Educational purposes only: if the bear market continues, one tool Im keeping available is bear vertical spreads. I dont want to go straight short the market, and buying high valuation is a no for me. So bear call spread might be worth a shot while waiting for bullish opportunities.
Hello traders In this example, we will explain how to trade with the trend and use liquidity as an additional confluence. 1) Price makes a new higher high, momentum is present. 2) After momentum, the price begins to create liquidity, as we talked about in one of the previous posts. Liquidity is a trap for retail and other traders. 3) We see that this is...
Previous parts of the post: Part 1: My Three Comrades: the Chart, the Screener, and the Watchlist Part 2: Two captains of the same ship The market is an element we take for granted. It can't stop when we're busy doing other things, and it can't work if the stock market is off and you personally have work days. The small investor's impact on the market is...
There's some curious personalities that trade (at least claim to trade) based on news, fundamental metrics, alt data n stuff. I don't mean invest, I mean trade. Well that looks like a skill to be proud off, superstimuli always feels cool aye? Good thing tho there no real reason in doing it all. The most precise term to explain non-market data is, well, everything...
Hey traders... Here is my chart setup if you want to copy and paste it. You simply need to click the megaphone at the bottom of the page, and select "make it mine"
There are people who trade based in order book exclusively & promote these so called orderflow trading platforms, even these days. Surely, it's a great deed to learn this interesting, exotic & unusual skill, but the thing is it's completely unnecessary. The real use cases for DOM aka LOB aka order book aka Level 2 data are mitigating adverse selection, reducing...
I can assume many people heard about other people using tick charts & tick-aggregated (xd) tick charts. You know, like 233 ticks, 512 ticks etc 1) It never makes sense to aggregate tick charts by ticks. You loose information. Unless there's a specific reason you're very well aware off, there's no sense in all these 64 tick, 89 tick charts or whatever many...
One of the reasons why a divergence on an "indicator" hasn't provided an expected result is because there was an info conflict with more data on lower resolution (aka higher timeframe was against it). The second reason is because these indicators don't know how to distinguish buying and selling waves properly, when they start and when they end, as explained in...
Imagine daily profiles put on each day on the chart, and let the words in purple provoke some fruitful doubts in your mind. The presented and advertised way of using volume & market profiles is essentially a way of approximating the real levels. This way is very bad. 1) The most fundamental and very obvious flaw is that it disregards the sequence of events. You...
Considering we are almost in 2k23 (Merry Christmas btw xd), obsession with returns & log-returns is hilarious: 1) It implies sampling, which is info loss by definition, I don't even wanna mention that most don't even bother with proper one-point estimates of dem datapoints, dem just use Close prices; 2) Then the differencing process itself, whatever the lag is,...
An important element of studying price action is often ignored, even though it is perhaps the most important one - at least for swing traders. WHO IS IN CONTROL OF THE MARKET AT THIS TIME? After all we all want to trade in the direction where the strength lies. In this example of USDJPY, note how large the recent bullish candles are. This shows momentum lies with...
On the chart, Oct '94 is a pre-test of 92.26 I'm not sure it's a good example here, but it'll suffice to explain this easy concept. Again, it's not the system's behavior principle, the reason of this microstructural phenomenon is all of us. Forgot to mention before... There's no such thing as, "A new wave started after "almost" hitting a level". NO. In 100%...
4 real, levels can't be re-positioned, but there's a lil detail. As explained in "Real levels: positioning and clearing", positioned levels can't switch direction, ie once a level was positioned as support it can't become a resistance, once a level was positioned as resistance it can't become a support. A positioned level can only be cleared with time, price or...
Hello everyone, Today, I'll like to talk a little about trading psychology. Many of us have had that particular trade that ruined our account simply because we believed that the price could never break that support, the price could never get to that resistance level, and the price can never get to that level. So we keep adding to losing positions because of the...
The more one masters psychology, the more one understands the Universe. 'Nicola Tesla' once made the fairly well know and often quoted comment: “If you want to find the secrets of the universe, think in terms of energy, frequency and vibration." One can only wonder what Nicola truly 'saw', 'felt' or 'visualized' or for that matter meant by this. Yet, all the...
The main purpose of analyzing waves is to understand when the current wave is exhausted aka overextended aka overbought aka oversold. What is every1 seem to miss is that exhaustion is not based exclusively on "price gone too far", but also on "too much time passed" and "not much volume was traded" as well. That's one of the main reasons why your comparative...
From all the dudes tryna solve it Wyckoff was the closest. He even figured out how levels get positioned as supports/resistances (he called it accumulations, re-accumulations, distributions and re-distributions). The only thing he was missing are the actual levels hehe (all these 4 volume absorption processes never happen "in the air", ain't no Phil Collins in...
Again as with the levels, first ima tell how to locate both real & imaginary waves, then I'll explain the principle itself, what are they, why it works etc, why we need em & how to use em. It's really easier this way. Let's start with imaginary waves. First, pls read the linked "Imaginary levels: fair price aka value", it has an explanation and another common...