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Grasping Forex Volatility: How to Trade in Choppy & Calm WatersWhen it comes to the forex market , volatility isn’t just a side effect—it’s the main event. The constant ebb and flow of currency prices can be exhilarating or exasperating, depending on how good you are. Volatility can shift from a calm sea to a rogue wave, often without warning, leaving traders either riding high or clutching their lifebuoys. To help you navigate the forex waters like a pro, especially if you’re a newcomer, we’ve whipped up this Idea with some key insights and revelations. The Art of Trading During High Volatility High volatility tends to be thrilling—big price swings, rapid moves, and plenty of adrenaline. For the well-prepared trader, these market conditions are like surfacing a giant wave; the payoff can be huge, but it demands skill, timing, and control. Why High Volatility Happens Interest rate announcements, economic releases, geopolitical turmoil—high-impact events send volatility soaring. During these times, spreads can widen, price slippage creeps in, and liquidity often gets tighter, making precision essential. While the reward potential is high, the risks are right there with it. Think of high-volatility periods as power tools; they’re incredibly effective in the right hands but can quickly cause damage if used recklessly. Strategizing in the Fast Lane When volatility spikes, flexibility is key. One popular approach is to shorten your trading timeframe. Rather than holding out for the moon, focus on capturing smaller, rapid gains and set tighter stop-loss levels to limit downside. Pay attention to the economic calendar —if the Federal Reserve is set to speak, or if non-farm payrolls data is due, get ready to adapt fast. And if you’re following price trends, make sure to use a healthy dose of confirmation bias: watch those moving averages , MACD signals , and RSI readings , and let them do their job before you jump in. Finding Opportunity in Low Volatility Markets At the opposite end of the spectrum, low volatility often gets a bad rap. Price moves seem sluggish, the market consolidates, and excitement seems as far away as Friday on a Monday. But low volatility doesn’t mean no opportunity. It simply requires a shift in tactics. Why Markets Go Quiet Periods of low volatility often occur in the absence of major news or when traders are holding back, waiting for an upcoming event. These consolidating markets are common around holidays, just before important announcements, or in times of economic stability. Reading Between the Lines Trading in a low-volatility environment means you’re often dealing with range-bound markets. Here, the game is all about patience and precision. Use support and resistance levels as guardrails—when prices reach the top of a range, it’s often time to sell; when they reach the bottom, consider buying. But a word to the wise: low volatility doesn’t stay that way forever. A period of consolidation can quickly give way to breakout action. Keep an eye on breakout indicators like Bollinger Bands ; when they start expanding, it might signal the market’s about to wake up from its nap. Choosing the Right Pair Certain currency pairs are naturally more volatile than others. Major pairs like EUR/USD , GBP/USD , and USD/JPY see consistent action due to their high trading volume, but if you’re hunting high-pitch volatility, take a look at pairs like GBP/JPY , EUR/JPY , or any pair involving emerging market currencies like the Mexican Peso or South African Rand. Keep in mind, though, that with higher volatility comes a need for tighter risk control. On the other hand, when markets are in a lull, the majors are often your best bet. During low-volatility periods, the big, liquid pairs are less prone to the kind of wild fluctuations that can eat away at gains. Trading low-volatility pairs in a low-volatility market can keep you out of whipsaw territory and add some consistency to your returns. Leverage: Powerful yet Dangerous, and Not Always Your Friend Let’s get something straight: leverage in a high-volatility market can be like playing with fireworks. It’s all great until you get burned. When markets are moving fast, a little leverage goes a long way, but too much can quickly wipe out gains (and accounts). Dialing down leverage during volatile times can keep your trade within control without losing out on potential returns. In low-volatility markets, leverage might seem tempting as a way to amplify those smaller moves. But here’s the catch—just because volatility is low doesn’t mean you’re free from risk. Markets can turn on a dime, and it’s always better to live to trade another day. Use leverage sparingly, no matter what the market mood may be. Liquidity: The Grease That Keeps the Forex Machine Running Smoothly If volatility is the main character, then liquidity is the supporting cast, keeping everything steady when the markets get choppy. High liquidity—think major pairs like euro-dollar and dollar-yen—means your orders are filled fast and spreads stay tight, giving you a bit of breathing room. But liquidity can shrink fast in low-volume sessions, during major events, or with exotic pairs. That’s when spreads can widen unexpectedly, slippage sneaks in, and you might get more excitement than you bargained for. When volatility is high, liquidity can drop as big players step back, causing prices to jump erratically between buy and sell points. If you’re trading into the storm, consider the liquidity squeeze a warning: stick with high-liquidity pairs, watch those spreads, and avoid getting caught in thin markets. In fast-moving conditions, liquidity is your safety net, so stick with the pairs that offer deeper pools of it. In low-volatility markets, liquidity is usually stable. With tighter spreads and less risk of slippage, low-volatility conditions let you plan range-bound trades with more confidence. It’s one of the perks of low volatility: while big moves may be rare, the market structure tends to hold, keeping your trades smoother and more predictable. The Bottom Line: Volatility is a Double-Edged Sword High or low, volatility is something every trader has to contend with. The key is to approach it with strategy, patience, and adaptability. Anyway, here’s the advice you didn’t ask for: in high-volatility times, trade quickly, tighten your stops, and keep your leverage modest. In low-volatility environments, embrace the calm, focus on range trading, and don’t fall asleep on potential breakout signals. The forex market rewards those who play by its rules, adapt to its moods, and respect its risks. So, what kind of trader are you? Do you chase the thrill of big moves, or find comfort in the steadiness of a quiet market? Share your thoughts below!
Editors' picks
Education
by TradingView
4
What I wish I knew when I started Trading1. Study and Trade One Pair Only Focusing on a single currency pair can streamline your learning and help you master market dynamics. 🔸Choose a Pair: Start with major pairs like EUR/USD or USD/JPY. These have high liquidity and predictable patterns. 🔸Understand Its Behavior: Learn the fundamentals and technical characteristics of the pair, such as its volatility, reaction to news, and typical trading hours. 🔸Backtesting and Practice: Use historical data to understand how the pair moves under different market conditions. 2. Losses Are Part of Trading No trader is immune to losses. Handling them effectively is crucial for long-term success. Mindset: 🔸Accept Losses as Learning Opportunities: View losses as part of the cost of doing business, akin to inventory in retail. 🔸Detach Emotionally: Avoid the temptation to revenge trade or let losses affect your confidence. Practical Strategies: 🔸Set Risk Parameters: Only risk 1-2% of your trading account per trade. This limits the damage of a losing streak. 🔸Use Stop Losses: Predetermine the point at which you will exit a trade if it goes against you. This protects you from devastating losses. 🔸Keep a Journal: Document each trade, including reasons for entering, outcomes, and what you learned. Over time, patterns will emerge to guide improvement. 3. Develop Discipline and Patience 🔸Stick to a Trading Plan: Define your entry, exit, and risk management strategies before trading. 🔸Trade Less, Win More: Focus on high-probability setups instead of trading excessively. 🔸Give Yourself Time: Mastery in Forex trading can take years. Trust the process and aim for consistent improvement. 4. Build Resilience to Handle Losses Self-Care: 🔸Step away from the charts after a big loss to regain perspective. 🔸Engage in activities that reduce stress, like exercise or meditation. Review and Improve: 🔸Evaluate losing trades to identify errors. 🔸Adjust your strategy if recurring issues are found. 🔸Focus on the Big Picture: 🔸Track your performance over months or years, not days. This helps put individual losses into perspective.
Education
by ProjectSyndicate
7
Why Crypto Memecoins are Winning Hearts & Wallets ? The Memecoin Supercycle The Rise of Memecoins as Dominant Players - Performance Trends: Memecoins are currently outperforming other crypto asset classes, signaling a shift from the uniform growth of all cryptocurrencies to selective surges in niche categories. -Data Driven Insight: Among the top tokens, memecoins constitute a significant portion of those that have outperformed Bitcoin year2date Structural Issues in Traditional Crypto Projects -Overproduction and Valuation Problems: - The market is flooded with tokens leading to oversaturation and inflated valuations. - Many altcoins are launched with extremely high valuations, often benefiting insiders while retail investors bear the losses. -Centralization: Despite the decentralization ethos, token distributions are often controlled by insiders, alienating retail investors. Why Memecoins Thrive? -Market Fit: Memecoins resonate with retail investors due to their simplicity, cultural relevance, and the promise of community-driven gains. -Speculation and Momentum:Memecoins capitalize on speculative dynamics and community participation, often generating cult-like followings. - Emotional Utility:Beyond financial returns, memecoins provide entertainment, identity, and a sense of belonging—qualities overlooked by tech-driven tokens. External Factors Boosting Memecoins -Economic Pressures: Inflation, income inequality, and job insecurities are pushing individuals toward high-risk, high-reward opportunities. -Cultural Shifts: With declining influence of traditional institutions like religion, people are gravitating towards digital communities and narratives, such as those offered by memecoins. Memecoins vs Traditional Altcoins -Token Dynamics: Memecoins simplify the crypto experience by focusing on the community and token without overcomplicating with software utilities. -Competitive Advantage:Memecoins are described as “better products” for retail investors due to their accessibility, liquidity, and lack of insider-driven dilution. Predictions for the Future -Market Growth: there is a chance for $1 trillion market cap for memecoins, with some reaching valuations above $100 billion. -Shift in Dominance: Memecoins are expected to occupy a more significant share of the crypto market, outperforming utility-focused tokens and tech-backed assets. -Institutional Adoption: Venture capitalists and traditional finance players are likely to pivot toward memecoins as they recognize their market potential. Implications for the Crypto Industry -Reevaluating Narratives: Memecoins challenge the tech-first narrative of crypto by emphasizing community-driven growth and speculative value. -Tokenization of Faith:Memecoins symbolize a broader trend of financializing belief systems and creating "mini religions" around digital assets. -Retail-Centric Approach: The success of memecoins highlights the importance of catering to retail investors' aspirations for financial gains, fun, and community. Long story short the memecoin supercycle is not only a reflection of market trends but also a response to broader societal changes. Memecoins have become a powerful force in the crypto landscape by aligning with the emotional and speculative desires of investors. As the industry evolves, their role as cultural and financial phenomena is likely to grow, reshaping how we perceive and participate in cryptocurrency markets. Which meme coins do you think will pump 100X soon? and why!?
Education
by moonypto
WHY ARE YOU OVER TRADING ?Overtrading is one of the most common pitfalls that many go under, myself included I am no better , i have been here especially at the start of my trading and intermediate journey. The idea of making fast money is so appealing, but fast money often leads to fast losses..after making a loss I would enter another trade to try to recover but then that trade would end in a loss again.. DAMN, I KNOW... that revenge trading kills. After winning some few trades, I will feel so overly confident and believe that I will win consistently and end up taking trades with bigger amount of LOTS..and guess what ? another loss but this time around even a bigger loss. You end up thinking the market hates you and doesn't like you to see you winning consistently... but in reality, YOU ARE THE PROBLEM .. Are you looking at that chart 24/7 and you don't see any activity happening?? go catch a drink, go be with your family or play sport. Sometimes when you are bored you end up being reckless and end up not following your plan this leads to some poor quality trades and losses.. DONT BE LIKE THAT go have a life outside of the charts.... SO WHY YOU SHOULD STOP OVERTRADING?? 1. Emotional Stress: The constant highs and lows associated with overtrading can take a toll on your mental state. When trading frequently, emotional decisions may become more common, especially after a loss, which can lead to poor judgment and irrational actions. 2. Increased Transaction Costs: More trades mean more transaction fees, which can erode profits over time. Even if each trade has a low fee, they add up quickly and can eat into gains or increase losses. 3. Higher Exposure to Risk: Overtrading often involves taking on more risk than intended or necessary. This higher exposure can lead to larger losses, which could potentially deplete trading capital faster. 4. Reduced Quality of Trades: With overtrading, traders often lower their criteria for entry, leading to trades with lower probabilities of success. This dilutes the overall quality of trades and increases the chances of losses. 5. Account Depletion and Burnout: Over time, the constant focus and rapid pace of overtrading can lead to burnout, both mentally and financially. This can lead to reckless decisions that can potentially wipe out an account. 6. Neglecting the Trading Strategy: Overtrading often deviates from a well-thought-out trading plan or strategy, as it tends to be reactionary rather than calculated. It can prevent traders from focusing on setups with higher probabilities of success and sticking to their strategies. 7. Psychological Effects of Losses: The compounding effect of multiple small losses can have a profound psychological impact, potentially leading to a cycle of revenge trading where traders try to recover losses quickly, often resulting in even larger losses. YOU ARE WELCOME!!!
BITSTAMP:BTCUSDEducation
by ForxTay
INTROHi I’m Kim, a professional trading mentor specializing in Smart Money Concepts (SMC). With years of market experience, I help students master high-impact strategies such as Market Structure Breaks (MSB), Order Blocks (OB), Imbalances (IMB), Reverse Optimal Trade Entry (ROTE), and Stop Loss Hunts (TRAPS), enabling them to understand the core logic behind institutional trading. My mission is to provide traders with a systematic learning path, guiding them from beginners to professional traders. • Professional Training: From basics to advanced levels, covering key concepts such as market structure, supply and demand theory, EMH, and IPDA. • Practical Examples: Real-market case studies to quickly acquire practical skills. • Multi-Timeframe Analysis: Combine intraday and swing trading for a comprehensive improvement in success rates. Trade the market from an institutional perspective! Unlock the hidden logic of financial markets and become a profitable trader! • Email: zhouzhen706@proton.me
Education
by Smart-Trader-KIMMM
Your Pathway to Becoming a Technical Analyst INTRODUCTION Types of Market Analysis There are three primary types of market analysis: Fundamental Analysis: This involves analyzing economic indicators, political events, and other factors that can influence market prices. Technical Analysis: This involves studying past price and volume data to identify patterns and trends that can predict future price movements. Sentiment Analysis: This involves analyzing market sentiment, or the overall mood of investors, to gauge potential price movements. The Importance of a Balanced Approach While it's possible to specialize in one type of analysis, a well-rounded trader should have a solid understanding of all three. Ignoring fundamental or sentiment analysis can lead to unexpected market movements that can negatively impact your trading strategy. Key Points to Remember: Balance is Key: Aim to develop a strong foundation in all three types of analysis. Prioritize Your Focus: Choose one type of analysis as your primary focus and use the others to supplement your strategy. Stay Informed: Keep up-to-date with economic news, political events, and market sentiment. Adapt to Changing Conditions: Be flexible and willing to adjust your strategy as market conditions change. By understanding and applying these principles, you can improve your trading decisions and increase your chances of success.
Education
by ilesanmipepsi
BTCUSD - Using Fibonacci To ScalpGood morning everyone! A bit of a different video today - more of an educational video. This is how I use fibonacci when I do trading. Over the last couple days, Bitcoin has been a great asset to scalp. I don't leverage trade often, but when I do, I try and look for the high probability setups. Using the 61.8% internal retracement fibonacci (fib) level, you can find a great place to make a trade, both long or short. After dropping from 93k to 88k, we can measure that move and find where the price action would move 61.8% within it. That's where you attack. Risk management? Well, from there, you need to give yourself some wiggle room. As you can see from the video, price action navigated within my stop territory, but you can use the 78.6% fib level (beyond the 61.8 level) as a stop. Typically, if price action gets to that 78.6% level, it's not going to stop. Target? I outlined two ways to get a target, but typically when you do get a rejection off that 61.8, you should be targeting the -23.6% fib extension target. That's basically exactly where bitcoin landed - around 87k. That is the general rule of thumb when trading with fibonacci - which as I mentioned in my video update - is one of the ONLY leading indicators - meaning it can give you insights into the future vs just explaining in many ways what has already happened. Have a great day everyone!
Education
by bitdoctor
4
How are risk free trades done (a simple way)🟢 How are risk free trades done (a simple way) ✴️ Rationale The video shows how to take advantage of an incredibly famous chart pattern: 🥇 The TRIPLE BOTTOM chart pattern🥇 This pattern shows a strong support that have worked at least 3 times, and the video shows how to act when the 4th bottom is unfolding. The video shows how trade RISK FREE avoiding the risk as soon as the market allows you to do so. Step 1: Split Use 50% of your money for the risk free strategy and the other 50% to Take large profits. Step 2: Set up Stop Loss for both strategies Both strategies should share the Stop Loss, usually around 3 to 6% and trying to use some previous minimum/maximum prices to adjust. Step 3: Set up a Risk Free take profits The first 50% of your capital will have more or less the same Stop Loss and Take profits. Both will be around 3 to 6% of the buy level. If the take profits is hit, you earn enough to pay for the Stop Loss of the other 50%. Step 4: Find a reasonable Take profits for the returns strategy The other 50% of your money needs a take profits far away of the buy zone, meaning that you can potentially earn more than 3 times the risk. So at least find for 10% targets, if that's not posible this is not a feasible trade, there is too much risk. Always check previous support and resistance levels. Step 4: Enjoy There are 3 outcomes: 1. Both strategies do Stop Loss and you lose around 3 to 6% of the amount of the trade. 2. Your Risk free trade take profits work but your return strategy fail. this is a 0 to 1% return. 3. Both strategies work as expected giving you over 10% return on average. In the video you'll see opportunities in: NYSE:OXY 🟢 +10% trade finished (risk free gains) 🟢 +10% trade finished (risk free gains) 🔵 0% trade finished (risk free) 🟢 +25% unfolding (risk free phase) NASDAQ:DLTR 🟢 +15% trade unfolding (risk free phase) The idea: FX:EURUSD 🟢 200 pips trade unfolding (risk free phase) The idea:
NYSE:OXYEducation
by TopChartPatterns
Dollar's Rise, Gold's Demise◉ Abstract The US Dollar Index (DXY) and gold prices have a historically inverse correlation, with a stronger dollar typically reducing gold demand. Key drivers of this relationship include inflation, geopolitical tensions, and interest rates. With a 73-95% negative correlation observed over time, investors should note the current market outlook: the DXY is poised to break out above 107, potentially surging to 114, while gold prices may drop 5% to 2,400 and then 2,300. Understanding this dynamic is crucial for making informed investment decisions and capitalizing on potential trading opportunities. ◉ Introduction The relationship between the U.S. Dollar Index (DXY) and gold prices is significant and typically characterized by an inverse correlation. Understanding this relationship is crucial for investors and traders in the gold market. ◉ U.S. Dollar Index Overview The U.S. Dollar Index measures the value of the U.S. dollar against a basket of six major foreign currencies, including the euro, Japanese yen, and British pound. It serves as an indicator of the dollar's strength or weakness in global markets. When the index rises, it indicates that the dollar is gaining value relative to these currencies, while a decline suggests a weakening dollar. ◉ Inverse Relationship with Gold Prices Gold is priced in U.S. dollars on international markets, which directly influences its price based on fluctuations in the dollar's value: ● Strengthening Dollar: When the DXY index increases, it generally leads to a decrease in gold prices. This occurs because a stronger dollar makes gold more expensive for investors using other currencies, thereby reducing demand. ● Weakening Dollar: Conversely, when the DXY index falls, gold prices tend to rise. A weaker dollar makes gold cheaper for foreign investors, increasing its demand and driving up prices. Research indicates that this inverse relationship has been consistent over time, particularly in long-term trends. For instance, historical data shows that gold prices often rise when the dollar depreciates, reflecting a negative correlation of approximately 73% to 95% over various time intervals. ◉ Short-Term Deviations While the long-term trend supports this inverse relationship, short-term anomalies can occur under specific market conditions. For example, during periods of extreme volatility or economic uncertainty, gold and the dollar may exhibit a positive correlation temporarily as both assets are sought after as safe havens. This behaviour can confuse investors who expect the typical inverse relationship to hold. ◉ Additional Influencing Factors Several other factors also affect gold prices beyond the dollar's strength: ● Inflation: Rising inflation often leads investors to flock to gold as a hedge against currency devaluation. ➖ E.g. In 2022, as inflation rates surged to 9.1%, demand for gold increased by 12% year-over-year, pushing prices higher. Historical data shows that during periods of high inflation from 1974 to 2008, gold prices rose by an average of 14.9% annually. ● Geopolitical Events: Uncertainty from geopolitical tensions can drive demand for gold regardless of dollar fluctuations. ➖ E.g. In late 2023, escalating conflicts such as the Israel-Palestine situation and the ongoing Russia-Ukraine war contributed to a surge in gold prices, with reports indicating increases of over 3% in a week due to these tensions ● Interest Rates: When the Fed raises interest rates, it typically strengthens the dollar as higher yields attract foreign capital. A stronger dollar makes gold more expensive for holders of other currencies, which can reduce demand. ➖ E.g. During the Federal Reserve's rate hikes from March 2022 to early 2023, many investors moved away from gold as they sought higher returns from bonds and other fixed-income securities. This shift contributed to downward pressure on gold prices during that period. ◉ Technical Standings ● U.S. Dollar Index TVC:DXY The US Dollar Index has been stuck in neutral for two years. But if it clears the 107 hurdle, get ready for a surge to 114. ● Gold Spot/USD OANDA:XAUUSD ➖ Gold prices skyrocketed to 2,790, then plunged. Expect a 5% drop to 2,400. If that support cracks, 2,300 is the next safety net.
TVC:DXYEducation
by NaranjCapital
3 Steps to Trade Like a Pro Without Losing Your Sanity !🎯You’re here because you’re tired of watching the market run away without you, right? 🚀 You enter too late, exit too early, or worse—hold onto losers like they’re a long-lost love. 💔 It’s time to stop trading like a gambler and start trading like a sniper. 🎯 Buckle up, because this isn’t just another “blah blah strategy” blog. We’re breaking it down George-style: no fluff, no nonsense, just actionable steps (and a bit of sass). 🔥 Step 1: Spot the Uptrend—Your VIP Entrance to the Market Party 🎟️ Every great trade starts with one thing: momentum. That big blue arrow you see? 🌀 That’s the market screaming, "Follow me if you want to live… financially." What NOT to do: Don’t second-guess the trend. If price is moving up like a rocket, don’t be the guy saying, "But it feels like it might drop." 🙄 And please, for the love of pips, don’t trade against the trend. That’s like swimming upstream with a cement backpack. 🏋️‍♂️ George says: The trend is your bestie—until it’s not. Stick with it while it’s hot, but keep an eye on the exit door. 🚪 ⚡ Step 2: Check RSI—Because Not All Trends Are Honest 🤥 Here’s where it gets spicy. 🌶️ Price can look like it’s climbing Mount Everest, 🏔️ but RSI might be wheezing at base camp. When price keeps going up but RSI says, “Nah, I’m done,” you’ve got RSI divergence, my friend. That’s your first red flag. 🚩 Think of RSI as your market mood detector. If it’s throwing shade, pay attention. 👀 What to watch for: Price making higher highs while RSI makes lower highs. 📉 RSI hanging out near oversold like it’s got nowhere better to be. 😴 George says: When price and RSI don’t get along, something’s about to break—and it’s not your trading account if you play this right. 💸 💥 Step 3: Wait for the Trendline to Break—Patience, Grasshopper 🧘 Here’s the part where most traders mess up: impatience. They see a slight pullback and jump in faster than you can say, “margin call.” 😱 Don’t do it. Wait for the trendline to snap like a cheap rubber band. ✂️ That’s your confirmation. Then, and only then, do you make your move. The Setup: Risk $1 to make $3. Always. 🤑 You’re not here to “just survive”—you’re here to thrive. 🌟 Use a stop-loss. Because “hope” is not a risk management strategy. 🤦 George says: A trendline break is like the market giving you a wink. 😉 Ignore it, and you’ll regret it. Why This Works (and Why Most Traders Fail) 💡 This setup isn’t rocket science—it’s logic. 🤓 Spot the trend. Wait for the market to lose steam. Then confirm it with a trendline break. Simple, right? ✅ Yet 90% of traders will still overcomplicate it with 14 indicators, a gut feeling, and a sprinkle of overconfidence. 😵‍💫 But not you. You’ve got the plan, the patience, and now, the edge. 🔪 Final Words from George: 💬 Trading is like dating. If you’re too eager, you’ll scare off the good setups and end up stuck with losers. 😂 But if you wait for the right one—oh boy, it’s worth it. 💍 So, stop overthinking, trust the plan, and let the market come to you. Now go out there and trade smart. And remember: Patience prints profits. 🖨️💰 Cheers to making the market your ATM. 🥂 PS: Risk $1, make $3. It's the kind of math we all like! 😏
Education
by EdgeDotForex
Ticker: Celsius Elliot Wave Reference Model Here’s a reference model for Elliot wave & the 5 Motive Waves . This is ticker NASDAQ:CELH Please leave a like 👍 & a positive comment. Studying for success Assuming you had correctly identified the wave you were in, you could have protected your capital from significant losses. Celsius’ price plummeted from $99 to below $28, a sharp drop that highlights the importance of wave analysis in safeguarding your investments. This strategy & screening methodology can serve as a valuable addition to your trading toolkit. It’s currently 3 a.m. in Toronto, and I’ve spent the last three hours trying to solve this puzzle. 🧩 This is an Extended Wave 3 count. While other primary waves can extend, this is most common wave to extend. That means this charting principle & identification technique will work majority of the time at least on equities. Other assets have varying chart rules. Step 1: Identifying Wave 3 - Look for RSI in overbought territory (70+). - Switch to the highest time frame and identify the highest RSI level on both the price chart and RSI indicator. - This price area often coincides with the highest volume. Highlight the highest volume bars on your chart for confirmation. - Mark this point as Wave 3 and then work backward to identify the preceding waves. Step 2: Identifying Primary Wave 1 & primary wave 2 As you are aware primary wave 1 is the first of the primary wave. Find an area on a chart where price has declined significantly and has created an accumulation box. Mark out the strongest impulse from the box, this should signify wave 1. Wave 1 can be seen as the start of the major move. - Perform a visual scan of the ticker you’re analyzing: - Identify and mark accumulation zones using a rectangular box. - A strong price breakout from an accumulation zone typically signifies the start of Wave 1. - If you’ve already identified Wave 3, you’ll notice Wave 1 is connected to it by a retracement (Primary Wave 2). This relationship should make Wave 1 & 2 &3 (sub 3)easier to spot. Step 3 Primary Wave 3 / Sub wave 4 Retracement & final wave 3 - Wave 3(4) Extension: This retracement might appear to be a Primary Wave 4, but it’s actually the final wave before the extended Wave 3(5). Confusing? I know! Wave extensions are complex. Pay close attention to RSI levels to accurately judge this subwave. Quick Tip: Use the Fibonacci extension tool: 1. Drag from the bottom of Primary Wave 1 to the top. 2. Then drag again to the end of Primary Wave 2. 3. This will mark the 1.618 level, which is often where Subwave 3 of Primary Wave 3 ends. This is the highest price point before Subwave 4’s deep or flat retracement. • Now that you’ve identified Subwave 3 and Subwave 4, you can confirm the Primary Wave 3, which connects to Subwave 4. This will be the next impulse. Step 4 Identifying Wave 4 - Notice the next major accumulation / basing pattern / deep retracement after primary wave 3. Done! Very nice! Step 5: Identifying Wave 5 Similarly to how wave 1 connect to 2 wave 4 connect to wave 5. Done ! b]Final Mentions Point 1 - Notice M pattern extended wave 3(5) aka ( wave 3 final) and primary 5. (M) pattern often called double top. Point 2 - Notice the connections of both the top & bottoms of waves 3(5) and primary 5. Creates a symmetrical triangle pattern which would flash warning signs before the huge price descent. Point 3 - Notice the RSI where you think a new wave started it was just a sub wave in an extensions or a higher time degree Elliot wave. Point 4( can be seen on 4hour time frame) Note the head & shoulder which triggered & signified the end of wave 🌊 sent price from $98 to $26. That is it for this tutorial / reference guide. Please leave a like and a positive comment this took lots of time. If you got to this Part drop your favourite emoji in the chat there are mine : 🌊🤝🎯 Thanks, C Lemard
NASDAQ:CELHEducation
by coilemard