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How To Lose Money With CONFUSION (timeframe mixing) The issue for many new traders is understanding the correlation between timeframes. We often get caught up in indicators, news hype, chat room posts, and various other things. One of the biggest challenges I see when talking to new traders is simply the lack of "experience" in reading multiple timeframes. This causes confusion and even self-doubt. The issue with the internet being so vast is there is a lot of info - but what do you go with & why? In this post I have tried to "dumb it down" - the simple idea is to pick your timeframes based on your trading style. Now if work gets in the way and you need to trade end of day or even swing (Longer-term) then really, you shouldn't stress so much about a 15 minute candle. A lot can happen throughout the day. But on the opposite side of the spectrum, if you are sat in front of your screen every minute the market is open. (scalping) then trying to work out what the monthly is doing whilst you hold a trade for an hour is not going to affect your trade (in general). To give you a great example of this - I trade COT data as it's swing, with Monthly and weekly bias. I will have a mentee say something like "COT is a buy, but the price has dropped". Yes if you're looking at the 4-hour candle. If you think what institutional players can manage in terms of drawdown, especially using hedging techniques. It's far greater than the guy investing £5k of savings into Bitcoin. If a hedge fund buys Bitcoin at 45k and the price drops to 22.5k - the likelihood is they have a hedged position & will be buying it all back at fair value. Whereas Mr £5k has lost some sleep & half of his capital - bailed, only to see the price shoot back up above his original entry. You think of someone like Elon Musk - if his entry of a Billion Dollars was at 40k (example) and price drops to 20k, he has a paper loss of 500m for sure, it will hurt. But again if the Tesla share price drops from 800 to 700, he has a paper loss of (say 20 Billion) - a 500m loss on paper is less of a concern. *** You get the picture. Investors & traders know that things don't just moon! they have dips, impulsive moves and so on. So take the charts into account - You have an idea of what timeframes to pick based on your own personal availability or your style you have already identified. As a scalper it's easy to use 4 hour or even a 1 hour candle for your bias - a 15minute for a local area of interest & an entry on a 1m - 5m chart. (example only). If you trade swing trades (depending on the overall time & expectations) a weekly bias, a daily interest and a 4hour trigger could be what you look for. Here are some examples; In these examples - all I have done is used 1 tool. This is only to show the idea - If stochastic is up then I want to be Bullish, if down I'll consider Bearish moves. Keep in mind this could be anything from above/below a moving average, a key price level or a magnitude of other things. Even other tools like RSI for example. Example of step down The idea is this gives you a directional bias. Then we look at the area of interest. And finally - we want to look down on the next timeframe for the trigger (entry) Traders can easily get confused with one timeframe saying one thing and the next timeframe up or down saying something else. If you can treat it like a tick sheet, you can step down with confidence and work on a strategy favouring your directional bias & that's in confluence with the time period & your expectations. This really is an oversimplified breakdown. Just to give a general idea. Have a great week! 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.
Education
by Mayfair_Ventures
10
3 White soldiers in inverted H&S pattern formationHello everyone, This is updated review for chart you can see below The inverted Head and shoulders ( just painted out as I was previously expecting. But what is good on it is actuall support by three white soldiers candlestick pattern on that Monthly chart whhich is forming We are far away from monthly closing but if it is about to close like it is or higher then ... What does it mean ? 1)What Is a Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. 2)What is Inverse Head And Shoulders? An inverse head and shoulders, also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. 3)What Do Three White Soldiers Mean? Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. These candlesticks should not have very long shadows and ideally open within the real body of the preceding candle in the pattern. 4) What Do Three White Soldiers Tell You? The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji. Bitcoins dominance is on the other side very likely to drop lower as it paints exactly the opposite pattern the bearish one Head and Shoulders 5) The Difference Between An Inverse Head and Shoulders and a Head and Shoulders The opposite of an inverse head and shoulders chart is the standard head and shoulders, used to predict reversals in up-trends. This pattern is identified when the price action of a security meets the following characteristics: the price rises to a peak and then falls; the price rises above the former peak and then falls again; finally, the price rises again but not as far as the second peak. Once the final peak is made, the price heads downward, toward the resistance found near the bottom of the previous peaks. ChaChain ------------- Disclaimer: I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only. KEYWORDS trading, bitcoin , bitcointrading, profitable trading, profittrading, profit trading, secret, divergence, bull divergence, bear divergence, divergencetrading, divergence trading, trading strategy, how to trade bitcoin , bitcoin trades, bitcoin trading, make profit, take profit, trading strategy, trading technique, successful, successful trader, successful technique, successful strategy, successful secret, how to trade, trend analysis, technical analysis , indicators, rsi , relative strenght index, let it rain, successful life, easy strategy, easy trading, easy technique, make money, crypto investing, investing, crypto, cryptocurrency, cryptocurrencies, mentoring, money, chartart, beyond technical analysis
CRYPTOCAP:OTHERS.DLong
by Anoinvest
15
BTC/USDT - Update. Head and Shoulders Formation or Bullish Flag?Hello everyone, analyzed the BTC/USDT pair Now you need to be extremely careful. Since the price is consolidating in the same range, with tightening to the level of market makers. As we can see, the price is pushed away from this level 49500-50000. The order book indicates a large accumulation of sales. Now it is important to understand what will be done on the market, whether they will form a bullish flag, in which the second impulse of the "pole" is equal to the first, or they will make a "head and shoulders" pattern. Be attentive, do not risk your money. Go to my free channel and chat with other traders. Link in the description "This is just my opinion, trade with your trading system." "Have a nice day everyone and comeback again."
by CryptoJaegerB
5
BTC/USDT - heads and shoulders - what to expect? BITCOINHello dear friends. New near-term goals for bitcoin for the day (this data is sent to me by my bot assistant. Within 1-3 days. The price will be adjusted, as well as one of these boundaries will be broken. Upper limit: 50555 - 51050 Lower limit: 43650 - 44550 BTC / USDT coin under consideration Where I want to start is that I'm wrong, and a few days ago, we had 3 negative positions where we lost a little money. But the loss was returned, earned, and for the given moment we are in a good plus. So I write right away - this is not financial advice, this is not a recommendation, and I am also mistaken, therefore, you should not take everything as if I forced you. For this coin, the work takes place in a channel, a very large channel of accumulation / distribution of positions between a large player and simple traders. The chart shows that the price was lowered to the middle of the channel, and the area was tested from the bottom up. This suggests that the buyer will defend this zone in order to bring the price back to the 49000-50000 level. Also, according to the FIBO grid, the price reached just the 0.618 level - where this level is corrective. But I implore you to be extremely careful now, since the fact that the price is consolidating in a descending, widening wedge - the price may drop even lower. All you have to do is slide past the 48250-48580 level now. It is the turning point. If the price is fixed there at 2h TF, you can try to look for a place for a long. To work out the pattern - HEAD AND SHOULDERS (secondary) Another note is that at 30m TF - the price is consolidating in an expanding wedge, with a tightening to 46300-46600. If this zone is broken and the price reaches the level of 46000 You can look for a place for short positions. The volume in the market will weaken, liquidity in the market suggests that something very strong and inevitable will happen soon ... 12CH TF - forms a global inverted head and shoulders pattern But I have a premonition that we will fall very strongly, having collected liquidity, making a correction by 40-50% from the top, and then it will be possible to look for a place for long positions. Globally - for me it is a short, if within a day, then lower the price to the level of 46000 and below, and even test the 45000 zone. Since it is the 45000 zone that is the trend reversal now and the price hike down to 43500-43850 This Channel is not financial advise, It's My opinion and My observation: @opptrade ❗️❗️❗️Disclamer:❗️❗️❗️ Dear friends, traders. My trading ideas here are not financial advice or coercion into action. I am not responsible for your trading and how you follow all aspects of correct trading. - I do not recommend that you trade AT ALL if you do not know what risk management is, money management. - I do not recommend that you trade without a STOP LOSS. - And I'm not responsible for your "make millions of dollars fast" gag - I am only showing you the charts that suit me for certain positions. - For each position - RESPONSIBILITY LIES ON YOU. If you don't use all of the above, your deposit will soon become $ 0 - Therefore, if you decide to follow my positions - Take responsibility for where the bad outcome may be. In time, i to bee wrong too, and have a loss. But with the correct observance of the indicated points, which trade with me others traders - they earn (NOT IN A DAY, but in the medium, long term) I am only showing you how this or that scenario can work in trading.
by UnknownUnicorn13204076
BTC AI PredictionI've been running several algo's (only super_simplified versions here on TV) at the same time attempting to compute Probability distributions (DL based on SVM) of a mean reversion for COINBASE:BTCUSD at this level, and using Convolutional neural networks, to map current price action patterns with historic chart patterns across multiple sectors. Here's the Alpha: According to my model we should see a retest of the 54k-55k level before rejecting and correcting down to the mid 30k's. Note: Probability theory is just PROBABILITY. Nothing is for sure. Human emotions are too random to accurately predict. :) MM
COINBASE:BTCUSDShort
by yinandyani
3
UMA/USD 4h Possible Cup and Handle by the End of MarchPlaying around with the price predictions I've came over the potential for a huge Cup and Handle pattern for the Unified Market Access USD pair. Of course this is just one of possible scenarios and yeah, it's a positive one. Let's watch what will happen soon. Meanwhile I'm using the market dip to perform dollar cost averaging for the UMAUSD pair. This is not an investment advice as I'm not a financial advisor. Make your investment decisions at your own risk and perform your own researches. And REMEMBER: Likes and comments make your trades much more successful :)
BINANCE:UMAUSDLong
by A_10W_Gene
2
EURUSD SHORT: TRIGGER AND ENTRY USING RISING WEDGE PATTERN Price sold below the RWP (RISING WEDGE PATTERN) to 1.20952 before a pullback to retest lower channel trend line. A retest of the lower channel trend line is the trigger for a short entry which is bearish until the next logical support region. The first support region is at 1.20867-1.20789 and the second at 1.20269-1.20198 region on the chart. The strength of a RWP depends on the measure of convergence of the trend lines at the apex of the channel trend. This is a good pattern for a short entry within a bullish trend. Hope you've enjoyed the read, more RWP analysis ideas are welcomed!
by dvburn3r
XRP/USDT - Cup with handle. UPTREND❗️❗️❗️ More Trading Charts here: (LINK IN DESCRIPTION) ❗️❗️❗️ Good afternoon dear traders or those who want to trade, but do not know where to start. I haven't written posts for a long time, but look at the market, there is something to work on and positions are rushed every day in large quantities. I decided to share one of them with you. Many people love this coin, while others hate it. I make profit on it. The price has been consolidating in a downward channel for a long time. This is a bullish trade within which an under-block figure in the form of a cup with a handle is formed. I am still waiting for the trade with the formation of the cup handle and after that impulsive growth. Therefore, we take this asset under the gun, find our entry points and make a profit. ❗️❗️❗️Disclamer❗️❗️❗️ Dear friends, traders. My trading ideas here are not financial advice or coercion into action. I am not responsible for your trading and how you follow all aspects of correct trading. - I do not recommend that you trade AT ALL if you do not know what risk management is, money management. - I do not recommend that you trade without a STOP LOSS. - And I'm not responsible for your "make millions of dollars fast" gag - I am only showing you the charts that suit me for certain positions. - For each position - RESPONSIBILITY LIES ON YOU. If you don't use all of the above, your deposit will soon become $ 0 - Therefore, if you decide to follow my positions - Take responsibility for where the bad outcome may be. In time, i to bee wrong too, and have a loss. But with the correct observance of the indicated points, which trade with me others traders - they earn (NOT IN A DAY, but in the medium, long term) I am only showing you how this or that scenario can work in trading. For all your actions, only you are responsible. 💠💠💠I am not a scammer and I am concerned about your trade.💠💠💠 This Channel is not financial advise, It's My opinion and My observation: @opptrade
Long
by UnknownUnicorn13204076
NZDUSD 4HR TIMEFRAMENZDUSD 4HR TIMEFRAME Market Structure: Bullish The purple rectangles that are placed are the equal highs/equal lows. I see a lot of liquidity where I placed the purple rectangles. Since it broke previous equal highs, I'm waiting for a retest right back toward the purple rectangle (resistance), then back up towards the green rectangle line which says (NEW TARGET AREA). The blue line where the green rectangle is placed is my TP. The buy setup is a 62 pip move. However, if price reverses toward the downside, I'll wait until it breaks support (bottom purple rectangle), retest, then make an entry. TP for sells are also placed & marked up. The sells are 83 pip move. If price goes either way, both setups are in place. REMINDER: Always take profit/partial profit at TP1. Price majority of the time retests that area, goes back to entry, then smash TPS.
by JOAxAgyeman
Chart Patterns Cheat SheetHello, traders! Here is a cheat sheet which help you to identify the most frequent and reliable chart paterns. I should tell you that the patterns from the group "indefinite" are classified as bullish or bearish in classical literature, but in practice we should be careful using it in trading decisions. BULLISH PATTERNS Inverted Head & Shoulders , Double and Triple bottom are the most simple, frequent and reliable bullish pattern. Let's talk about bullish flag . It usually occur on the uptrend. The volume is high at the beginning of the flag and decrease to the end until the massive breakout to the upside with high volume. The cup & handle is rare pattern and usually play out at the bigger timeframes. INDEFINITE PATTERNS The different types of triangles and wedges are very popular patterns and can be seen at the different timeframes. In classical books about TA rising wedge and descending triangle are bearish patterns, falling wedge and ascending triangle are bullish. But in practice it is very important to observe the side of it's breakout, as a result they can be bullish or bearish like the symmetric triangle . We should wait for the proper breakout confirmation to make a correct trading decision. BEARISH PATTERNS This patterns are the opposite to the bullish pattern, but work at the same way. If you want to learn more about some pattern please give us to know it in comments. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
16