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Stock Heatmap: The Ultimate Guide for Beginners (2023)How to use the Stock Heatmap on TradingView to find new investment opportunities across global equity markets including US stocks, European stocks, and more. Step 1 - Open the Stock Heatmap Click on the "Products" section, located at the top center when you open the platform. Then click on "Screeners" and “Stock” under the Heatmap section. Members who use the TradingView app on PC or Mac can also click on the "+" symbol at the top of the screen and then on "Heatmap - stocks". Step 2 - Create a Heatmap with specific stocks Once the Heatmap is open, you have the capabilities to create a Heatmap based on a number of different global equity markets including S&P 500, Nasdaq 100, European Union stocks, and more. To load these indices, you must click on the name of the current selected index, located at the top left corner of the screen. In this example, we have the S&P 500 heatmap loaded, but you can load any index of your choice by opening the search menu and looking for the index of your choice. Step 3 - Customize the Stock Heatmap Traders can configure their Heatmap to create highly custom visualizations that’ll help discover new stocks, insights, and data. In this section, we’ll show you how to do that. Keep on reading! The SIZE BY: Button changes the way companies are sized on the chart. If we click on "Market Cap" in the top left corner of the Heatmap, we can see the different ways to configure the heatmap and how the stocks are sized. By default, "Market Cap" is selected with the companies, which means a company with a larger market capitalization will appear bigger than companies with smaller market capitalizations. Let’s look into the other options available! Number of employees: It measures the size of the squares based on the number of employees in the company. The larger the square size, the more employees it has relative to the rest of the companies. For example, in the S&P 500, Walmart has the largest size with 2.3 million employees. If we compare it to McDonalds, which has 200,000 employees, we can see that Walmart's square size is 11 times larger than McDonalds. This data is usually updated on an annual basis. Dividend Yield, %: If you choose this option, you will have the size of the squares arranged according to the annual percentage dividend offered by the companies. The higher the dividend, the larger the size of the square. It is important to note that companies with no dividend will not appear in the heatmap when you have chosen to arrange the size by Dividend Yield, %. Price to earnings ratio (P/E): It is a calculation that divides the share price with the net profit divided by the number of shares of the company. Normally the P/E of a company is compared with others in its own sector, i.e. its competitors, and is used to find undervalued investment opportunities or, on the contrary, to see companies that are overvalued in the market. Oftentimes a high P/E ratios indicate that the market reflects good future expectations for these companies and, conversely, low P/E ratios indicate low growth expectations. Going back to heatmaps, it will give a larger square size to those companies with higher P/E ratio over the last 12 months. Companies that are in losses will not appear in the heatmap as they have an undetermined P/E. Price to sale ratio: The P/S compares the price of a company's shares with its revenue. It is an indicator of the value that the financial markets have placed on a company's earnings. It is calculated by dividing the share price by sales per share. A low ratio usually indicates that the company is undervalued, while a high ratio indicates that it is overvalued. This indicator is compared, like the P/E ratio, to companies in the same sector and is also measured over the most recent fiscal year. A high P/S indicates higher earnings expectations for the company and therefore could also be considered overvalued, and vice versa, companies with a lower P/S than their competitors could be considered undervalued. Price to book ratio: The P/B value measures the stock price divided by the book value of its assets, although it does not count elements such as intellectual property, brand value or patents. A value of 1 indicates that the share price is in line with the value of the company. High values indicate an overvaluation of the company and below, oversold. Again, as in the P/E and P/S Ratio, it is recommended to compare them with companies of the same sector. Regarding the heatmaps, organizing the size of the squares by P/B gives greater size to companies with high values and it is measured by the most recent fiscal year. Volume (1h, 4h, D, S, M): This measures the number of shares traded according to the chosen time interval. Within the heatmaps comes by default the daily volume, but you can choose another one depending on whether your strategy is intraday, swing trading or long term. It is important to note that companies with a large number of shares outstanding will get a higher trading volume on a regular basis. Volume*Price (1h, 4h, D, S, M): Volume by price adjusts the volume to the share price, i.e. multiplying its volume by the current share price. It is a more reliable indicator than volume as some small-cap stocks or penny stocks with a large number of shares would not appear in the list among those with the highest traded volume. Also available in 1-hour, 4-hour, daily, weekly and monthly time intervals. COLOR BY: In this area we will be able to configure how individual stocks are colored on the Heatmap. If you’re wondering why some stocks are more red or green than others, don’t fret, as we’ll show you how it works. For example, click on the top left of the Heatmap where it says "Performance D, %" and you’ll see the following options: Performance 1h/4h/D/S/M/3M/6M/YTD/Year (Y), %: This option is the most commonly used, where we choose the intensity of the colors based on the performance change per hour, 4 hours, daily, weekly, monthly, in 3 or 6 months, in the current year, and in the last 12 months (Y). Tip: this feature works in unison with the heat multiplier located at the top right of the Heatmap. By default, x1 comes with 3 intensity levels for both stocks in positive and negative, as well as one in gray for stocks that do not show a significant change in price. This takes as a reference values below -3%/-2%/-1% for stocks in negative or above +1%/+2%/+3% for stocks in positive and each of the levels can be turned on or off independently. As for how to configure this parameter, you can use the following settings according to the chosen intervals. For 1h/4h intervals, multipliers of: x0.1/x0.2/x0.25/x0.5 are recommended. For daily heat maps, the default multiplier would be x1. And finally, for weekly, monthly, 3 or 6 months and yearly intervals, it is recommended to increase the multiplier to x2/x3/x5/x10. Pre-market/post-market change, %: When this option is selected, you can monitor the changes before the market opens and the after hours trading (this feature is not available in all countries). For example, if we select the Nasdaq 100 pre-market session change, we will see the day's movements between 4 a.m. and 9:30 a.m. (EST time zone). Or, if we prefer to analyze the Nasdaq 100 post-market, we will have to choose that option; this would cover the 4 p.m. to 8 p.m. time zone. For heatmaps in after-hours trading we recommend using very low heat multipliers (x0.1; x0.2; x0.25; x0.5). Relative volume: This indicator measures the current trading volume compared to the trading volume in the past during a given period and it measures the level of activity of a stock. When a stock is traded more than usual, its relative volume increases. Consequently, liquidity increases, spreads are usually reduced, there are usually levels where buyers and sellers are fighting intensely and where an important trend can occur. The possible strategies are diverse. There are traders who prefer to enter the stock at very high relative volume peaks, and others who prefer to enter at low peaks, where movements tend to be less parabolic in the short term. In the stock heatmap, relative volume is identified in blue colors. Heat multipliers of x1, x2 or x3 are usually the most common for analyzing the relative volume of stocks. Let's do an example: Imagine that we want to see the most unusual movements in today's Nasdaq 100 after the market close. We select the color by Relative Volume and apply a default heat multiplier of x1. Then, in order to be able to see only those stocks that stand out the most, we uncheck the numbers 0; 0.5; 1 at the top right of the screen. After this, we will have reduced the number of stocks to a smaller group, where we will be able to see chart by chart what has happened in them and if there is an interesting opportunity for trading. Volatility D, %: It measures the amount of uncertainty, risk and fluctuation of changes during the day, i.e., the frequency and intensity with which the price of an asset changes. A stock is usually referred to as volatile when it represents a very high volatility compared to the rest of the chosen index. Volatility is usually synonymous with risk, since the price fluctuation is greater. For example, we want to invest in a stock with dividends on the US market, but we are somewhat averse to risk. To do so, we decide to look for a stock with a high dividend yield with low volatility. We select the index source "S&P 500 Index", then size by "Dividend yield, %" and color by "Volatility D, %". Now, we deactivate the heat intensity levels higher than 2%, but higher than 0% (those that do not suffer movement, usually have low liquidity). From the list obtained, we would analyze the charts of the 10 companies that offer us the best dividend. Gap, %: This option measures the percentage gap between the previous day's closing candle and the current day's opening candle, i.e. the difference in percentage from when the market closes to when it opens again. GROUP BY: Here you can enable or disable the group mode. By default all stocks are grouped by sector, but if you select ‘No group’, you will see the whole list of companies in the selected index as if it were a single sector. It is ideal for viewing opportunities at a general level, you can sort directly by dividend percentage and see the companies in the index with the best dividend from highest to lowest or, for example, the best yielding stocks by market capitalization size. Another important note is that when you have chosen to group stocks by sector, you can zoom in on a specific sector by clicking on the sector name. Doing so, you will be able to analyze the assets of that sector in more depth. TOGGLE MONO SIZE: Here you can split all the stocks in the selected index completely equally in size, while still respecting the order of the chosen configuration. That is, if we have toggled the mono size by market cap, all the stocks will have the same square size with the first ones being the ones with the largest capitalization, from largest to smallest. FILTERS: One of the most interesting settings, where it allows you to filter certain data to eliminate "noise" and have a selection of interesting stocks according to the chosen criteria. It is important to note that in filters we can see in each of the parameters where most of the stocks are located by vertical lines of blue color. It is especially useful in indexes where all stocks of a certain country are included, for example, the index of all US companies. Making a good filter will help you find companies in a heatmap with very specific criteria. The parameters are the same as those found in the SIZE BY section, i.e. market cap, number of employees, dividend yield, price to earnings ratio, price to sales ratio, price to book ratio, and volume (1h/4h/D/W/M). Primary listing: When you work on an index with stocks that may be, for example, from another country or not traded within the main market, they will be categorized outside the primary listing. STYLE SETTINGS: Here you can change the content of the inner part of the heatmap squares: Title: The company symbol or ticker (e.g., AAPL - Apple Inc.). Logo: The company logo. First value: Shows you the value you have chosen in the COLOR BY section (performance 1h/4h/D/S/3M/6M/YTD/Y, pre-market and post-market change, relative volume, volatility D, and gap). Second value: You can choose between the current price of the asset or its market cap. These values are also available when you hover your mouse over one of the stocks and hold it over its square for a few seconds. SHARE: On TradingView, we can easily share our trading analysis and our heatmaps! You can download your Heatmap as images or you can copy the link to share it across social networks like Facebook,Twitter, and more. If you made it this far, thanks for reading! We look forward to seeing how you master the Heatmap and all it has to offer. We also want to hear your feedback! Leave us your comments below! 👇 - TradingView Team
NASDAQ:AAPLEducation
by TradingView
38
How to Trade Wolfe Wave PatternI will try to explain to you about the Wolf pattern. I myself prefer to call this formation a Wolf pattern rather than a wave, because it will not always remind of a wave and has nothing to do with the Elliott Wave Analysis. Before I get to the practical part, I want to note that this pattern is very easy to learn and often allows you to get a fantastic ratio (R:R). The flip side of the pattern is the art of determining its completion. Bill Wolf is the discoverer of this formation. He likes to call his trading a wave trading and for some reason explains the work of the pattern as a demonstration of Newton's law. His real achievement is the numerous study of the well-known wedge pattern, which he was so fond of, and the finding of patterns in it. All we have from the author is a little book. And the website wolfewave.com, the design of which has been preserved since '98. Bill's friendship with trader Linda Raschke is well known. In her book, Linda describes the Wolf wave as a quite profitable formation. It should be noted that especially skillful traders can detect Wolf waves practically in all price movements. Indeed, this characteristic formation of "spreading" can be found constantly, even if it does not have all the expressed qualities that are characteristic of an ideal wave. In traditional trading, the Wolf will often look like the famous and beloved wedge, but our task will be to enter and exit the trade more precisely. Formation 1. We determine point 2 as the top of the uptrend (a significant top). 2. Point 3 is the next minimum after point 2. 3. Point 4 is the next high after point 3 and is located below point 2. 4. Point 1 is insignificant, ideally it is the minimum before point 2, but sometimes point 1 is very weakly expressed. In this case, Bill Wolf himself recommends to draw a horizontal line to the left of point 3 and take the first bar opposite it as point 1. 5. The point 5 is on the line 1-3, or it often breaks through it, going to the sweet zone. The sweet zone is constructed by parallel transferring the line 2-4 to point 3. 6. Point 6 (target) is on the line 1-4 (EPA - Estimate Price at Arrival) and is determined by the vertical from the point of intersection 2-4 and 1-3 (ETA - Estimate Time on Arrival). How to Trade the Wolf with Trend For the purposes of this article, we will be looking at Wolf waves primarily on trend. I strongly recommend trading them this way. In this way, the pattern will be a correction, the end of which we are trading. In addition, a couple of alternative examples will be given (Wolf as a trend reversal, Wolf in a sideways trend). Let's take a good trend, in this case the uptrend on CADJPY, and highlight the correction. Then let's move to H1 and see if there are any Wolf waves among these corrections: Example 1 In the first case we have a great Wolf wave. I pay attention to the clear arrival time of the target (ETA). R:R = 3.0. Example 2. In the second case, we don't have the prettiest formation. Many would argue that it is a Wolf wave, but I assure you that it is. The ETA also clearly worked and we got R:R = 3.5. Note Wolf waves are quite frequent formation. Their best working out is trend trading, there are plenty of them. Even more of them are in the sideways. It can be said that a sidewall is a constant succession of Woolf waves in different directions. Perhaps, someone may apply this style to a flat, but a sideways trend can be traded more traditionally. An ideal wave is not always found. There are traders who prefer to wait for them without considering other Woolf waves as such. Practice Perhaps, we have come to the most interesting part of the article. Here I will just try to outline the best possible way to enter a trade and the best way to get out of it. The advice given in this section is a subjective result of trading and is provided for general guidance. I am convinced that a practicing trader will find the optimal TS settings by himself. Examples Any TS has its disadvantages and if the speculator gets along with them, he makes the TS "his", otherwise he has to look for another instrument, picking it up like a puzzle that suits him psychologically. The problem of the Wolf wave, on the other hand, is the search for the point 5. Recent example We use Fibonacci extension tool to identify optimal entry point. Fibonacci extension level such as 1.13, 1.272, 1.141 and 1.618. Conclusion In this article I have tried to set forth my view of the Wolf wave. As I see it, this pattern is well underestimated by the mass of suffering traders.
Education
by Lingrid
12
Key Supports and Resistance Levels of BTC/USDGood Afternoon traders. As many of you already know, Bitcoin has been rising rapidly throughout Q2 2023. The point of this post is to entice those who don't to look at the bigger picture. Perspective is everything, and whether you're trading crypto spot or futures, stock or derivatives, be sure to identify key support and resistance trading channels to look for breakouts. A breakout above the key resistance channel trending along I drew my first trendline (support) on the bottom of the chart from the lowermost point on an hourly chart starting at the bottom of the candle of Thursday June 22nd at 10am and ending with a second point on Wednesday June 28th at 3pm, extended right, creating a trendline among the bottom channel. I drew my second trendine (resistance) on the uppermost point of the candle of Friday June 23rd at 12:00pm, to the uppermost point of Tuesday June 27th at 10am, extending right, creating a trendline among the top channel. You can expect BTC to trade within the trends, and look for major moves for when it breaks out. Being able to identify trends and chart channels should be a practice in every trader's knowledge inventory, and applied throughout their trading career on most charts, if not all. *Remember to always apply alarms to these critical lines of support and resistance to help you identify breakouts.* Thanks for reading, and happy trading / success!
BINANCE:BTCUSD
by TanerT007
1
Sideways Trend Example: ❗️Unleashing the Secrets of the Forex Market: Identifying Trends Made Easy❗️ 💲As traders, one of the most essential skills is the ability to identify trends. In this article, we will embark on a journey to unravel the mysteries of the forex market trends like never before. So, fasten your seatbelts, get ready for an adventure, and let's dive in! ↗️The Smooth Sailing - Uptrends: Picture yourself in a sailboat on a calm, sunny day, with the wind gently pushing you forward. This pleasant scenario beautifully represents an uptrend in the forex market. Uptrends occur when the price of a currency pair consistently increases over time. To identify an uptrend, keep an eye out for higher highs and higher lows on your price charts. Uptrend Example: ↘️Rough Waters - Downtrends: Now, let's transform our tranquil sailboat into a powerful vessel battling against fierce waves and gusty winds. Similar to this scenario, a downtrend indicates a series of declining prices in the forex market. To recognize a downtrend, look for lower lows and lower highs on your price charts. Downtrend Example: 🔄The Eye of the Storm - Sideways Trends: Imagine yourself caught in the eye of a storm, where the winds calm down, and the waves become gentle ripples. This serene moment perfectly mimics a sideways trend in the forex market. Sideways trends occur when the price moves within a relatively tight range, lacking a clear direction. To spot a sideways trend, locate horizontal support and resistance levels, and observe price movements bouncing between them. Sideways Trend Example: 📊Interpreting the Elements - Indicators: Just as sailors use compasses and maps to navigate the open seas, traders have powerful tools at their disposal to identify trends in the forex market. Technical indicators, such as Moving Averages, MACD, and RSI, provide valuable insights by analyzing past price data. These indicators can help confirm and strengthen your trend analysis. 📈The Art of Patience - Confirming Trends: Sometimes, identifying trends in the forex market can feel like searching for a needle in a haystack. Therefore, it is crucial to exercise patience before jumping into trades. Waiting for confirmation is vital to avoid false signals. Look for multiple indicators aligning with your identified trend before making any decisions. 💹Riding the Waves - Trend Trading Strategies: Once you've identified a trend in the forex market, it's time to ride the waves and potentially profit from it. Trend trading strategies involve jumping on board during an established trend and holding positions until signs of a reversal appear. By keeping emotions in check and adhering to risk management principles, you can increase your chances of success in trend trading. 🧠Conclusion: Navigating the vast and ever-changing forex market can seem like an exhilarating adventure. By mastering the art of trend identification, you hold the key to unlocking potential profits. Remember, whether you're sailing through uptrends, weathering downtrends, or calmly cruising sideways trends, a combination of technical indicators, confirmation, and patience should guide your decision-making. So embrace the wonder of the forex market, and may your trend-spotting skills be forever sharp! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
11
TREND CONTINUATION PATTERNSChart pattern construction is an important part of any market analysis. Charting patterns are powerful indicators of potential market movements. These patterns appear on a chart and are used to predict when a trend is likely to continue or reverse. The three most common patterns are triangles, wedges, and flags. They are all typically seen as signs of a trend continuing, but their specific meaning varies depending on the trend they are associated with. For example, a triangle can signal a continuation of a trend, while a flag can signal a potential reversal. ✴️ Triangles Triangles are formed when two trend lines converge, forming a pattern that resembles a triangle. These can be either symmetrical or asymmetrical, and are usually seen as a sign of a bullish or bearish trend continuing. Symmetrical triangles can be seen as a sign of consolidation before a breakout in either direction. Asymmetrical triangles are usually seen as a sign of a continuation of the existing trend. ✴️ How to trade triangles Trading triangles can be a very profitable endeavor, but it can also be risky. There are three main types of triangles: ascending, descending, and symmetrical. Ascending and descending triangles are bullish or bearish, while symmetrical triangles can be bullish or bearish, depending on the trend. Once you have identified a triangle pattern, you need to wait for a breakout. A breakout is when the price breaks out of the triangle pattern and continues in the direction of the trend. When trading triangles, it is important to wait for a confirmed breakout. A confirmed breakout is when there is a clear break of the triangle pattern and the price has moved in the desired direction. There are a number of different signals you can look for to help you determine when a breakout is happening. These include candlestick patterns, moving averages, and volume. ✴️ Wedges Wedges are similar to triangles in that they are formed by two converging trend lines. However, the difference is that wedges form a pattern that resembles a wedge shape. Wedges can be either rising or falling, and are usually seen as a sign of continuation for the existing trend. Rising wedges are generally seen as bearish, while falling wedges are seen as bullish. Wedges can be a useful signal if used correctly, but they are not always clear-cut. It is important to understand whether a wedge is rising or falling, and whether it is being viewed as bearish or bullish, in order to get the most out of this pattern. ✴️ How to Trade wedges When trading wedges in the forex market, there are two main approaches – the breakout approach and the reversal approach. The breakout approach involves trading the breakout of a falling wedge pattern. This type of pattern is typically seen during an uptrend and is seen as a potential sign of a reversal. When trading a falling wedge, traders will look for prices to break out of the wedge by either going above the resistance trend line or below the support trend line. If prices break out above the resistance trend line, it is seen as a sign that the uptrend will continue and traders can look to buy. On the other hand, if prices break out below the support trend line, it is seen as a sign that the uptrend is over and traders can look to sell. The reversal approach involves trading the reversal of a rising wedge pattern. This type of pattern is typically seen during a downtrend and is seen as a potential sign of a reversal. When trading a rising wedge, traders will look for prices to break out of the wedge by either going above the resistance trend line or below the support trend line. If prices break out above the resistance trend line, it is seen as a sign that the downtrend is over and traders can look to buy. On the other hand, if prices break out below the support trend line, it is seen as a sign that the downtrend will continue and traders can look to sell.   ✴️ Flags Flags are formed when two parallel trend lines form a pattern that resembles a flag. They are usually seen as a sign of a continuation of the existing trend, although they can also signal a reversal. Bullish flags are typically seen as a sign that the trend will continue higher, while bearish flags are seen as a sign that the trend will continue lower. In light of the recent market volatility, it is important to remember that chart continuation patterns such as triangles, wedges and flags can be a powerful tool for predicting potential market movements. They are usually seen as a sign of a trend continuing, although their individual meaning can depend on the trend they are associated with. As such, it is important to be familiar with these patterns to be able to accurately predict potential market movements. ✴️ How to trade flags When looking for a flag pattern to trade, you should be on the lookout for two distinct highs or lows that form a trend line. The trend line should then be connected to a parallel line that is a few pips below the lower peak. If you identify a valid flag pattern, then you can move on to the next step. Once you have identified a valid flag pattern, you should then calculate your risk and reward. Your stop loss should be placed just below the lower parallel line of the flag pattern, and your target price should be placed at the upper parallel line. Good luck, and happy trading!
Education
by DeGRAM
5
TRANSPARENCY IN PROVIDING FOREX SIGNALSTransparency of forex signal providers is an important concept for making successful trading decisions. Transparency of forex signal providers means that an investor can view a signal provider's trading history, including results and statistics. This gives an investor the opportunity to evaluate the verified trading history and make a decision on whether to connect or disconnect a signal provider. The advantage of forex signal provider transparency is simply invaluable. As every investor knows, there are many signal providers in the Forex market with bad reputations which can cause an investor great losses. This is why it is essential to have transparent information about signal providers, which gives the investor the advantage of making a more informed decision. Fortunately, thanks to technology and global support from forex brokers, transparency of forex signal providers is becoming more and more accessible. Usually trading platforms provide detailed information about signal providers, including their trading history, results, win/loss percentages, types of trading strategies, etc. This gives investors confidence in their decision, which means they don't have to worry about the signal provider hiding information. Forex signal providers are important to traders because they provide information that can help them make investment decisions. Therefore, it is very important for signal providers to be transparent. To have the right to be called transparent, forex signal providers should provide traders with complete and reliable information about their methods of analysis and trading. This way, traders can make an objective and informed decision on whether to use their services. Here are a few signs of transparency that can help traders evaluate a forex signal provider: 1. Open price presentation: the forex provider should present transparent prices for currency pairs, including spreads, commissions and other fees. 2. Transparent pricing: Forex signal providers must provide traders with complete information about the rates and terms of their services. This will help traders avoid misunderstandings and miscommunication in trading. 3. Transparency in the process: Forex signal providers must also provide traders with detailed information about how they analyze and trade the markets. This way, traders can get more information about how the signal provider makes decisions. 4. Open risk policies: Transparent forex providers have a clear risk policy and provide information about their policies and precautions. 5. Openness about historical results: Forex providers must provide access to their historical results to show you how they operate. Given the above signs of transparency, you will be able to choose a reliable forex provider and make the right decision about your trading actions. You will need to do your homework and study the market, but this will allow you to choose a transparent forex provider that will give you the opportunity to profit in forex trading. Overall, the transparency of a forex signal provider is an essential part of successful trading. Traders should have access to complete and reliable information in order to make the most of their investment. In conclusion, the transparency of forex signal providers plays a key role in successful trading. Thanks to the availability of information about signal providers, investors can properly assess their risks and make informed trading decisions.
OANDA:XAUUSDEducation
by UnknownUnicorn15614419
9
Rising wedgeA rising wedge in an up trend is usually considered a reversal pattern. This pattern is at the end of a bullish wave, by creating close price tops, shows us that the supply has intensified and there is a possibility of a trend change. Of course, nothing is certain and if the buyers are more willing and strong, this pattern may be broken in the direction of the market rise. A rising wedge in the middle of a downtrend, is considered a corrective move and is known as a continuing pattern. For example, take a look at the above chart of Ethereum on the weekly time frame
Education
by Dealerify_HUNTER
How To Trade Double Bottom Pattern? ✅In the world of forex trading, understanding patterns and trends can make all the difference between profit and loss. One popular pattern that traders often look out for is the double bottom, also known as the "W" pattern. ✅The double bottom pattern occurs when the price of a currency pair reaches a low point, bounces back up, dips again to the same level, and then bounces back up again, creating a "W" shape. Essentially, the market has twice failed to break through the support level, indicating a potential reversal to the upside. ✅This pattern is often seen as a bullish indicator, as it suggests that buyers are stepping in and pushing the price up. It is important to note, however, that the second bounce should not dip below the first one, as this could indicate a continuation of the bearish trend. ✅So, how can traders take advantage of the double bottom pattern? One strategy is to enter a long position once the price breaks out above the resistance level created by the two bounces. This breakout confirms the reversal and can signal a potential uptrend. ✅It is also important to combine the double bottom pattern with other technical indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), to confirm the potential reversal. ✅However, as with any trading pattern, it is important to approach the double bottom with caution and to always have a solid risk management strategy in place. Traders should also be aware of potential false signals and market noise that could obscure the true trend. ✅In summary, the double bottom pattern can be a useful tool for forex traders looking to identify potential reversals and enter profitable trades. By combining it with other technical indicators and practicing proper risk management, traders can improve their chances of success in the ever-changing and unpredictable world of forex trading. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Diversification in Cryptocurrency InvestingIn the evolving world of finance, cryptocurrencies have carved a unique niche, attracting investors worldwide due to their potential for high returns. With over 6,000 cryptocurrencies in existence as of mid-2023, investors have a multitude of choices when building a crypto portfolio. However, the inherent volatility of the crypto market also means a higher degree of risk. One way to manage this risk is through portfolio diversification. This comprehensive guide will delve into the principles and strategies of diversification in the context of cryptocurrency investing. Understanding Diversification Diversification, in financial parlance, is the practice of spreading investments among different types of assets to reduce risk. The primary purpose is to limit exposure to any single asset, thereby mitigating potential losses. As the saying goes, "Don't put all your eggs in one basket." When applied to cryptocurrencies, diversification entails spreading investments across a variety of crypto assets. Given the high volatility and unpredictability of the crypto market, diversification doesn't completely eradicate the risk. However, it does offer a certain degree of protection against the extreme price swings characteristic of individual cryptocurrencies. Importance of Diversification in Crypto Investing The need for diversification in crypto investing stems from the market's inherent volatility. Due to factors such as regulatory news, technological advancements, market sentiment, and macroeconomic trends, crypto prices can fluctuate wildly within short periods. While this volatility can provide opportunities for significant gains, it also exposes investors to substantial losses. A diversified portfolio helps to mitigate these risks. If one cryptocurrency in the portfolio experiences a significant decline, the impact on the entire portfolio may be cushioned by other cryptocurrencies that remain stable or increase in value. Diversification Strategies in Cryptocurrency Investing A well-diversified crypto portfolio involves more than holding an assortment of cryptocurrencies. It requires a strategic approach that considers various factors such as the types of cryptocurrencies, token sectors, blockchain ecosystems, investment strategies, and balancing crypto and non-crypto assets. Types of Cryptocurrencies There are thousands of cryptocurrencies available for investment, each with its unique features, use cases, and market behavior. A diversified portfolio could include a mix of the following: - Bitcoin (BTC): As the first and most prominent cryptocurrency, Bitcoin often forms the foundation of many crypto portfolios. - Ethereum (ETH): Known for its smart contract functionality, Ethereum is another major player in the crypto world. - Altcoins: These are alternatives to Bitcoin and include a wide range of cryptocurrencies like Litecoin (LTC), Ripple (XRP), Cardano (ADA), and many others. - Stablecoins: These are digital tokens designed to minimize volatility by pegging their value to a reserve of assets, usually a fiat currency like the U.S. dollar. Token Sectors Investing across different token sectors offers another level of diversification. Some of the main categories include: - Decentralized Finance (DeFi): DeFi projects aim to emulate traditional financial systems in a decentralized manner. This sector includes cryptocurrencies related to lending platforms, decentralized exchanges, and yield farming platforms. - Non-Fungible Tokens (NFTs): These are unique digital assets that represent ownership of specific items or pieces of content on the blockchain. - Utility Tokens: These are tokens used to access services within a specific blockchain ecosystem. Blockchain Ecosystems Investing in various blockchain ecosystems is a powerful diversification strategy. Each blockchain has its unique features, community, and associated tokens. By investing across multiple blockchains, you are effectively spreading risk and potential rewards across various platforms. Some of the prominent blockchain ecosystems include Ethereum, Binance Smart Chain, Polkadot, Solana, and Cardano. Diversification through Investment Strategies Investment strategies also play a significant role in portfolio diversification. Some of these strategies include: - Holding (HODLing): This involves buying and holding cryptocurrencies for a long time, irrespective of short-term price fluctuations. - Trading: This involves buying and selling cryptocurrencies based on short-term price movements. This strategy can be further divided into day trading, swing trading, and arbitrage trading. - Staking: In proof-of-stake (PoS) and its variants, you can participate in the network's consensus mechanism by holding and staking your coins, earning new coins as a reward. - Yield Farming: This involves lending or providing liquidity to DeFi platforms in return for interest and fees. Balancing Crypto and Non-Crypto Assets Lastly, diversification also includes maintaining a balance between crypto and non-crypto assets. Even if you're heavily invested in crypto, it may be wise to hold a portion of your portfolio in traditional assets such as stocks, bonds, real estate, and commodities. This can provide stability during turbulent crypto market conditions and offer returns that are not correlated with the crypto market. How to Diversify Your Cryptocurrency Portfolio Step 1: Understand Your Risk Tolerance Before investing in any asset, including cryptocurrencies, you need to understand your risk tolerance. Ask yourself how much risk you are willing to take and how much investment you are ready to lose without affecting your financial stability. Step 2: Research Cryptocurrencies Conduct thorough research on different types of cryptocurrencies. Understand their underlying technology, use-cases, and potential for future growth. This will help you select a mix of coins for your portfolio. You should also stay updated on crypto market trends, news, and regulatory changes as these can significantly affect crypto prices. Step 3: Choose a Variety of Coins A well-diversified crypto portfolio should contain a mix of established cryptocurrencies like Bitcoin and Ethereum, as well as promising altcoins. However, you should not randomly select coins. Each cryptocurrency in your portfolio should be backed by thorough research and sound reasoning. Step 4: Diversify Across Sectors and Ecosystems Invest in cryptocurrencies across different sectors (DeFi, NFTs, utility tokens, etc.) and blockchain ecosystems (Ethereum, Binance Smart Chain, Polkadot, etc.). This can help reduce exposure to risks associated with a particular sector or ecosystem. Step 5: Use Different Investment Strategies Utilize a combination of investment strategies such as long-term holding, trading, staking, and yield farming. Different strategies can help spread risk and maximize returns. Step 6: Balance Your Portfolio with Non-Crypto Assets To safeguard your portfolio from extreme crypto market volatility, consider investing a portion of your portfolio in traditional assets such as stocks, bonds, real estate, or commodities. Step 7: Regularly Monitor and Rebalance Your Portfolio The crypto market is highly volatile and can change quickly. Regular monitoring allows you to track the performance of your investments and make necessary adjustments. Rebalancing involves adjusting your portfolio periodically to maintain your desired level of asset allocation and risk. Potential Limitations of Diversification in Cryptocurrency Investing While diversification is a generally recommended strategy for managing investment risk, it does come with certain potential limitations. Investors must be aware of these aspects when building a diversified cryptocurrency portfolio. Reduced Potential Returns Diversification aims to mitigate risk by spreading investments across various assets. However, this approach can also potentially limit gains. If you invest in a wide array of cryptocurrencies, your portfolio may not grow as much when one cryptocurrency experiences a dramatic price increase. Essentially, while diversification helps limit downside risk, it may also cap the upside potential. Over-Diversification While having a variety of investments can help to reduce risk, there is such a thing as over-diversification. If you hold too many different cryptocurrencies, it can become challenging to effectively monitor and manage your investments. Additionally, if the number of investments is too large, the positive performance of one asset might be negated by the poor performance of another. Increased Complexity Maintaining a diversified portfolio can be complex and time-consuming. Each cryptocurrency needs to be researched thoroughly before being added to the portfolio, and even after the investment, it needs to be monitored continuously. This process can become overwhelming, especially when investing across various token sectors and blockchain ecosystems. Costs Diversification can sometimes come with higher costs. If you're trading or transferring your cryptocurrencies frequently to maintain a diversified portfolio, transaction fees or "gas fees" can add up. For small portfolios, these costs might make diversification less effective. Lack of Correlation Data In traditional finance, assets are often chosen for diversification based on their correlation. In the cryptocurrency market, however, the relatively short history and high volatility can make it challenging to determine reliable correlation coefficients. This lack of reliable data can sometimes limit the effectiveness of diversification. Conclusion: Diversifying the Smart Way Diversification is a powerful strategy to manage the inherent risk associated with investing, particularly in volatile markets like cryptocurrencies. However, successful diversification requires a deep understanding of the crypto market, careful analysis of individual crypto assets, and regular portfolio review and rebalancing. Diversification strategies should be personalized to fit an individual's risk tolerance, investment goals, and knowledge level about cryptocurrencies. With the rapidly evolving crypto landscape, staying informed and adaptable is crucial to maintaining a diversified and resilient crypto portfolio. Remember, while diversification can mitigate risk, it does not guarantee profit or protect entirely against loss in a declining market. As always, thorough research and due diligence are vital before making any investment decisions.
Education
by ShawnMCR
30
BTC dominance and altseasonAll logic is clearly displayed on the chart. I have been using BTC dominance over altcoins (the entire market) in my work since 2017. Note that a "double bottom" is forming on the chart. But, at the moment, the season of games has opened under the title: "not environmentally friendly", while it is going on, such a construction is unlikely to come true. Use this period. Then, most likely, everything will change. Bad - good - bad - good - bad This type of analysis works with both local market movements (which I mainly use) and the large-scale segments shown in this chart. Please note that the "altcoin mass pumping season" is always very short for obvious reasons, use it and do not be greedy. Your greed is your death in the marketplace.
CRYPTOCAP:BTC.D
by SpartaBTC
57
Decoding BitcoinIntroduction: Bitcoin, the pioneer of the cryptocurrency world, has undoubtedly been a revolutionary force since its inception in 2009. This digital asset's volatile journey—marked by explosive growth, dramatic crashes, and key learning moments—highlights both its potential and its unpredictability. This educational guide aims to illuminate Bitcoin's history, delve into the technology that underpins it, discuss the impact of regulations and global economics, and offer practical insights into managing investments in this high-risk, high-reward landscape. Part I: A Brief Walk Through Bitcoin's History: From an experimental digital currency in 2009 to reaching unprecedented heights in 2021, Bitcoin's journey has been nothing short of a rollercoaster ride. The history of Bitcoin serves as a testament to the potential for extraordinary returns, while also cautioning investors about the unpredictable and volatile nature of the cryptocurrency market. It underscores the need for emotional resilience and a level-headed approach when investing in such assets. Part II: Understanding Blockchain Technology: Behind Bitcoin lies a groundbreaking technology—blockchain. This decentralized ledger system provides transparency, security, and efficiency, impacting numerous industries beyond finance. As an investor, it is vital to understand the technological foundations of your investments. A deep comprehension of blockchain technology and its potential can provide an edge when navigating the crypto landscape. Part III: Impact of Regulations and Macroeconomic Factors: Bitcoin's price trajectory over the years reveals how external factors like regulatory changes and macroeconomic events can significantly impact the cryptocurrency market. Notably, the Chinese government's restrictions on cryptocurrency trading in 2021 triggered a steep fall in Bitcoin's value. Thus, keeping a close eye on global economic events and understanding the potential impact of regulatory shifts is an integral part of informed cryptocurrency investing. Part IV: Sensible Investments and the Power of Diversification: The volatile nature of Bitcoin emphasizes the importance of sensible investing. Risk management should be a cornerstone of any investment strategy, and no investment, however promising, should jeopardize your financial stability. Diversification, a time-tested investment strategy, is equally applicable to cryptocurrencies. By spreading investments across various asset types, investors can better manage risk and potentially enhance returns. Part V: Navigating Market Cycles: Understanding market psychology is crucial in the volatile world of cryptocurrencies. Market cycles of euphoria, denial, fear, and despair can heavily influence investor behavior. Recognizing these emotional cycles can provide perspective during extreme market movements, helping investors avoid panic-induced or greed-driven decisions. Part VI: Bitcoin's Role in the Global Financial Ecosystem: Over the years, Bitcoin's role has evolved significantly—from an experimental digital currency to a potential 'digital gold' and a hedge against inflation. By exploring its evolving role within the global financial system and understanding how geopolitical events can impact its value, we can gain a deeper appreciation of Bitcoin's potential and its risks. Part VII: Exploring the Broader Cryptocurrency Ecosystem: While Bitcoin remains the flagship cryptocurrency, it is part of a larger ecosystem encompassing altcoins, decentralized finance (DeFi), and non-fungible tokens (NFTs). By understanding these diverse facets of the cryptocurrency landscape, investors can identify a wider range of opportunities and make more informed investment decisions. Part VIII: Prioritizing Security in the Digital Asset Space: Cryptocurrency investing also requires a strong focus on security. Safeguarding digital assets involves adopting best practices such as using hardware wallets, enabling two-factor authentication, and understanding the importance of private keys. Educating oneself about these security measures is invaluable for anyone venturing into the crypto space. Conclusion: The cryptocurrency world, led by Bitcoin, is a dynamic and exciting landscape offering unprecedented opportunities. However, the high volatility and unpredictability inherent to this space require a solid grasp of its various aspects. The history of Bitcoin serves as an ongoing educational narrative for investors, highlighting the potential rewards and risks involved. With due diligence, prudent risk management, a deep understanding of the underlying technology, and an awareness of the broader financial and regulatory landscape, one can navigate this exciting new frontier with confidence and curiosity.
by ShawnMCR
21
WHAT IS CUP AND HANDLE FORMATIONIn the traders' job the chart patterns indicating price changes are of great importance. This includes the "Cup and Handle" formation. A cup and handle is a popular chart pattern among technicians that was developed by William O’Neil and introduced in 1998. What does the pattern look like? "Cup with handle" is the term chosen because of the undeniable similarity between this type of dishes and what the trader sees on the chart. It is hard to judge how much this pattern is in demand among traders, because there are more practical interest formations. Cup The formation of a bullish trend is considered as an important condition that leads to the formation of such a position. Although experts consider it to be a reversal. "Cup with a handle" is formed at the moment when the correction of the previous rising direction of the chart takes place. At the same time, the trader should definitely pay attention to the depth of the chart. It is of interest if the formed slope does not exceed 80% of the trend that was before the formation of this specific pattern. The bottom of the formed bowl meets the period of price consolidation, upon its completion the ascent begins. Handle The handle on the chart means nothing else than the correction of prices in relation to those that were at the time when the right side of the cup was formed. Trades compare this section not so much to a pen as to a flag. Of interest is the situation when the flag begins to form immediately after the end of the formation of the right side of the cup. The length of the handle created by the chart should not exceed 50% of the size of the right side of the cup. The formation of this part of the graph takes quite a long time. The long-time interval indicates the subsequent formation of the trend. This section of the chart becomes fully complete only after the resistance level is broken. If we look at what we see on the chart from a practical point of view, we can say the following: when the left part of the cup is drawn, there is a gradual decline in prices, at the time of formation of the bottom they remain stably low, and during the creation of the right part there is a gradual increase in prices. At the moment of the breakdown a sharp increase in the number of trades is observed. How to trade the chart pattern on Forex Aggressive Conservative Regular Each of them has its own positive and negative characteristics. Low demand among the used Forex methodologies is caused by the fact that it requires taking into account a large number of indicators, otherwise the probability of making a mistake is very high. Particular difficulties may occur in the analysis of the depth and width of the chart figure. The probability of missing a profit when working with this type of chart is rather high. Aggressive method It is considered riskier. It is based on the behavior of the handle. The orders should be started after the breakout of the handle or, using another terminology, the breakout of the flag. In this case the "stop" position is placed below the level that the breakout of the candle. Regular Method The regular approach to trade positions are opened immediately after the breakdown of the pattern line. Stop-loss should be placed below the handle, that is, below the line involved in the formation of resistance. Conservative method It is used most often. It is based on the classical traditions of trading. Attention is paid to the breakdown of the technical line. The ideal variant is entering after the retest of the breakout line. The stop-loss should be below the handle or below the "breakout" candle from the breakout line (at least if it is big enough).
Education
by Lingrid
5
The Ups and Downs of Investment Risk: Navigating the Risk Level 👉🏻The world of investing can be a wild ride, full of twists and turns that can lead to either high gains or crushing losses. That’s why it’s important to understand the different risk levels that come with investing in various assets. Let’s explore the three main categories of investment risk levels: low, moderate, and high. 💹Low Risk If you’re risk-averse and prefer a steady, predictable return on your investment, low-risk options are the way to go. These are investments with low volatility and minimal chance of losing money. 💹Moderate Risk If you’re willing to take a bit more risk for potentially higher returns, moderate-risk investments might be a good fit for you. These typically have a higher volatility rate, but still have a good chance of earning a positive return in the long run. 💹High Risk For those willing to take on the highest level of investing risk in search of the highest returns, high-risk investments might be worth considering. These have the highest potential for extreme highs and extreme lows with significant volatility. 👉🏻It’s important to note that each investor’s risk tolerance is different, and what might be a high-risk investment for one person could be a low-risk investment for another. So, when considering investment options, make sure to weigh both the potential rewards and the accompanying risks. 👉🏻In conclusion, investing involves a certain amount of risk, but understanding and balancing those risks can help you make informed decisions that align with your financial goals. Whether you opt for low, moderate, or high-risk investments, do your research and seek advice from financial professionals to determine which level of investing risk is right for you. Happy investing! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
Target reached! GBPUSD ReviewPrice bounced off the 1.2683 support we identified and rose nicely to our take profit target at the 1.2832 level. In this review, we touch on why we used the 1.2832 level and not the swing high at 1.2850 - a lot of this is down to trade management and take profit placement. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
WHAT IS ChoCH AND HOW TO USE ITChoCH in trading is a change of sentiment (change of character) in trading order blocks. ✴️ Definition The ChoCh (change of character) is a change of sentiment in the market. That is, the change in the nature of the movement of the market from bullish to bearish or vice versa. This term is used in technical analysis strategies of order block trading. It is used by traders in the forex market, as well as in the cryptocurrency market. Choch is also known as a reversal when the price fails to form a new higher high or lower low. It then breaks the pattern and starts moving in a different direction. To form a Choch using the smart money concept on a chart in a downtrend, you must as shown above: 1.Gradually decreasing highs and lows of the bearish trend. 2. The last maximum price update. It is at this point that a change in sentiment is formed. We will go over the basics of Choch trading and the main advantages of trading. ✴️ Combination of timeframes on Forex The best entry points are formed when combining two timeframes: Keep in mind that a change in structure does not always involve a global change in market trend. 1. On the higher timeframe the order block is formed as support or resistance level, in the zone of which the reversal is looked for. This is H1, H4 or D1 time frame. 2. The lower timeframe is used to identify the change of character and entry on the trade signal after the Order Block test. On the mt4 chart this looks like the example, where the order block is highlighted by a rectangular range below. ✴️ How to trade Let's analyze EURUSD recent trading opportunity for the change of the market movement. The first one shows that a bos (break of structure) was formed after the choch. The buy position took place when the chart returned to the order block area. The next reversal pattern is relevant in determining the liquidity zone, where there are the stop losses of the crowd of traders. The difference between the previous pattern is that the price tends to break the liquidity zone after the bos. Buying is performed on the order block at the very minimum of the chart. ✴️ Conclusion Choch in trading allows the trader to determine the best reversal point with a high-risk profit ratio. Often the values reach 1k5 or more. The change of mood is easy to identify even for beginners in Forex trading on smart money. At the same time, its success rate reaches 60 percent.
Education
by DeGRAM
12
👻The Movers and Shakers: Meet the Big Forex Players👻 🍀The forex market is a dynamic and complex marketplace, with billions of dollars changing hands every day. At the center of this volatile financial landscape are a handful of key players who wield immense power and influence over the direction of global currencies. In this article, we'll introduce you to some of the biggest and most influential forex market players. 🌸The Central Banks: "We set the tone for the entire forex market." Perhaps the most important forex market players are the world's central banks. These powerful institutions have the ability to control the supply and demand of their respective currencies, through interest rate policies and other monetary maneuvers. Whenever a central bank makes a move, traders around the world sit up and take notice. 🌺The Big Banks: "We are the gatekeepers of the forex market." Big banks are another major group of forex market players, and they play a critical role in providing liquidity to the market itself. These institutions act as intermediaries, buying and selling currencies on behalf of their clients and helping to facilitate trades between different market players. 🌼Hedge Funds and Trading Firms: "We thrive on volatility and uncertainty." Hedge funds and trading firms are a relatively new entrant to the forex market, but they have quickly become some of the most important players. These firms are often staffed by experienced traders and analysts who use complex algorithms and trading strategies to capitalize on short-term market movements. 🌹In conclusion, the forex market is a complex and ever-evolving landscape, but understanding the key players involved can help investors and traders make more informed decisions. Whether you're following the moves of central banks, working with big banks, or leveraging the insights of hedge funds and trading firms, the forex market is full of opportunities for those who are willing to take the risk. Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
7
GBP/JPY, EUR/JPY and USD/CAD on watch for me today.GBP/JPY: • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart. • If price pushes up impulsively to and ideally just above our upper trend line, then I'll be waiting for a convincing push back down below our rayline followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If price pushes up to and ideally just above our rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades. EUR/JPY • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart. • If price pushes up impulsively to and ideally just above our upper trend line, then I'll be waiting for a convincing push back down below our rayline followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If price pushes up to and ideally just above our rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades. USD/CAD • If price pushes down to and ideally just below our lower trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart. • If price pushes down to and ideally just below our lower rayline, then regardless of how price does so I'll be waiting for a convincing push back up followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If price only pushes down to our upper rayline, then again regardless of how price does so I'll be waiting for a convincing push back up followed by a tight flag where I'll again be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades.
by StewySongs
5
NZD/USD and GBP/USD on watch for me today.NZD/USD: • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart. • If price pushes up impulsively to and ideally just above our upper trend line , then I'll be waiting for a convincing push back down below our rayline followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If price pushes up to and ideally just above our rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If neither of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades. GBP/USD: • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart. • If price pushes up impulsively to and ideally just above our upper trend line , then I'll be waiting for a convincing push back down below our rayline followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If price pushes up to and ideally just above our rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades.
Short
by StewySongs
38
GBP/USD on watch for me today.GBP/USD: • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart because we will have had a completed three touch structure. • If price pushes up impulsively to and ideally just above either our upper trend line, our upper rayline or our lower rayline, then I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag and if the flag forms just below our lower rayline as illustrated I'll be hiding my stop loss above it for extra protection as illustrated. • If price pushes up to and ideally just above our lower rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades.
Short
by StewySongs
44
Five Points to consider before placing a trade🖐Five points to consider before choosing an Entry /Exit point📈📉 ☝️ Point1: Before choosing an entry point. We need to put into consideration the general market sentiment. Get informed about economic events, news, and indicators that can influence the market🤔. ✌️ Point 2: Pickup your trading journal run a proper technical analysis. Determine the market trend by examining charts, patterns, and indicators. Identify potential entry and exit points based on your trading strategy🤔📈📒. 🤟 Point 3: Place the trade. Follow your strategy and risk management rules. Set clear parameters for position size, stop-loss, and take-profit levels. Always Stick to your plan to maintain discipline‼️🏋. 🖖 Point 4: Manage the trade. Once you're in the trade, let your stop-loss follow the price, protecting your capital and securing profits. Consider adjusting your stop-loss or taking partial profits if the trade moves in your favor🫣🚫. 🖐 Point 5: Post-trade analysis. After the trade is closed, take the time to review, analyze, learn, and improve. Reflect on your decisions, outcomes, and emotions. Identify strengths and areas for improvement to enhance your future trading performance, make proper use of your trading journals🙂📔💰. Remember, successful trading requires patience, discipline, and continuous learning. Adhering to these five points,will cause an exponential growth in your trading game. Happy trading! 👨‍🎓📚💰
Education
by Freaky_Josh
MOST POWERFUL TRADING SETUPThe fakey setup is a powerful trading strategy that can be used to identify high-probability entries in the forex market. It combines three different chart patterns and requires the trader to be patient and wait for the right setup to form. With a bit of practice, traders can become very proficient at spotting fakey setups and taking advantage of them. Fakey setup begins with an inside bar or false breakout pattern. This is when price breaks out of a range but quickly reverses and closes back inside the range. This shows that the breakout was false and signals a potential reversal. The false breakout is followed by a pin bar. This is a strong candlestick pattern that has a long tail and a short body. The long wick indicates a rejection of a certain price level. Simply put, this setup is formed when a false breakout of the triangle pattern occurs. The inside bar is actually a triangle if you look at the small timeframe, and its false breakout forms this strong setup. On a bitcoin chart for example, you can find many such setups. This is another version of the fakey setup. Where a false breakout of the triangle leads to a strong bullish movement. In the forex market this setup is traded as usual. Fakey setup in Forex market *️⃣ The main form occurs when one of the highs or lows of the mother bar breaks with a bar with a long tail. IMPORTANT TO KNOW *️⃣ In the forex market the fakey setup is traded only on H4 timeframes, better on D1 only on the trend, it is very risky to catch reversals on its tops or lows. As in any Price Action pattern, there must be a confluence point, which can be support or resistance levels. Fibonacci levels or trend lines are right place to take trade if you find this setup. Trading is conducted by pending buy and sell orders. Take profit can be taken at a distance of "stop loss multiplied by n", where the recommended value of n = 2 (there can be more), or at the nearest horizontal level. But each trader's method of exiting a trade may be different. You can trade fakey setup against the main trend, but like any other counter-trend setup, it must be absolutely obvious with a perfect shape and must be on an obvious and strong daily level. You should not trade fakey against the trend until you learn how to trade this setup with the trend on the daily charts. Keep in mind that fakey on hourly charts has almost no power. Only the breakout of the mother candle following the breakout of the inside bar is a is a signal to enter the trade. Because there was not a substantial breaking of the mother candle as in a significant fakeout, there is a need for further confirmation that the market is actually going in our favor. The fakey is a particularly successful setup since a false-break that developed in the opposite direction of the strong trend suggests that the trend is going to continue. Even if false breakout of horizontal market support and resistance levels don't happen frequently. The price crosses the horizontal level in the example below, but the subsequent candle bounces rapidly and moves upward, indicating that the level was a false breakout and also forming Inside Bar setup: A false triangle breakout can be found in any market. Bitcoin really likes this pattern, but in a slightly different form although the essence remains the same. How does it happen? The market essentially consolidates, after a trend movement forms a triangle, and a false breakout of this pattern leads to a continuation of the movement. This pattern can be found from 2014 on the BTC chart.   Fakey is one of the best sets of price action since it reveals market activity and predicts what is likely to occur in the near future. Because a strong trend has both technical and fundamental reasons to move in one direction or another, this setup works best in trend markets. A fake breakout happens when "amateurs" try to buy at the top or sell at the bottom because professional players enter the market and profit from the brief retreat brought on by the "amateurs'" greed and emotional trading.
Education
by Lingrid
13
Why 90% Of Traders FAIL⁉️ Trading is one of the most fascinating and exciting professions in the world. It promises huge profits, financial independence, and the ability to work from anywhere. But with great rewards come great risks, and 90% of traders fail. Why do so many traders fail? Let's explore the reasons. 📚Lack of education: Many traders jump into trading without the proper education or training. They don't understand the market dynamics, technical analysis, and risk management. Trading is a skill that needs to be learned and practiced over time. Without education, traders are like blind people trying to navigate through a maze. 💔Emotional trading: Emotions are the biggest enemy of traders. Fear, greed, and hope can cloud judgment and lead to poor decision-making. Successful trading requires discipline and emotional control. Traders must learn to keep their emotions in check and stick to their trading plans. 📉Overtrading: Many traders believe that more trades translate into more profits. However, overtrading can lead to burnout, stress, and losses. Traders must focus on quality trades, not quantity. 🆘Lack of risk management: Trading involves risk, and traders must learn to manage it. Risk management includes setting stop-loss orders, using proper position sizing, and diversification. Traders who don't manage risks can quickly wipe out their accounts. ❌Unrealistic expectations: Trading is not a get-rich-quick scheme. It requires patience, persistence, and hard work. Many traders have unrealistic expectations about their profits and timelines. They give up too soon or take too much risk in search of quick profits. So, what can traders do to avoid failure? ✅Firstly, educate themselves. Learn the fundamentals of trading, technical analysis, and risk management. Investors can take various online courses for trading like those from Udacity, the Trading Academy, etc. ✅Secondly, manage emotions and develop discipline. Learn how to control your emotions and stick to your trading plan. Traders must treat trading as a business and follow strict rules like any other business. ✅Thirdly, trade with proper risk management. Develop a risk management strategy before starting trading. Use stop-loss orders, never risk more than you can afford to lose, and diversify your portfolio. 🧠In conclusion, trading can be a rewarding profession that offers many benefits. However, traders must be aware of the risks and pitfalls. By educating themselves, managing emotions, and developing robust risk management strategies traders get a good chance of succeeding in trading. Good luck! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
14