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Our team is always looking to meet new community members and read the outstanding content being created. We look forward to seeing your content! - Team TradingView
Education
by TradingView
45
10-6 Using Price/Fib Theory To Catch NFP MovesThis short video shows you how I used Fibonacci Price Theory techniques to identify trends, catch the biggest moves in price today on the SPY/SPX500. This is an instructional video - attempting to show you how to use PRICE (the ultimate indicator) to help you learn to become a better trader. How did I know price would REJECT at $425.40 this morning and sell downward? How did I know the bottom would confirm near $421.20? How did I know the price rejection near $421 (after the bottom) would result in a bullish rally phase? Fibonacci Price Theory teaches us: Price must always seek higher highs or lower lows - ALWAYS. Failure to establish higher highs means price will attempt to make lower lows. Failure to make lower lows means price will attempt to make higher highs. Watch the video. Ask questions if you have them. Price is the ultimate indicator - use it.
FX:SPX500Education
by BradMatheny
THE IMPORTANCE OF TAKING BREAKS IN TRADING✴️ How to do the job right Around 2-3 hours in the afternoon you feel tired, your brain is not working as actively as in the morning and you want to take a nap. Is that normal? More than normal. All of us to more or less conscious age were taught to sleep at night and stay awake all day. But it's not the best habit for our mental health and it's certainly not how our ancestors used to sleep. People in the pre-industrial era, when there was no electricity yet, would go to sleep around 8pm, then at around 2am wake up for a couple of hours, do some creative work, go visit neighbors and then go back to sleep until morning. A similar story happens during the day. The fact is that our brain prefers to fall asleep and wake up more often than once a day. From 2pm to 4pm is the so-called "Nap Zone", a time period ideal for daytime naps. It is known that the ancient Romans in the first century BC liked to nap in the afternoon, such breaks they called Meridiari, then they began to call them Sexta (sixth hour, according to their time measurement), well, and the word Sexta over time transformed into Siesta. Many studies show the positive effects of a short nap during the day. Concentration improves, attentiveness improves, you can do more things. Moving on. The following interesting keys are given to us by a 30-year study of people who are outstanding in their fields - musicians, athletes, writers, etc. Number 1 : it is only possible to perform at peak performance for about an hour without rest. This is worth taking note of for scalpers who follow the market intensively. If you have traded for an hour, take a break. Number 2 : people who have achieved great results in their fields practice/train about 4 hours a day on average. Increasing the workload time only leads to burnout and injury (in the case of athletes). Therefore, it makes little sense to trade more than 4 hours a day. And of course, the most effective period is from morning until lunchtime. If you have any business that requires extreme attention and concentration it is better to do it in the morning. If we summarize all of the above, then: • We do the most important thing in the morning • It is possible to work hard, at the limit of your capabilities without resting for only about an hour, feel free to take small breaks • It is pointless to practice trading/sports for more than 4 hours a day • Between 14 and 16 hours it would be good to allocate 15-20 minutes for a short nap An important note, if you have entered the flow you do not need to stop through force. If, for example, you are happily testing a new system until one o'clock in the morning, this is a good sign. ✴️ How to rest properly The best way to relax is something involving physical and mental activity, with deep immersion in the process. For example: rock climbing, painting, golf. The goal is to completely disconnect and not think about work/trading, etc. Of course, if you are wildly tired then sleep, watch TV series, play video games when it's simply not physical strength. And perhaps you should focus more on athletics If you want to play a sport. As for vacation in general, scientists agree that it should ideally be about one week every three months. Hard work or trading without weekends and vacations will only lead to health problems. You can't make all the money you want anyway. So, health is wealth. ✴️ Conclusion It is understandable that not everyone can apply the above tips. But if this post made you at least think about the importance of rest and breaks in work and trading, then this post was written for a reason. I myself thought for a long time that it was cool and great to be busy all the time, even sometimes I felt guilty during weekends or vacations when I didn't do anything, but as it turned out, there is nothing to feel guilty about without rest and breaks, productivity is simply impossible. Keep in mind the market will be here tomorrow. And if you feel that you want to take a break from trading for a day/week/month then go ahead. Nothing bad will happen, even on the contrary during this time you will surely come up with new, cool ideas on how to improve your trading.
Education
by DeGRAM
7
SIGNAL PROVIDER TESTIMONIALSWhen choosing signal providers, it is a difficult task to determine the quality of the provider. One way of course is to look at testimonials. Testimonials are a common tool used by signal providers to showcase success stories or attract potential customers. While testimonials can provide valuable information about a provider's performance, they should be approached with caution. It is important to study them thoroughly. Here are a few key factors to consider when you read forex signal provider testimonials: 1. Authenticity First of all, you need to make sure that the testimonials are genuine and not fabricated. This is where details are important. Look for specific details such as the trader's name, location and trading experience. General or vague testimonials without any identifying information should alert you. 2. Verifiability Check if testimonials can be verified through independent sources. Reputable signal providers often provide links to their clients' social media profiles or trading accounts, which allows you to cross-check the information provided. Such transparency indicates a higher level of trust, as testimonials without verification are not a good sign. 3. Consistency Analyze the consistency of testimonials. Do they all sound the same or use identical wording? For example, identical and short sentences. Such testimonials may indicate that they are scripted or fake. Genuine testimonials should reflect individual experiences and vary in tone and content. 4. Duration Pay attention to the duration of the testimonials. Are they recent or written several years ago? Testimonials that cover a significant period of time indicate consistent performance and reliability. But too old testimonials, say left 3 - 5 years ago, may not accurately reflect the current work of the provider. 5. Third-party testimonials Look for independent reviews as we do for example or testimonials about the signal provider in reputable sources like Trustpilot. Such reviews can provide an unbiased point of view and verify the claims made in the testimonials. Internet forums, social media groups, and specialized review websites are excellent resources for finding such information. 6. Track record Evaluate the overall track record of the signal provider. Does it have a track record of generally providing accurate and profitable signals? Look for evidence of long-term success, including consistent positive testimonials from numerous clients that reflect the provider's profitability. In conclusion, while testimonials can be a valuable tool for assessing the reliability of signal providers, you should approach them with skepticism. Considering factors such as authenticity, verifiability, consistency, longevity, third-party testimonials, track record and trial period give informed decisions on which signal providers to trust. One must remember that thorough research and due diligence are crucial when choosing a reliable signal provider.
Education
by UnknownUnicorn15614419
5
UNDERSTANDING COMPLEX PULLBACKWhat is a two-legged pullback ? A two-legged pullback in the market is a pattern of price action in which the market retreats in two separate steps or movements before resuming its primary trend. This is a counter-trend move. After a strong trending move, price needs to sort of take a break and there is a double attempt to reverse the trend. When the price hits a strong zone, the price pulls back from it and if the trend does not continue, a second pullback occurs. Here the second pullback is approximately equal to the first one. We use this model for 2 purposes in the market: - Projection of the next move - End of pullback If you look at the market, it likes power of two, be it a double top/bottom, a double test of the uptrend, followed by a breakout. Let's look at the example of the recent movement on EURUSD. As we can see the asset has been in a strong bearish trend for a long time. The price bounced off the support and made the first pullback and then the second one. Note that the first pullback ended where there were no strong levels. But when we have the second pullback, we can see that it ends right at the strong resistance. This was an additional signal to enter a trend trade. A two-legged pullback in the context of the market Traders using the two-legged pullback strategy usually wait for both legs of the pullback to complete before entering a trade. It is very important to look at the context of the market here. If it happens that the second leg breaks through the lower high or higher low, it is a reason to be wary because it is usually a sign of a trend shift. The first leg can be projected and wait for the price at these levels. If it coincides with a strong level, it is a trade with a high probability of success. Let's look at some examples The recent example of gold shows well the interaction of a two-legged pullback with a strong level. The first time we got a pullback A. The price paused and then went up. The question remains where we should wait for price. We simply take the A pullback and project it and get the approximate end of the C pullback. This pullback ended on a strong resistance, which led to the price reversal . The EURUSD, too, after a strong bearish movement, rolled back to the resistance, making a two-legged pullback. Note that the EURUSD touched a strong level and fell. Although it did not lead to a complete reversal of the price, but we got a reaction and a short term trade. Here you can see a perfect example that there can be a third leg, which exactly led to the price reversal. The UKOIL example perfectly shows a trending trade. The price bounced off the resistance, and as you noticed there was a two-legged move before that. When A and B have formed, we use the projection method to wait for the price at the end of C. The last example is a great example of a perfectly formation of the two-legged pullback. The price has not yet triggered the level. But what do we have here? A downtrend, a two-legged pullback and a strong resistance at 1.66000. Will the trend continue, what do you think? Let's see. Traders, If you liked this educational post, give it a boost and drop a comment.
Education
by Lingrid
7
WHAT IS A PRICE DECELERATION?✴️ What Is A Price Deceleration? A price deceleration is when the market slows down after a trend movement. It occurs when the price of an asset begins to slow down its ascending or descending impulse. It usually occurs at key levels, such as support and resistance. The price finds it difficult to make highs at resistance and lows at support. It all looks like an upward or downward wedge at levels or just channels. Price deceleration can occur at the end of a trend movement or at the end of a pullback. When the price approaches key levels, the bulls are reluctant to buy and the bears are reluctant to sell, which is characterized by price deceleration and poor highs and lows trading. As a result, this leads to a pullback or a complete reversal of the trend. Therefore, this one works well for price reversals. ✴️ Price Deceleration Identification One of the key features of a deceleration and then a price reversal is divergence. The pattern is formed when the price touches the channel border for the fourth time. Thus, we determine the first clues of the future price reversal or price continuation. Another important sign of deceleration is a decrease in the slope angle or steepness of the trend line, as well as a decrease in the size of price swings. It means that the price is squeezed before the impulse movement. Price usually shoots up and accelerates after the squeeze. ✴️ Confirmation Of Price Deceleration Oscillators are used to confirm the deceleration. For example, the relative strength index (RSI) shows divergence very well. Price, after a strong movement like a big ship, still makes some motion moving forward. So, it does not stop immediately. At this time, RSI shows that there is no strength in this movement and goes in another direction, confirming divergence and a soon reversal. Once we have four touches forming the channel, we can look for entry opportunities. Usually the 3rd or 4th touches of the border lead to reversal IF it is confirmed by RSI divergence. ✴️ Plan Your Entry and Exit Points Once we have identified the price deceleration, we need to plan entry and exit points. If the price touches the upper channel and the oscillator shows a bearish divergence, it can be called a confirmation. Usually, if there is a divergence, the price immediately goes in the opposite direction. The engulfing candlestick or pinbar can be used as a trigger to enter the market, as it perfectly shows the current market sentiment and the dominance of one of the sides, be it bulls or bears. The optimal risk/profit ratio in trades is 1:2, because if the trade is counter-trend, there is a probability that the price will go further along the trend. More Examples BTC/USD USD/CAD XAU/USD
Education
by DeGRAM
25
Joe Ross Trading StrategyHello everyone This post will be devoted to the trading methods of the famous trader Joe Ross. There is very little information about Ross on the internet, mostly copied from his books, so let's try to study this situation more deeply. The information is not for beginners. Support and resistance, trend lines, the concept of flat market, all this should be already worked out. You should already know and be able to apply them. You should also take into account that this Ross strategy used only in a trending market. It is not applicable in a sideways movement or choppy. 1-2-3 Setup 1-2-3 setup according to Ross is a reversal formation, that is, its development is information for thinking about the change of the current trend. This setup works absolutely on any timeframe and asset, which once again confirms its quality and flexibility. Bullish Setup This setup is formed at the end of the downtrend and consists of 3 key points. EURUSD chart, 1 hourly timeframe will be used as an example. What is the point of the setup; after the bearish movement, when the price consistently made new lower highs and lows, a breakout of the last local high was formed. This means that there may have been a change of movement and market sentiment. The setup is considered complete after the breakout of point 2. It is not the closing of the candle above point 2 that is considered a breakout, but the creation of a new high above this mark. After that it is taken as a condition that there is a new bullish trend. So, what we have in the case of a set-up occurring: • A clear 1-2-3 pattern • The pattern is finally formed and considered formalized after breaking the high/low at point 2 We identify the peaks, then we look for some sort of 1-2-3 formation to begin to emerge. If the last high is broken in a bullish setup, we look to see if this formation is clearly visible. If yes, we can enter the trade. Bearish Setup How this formation is built and what to pay attention to when marking charts. As we can see on the 1st chart, point 1 has formed a new low with its shadow. And here, when moving to the potential point 2 and then to point 3, the most important thing to pay attention to when marking this setup (for the example, we take a bullish setup) is hidden, namely: • The highs of the candles from point 1 to point 2 must be higher than the previous ones. In other words, each new candle makes a new high. As soon as the next candle is formed without making a high - we have point 2 • When moving from point 2 to point 3, each candle should make deeper lows, while the upper highs of the candles should not be higher than point 2. If shorter, we have a decline going down like a ladder • As soon as the next candle closed without forming a new low - ready, we have point 3 Ross Hooks (RH) The next step, and it is the main one in trading this method, is Ross's Hooks. This is the fundamental part of his strategy, which, by the way, uses it more than half a century. So, we have a 1-2-3 setup. There is a breakout of point 2 and the price goes up further. Each new candle makes a new low, while the highs does not go above the point 3. As soon as the next candle fails to make a new low, we have a Ross Hook (RH). Let's look at an example for clarity: We broke through point 2, created a new low and rolled back. The first RH and confirmation of the trend change to a downtrend appeared. Further price movement will be based on attempts to break through RH and pullback after the breakthrough and further attempts to establish new lows. It would be interesting to note that at the current stage we do not care what candles formed this trend, there is no need to pay attention to Price Action setups. Even this simplified view shows the development of the trend, its growth and direction. Later we will see how to apply hooks and trade with them in combination with Price Action setups. Ross Reversal Hooks Ross Reversal Hook (RRH) is formed by a pullback from RH and the formation of a new low in the current trend. Let's take a look at the same example above: Ross Trend Detection Methods So, let's summarize the main methods of determining the Ross trend and its pros and cons. Cons: • Firmly identifying a trend change happens quite late. In other words, a part of the trend movement is lost. • It is extremely rare that a 1-2-3 formation is formed, then RH, and the trend changes sharply to the opposite. Pros: • Despite the late entry, we have fairly reliable entries with low risks to our capital. • We have a strict orderly system and we can clearly see if there is a trend on the current timeframe or not. • The 1-2-3 and Rh formation works perfectly on any timeframe. • The period of trend change can be detected at an early stage if we apply filtering and Price Action methods. Now let's discuss trend detection methods in conjunction with basic Price Action methods. Forex trading is highly dependent on a few major factors. These are leverage size, spread size, lot size to trade, asset to trade. Now, as for the definition of trends. Ross' principles are applicable to any timeframe, so, having defined your trading timeframe (let's say 1 hour), you should proceed to 4 hourly, 1 daily, 1 weekly timeframes. On each of them, in accordance with the rules of technical analysis, mark the trend lines, starting from the higher timeframe. As a result, we get a picture on the trading timeframe, within which we can see the price movement at the current moment of time. And, having a complete picture, we mark 1-2-3 setups, hooks (if any) and the potential for further price movement. Finding the Best Trend Depending on the Timeframe How to determine if a trend is good? How to quickly and easily determine the timeframe, which is most interesting when trading using the Ross technique. Simply put, there should be a good growth, then a pullback of no more than 3 bars, possibly with the formation of RHR and a break of RH. If we see choppy market, a bunch of dojis, inside bars, incomprehensible moves; this timeframe is not quite well chosen. In particular, on GBPAUD a good timeframe can be seen on the 4 hourly timeframe, but on the hourly one the same trend does not look so good. Let's see: 4H 1H And it happens that on the hourly timeframe there is a perfect trend, but when you switch to the 4-hour or daily timeframe, there are confusions. The same is true for 15 minutes, and so on. The main thing is to learn to determine whether a trend is ""nice"" or not by just looking at it. It is also very useful to look at the previous trends on the selected timeframe. History repeats itself and trends can behave similarly precisely because there will be support and resistance lines in approximately the same places. RHs Filtering Methods Here we come to one of the most difficult parts of the Ross trade. RH filtering is something you need to pay the most attention to. Even if you don't trade Ross, but know his filtering methods - it helps a lot in terms of identifying such moments, what we call "false breakout", "collecting stops" and so on. Support and resistance line Trend line A price break or gap Accumulation The first and easiest way of filtering is, of course, in support and resistance lines. If we see that the hook hit the monthly resistance when trading on a 4 hourly timeframe, it is a good reason to think about whether a trend change will follow. But on the other hand, a breakout of the maximum of such a hook combined with strong resistance can be a good buy signal. Also, if the trend is long enough and the hook is formed at the resistance level, there is a good chance that the trend will turn sideways. The next way of filtering is the trend line or channel lines. They are good for determining the end of a pullback in a trend and the formation of reversal setups. This post is a simplified representation of Joe Ross's strategy, there are so many nuances, subtleties, and filters. Ross in his books shows combinations of his hooks with such indicators as Stochastic, ATR, Bollinger Bands, moving averages and much more. In practice, as soon as there is some "confusion" of the price, which is out of the framework of the normally current trend, you should put this tactic aside and use other ones. Hooks work exclusively in a trending markets. Traders, If you liked this educational post, give it a boost and drop a comment.
Education
by Lingrid
11
AUDIO/USDT Psychology. Accumulation. Distribution. Local fractalOne of many such cryptocurrencies whose price makes a huge profit from early accumulation. If you want to earn from a distance—buy and accumulate positions before the "promising crowd hype" or when working on similar instruments skillfully limit your potential losses. Coin Market: Audius AUDIO It's worth noting that a local fractal (the smart ones sell to the stupid ones) is forming in the distribution zone, which could potentially work (repeat). To sell it is necessary to make an "interest to earn" (to attract the less clever "traders"), in other words, waves to the growth of +500% on the secondary trends to attract attention. It is possible to make money on this, but with the condition of limiting potential losses. On such coins and at such values, it is rational to use stops, even at the "bottom" of the channel, if the price falls there. It's worth noting that you shouldn't trade marginally (including shorting) on such coins with such liquidity and price. The liquidity allows you to manipulate both ways making margin calls. Locally, this potential reversal zone looks as follows (the marker shows the direction of price movement) . Coin as an example. There are many of these. As a rule, people notice such coins when investors need to get rid of them rather than buy them. Greed and people's cloned mental behavior do the trick. New market entrants buy, old market entrants sell and then buy at a higher price (typical hamster behavior) or wait for even higher profits. Since people sometimes write to me asking me to consider such hamster coins when HYIP (the news "diarrhea" phase for selling promising coins) is going on, I decided to consider. Again, make money on this by "trading local price movements". One must work as a trader and not buy because of news background, promising super profits in distribution and expecting "cosmic targets". You need to limit your losses from the start and not be greedy. Coin as an example. The name of the crypto coin and the legend from the creators doesn't matter much. It's all the same and created for the same thing (earning from speculation). Always when trading an old/new instrument, you need to understand where the accumulation is, where the distribution is. And also, where the price is in the main trend.
by SpartaBTC
18
ACCUMULATION/DISTRIBUTION INDICATOR ✴️ Accumulation/Distribution (A/D) is a standard pack of technical analysis tools of many trading platforms. Today we will get to know this tool in detail and see how it works on Forex. This indicator can be especially interesting for supporters of the VSA method, as it takes into consideration trading volumes in its analysis. The author of the tool, world-known theorist and practitioner of technical analysis of stock markets Mark Chaikin, managed to describe the market phases with the help of volumes and price behavior: Accumulation - purchases of shares by investors and speculators; Distribution - sales of stocks at fixation of income. The forex market looks somewhat different: the accumulation or growth phase is interpreted by the A/D curve as an increase in the strength of the bulls, while the distribution or decline is perceived as an increase in the pressure of the bears' positions. ✴️ How indicator works Accumulation/Distribution is considered a technical tool for confirming or rejecting a trend. The growth or fall of prices on the chart must necessarily coincide with the direction of the indicator curve. All divergences are interpreted in the direction of A/D, i.e. any divergence is considered as a signal of the soon reversal of the currency pair. Indicator divergences from price are the most popular signals in technical analysis, but only A/D indicators have a high leading predictive accuracy. The indicator formula uses real volume indicators compared to price range changes, thanks to which Chaikin has achieved the best algorithmic display of VSA theory principles on the chart. ✴️ How to use the indicator in trading The most common strategy for applying Accumulation/Distribution is considered to be the oscillator method proposed by the author himself. It consists in finding the difference between two exponential moving averages with a period of 3 days and 10 days, taken from A/D values. Due to the settings of A/D to generate leading signals of trend change, the Chaikin oscillator (CHO) indicator has an important feature of signals synchronized with the current change in prices, despite the use of exponential averages, which traditionally lag due to averaging the result of calculations. The strategy of trading on the oscillator signals is to open positions: Long - the CHO curve crosses the zero line from bottom to top; Short - the CHO curve falls below the zero line. M. Chaikin suggested using divergence signals, divergence of tops and bottoms of the chart and oscillator trends as a trade filter, interpreting them in favor of CHO. The chart above shows how an uptrend is not confirmed by the next top of the curve, which means that we open a Short position at the zero line crossing from top to bottom. The situation is similar with a falling trend: if it is not confirmed by new CHO lows, we open a Long position after the indicator crosses the zero line. Positions are closed by reversal on the reverse signal, it is possible to insure the open order with a stop-loss moved to the breakeven zone. At the first opening of the trade, it is located at the nearest maximum or minimum, usually coinciding with the top CHO. Some traders who trade exclusively counter-trend divergence signals choose Accumulation/Distribution. As soon as a divergence is identified on the chart - a pending order is placed: Sell limit at the maximum not confirmed by the A/D indicator; Buy limit at the minimum at which the A/D divergence occurred. In other cases, the Accumulation/Distribution indicator is used as part of trading systems as an overbought/oversold oscillator filter. The picture below shows a simple MA + RSI strategy, where one of the conditions for a sell signal is the A/D divergence in the overbought zone. Having confirmed the trend reversal in this way, the trader waits for the prices to cross the MA and opens a Sell order on the market. ✴️ In conclusion Accumulation/Distribution is a sample of perfect synchronization of trading volume indicators with the dynamics of market quotes. The indicator is easy to interpret and use, it will not cause problems with its application even for a beginner, as it has no settings that would have to be selected. Like any other tool of the chanalysis, A/D indicators are better used as a part of trading systems or together with other developments of Mark Chaikin. They are published on the Chaikin Analytics website, repeatedly recognized as the best portal for quantitative analysis of financial markets.
Education
by DeGRAM
2
CONTRACTING AND EXPANDING TRIANGLESTriangle patterns are powerful technical indicators that provide traders with valuable insights into potential market trends and price movements. Among the various types of triangle patterns, horizontal triangles, contracting triangles, and expanding triangles are widely recognized for their reliability and effectiveness. Horizontal triangles, also known as symmetrical triangles, occur when the price consolidates between two converging trendlines. These trendlines are drawn by connecting a series of lower highs and higher lows. Horizontal triangles signify a period of indecision in the market, as buyers and sellers battle for control. There are two types of horizontal triangles: Contracting Triangles and Expanding Triangles. Contracting Triangle: Contracting triangles, also known as descending or ascending triangles, are characterized by converging trendlines with one trendline slanting upward or downward. These patterns indicate a gradual decrease in price volatility and suggest an imminent breakout. Characteristics: 1. Converging Trendlines: One trendline is drawn horizontally, acting as support or resistance, while the other trendline slants in the opposite direction. 2. Decreasing Range: The price range between the trendlines gradually narrows as the pattern progresses. 3. Breakout Anticipation: Traders expect a breakout in the direction opposite to the slant of the converging trendlines. Entry and Exit points 1. Entry Point: Wait for a confirmed breakout above the upper trendline (in descending triangles) or below the lower trendline (in ascending triangles) to enter a trade. 2. Stop-Loss Placement: Set a stop-loss order slightly outside the triangle pattern to mitigate potential losses if the breakout fails. 3. Target Price: Measure the height of the triangle pattern and project it in the direction of the breakout to determine a potential target price. Expanding Triangle: Expanding triangles, also known as broadening triangles, are characterized by diverging trendlines, indicating increased volatility and uncertainty in the market. These patterns often precede significant price reversals. Characteristics: 1. Diverging Trendlines: The upper and lower trendlines move in opposite directions, creating a widening pattern. 2. Increasing Range: The price range between the trendlines expands as the pattern develops, reflecting growing market volatility. 3. Breakout Anticipation: Traders anticipate a breakout in the direction opposite to the widening of the triangle pattern. Entry and Exit points 1. Entry Point: Wait for a confirmed breakout above the upper trendline or below the lower trendline to initiate a trade. 2. Stop-Loss Placement: Set a stop-loss order slightly outside the triangle pattern to limit potential losses if the breakout fails. 3. Target Price: Measure the height of the triangle pattern and project it in the direction of the breakout to determine a potential target price. Horizontal triangle patterns offer traders valuable insights into potential market trends and price movements. By understanding the characteristics and formation of these patterns, traders can effectively identify entry and exit points, set appropriate stop-loss orders, and determine target prices. However, it is essential to combine triangle patterns with other technical analysis tools and indicators for a comprehensive trading strategy. With practice and experience, traders can harness the power of triangle patterns to enhance their trading decisions.
Education
by UnknownUnicorn15614419
4
WHAT EXACTLY IS A TRADING EDGE?In the world of the forex market, having a trading edge can make all the difference between success and failure. A trading edge refers to a set of unique advantages or strategies that give us an increased probability of making profitable trades. It is the secret weapon that separates the winners from the losers in the highly competitive trading arena. In this post, we will explore some key elements that contribute to a trader's edge and how they can be effectively utilized. One of the crucial components of a trading edge is the ability to identify and execute high-probability setups. These setups are specific market conditions or patterns that have historically shown a higher likelihood of resulting in profitable trades. Traders with well-defined setups can quickly assess the market and take advantage of favorable opportunities. However, having a setup alone is not enough; we must develop a comprehensive strategy to guide our decision-making process. A trading strategy encompasses our overall approach to the market, including entry and exit rules, risk management parameters, and trade management techniques. A well-thought-out strategy provides a systematic framework to follow, reducing emotional decision-making and increasing consistency. To maximize our trading edge, we must pay attention to both pre-market and post-market analysis. Pre-market analysis involves evaluating market conditions and news events before the opening bell. This allows us to anticipate potential price movements and adjust our strategy accordingly. Post-market analysis helps review trades, identify strengths and weaknesses, and make adjustments for future trades. Keeping a trading journal is another essential tool for enhancing our trading edge. A journal serves as a record of all trades, including entry and exit points, reasons for entering the trade, and lessons learned. By regularly reviewing the journal, we can identify patterns in the decision-making process and refine our strategy accordingly. The market itself plays a significant role in our trading edge. Understanding the overall market sentiment, trends, and key levels of support and resistance can provide valuable insights for making informed trading decisions. Traders who stay informed about market dynamics are better equipped to adapt their strategies to changing conditions. The time of day and time frame chosen for trading can also contribute to our trading edge as well. Different trading strategies may work better during specific times of the day (sessions) or on particular time frames. Some traders prefer short-term intraday trades, while others focus on longer-term swing trades. Identifying the most suitable time frames and trading hours can significantly increase our chances of success. News events are another factor that can impact a trader's edge. Economic releases, corporate earnings announcements (for stock traders), and geopolitical developments can cause significant market volatility. Traders who stay updated on news events and understand their potential impact on the market can adjust their strategies accordingly or even capitalize on these events. Effective money management and risk management are vital aspects of maintaining a trading edge. Money management involves determining the appropriate position sizing and risk per trade, ensuring that losses are controlled and profits are maximized. Risk management techniques, such as setting stop-loss orders and trailing stops, help protect against excessive losses and preserve capital. Our first job is not to make a profit but to preserve our capital. Establishing a routine and following specific rituals can also contribute to our trading edge. A routine helps to maintain discipline and consistency in trading. Routines, such as reviewing charts, analyzing news events, and mentally preparing before each trading session, can help us get into the right mindset for making sound decisions. What do you do in the morning after waking up? Go straight to the chart? Meditate for 15 minutes? What are you going to do if a family incident occurs or if the power goes out? Creating a watchlist and trade plan is the final piece of the puzzle for enhancing our edge in the markets. A watchlist consists of potential trade opportunities that meet our setup criteria. By having a pre-defined list of stocks or forex pairs to focus on, we can avoid being overwhelmed by numerous options. A trade plan outlines the specific steps to be taken for each trade, including entry and exit points, risk management parameters, and profit targets. In conclusion, a trading edge is a combination of various elements that contribute to our success in the financial markets. By developing a set of high-probability setups, implementing a well-defined strategy, staying informed about market dynamics and news events, and effectively managing money and risks, we can gain a significant advantage in the markets. Maintaining a routine, following rituals, and having a watchlist—all of these become part of the trade plan that gives us an edge in the markets. And if we apply discipline and consistency to it, we have a much higher chance of being successful in trading. Traders, if you liked this educational post, give it a boost and write in the comments.
Education
by Lingrid
13
TradingView Masterclass: How To Use The Top ToolbarIn this guide, you’ll learn about all the different tools that are available to you on the chart. Specifically, we’ll be looking at the toolbars that are located at the top, bottom, left and right of the chart: To summarize the chart above, the breakdown looks like this: Top toolbar: Chart tools Left-side toolbar: Drawing tools Right-side toolbar: Community tools Bottom toolbar: Advanced tools Now, let’s dive into each one starting with the top toolbar where you’ll find many of the most important chart tools for all your research needs. Keep in mind that we’ve ordered each item below as if we are moving from the furthest point at the top left to the furthest point to the top right. Let’s begin! Symbol Search (Keyboard shortcut: type the ticker) Open the symbol search at the top left-hand corner to access over 100,000 global assets across equities, forex, crypto, futures, and more. You can find them by their ticker (e.g., type NVDA for NVIDIA Corporation) or by their description names (e.g., type the name Apple to find AAPL stock). It’s also possible to find your favorite symbols with partial searches, that is, to write part of the ticker or description name and then select the corresponding asset in the search results. If you want to filter by asset type, you can select one of the following: Stocks, Funds, Futures, Forex, Crypto, Indices, Bonds and Economy (economic indicators). Time Intervals (Keyboard shortcut: press ,) Select the time interval for the chart. For instance, say you’re looking at a candlestick chart and you choose a daily chart. That means each trading day will be represented by 1 candle. The most common time intervals are: 1m, 5m, 30m (intraday setups) 1h, 4h (swing trading setups) and 1D, 1W and 1M (long-term trading setups). Traders can create custom intervals as well by clicking on the Time Interval arrow and then selecting the specific parameters needed. Don’t forget to add it to your favorites if you want it to be featured in the Quick Access toolbar. Chart types We have more than 15 chart types available to analyze all price movements, including the new HLC area, Line with markers and Step line. Most traders prefer to use Bars, Candles and Area charts, but everyone has a different approach to markets. Be sure to find the chart type that fits your style. Indicators, Strategies, and Metrics (Keyboard shortcut: press /) Indicators, Strategies, and Metrics are designed to provide additional insight and information that may otherwise be difficult to see. We have over 200 technical and financial indicators while also supporting over 100,000 custom scripts coded by our community. The best way to get started here is to start exploring the Indicators, Strategies, and Metrics menu as soon as possible. Indicator Templates Here, you can save your custom indicator setups so that you can load them at any point in time. This tool is essential if you utilize different forms of analysis. For example, if you chart technicals and fundamentals, you can make two separate templates that can be loaded at any point depending on your need. Alert (Keyboard shortcut: Alt + A) Alerts are used to create custom price alerts. Instead of watching markets 24/7, go ahead and create an alert at a precise level and then wait for that alert to trigger. Let our alerts do the heavy lifting. They’re always watching markets for you. It is also possible to configure them different notifications so that you can be alerted through email, our free app or with a webhook. Bar Replay Bar Replay is a powerful, yet simple tool for backtesting. All experience levels can use Bar Replay for backtesting, practicing or learning about price history. To get started, click the Bar Replay button and then select a historical moment to rewind the chart backward to that point in time. Then, you can press play or pause, and retrade that moment to see how your strategy performs. Undo/Redo Scroll (Keyboard shortcut: Ctrl + Z / Ctrl + Y) Any changes made to the charts such as drawings or indicators can be deleted or recreated. This works just like a Word document you might create on Microsoft or Google. Use the keyboard shortcuts to quickly undo or redo specific actions. Multi-chart Layout If you have an Essential, Plus, Premium, or Ultimate plan, you can analyze multiple charts on your screen at the same time. Simply choose one of the available layouts from the menu to get started. You can also synchronize symbols, intervals, crosshairs, time and data ranges with the selected layout. Manage Layouts Create, rename and load all the layouts that you save. You can also share your layout and enable the autosave option, which is very handy so that all of your work is saved automatically. Managing your layouts is an essential part of your analytical process because it enables multiple different chart layouts to be accessed as quickly and easily as possible. Quick Search Need to find a function or tool on your chart? Open and use Quick Search to do that. The name of the tool is just as it can be used: quickly search for the things you need to edit, add or remove on your chart, and do it in a flash. Chart Settings This is where you can customize all of the fine details about your chart. The Chart Settings menu has everything from the chart color, to the gridlines and labels, the text of the scales, and more. Fullscreen Mode (Shift + F) When this is enabled, you will see only the chart. To exit Full screen mode, click ‘Esc’. Snapshot and Publish Here you can download your charts as images, copy links, share tweets, publish ideas, create live streaming video content, and comment on assets with our latest feature Minds. If you want to share your expert analysis or get feedback from others, you’ll surely want to learn how these social tools work. Go ahead and give it a try - join our community of traders. Thanks for reading and we hope this post helps all traders and investors. Whether you’re an experienced professional or someone just getting started, we plan to create more guides like this to ensure you know how to maximize the features on our platform. Next week, we’ll share part two of this series, and cover the drawing tools menu on the left-side of the chart. - Team TradingView
NASDAQ:NVDAEducation
by TradingView
40
A Simple Method Of Evaluating Trade Setups For Everyone - PART IThis is a simple example of how anyone can attempt to understand price action, trade setups, and determine if the current trade setup is valid for any trading action. Unless you have a trading system that helps you identify highly successful trade setups, most people struggle to find opportunities before they turn into breakout trends (up or down). Ideally, most traders want to get into trades before the big breakout, or breakdown, happens. This video, part I of an extended series, will help you learn to use simple tools to identify qualified trade setups from invalid setups. You can trade whatever you want. But remember, the trend is your friend, and learning to understand price theory, trends, channels, and support/resistance is all you need to make better decisions. Watch this video to see if it helps you. Over the next few weeks, I'll create more videos highlighting simple techniques to help you become a better trader. I'll review dozens of charts and highlight what works and what doesn't. Trading is a matter of managing risks while attempting to generate profits. This will be a great way for me to share my thoughts with all of you while trying to help you learn techniques to help you build solid skills. Hope you enjoy this first video.
NASDAQ:CSCOEducation
by BradMatheny
19
Learn To Trade Breakout/Flags More Efficiently - Part IIn my first tutorial, I tried to show how price channels can be used to identify and validate strong trade setups. Additionally, I attempted to show you how to identify better trade setups from what I consider invalid trade setups. Understanding and maintaining at least a 2:1 Reward-to-risk factor for any trade you consider taking is essential. Secondly, it is essential to understand and use proper allocation levels for trades. The simple way to understand allocation levels is to focus on the RISK amount. If your trade risks $5 per share and you can't afford to risk $500 on this trade, then you should NOT attempt to trade 100 shares of this stock. Set your risk level based on how much you intend to risk for the trade - nothing more. If you can only risk $250, then you would only trade 50 shares. If you can only risk $125, then you would only trade 25 shares. Learning to find and identify proper trade setups on Daily and Weekly charts is critical for success in the long run. I firmly believe price tells us everything we need to know about a chart, and indicators reflect price. As you continue to learn some of the techniques I use in various price chart setups, I hope you can refine your techniques to become better traders. I will likely create a PART II and PART III version of these types of advanced trade setups. Hope you enjoy.
AMEX:SSOEducation
by BradMatheny
CHECKLIST AS PART OF THE TRADING PLANHello, friends! We all know that it is important to have a trading plan and a profitable strategy, and, of course, to follow them. Now, the issue of discipline and following your own trading rules is where most of the problems start. However, there is one simple tool, literally a piece of paper, that can help you significantly improve your discipline in trading and, as a result, your key performance indicators and profits. With that simple tool being the checklist. In this article we will talk about why it is important, why it is important for a trader and how to properly compile and apply it. Why do traders plan their trades? Great traders and world-famous investors plan how, when and why they are investing. They realize that to achieve their ultimate goal, they need a map outlining the route of their trading plan that will help guide them to make the right decisions at the right time. A trading plan will provide you with structure and help you develop discipline in your trading actions. It will help you track your trading process, assign responsibility and measure your success. It will provide you with a framework to clearly visualize your current situation at any given time, and will help you identify your goals, outline your strategy, and determine your risks and returns. Whether you are an experienced trader or just a beginner, a well thought out trading plan is sort of the vehicle you need to get to your destination. Not only is it important to have your trading plan, but it is equally important to stick to it. Some of us easily stick to it, while others are in a constant struggle with their concept and the reality of carefully following the rules, they have defined in their strict trading plan. Do you really have a trading plan that you would follow by properly executing your market entries and exits? I'm a big advocate that we should all have a clear system to support our decision making that will help us remain objective and unbiased about when to buy and sell. However, should any good system that you should follow be so unambiguous? Should you trust it or doubt it? Your discipline and commitment to your trading plan can be measured, reviewed and improved. You can incorporate key performance indicators into your trading strategy and determine how closely you follow your rules and trading plan. The number of mistakes you make based on aspects such as noise, emotion or oversights can be counted and questioned - as a result, you can improve your trading plan. Identify your mistakes by comparing when your system gives you a buy or sell signal, when and why you actually executed it. If most of your trades are not executed according to your system or rules, you may be managing your positions intuitively rather than following the rules. This approach to trading lacks consistency and will negatively impact your returns in the long run. At the same time, there are cases where trading based on emotion will minimize losses and lock in profits, but only a narrow range of professional traders have intuitively mastered this ability on a consistent basis. In the end, for the remaining traders, emotion-based trading does not work because it cannot be replicated, and it only leads to insolvency and frustration. What may work today will not work tomorrow and always. In addition, this kind of trading increases stress and creates bad habits for repeated indecision. If your trading plan is solid most of the time, then it is worth sticking to it. Thus, it is important to make an effort to check the reliability and stability of your trading plan before you start trading or increase your risks. Traders often abandon their plans when they do not have enough personal experience to follow the plans and thus naturally lack confidence. What would make it easier to follow your plan? So how do you follow your plan? One of the things that gets in our way is, oddly enough, our brain. We think and guess too much. From this we can assume that if we reduce the activity of our wandering mind and leave only logic, efficiency will increase. A good way to accomplish this is to make and print out a checklist for entering and exiting trades. What is a checklist? A checklist contains a number of necessary items for any work. In our case for trading. The checklist is used to check if all the conditions are in line with your market entry strategy. You tick each of the conditions, if at least one of them is not fulfilled, do not enter the market. Everything is very simple. Suppose your strategy is based on two indicators combined with support/resistance levels, you trade intraday, one of these indicators is a trend indicator and the other is an oscillator. Then your checklist could look like this: 1) Now American / London session? - Yes/No 2) Is there an entry signal on the X indicator? - Yes/No 3) Is the Y indicator in agreement with the signal of the X indicator? - Yes/No 4) Does the signal have a level support? - Yes / No 4) Isn't there another level in the way of the proposed trade, which will prevent it from reaching the target? - Yes / No 5) Is there no important news coming out in the next half an hour? - Yes / No 6) Am I feeling well right now (i.e. I am not sick, depressed, tired)? - Yes / No You run through this list and mark the items with a pencil. If the answer to all questions is YES then enter the trade. If there is at least one NO do not enter. Everything is so simple and you do not need to think. By thinking I mean the wandering mind mode, which leads to unnecessary trades, early entries/exits, etc. The checklist removes these mental "what ifs", "I guess", "it seems", etc. All items on the checklist match - enter. If at least one item doesn't match - don't enter. How to Make a Checklist for Your Strategy How to make a checklist? Very simple. Take the rules of your strategy and reduce them to a list of items so that against each item you can put a check mark, if the conditions on the chart correspond to it, or answer one-word Yes / No. I also advise you to include a point about your current moral state, because it is not worth trading when you are tired, sick, depressed, etc. Conclusion A checklist is essentially a checklist of items from your trading strategy and trading plan. Its purpose is to reduce the influence of a "wandering mind" on your trading. Also, the checklist helps you not to forget about anything. Every time, before opening a trade, run through each point on your list: if even one item does not correspond to the current situation - do not enter the market. And may the profit be with you!
Education
by DeGRAM
3
A Simple Method Of Evaluating Trade Setups For Everyone - IIIMore examples of trade setups and how I use my custom algos to help identify stronger trade opportunities from other symbols. In this example, near the end of this video, I review the QLD chart (Daily) which provides a very clear example of major trend vs. intermediate trend. It is very important trader learn to see these opportunities from all aspects. Please pay very close attention to the details I'm sharing related to trading concepts and theory. I'm trying to teach all of you to see charts in a different way. See PRICE as the driver of trends, and counter-trends, as Fibonacci Price Theory describes. Basic Rules of Fibonacci Price Theory: 1. Price is ALWAYS seeking new highs or new lows - ALWAYS. 2. Failure to establish a new high means price will attempt to retest/break recent/new lows. 3. Ultimate HIGH/LOW levels are critical to understanding major trends vs. intermediate trends. 4. If you have trouble identifying a clear trend on a Daily chart, try Weekly or 240 min as an alternative. 5. If you still can't identify trend clearly, wait it out. Price will ALWAYS attempt to make new highs/lows. Sometimes, you have to be patient and wait for consolidation trends to work themselves out. My objective is to show you how I look at charts and identify trade opportunities. Simply put, I just trying to help you see and understand simple TA theories and to help you learn to identify great trade opportunities. Hope you enjoy.
AMEX:QLDEducation
by BradMatheny
A Simple Method Of Evaluating Trade Setups For Everyone - IIThis second video reinforces the concepts supporting my simple method of validating or invalidating trade setups using price channels, Fibonacci price theory, Stochastics, RSI, and simple price metrics. Anyone can do this - it just takes a little patience and learning. The trick to the ENTRY is to WAIT to see how price reacts near support/resistance. REJECTION is very important in terms of seeing price REJECT near the price channels and near support/resistance. Learn to use these techniques to help you learn to become a better trader. Hope you enjoy.
NYSE:FEducation
by BradMatheny
UNDERSTANDING DIVERGENCEWhat is divergence? Divergence in trading is one of the key tools used by us traders to analyze the market and make decisions about entering or exiting trades. It is based on observing differences between two different indicators such as price and oscillator. The advantage of using divergence in trading is that it allows us to identify possible market reversals in advance and take measures to protect positions. It can also be used to confirm other signals such as support and resistance levels or trend lines. However, it should be noted that divergence is not always a sufficient signal to enter or exit a trade. It should be confirmed by other tools and market analysis. It is also important to remember that divergence can be false and signal of a temporary deviation from the main market movement. We’ll explain it later below. How can we identify a divergence? We will use a bearish divergence as shown above as an example. A bearish divergence occurs when the price makes a new high, but the oscillator does not confirm this movement and makes a higher high. This indicates that the strength of buyers is weakening and a bearish trend is possible. We can use various oscillators such as RSI (Relative Strength Index), MACD (Moving Average Convergence/Divergence) or stochastic oscillator to identify bearish divergence. We have to observe the price movement and the oscillator values. If the price forms a new high but the oscillator forms a lower high, this could be a bearish divergence signal. However, for the divergence to work it must be at significant levels as mentioned earlier. We use market analysis techniques such as support and resistance, trend lines or trading volume if you trade stocks. This will help us to make sure the signal is reliable and make an informed trading decision. Types of divergences There are usually 2 types of divergence that can be used by traders to analyze the market: Trend Reversal Divergence and Trend Continuation Divergence . 1. Trend Reversal Divergence. This is the most common type of divergence that occurs when the price of an asset forms a new high or low and the oscillator does not confirm this movement and forms a lower high or higher low. That is, the price moves in one direction, but for example RSI in another direction as if hinting that this price movement does not have the strength that it had before. 2. Trend Continuation Divergence. This type of divergence occurs during a correction in a major trend. It can indicate that the primary trend may continue after the pullback is complete. If we have a market in moving against the main trend, this pullback should also have the strength/momentum that it should end. For example, if the price makes LL then HL, and RSI makes LL then another LL, it is a sign that the bearish movement (pullback) has no strength to move lower. There are several forms of divergence that can indicate different trend strength. Let's look at bearish divergence as an example: 1. Strong Divergence. In this case, the price forms a new high and the oscillator forms a much lower high. This is considered the most reliable bearish divergence signal and can indicate strong buyer weakness and the possible onset of a bearish trend. 2. Medium Divergence. Here the price barely makes a new high or turns into a double top and the oscillator on another hand makes a lower high. There is no super strong divergence in this case, it may indicate a less strong and weakening of the buyers and a possible trend shift. 3. Weak Divergence. In this case, the asset price forms a new high and the oscillator also forms a lower high, but the difference between the two is minimal. This can be a less reliable signal of a bearish divergence and in many cases, it can be a signal of trend strength. That is, we can expect a possible small pullback. Below you can see that UKOIL has made new highs but the RSI barely made lower high which confirms the strength of the trend. Example of hidden divergence In conclusion, divergence in trading is a powerful tool for analyzing the market. It allows traders to detect possible market reversals and make appropriate trading decisions. it is important to note that divergence can be a warning signal of a possible trend change, but it does not guarantee it. We should use additional tools and analysis methods to confirm the signal and make an informed trading decision.
Education
by Lingrid
15
PRICE ACTION: DOJI PATTERNWhat to do with Doji? Beginning forex traders, having come across the candlestick pattern Doji, get lost and start making rash actions. They close and open positions, change stop-loss, etc. Naturally, such rush leads to losses. So how to be with doji, what to do when such a candlestick appears on the chart? What is Doji? A doji is a candlestick that has equal or almost equal opening and closing prices. There should also be shadows on both sides of the candlestick that are about the same size. A doji indicates an agreement between buyers and sellers, or the absence of players, or a testing of a level. This formation can either be a reversal formation or it can lead to a continuation of the trend. We can say that the Doji is the yellow color of a traffic light. How to trade the Doji? The Doji candlestick pattern can be taken as a reversal signal only in one case. If the following conditions are met (simultaneously): • Doji was preceded by a strong, and clearly visible extended trend. • Before the doji there was a full-body candlestick of medium or large size (relative to the current chart) in the direction of the trend. • There is a confirmation, i.e. after the doji there was a candle opposite to the dominant trend. • Only if these three conditions are present, we can consider an entry against the trend after the doji appears. In all other cases, the doji is simply ignored. Stop Loss is placed behind the doji's extreme point, Take Profit at the nearest support/resistance level. Since the doji pattern is not strong, we do not take big targets. Important Points • It is highly desirable to have a support/resistance level as well as for any Price Action setup. • The doji maximum is a level, the break of which will mean that the trend is still in force. • Other timeframes should not be overlooked • On timeframes less than H1 the doji means NOTHING. • Always wait for confirmation • If the market is moving sideways, just ignore the doji. • Only the FIRST doji is important • Short shadows are desirable for a reversal UKOIL EURUSD Conclusion The Doji pattern is mostly just a confusing trading pattern. In 95% of cases, it should simply be ignored. You can only trade the Doji if you fulfill 3 conditions at the same time: a clear trend, a full-body, non-small candlestick in the direction of the trend before the Doji, and a confirming candlestick against the trend after the Doji.
Education
by DeGRAM
4
MYFXBOOK TRADER VERIFICATIONIn the world of forex trading, Myfxbook has become a popular platform for traders to share and analyze their trading results. However, as with any online platform, there is a risk of encountering fake or fraudulent accounts that mislead users. It is crucial to be able to spot these fake Myfxbook accounts to ensure credibility and make informed decisions when following or investing in traders' strategies. In this article, we will discuss how to identify potential fake accounts and ensure the validity and reliability of Myfxbook traders. 1. Unrealistic returns One of the first signs of a fake Myfxbook account is consistently high and unrealistic returns. While it is possible to achieve high profits in forex trading, one must be cautious when faced with accounts that consistently generate unrealistically high returns without any significant losses or drawdowns. Without a capital growth chart of a trader on Myfxbook, it is impossible to draw clear conclusions about his trading results. A capital growth chart allows you to see how a trader manages his trades and how his account rises or falls over time. Also look at the difference between gains and absolute gains, as these two parameters, can be confusing to most traders. It can be used by scammers to trick traders. Scammers can increase a small account by 100% and then deposit an additional $20,000 to make it appear as if all profits were made in a larger trading account. The main difference between the two is that: gains show growth from initial deposits, while absolute gains show growth from current and subsequent deposits. 2. Absence of fluctuations and drawdowns Genuine trading accounts usually show ups and downs, periods of profit and drawdowns. If a Myfxbook account shows a steady uptrend without any significant fluctuations or drawdowns, this may be an indication of a fake account. Real traders experience moments of losses and corrections that are reflected in their trading history. No trader, no matter how experienced, can completely avoid losing trades. A red flag is an account at Myfxbook that does not have a single losing trade or negative pips. Realistically, losses are part of trading and a true account should reflect both winning and losing trades. If the chart shows constant growth without natural drawdowns, it may indicate that the trader may be using for example a martingale system (or other martingale variants), which will eventually lead to a capital loss. It is important to pay attention to the stability of capital growth, the absence of sharp jumps or declines, as well as the general trend of growth. 3. Abnormal trading duration Pay attention to the duration of trades displayed on your Myfxbook account. If trades consistently last only a few seconds or minutes, this may indicate a scalping technique that can be difficult to execute profitably. Although some traders specialize in scalping, it is important to check the consistency and effectiveness of such strategies. Also note whether the Myfxbook account has been recently updated and whether there are signs of active trading. If the account is not active for a long time, it may indicate that most of the open trades were losing or the strategy is no longer working. But the trader can all show a graph of the yield curve before and deceive newbies. 4. Suspicious trading history Carefully examine the trading history presented on the Myfxbook account. Look for any irregular patterns or actions that seem too good to be true. Several winning trades in a row without a loss or a high volume of trades made within a short period can be potential signs of a fake account. A trader with a long history and consistent profits may be more reliable than someone with limited data. But since trading is about probability rather than certainty, past performance is no guarantee of future results. Note whether a backtest or a real trading strategy has been downloaded. Many traders may upload a backtest to show the amazing results of a trading strategy in order to lure new traders. 5. Verification through Myfxbook If strategies are to be made public or used for business and advisory purposes, they must be verified. Without verification, the user may not know if the strategy is reliable or if it is a scam. One of the most reliable ways to verify the reliability of a Myfxbook account is through the Verified Track Record feature. It requires account verification with partner brokers and adds an extra layer of verification of the account and trading results. If most of the information is hidden it is 100% scam, as a common method used by scammers is the martingale trading strategy. It involves taking a risk with a huge transaction size that covers all costs and losses for a certain period of time, that is, if it succeeds. And scammers have to hide it. As forex trading continues to gain popularity, it's important to be careful and vigilant when encountering traders on platforms like Myfxbook. Identifying fake or fraudulent accounts is necessary to protect yourself from potential fraudulent activities and misrepresentation. By looking for signs of unrealistic returns, analyzing fluctuations and drawdowns, verifying them with Myfxbook's verification feature and being cautious about suspicious trading histories, you can make sure that the Myfxbook accounts you follow or invest in are reliable and trustworthy. Remember, doing thorough research and due diligence is key to making informed decisions in the forex market.
Education
by UnknownUnicorn15614419
8
HIGHER HIGH AND LOWER LOW STRATEGYHello, fellow forex traders! Today we are going to learn about a strategy called HIGHER HIGH AND LOWER LOW. It is quite possible that the strategy is known to you under a different name, as it belongs to the classic ones. The strategy is based on Price Action, i.e. on the price movement and no indicators are required. Nevertheless, indicators can be used for better clarity and to simplify the search for setups. What is the essence of this strategy? In any strategy there must be some basis on which it should work. When creating your own strategy, you also need such a foundation, for example, some inefficiency of the market, or its regularity, and on this basis, you can build points for entry-exit and correction of the position. First of all, let's remember the classical definition of a trend. An uptrend is a series of successively rising highs and rising lows. That is, each high (H) is higher than the previous one and each low (L) is higher than the previous one. The opposite is true with a downtrend. In a downtrend, the highs consecutively decline and the lows also decline. Perhaps you have already guessed what kind of structure we will be looking for on the chart. That is, what is the very first sign that will allow us to understand when we should pay attention to the market and wait for a possible entry point. Let's assume that we have an uptrend. We have point H, followed by a correction at point L. This is followed by a higher high, labeled in this strategy as HH (Higher High). Then, as soon as we see a break in the trend structure, i.e. a lower low LL (Lower Low), we get ready to look for a sell point. Similarly, with the downtrend. First, we determine the low L, then the high on the correction H, the lower low LL and finally the higher high HH. This means that the structure of the downtrend is broken. We pay attention to this situation and wait for a possible entry point to buy. Let's start by considering a sell entry. We enter on the pullback to point H. This structure works because there are big players in the market, and big players need liquidity. That is, in order to make a large sale they need a large number of buy orders to " dump" the currency. The zone between H and HH is a zone of high liquidity. Accordingly, there are many people willing to buy here, as they hope for the continuation of the uptrend. You can enter with a pending order; in which case the sequence is as follows. We wait for the formation of the LL point (trend break). Then set Sell Limit at level H. As in the case of selling, in the reverse pattern we have a zone of increased liquidity between points L and LL. There are many people who want to sell here, those who hope for the continuation of the downtrend. Someone bought too early, someone panics and closes positions, also many people may have stop-losses in this zone. Accordingly, it is a good opportunity for a big player to buy, and we enter the market together with it. We are waiting for the formation of the HH point. Then set Buy Limit at the level of L. Risk management We place the stop loss behind the extreme point of the high liquidity zone. HH - in case of sells, LL - in case of buys. Stop-loss is placed at the points where we can say for sure that we are wrong. We have two targets. For sells, the first target is at the L level, the second at LL. For buying, on the contrary, we take the first profit from H, the second from HH. If the distance between the target 1 and 2 is too small, it makes sense to take only the first target. In other cases, you can take the average value between the two points to set take profit. Some examples Let's look at an example. Here we see the formation of a low, correction H and a lower low - LL. Then the price draws a zigzag without going beyond the boundaries of the points we have marked. For clarity, don't forget to draw levels. You can ignore the zigzags inside the levels. When there is a higher maximum - HH, that is, the structure of the downtrend is broken, we start looking for buys. In this case, we need a pullback to the L point. After the formation of the HH point, we set Buy Limit at the L level and wait. In this case, the price reached our order and then went up. The entry point can be quite far away from the set-up that was formed. In this case, we had an upward trend. First we mark the first high, then the low and the higher high - HH. Then, following the ZigZag clues, we find the lower low LL, which is quite far away. The entry point for selling will be located at the H level. At this level we are looking to sell. At first glance, the distance is large. Accordingly, the price subsequently bounces from the level marked by us. We place the stop-loss slightly above the extreme point - HH. In this case, the take/stop ratio is very good. As you may have already guessed, this strategy combines the theory of support/resistance levels. Candlesticks with large shadows in the rebound zone show how the big players gained positions by destroying the buys. Accordingly, the price then went down, reaching our take profit. Summary Try not to look for setups in price chaos that are not there. Trade only the right setups with a good ratio of profit to risk. This method I find great for reversal at supply and demand zones. Also, this strategy can be used in combination with other strategies. In general, it is a good foundation for your development as a trader.
Education
by Lingrid
11
PRICE ACTION: PIN BARSThe pinbar setup is a popular candlestick pattern that is widely used by traders in the forex market. It consists of a single candlestick with a small body and a long shadow, which resembles a pin. This pattern often indicates a potential reversal or continuation of a trend. In this post, we will discuss the best methods to trade the pinbar setup at key levels, trendlines, moving averages, and Fibonacci levels, accompanied by examples for better understanding. ✴️ 1. Key Levels: Key levels are certain prices at which strong support or resistance is expected. They can be used to determine entry and exit points for trades. For example, if the price reaches a support level and forms a pinbar, it can be a buy entry signal. On the other hand, if the price reaches a resistance level and forms a pinbar, it could be a signal to enter a sell trade. Psychological levels and open interest levels can also be used to identify key levels. ✴️ 2. Trend Lines: Trend lines are used to determine the direction of a trend. They can be drawn by connecting two or more high or low points on a chart. An uptrend is characterized by consecutive high and low points, a downtrend is characterized by consecutive low and high points, and a sideways trend is characterized by horizontal lines. Pin bars can be used to confirm or deviate from trend lines. For example, if price reaches a trend line and forms a pinbar, this can be a signal to enter a trade in the direction of the trend. ✴️ 3. Moving averages: Moving averages are used to determine trend direction and the smoothness of price movements. A simple moving average (SMA) is calculated by summing the prices for a certain period and dividing by the number of periods. An exponential moving average (EMA) pays more attention to more recent data. Pinbars can be used in conjunction with moving averages to confirm or deviate from a trend. For example, if price crosses a moving average from top to bottom and forms a pinbar, this can be a signal to enter a sell. ✴️ 4. Fibonacci Levels: Fibonacci levels are horizontal lines that are used to determine support and resistance levels. They are calculated based on Fibonacci numerical sequences and can be used to identify possible price reversal points. For example, if the price reaches a Fibonacci level and forms a pinbar, this can be a signal to enter a trade. Different Fibonacci levels such as 38.2%, 50% and 61.8% can be used to identify possible support and resistance levels. ✴️ Conclusion Pinbar forex trading using key levels, trendlines, moving averages and Fibonacci levels can be an effective method for identifying entry and exit points for trades. It is important to remember that no single indicator or strategy is a guarantee of success, so a strict approach to risk management and the use of additional tools and analysis to confirm pinbar signals is essential. I hope this post will help you develop your own strategy for trading pinbars in the Forex market.
Education
by DeGRAM
4
ELLIOTT WAVE CORRECTIVE PATTERNS Elliott Wave corrective movements are deviations from the main trend and serve to correct errors or imperfections that occurred during the formation of an impulse movement. These corrective movements are defined by complex wave structures that can be repeated in different variations and combinations. The wave structure consists of two types of movements - impulsive and corrective. An impulsive movement is directed in the main direction of the trend, while a corrective movement is the opposite of this direction. Correction waves are the inverse of impulse waves, and they are executed as three-type structures. Elliott described 21 correction patterns of ABC type. There are three main types of Elliott Wave corrective movements. All of them are quite simple and consist of only three patterns. - Zig Zag - Sideways or flat - Triangles 1. Zigzag Corrections: This type of corrective movement consists of three waves, with the second wave diverging in the opposite direction from the trend in the first wave and the third wave returning to the main trend. Zigzag corrections can be either upward or downward. 2. Non-wave-like (Flat) Corrections: In this case, the corrective movement is a sideways movement in which the second wave deviates from the main trend and the third wave returns to it. Non-Waveform corrections can be flat or complex, depending on the structure and duration. 3. Triangular (Triangle) Corrections: In this case, the corrective movement is a triangle formation, which consists of five small waves connected to each other by triangle diagonals. Each wave of a triangle correction can be impulsive or corrective in nature. Elliott Wave corrective movements can be combined and repeated in different ways to form complex and interesting wave structures. Studying and understanding these corrective movements allows traders and investors to predict future price movements and make appropriate market decisions. Corrective movements of Elliot waves are important for analyzing past, current and upcoming market cycles. They allow to determine possible entry and exit points of trades. However, it is worth remembering that financial markets are complex and subject to various factors, so the analysis should be done with caution and taking into account other factors and analysis tools.
Education
by Lingrid
4