exchange rate Based on these factors the fluctuation of even a single pip can have a significant impact on the value of the open position. The value of 1 pip is calculated by the following formula: The value of 1 pip = (Pip in decimal places * Trade Volume) 👉Example: 1 pip volume in EUR/USD is equal to 0.0001 Then 1 PIP VALUE equals: 100,000 EUR—> 100,000*0.0001= 10 USD 10,000 EUR—> 10,000*0.0001= 1 USD 1,000 EUR—> 1,000*0.0001= 0.1 USD 100 EUR—> 100*0.0001= 0.01 USD ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
7
☠️COMMON MISTAKES IN TRADING☠️ 1. Not having a trading plan: A trading plan is a set of rules that outlines a trader's entry and exit points, risk management strategy, and overall trading approach. Without a plan, traders are more likely to make emotional and impulsive decisions. 2. Not managing risk properly: Risk management is crucial in trading, as it helps to limit potential losses and protect trading capital. Traders should always use stop losses and position sizing to manage risk. 3. Overtrading: Overtrading is when a trader takes on too many trades at once, which can lead to over-exposure to risk. Traders should focus on quality over quantity when it comes to trades and only take on trades with a high probability of success. 4. Chasing losses: Chasing losses is when a trader tries to recoup losses by increasing their trade size or taking on additional trades. This is a dangerous behavior as it can lead to over-exposure to risk and a depletion of trading capital. 5. Not staying disciplined: Trading discipline is crucial for success. Traders should stick to their trading plan and avoid making impulsive decisions based on emotions such as greed, fear, and hope. 6. Not keeping a trading journal: Keeping a trading journal can help traders to track their progress, identify patterns in their trading, and make adjustments to their strategy. 7. Not having a proper understanding of the markets: Understanding the markets, economic news, and the underlying assets you are trading is crucial. Not having a proper understanding of the markets can lead to bad decision making. 8. Not diversifying: Putting all your eggs in one basket by not diversifying your portfolio can expose you to a higher risk. Traders should diversify their portfolio across different markets, asset classes, and strategies to minimize risk. 9. Not getting educated: it is much better to learn form other people’s mistakes especially if this can save you years of your time and thousands of dollars. There is no reason not to tap the wealth of knowledge accumulated by generations of traders because it will make you a profitable trader much faster. In conclusion, trading can be a challenging and risky endeavor, but by following a well-defined trading plan, managing risk properly, staying disciplined, and avoiding common mistakes, traders can increase their chances of success. Stop loss is a powerful tool to manage risk and limit potential losses, but it's important to choose the right method that suits the trader's strategy and risk tolerance. Keeping a trading journal, having a proper understanding of the markets, and diversifying your portfolio are also important to maximize your chances of success. It's important to remember that the most successful traders are those who are able to learn from their mistakes and adapt their approach over time. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
Learn False Breakout in Trading | Technical Analysis Basics ⭕️False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. ⭕️A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way ⭕️A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. ⭕️Generally speaking, a false-breakout happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. ⭕️It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
⚡️LEARNING FROM YOUR MISTAKES=GROWTH⚡️ 🌟Mistakes in trading are inevitable, but it can also be a valuable growth experience. Everyone is likely to make a mistake at some point, whether it's forgetting to set a stop loss or missing some important news, but you can turn a mistake into a positive situation by using it as an opportunity to learn and become better at your style of trading by not making the same mistakes again. 🌟Showing that you've learned from your mistakes can also increase your trust in your system and prove that you are willing to put effort into improving yourself. Additionally, learning from your mistakes and viewing them as positive experiences can help increase your confidence and free you from the fear of failure. 🌟When you make a mistake, try to admit it as soon as you can, and apologize if necessary. Apologizing can show that you regret your mistake, that you are willing to take responsibility for it and that you're using it as an opportunity to improve yourself. 🌟Think about what caused the mistake and how you resolved it and note things that you did well or poorly. Analyzing and understanding your mistake can help you determine what you can do differently to ensure that the mistake does not happen again. It can also help you identify solutions for future mistakes. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
10
Learn Engulfing Candlestick Pattern ☑️WHAT IS A BULLISH ENGULFING CANDLE? The bullish engulfing candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in trend as more buyers enter the market to drive prices up further. The pattern involves two candles with the second candle completely engulfing the body of the previous red candle. ☑️HOW TO SPOT A BULLISH ENGULFING PATTERN AND WHAT DOES IT MEAN? ▪️Characteristics of a bullish engulfing pattern: • Strong green candle that ‘engulfs’ the prior red candle body (disregard the wicks) • Occurs at the bottom of a downward trend • Stronger signals are provided when the red candle is a doji, or when subsequent candles close above the high of the bullish candle. ▪️What does it tell traders? • Trend reversal to the upside (bullish reversal) • Selling pressure losing momentum at this key level. ▪️Advantages of trading with the bullish engulfing candle: • Easy to identify • Attractive entry levels can be obtained after receiving confirmation of the bullish reversal. ☑️KNOW THE DIFFERENCE BETWEEN A BULLISH AND A BEARISH ENGULFING PATTERN Engulfing patterns can be bullish and bearish. The bearish engulfing pattern is essentially the opposite of the bullish engulfing pattern discussed above. Instead of appearing in a downtrend, it appears at the top of an uptrend and presents traders with a signal to go short. It is characterized by a green candle being engulfed by a larger red candle. ☑️CONCLUSION A Bullish Engulfing Candle becomes an excellent tool for the trader, once he masters how to use it properly! ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
6
🏵MOVING AVERAGE TYPES🏵 🏆What Is A Moving Average: A moving average is one of the lagging technical indicators which the traders and investors use for determining the trend’s direction. It totals the data points of the chart and then divides the total by the number of data points over a specific time period for arriving at an average. It is referred to as the “moving” average as it is continually recalculated which is based on the latest price data. The moving average is used by the trader for determining support and resistance by evaluating the price movements. This indicator shows the previous price movement of the asset which the traders use to determine the potential direction of the future price move. 🏆Simple Moving Average: The SMA Is the simplest moving average that is obtained by adding the most recent data points set and then dividing the total by the number of time periods. The SMA indicator is used by traders to generate signals of when to enter or exit the trade. An SMA is a lagging indicator as it is based on the past price data for a given period that can be computed for different types of prices such as high, low, open, and close. Traders use this indicator for determining buy, sell signals. It also helps to identify support and resistance zones. 🏆 Exponential Moving Average (EMA): EMA is the other type of moving average that gives more weight to the most recent price points and makes it more responsive to recent volatility. EMA is more responsive to recent price change when compared to the SMA as it applies the same weight to all price changes in the given specific period. 🏆Most Common MA’s: • 20ema - Best for shorter time frames and volatile price movement • 50ema - Good for overall trend insight and outlook • 200ema - Best for longer time frames and larger trends 🏆KEY TAKEAWAY: While one might prefer one or the other type of MA, traders can use both to gain the trading edge. The key is to know how to use the indicator properly. I can say for myself that I use both sometimes, especially when going through my stocks watchlist and these indicators have proven to be effective despite being relatively simple. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Editors' picks
Education
by ProSignalsFx
33
Relative Strength Index (RSI) | Technical Indicator You Must Kno ✳️What is the RSI Indicator What is the RSI Indicator? The relative strength index is a market indicator that signals when the asset is over-bought or over-sold. This is a momentum-following indicator that measures how fast the price is moving and changing. The RSI uses different types of averages, but its primary purpose is to show whether a trend is strong or weak within a series of prices. In general, a strong trend is indicated by values close to 100 while a bearish trend is often indicated by a value near 0. ✳️RSI Indicator Settings The RSI has the standard setting. When you activate the indicator in any platform the defualt setting are 3 values. They are 6, 14 and 24. These are averages. The 30 and 70 value lines are calculated based on the lower and upper values and the middle lines is the oscillar which is a 14 period average. When the 14 period oscillator is above the 24 period is overbought and when the 14 period is below the 6 period is oversold. ✳️Opening Positions on RSI Signals The main signal the RSI oscillator generates allows defining overbought and oversold price ranges. Although it is frequently used as a filter in systems where the main indicator is a trend one, it might be possible to try trading using RSI signals only. When indicator’s line goes above the level 70 or below the level 30, it signals that market is overbought/oversold, and it is necessary to wait for the next signal confirming a trend reversal. ✳️RSI Trendlines Contrary to popular belief, the Relative Strength Index (RSI) is a leading indicator. This quality can be observed by using trendlines on the RSI chart and trading its break. When the RSI is rising, an upward trendline is drawn by connecting two or more lows and projecting the line into the future. Similarly, when the RSI is falling, a downward trendline is drawn by connecting two or more highs and projecting the line into the future. A break of an RSI trendline precedes an actual price reversal or continuation in the market. For instance, if the asset price breaks above a downward trendline, it is a signal that the price is about to edge upwards, either as a continuation of an uptrend or as a reversal of an existing downtrend in the market. ✳️RSI and Chart Patterns The Relative Strength Index is one of the best technical indicators to complement raw price action signals delivered by candlestick patterns or line chart patterns. For instance, when a bullish candlestick, such as a pin bar, or a price chart pattern, such as a double bottom, occurs in a downtrend, a buy position can be opened when the RSI displays a reading of below 30 to imply oversold conditions. ✳️RSI Divergence The Relative Strength Index also delivers divergence signals that could be a viable trading opportunity. A divergence occurs when the asset price and RSI do not move in the same direction. A positive (bullish) divergence occurs when the price is drifting lower, but the RSI is edging higher. This is a signal that the price may be heading towards a bottom and an upward reversal is about to happen. On the other hand, a negative (bearish) divergence occurs when the price is drifting higher, but the RSI is going lower. This is a signal that price may be heading towards a top and a downward reversal is about to happen. ✳️RSI and RVI Both the RSI and the RVI(Relative Vigor Index) are oscillators, but their different qualities can help traders to pick out high-quality RSI trading opportunities in the market. Whereas the RSI focuses on price extremes (high and low), the computation of RVI seeks to relate closing prices to open prices. This means that the RVI has both positive and negative numbers, with the centreline being 0. The RVI gives information on the strength of price movement, with positive values indicating increasing momentum, whereas negative values denote decreasing momentum. The RSI is the best indicator to complement or qualify the signals delivered by the RVI, especially in trending markets. For instance, if the market is in an uptrend and the RVI delivers a bearish divergence signal (prices go higher whereas RVI goes lower). In this case, a retracement or a trend reversal will be confirmed if the RSI reading is above 70, which implies overbought trading conditions. ✳️Here is the list, though now at all exhausting of the ways to use RSI in your trading. I will add that I use it myself, even though you don’t see it on my charts for aesthetic reasons. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
21
🧭ORDER TYPES IN TRADING🧭 ⚙️STOP ORDER This one is better to be explained with the examples: These orders can be used for trading breakouts. If you thought the EUR/USD would rally further after a move above the 1.1500 level, you would place a buy stop for entry at 1.1501. As the market printed 1.1501, your buy stop would become a market order and be filled at the next best price available. If you thought that the EUR/USD would continue moving down if it traded down through the 1.1200 level, you would place your sell stop for entry at the 1.1199 level. As the market printed 1.1199, your sell stop would become a market order and be filled at the next best price available. ⚙️MARKET ORDER The market order is probably the most basic and often the first order type traders come across. Market orders are traded at market: if you want to get into the forex market immediately, you can trade a market order and be entered at the prevailing price. ⚙️LIMIT ORDER This one is better to be explained with the examples: If the EUR/USD is trading at 1.1294 and you thought it would trade down to 1.1200 before rallying, you would place your limit order to buy at 1.1200. If the EUR/USD is trading at the 1.12939 level and you thought it would rally up to 1.1300 before selling off, you would place your limit order to sell 1.1300. When using a limit order, you will only be filled at the price you designated or better. It’s important to remember that you should familiarize yourself with the platform you are working with before undertaking any form of trading activity. This can help minimize any impractical errors when executing or managing a trade. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
3
ORDER TYPES IN TRADING | LIMIT VS STOP ✴️Types of orders in trading There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level. ✴️Stops vs limits A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price. On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price. ✴️Stop orders explained You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order. ✴️Stop-loss orders A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price. ✴️Stop-entry orders A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price. If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price. Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum. ✴️Limit orders explained Like stop orders, limit orders can be used to open and close trades. ✴️Limit-entry orders A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above. ✴️Limit-close orders A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position. The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically. 😊Thank you for reading, guys😊 ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
5
❗️PLAN VS FOMO EFFECT❗️ ☑️A trader with a plan is someone who has a well-defined trading strategy that outlines their entry and exit points, risk management approach, and overall trading philosophy. ☑️They have a clear understanding of the markets they are trading and make decisions based on objective analysis and research. They are disciplined and stick to their trading plan, even in the face of losses or market volatility. They avoid impulsive decisions and emotions like fear of missing out (FOMO) that can lead to bad trades. ☑️On the other hand, a trader with FOMO is someone who makes impulsive decisions based on fear of missing out on potential profits. ☑️They may jump into trades without fully understanding the market conditions or conducting proper research. They may also ignore their risk management strategy, in an effort to make quick profits. They often enter trades based on rumors or tips from others, rather than their own analysis. This type of trader is more likely to make poor trades and suffer significant losses. ☑️In summary, a trader with a plan is someone who is disciplined, objective, and systematic in their approach to trading, while a trader with FOMO is impulsive, emotional, and reactive in their approach. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
7
Learn Risk-Reward Ratio | Risk Management For Beginners 📚The risk-reward ratio (or risk return ratio) measures how much your potential reward (or return) is, for every dollar you risk. 📚For example: If you have a risk-reward ratio of 1:3, it means you’re risking $1 to potentially make $3. If you have a risk-reward ratio of 1:5, it means you’re risking $1 to potentially make $5. You get my point. ⚠️Now, here’s the biggest lie you’ve been told about the risk reward ratio: “You need a minimum of 1:2 risk reward ratio.” This statement is incorrect! Because the risk-reward ratio is meaningless on its own. 📚Here’s an example: Let’s say you have a risk reward ratio of 1:2 (for every trade you win, you make $2). But, your winning rate is 20%. So out of 10 trades, you have 8 losing trades and 2 winners. Let’s do the math… Total Loss = $1 * 8 = -$8 Total Gain = $2 * 2 = $4 Net loss = -$4 By now I hope you understand the risk reward ratio by itself is a meaningless metric. Instead, you must combine your risk-reward ratio with your winning rate to know whether you’ll make money in the long run (otherwise known as your expectancy). 📍THEREFORE: The key to success is the combination of the RR and Win Rate in such a fashion that yields a positive return. 📙Example: 🔘If your RR is 1:1 then you start making money with 51% win rate and above. 🔘If your RR is 1:1,5 then you start making money with 41% Win rate and above. 🔘If your RR is 1:2 then you start making money with 34% win rate and above. 🔴The higher the RR the lower is the breakeven Win Rate! Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
Editors' picks
OANDA:XAUUSDEducation
by TopTradingSignals
80
Trading Styles Explained | Scalping, Day Trading, Swing Trading 🔘What is Scalping? Scalping is considered the most profitable but, at the same time, the most challenging trading strategy in any type of market. Alternatively, scalping is also known as high-frequency intraday trading because a large number of deals and the high speed of making them allow a scalper to earn on almost any market movement due to small but frequent profits. Traders who use scalping tactics, often called scalpers, profit by buying at low prices and selling at high prices. It's as simple as that. They make money on even the smallest divergence in the current price of an asset, so even the slightest fluctuations in the price of financial assets are seen as opportunities to make a profit. However, the downside of such an "easy" earning process is potentially minimal profit from a single trade. That is why scalpers often spend 24 hours at the monitor: many small transactions are made in parallel with very short holding periods (often in just a few minutes) to make more or less a weighty profit. Scalpers act quickly and constantly watch the intraday trading indicators. They take short positions in one trade and long positions in the next, looking for frequent, albeit tiny, chances. Basically, scalpers make money using the difference in the buy and sell price. These windows of opportunity are more common than massive price changes since even relatively calm markets are subject to regular fluctuations. Most traders using the scalping technique use charts with a time frame of one minute. Scalpers benefit from charts that show even the smallest price "pips." 🔘What is Day Trading? As the name suggests, day trading involves making multiple trades in a single day. Day traders rely heavily on technical analysis and sophisticated charting systems to detect trading patterns and identify strategic enter and exit opportunities. The day trader's objective is to make a living by making small profits on numerous trades and capping losses on unprofitable trades. Day traders typically do not keep any positions or own any securities overnight. Know for its fast pace and adrenaline-inducing approach, not all investors are suited for this approach to financial markets. However, day trading is arguable more than the pursue of profits: it is a lifestyle of pitting your wits against the market and living in a thrilling, high-risk environment. 🔘What is Swing Trading? So, what is swing trading? In the most general terms, it is a style of trading in the financial markets that focuses on identifying the cyclical nature of price movements. This approach assumes that each trend consists of several up and down phases. Swing traders try to take advantage of these short-term impulses and corrections. Traders working with this strategy tend to keep positions open for several days to take advantage of large market trends. Most swing traders follow the direction of the market trend. Their actions are dynamic. They may open long positions during an uptrend and short positions when a downtrend begins. When one bets on market trends, they often open a position and hold it for days or weeks (even months), depending on the opportunity presented by the trend. Like scalpers, swing traders capitalize on market volatility because it creates opportunities for them. In swing trading, there is no need to make decisions in real-time or quickly. That's why this method is popular with part-time traders; they can use their lunch hour to check the markets, for example. But an effective swing trading strategy requires patience, as the timing of holding an asset can fluctuate considerably. Therefore, it is not the best choice for people who are nervous in stressful situations. 🔘What is Investing? Investing involves putting money into a financial asset (stocks, bonds, mutual or exchange-traded fund, etc). that you expect will rise in value over time. Investors generally have a long time horizon and predominantly look to build wealth through gradual appreciation and compound interest rather than short-term gains. The shorter the time horizon, the higher the risk that you could lose money on an investment. That's why the Securities and Exchange Commission (SEC)'s Office of Investor Education and Advocacy recommends putting money in a savings account if you'll need to access it within three years. For all other goals, investing could yield much better returns. Some investors may even plan to hold onto their investments for multiple decades. ☘️Here are some basic details about scalping, day trading, swing trading and investing, and I hope that information will help our new members to decide what’s best for them. ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
7
🔥TOP FIVE INDICATORS FOR BEGINNERS🔥 📊ON-BALANCE VOLUME(OVB) IS: On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in the price.The theory behind OBV is based on the distinction between smart money – namely, institutional investors – and less sophisticated retail investors. As mutual funds and pension funds begin to buy into an issue that retail investors are selling, volume may increase even as the price remains relatively level. Eventually, volume drives the price upward. At that point, larger investors begin to sell, and smaller investors begin buying. 📊MOVING AVERAGE IS: A moving average helps cut down the amount of noise on a price chart. Look at the direction of the moving average to get a basic idea of which way the price is moving. If it is angled up, the price is moving up (or was recently) overall; angled down, and the price is moving down overall; moving sideways, and the price is likely in a range.A moving average can also act as support or resistance 📊RELATIVE STRENGTH INDEX IS: The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of the pair’s recent price changes to evaluate overvalued or undervalued conditions in the price of that pair. It can also indicate pairs that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition. 📊BOLLINGER BANDS ARE: Bollinger Bands are a form of technical analysis that traders use to plot trend lines that are two standard deviations away from the simple moving average price of a security. The goal is to help a trader know when to enter or exit a position by identifying when an asset has been overbought or oversold. Bollinger Bands were designed by John Bollinger. Bollinger Bands help by signaling changes in volatility. For generally steady ranges of a security, such as many currency pairs, Bollinger Bands act as relatively clear signals for buying and selling 📊MOVING AVERAGE CONVERGENCE DIVERGENCE(MACD) IS: The concept behind the MACD is fairly straightforward. Essentially, it calculates the difference between an instrument's 26-day and 12-day exponential moving averages (EMA). In calculating their values, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a nine-period EMA of the MACD itself is also plotted. This line is called the signal line, which acts as a trigger for buy and sell decisions. The MACD is considered the "faster" line because the points plotted move more than the signal line, which is regarded as the "slower" line. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
11
TOP 5 Price Action Secrets You Must Know 🔴Multi-candle patterns are more reliable The more candles a specific pattern contains, the more reliable it usually is. 3 candle patterns are better than single candle patterns. 30 candle patterns are usually better than 3 candle patterns. Patterns like head and shoulders, double and triple tops are among my favorites, exactly because of this reason. They consistently result in higher probability trades, which is what we’re all after. It doesn’t mean that a good pin bar setup won’t work, it just means there’s a higher probability of having these multi-candle setups resulting in a winning trade. 🟠Know where to place your stop loss Knowing where to place an order is just the beginning. Where do you place your stop loss? Fixed pips stop loss levels are hardly a good approach since the market volatility can change and every trade should be looked at within the context of the recent market history. 🟢Always look for confluence This is absolutely one of the most important secrets you have to know about. Confluence is everything. So you’ve found a sweet price action setup. Great! Now make sure it has confluence, meaning that it coincides with other valid signals that support your trading idea. 🔵Tell a story of what happened Every chart tells a story. It might be a story of clear direction or a story of messy back-and-forth battling between buyers and sellers. In a similar way, we can talk about clean price action vs messy price action. It is up to the trader to find the story and better understand what the market might do. 🟣Context is everything Depending on where a price action setup occurs, you should interpret it differently. The same pin bar could be bullish or bearish, depending on if they show up at the bottom of a downtrend or top of an uptrend, respectively. Not all patterns are also worth taking if they are not preceded by the right price action and happen at the levels that are in one way or the other of significance. 🟤Identify key support & resistance zones Support and resistance (or S&R for short) are terms used to denote areas where price reverses at its lowest point (support) and the highest point (resistance) on a chart. Often, these zones are “tested” multiple times as traders look for an increased buyer and seller activity around these levels. It’s important to note that support and resistance are usually not thin lines, but rather zones. 🔴The Bottom Line The price action strategy is one of the most powerful tools for extracting money from the markets with predictability and manageable risks, but only if used correctly. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
15
💵THE WORLD IN DEBT💵 ☑️The fact that the whole world is in massive Debt that can not be repaid is a buzzphrase that was around for like 20 years already. 20 years passed and nothing bad has happened, so what to worry about? In fact an entire political and economic movement called MMT or a modern monetary theory emerged claiming that government debt does not matter and that we can, you guessed it, print as much as we need(kinda) ☑️But the size of the debt itself was never really and issue so long as the government or a big company could service the debts. That is if their cashflow was positive enough to cover the interest payments on the debt. Now however, as the FED is raising rates, this is an issue. ☑️And its not the USA who’s pile of debt we need to be worried about(they are borrowing in the currency they can print themselves, remember?) but rather the rest of the world and the companies. The majority of developing countries don’t have the internal capital required for development, so they need to borrow on the international financial markets in Dollars. And these counties are now facing a perfect storm of a higher cost of new borrowings in Dollars, lower revenues from foreign trade due to recession(and yes we are in a recession, Wake up) and the massive energy and food costs due to the war in Ukraine and the problems caused by the supply chain crisis. ☑️Most big public companies aren’t doing great either. The share of listed companies with the debt servicing costs higher than the profits is now more than 25% and if we exclude the accounting and financial engineering shenanigans, it is save to say that this share is close to 30%. ☑️So the third of the economy is outright insolvent. Multiple countries will either default soon or will at least be plunge into civil and economic unrest and go the way of Sri-Lanka, Pakistan and others… And Jerome Powell said that he aint stopping and that the Fed funds rate should go up by at least 2 percentage points more. So instead of the collapse of the USA, we are likely to see a chain reaction debt crisis In the rest of the world unless the FED changes its mind… I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
7
❗️USE STOP LOSS AND BECOME A BETTER TRADER❗️ 🟩STOP LOSS IS:A stop-loss order is an order that automatically closes a losing position once the price hits the pre-specified level. We usually calculate SL in pips, but there can be many ways to set it. It can be time based, percentage based or volatility based. For some investors SL is some piece of critical news, which alters their perception of the value of the asset. Regular stop losses can be many and varied too, for example trailing stop. Also, we sometimes move SL to entry after the half close to protect the gains and make our position risk free.However, all situations I listed above have one thing in common and it is the fact that the SL was used! 🟥Honestly, I am amused by the massive number of people who send me screenshots of their MT4 with several open trades on the same pair all of them without SL and with 90% of account lost. And they ask me what should they do? A great illustration of what is would take to recover from such a loss, is on the drawing above. With the 90% loss, you have only one tenth of the original account left. That means you need to make ten times more money than you have left just to recover your losses. 999% gain needs to be made just to have your old account back. It took you a day to blow it, and might take months to recover the losses. This is the brutality of the trading. The market is unforgiving and will punish you if you treat is without respect. If you are careless or if you make mistakes. The market always comes back to collect, waiting for the moment you drop your guard and relax for a second. Please always use Stop Loss, because, as it happens, it stops you from losing too much! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Editors' picks
Education
by ProSignalsFx
119
✅TRADING ONE PAIR ONLY✅ “TO TRADE, OR NOT TO TRADE A SINGLE CURRENCY PAIR. THAT IS THE QUESTION…” 🧿MULTIPLE CURRENCY PAIRS Easier to recover from losses on a given currency pair Less likely to experience not seeing any setups for a whole day/week Better understanding of pair correlations required Can be more distracting 🧿SINGLE CURRENCY PAIR No risk of trading correlated pairs Better ability to focus Feeling of understanding the price movements more Can be a struggle to stick to ONE pair Feeling of missing out when big moves happen on other pairs ✅HOW TO TRADE SINGLE CURRENCY PAIR: 🔲Step 1: Pick Your Currency Pair ▪️Is the pair active when I intend to trade it? Even though the Foreign Exchange market is open 24/5, some pairs may be less traded at some specific times. Refer to "When To Trade Forex To Maximize Your Lifestyle & Profit?" ▪️Do you understand the currency pair you want to trade? If you trade a pair with your country's currency, your chances of understanding how the price of the pair fluctuates might be higher. You will know what's going on and might even be able to know where the currency is heading (we are talking of fundamental analysis here...). ▪️Is the pair too or not enough volatile for you? Don't be surprised to see big swings in GBP/JPY or GBP/NZD because those pairs are considered more volatile. Some traders like it because the profits usually come quickly, but stopped out trades can be more frequent.On the other hand, a pair like USD/CNY will have some inactivity periods and that might be frustrating. 🔲Step 2: Plan Your Trading Good strategies are abstract and should work on any currency pair, however, since you have decided to trade one pair only, you have the privilege of tailoring you strategy to the particular pair, taking into the account it’s volatility, average likelihood of fakeouts vs breakouts, how trending it is on average etc.. 🔲Step 3: Stay Consistent Stick to the plan for at least a month. You might start the month feeling excited. You might get discouraged because you've taken too many or too few trades two weeks in.No one cares. Stick to your decision.At the end of the month, two things will happen: 1. You'll have built more confidence in your ability to remain consistent. 2. You'll have performed an experiment and will be able to say what works vs. what doesn't. Those are two great things for someone who's looking to grow as a Forex trader. Thanks for reading bro, you are the best☺️ ✅Gimme a like and the Gods of Trading will favour you this week👍 Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
10