Stochastic Trading Indicator 📉📉📉📉 The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. The indicator can range from 0 to 100. The closing price tends to close near the high in an uptrend and near the low in a downtrend.
📉 The stochastic indicator is a two-line indicator that can be applied to any chart. It fluctuates between 0 and 100. The indicator shows how the current price compares to the highest and lowest price levels over a predetermined past period.
📉 How do you use a stochastic indicator?
How to use the Stochastic indicator and “predict” market turning points
If the price is above 200-period moving average (MA), then look for long setups when Stochastic is oversold.
If the price is below 200-period moving average (MA), then look for short setups when Stochastic is overbought.
📉 The Bottom Line. While relative strength index was designed to measure the speed of price movements, the stochastic oscillator formula works best when the market is trading in consistent ranges. Generally speaking, RSI is more useful in trending markets, and stochastics are more useful in sideways or choppy markets.
What do you think ? Comment below..
US500SHORT
Hammer Candlestick Pattern 📉📉📉📉 A hammer candlestick is a technical trading pattern that resembles a “T” whereby the price trend of a security will fall below its opening price, illustrating a long lower shadow, and then consequently reverse and close near its opening. Hammer candlestick patterns occur after a security has fallen in price, typically over three trading days. They are often considered signals for a reversal pattern.
📉 The hammer candlestick is a bullish trading pattern that may indicate that a stock or other assets like currency pairs/crypto coins has reached its bottom, and is positioned for trend reversal
📉 According to most textbooks: Whenever you spot a Hammer candlestick pattern, you should go long because the market is about to reverse higher. And that's what you do. The price immediately reverses and you get stopped out for a loss.
📉 Hammer candlestick is a unique candlestick pattern that indicates a potential trend reversal. Since it forms in a downtrend, traders associate the hammer with the return of bullish trend in the market. It is a short green candle with long lower shadow, which signifies lower price rejection by the market.
Do you use hammer candlestick pattern in your analysis ? What do you think about it ?
VIX LONGS - RISK OFF ✅✅✅✅ Expecting bullish price action on VIX from a technical perspective as price made a huge move to the downside and rejected the 20$ price area with a bullish GAP this could potentially sign a market reversal or the start of the retracement move within the bearish structure.
I think in the upcoming days we will see the volatility going to the ,,moon,, during un-succesfull talks between Rusia-Ukraine. RISK OFF in the markets
What do you think ? Where we go next from there?
US500 SHORTS ACTIVE 📉📉📉📉 Expecting bearish price action on SP as price takes out weekly highs,we have a lot of liquidity that has been build on the retail trendline + the VIX should rise meaning we could see a potential flow into RISK OFF assets.
What do you think ? Comment below..
VIX LONGS RETRACEMENT MOVE ✅✅✅✅ Expecting bullish price action on VIX, as price should make a retracement move back into 25-27 area. We opened bullish on the pre-market meaning there was a lot of bullish pressure in the asian session. VIX BULLISH means we could see a selloff move on indexes, i will keep you updated with that as well.
What do you think ? Where we go next ?
Volume Trading Indicator 📉📉📉✅ Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move. The higher the volume during a price move, the more significant the move and the lower the volume during a price move, the less significant the move.
✅ Volume indicators are technical tools to evaluate a security's bull and bear power. Most look specifically at buying vs. selling pressure to determine which side is in control of price action. Others attempt to identify emotions that are moving the security at a particular time
✅ A high positive multiplier with high volume indicates strong buying pressure which pushes the indicator higher. On the other hand, a low negative number with high volume indicates strong selling pressure which pushes the indicator lower.
✅ Down volume indicates bearish trading, while up volume indicates bullish trading. If the price of a security falls, but only on low volume, there may be other factors at work aside from a true bear turn
Do you use this trading indicator ?
ENGULFING CANDLESTICK PATTERN 📉📉📉✅ The pattern has greater reliability when the open price of the engulfing candle is well above the close of the first candle, and when the close of the engulfing candle is well below the open of the first candle.
✅ The bullish engulfing candle signals reversal of a downtrend and indicates a rise in buying pressure when it appears at the bottom of a downtrend. The bearish engulfing signals reversal of the uptrend and indicates fall in prices by the sellers who exert the selling pressure when it appears at the top of an uptrend
✅ The bearish engulfing candle occurs when the real body of a down candle completely envelops the real body of the prior up candle. A bullish engulfing candle occurs when the real body of an up candle completely envelops the real body of the prior down candle.
✅ How accurate is bullish engulfing?
The bullish engulfing candlestick acts as a bullish reversal 63% of the time, which is respectable, ranking 22 where 1 is best out of 103 candle patterns
✅ What is bullish engulfing pattern?
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick is followed the next day by a large white candlestick, the body of which completely overlaps or engulfs the body of the previous day's candlestick.
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⚓US500 4510.4 SHORT IDEA + 0.94 % * PRICE ACTION & STRUCTUREHELLO EVERYONE
HOPE EVERYONE IS DOING GOOD HAVING A GOOD ONE.
HERE'S A LOOK AT POSSIBLE SCENARIOS THAT COULD PLAY OUT IN THIS WEEK ON US 500.
The index opened the week with a bullish rally since it broke out of that descending channel.
* The index is still strongly bullish looking at momentum to the up side, but what goes up must come down the question is where.
* Have a couple of levels to look at with interest ahead, will be looking at reversal patterns at this levels.
* Break above of structure puts the second entry into play.
- looking for reversals with the bears see below.
lets see how it goes.
IF THIS IDEA ASSISTS IN ANY OR IF YOU LIKE THIS ONE
SMASH THAT LIKE BUTTON & LEAVE A COMMENT.
ALWAYS APPRECIATED
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* Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT.
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| * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - SWING TRADE
AMD Trading Pattern 📉📉📉📈 To increase your chance of succeding in the financial markets as a trader you should understand what the market phases is and the logic behind this concept.
🔰 Accumulation - tipically accumulation is a range area where price forms equal highs and lows, from an institutional perspective we can see this zone as a clash between sellers and buyers usually after a accumulation move price will move sharply into a direction
🔰 Manipulation - manipulation aka the FAKE move will be the first move that exists the range in 80% of the situations the first move is just a move to trap retailers go into a certain direction and then quickly reverses, usually the manipulation happens during LN open (London) NY open ( New York ) NYSE open ( Nasdaq ) and the accumulation move forms during asian session especially for fx pairs
🔰 Distribution - distribution is the moment when price takes the opposite direction of the MANIPULATION it is offten called the TRUE DIRECTION of the DAY where its generally raided by institutions because retail traders were trapped in the manipulation phase.
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Inside Bar Candlestick Pattern📉📉📉We will cover the following today:
Inside Bar (Inside Day)
Inside Days
✅ Inside Days are a daily pattern involving two daily candles, we have a day of trade, also known as the ‘mother candle’ and then the following day trades the whole day within the range of the previous day. This is a two-day bias suggesting a potential reversal. A great way to play these sorts of biases is to pre-empt the failure of this reversal, as well as playing the success of the inside day, so what does this look like? Let’s take a look at an example below.
✅ What is an inside bar?
The inside bar is a popular reversal/continuation candle formation that only requires two candles to present itself. This pattern is a direct play on short-term market sentiment looking to enter before the 'big moves' that may take place in the market.
✅ Is an inside bar bullish?
First, unlike other candlestick patterns, inside bars are usually not distinguished as bullish and bearish by their look or color of the body itself, but rather by the location they are at and other peripheral developments
✅ An “inside bar” pattern is a two-bar price action trading strategy in which the inside bar is smaller and within the high to low range of the prior bar, i.e. the high is lower than the previous bar's high, and the low is higher than the previous bar's low.
📈 HOW TO IDENTIFY AN INSIDE BAR ON FOREX CHARTS
The following steps are used when identifying the inside bar pattern on forex charts:
Identify a preceding trend using price action/technical indicators
Locate inside bar pattern whereby the inside bar is engulfed fully by the preceding candle high and low
Trade with price and time, SPX forecastI just combined both EW and PA for forecasting SPX index.
both are reflecting price and emotions of bulls and bears(price action traders always look for opportunity to trade in either way)
But Elliotticians will trade in the main direction of the trend(down) .
Since trading in options(buying), is a premium game(theta erosion),better to enter on 9th march
Market Orders 📉📉📉🎯 In the financial market the orders are on two categories.
✅ Market Execution orders LONG - BUY SHORT - SELL meaning that you are ok with the price on the certain asset and you would like to short or long it on the other side there is
✅ Pending Orders - meaning you are not ok with the actual price and you would like to buy/sell it later in time I use pending orders when i am out of my trading office so i dont miss trading opportunities
Power of Consistency 📉📉📉Consistency Power
🔰 Don't focus on short term results when trading, it's a marathon not a sprint. You can't become elite traders overnight
🔰 Don't care about short term results and single trade outcome, only look at the weekly,monthly results as they are not random as daily results,a single trade means nothing dont be anxious and change something in your system only if you have more than 100 trades journaled so you know what works and what doesn't
🔰 Don't try to hit home runs aka BIG RETURNS OVERNIGHT it's a gambler short term thinking and their account have zero durability overtime
🔰 Focus on risk management and improve your edge over the market on a daily basis both technical and mental/emotional
LONG TERM over SHORT TERM ✅
The 2 Different Market Condition 💰💰💰💰 Balanced Market Occurs
1)Before any bigger economic events, news are expected (e.g RBI policy announcement, FED meeting ..etc)
2)Consolidation in the market after the uptrend or downtrend.
3)Low Participation from the Other timeframe players or Institutional players (Christmas & New Year holiday season)
4)Lack of liquidity(both buy side and sell side) in the market.
The result of this price rotational process is the discovery of prices that are acceptable to both the buyers and the sellers.
💰 Imbalanced Market : It represents a trending market (uptrend or downtrend). Imbalanced market shows the conviction of other timeframe players. The auction is said to be one sided or directional where there are either more Buyers than Sellers or more Sellers than Buyers depending on the direction of price.
Imbalance of buyers will drive the prices higher till the buyers exhausted and the sellers take control of the market. And the Imbalance of Sellers drives the market lower till the sellers get exhausted and the buyers take control of the market.
💰 Imbalanced Market Occurs When
1)Major economic event days (RBI rate decision day, Election Results Day, GDP Announcements…etc)
2)Major catastrophic events.
3)Opening Gap Up or Gap Down days due to major positive or negative news impact.
4)Strong Global Markets Sentiment.
Healthy Mind 📉📉📉🧠 How to keep Mind Healthy ?
🎯 Don't go against the Markets
Always and always learn from your mistakes & try to never make that again.
🎯 Be Humble
Patient and resist the ilussion that you somehow possess the alchimist's stone of trading, head down and work hard, cocky attitude will ruin your trading career
How do you stay with a healthy mind in the markets ?
Volume Trading Indicator ✅✅✅✅ Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move. The higher the volume during a price move, the more significant the move and the lower the volume during a price move, the less significant the move.
✅ Volume indicators are technical tools to evaluate a security's bull and bear power. Most look specifically at buying vs. selling pressure to determine which side is in control of price action. Others attempt to identify emotions that are moving the security at a particular time.
✅ A high positive multiplier with high volume indicates strong buying pressure which pushes the indicator higher. On the other hand, a low negative number with high volume indicates strong selling pressure which pushes the indicator lower.
✅ Down volume indicates bearish trading, while up volume indicates bullish trading. If the price of a security falls, but only on low volume, there may be other factors at work aside from a true bear turn
Do you use Volume Trading Indicator ?
S&P500: Selling On A Pullback 8-3-22 S&P 500 – Cash: Selling A Pullback Into The Range Of Bearish Fakey Setup
Price Action: There is no new price action signal to note at this time.
Price moved lower from the recent Bearish Fakey Setup that had formed, mid-last week.
Price broke and closed under the 4245 – 4270 prior key support area.
Price briefly moved higher from the prior Bullish Pin Bar signal that had formed, over a week ago (We did not consider trading this signal as it had formed just under the short-term resistance area and against the recent short-term Bearish trend).
Potential Trade Idea 1: For more aggressive traders, we are considering selling if price pulls back to within the range of the recent Bearish Fakey setup, with risk management above the Fakey Bar.
Potential Trade Idea 2: We are still considering selling on a retracement higher and only after clear price action signal, whilst price remains below the 4484 – 4494 resistance area.
US500 LONGS 📉📉📉📈 Expecting bullish price action on US500 as price takes out weekly lows, and has a lot of liquidity that has been build on the trendline. Looks to perfect to be true, a bullish closure above weekly low will be perfect for me to confirm the entry.
What do you think ?
EURAUD SHORTS 📉📉📉📉 I provide you in this example the market sentiment on EURAUD, during the last 2 weeks the RETAIL HEARD was LONG on this pair, i am sure they tried to catch the BOTTOM there.
A lesson for you never trade in the direction of the retail heard if you want to have a high probability trade.
If the retail heard is LONG on EURAUD you have to look only for shorts and avoid LONGS, very simple and good lesson to know.
Do you trade with market sentiment ?
Three White Soldiers Candlestick ✅✅✅Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high.
🎯 To identify the three white soldiers pattern, look for three consecutive green or white candlesticks. Each must open and close progressively higher than the first. The candlesticks should have big bodies and very small (or no) wicks. As mentioned, you are likely to see the pattern at the bottom of a downtrend.
✅ What Do Three White Soldiers Tell You?
The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji.
✅ Limitations of Using Three White Soldiers
Three white soldiers can also appear during periods of consolidation, which is an easy way to get trapped in a continuation of the existing trend rather than a reversal. One of the key things to watch is the volume supporting the formation of three white soldiers. Any pattern on low volume is suspect because it is the market action of the few rather than the many.
To combat the limitation of visual patterns, traders use the three white soldiers and other such candlestick patterns in conjunction with other technical indicators like trendlines, moving averages and bands. For example, traders may look for areas of upcoming resistance before initiating a long position or look at the level of volume on the breakout to confirm that there was a high amount of dollar volume transacting. If the pattern occurred on low volume with near-term resistance, traders may wait until there is further confirmation of a breakout to initiate a long position.
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