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How to differentiate a fake-out from an actual break-outHappy Friday, sorcerers. Welcome on another educational post by Investroy! The trading and investing industry is a difficult one to succeed in as it has various complex details that you need to dig into both from technical and psychological perspectives. Predicting the price movement and understanding the logic behind it may be challenging at first. But as time passes and you gain experience, you understand the science behind price action and make more logical decisions. Today, we will talk about a rather puzzling issue faced by many beginning and experienced traders: the theme of differentiating fake price movements from real ones. Although, it is not always possible to separate the two to the full extent, it is feasible to build a plan around it and stick to it on a consistent basis. A fake-out is a failed attempt of the price to break above/below a key zone. Very often, it is associated with liquidity grabs and Stop Loss hunts. To demonstrate, looking at the illustration pictured on the chart, you can see how the price attempts to continue its bullish moves, but fakes out from the sideways-moving range and re-enters the borders of it instead. On the contrary, a breakout happens when price successfully penetrates a key level and continues its impulsive moves in the same direction Now, the question is: how to distinguish a real breakout from a fake one? Firstly, it has to be kept in mind that what goes up, must come down. In trading terms, after an impulsive move, a correctional one should come; after a breakout, a re-test should happen before continuing impulses. In order to identify whether a breakout is a fake or a real one, we should always look for a re-test of the penetrated zone after a break is completed. However, you have to keep in mind that it is not a 100% fact that a re-test will happen every time. Sometimes, breakouts will be so impulsive that price will not retrace back to re-test a penetrated zone. Nothing is 100% accurate in trading. Not every breakout will lead to a re-test before impulsive continuations. Not every fake breakout will seem like a fake-out at first. However, waiting for a re-test of a broken zone is a good way to evade fake breakouts and capture high risk-to-reward trades and opportunities. To conclude, if you want to make sure you don’t get faked out and liquidated, always wait for a re-test of a penetrated level before forming biases and executing positions.
BITSTAMP:BTCUSDEducation
by Investroy
9
Do not get caught in this trap!Good time of the day, friends! Rushing into trades is definitely among the top #3 common mistakes done by relatively newer market participants who we would call early sellers in this context. The chart/infographic above is pretty self explanatory, but let’s still cover some aspects of it by considering a following scenario: Market was moving sideways the whole week, you almost lost hope to finish the month in profits and now you see the up-trending channel with already 2 lower trend-line touches. You instantly get excited and set a long position in the area of a third touch. Well, next thing you know it plummets right past through it. Lesson learned, but what can be done to avoid that? Well, first of all “look for multiple confluences”. Does the third touch coincide with a potential support zone? If not, that already weakens the point. Was there any signs of bottom forming and reversal? Another strike if not. Did it coincide with any Fibonacci levels, for instance? No? You’re out. Going over mistakes is easy, as there are always so many things that can go wrong, but what’s an alternative then, you may ask. On the chart above, we also indicated a point where we would consider entering the mentioned trade. Patient execution with a proper Risk-Reward is a way to do it. Hope this helps, and tune in for more content for us!
BITSTAMP:BTCUSDEducation
by Investroy
12
5 LESSONS from the Bear MarketHi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 Bearish markets are a normal part of the economic cycle, but even after years and years of repeating processes and patterns, it can still be hard to embrace. The real value of a bear market may be that it gives investors the opportunity to gear up for the next cycle, in other words to accumulate and buy in cheap. It also helps you see the importance of managing your risk and diversification. For example - let's say you've invested 100% of your free cash into Bitcoin. IF Bitcoin were to trade sideways or lower for a longer period, lets say months, you have no capital left to invest in other potential opportunities. You are also missing out on rallies that may be happening across other markets. Your portion of diversification is definitely dependent on your initial capital investment, but try to diversify as far as your capital allows. For savvy investors, a bear market also creates a period for looking beyond emotional headlines and studying the hard facts — facts that can ultimately place them in a position to take advantage of coming opportunities. Periods of falling prices are a natural part of investing in the stock market. Bear markets follow bull markets, and vice versa. They are considered the “ebb and flow” of wealth accumulation. Now, let's take a look at 5 Things YOU should remember during the Bear Market : ❗ Periods of falling prices are a common part of investing / speculating ❗ An investment’s value will be greatly influenced by fundamental factors, and sometimes fundamental factors is enough to create a bullish or bearish market for that assets and related assets ❗ Diversification , (even though it does not protect anyone against losses), often provides the safest haven against the ebb and flow of fluctuating markets ❗ Invest over time, rather than make single lump-sum purchases. In other words, falling prices are the friends of dollar cost averaging investors ❗ Take a long-term view when investing in the stock market. Short-term fluctuations are natural. Try to invest in projects that are undervalued , rather than jumping in whilst a coin is in the middle of a parabolic rally. Check out this idea on ETH that covers dollar-cost-averaging: Remember that you’ll be bombarded with all kinds of economic information during both bear and bull markets. There will be reports, for example, about inflation, interest rates, and unemployment figures that may encourage you to either give up on the market or invest in it. To avoid being lured to either extreme, develop a financial strategy that accounts for risks you find comfortable. Then trust yourself and stick with the plan. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Short
by CryptoCheck-
30
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
The Cost Of Missing Your Best TradesWhat if your best trades were the ones you frequently do not enter? There are not many positives in missing trades because it's money you're not adding to your trading account. You're losing more than money when you don't enter your best trades. Let's dig in. Lost of confidence 😫 If you've ever said to yourself, "Why didn't I take the trade?" It's because you saw the setup. Your rules were met, but something inside of you couldn't push the button. It could have been your own thoughts. You could have feared losing the trade in result losing money. Either way, you lacked the strength to push the button. It's ironic how one button determines the fate of your abilities huh? Hear this, you can begin doubting your ability as a trader when you don't take your setups. Remember that your eyes see first and you must take action regardless of your personal thoughts or feelings. You used logic to see the trade so use it to enter the trade. Then let the trade tell you if you were wrong or right. Risk of losing trades outweighing the trades you don't enter. Have you ever looked at your trade journal just to realize you could be profitable if you'd enter all of your trades? Most traders I consult with hesitate the moment they realize they have a good entry. Did you catch that? They don't question the analysis. They question themselves the moment it's time to hit the buy or sell button. Like most traders, you're good until you have to show up to take action. This is common, but can also be the reason why you may not be seeing more profits than losses. Revenge Anyone? Revenge is a strong feeling. Taking action to get revenge results from the feeling of losing something so precious and your money is precious to you so it's only fitting you have a right to want it back. However, money loss doesn't always come from trades you've enter. Consider this: You see a trade. This risk to reward is 1:2. So you know you have a chance to double the amount you risk. You're excited. You see the outcome. So, you put a monetary value on the trade and realize if you win the trade you can win $1000. If you lose the trade you can only lose $500. Something happens. You never enter. It could be for varying reasons. You weren't at your chart because you got busy. You got called in to go to work. Price reach where you wanted to enter, but you didn't like what you saw. Either way you're not down $500. You're at a loss of $1000. That leads me into my last point. The cost of missing your best trades setups is the risk of making the money you desire. That $1000 could have gone a long way for you. It could have covered a car note. Paid your utilities for the month. Added more leverage to your trading account. Either way it meant something to you, but you can't feel it because you feel like you missed out on it. I get it. I've been there. You're not alone. You are learning something though. You're learning you don't want to keep missing these setups so you're going to do something about it. I have 3 suggestions for you. Let's see if you've thought of these: * Adjust your timeframes so they fit your schedule *Set pending orders *Trade less pairs so you can focus on your best setups Hear me well my dear friend, you may not always enter your best setups, but you can miss less. Keep your trading easy for you. Don't overthink the entry. Don't tell yourself you're wrong. Trust me, the market will tell let you know if you're doing things correctly or not. I pray you enjoyed this reading. If you have please like the post and share it. Please share your thoughts below. Many blessings to you, Shaquan ❤️
by ShaquanLopez
Gut feeling in trading.I hear many traders talking about gut feeling, especially when referring to very good traders. I hear them saying that you will, at some point, feel what the market will do next. Many explain it as a sixth sense or cannot it explain it at all. I say to them the explanation behind is a much simpler one. Gut feeling in trading, in most of the cases, is nothing else but subconscious pattern recognition. There is nothing magic here, it is simply related to how the human brain works in day-to-day life. The trader looks at his screen for thousands of hours. Every day, he tries to analyze the price movements, while the brain stores the information in an abstract way into neural maps . Millions of neurons fire and wire together and create complex memory banks which include associated emotional responses. Day after day after day, these memory banks are reinforced and restructured until the neural maps are hardwired. This process is all subconscious. The part which is even more interesting is the way the human brain retrieves the needed information stored in those complex neural maps . This mechanism is also done subconsciously and this is why many label it as “gut feeling”. So, when a trader instantaneously “feels”, in an apparently strange way, what he should do when he sees a particular market event, his brain has subconsciously identified a store pattern. You may ask yourself: So what? What difference does it make knowing this? I say it makes. When you understand how your brain works you should also realize that you have at your disposal an extraordinary working instrument, but this will not guarantee your success by itself. Those neural maps need quality data. Programmers are accounted with the saying “garbage in garbage out”. It’s the same with the human brain. If you don’t put the true intellectual effort in your day to day market observations, if you don’t approach what you see from multiple angles, if you don’t analyze your own emotional reactions, then your neural maps will be built on superficial data. You will only reinforce all sorts of ineffective pattern recognition processes, no matter how long you stare at the screens. By contrast, if you do it right, your “gut feeling” will evolve and become very valuable. Evolving as a trader is not only a function of how much time you spend trying. What really matters is what you are really doing and how you are doing it. This explains why so many traders cannot become profitable even after years of trying. They are caught in inefficient and superficial ways of looking at the market. So many retail traders rely exclusively on technical patterns. They don’t understand what really moves the markets and how those patterns are formed. They spend years and years switching from one technical indicator to another, without realizing they are unconsciously accumulating only superficial data. Some realize the trap … most don’t
OANDA:XAUUSDEducation
by Mihai_Iacob
17
Exit Strategies to Consider on Each Trade: a Complete GuideEnter, monitor, and exit are three vital steps to follow while trading. While most traders focus on how and when they can enter a particular setup, they pay less attention to their exit strategy. Today, we are gonna look into some popular exit strategies that we utilise in our personal trading. 1) Breakeven closure When the price is moving in our direction and is already a few key zones away from the entry zone, we make the trade risk-free by moving the Stop Loss level to the price of entry. If the Stop Loss gets hit, we exit the trade with neither a gain nor a loss. 2) Manual Closure In the process of monitoring, if the price does not play out according to our plan, we tend to make quick decision and exit the trade earlier than planned. 3) Target Profit We set a Take Profit (TP) order that closes the transaction as soon as it gets triggered. 4) Stop Loss
 We set a Stop Loss (SL) order that closes the transaction as soon as it gets triggered.
BITSTAMP:BTCUSDEducation
by Investroy
16
Dxy - Educational ContentHey Traders, #Educational Content, Trendline: We can draw trendlines, bullish trendline by connecting minimum of 2 Swing low points as show in the image attached. SMMA's - Smoothed Moving Averages: can be used as a support for the entries. along with the candlestick price action confirmations. when it touches the trendlines. as shown in the image above. Candlesticks Pattern: We can use this confirmation for entries, when it creates a candlestick pattern as Double bottom, triple bottom, or any bullish rejections after it hits the SMMA's as shown in the chart image above. Entries: - Entries Better entries shall be, once when its hits the SMMA's Stop loss: Stop loss Can be always placed below the impulsive moves. in a trending market. Targets: Targets can be set to the equivalent of the previous impulsive move/ to the Swing highs preferred firstly. Confluence for the trade entries: We can look for entries once the prices hits our trendlines, SMMA's and candlestick confirmations as show show above. Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle. Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.......
CAPITALCOM:DXY
by Tradelikemee
Elliott Wave DegreesRalph Nelson Elliott acknowledged 9 degrees of waves from the Grand Super Cycle degree which is found in weekly and monthly time frame to the Sub-minute degree which is found in the hourly time frame. He labelled them as below mentioned. 1 Grand Super Cycle 2 Super Cycle 3 Cycle 4 Primary 5 Intermediate 6 Minor 7 Minute 8 Minuette 9 Sub-Minuette It is a good understanding to start applying a wave count to a market from higher degree to all the way lower degree which you want to trade. you need to first learn about the labeling of wave degrees. Elliott Wave is a very helpful to understand the charts of any assets. the waves from the main degree are subdivided into intermediate waves which also subdivided into minor waves and the minor waves are also subdivided into minutes waves and then to sub-minutte waves, each degree of waves consists of one full cycle of motive and corrective waves. each degree of trend is labelled with a different style of label for a better understanding. If you want to trade in 4H so then you will look for and count the monthly, weekly and the daily charts is will. Hope you understand the concept of wave degrees.
Education
by TheLoserMan
How to calculate which lot size to useAs mentioned several times before, we risk 1% of our total trading capital per transaction. In simple terms, we risk 1 egg out of the 100 that we have in the basket in an attempt to get more eggs. However, even though the average price mark where we place our Stop Loss is 30-60 pips away from the entry price, SL levels set differ from one trade to another, and different currency pairs have various differences in pricing (major pairs have small differences for the most part, while minor and cross-pairs have big gaps in pricing). This article will demonstrate 3 random scenarios and illustrate which lot sizing is needed to be used based on the Stop Loss set and the percentage of the total capital risked while taking into account the size of the trading account. All numbers are imaginary in order to diversify the visualisation of the portrayed examples and give a better understanding of the case. Enjoy the idea and don't forget to drop your questions in the comment box below!
BITSTAMP:BTCUSDEducation
by Investroy
42
Finding your optimal performance 🏃‍♂️Most traders spend a good bit of time looking at charts. Well here is a chart we traders should all take a look at. The chart shown is the Yerkes-Dodson Law. The Yerkes-Dodson law is a proposition that people perform best at intermediate levels of arousal, and that performance is lower at high or low levels of arousal. The theory behind this is visually represented by the graphic in this idea. No arousal levels or a bored/laidback approach to life will mean no stress but no real performance in what you are trying to achieve or do. However when arousal and stress gets too high by pushing to hard, performance starts to decrease. It's about finding the right balance to achieve an optimal performance. A certain level of stress about what you are trying to achieve motivates you to study, learn or train in order to do your best. A sportsperson has to get bumped up before an event as well as train hard, But getting to worked up and training to hard could cause a decrease in performance when it comes to the event. Pushing not hard enough to pass an exam will lead to a fail as you haven't studied or don't care, But also pushing to hard could lead to a fail as you've let stress and anxiety take over forgetting everything you studied. Moderate levels of arousal is best for overall performance. This theory can be applied to your trading. Take a non interested approach or bored approach and you performance in this area will be affected. Less potential profits etc. Get to focused on your trading or trade to hard could lead to poor performance along with a load of stress in your life. You as an individual will have to self reflect and determine where you fit on the curve in the idea graphic. If you fell more success, achievement and happiness can be had, by all means crack on and go for it! However, if you are getting to a point where you feel you might have reached your limit, it could well be time to dial it back a bit. Don’t push to hard for it that you go down the opposite side of the curve. This theory can be applied to every aspect in your life by using it to balance all aspects of your life will also help your trading as well as work, relationships and everything else we all go through day to day. Thanks for taking time to read this. Darren 🙌
Education
by pow_removetheguesswork
The Inside Bar ConceptThe Inside Bar is a lovely pattern that shows consolidation in a valuable way. As you can see the candle parent candle creates the high and low that will low key to know the consolidation is over. Price staying inside this area tells you so many things ! 1. The Market volume is low in terms of trades being executed on the instrument. 2. Where price is at fair value 3. When price action is ready to leave fair value. Take a look at your chart and back test this. You will be amazed !
TVC:DXYEducation
by CandlesofKarma
1
Is mindset holding you back 🤔Trading can be a rollercoaster of emotions. Many traders are unaware of when their state of mind leads to underperforming trades and why it happens. We are all different and unique when it comes to trading, and understanding the type of trader you are is essential to your success. Traders can spend a lot of time studying technical indicators and strategies, but understanding the psychology driving your trading decisions is just as important. The first starting point of getting on the right path in regards to trading psychology and emotions is by having the right one of two mindset choices. There's two mindsets which will effect your trading results and progress massively. They are 'Growth mindset' and 'Fixed mindset' Of those two mindsets there is only a place for one when it comes to trading and that is 'GROWTH MINDSET' The graphic on chart shows the difference between the two mindsets. If you can't ditch the 'Fixed mindset ' you will never be able to progress in trading. No matter how great of a trader you think you are, or how well you think you handle your emotions. It's impossible to remove them from the equation completely when trading. When emotions are combined with a 'Fixed mindset' mentality however you are going to feel emotional pain and loss of money when it comes to your trading. Once you have learned to recognise your mindset, you can then begin the next important step of switching to the ' Growth mindset ' People with a ' Fixed mindset ' believe they are born with a certain amount of intelligence and that it is fixed for the rest of their lives. People with a 'Growth mindset ' however know that intelligence is not fixed and that you can in effect grow your brain. They see their traits as just a starting point and know that these can be developed by hard work, effort, dedication and challenge. Having a growth mindset can improve your progress and attainment and this is crucial in being successful as a trader. The brain can be developed like a muscle, changing and growing stronger the more it is used. Your abilities are also very much like muscles they need training in order to perform at their peak. You can learn how to do anything you want to do and you can get better at whatever that is with time and consistent practice. Even if you have what you perceive to be a talent or ability for something, if you never practice that talent or ability you simply will never improve. Applying this theory to your trading game will help you grow not just your accounts but as a person also. Get that 'Growth mindset' and start believing in your ability to change. Thanks for looking. Darren 🙌
Education
by pow_removetheguesswork
3
"Stop it, Picasso! Trading should be kept simple."Quick question: which of the two illustrations portrayed on the graph do you enjoy more? If your preference is the one on the right, then you should have definitely continued the legacy of the Renaissance era artists. On the contrary, if you prefer the one on the left-hand side of the screen, let’s become friends. Starting with the portrait (let’s put it that way) on the left, we can observe how everyhting is illustrated in a crystal clear way. Firstly, no indicators have been used, which makes it easier for us to read the chart. Second, it has been shown that with as few as 2-3 confluences, a trade has been executed. On the opposite side of the road, we have the portrait which is depicted on the right side of the screen. We can see how blurry, messed up and confusing it all looks. Two random EMA’s crossing each other, ABCD patterns, Elliott Waves, tens of thousands of Fibonacci retracement levels, random Support&Resistance levels and many other indicators have been added into the chart with zero purpose. Yes, indicators could and should be used as confluences. However, by adding tens of indicators into your charts, you are not beating the market. Just like in real life, everything should be utilised in moderation. The purpose of this idea is not trying to damage the reputation of indicator trading, but to show that pure price action will always be the king. Many beginning traders get tricked into believing that by adding multiple indicators into their charts, they will have a high win rate, a successful trading journey, long-term profitability. Little do they know that many indicators contradict to each other and perplex novices into entering random positions. Of course, as we always say, if it works for you, then go for it. Chart analysis is only a part of your trading plan. There is also psychology, risk management, discipline and so forth.
BITSTAMP:BTCUSDEducation
by Investroy
47
Some cool features on Tradingview!Many times we search for holy grail strategies that works and we tend to ignore some little stuffs that can help us defeat that 'Goliath', the giant market. We all know that there's no such thing as a 'holy grail' strategy. There are only certain things (simple things) that needs to be combined and when used well these can be good strategy to help us defeat that furious Goliath. In this article I am going to discuss about some cool tradingview features which are important to every trader and which we should not dare ignore. You might be familiar with these or perhaps already use these in your day to day trading activity. The first one is Alert. This feature allows you to set alerts on certain levels of interest or price. Once the market reaches the price or level you specified you get notified immediately by visual popups, audio signals, email alerts and email-to-sms alerts. You can set alerts like, "Alert me if Bitcoin crosses above $25000." You can set alerts on your trendline, indicators like moving average and once the market touches the desired level of your indicator you receive a notification. How cool is that! Instead of you watching the chart 24/7 to wait for Bitcoin to reach $25000, you can set an alert on that level so you get notified once price reaches there. Why alerts relevant in trading? Just like you need alarm in the morning so you don't miss an important appointment, you need alerts so you don't miss important trading opportunities. Alerts have really helped me to focus on quality trades. All I do is set an alert in advance if I see that Gold will reach a strong support in few days, because there can be a lot of interruption. Once Gold reaches the support level I get notified. Go have fun with your friends buddy, just set that alert and be notified once the market reaches your desired level. The second feature is Replay Replay tool on tradingview can be used to study past price action and trading history. Why is this feature relevant? Well, if you want to master your strategy one way to do is to study historical data or price action. With the replay tool it can allow you to go back moment in time and replay the same price action that occurred in the past. That way you can practice your strategy and see how you could have traded that market. The third feature is News/Headlines If you want to receive news and headlines of what is shaking the market then you should not ignore this feature. With just a click of a button you can view important headlines that is moving the market. What I find interesting about this is, the news or headlines you see is specified by the instrument that you are currently viewing on the chart. For example, if you are currently on EURUSD, once you click on the news icon, most of the headlines you will see there are those that will have a direct impact on that pair. How beautiful is that! Instead of you having to struggle to search for fundamental information affecting the market, this feature has everything you need to stay on top of financial news. The last feature in this article is Screener. Screener is a tool that can be used to scan and filter instruments based on market cap, dividend yield, volume to find top gainers and most volatile instruments. Why is this important? If you want to learn which instruments are gaining or weakening then the first place you need to go is to the screener. By looking at the stock screener it helps me gauge how the stock markets are doing thus it helps me have informed decision as to what to focus on and it helps me have strong conviction in my biased. Do you use these tools in your trading? Note: Some of these features you need to have a paid plan with tradingview for them to be enabled.
FX:NAS100Education
by Forexintelligence_NA