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HOW TO DETERMINE THE SIGNIFICANCE OF SUPPORT OR RESISTANCE ZONES1. The more activity in a zone, the higher its significance Here everything is clear to everyone. If a whole bunch of people are buying or selling at a particular price level, it means that this level is important for them. Very important. Not only that, but our psychology is built in such a way that: We tend to remember events that are important to us. Buyers like to break-even if the price returned to level after buying. Sellers, on the other hand, may buy low in advance and remember that prices were previously hanging out at that level of resistance. Respectively, this is the level they will be looking at to lock in their profits. 2. The greater the speed and duration of the previous movement, the better the levels When price is trying to break through resistance levels, it is similar to the action of a man breaking through a front door. If it is accelerated from a distance let’s say of 10 meters, the momentum of its movement will be very strong and the flimsy door obviously will not resist. If he is speeding up from the nearest store, far away, he will run up to the door and collapse on the threshold without any strength. The door stays the same! Nothing has changed. Its qualities, its "resistance" remain the same. What has changed is the speed of the one who wanted to get in. The same principle is valid for markets, which are a reflection of human psychology. A long, slow, long climb is a long run from the store, and the level of resistance will be a solid door. And the longer each price run, the less sturdy the door (support or resistance level) will need to hold. Let's take a look at the CADJPY chart. As we can see, the price falls to the low and then begins to accelerate. However, the decline begins, extremely steep, prolonged and sharp. As a result, by the time it reaches the support level, the price is completely exhausted, and the sellers can not break through that door any lower. 3. Evaluate the past time The third rule for evaluating the potential of support and resistance levels is to examine how much time has elapsed between the formation of the previous level and the current one. It depends on the characteristics of the selected market, as such. For example, a support level that is 6 months old is much more relevant than a 10- or 20-year level. Although, of course, time after time it is amazing how much the same support or resistance level can be "working", time after time, even if years and generations pass. Bottom line Support and resistance are simply areas of concentration of supply and demand that allow you to slow the price, at least temporarily. They are not a buy or sell signal. They are zones where a smart trader would expect a reversal. These zones should always be complemented with other tools. The significance of support and resistance zones depends on the activity of market participants at these levels, the speed and duration of movement, and how much time has passed since the previous zone was formed.
Education
by DeGRAM
8
Volatility Contraction PatternJS-Masterclass #4: The Volatility Contraction Pattern The Volatility Contraction Pattern (VCP) is a vital concept for successful traders and a key element in our JS-TechTrading strategy. In this tutorial, we will cover the following: 1. Why is it important? 2. The ‘Overhead Supply’ Concept 3. How to identify a VCP? 4. The Perfect Entry Point 1. Why is it important? The Volatility Contraction Pattern (VCP) allows us to find stocks which are getting ready to form a very specific low risk entry point at which the potential reward of our trades outweigh the risk. The main role that VCP plays is establishing a precise entry point at the line of least resistance. If a stock is under accumulation (large institutions putting their money into the stock), a price consolidation represents a period when strong investors ultimately absorb weak traders. Once the “weak hands” have been eliminated, the lack of ‘overhead supply’ (explanation see below) allows the stock to quickly move higher because even a small amount of demand will overwhelm the negligible inventory. This is referred to as the line of least resistance. Tightness in price from absolute highs to lows and tight closes with little change in price from one day to the next and also from one week to the next can generally found in constructive Volatility Contraction Patterns. These tight areas should be accompanied by a significant decrease in trading volume. 2. The ‘Overhead Supply’ Concept Any price action in the stock market is the simple result of supply and demand, just like in any other business. If demand is bigger than the supply, the price goes up. If supply outweighs demand, prices are falling, it is as simple as that! What happens to supply and demand in a Volatility Contraction Pattern? Point 1: Traders buying at point 1 in the graphic are called ‘Trapped Buyers (TBs)’. Point 2: the price has fallen and many people think the stock is ‘cheap’ at this price and buy the stock – the so called ‘Bottom Fishers (BFs)’ provide the relevant demand needed to trigger a price increase. Point 3: the price has come back up to the level at point 1. Now two things happen a) The Trapped Buyers who bought a price level 1 are very happy to get out of the trade at breakeven after having had paper losses at point 2. The cut their losses (LC) and provide the relevant supply to the market needed to trigger a declining price. b) The Bottom Fishers take nice quick profits and sell their stocks, providing additional supply to the market which adds to the decline in price. Points 4, 5, 6: The same concept applies here but as time goes by, the volatility contracts from left to right as fewer and fewer traders provide their demand and supply to the market, the price action dries out like a towel: 3. How to identify a VCP? A common characteristic of virtually all constructive price structures (those under accumulation) is a contraction of volatility, from greater volatility on the left side of the price base to lesser volatility on the right side in the chart. This pattern needs to be accompanied by specific areas in the base structure where volume contracts significantly: Let’s look at an example: In this example, we are seeing a total of 5 contractions from left to right, starting from 1 (ca. 25% decline) to 5 (< 5% decline) under significantly reduced trading volume. This is exactly what we want to see. At the final base 5, supply has stopped coming to market which is the reason for the low trading volume in this time-period. Due to the lack of supply, only very few demand is needed to push the price significantly higher. We therefore have a high probability of an explosive price increase. Also, we can set our SL just below the final base at 5 which means that our max. risk for this trade is < 5% - our potential reward significantly outweighs our risk. 4. The Perfect Entry Point When the price breaks out of the right side of the final base under higher volume, we have a perfect entry point. As the supply has stopped coming to market, only little demand is needed to cause an explosive price move upwards. Furthermore, the volatility contraction results in a tight base at the right end of the pattern resulting in a low risk entry point – the Stop-Loss can be set under the low of the latest base structure on the right side of the pattern which is normally in the range of about 5% risk. This is a vital concept for successfully timing the continuation of an existing trend.
Education
by JS_TechTrading
2
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
THE DRIVING FORCE IN THE CANDLEHello everybody! Today I want to discuss with you the movement hidden in the candle. This struggle inside the candle can tell us a lot about the future movement. Let's go! Fighting Inside each candle there is a serious struggle between buyers and sellers. Unfortunately, most traders not only do not notice, but also do not think about this struggle, and this is very valuable information. The price does not move just like that, you should understand this. Understanding which side is winning gives us information that helps us to keep a deal more confident or close it. Candles We all know that candles consist of a body and shadows. But not everyone understands how candles are formed. Let's take the first candle on the chart. This is a green full-bodied candle, without shadows. Looking at it, we understand that the strength of buyers is much higher than that of sellers. Specifically, there are no traces of sellers in this candle at all. This means that the uptrend is strong and there is no resistance from sellers, which means that if we have opened a long, we can confidently hold the position. The second candle already has shadows. These shadows are not large, but they indicate to us that sellers still managed the market for some time. From the first second, sellers pushed the price down, after which buyers forcefully overcame the situation in their favor - this is how the lower shadow was formed. The upper shadow is a movement created by sellers at the end of the candle formation. By such a candle, we can understand that the trend is still strong, although sellers are already pushing harder, but buyers are still winning quite confidently. We can still hold our position with sufficient confidence. The third candle has shadows even longer than the second. Does this mean that it's time to close a long position? No! Buyers are still strong, but sellers are not asleep either. We should be on the alert and wait for the next candle to show. The last fourth candle has very long shadows. There is no winner here anymore. There is an equal struggle going on here. And if there is no winner, it means that the price can go anywhere. If you look in the context of the previous candles, you can understand that buyers have lost strength, and sellers have become more confident. As we can see at the beginning of the candle formation, the sellers were able to lower the price significantly, after which the sellers got down to business. The price rose until the sellers pushed the price down again. In this candle, both buyers and sellers controlled the market for the same time. But we already understand that sellers are gaining momentum and a trend change is possible. The last candle is the well-known Doji, after which you will often observe a reversal. To better understand the movement, see the lower timeframes. There you will be able to look at the price under a microscope to understand who is still winning the market. Result Each candle contains information. A professional trader knows how to interpret each movement correctly. Maybe it's a correction? Or maybe it's a trend reversal? Using different timeframes, you can better understand who is dominating the market right now. Do not be lazy to analyze. Trade wisely! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
The strongest Fibonacci levels📈On each chart, you can see that the price bounces off the levels.📈 These levels can be different. Every trader knows about the levels. And many have heard about Fibonacci levels. Today we will talk about the strongest Fibonacci levels. -------0.382, 0.5, 0.618, 0.786------- There are many levels from which the price can react. But for me, these are the strongest ones. These levels are correction levels. The price will often stop when it reaches them. This is where the correction begins. How are these levels useful? If you keep an eye on these levels and use them, over time you will begin to understand where the price is likely to stop. If you hold some kind of trade, at these levels you will fix all or part of the profit. In addition, you can open positions from these levels with a high probability of success. 🗠 Chart 🗠 On the BTC chart, you can see the working out of the Fibonacci levels. After the momentum began, the price, after going some distance, began to adjust. On January 23, 2021, the correction ended, reaching the level of 0.618. The price increased by 122% in 86 days. Yes, at that moment it would be difficult to find this point, because to draw the Fibonacci grid, you need to see the entire momentum. But I just want you to clearly see where the price reacts. After the price has formed the top, you could see this level. When the price started a new correction from the top on April 11, 2021, you could plot the Fibonacci grid and see where the end of the correction is possible. On June 22, 2021, the price reached the level of 0.618 and bounced up by 138% in 142 days. If you use these levels in trading, then you most likely expected such a rebound and may even have opened a position. As you may have noticed, the price reaches the level several times and only then reverses. In addition, these levels do not assume that the price will turn sharply away from them, sometimes the price goes a little further than them. Consider these levels as zones from which the price can bounce. On January 23, 2021, the price formed a bottom and turned around the 0.5 level, which is also considered very strong. As we can see, the price dropped to the 0.5 level several more times before going further. There are many such examples on different timeframes. I advise you to also keep an eye on the 0.786 and 0.382 levels. They are marked on the chart and you can also often observe price reactions from them. These levels should not be used alone, it is just another indicator that you can use as a confirmation of your opinion. Do not try to trade on the basis of only Fibonacci levels. It is better to use several indicators at once, so the accuracy of the input will be much higher. Practice finding these levels on the chart and over time you will learn how to profitably use Fibonacci levels. Thanks.
Education
by UnknownUnicorn15614419
5
WHAT TRADING STRATEGY SHOULD YOU CHOOSE?Starting to trade manually, a Forex trader is faced with the question "What strategy should I use? Choosing the right strategy is not an easy thing, I'm quite often asked to suggest "some profitable system". There is no single and simple answer to this question, so how to choose a Forex trading strategy that is right for you? First of all, we have to decide when we are going to trade. After all, not everyone has 24 hours a day free time: some study, some work, etc. Of course, there are mobile terminals for smartphones that allow you to trade when you are away from home, but again, not every job allows you to use your gadget whenever you want. So, you have to decide at what time, in what mode you can trade and choose for yourself a suitable timeframe. Those who have an opportunity to check the charts only once a day in the evening, the daily charts will do. Well, if you have more time to trade in your schedule, you can use strategies to trade on timeframes H4, H1, M30 and below. You can even switch to ultra-fast trading using a tick chart, although it requires strong nerves and good reactions. There are also universal strategies that can be used on any timeframe. Let's assume that we have decided on the time to trade, so what strategy to use, because there are so many? First of all, it is worth noting that two different traders trading on the same system can have completely opposite results. What does this have to do with? First of all, with the emotional aspect: one person can be disciplined and the other not so disciplined. Trading in real time is often very different from testing a strategy on a history. Secondly, everyone unintentionally brings some slight changes to the system he or she is using: someone enters/exits a bit earlier/later, someone looks at the higher timeframes, and someone doesn't. Many add their own filters, trade only at certain times, etc. etc. The list goes on for a long time, but the point is that success with the strategy greatly depends on the qualities and experience of the trader. When choosing a strategy, just like when choosing a car or a life partner, you should be guided by your own preferences. When studying a particular system, ask yourself: do you like it? Will you feel comfortable and confident trading with this strategy? Because if you don't have confidence in the system, even after the first losing trade, which you can't do without in trading, you will start to doubt, miss signals, which have could lead to a profit, distort the rules of the trading strategy, etc. You have to feel confident in the system, it must fit your psychology: to hold one position for several days or to open/close many small orders during the same time. The strategy must also be consistent with your beliefs; the same martingale has many opponents, but also many adherents. Some believe that trading on minute charts is impossible, while others will prove the opposite. It is also possible when you take from the system only some elements that you like (some indicator or method of analysis) and thus, leaving the best, over time, you build your own strategy.
Education
by DeGRAM
8
💨 Elliott Wave Pattern: Triangle 🌊●●● 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (T) __________________________ ❗️❗️ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨 ● A triangle always subdivides into five waves. ● At least four waves among waves A , B , C , D and E are subdivided into a single zigzag . ● A triangle never has more than one complex subwave, in which case it is always a multiple zigzag or a triangle. ❗️ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Usually, wave C subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves. ● Usually, wave D subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves. ● Alternating waves of a triangle may be in Fibonacci proportion to each other by a ratio of 0.618 for contracting triangles and 1.618 for expanding triangles. For example, in a contracting triangle, look for wave C to equal 0.618 of wave A . ● A triangle can be wave 4 impuls, wave B of a zigzag , wave X of a double or second wave of an X of a triple zigzag , sub-wave C , D or E of a triangle and the last structure of a combination. __________________________ ●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Contr.T — CT) ❗️❗️ 𝙍𝙪𝙡𝙚𝙨 ● Wave C never moves beyond the end of wave A , wave D never moves beyond the end of wave B , and wave E never moves beyond the end of wave C . The result is that going forward in time, a line connecting the ends of waves B and D converges with a line connecting the ends of waves A and C . ● Waves A and B never subdivide into a triangle. ● In a running triangle, wave B should be no more than twice as long as wave A . (Q&A EWI) ❗️ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Sometimes one of the waves, usually wave C , D or E , subdivides into a contracting or barrier triangle. Often the effect is as if the entire triangle consisted of nine zigzags. ● About 60% of the time, wave B goes beyond the beyond the start of wave A . When this happens, the triangle is called a running triangle. __________________________ ●● 𝘽𝙖𝙧𝙧𝙞𝙚𝙧 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Barr.T — BT) ❗️❗️ 𝙍𝙪𝙡𝙚𝙨 ● Wave C never moves beyond the end of wave A , wave D never moves beyond the end of wave B , and wave E never moves beyond the end of wave C . The result is that going forward in time, a line connecting the ends of waves B and D converges with a line connecting the ends of waves A and C . ● Waves B and D end at essentially the same level. ● In a running triangle, wave B should be no more than twice as long as wave A . (Q&A EWI) ❗️ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● About 60% of the time, wave B goes beyond the beyond the start of wave A . When this happens, the triangle is called a running barrier triangle. ● When wave 5 follows a triangle, it is typically either a brief, rapid movement or an exceptionally long extension. ☝️ 𝙉𝙤𝙩𝙚𝙨 ● We have yet to observe a 9-wave barrier triangle, implying that this form may not extend. __________________________ ●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Exp .T — ET) ❗️❗️ 𝙍𝙪𝙡𝙚𝙨 ● Wave C , D and E each moves beyond the end of the preceding same-directional subwave. (The result is that going forward in time, a line connecting the ends of waves B and D diverges from a line connecting the ends of waves A and C .) ● Subwaves B , C and D each retrace at least 100 percent but no more than 150 percent of the preceding subwave. ❗️ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Subwaves B , C and D usually retrace 105 to 125 percent of the preceding subwave. ☝️ 𝙉𝙤𝙩𝙚𝙨 ● No subwave has yet been observed to subdivide into a triangle. __________________________ 🔗 References: Elliott Wave Principal 2005 RSWA: Q&A EWI
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
3
3 Simple Rules of Psychological Risk ManagementIn trading, psychological traps lie in wait for us at every corner, it is a revenge trade or an irrepressible attempt to win back. To help ourselves, we need an analogue of money management, only from the psychological point of view. It is created and adapted to ourselves, that's why I will describe my variant: 1.Stop trading for a few hours/days after 2-3 unsuccessful trades in a row. 2.Then 1-2 positive trades on a demo account or chart. 3.Return to real trading. The rules are simple. They are also extremely effective. But you have no idea how difficult it is for most people to follow them. Unbearably anxious to get back lost money What does a beginner who has lost money in three or four unsuccessful trades in a row do? Ask yourself, what will you do? You are hurt, mentally bad from the loss of money. You're already short of it, and you've lost even more. It's suffocating, it's such a nasty, disgusting feeling. How do you get rid of it, quickly? Immediately, right now? That's right it’s REVENGE TRADE. You start taking the trading as a game. Now tell me this: you've been wrong three times in a row. You don't understand the market phase. What makes you think your next trades will be successful? How do you know? You're not sure. You're just emotionally unhappy. The child inside you is crying and wants his toy back. You want the numbers back on the deposit. That's all your motivation. The only chance of salvation in this situation is to stop, to stop this psychological masochism and strictly forbid yourself to lose even more. If you can’t do this then the market has won. Professionals know how to deal with losses. Amateurs do not. Psychological Stop Loss. When the price goes against your forecast and reaches a certain level, the trade is closed. That's it. You are in a loss. Having lost a part of the capital, you have saved the rest. After 2-3 losses in a row, you need to stop. Most do not know how to do this. But this is what distinguishes a professional from a beginner. A pro knows that everyone loses in the market. Always. Even if you have 10 years’ experience, you still lose money, you just learn to accept it and use your skills to make more money than you lost. That's the job of the market professional to pull the mathematical expectation of the trades in your favor. Losses are always followed by profits, losses again, and so on in a circle. And if you are losing, it is important to make the losing streak stop. A psychological stop loss gives you that opportunity. After 2 to 3 failures in a row you: - Stop trading for at least a few hours. - Stay away from the chart for a couple of hours, to calm down emotionally - Take apart your mistakes and put them in a trader's diary. - After a few hours make some forecasts by the chart - and only after 1-2 successful predictions in a row you switch to the real capital. This is a universal, powerful rule. But it's hard to follow because you have to accept the loss. However, you have no chance of doing that if you haven't learned to accept the simple fact that you are not smarter than the market and losses will happen regularly. You can come up with your own variations, but stopping a trade (psychological stop loss) is a must, without exception. That's the whole point of "risk prevention" you stop when things get bad so they don't get worse. Much worse. For failure to follow these rules not only kills your capital, but also your faith in yourself. Risk and money management is the only thing that stands guard over your capital. The tight union of risk and money management will allow you to pacify your greed and emotions. Save your capital at all costs The saving of capital is the main, key task of a trader. And not at all to make money, as beginners think. It is impossible to do without the correct risk, money and time management. Following of the rules you have created yourself will lead to forgetting what it is like to lose your whole capital on emotions. After all, it's not difficult to stop losing money. You just need to get away from the chart and the terminal. It would seem, what there is difficult? But people who have confused speculative markets with casinos, keep on "winning back" and lose everything. Take care of your money. Use the tools that are designed to do the job. Only then you can make a qualitative leap forward and enjoy all the pleasures of compound interest when profit piles up on the capital you've saved, new profit piles up on it.
Education
by DeGRAM
4
CORRECT AND INCORRECT RISK MANAGEMENTHello everyone! Today I want to remind you about the risks! Risk management is very important in every trade , but most traders are too lazy to act according to the rules, so I decided to remind the basic rules. They look simple, but following them will greatly reduce losses and increase the win rate. Let's go! Correct calculation of possible losses Beginners are AFRAID to think about losses. And even more so to count them! But it must be done, otherwise you will lose much more than you should. Even BEFORE opening a position, you should know how much you are willing to lose under unfavorable conditions. Cut losses and let your profits grow It's strange, but people are ready to quickly fix a profit, but not fix a loss. Premature profit-taking is a normal phenomenon, as is overexposure of unprofitable transactions. why? Because traders are afraid of losing profits and hope that the loss will decrease and even turn into profit. Don't move your stop loss If you followed the first advice and calculated the stop loss, and after placing it you started moving, then you did not understand the essence! Stop loss is very important and it is important not to move it. In each trade, you risk a certain percentage and should not increase this indicator by moving the stop loss. Monitor your drawdowns It's unpleasant to lose, it's unpleasant to analyze your losses, but you have to do it. Without loss analysis, you will not get better as a trader. You have to keep track of losses, you have to analyze trades to improve your trading and not repeat mistakes. Opening positions without risk management Most traders don't think about risk at all, much less risk management. Most of them open trades without risk management and therefore most of them lose all their money. Trading without stop losses The fear of losses and the fear of being wrong leads to the fact that the trader does not set a stop loss. If you do not set a stop loss, know that the stop loss is still set, how? It's simple, in this case your stop loss will be equal to your capital. The position will close when your account is 0. Is it easier this way? Let the losses run Why don't traders close unprofitable positions? As mentioned above, it's all about hope . do you think that the price will sooner or later go in your direction? Perhaps. But by that time, most likely you will already be closed by margin call. Ignoring drawdowns and other important indicators of risk management Ignoring is a favorite thing of novchikov. They think that they have understood everything, they think that the market will spare them. Unfortunately, the market doesn't work that way. Risk management was invented long before you and will be and will be used after you. And all because it works and without it YOU CANNOT BECOME a SUCCESSFUL PROFESSIONAL TRADER . And then it's up to you who you want to be. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
18
QNT//USDT Simple rules of risk management and trading strategiesCoin in the Coinmarket: Quant This coin is for work as an example no more, now there are many similar ones with similar trading situations. On the chart showed the trend, the figures that are formed, the support / resistance levels. The figures show the potential entry points in case of a breakthrough or holding the support/resistance zones depending on your trading strategy. I cannot know how you trade or what strategy you use. You have to adapt my information to your trading strategy and first of all to your risk management. Some simple tips for your work: 1) I advise you not to be like everyone else and not to expect super target. The target must be adequate. The smaller you set target, the more you will earn at a distance. When the price of a coin is rising through most of the volume, it is advisable to work locally up to +80%, so you will always have money to re-buy from the profits. 2) Complex % (using volatility) does its job. It can be used (the principle) not only on one coin (accumulation), but also on several coins without paying attention to the name of the coin (to accumulate profits from coin to coin). They should not be very many. 3) Remember—the level is not a line, but a zone. It is rational to work with a grid of orders. 4) If possible, protect your profits with a trivial stop loss. But do not place it too close to the main intraday volatility zone. 5) Do not work with a large number of coins, there is no need, they are all the same. Their rise in price depends primarily on the general situation on the market and in the world. 6) Take into account the phases of the market, including local character. Creators of individual crypto-funds will not raise the price against the general trend if people are afraid to buy at that time. Playing against the trend is more the exception to the rule. There is a time to buy, a time to sell, and a time to watch. The third phase should take you the longest. Most people are only in phase one, regardless of the overall trend. Don't be like that… 7) Trade with your thought-out algorithms (trading strategy + risk management + experience), not with emotions. Those who lose money in the market—trade with emotions and ill-considered fantasies – desires. The basis of your profit is your trading strategy and compliance with risk management based on your experience Recommendations for trading strategies: 1) If you work in shorts, be sure to put stops and use adequate minimum leverage. Margin trading is a nightmare for an inexperienced and very greedy market participant. 2) When working in the spot on medium liquid coins, it is more rational to wait for a breakthrough in the downtrend and on the pullback after the momentum with a significant (important) buyer volume to enter the market. It's better to buy a bit more expensive, but with more confidence that the trend has changed. But, it is not a panacea, can after a breakthrough and holding the price a certain time—the continuation of the downtrend. Options for solving the problem: a) stop loss. b) Money cushion. c) The first and second options in place. 3) If you really want to buy some crypto-coin before the break of a trend (you are afraid of not having enough time or you "know the exact future”), then don't buy with all the amount allocated to this coin. The first purchase (especially before a trend break) should not have a big % of the main planned volume. a) If the price goes against your initial purchase and decreases—work martingale from the specified levels (in addition to the position) to average the average purchase. b) If the price rises strongly by impulse, and you bought a small planned amount, then there are two options in this case: 1) Wait for a pullback and on the pullback to finish (but still not for the whole amount, you should have at least 20-30% cache at any pumping). 2) the second option, if the price has strongly increased and there is no substantial rollback—work with the volume, that is, and the rest of the money allocated to similar coins, which have not had time to grow in price.
Education
by SpartaBTC
17
HOW TO IDENTIFY POTENTIAL SUPPORT AND RESISTANCE 1️⃣ Previous Lows and Highs The highs and lows act as potential support or resistance levels. The highs, in general, are extremely important because many market participants are constantly staring at them, entering the market either at or near the high. The human psychology is a funny to observe when the price goes against them. People do not take a loss and do not close a position but keep it and hold on, because psychologically it hurts less, than when you have closed the position and fully realized the money is lost. Accordingly, when the price returns to the previous maximum, those who bought at this level have an irresistible desire to close the position and get to zero, and begin to close their positions frantically. Those who bought below it usually want to take profits at the old maximum, because they understand it psychologically. Any prices higher than the maximum seem to be too expensive to potential buyers, and people get upset and leave such a market. When the price accelerates and falls to the previous minimum, these low prices begin to attract buyers. At the end of the day, they missed the first price return to that level and are now grateful for a new chance. For the same reason, sellers are extremely reluctant to part with their money when the price returns to the previous low, because they have seen a pullback from that low before! And so, they think, "why don't the price bounce again?Unfortunately, there's no way to tell in advance which level will be support and which will be resistance, and there's no way to say with certainty that it will work out the way we want it to. That's why any levels are just areas of interest where we expect a potential, temporary reversal. Accordingly, we will need help from other indicators, say oscillators. 2️⃣ The magic of round numbers Support and resistance love to form around round numbers. The reason is clear, all these 10, 50 and 100 are the simplest psychological markers on which traders justify their decisions. In the 1970s, the Dow Jones Industrial could not get broke the 1,000 level. Gold in the 1980s and mid-1990s was always hanging around the magic $400 level, and so on. The round level is a potential pivot point that we are interested in 3️⃣ Trend lines and moving averages are dynamic support and resistance levels A good trend line always reflects the underlying trend. One of the simplest rules for determining the significance of a line is how often price has touched or approached it. The more, the better. If price keeps coming back to a low, that level becomes a strong support zone. A similar rule works for trendlines and moving averages. Every time price returns to a trendline or rising moving average and bounces back from it, the line or moving average becomes a dynamic resistance level. The same works for downtrend lines and moving averages. Therefore, when price returns to an uptrend line, the buy option becomes interesting and the sell option becomes interesting if price touches the descending line or moving average. In this case, an excellent low-risk stop loss can be placed under the line or the sliding line. The principle is the same as if we were building a house and increased the thickness of the roof. The same principle works when the moving average and the trend line are at the same level, they trivially double the strength of the resistance level (or support, if the price goes up). 4️⃣ Emotional zones on the chart indicate possible support/resistance levels An emotional zone is a place on a chart where the price, going in a strong steady trend, encounters an abrupt, literally explosive reversal on the formation of the next candle/bar. Gaps are another example of emotional zones. Gaps are formed when buyers or sellers react so emotionally to news that an empty space aka a "gap" forms on the chart. 5️⃣ Proportional movements and pullbacks If we paraphrase one of the laws of dynamics, we find that for every action there is a counteraction. Prices formed in financial markets reflect nothing less than the psychology of the crowd in motion, so the laws of dynamics apply to them in full measure. As a result: It is the changing emotional state of the crowd that we often see in proportional price movements. Perhaps the most famous principle of proportionality is called the 50% rule. For instance, many bear markets, if followed through the DJIA index, lost half their value. In 1901-1903, 1907, 1919-1921, 1937-1938 markets fell by 46, 49, 47 and 50%, respectively. The first phase of the 1929-1932 bear market decline ended in October 1929 at 195, which was exactly half of the September high. Past the halfway mark often serves as a balancing act, often hinting at further price movement or an important reversal ahead.
Education
by DeGRAM
12
What is the Triple Top Pattern❓ 🟢What is the Triple Top Pattern? A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with three peaks above a support level/neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. The formation of this pattern is completed when the prices move back to the neckline after forming the third peak. When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed. 🟢Trading the Triple Top There are some rules when trading the Triple Top chart pattern. ✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend. ✔️Traders should spot if three rounding tops are forming. ✔️Traders should only enter the short position when the price breaks out from the support level or the neckline. 🟢Stop Loss In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern. 🟢Price Target The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below. Thank you for reading! Please give a Thumbs UP and Leave Comment👍🏻
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Bitcoin reached the bottom?Hello everyone! Today I want to analyze the Bitcoin chart to determine the long-term direction of price movement. I took a weekly chart from 2012 to 2017 (left) and from 2019 to the present (right). 2013 Divergence The first peak was formed on April 8, 2013 . The price at that moment reached $266 . It is from this point that we begin to monitor the price movement and find patterns. The oscillator readings also indicate the formation of a peak and so far there is nothing unusual - the chart and the price show the same indicators. The next peak was formed on November 25, 2013 . The peak was $1,242 . The price updated all the previous maxims, went up very much. And if you look at the oscillator graph, you can see that the readings of the graph do not correspond to the readings of the main graph, because the oscillator has not updated the previous maximum. This is a divergence, and a very strong one, because the price went above the first maxim by 360% ! And this distance was covered in 231 days . Fall After such a strong divergence, the price began a long decline, which lasted 630 days . The drop was equal to 88% , the price decreased almost 10 times! Bottom In September and October, many shouted that the bottom had been reached. Many opened positions and lost millions. As we can see, the price found the bottom only at the moment when the level from the first peak was reached. It was in this area that the formation of a double top began, which is a bullish pattern. Height After reaching a significant level of the first peak, the price began to grow aggressively. During the same 630 days , the price updated the maximum ($1,242) and showed an incredible 660% profit! As we know, the price went well above $1,242... 2019 Divergence On January 24, 2019 , the price formed the top of $13,870 , in addition, the oscillator also showed a new peak. The price and the indicator worked the same. After that, as many as two vertices were formed: the first vertex - April 12, 2021 64898$ ; the second vertex - November 8, 2021 68997$ . the price has risen from the first peak of 2019 by as much as 376% ! Both peaks, according to the oscillator, were lower than the first peak of January 24, 2019. This is the divergence. Fall After the last peak, the price is still in a strong downtrend. At the moment, the drop is more than 70% . The peak of 2019 has not yet been reached. It is now September and many analysts again claim that bitcoin has reached the bottom. Is it so? Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
INDEX:BTCUSD
by Lingrid
29
INTRADAY FOREX TRADINGGreetings everyone. Today we are going to talk about such a difficult topic as intraday forex trading. The tips below will be helpful to any intraday traders. 🔷 Don't chase the number of trades. Select the most obvious setups. You have opened a chart. There are no setups. You zoom in the picture, change the timeframes, looking for some reason to enter the market. Does this situation sound familiar? The fact that you, following the stereotype "intraday trading is a lot of deals, almost every minute", really want to open a trade, and then some more. Only this is not trading based on the system, but trading at random. What does it lead to? I think you've guessed it. Enter only when you see a clear, text book setup. Enter the market only when you see clear setups. Ignore confusing, unclear situations. Just wait for clear entry signals. 🔷 Limit the Number of Traded Instruments Intraday trading requires quick and clear actions. There is no time for long thinking. So, a large number of trading pairs will only confuse and distract you. You don't need 20 charts when trading intraday; limit your portfolio to two or three instruments, no more. In the beginning, I would advise to trade no more than one pair. 🔷 Risk no more than 1% of your deposit in each trade The psychological pressure is very high when trading intraday. It is very easy to get enraged by a couple of losing trades and start making more and more mistakes trying to win back. It is very hard to stay calm, risking 5-10% of deposit in every trade, because we open trades quite often during the day, and there is just no time to calm down, to assess the situation thoughtfully and without emotions. So, the best variant is to risk only a small part of your capital. That in case of a string of losses you will stay morally steady and be able to continue trading in order to recover these losses later. Try to aim not to earn much at first, but to earn steadily. 🔷 Monitor the news The release of important economic data can easily turn the market in either direction. And while this factor is neutralized by the timeframe size when trading on daily charts, in intraday trading you have to pay attention to news releases. Do not trade half an hour before and after the news release. If you see some kind of Price Action setup, but half an hour later the news comes out just wait. After the news release, if the market moves in the direction indicated by the setup, you can enter the market. But not before the news release. 🔷 Watch the higher timeframe Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected timeframe. And if you trade, for example, on H1, then it will be useful to look at the higher timeframe like H4. But we have to do it wisely considering the stage of the event on the higher timeframe. 🔷 Limit your profits / losses for 1 day First, never set yourself a goal: to make N points in one day. This leads to looking for non-existent points to enter the trade, feeling angry at the market, and in the end, there are just quiet days when it's hard to extract your N pips even in theory, let alone in practice. I'm talking specifically about setting limits. A kind of total take profit and stop loss on trades within one day. It may seem silly at first sight, but this approach helps a lot in maintaining the discipline which is so important in intraday trading. 🔷 Consider the daily volatility of the traded pair Let's assume you know that the average distance from the High point to the Low point of the daily candlestick for pair X is 100 pips. If your profit on a trade opened during intraday trading was about 70-80 pips, then it would be logical to close the position, because the potential for movement is almost exhausted. Likewise, if the price has already gone 70 pips in the trend, and a new pattern appears in the same direction, it would be quite stupid to open a new trade, because the price is about to "run out of fuel". 🔷 Do not leave the position for the next day A serious error of beginners is to leave open positions overnight. Think about it: why should the set up that you found intraday be valid tomorrow? The market has long forgotten about it. The traders have a lot of new data, signals, someone has opened positions on higher timeframes, and so on. So why should your position hold? By leaving open positions overnight you are simply playing roulette, trying your luck. And luck has no place in Forex. So, in order to avoid unnecessary losses, if at the end of the American session you have open positions, no matter what just close them.
Education
by DeGRAM
20
How to Read A Price Chart▶️ How Does the Market Move? At any given point in time, the market is likely to be moving in one of three directions: up, down, or sideways. Which direction is up? Which direction is down? And which way is sideways? When the market is moving up or down, it is said to be in a trend. When the market is moving sideways, it is typically in a period of consolidation. There are two types of trends that markets can be in: a bullish trend continuation trend or a bearish continuation trend. ▶️ Bullish Trend Continuation: Buyers can control price action when the market is in a bullish trend. This market identified by price action that has started at an Initial Low and continued to rise up, achieving a New High when it breaks and closes above the previous high. As the market retraces, price action will continue to fail to break and close below the most recent structure lows. This will create a Higher Low. As the process repeats itself, we see a pattern of new highs and higher lows being created. This pattern reflects the changing dynamics of the market, and provides insight into the market's future movements. When price action is presenting this type of pattern, trend continuation traders should look for opportunities to buy in the market. ▶️ Bearish Trend Continuation: A bearish trend continuation pattern indicates that the current downtrend is likely to continue. The sellers have taken control of the market and are looking to drive prices lower. This process is identified by price action starting at an initial high and then moving downward. This creates a new low as it breaks and closes below the previous structure lows when looking left. As the market pullbacks, price action fails to break and close above the most recent highs. This has created a Lower High. As the process repeats itself, we see a pattern of new levels being created, followed by decreases in the level of the old level. If you're a trend continuation trader, be on the lookout for selling opportunities in the market. ▶️ Consolidation: When the market is in a period of consolidation, it is difficult to tell whether it is heading in a bearish or bullish direction. Instead, price action is “choppy” as there is no clear directional movement. During the period of consolidation, trend continuation traders should be careful when looking for trading opportunities. ▶️ Support and Resistance After the formation of a New High, the market will retrace and create a higher low. When a movement occurs, the now-forming area of resistance is an indication that something important is happening. As price action pushes up from the newly created higher lows, that resistance level becomes the last line of defense for sellers to try and stop the buyers from rallying. Failure to break through the resistance level could indicate an uptrend period or reversal. If the price moves past the resistance level, this means that the trend is continuing. Remember the previous NH that turned into resistance after the retrace? Well, once this resistance level is broken, it becomes support. If price action retraces back down from our recent highs, this structure level should support the overall trend. ▶️ Forming Structure: To create a valid new structure high or low, we need to watch for the market to break and close above/below the previous structure. When a trend is bullish, the market can create a "Higher High" near or above the highest point reached in the trend. When a trend is bearish, the market can create a "Lower Low" by trading near or below the lowest point reached in the trend. In order to have a valid Higher High, Higher Close, we need a candlestick that breaks and closes above the previous candles' all-time highs. It is only after we have generated a new structure that is highly formed that we can consider it to be a valid one. If you are looking for a bearish trend, simply use the opposite. ▶️ Why Is Structure Important? Structure is important because it can help you predict where price action is likely to go. Previous support and resistance levels in the market act like a magnet, pulling price action towards them. When price action reaches high levels that have been hit multiple times in the past, it is considered to be a major structure level. It is important to pay attention to the main structural levels, because it is likely that the price action will be related to these levels. Smaller ebbs and flows of a trend can be detected inside minor structure levels. These levels serve as both support and resistance, although they lack the strength of the primary structure levels indicated above.
Education
by DeGRAM
8
COMMON CAUSES FOR OVERTRADING👋 Hello, fellow Forex traders! Overtrading is the most common problem, especially for traders trading on lower timeframes. It can arise for a number of reasons, so if you don't know what the main purpose of your trading is - i.e., what instruments you trade on, how you trade, what your trading strategy is, your motivations, personal styles and your trading and personal history I will give some explanations why traders become addicted to trading and give some possible solutions to this problem, hoping that among them you find your own solution. In order to determine when you become overly active, you need to have some basic criterion with which you can build off and thus be able to determine the amount of deviation from this value - it could be, for example, the number of trades made or your trading volume. Of course, there can be situations where a high trading frequency is acceptable, such as when markets are volatile and there are significantly more trading opportunities than usual. 1️⃣ Emotional Trading This happens when a trader trades forex, transfixed by feelings of excitement and pleasure, rather than for profit. Just like most people who play in a casino. If your goal is solely to have fun and get emotionally excited, then you must also realize that in the long run you are likely to develop an addiction to trading, and you are unlikely to profit. If you want to profit from your trading, then you need to change your goals, forget the fun and excitement, and move to a more professional and structured approach whose desired result would be trading productivity expressed in monetary or percentage terms. 2️⃣ Lack of trading strategy When a trader does not have a rule-based strategy and, therefore, any parameters for determining when to trade and when not to trade, any price movement in the market tempts him. In this situation traders are very prone to chase trends and often find themselves buying when the trend is down and selling when the trend is up. They get the impression as if they are doing everything in vain, as if the market is watching their actions. Do you know this situation? The most important thing you can focus on is developing your trading strategy, which clearly identifies whether there is a particular trading opportunity, fundamental data, technical analysis or a combination of both. This will help you become more selective in your trading. 3️⃣ Boredom In a quiet market where traders spend most of their time in front of their computer screens, there will be times when there are weak or no trading opportunities. It’s time when traders can get bored. These are natural periods in trading. For some traders, this can be very challenging especially for beginners, traders whose trading activity is based on emotional excitement, who work on enthusiasm. An important question you should ask yourself is the following: "Am I trading to relieve boredom or to make money?" 4️⃣ You need the money This is one of the worst situations in trading. It is a strong and powerful state, but it will not contribute to good trading overall if your decision-making is focused solely on making money and not on your trading strategy. Evaluating your financial needs and the effectiveness of your trading is very important. And you don't have to adjust your search for entry signals with what you don't have enough for beer. Any action you can take to alleviate your acute need for money will be a big step forward for you. 5️⃣ Enthusiasm in Trading Novice traders are full of enthusiasm. Traders who are entering new markets and using new trading methodologies also tend to be more enthusiastic and passionate. While this enthusiasm is undoubtedly a positive quality, there is also a dark side to it, seeing it as excessive enthusiasm and looking for any opportunity to open a trading position. Maintain your enthusiasm, but channel it into developing your trading strategy and discipline. If you have certain trading considerations, practice them on a simulator/demo account, where costs are obviously much lower. 6️⃣ Lack of Patience Traders who suffer from a lack of patience become addicted to trading because they will take opportunities that are not part of their trading strategy, and thus they will naturally make more trades than necessary. Develop patience in yourself, look for opportunities to analyze the markets, and take the time to just look at them rather than act on them. You might want to try practicing self-awareness to help identify and work with overcoming the desire to alleviate feelings of impatience. 7️⃣ Revenge Trading This is when traders have lost money in losing positions, making mistakes or accidentally opening positions, etc. and are usually eager to "get their money back". Despite the fact that the goal of such behavior/thought is positive, the subsequent behavior usually is not. Simply put, a desire to "get even". Traders chasing their losses will deviate from their trading strategy by opening positions that are probably profitable, whether they are consistent with their trading strategy or not, for, according to their psychological mindset, their goal now will be to make money, not to stick to their trading strategy. If you have incurred major losses or lost a large amount of money in a number of trades, you should generally take a time out. This timeout will allow you time to redirect your trading state and refocus, and most importantly, it will break the "losing money → feeling angry → wanting your money back" behavioral pattern. Time out breaks this behavioral pattern and allows you to refocus - use breathing and relaxation techniques or take a slow walk that will help you dilute your emotions and reduce your desire for revenge trading. 8️⃣ Fatigue When you are tired, physically or mentally, your brain does not have enough energy to function at full capacity, and with low "fuel" your work will have low levels of self-control. It is self-control, not a trading strategy, that is needed to engage the brake in your brain to stop your trading, and that requires a source of energy. When you are tired and your fuel level is low, your self-control will also be low, there will be more chances for excessive and unreasonable trading. Rest and glucose (which we get with food and sweets) are the two main factors in optimizing brain function on the energy level. When you trade, you must be firmly convinced that you are awake and full of energy. ✅ Thus, there are several reasons why traders overtrade, and I have provided you with some possible solutions to help you overcome them. Analyze which one might be most appropriate to your situation, test them out and write about them in the comments.
Education
by DeGRAM
8
Will Credit Suisse repeat the fate of Lehman Brothers?Information has appeared on the Internet that the Swiss bank Credit Suisse is highly unstable. Recall that Credit Suisse is the second largest Swiss financial conglomerate after UBS. This bank covers a large volume of the banking market around the world and if Credit Suisse has problems, the entire world economy will feel it. The bankruptcy of such a financial institution may also have a negative impact on the cryptocurrency market, since when banks liquidate unprofitable leverage positions, they primarily cut over risky assets, to which the crypt belongs. A Twitter user under the nickname Alex Good analyzed in detail the future financial results and compared the current situation at Credit Suisse with the bankruptcy of Lehman Brothers: twitter.com Some conclusions: 1. CDS (credit default swaps) - a credit instrument that allows you to hedge the risk of bankruptcy, Credit Suisse bank has exceeded 250 points, which is higher than the maximum of 2009 (the previous financial crisis) 2. Bonds nevertheless show a yield of only 6.4%, which is not significant and does not indicate bankruptcy (yet). 3. CET1 capital adequacy is an indicator of comparing a bank's capital with its risk-weighted assets to determine its ability to withstand financial difficulties. Credit Suisse has 13.5% (against 10% of Swiss claims, 8% of international claims), at the height of the crisis of 2008-2009 - this indicator was often 5% for banks. 4. The bank has several sources of influence on future financial results: A) money management fees for rich clients B) losses of an investment bank that lost substantially during the bankruptcy of Bill Hwang from Archegos C) penalties for losses from point B D) unprofitable fund "All Funds" 5. The fall in the price of Credit Suisse shares reflects the forecast of the financial result (-70% to profit) of the bank 6. The bank profits from the increase in rates in the markets, focused on large Chinese clients, after finishing work with the Russian market 7. Asian clients, despite falling markets, make 3 times more transactions than American clients. 8. Several transactions related to the issue of bonds can bring a significant loss to the bank, including a loss from investments in the European leverage index of loans, which generates up to $245M of loss. 9. Also on the horizon is the problem of losing $600M from holding the debt of Citrix. 10. The litigation concerns the corporate culture of Credit Suisse bank, an ex-employee managed to bring a loss of $1.27B to one of the clients and successfully hid it. And here the question arises - is Credit Suisse and the entire market in danger of repeating the history of Lehman and have we lost sight of the new black swan? An incident of this scale can bring a financial tsunami to the most risky markets of technology stocks and cryptocurrencies, and the current level of BTC $19K can become the level of $6K BTC in 2018 (it is worth recalling that at the beginning of 2018, bitcoin dropped to $6K, and when the whole Twitter thought that here it is super-large and from here only up - BTC abruptly went to the $3K area (just at the peak of the quantitative tightening program from the Fed). Another news came out today: Credit Suisse $CS has stepped up efforts in recent days to sell or reduce stakes in key companies as part of a planned restructuring to remake the bank – WSJ. By the way, the name of the chairman of the Board of directors of Credit Suisse - Axel P. Lehmann - is nothing but a smile of fate. What do you think about the future of the global economy? Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
by Lingrid
7
VET/BTC Expanding Triangle Clamping the price before the impulseLocal trend. Time frame 1 day. Expanding triangle. Coinmarketcap: VeChain Price squeeze during “market doubt”. A zone of price squeezing in a narrow range at the moment of uncertainty (doubt) of the market in general. Clamped by large orders in the required buy/sell range on liquid exchanges. The range is spammed with orders, basically a bot is triggered to make the trades visible and to “protect” the large orders (so as not to “grizzly”, but if they gnaw—"go down steam"). Small exchanges themselves will “pull up” in price over time. It works the same way (first of all) in pairs also to dollar, but the step is bigger (it is more difficult to hold a range). In pairs to bitcoin, it's easier to do due to smaller % of step (crypto price). The lower the price in satoshi, the more effective step clamping (range holding) is done. Unfortunately, here on the site it is impossible to show the order stack, it would be more obvious, the chart is a consequence, not the root cause. The meaning of the action—before a strong impulse up/down price movement, does not matter. You, unlike hamsters (those who are constantly losing money) cannot know exactly in which direction the market will locally go. The impulse (exit) is made under the general market trend (direction of movement). There are exceptions, but it is more about low liquid altcoins during the so-called “market window” (it is now). It helps a lot to move the price impulsively at such moments (decoupling): 1) stops (“market fuel”) 2) scalpers of course 3) oppositely tuned (in most cases, but not always) crowd (the main market participants) at the moment, that is the cloned behavior of people. This is what the expanding triangle area looks like on a line chart. This is what this "price squeeze" looks like locally. On a linear to understand the without the "market noise". The graph is a consequence of the sense of action in the glass.
by SpartaBTC
16
DOUBLE TOPS/BOTTOMS🔵The double top and double bottom are a pattern that can be used to find a counter-trend trading opportunity. This pattern can also be used as an entry technique in the markets. When this pattern is seen, the market is signaling to traders that a particular level of structure is important because price action is refusing to break and close above or below it. A double top and bottom are a sign that the market is failing to break through previous levels. When identifying a trend continuation pattern in bullish market, the trader is looking for a new high in a price action, followed by a pullback, followed by the market again hitting a new high. In cases of a double top, the market does not rally high enough or close above the previous top, indicating that the price action does not have strength to break through the previous level. 🔵 Filters Although it is possible to trade the double top and bottom successfully as mentioned above, I have added a few filters to eliminate some of the false signals and to be sure that I take only the high probability trades. There are many different filters that you can use when trading, but the main one I use is the Relative Strength Index (RSI). I look for overbought and oversold conditions as well as divergence to help me make decisions. When identifying this pattern, I first look for the RSI to be overbought for double top and oversold for double bottom. If this happens, then I have a valid trigger bar. After price action retests the trigger bar, I look for divergence. 🔵 Divergence: A divergence between the RSI and price is formed when the two send contradictory signals. If price is producing repeated high and lows, the RSI should also be trending up. Divergence occurs when price is producing higher highs and higher lows, yet the RSI shows a higher high, then a lower high. In the case of a double top, as price action gives us an initial high (trigger bar), followed by an equal high (the retest), the RSI usually prints a lower high, suggesting that the trend may be losing momentum. 🔔 The best place to put stop loss is above or below double top/bottom. As with any trading technique, your stops for this pattern will ultimately be up to you and I would advise that during your back testing you test out multiple areas, but here are some common rules that I use for this pattern. When placing a stop on a double top and bottom, I will take 1-2 ATR way and put it above or below the high and low of the pattern.
Education
by DeGRAM
8
Bites Of Trading Knowledge For New TOP Traders #16 (short read)Bites Of Trading Knowledge For New TOP Traders #16 ---------------------------------------------------------------- What is liquidity and what is its significance? - Liquidity refers to the availability of a product and ensures market participants have the ability to buy and sell easily. A liquid market increases the likelihood for finding a counterparty when entering or exiting a trade. What is volume a measurement of in trading? - Volume in trading refers to the total number of contracts exchanged between buyers and sellers of a market during trading hours over a given period. Higher trading volumes are considered more positive than lower trading volumes because they indicate the availability of orders in the market allowing better order execution during the trading session. What is open interest in the derivatives market? - Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. Open interest equals the total number of bought or sold contracts, not the total of both added together. Increasing open interest represents new or additional money coming into the market while decreasing open interest indicates money flowing out of the market. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS - Common application of financial market instruments for managing risk and opportunities. Diversification: Futures Spreads with Currency Futures A futures spread is usually created when one futures contract is sold simultaneously to the buying of a second related futures contract in order to capitalize on a discrepancy in price. Currency futures spreads combine the use of different currencies usually paired to the U.S. Dollar with the same contract month to express a relationship between the two currencies usually taking into account their strength or weakness relative to each other. For example, the Singapore Dollar (USDSGD) may be seen to be strengthening (price movement is downward) while the Chinese Yuan (USDCNY) may be seen as being very weak (price movement is upward). To take advantage of this observation, we would want to buy Singapore Dollar (sell the USDCNY future) and sell the Chinese Yuan (buy the USDCNY future) and as a result eliminate the U.S. Dollar. However, it must be noted that not all currencies are quoted in the same way like the Australian Dollar futures is quoted “AUDUSD”. It means then that to take advantage of a strong Australian Dollar and a weak Chinese Yuan quoted as “USDCNY”, an investor would need to buy both the AUDUSD future and the USDCNY future. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
HOW TO SPOT A REVERSALLet's see how the characteristics of a reversal and a pullback differ. 📈 A pullback: - Usually occurs after a strong price movement; - It does not last long; - The fundamental (macroeconomic) data does not change; - In an uptrend there are hints of its continuation, similarly for a downtrend. 📉 Reversal: - Can occur at any time; - Long term; - The fundamental data is changing it is often the reason for the reversal; - In an uptrend there is no hint to its continuation, the buyers' strength decreases (and vice versa for a downtrend). Unfortunately, there are of course no guaranteed methods to determine where there is a pullback and where there is a trend. I would buy this one for any money, and everyone would buy it. That is why it is determined by a number of different instruments, from a simple multiframe analysis and trend lines to various systems. 🔴 Reversal: Fibonacci Levels Although I myself am not a fan of Fibonacci levels and its many counterparts, it seems that everyone uses them but me. Let's listen to the practitioners of this tool, since the market likes it so much. According to them, statistically, pullbacks most often occur at levels 38.2%, 50% and 61.8% those Fibonacci retracement levels. If price broke through those levels, it could very well be a trend reversal. But technical analysis is not science, so we will always deal with probabilities. In the case of Fibonacci, pullbacks are identified like this: As you can see, each pullback tests a certain level before reversing further along the trend. And this repeats itself. But if price were to confidently break through these levels one after the other, that would indicate a long-term reversal. 🔴 Reversal: Pivot Points Another method of determining the reversal is the use of the pivot points. In an uptrend, the lower support points (S1, S2 and S3) will act as conventional levels, breakout of which can indicate a change of trend, but not a reversal. And vice versa for resistance points (R1, R2 and R3). Breakdown of these levels is another hint to a reversal. 🔴 Reversal: Trend Lines Trend lines are generally an elementary method of determining if a trend has changed or if it is a pullback. If you combine trend lines with candlestick combinations and price action patterns, you can get really impressive results. 🔴 Reversal: Price Highs and Lows Finally, my favorite method for identifying pullbacks and reversals is to use the basis of Dow theory: price lows and highs. The simplest technique for this is described by Martin Pring. Pring gives the simplest explanation that improves the basic understanding of any market. 📊 Market condition of price As you can see, using simple techniques, we can build up practical decision options for determining whether price is reversing or going further along the trend. Trends, pullbacks, and consolidation are the three pillars of any market. I also advise you to be extremely attentive to candlestick combinations in reversal zones, whether it be trend lines , pivots , or other tools. Study them. Keep screenshots. Look for them on the history. Do not be lazy. This is the only way to learn, over time, to better identify price behavior. At some point, you will feel it on an intuitive level. But this is just a continuation of your trading practice, which has moved, after many months of practice, to a new level. Experienced drivers don't think about when to squeeze the clutch and when to change the gear stick. Not only that: they can even feel the dimensions of the car. Seemingly unbelievable thing: you are inside and you feel that there is 5 cm from the bumper to the sidewalk. In trading, you just have to reach a similar level of intuitive perception based on hours of theory and practice. Therefore, the specific instrument is not so important. Much more relevant is your level of proficiency in it.
Education
by DeGRAM
6