If price is from a strong downtrend and it creates a key level, it will start retracing and if it does not form an engulfing candle or a shooting star at resistance or a candle that is 50 percent of the bearish candle or above 50 percent, it will come back to test that zone and even create a lower low, and if it does again it will do the same thing and still test...
The Price Oscillator uses two moving averages. ✔ One shorter-period, and one longer-period. ✔ When 2 MAs cross each other the PO reads 0. The Price Oscillator technical indicator can show overbought and oversold areas. Strategy: Only go long in an uptrend. Only go short in a downtrend Uptrend strategy: Look for an oversold situation to open a buy position....
It's a channel. Nobody really knows for sure why channels develop. There are loads of theories. I'm not interested. A channel is usually discovered late, obviously because the channel is evolving and then you see it. Unbelievable as it is, it is there. So what do you do. Well, I don't give advice. What I do is understand that there may be limited opportunity...
YO TRADERS, This is just an educational post. Just thought of sharing how this HnS pattern formed and moved in the direction as expected. The video recorded is self explanatory on the formation of the pattern (Left shoulder - Head - Right Shoulder) formed between 3rd June 2020 and 11th June 2020. As you can see in the video this is perfect HnS pattern forming...
This is jut a summary of the most impactfull things I have gotten out of the internet for trading. In my opinion I think you NEED to struggle in the beginning and lose money, to get the feeling of how bad it is to be wrong, or your greed will cost you allot of money in the future after you invest more money. And as the guys in stream always say, invest what you...
Definition: An engulfing bar is a bar whose trading range totally encompasses or engulfs that of its predecessor such that it has a higher high and lower low. They develop after both down- and uptrends and represent exhaustion. They could be bullish engulfing bars which close higher than the open, or bearish engulfing bars which close lower than the open. A...
A little update/correction, just so You understand what I thought and what I said last year. Bottom line: Elon Musk MUST be right about this. As he is smarter then You, and after all, Tesla is His project, not Yours. First of all, He stated _last year_ that we can expect a 50% growth / year. Represented here by the thick magenta line. (Side note: That was before...
Bar patterns consist of one, two or few bars. Their usefulness lies in the fact that they can trigger signals at a relatively early stage in the development of a new trend and usually offer good benchmarks for traders to place low-risk stops. Overall, when considering these patterns, one key factor in determining their significance is the size of the pattern. Note...
We want to trade trendlines, but not all trendlines have equal importance. Whether price has touched a trendline or violated it, we should act based on whether the trendline is significant or not. The following three factors are usually considered when evaluating the significance of a trendline: the length of the line, the number of times it has been touched, and...
Trendlines are one of the simplest tools in technical analysis and about one of the most effective for price patterns since they form the building block for pattern identification and interpretations. What is a trendline? – A trendline is a straight line connecting a series of ascending swing lows in a rising market or the top of descending series of swing highs...
When price goes to a key level, that is, a support or resistance level, it will either hold and reverse price or it will break and be violated. There are no hard and fast rules for determining if a key level will hold and reverse price but I can give you some guidelines on what to look out for that would increase the odds that a support or resistance would hold....
1. Swing points: Previous highs and lows These points are intelligent points where one would expect support and resistance. They are high probability points because sellers and buyers made decisions on these points in the past and it is more likely that when price gets there again, due to people’s psychology being constant, they would tend to act on these points....
Support and resistance are points on a chart where the probabilities favor at least a temporary halt in the prevailing trend. Support is experienced when demand concentrates around a zone as price is in a downtrend and price finds it difficult to break below that zone. This is because traders have placed a high number of buy orders at the zone, preventing prices...
A market chart has two axes, the x-axis and they-axis. Where the x-axis registers the date, the y-axis registers the price. The y-axis has two methods for plotting it: an arithmetic scale or logarithmic scale. Whichever you chose will have implications for your trading. Arithmetic scale: On an arithmetic scaled chart, the spacing between price levels is equal....
Using swing points i.e swing highs and swing lows, to identify trends is one of the most basic techniques of technical analysis. This is also the building block for identifying price patterns and part of having high probability setups. Swing points are the maximum or minimum points on a trend or range. A swing high identifies the rising price extreme while a...
Intraday data is based on time frames from the 4 hours and below. For these time frames, the short-term trend in the daily charts will be seen as the long-term trend in the intraday time frames. For those who are keen to trade intraday time frames, they need to know that patterns on these time frames or charts have three principal differences from their...
It is interesting to study trends and how they interact because the price level of any security is influenced simultaneously by different trends. Hence, why we need to note some application of trend classifications as it applies to trend interactions. 1. When we see any specific price pattern, our first question should be: Which type of trend is being...