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Improve Forex TradingWhen I was learning how to trade and when I was watching and reading different trading educators, these words naturally pissed me off. What the hell are you talking about? What confirmation? It was a full-blown mystery...🤯 Then, once I started to mature in trading and trade full-time, I became an author on TradingView. Posting my forecasts and trading setups, I frequently mentioned the confirmation. And now the newbies that are reading me and learning from me are pissed off...🤬 That is so funny I guess. But the truth is that the confirmation must become a fundamental part of your trading strategy. It is your key to successful trading. What exactly is the confirmation? It depends on many many different things, in this article I will discuss with you the 4 main types of confirmation and give you detailed examples. 1️⃣ - PRICE ACTION CONFIRMATION That is actually what I prefer. Analyzing different markets and searching for decent trading opportunities often times we find some peculiar instruments to watch. Identifying the market trend and key levels we find the potential spots to trade from. But do we just open the trade once the "ZONE" is spotted? I wish it could be that simple... Trading just the zone, without additional clues brings very negative figures. We definitely need something else. Price action & candlestick patterns can be those clues. Accurate reflection of the current local market sentiment makes the patterns a very reliable confirmation. Dodji's, pin bars, double tops/bottoms ... Proven by history, the skill of identification & reading the patterns will pay off quickly. Being in some sense the language of the market, the patterns are the fundamental part of my trading strategy. 2️⃣ - FIBONACCI LEVELS Fibonacci levels are a very popular technical tool. Being applied properly it helps the trader to confirm or, alternatively, disqualify the identified "ZONE". With multiple different methods like confluence trading, fibs are applied in hedge funds and various banking institutions. The main problem with the fibs, however, is complexity and a high degree of subjectivity. Meeting different traders and watching different posts on TradingView I noticed that all traders tend to have their own vision. There is no universal system to apply here, a proper fib.confirmation technique can be built only with long-lasting backtesting and practicing. 3️⃣ - FUNDAMENTAL NEWS The figures in the economic calendar, news, tweets. Actual fundamental news can become your best confirmation tool. However, the main obstacle right here is the promptness, validity and reliability of the data that you get. The information shouldn't be delayed and it must be objectively true. The search for such a source is by itself is a very time-consuming and labor-intensive business not even mentioning its potential costs. And that is not all. Knowing how to make sense of that data, its proper perception, and understanding requires a solid economical and financial background and experience. At the end of the day, becoming an expert in fundamental analysis , the trader can easily sort the trading zones and trade only the ones that are confirmed by a decent fundamental trigger. 4️⃣ - TECHNICAL INDICATORS I believe all the traders apply some indicators. From a simple moving average to some complex composite algorithms, indicators play a very important role in trading. Being 100% objective and providing up-to-date real numbers and figures, they are our allies in a battle against subjectivity. For many traders, the various signals from indicators are considered to be accurate and reliable confirmations. Many algotrading solutions are operating simply relying on such signals and being able to bring consistent profits proves the power of technical indicators. What confirmation type should you rely on?🧐 I guess the main rule right here is that the confirmation must MAKE SENSE to you. You should feel the logic behind that. It must make you confident in your action, even in case of the occasional losses, it must keep you calm and humble. Let me know in a comment section what confirmation do you prefer!
Education
by fxpremiere
22
BTC USDT correlationHello traders, I think those two charts are useful when used alongside each other in correlation. It is logical that decline in BTC price leads to inflow in USDT and vice versa. So we could say (and the chart shows, that the correlation between the price BTC and market cap of USDT is inversely proportional). For further simple explanation there are some events marked on the chart: Red Flag - A gap in USDT inflow probably shows that institutions are selling before BTC price declines. It is actually only the third candle on USDT when the selloff of the bitcoin occurs. Blue flag - USDT cap fails to pick up momentum and start going down significantly while BTC surges. Orange flag - USDT market cap is flatting out, fails to go lower low and starts forming local higher lows. BTC is still pushing higher, but the trend is converting to the broad bull channel/Trading range as more and more bears are buying into the shorts and more and more bulls are taking profits. Purple flag - BTC - huge rising wedge formed and wedges tend to break to the lower side. Lower high also formed and after. 3rd higher low formed and money starts to flow into USDT. Green flag - wedge top in USDT, while wedge bottom in BTC. Reversal on both charts. At the moment USDT market cap is in sharp decline, which might signal that BTC will be going much higher
Education
by Sharkethics
23
IMPROVE YOUR TRADING | 4 TYPES OF TRADE CONFIRMATION ✅👌 "Look for a confirmation!" "Wait for a confirmation!" When I was learning how to trade and when I was watching and reading different trading educators, these words naturally pissed me off. What the hell are you talking about? What confirmation? It was a full-blown mystery...🤯 Then, once I started to mature in trading and trade full-time, I became an author on TradingView. Posting my forecasts and trading setups, I frequently mentioned the confirmation. And now the newbies that are reading me and learning from me are pissed off...🤬 That is so funny I guess. But the truth is that the confirmation must become a fundamental part of your trading strategy. It is your key to successful trading. What exactly is the confirmation? It depends on many many different things, in this article I will discuss with you the 4 main types of confirmation and give you detailed examples. 1️⃣ - PRICE ACTION CONFIRMATION That is actually what I prefer. Analyzing different markets and searching for decent trading opportunities often times we find some peculiar instruments to watch. Identifying the market trend and key levels we find the potential spots to trade from. But do we just open the trade once the "ZONE" is spotted? I wish it could be that simple... Trading just the zone, without additional clues brings very negative figures. We definitely need something else. Price action & candlestick patterns can be those clues. Accurate reflection of the current local market sentiment makes the patterns a very reliable confirmation. Dodji's, pin bars, double tops/bottoms ... Proven by history, the skill of identification & reading the patterns will pay off quickly. Being in some sense the language of the market, the patterns are the fundamental part of my trading strategy. 2️⃣ - FIBONACCI LEVELS Fibonacci levels are a very popular technical tool. Being applied properly it helps the trader to confirm or, alternatively, disqualify the identified "ZONE". With multiple different methods like confluence trading, fibs are applied in hedge funds and various banking institutions. The main problem with the fibs, however, is complexity and a high degree of subjectivity. Meeting different traders and watching different posts on TradingView I noticed that all traders tend to have their own vision. There is no universal system to apply here, a proper fib.confirmation technique can be built only with long-lasting backtesting and practicing. 3️⃣ - FUNDAMENTAL NEWS The figures in the economic calendar, news, tweets. Actual fundamental news can become your best confirmation tool. However, the main obstacle right here is the promptness, validity and reliability of the data that you get. The information shouldn't be delayed and it must be objectively true. The search for such a source is by itself is a very time-consuming and labor-intensive business not even mentioning its potential costs. And that is not all. Knowing how to make sense of that data, its proper perception, and understanding requires a solid economical and financial background and experience. At the end of the day, becoming an expert in fundamental analysis , the trader can easily sort the trading zones and trade only the ones that are confirmed by a decent fundamental trigger. 4️⃣ - TECHNICAL INDICATORS I believe all the traders apply some indicators. From a simple moving average to some complex composite algorithms, indicators play a very important role in trading. Being 100% objective and providing up-to-date real numbers and figures, they are our allies in a battle against subjectivity. For many traders, the various signals from indicators are considered to be accurate and reliable confirmations. Many algotrading solutions are operating simply relying on such signals and being able to bring consistent profits proves the power of technical indicators. What confirmation type should you rely on?🧐 I guess the main rule right here is that the confirmation must MAKE SENSE to you. You should feel the logic behind that. It must make you confident in your action, even in case of the occasional losses, it must keep you calm and humble. Let me know in a comment section what confirmation do you prefer! 💝Please, support my work with like and comment! Thank you for reading.
Education
by VasilyTrader
16
A Comprehensive Guide to the MACDHello traders, in this post, we will be talking about how to use the MACD indicator, PROPERLY. I will be going over all of the main indications on how to use this tool and most importantly, how to interpret it. The MACD is another most commonly used tool within the trading community, and if used right with other indicators, this tool can be incredibly useful for deleveraging risk for entries and exits. The MACD is a momentum indicator and stands for "moving average converging divergence" - as it requires moving averages as its main input. ------ In this post, we will only refer to the price action with the default settings (12 and 26 EMA). The MACD is simply built on two major line components, the 1) MACD line, and the 2) Signal line. The MACD line and signal line is shown in the example below. The MACD line is defined with two lines where one reacts faster to price changes. The MACD Histogram The MACD Histogram is the difference between the MACD line and the signal line, also shown in the example below. The bigger the gap between the lines, then the higher the bars that the MACD histogram will show within the indicator. The MACD in general is a MOMENTUM indicator that shows the relationship between the two moving averages as explained above. The MACD line is calculated by taking the difference between the longer and short term period exponential moving average. Exponential averages are used because they respond quicker to price change and is weighted on recent price action. How It Works Again, if you open up your MACD indicator from the tool list, you do not need to change the default settings, as they default settings for the EMA is already set at 12 and 26, respectively as the main exponential moving average. As the two moving averages move away from each other, the MACD line will rise or fall as shown in the diagram above. When the two moving averages cross, there is a corresponding cross of the zero level by the MACD line. When the signal line and MACD line averages cross, there is a corresponding cross of the zero level by the MACD histogram. The most important way to interpret it is understanding the interaction between the two MACD lines as well as their positions relative to the zero line. When the MACD is above the zero line, it indicates that the momentum is bullish. When the MACD line is BELOW the zero line, the momentum is then considered to be bearish. In summary, the MACD is used in one of three ways: 1) Crossovers - this is generated when the MACD lines cross below the signal line. These either create a buy or sell signal when it crosses to the upside/downside. In addition, the locations of the crossovers in relation to the zero line are helpful for determining the buy or sell signals. Bullish signals are more significant when the crossover takes place below the zero line. The CONFIRMATION takes place when both lines cross ABOVE the zero line. Crossovers work best when you are in a TRENDING market. You can still have bearish crossovers within a bullish market, often creating false signals for new traders. 2) Overbought/Oversold conditions 3) Divergences The best time frame for the MACD does not exist. This would be completely up to your personal preference; however, daily signals (1D timeframe) are more significant than shorter timeframes because they carry more weight. A good tip is to track the behavior of the MACD on a daily chart, and confirm the trade with the WEEKLY timeframe.
BITSTAMP:BTCUSDEducation
by XForceGlobal
155
What's the worst trade you ever made and what did you learn?In the comments below, write about a trading or investing experience that did not go well. More importantly, explain what you learned from that experience and how it shaped you as an investor or trader today. No trader or investor wins 100% of the time. We all have setbacks or at times make decisions that did not perfectly work out. Your experiences and insights will help other traders and investors learn. It's the best way to get better and grow - sharing, talking, and exchanging ideas with others. We look forward to reading what everyone contributes in the comments below. We will also give out some free gifts to the best responses!
SP:SPXEducation
by TradingView
233
What's the worst trade you ever made and what did you learn?In the comments below, write about a trading or investing experience that did not go well. More importantly, explain what you learned from that experience and how it shaped you as an investor or trader today. No trader or investor wins 100% of the time. We all have setbacks or at times make decisions that did not perfectly work out. Your experiences and insights will help other traders and investors learn. It's the best way to get better and grow - sharing, talking, and exchanging ideas with others. We look forward to reading what everyone contributes in the comments below. We will also give out some free gifts to the best responses!
SP:SPXEducation
by TradingView
29
Basic TradingView Tools. Guide Part 351- What is a trend line? Trend lines are easily recognizable lines that traders draw on charts to connect a series of prices or show the best fit of some data. The resulting line is then used to give the trader a good idea of ​​the direction in which the value of an investment could move. A trend line is a line drawn above the pivot highs or pivot lows to show the prevailing price direction. Trend lines are a visual representation of support and resistance in any time period. They show the direction and velocity of the price and also describe patterns during periods of price contraction. Trend lines indicate the best fit of certain data using a single line or curve. A single trend line can be applied to a chart to give a clearer picture of the trend. Trend lines have the ability to exercise to the highs and lows to produce a channel. The length of time that is examined and the precise aspects used to produce a trend line vary from trader to trader. What do the trend lines tell you? The trend line is among the most important tools used by technical analysts. Rather than looking at past trading performance or other fundamentals, technical analysts look for trends in price action. A trend line helps technical analysts determine the current direction of market prices. Technical analysts believe that the trend is their friend, and identifying this trend is the first step in the process of making a good trade. To create a trend line, an analyst must have at least two points on a price chart. Some analysts like to use different time frames, such as one minute or five minutes. Others look at daily charts or weekly charts. Some analysts set aside time entirely and choose to view trends based on tick intervals rather than time intervals. What makes trend lines so universal in use and attractive is that they can be used to help identify trends regardless of the time period, time frame or interval used. The difference between trend lines and channels Much more than one trend line can be used on a chart. Traders commonly use a trend line connecting highs across one span and another to connect lows to produce channels. A channel adds a visual representation of support and resistance for the time frame under review. Similar to a single trend line, traders look for a spike or dissolution to pull the cost action out of the channel. They have the ability to use that gap as an exit point or an entry point depending on how they are setting up their business. Trend lines have constraints shared by each of the charting instruments in that they have to readjust as more cost data is entered. A trend line will sometimes last a long time, but occasionally the cost action will deviate enough that it is essential to update it. Additionally, merchants are constantly choosing different data points of view to connect with. For example, certain traders will use the lowest lows, while others will only be able to use the lowest closing costs over a period of time. In the end, trend lines applied over smaller time frames have the potential to be volume susceptible. A trend line formed at low volume can easily be broken while increasing volume during a session. 2- Line Information This is used to collect data on a trend, be it bearish or bullish. - Angle - Bars - Percentage of Raise or Lower. 3- Angle of a trend. It is placed from the maximum or minimum point to the end of the same trend, be it bearish or bullish, in general a logarithmic graph is used to better visualize the development of the asset. Compared to previous trends. 4- VWAP (Volume weighted average price). Volume Weighted Average Cost (VWAP) is a technical study instrument used to measure volume weighted average cost. The VWAP is typically used with intraday charts as a way to establish the general direction of intraday costs. It is similar to a moving average in that once cost is above VWAP, costs keep going up and once cost is below VWAP, costs keep falling. VWAP is used primarily by technical analysts to detect market trends. Calculation There are five steps in calculating VWAP: Calculate the typical price for the period. High + Low + Close / 3 Multiply the typical price by the volume for the period. (Typical Price x Volume) Create a typical price running total. Cumulative (typical price x volume) Create a running total for volume. Cumulative (volume) Divide the running totals. VWAP = cumulative (typical price x volume) / cumulative (volume) Basic Explanation: The volume-weighted average cost indicator is similar to a moving average in that once costs advance, they remain above the indicator line and once they remain decreasing, they remain below the indicator line. However, keep in mind that, like a moving average, VWAP may also experience lag. The lag is inherent in the indicator since it is a calculation of an average using previous data. VWAP can be used in any time frame: intraday (seconds, min, hours), week, month, year, decade, century. For example, if you select a weekly interval, the sum of the values ​​will accumulate from the first trading day of each week. Identification of trends Identifying trends is a critical benefit of using the volume weighted average cost indicator. The hypothesis is quite easy however it could be quite effective, especially once it is used to confirm trading signals. The uptrend is characterized by costs that trade above the VWAP. The downtrend is the opposite. Summary The volume weighted average cost is an interesting indicator because, unlike many other technical study tools, it is the most correct for intraday study. It is a robust way to detect the underlying trend of an intraday lapse. Once the cost is above the VWAP, the trend increases and once it is below the VWAP, the trend decreases. However, there is a problem. Despite being used primarily on a day-to-day basis, there can still be a huge difference between the indicator and the cost. The indicator starts calculating when opening and stops calculating when closing. Therefore, for a chart that uses a short time span (that is, 1 minute), there may be several hundred periods in that single day. The closer you are to the close of the day, the longer the indicator will delay. In other words, true of any indicator that calculates an average using previous data. Tickets: Anchor period Indicator calculation period. Probable values: session, week, month, year, decade, century. Offset Modifying this number will move the VWAP forward or backward, relative to the current market. Zero is the stated cost. Style: VWAP You can toggle the visibility of the VWAP, as well as the visibility of a cost line that shows today's actual cost of the VWAP. Also, you can choose the color, thickness, and line style of the VWAP line. Precision Establish the number of decimal places that will be left in the cost of the indicator prior to rounding. The larger this number, the more decimal places will be in the cost of the indicator. 5- Horizontal Line It is used to indicate a possible support or resistance, at a specific price. 6- Vertical Line It is used to indicate a date or a price range between assets starting from a certain candle. 7- Crossing Line. It is used for both Horizontal and Vertical data. Support-Resistance or Range from a certain date or price. 8- Arrow This serves to indicate a certain moment or a beginning, a direction and finally an end of it. 9- SemiDirect Line. It is used to see possible supports or resistances in the form of a channel exerting z in coordinates. 10- Direct Line. Same meaning as Semi-direct taking part also to the previous part. 11- Channels. The channel is a powerful yet commonly overlooked chart boss and combines some forms of technical study to give traders potential aspects of entering and exiting trades, as well as hazard control. The first step is to learn to detect channels. The next steps integrate establishing where and when to enter a trade, where to put stop-loss directives, and where to profit. Channel characteristics In the context of technical analysis, a channel occurs when the price of an asset moves between two parallel trend lines. The upper trend line connects the swing highs of the price, while the lower trend line connects the swing lows. The channel can slope up, down, or sideways on the chart. If the price breaks out of a trading channel to the upside, the move could indicate that the price will rebound further. The trade channel technique consistently works best in trades with medium volatility, which could be critical in deciding the likely profit ratio of a trade. For example, if volatility is low, then the channel is not going to be huge enough, which means lower potential gains. Larger channels are usually associated with higher volatility, which means higher potential returns. Channel types A channel consists of at least 4 contact aspects as we require at least 2 minimums to connect with each other and 2 elevated ones to connect with each other. Generally, there are 3 types: Channels that remain angled upward are called ascending channels. Channels that angle downward are downward channels. The ascending and descending channels are also called trend channels as the cost moves more dominatingly in one direction. Channels in which the trend lines are horizontal are called horizontal channels, trading ranges, or rectangles. Buy or shorten the channel Channels sometimes have the ability to grant buying and trading aspects and there are numerous rules for entering long or short positions: Once the cost reaches the pre-eminent part of the channel, sell your existing extensive stance and / or take a short stance. Once the cost is in the middle of the channel, do nothing if you do not have operations or if you keep your recent operations. Once the cost hits the bottom of the channel, cover your existing short stance and / or take a long stance. There are two exceptions to these rules: If the cost goes through the top or bottom part of the channel, then the channel is not intact at the moment. Don't start any more trading until a new channel is developed. If the cost shifts between the channels over a long period of time, a new, narrower channel can be established. At this point, enter or exit around the ends of the narrower channel. Other ways of engineering are sometimes used to improve the accuracy of channel signals and to check the overall strength of the up or down shift. Several other tools to use throughout the channel business include: What's more... Moving Average Convergence Divergence (MACD) is commonly going to be close to zero along horizontal channels. The MACD line that crosses the signal line can also signal likely longs around the bottom of a channel or short trades around the prominent part of the channel. A stochastic crossover can also indicate a buying possibility around the bottom of the channel or a trading possibility around the leading part. The volume can also support commercial channels. The volume is often lower on the channels, especially around the middle of the channel. Shoots are constantly associated with a large volume. If the volume is not increased by one separation, there is a greater possibility that the channel will continue. Determination of Stop Loss and Take-Profit levels Channels have the ability to provide integrated money management skills in the form of stop-loss and take-profit levels. Here are the main rules to decide these aspects: If you have bought at the bottom of the channel, exit and take your profit in the leading part of the channel, but also place a stop-loss order subtly below the bottom of the channel, which leaves room for regular volatility. Determination of commercial reliability The channels provide the function of establishing the possibility of success of an operation. This is done through something known as confirmations. Confirmations represent the proportion of times the cost has been recovered from the top or bottom of the channel. These are the relevant assertion levels that you should remember: 1-2: Weak channel (Non-negotiable) 3-4: Correct channel (Negotiable) 5-6: Deep Channel (Reliable) 6+: Fairly intense channel (Most reliable) This only applies to traditional markets in general. Estimation of the duration of the operation The proportion of time it takes for an operation to reach a point of sale from a point of purchase can also be calculated using channels. This is done by recording the proportion of time it took for operations to run in the past and then averaging the proportion of time for the future. This estimate is based on the assumption that cost movements are approximately equivalent in terms of time and cost. However, it is only an estimate and may not always be strict. Channels provide a way to buy and sell when price moves between trend lines. By "encapsulating" a stock's price movement with two parallel lines, buy and sell signals, as well as stop-loss and target levels, can be estimated. The duration of the channel helps determine the strength of the channel. The amount of time it typically takes for a price to move from high to low (or low to high) provides an estimate of how long trades can take. 12- Upper or lower plane This type of graph is used for patterns such as Ascending Triangle or Descending Triangle. Which we will explain later. But the base is simple. A flat resistance or support along with a continuation of the trend. With a break. 13- Trend Regression. Regression trends have the ability to use parallel channels in a similar way. The primary difference is that there are preeminent and lower bands that are set to a customer-determined number of standard deviations from a baseline. This is a good tool for establishing when a cost is unusually far from its baseline. Preeminent deviation Sets the number of standard deviations from the base to configure the preeminent channel. Fundamentally, this institutes the distance between the central base and the edge of the preeminent canal. Lowest deviation Sets the number of standard deviations from the base to configure the lower channel. Fundamentally, this institutes the distance between the central base and the edge of the lower canal. Use preeminent deviation Toggles the utilization / visibility of the preeminent channel. Use a lower deviation Toggles the use / visibility of the lower channel. Source Sets the source of costs to calculate channel posture. Style In the Style characteristics dialog box, it is feasible to modify the appearance of a regression trend. Base Sets the color, weight, and line style for the bottom channel and bottom line. The check box next to it toggles the visibility of the baseline. Up Sets the color, weight, and line style of the preeminent channel, as well as the weight and line style of its border. The check box next to it toggles the visibility of the preeminent channel. Down Sets the color, weight, and line style of the bottom channel, as well as the weight and line style of its border. The check box next to it toggles the visibility of the lower channel. R This check box toggles the visibility of the writing showing the cost of Pearson's correlation coefficient between both aspects of the regression trend. Extend lines Toggles the choice of lengthening the channel lines indefinitely to the right, even once it is out of the present chart view. Coordinates In the Coordinates characteristics dialog box, you can accurately position the views of the regression trend on the time axis by setting the bar number. Point 1 bar It enables the rigorous location of the first point of the regression trend using a bar number. Point 2 bar It enables the rigorous location of the second point of the regression trend using a bar number. Visibility In the Visibility Characteristics dialog box, you can modify the regression trend that is displayed in charts of different time periods.
BITSTAMP:BTCUSDEducation
by UnknownUnicorn18500526
46
The basics: Higher Highs and Higher LowsMarkets trend. There are impulses, and in those the price consistantly makes several higher highs and lows, or lower highs and lows in the case of a downtrend impulse, or leg. The majority that try to compete in this activity fail, and from what I have seen they either don't know the basics, or have loss phobia. Or are dense, that's also a possibility. It is basic. Do not go against the trend. Especially when it is diagonal. The market goes up in impulses. Forget elliott or dow waves, there can be any number of impulses within the impulse. 5 higher highs and lows, 6, 7, 8. Of course I am not used to seing something like 25 in a row. People would become instant billionaires if that happened. I wish... I can't prove the market behaves in that way but I can use some empirical evidence. In here I will present a couple of examples. 2, 3 or 4 examples can be a coincidence. But when something repeats itself over and over it is unlikely it is a coincidence. It's basic and easy to play around the fact that currency pairs make successive higher highs and lows. For example it might be pointless to hold a long once the price has reached a lower low (but it's a bad idea to have a stop at the very low or just below it). Eurodollar downtrend from the 20 April to the 10 May: Put into context: And then the new low: Another example: Forex charts look noisy and random, but they are obviously not random. The price does not randomly make a higher high in a downtrend then continues down. It keeps making lower highs without fail, and once there is a higher high well, most of the time it does not go just slighlty higher then drop. How embarassing is it that PHD economists can't see this? Sometimes a higher high in a downtrend is a trap Here is what individual investors can be seen doing: Retail positions have no predictive abilities that I know of. Their entries are basically random. And don't matter. I am not contrarian to retail positions when I enter, sometimes I buy with 80% of them. I see 0 correlation with my entries. But where is there a difference? Each time I have a big winners going past 5R I look at retail positions, and what I see is 80-90% are in the opposite direction (and have been for a while). Them sucking and being on the wrong side could either be due to entering at stupid moments, or closing winners quickly and holding losers which leads to an aggregate of "80% long" at the bottom of long downtrends. Are they dumb or afraid? By afraid I mean loss aversion. I do not think personally they are all idiots that just go against the trend, but I do think there are a lot of individual investors that do just that. I can imagine them being all nervous while I'm just chilling. I would say at least 90% got to be afraid, let's simply call it what it is: weak. There are plenty of idiots. Who gets into this? People that have money and went to school right? Engineers and doctors? There has to be some gamblers too. In investing in general I know the vast majority is "educated" as well as IQ > 100 but short term like this might not have the same distribution. How basic is it? Price makes lower lows and highs it is going down, and once there is a higher high the trend takes a break or reverses. Trade like a pro, not another statistic.
Education
by MrRenev
38
Identifying Impulses and correctionsAn impulse describes a strong move in an asset's price coinciding with the main direction of the underlying trend. Impulse waves are trend confirmation waves. The corrective wave is the period move where price is struggling against the trend. e.g. A dead cat bounce (trend continuation pattern) is a short-term recovery in a declining trend that does not indicate a reversal of the downward trend. A flag is a short sloping rectangle bounded by two parallel trend lines. They can be both bullish and bearish.
Education
by thesharkke
70
EDUCATION - TOP REVERSAL PATTERNS ⚡At the end of a trend, there is a typically a reversal pattern indicating to us that the trend is about to reverse. There are 3 main patterns that you NEED to know. 1. Double Top/Double Bottom A double top/bottom pattern is a chart pattern that consists of 2 consecutive peaks of similar height indicating that there is not enough buying/selling pressure to surpass the extremes of the price. This leads to a reversal in trend. Double top is a bullish to bearish trend reversal. Double bottom is a bearish to bullish trend reversal. For a safe entry, entry would be after the break of the neck line (the last swing point) which is a confirmation that the it is a valid double top/bottom pattern. Double Top: 2. Rising Wedge/Falling Wedge A rising/falling wedge is a chart pattern that occurs when price is making higher highs and higher lows (in an uptrend – rising wedge) and lower lows and lower highs (in a downtrend – falling wedge). As the pattern progresses in the wedge, the range of the price contracts and is confined between 2 lines which get closer. Price eventually breaks out of the wedge and creates a reversal. Rising wedge is a bullish to bearish trend reversal. Falling wedge is a bearish to bullish trend reversal. For a safe entry, wait for a breakout of the wedge to confirm the validity of the wedge pattern. Rising Wedge: 3. Head & Shoulders/Inverse Head & Shoulders A head and shoulders pattern is a chart pattern that appears as a baseline with three peaks. The outside two peaks (shoulders) are close in height and the middle is highest. A normal head and shoulders is a bullish to bearish trend reversal. An INVERSE head and shoulders is a bearish to bullish trend reversal. For a safe entry, it is often advised to enter on the break of the neckline as that would be confirmation of the head and shoulder pattern. Inverse Head & Shoulders: Do your best to find them in your analysis!
Education
by Altsignals
51
Comparing Traders: the FOMO effectFOMO Trading vs Disciplined Trading: THE CYCLE (chart) The process of placing a trade can be very different depending on the situation in hand and the factors that are driving a trader’s decisions. (On Chart example) Here is the journey of a FOMO trader vs a disciplined trader – as you will see, there are some fundamental differences that can lead to very different outcomes. DAILYFX ANALYSTS SHARE THEIR FOMO EXPERIENCES Traders of all levels of experience have dealt with FOMO, including our DailyFX analysts: “Trade according to your strategy, not your feelings” – Peter Hanks, Junior Analyst “Strategize. Execute. Stick to the plan and don’t be greedy. All types of traders make money; pigs get slaughtered” – Christopher Vecchio, Senior Strategist “Trade decisions are not binary, long vs. short. Sometimes doing nothing is the best trade you can make” - IIya Spivak, Senior Currency Strategist “If you don’t deal with and temper FOMO in trading – it will deal with you” – James Stanley, Technical Strategist If you do not have a trading plan, trading strategy, trading edge in Forex trading- you are leaving trading to happenstance instead of controlling your probables and treating Forex trading like a business. This is not a sprint race but a marathon race. Forex trading outcome is up to you alone.
Education
by Anbat
104
What Is a Failed Break?A failed break (false breakout) occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction. Failed breaks may also signal traders to enter a trade in the opposite direction of the attempted breakout. Since the breakout attempt failed, the price could head the other direction. A throwback is when the price retraces back toward the resistance or support level just broken. A throwback is not a failed breakout. How to detect failed breaks? A failed breakout reveals that there was not enough buying interest to keep pushing the price above resistance or below support. If a security does not see strong volume and substantial price moves supporting the breakout direction, the chance of a false breakout increases. Take a look at the chart and see how the uptrend line is broken with unexpected low trading volume. If there is significantly increased volume on a breakout, the likelihood of a false breakout developing decreases (but is not eliminated). However, a throwback may still occur.
Education
by BobRivera990
61
Divergences Explained by a RaccoonThis video's purpose is to go over the fundamentals of divergences. How to spot them and the effects they have. I might make a video later on practical application and how to trade them; as well as how to combine them with other technical analysis tools and techniques. And I should be doing a stream soon where we just spend an hour hunting divergences on different commodities; whether it's crytpo, stonks, or forex. I hope this helps those trying to understand divergences. Let me know if anything seems off or is confusing, I am more than happy to make another video to clarify anything that seems off or incomplete. Thanks for watching.
FTX:BTCUSDEducation
by GR3ND3L
61
Understanding Market Structure1) Consolidation The market enters this phase after a strong movement. Sellers control buyers, which further leads to a downward trend 2) Down trend Bearish phase - lower lows and lower highs. This is where traders want to go short on breakouts or from levels 3) Distribution Occurs after a prolonged fall in prices, when buyers gain control of prices, resulting in higher prices 4) Up trend The bull phase is where you want to be long. See to buy short breakout moves after long rallies have exhausted themselves. Attempts to rally are considered guilty until proven innocent ------------------- Share your opinion in the comments and support the idea with likes. Thank you for your support!
Education
by DeGRAM
19
CONSENSUS MECHANISMS - PoW vs PoSHey, Alkalites! If you want to invest in cryptocurrencies and know how to recognize long-term opportunities, you should start learning the technology behind them. Do you know what a consensus mechanism is? Consensus decision-making is a process in which group members agree to support a decision in the best interest of the whole. In other words, this mechanism is used to govern the blockchain behind each asset. Usually, this consensus is necessary to confirm the validity of the transactions that take place in that network. The most common consensus mechanisms are PoW (Proof of Work) and PoS (Proof of Stake). PoW is used to determine how the network can be sure that the transaction is valid and that someone is not corrupting the network, for example, with double-spending. The Proof of Work is based on advanced mathematical formulas called “cryptography”. That is why the name "cryptocurrency" was invented. All miners compete looking for a solution to the mathematical problem. The first miner (or pool of miners) to solve the block problem receives a reward, the block is created and transactions are included. Examples are BTC and ETH. PoS uses a process by which contributors to the system earn commissions from transactions. To validate the transactions, the user must put their coins in a wallet that freezes the coins. The more you stake, the more you earn. If someone tried to hack the network or process malicious transactions, he would lose all of his participation, since it would affect the integrity of his wallet. Also, it encourages holding the tokens, which is good for the value. Examples are Algorand and Cardano. Do you have any question? Let me know! Have a great Sunday, Alkalites!
COINBASE:BTCUSDEducation
by CryptoAlkaline
57
Indicator introduction: Custom Volume - Periodic Peaks & TroughsThis script is a custom volume indicator with additional features. But why is this useful? The minimum and maximum volumes, in different time periods, are displayed by labels below the bars. I call them "Peaks" and "Troughs"(Hover your mouse cursor over the labels to see more details) These parameters are widely used in technical analysis . If traders want to confirm a reversal on a level of support–or floor–they look for high buying volume . Conversely, if traders are looking to confirm a break in the level of support, they look for low volume from buyers. If traders want to confirm a reversal on a level of resistance–or ceiling– they look for high selling volume . Conversely, if traders are looking to confirm a break in the level of resistance, they look for high volume from buyers. How to use alerts Note that by creating an alert, an instance of the indicator, with all your settings, will be activated on the site's server and alerts will be triggered by it. After that, changing the indicator settings on the chart will no longer affect the alert. Open the settings window and select the alert conditions as you wish Click the Create Alert button (or press the A key while holding down the ALT key) In the Condition section, select the name of the indicator. Make the rest of the settings as you wish. Finally, click on the Create button. It's finished. After a few moments, your alert will be added to the Alerts menu.
BITSTAMP:BTCUSDEducation
by BobRivera990
51
A technique from 1202 - Really? images Who was Fibonacci? Fibonacci (1170 – c. 1240–50), also known as Leonardo Bonacci, Leonardo of Pisa, or Leonardo Bigollo Pisano was an Italian mathematician from the Republic of Pisa, considered to be "the most talented Western mathematician of the Middle Ages". Fibonacci popularized the Hindu–Arabic numeral system in the Western world primarily through his composition in 1202 of Liber Abaci (Book of Calculation). He also introduced Europe to the sequence of Fibonacci numbers, which he used as an example in Liber Abaci. You may have seen this? This is what’s called the Golden ratio. I am not looking to go into depth on Fibonacci use cases, spirals, fans, arcs, circles, wedges and channels. However, it was important to mention so you can go away and do your own research on Fibonacci beyond this “welcome to” post. Why is this useful for trading? The Fibonacci sequence is quite possibly the most used tool in trading stocks, Forex, Commodities and even crypto. In mathematics, the Fibonacci numbers, commonly denoted Fnuch that each number is the sum of the two preceding ones, starting from 0 and 1. However, you are probably more familiar with Fibonacci extension and retracement levels. It’s all based on the same logic. Fibonacci numbers appear unexpectedly often in mathematics, so much so that there is an entire journal dedicated to their study, the Fibonacci Quarterly. Applications of Fibonacci numbers include computer algorithms such as the Fibonacci search technique and the Fibonacci heap data structure, and graphs called Fibonacci cubes used for interconnecting parallel and distributed systems. They also appear in biological settings, such as branching in trees, the arrangement of leaves on a stem, the fruit sprouts of a pineapple, the flowering of an artichoke, an uncurling fern, and the arrangement of a pine cone's bracts. Just look at this image once more! So what? The fact that these numbers appear in nature, it has clearly been adopted in art and architecture – this is due to the human desire for pattern recognition. It’s built into our DNA, the fact that we as a collective want to identify such patterns, will in fact drive charts. I have written articles on Elliott Waves - which again is quite possibly one of the biggest use cases for Fibonacci, definitely an easy way to see the powers at work. Here’s a link to one such article; How to use Them? If you have been trading for some time you are most likely familiar with Fibonacci techniques, if you are new, here is some basic logic to get you started. As mentioned above there are several tools for Fibonacci, as a new trader I would suggest only looking at extensions and retracements to start you off. Retracement These levels often work well as support and resistance, you will find opportunities to enter on pullbacks (retracements) against the overall trend. Common levels here are 23.6%, 38.2%, 50% (although it’s not technically a real fib level, another topic for another time) then of course the 61.8% and the 78.6%. How to draw these on the chart – you are looking for 3 points let’s assume A,B & C. You are looking for A to be at the start of your trend. Often this will be a swing low or high. Let’s assume we are looking at an uptrend and we want to see the pullback. A would be placed here as above. The next step is to use the extension tool and click A and drag to point B as below; and the pullback level; Now we have a move A to B we can start to look for areas of interest, in this example we can see the pullback was to the 38.2% level. Some people are critical on the levels, for me I like it to tag the level and if it goes a little deeper then I still like it, if it doesn’t tag the level I would round it down to the lower level. Meaning if it fails at say 37.9% I would like to still think of it as only the 23,6% fib level. But there is no hard and fast rule on this. Now this gives me A and B with a 38% pullback for C. One way to trade using this could be a simple Buy at the break of B with a stop “Below” C Not telling you this is what you should do, it’s just one method some do use. Obviously, you could increase the stop and put it under A instead. Difference between Retracement and Extensions? The data you gather by assessing the pullback becomes valuable when looking for potential targets, so whilst we used 2 touch points (A & B) for getting the retracement level, the most accurate extension forecasting tool would be to use all 3 (A, B and C). Although it can also be done by using only A and B as well, It’s another one of those not so clear rules. Whilst the retracement tool gives us the pullback, the extension will give us some target areas. Let’s start with the simple (not my preferred) method; This is known as the extensions – 2 points (A, B) drag the curser from A to B and click and then back to A and click off. With this method you will notice in your back-testing those areas of interest will often be at the 61.8% of the A to B move. This means if A + B = 100, then the target would be around 161-2. Also, the 100% of the A-B move giving a target example of 200 and lastly the 1.618 level. Giving a target of 261-2 level. Again, no hard fast rule. This is just something seen over and over again. Expansion levels To start with go from A to B with the extension tool and pullback to C and click off. Assume you are using @TradingView Much like the Extension you will notice similar characteristics of the moves up (in this example of the uptrend) Something interesting I mentioned above this is a great tool to use alongside Elliott Waves, here’s an example of how this works and can fit into the charts. In this image above we use the same A point as a starting point, B becomes the 1 and 2 becomes the C. We can then work the Fibonacci extension & expansion levels to determine where 3 is likely to go. And then we can use the retracement for the pullback for (4) as well as new extensions for the projection of the 5th wave. A few months back, I wrote an article here on tradingview on the psychology on the charts, it’s worth highlighting that here. Click the link/image to view the article; Nothing is 100% certain, but using these methods will help give you a better understanding of waves and swings, logic for pullbacks and reason for extension levels. I hope this helps someone out here! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
FX:XAUUSDEducation
by Mayfair_Ventures
132
Learning the TradingView Platform: Exploring the Top Panel Pt.2In this video we will explore: Indicators and Strategies Fundamental metrics for stocks Indicator Templates If you would like to learn more about these items, check out the great material we have in the help center and on our blog. 📚 🤔 📚 Indicators www.tradingview.com Fundamentals www.tradingview.com www.tradingview.com Indicator Templates www.tradingview.com Did you learn about anything new that you may use from now on? Let us know in the comments below 👇 👇
NASDAQ:TSLAEducation
by TradingView
53
Learning the TradingView Platform: Exploring the Top Panel Pt.1In this video we will explore: Symbol Search Time Interval Bar's Style Compare or Add Symbol If you would like to learn more about these items, check out the great material we have in the help center. 📚 🤔 📚 Spread Charts www.tradingview.com Time Interval www.tradingview.com Compare Tool www.tradingview.com Did you learn about anything that you may use from now on? Let us know in the comments below 👇 👇
NASDAQ:QQQEducation
by TradingView
18
A trading plan - What is it and why do you need one?In one of my previous publications I stated that the majority of new traders fail in the first 90 days of their trading "career". I also mentioned that one of the reasons for it was the lack of a trading plan. So what is a trading plan and why do you need one? Rather than explaining, I decided to give you an example. Below is an elaborate example of a trading plan. If you read through it, you'll understand what purpose it serves on a daily basis. The goal of this publication is to give you an idea on how to build one for yourself that fits YOUR needs. ############################## TRADING PLAN 1️⃣ Trading Philospophy/Psychology I believe successful trading is a learned SKILL. It is a science, and consistent profitability is achievable and can be duplicated. I define success in trading as total financial freedom. The ability to stay home with my family. The freedom to choose my own schedule, and the ability to provide those I love with every excess, comfort and opportunity possible. My mental state is a major factor in my success as a trader. I will constantly assess and adjust my trading state in order to mainatin a mindset conducive to greatness. I accept as a fact, that my success is unlimited. I can achieve anything. Where others see impossibility, I will see unlimited opportunity. I will be disciplined in every regard, and at all times as it relates to my trading plan and execution. I recognize that I am in the markets to become a full time trader. I am interested in profit. Trading is my business. I accept as a fact that I will have losses. I will apply strict money management rules in order to limit those losses and maximize my profits. Markets control themselves, my sole goal is to participate. I trust my setups as I have backtested them and know how they perform historically. I am an aggressive swing trader in the forex market. I use harmonic patterns and structure as my basis for entry in the market. I will continue to educate myself on every aspect of trading, with the goal of broadening my market knowledge, and expand that knowledge into cryptocurrencies. Setbacks are expected, but failure is not acceptable. There is only one option, only one end ... Success... 2️⃣ Trading Goals On a daily basisI will try to find 2 good trade setups that answer my risk/reward criteria. I will not trade more than 2 setups per day. My goal is to reach 60% profitability, which at a Risk:Reward ratio of minimum 1:1 will guarantee constant increase of my equity. On a monthly basis I strive to achieve an equity growth of minimum 5%. My goal is to become a full-time trader. In order to switch to full-time trading and quit my daily job, the following requirements need to be met: A reserve capital needs to be built up that allows to maintain my current lifestyle without any other source of income. 50% of my total average profits per month should cover my monthly expenses, allowing me to live off trading while building my equity If above requirements are met on average 6 months in a row, I will quit my daytime job and commit to full-time trading. 3️⃣ Daily Routine Each morning I will wake up no later than 07:00, take a shower and have breakfast. The latest at 08:00 I will start my analysis and look for potential trade setups. I will also check what news is relevant for that day. While I am still on my daytime job, I will enter my trades with a market order if setup occurs during analysis time, with a limit order if it falls within my daytime job working hours. Limit orders will be avoided as much as possible once I amable to revert to full-time trading. On Mondays I do not place any trader before the US session open. On Fridays I will not place any trades after the NY mid-session. I will not open a new trade within 4 hrs before an important news even is expected/planned that might have an impact on the currency pair in question. I will aslo wait at least 1 hour after the news event to open a new trade for that pair. Therefore it is extremely important to be aware of upcoming news events. 4️⃣ Technical Analysis I will perform a top-down analysis of every pair that I trade during my daily technical analysis. I will determine the daily timeframe to determine whether the pair is trending or in consolidation and to determine relevant structure zones. After that I will go to my trading timeframe 120/240 minutes to look for potential trade setups. 5️⃣ Trade Setups 🅰 Structure Trades ➖ Bounce of structure: ► Trading Method: check for minimumof 3 instances within the last 15 days where price action bounced off the structure, wait for candle closure and enter next bar market ► Targets and Stop Loss : § Trend following - TP1: 75% position size at .618 retracement of previous move - roll SL to 0.382 fib - TP2: 20% position size at 100% retracement of previous move - roll SL to 0.618 fib. - 5% of position remains open with a trailing stop 25 pips (and maximum.618 fib) § Counter trend & Consolidation - TP1: 75% of position size at .382 retracement of previous move - roll SL to break even - TP2: 20% of position size at .618 retracement of previous move - roll SL to .382 fib - 5% of position remains open with a trailing stop 25 pips (and maximum .382 fib) ➖ Break of structure: ► Trading Method: wait for break and close below/above previous structurewith a min of 20 pips, then look for a retracement into previous structure. If structure holds on candle close, enter next bar market. ► Targets and Stop Loss: - TP1: 75% at lowest low/highest high of the move that broke the structure, roll stops to break even - TP2: 20% at 1.618 extension of previous move - roll stops to previous LL/HH - 5% of position remains open with a trailing stop 25 pips (and max previous LL/HH) 🅱 Harmonic Patterns ➖Bat pattern .... * * Note : I have omitted the rest of the setups here to keep the publication a bit shorter 6️⃣ Traded currency pairs EURUSD GPBUSD USDCAD EURNZD ... 7️⃣ Weekly evaluation In order to improve my trading analysis and to learn from my mistakes, during the weekend I will do an analysis of my trades during the week. To be able to properly analyze trades: I will keep a journal of my trades with entry, profit targets and stop loss. I will alos make ascreenshot of the analysis done before entering the trade and the result after the trade is completed On the completed trade screenshot, I will makr any related events that might have influenced the trade. I will make a list of eventual mistakesmade and create an action plan in order to avoid them in the future. This action plan will be added to this trading plan. 8️⃣ Final Notes This trading plan is my road map to success. Not following this plan will result in inconsistent results and potential failure. Sticking to the plan is a must in order for my trading business to succeed andto becomean independent consistently profitable trader and free myself from working for an employer. It will give me financial freedom and is the only way I will be able to reach my goals. 💪🏽 STICK TO THE PLAN! 💪🏽 ############################## 💡 Alright, so now you saw an example of what a trading plan could look like. Having a clear and concise trading plan is crucial for concistent trading results. ❔ Do you have a trading plan? Does it look similar? Is there something you think is missing? ❔ If not, was this publication helpful and will you create one for yourself? Why? Why not? Look forward to your comments below. Oh, and if you like this post, you know what to do! 👍🏽 Thanks for your visit! 🙏🏽 PS : also check out my other educational ideas below
Education
by Nico.Muselle
98