Wave Analysis
Pattern Recognition Series Episode 1: GOLDHere's an in-depth look at Volume Spread Analysis.
We use tape reading to gauge future price movements based on the magnitude of previous price movements. This helps us determine the driving force of the market and position ourselves on the same side as the large operators within any market.
The key is understanding what VSA allows us to see.
Volume = activity therefore Ultra High Volume (UHV) shows the activity of not only the public but also the Large Operators of that particular asset.
This video shows that the demand in the upward trend channel diminished while the supply increased giving me the confidence to trade in alignment with the largest of the two opposing forces.
By use of Bar by Bar Volume Spread analysis the operator then uses each bar to quantify the upcoming price movement.
Climactic volume is a sign that prices are likely to reverse and that a stopping action has occurred. When analyzing UHV you want to assess the Effort (volume) and the Result(price).
Remember the markets abide by the laws of Supply and Demand, Effort vs Result, Cause and Effect, and the Law of Attraction.
I hope you guys enjoy the video!
Happy Trading!
-J Hair
Transition of Support to Resistance and Vice Versa(Video 6 of 6)During these 6 videos, we explored and analyzed the prevalent trends in the market and how upward and downward trends develop. We introduced methods on how to work with sideways trends.
Additionally, we discussed two scenarios that can enhance the probability of new trend formation.Finally, in this video, we introduced support and resistance zones to enhance your understanding of the formation of market highs and lows and analyzed their relationship with the existing trends.
Thanks for watching!
Video series on the Introduction to Market Structure (Part 5). In this video series, we provide an overview of the formation of highs and lows, and how trends develop in the market. We also introduce and analyze support and resistance zones within charts. Additionally, we introduce a factor that can reinforce the likelihood of forming uptrends and downtrends on the charts.
Video series on the Introduction to Market Structure (Part 4)In this video series, we provide an overview of the formation of highs and lows, and how trends develop in the market. We also introduce and analyze support and resistance zones within charts. Additionally, we introduce a factor that can reinforce the likelihood of forming uptrends and downtrends on the charts.
Video series on the Introduction to Market Structure (Part 3)In this video series, we provide an overview of the formation of highs and lows, and how trends develop in the market. We also introduce and analyze support and resistance zones within charts. Additionally, we introduce a factor that can reinforce the likelihood of forming uptrends and downtrends on the charts.
Video series on the Introduction to Market Structure (Part 2)In this video series, we provide an overview of the formation of highs and lows, and how trends develop in the market. We also introduce and analyze support and resistance zones within charts. Additionally, we introduce a factor that can reinforce the likelihood of forming uptrends and downtrends on the charts.
Video series on the Introduction to Market Structure (Part 1)In this video series, we provide an overview of the formation of highs and lows, and how trends develop in the market. We also introduce and analyze support and resistance zones within charts. Additionally, we introduce a factor that can reinforce the likelihood of forming uptrends and downtrends on the charts.
Mastering Elliott Waves: Key Rules You Can't IgnoreEducational Idea : Understanding Key Principles of Elliott Wave Theory
Introduction
Elliott Wave Theory is a powerful tool used by traders to analyze market cycles and forecast future price movements. Understanding its core principles can help you make more informed trading decisions. In this article, we will delve into three fundamental principles of Elliott Wave Theory that cannot be violated. Remember, this video is purely for educational purposes and not intended as trading advice or tips.
1. Wave 2 Can Never Retrace More Than 100% of Wave 1
The first principle of Elliott Wave Theory is that Wave 2 can never retrace more than 100% of Wave 1. In other words, Wave 2 cannot go below the starting point of Wave 1. If it does, it invalidates the wave count and suggests that the initial impulse wave (Wave 1) was incorrectly identified. This rule ensures that Wave 2 is a correction wave within the larger trend and not a reversal of the trend itself.
Example Illustration:
- If Wave 1 starts at 100 and peaks at 150, Wave 2 can retrace to any level above 100, but not below it.
2. Wave 3 Can Never Be the Shortest Among All Three Impulse Waves (1-3-5)
The second principle states that Wave 3 can never be the shortest among the three impulse waves (Waves 1, 3, and 5). Typically, Wave 3 is the longest and most powerful wave, characterized by strong momentum and volume. If you find that Wave 3 is shorter than either Wave 1 or Wave 5, the wave count is incorrect, and you need to re-evaluate your analysis.
Example Illustration:
- If Wave 1 is 50 points and Wave 3 is only 30 points, while Wave 5 is 40 points, this violates the rule as Wave 3 is the shortest.
3. Wave 4 Cannot Enter the Territory of Wave 1 (Except in Diagonals & Triangles)
The third principle asserts that Wave 4 cannot enter the price territory of Wave 1. This means that the lowest point of Wave 4 should not overlap the highest point of Wave 1. An exception to this rule occurs in diagonal and triangle patterns, where some overlap is permissible. This rule helps maintain the integrity of the impulse wave structure.
Example Illustration:
- If Wave 1 peaks at $150 and Wave 4 retraces to $145, this overlaps and invalidates the wave count unless the pattern is a diagonal or triangle.
Conclusion
By following these principles, you can ensure that your Elliott Wave analysis remains robust and accurate, helping you navigate the complexities of the financial markets with greater confidence. Understanding and applying these key principles of Elliott Wave Theory can significantly enhance your market analysis and trading strategies. Keep these rules in mind as you study and apply Elliott Wave Theory in your trading journey. Remember, this video is purely for educational purposes and not any kind of trading advisory or tips.
This content is for educational purposes only and should not be considered as financial advice. Always do your own research before making any trading decisions.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Feel free to share your thoughts or questions in the comments below. Happy trading!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
PART 4 67years back in timeWe have previously established the close relationship between the 1899-1929 period and the 1997-2028 market cycle. Various arithmetic sequences and planetary cycles that influenced the price movement during the 1899-1929 cycle are true to happen in the current cycle. As we saw in this video, the price movements already recorded obeyed the same laws as of the 1899-1929 period and would continue to do same..
Check back for PART 5 as we look at the small timeframe and possible ways we can trade the market.
Swing Trading - Using Market Side and Opening Range FiltersSwing trading is a short-term strategy where traders aim to capitalise on small price movements within a financial instrument over a specific period. The goal is to capture gains from these "swings" in the market rather than focusing on long-term trends.
In this example, I am trading the GBP/JPY using the market side and the session opening range as filters to determine high probability trading direction:
Market Side: This helps to identify the overall trend or sentiment in the market.
Session Opening Range: This is the price range between the high and low during the initial period after the market opens. It is used to set reference points for potential entry and exit levels.
Here's a simple breakdown:
Below the Market Side and Opening Range: If the price is below both the market side indicator and the opening range, this signals a bearish sentiment, and you look for selling opportunities.
Above the Market Side and Opening Range: If the price is above both the market side indicator and the opening range, this indicates a bullish sentiment, and you look for buying opportunities.
I use the Charts247_WT Custom Indicator Candles for entries and exits, which provide specific signals to enter trades and exit existing positions. This combination of trend filters and entry signals helps improve your trades' accuracy and timing, aligning your actions with the broader market context.
The Mechanics Of Trading - Part XII - 6-4-24 FlagsPart XII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part XI - SPY Flagging ExamplePart XI
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part X - EOD 2 Min ES RecapPart X - End Of Day 2 Min ES Recap
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IX - ES Breakdown To SupportPart IX
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VIII - Learning PatiencePart VIII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.