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Downtrend

📊 What are Swing Points?📍Types of Swing Points A swing point on your chart is simply a turning point for price in the past, either to create a considerable pullback into an established trend, or to reverse it altogether. When a turning point creates a mere pullback it can be classified as a minor swing point. When it creates the base to reverse a trend, it is classified as a major swing point. 📍Why are swing high and swing low formed? A swing high and swing low is formed due to what is known as support and resistance. The technical explanation for support and resistance is as follows: 🔹 A support forms for the price when you notice that there are more buyers than sellers at a certain price. The demand for the asset or the stock overwhelms the supply and thus pushes price higher. 🔹 A resistance forms for price when you notice more sellers than buyers at the price level. In this case, price fails to move higher and therefore declines. Swing points are key levels we use in TA to identify potential trend reversals and support/resistance areas in the markets. Swing highs represent peaks in price movement , while swing lows represent valleys or troughs. You can find swing points by studying price charts, identifying peaks and valleys, and plotting them on the chart. By connecting swing points with trendlines, you can analyze patterns and assess potential support and resistance levels. Combining swing points with other technical indicators can enhance trading decisions. It's important to consider different time frames and use swing points as part of a comprehensive analysis approach. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
Stock Market Logic Series #5We are going to discuss the concept of FAIR price and how it is related to momentum. This is also a missing piece of the puzzle related to the guppy moving averages. Which never explains the logic of fair price behind the moving averages. Just saying "traders are selling" or "investors are buying" without giving you the psychology behind the buying and selling. The psychology behind buying and selling: When you want something, you are willing to pay a premium on it, just to get it. When you don't want something, you are willing to give a discount on it, just to get rid of it. The Significance of Moving Averages in Stock Market Trading In stock market trading, moving averages play a significant role in determining the fair price of a stock. Fast moving averages represent the short-term fair price, while slow moving averages indicate the long-term fair price. These moving averages serve as important indicators for traders, helping them understand the price trends and make informed decisions. Trading Above the Fair Price: Strong Buyer Interest When trading is above the fair price, it signifies that buyers are highly interested in acquiring the stock, even if it means paying above the fair price. This increased buying pressure drives the price up, as individuals value the stock and are willing to pay a premium to secure it. This scenario presents an opportunity for traders to benefit from price appreciation. Go with momentum. Buying Opportunities: Trading Below the Moving Average Conversely, when the price of a stock falls below the moving average, it indicates a potential opportunity for investor buyers. In this situation, the previous owner of the stock may become anxious to sell and is willing to do so at a price below the fair value. This creates a favorable buying opportunity for investors, as the stock can be acquired at a discount or fair price. Trading Below the Fair Price: Anxious Sellers and Discounted Stocks Trading below the fair price implies that the old buyer is motivated to sell the stock quickly. They may be eager to get rid of their position, leading them to offer the stock at a price lower than its fair value. For trading purposes, this means momentum is down, and you should look for an opportunity to sell. If the price is dramatically traded below the fair price (away from MA) this could FLAG you that a trend reversal may just happens. Remember the psychology of buying and selling. Ask yourself, if someone wants it, how come this price is so cheap? Unfair Prices in a Downtrend: Waiting for Confirmation of a Decline Moreover, when you are in a downtrend, when the price is above the moving average, it indicates that the stock is trading at an unfair price. However, if you have insights or analysis suggesting that the price will decline in the future, it may be wise to wait for the short-term trend to shift. By observing the stock's movement and waiting for the price to fall below the yellow fair price (moving average), traders can confirm that selling is indeed happening before making their move. Getting in too early, with the wrong trading technique, will get you hurt. Assessing Market Conditions: Understanding Fair Prices and Moving Averages By understanding the dynamics of fair prices and their relationship with moving averages, traders can better assess market conditions. They can identify when prices deviate from their fair value and use this knowledge to their advantage. This insight allows traders to make informed decisions based on price trends, helping them maximize potential profits and minimize risks. Comprehensive Research: Beyond Fair Prices and Moving Averages If you could couple of other factors that support your view of FAIR price. You can consider various factors such as company fundamentals, industry trends, and market sentiment to complement your understanding of fair prices and moving averages. Enhancing Trading Strategies: Incorporating Technical Indicators In addition to fair prices and moving averages, traders should also consider other technical indicators and tools to enhance their trading strategies. These may include volume analysis, trend lines, support and resistance levels, and oscillators. By incorporating multiple indicators, you can gain deeper insights into market movements and improve your ability to identify profitable opportunities. Adapting to Market Dynamics: Continuous Learning in Stock Market Trading Understanding the concept of fair prices in relation to moving averages is just one piece of the puzzle. Successful traders continually adapt and refine their strategies based on market conditions, new information, and evolving trends. By staying informed, conducting a thorough analysis, and employing sound trading principles, you can increase your chances of success in the stock market. Hope this helps you, follow for more. Like this post to save it to your ideas for future reference, so you will not forget this principle.
SP:SPXEducation
by ZoharCho
1
AAVE Looks Very Bullish!There's not much room/time left for AAVE to consolidate. AAVE has been making lower highs but holding support at the lows as well. After the next potential selloff to the golden pocket or the range lows, I would expect AAVE to make a very big move once the downtrend line is broken decidedly and the price consolidates above. BULLISH ONCE TRENDLINE BREAKS! Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! Don't trade with what you're not willing to lose. Calculate Your Risk/Reward! This is not financial advice. This is for educational purposes only.
by Navitility
P&G Target $135Procter & Gamble is in a weekly uptrend but was hitting its „head“ on the 158.00 resistance. After consolidating there it fell through the local higher low, building a new lower low and is currently retracing to that former local low which acts now as a resistance. The stock showed large sell volume on that resistance last friday which suggests we might se another break down to the current support at 135.00. We have two problems to consider in this trade: 1. The XLP (Index for Consumer Staples, with P&G as its biggest position) is currently more on a support than resistance and might suggest an upward move. That could mean P&G breaks through the 150.00 and is heading higher. 2. The yellow trend line was not broken yet. As a price action trader this is more of a minor problem to me because trend lines are artificial and only an indication for specific price action but should not be mistaken as price action itself. I therefore suggest to wait what happens today. If we see further downward movement, the trade could be taken. If we remain at the 150.00 resistance without larger sell volumes we should skip this one. Also, do not forget that consumer staples show steady performance during recessions and inflation periods because of the nature of their products. Not a primary concern for technical traders but it should be kept in mind. — 🐻 Trade Idea: Short - PG 🔥 Account Risk: 1.00% 📈 Recommended Product: Knockout / Option 🔍 Entry: +/- 147.00 🐿 DCA: No 😫 Stop-Loss: 155.00 🎯 Take-Profit #1: 135.00 (75%) 🎯 Trail Rest: Yes 🚨🚨🚨 Important: Don’t forget to always wait for strong confirmation once possible entry zone is reached. Trade ideas don’t work all the time no matter how good they look. Do not get a victim of FOMO, there is always another trade idea waiting. 🚨🚨🚨 If you like what you see don’t forget to leave a comment 💬 or smash that like ❤️ button! — Disclaimer & Disclosures pursuant to §34b WpHG The trades shown here related to stocks, cryptos, commodities, ETFs and funds are always subject to risks. All texts as well as the notes and information do not constitute investment advice or recommendations. They have been taken from publicly available sources to the best of our knowledge and belief. All information provided (all thoughts, forecasts, comments, hints, advice, stop loss, take profit, etc.) are for educational and private entertainment purposes only. Nevertheless, no liability can be assumed for the correctness in each individual case. Should visitors to this site adopt the content provided as their own or follow any advice given, they act on their own responsibility.
NYSE:PGShort
by LGNDRY-Capital
1
BTC ANALYSIS 5/7/23BYBIT:BTCUSDT.P Hey guys after a few days away from the charts i am now back! i did an awesome 10km run on sunday morning and then have been unavailable since then SO it feels good to beback and lets get stuck into our first BTC analysis back. I am keeping this very extra basic right now because i have been away i dont just want to go and rush into something so im thinking this is still a crucial point and we could spike up a fair amount ALTHOUGH the OB on the left has us stuck so i will be letting this play out for now until i make any moves (still should be room for scalps) so we can look at scalping but all in all still looks great! i will touch base on this later on when my mind is more refreshed. Thanks guys.
by fusfamily
1
GBPJPY - 29/06/2023 30 Min TF [Short]29/06/2023 - 30 Min TF After a long Bullish run, we can see on the 30Min & 1 Hour timeframes there has been a shift move in momentum in the last few days. The market has been highly bearish so we will be looking for sells in the market. The market has been highly bearish so we will be looking for sells in the market. Dispite the bullish momentum on the Weekly & Monthly timeframes. Recent news articles also points to a potential Bullish run. Raising interest rates also supports the idea of a longer Looking to enter a trade after price has broken above area of resistance, & it has come back to close below the zone. 1:1 Risk-to-Reward or higher win rate ratio Happy Trading! Supreme Trading Society DISCLAIMER: All trades are just my own ideas and should not be taken as a signal. Follow me for more ideas
Short
by SupremeTradingFX
GOLD will fall more currently the gold is moving between a bearish channel and is broken below the weekly resistance ..in that case it would be fall more until 1880 weekly support which was previous resistance .in that point gold seems quite bearish .we can see the daily demand around 1910 area was actived and price moved to 1930-1936 area again. on other hands , IF the gold trade above 1940 means ,the bulls back in to tha market then turn the trend to bullish side .currently we are only looking for gold selling opportunities until it trade below 1930 and 1940 area. also the MACD histogram is giving a negative signal and that means there has a higher probability to sell on gold good luck for this week.. OANDA:XAUUSD
OANDA:XAUUSDShort
by rasindu2003
BTC: Tired bulls against raging bearsThe 30K psychological range was strong, since price orbited for days around it, as you've seen. But Bitcoin's price has recently started to decline, primarily due to the impact of the violet line on the ascending price candles. This impact can be seen as a signal to the bulls that they have hit a resistance level and should exercise caution. While it is not always the case, many times when the violet line touches the price, it triggers a reversal. In my previous post, I estimated this "impact" to occur around 31,200. However, it actually happened at a lower price two hours ago, as indicated on the chart. Based on current conditions, I don't anticipate the price reaching or surpassing 31,500 in the near future. Consequently, I am currently adopting a short position in my approach, but I am waiting for the price to fall below the WHITE "stairs" line twice to confirm this short scenario. There was a fakeout crossing of the red and blue lines, which should have occurred but didn't. This indicates that the bears have enough strength locally, particularly within the 1-hour period. My short-term forecast remains the same as in my previous post: the price is likely to drop to 29,500 and linger there momentarily before further descending to the range of 28,000-28,500. Around the 28,000 mark, we will need to conduct another analysis to determine if the price is inclined to go as low as 25,000 or even lower, or if it will rebound instead. Please do not rely solely on my words. Conduct your own thorough analysis, re-analyze the data, and make your own decisions. Trading is a challenging endeavor that requires careful consideration. Atémak
Short
by TradeWithAtemak
1
Sideways Trend Example: ❗️Unleashing the Secrets of the Forex Market: Identifying Trends Made Easy❗️ 💲As traders, one of the most essential skills is the ability to identify trends. In this article, we will embark on a journey to unravel the mysteries of the forex market trends like never before. So, fasten your seatbelts, get ready for an adventure, and let's dive in! ↗️The Smooth Sailing - Uptrends: Picture yourself in a sailboat on a calm, sunny day, with the wind gently pushing you forward. This pleasant scenario beautifully represents an uptrend in the forex market. Uptrends occur when the price of a currency pair consistently increases over time. To identify an uptrend, keep an eye out for higher highs and higher lows on your price charts. Uptrend Example: ↘️Rough Waters - Downtrends: Now, let's transform our tranquil sailboat into a powerful vessel battling against fierce waves and gusty winds. Similar to this scenario, a downtrend indicates a series of declining prices in the forex market. To recognize a downtrend, look for lower lows and lower highs on your price charts. Downtrend Example: 🔄The Eye of the Storm - Sideways Trends: Imagine yourself caught in the eye of a storm, where the winds calm down, and the waves become gentle ripples. This serene moment perfectly mimics a sideways trend in the forex market. Sideways trends occur when the price moves within a relatively tight range, lacking a clear direction. To spot a sideways trend, locate horizontal support and resistance levels, and observe price movements bouncing between them. Sideways Trend Example: 📊Interpreting the Elements - Indicators: Just as sailors use compasses and maps to navigate the open seas, traders have powerful tools at their disposal to identify trends in the forex market. Technical indicators, such as Moving Averages, MACD, and RSI, provide valuable insights by analyzing past price data. These indicators can help confirm and strengthen your trend analysis. 📈The Art of Patience - Confirming Trends: Sometimes, identifying trends in the forex market can feel like searching for a needle in a haystack. Therefore, it is crucial to exercise patience before jumping into trades. Waiting for confirmation is vital to avoid false signals. Look for multiple indicators aligning with your identified trend before making any decisions. 💹Riding the Waves - Trend Trading Strategies: Once you've identified a trend in the forex market, it's time to ride the waves and potentially profit from it. Trend trading strategies involve jumping on board during an established trend and holding positions until signs of a reversal appear. By keeping emotions in check and adhering to risk management principles, you can increase your chances of success in trend trading. 🧠Conclusion: Navigating the vast and ever-changing forex market can seem like an exhilarating adventure. By mastering the art of trend identification, you hold the key to unlocking potential profits. Remember, whether you're sailing through uptrends, weathering downtrends, or calmly cruising sideways trends, a combination of technical indicators, confirmation, and patience should guide your decision-making. So embrace the wonder of the forex market, and may your trend-spotting skills be forever sharp! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
11