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S&P500 5 month Channel Up bottomed. Bullish reversal started.S&P500 / US500 is trading inside a Channel Up since the August 5th bottom. Wednesday's Fed fueled correction crossed under the 1day MA50 but stabilized yesterday and today found support over the 1day MA100 and rebounded. This low is very close to the bottom of the Channel Up and the 1day MA100 was the level that supported the early September pull back. The 1day RSI is also reversing, and the 3 times it posted a similar pattern inside the Channel Up, it was a bottom. Buy and target 6200 (+7.10% from the bottom). Previous chart: Follow us, like the idea and leave a comment below!!
CAPITALCOM:US500Long
by TheCryptagon
Technical Analysis of NIFTY Index - 30-Minute TimeframeDouble Top Pattern: The chart shows a double top pattern (marked as "Top 1" and "Top 2"), which is a bearish reversal pattern. The neckline for this pattern has been broken, confirming bearish momentum. The pattern suggests that the uptrend has reversed, leading to a downward move. Falling Wedge Pattern: After the double top, the index has formed a falling wedge, which is typically a bullish reversal pattern. The price has broken out of the falling wedge, signaling the potential for a short-term bounce. Targets: Immediate Upside Target: The breakout from the falling wedge suggests a potential recovery toward 24,200–24,300. Downside Target: If bearish momentum resumes, the index could move toward 23,500 as marked on the chart. Volume Analysis: The breakout from the falling wedge is accompanied by a slight increase in volume, which supports the bullish case. However, sustained volume is needed for the uptrend to continue. Support and Resistance Levels: Support: Immediate: 23,800 Stronger: 23,500 Resistance: Immediate: 24,200–24,300 Extended: 24,500 Moving Averages: The index is currently trading near its short-term moving averages, which could act as dynamic resistance. A breakout above these levels would confirm further bullish momentum. Fundamental Analysis of NIFTY Index Macroeconomic Environment: Global Factors: Uncertainty in global markets, including rising interest rates and geopolitical tensions, have added to the volatility in Indian markets. Domestic Growth: India's economy continues to grow steadily, supported by strong consumer demand, government infrastructure spending, and a robust services sector. Sectoral Performance: IT and Pharma: Defensive sectors like IT and Pharma have seen relative strength amid global uncertainties. Banking and Financials: Despite some recent corrections, banking and financial services continue to drive the index, supported by rising credit growth and strong results from private banks. Metals and Energy: Global commodity prices and demand from China remain key drivers for metals and energy stocks. Corporate Earnings: Indian corporates have shown resilience with steady earnings growth, particularly in the FMCG, banking, and auto sectors. However, margin pressures persist in some sectors due to higher input costs. Valuation: NIFTY's valuation remains slightly stretched compared to historical averages, suggesting room for further correction. However, strong long-term growth potential keeps the outlook positive. Key Risks: Rising interest rates globally could tighten liquidity. Any further escalation in geopolitical tensions or slower global growth could impact market sentiment. Conclusion: Technical Outlook: NIFTY has formed a double top, confirming bearish momentum, but a breakout from the falling wedge offers a short-term bullish opportunity. Upside Targets: 24,200–24,300 Downside Risk: 23,500 (if bearish momentum resumes) Fundamental Outlook: India’s economic fundamentals remain strong, supported by consumer demand and government spending. While the market faces short-term headwinds, the long-term outlook remains positive, making this an opportunity to accumulate quality stocks during corrections.
NSE:NIFTY
by TheWealthyInvestorbyDSAB
1-Minute Scalping Trading Strategies With Examples1-Minute Scalping Trading Strategies With Examples Scalping is a popular trading style capitalising on rapid, small price movements within minutes. 1-minute scalping strategies are often used by traders but require precise execution and solid understanding of technical indicators. This article explores four 1-min scalping strategies, detailing the indicators used alongside specific entries and exits. Understanding 1-Minute Scalping 1-minute scalping is a fast-paced trading style focusing on taking advantage of small price movements within a minute timeframe. Traders using this approach rely on 1-minute charts to make quick, multiple trades throughout the trading session. The primary goal is to accumulate potential small gains that might add up to larger returns over time. A scalp trading strategy requires a solid understanding of technical analysis and market conditions. Scalpers typically use indicators, price action patterns, and trend analysis to identify short-term market movements and potential entry and exit points. The rapid nature of 1-minute scalping demands precision and discipline, as even a slight delay can impact the trade outcome. One of the key advantages of 1-minute scalping is the ability to generate frequent trading opportunities, which can be particularly appealing during volatile market conditions. However, it also comes with higher risks due to the speed and frequency of trades, meaning risk management plays a significant role. Scalpers must also be aware of transaction costs, as frequent trading can lead to significant fees, which can erode potential returns. Choosing a broker with low commissions, tight spreads, and fast execution speeds is essential to maximise a scalping forex strategy’s potential. FXOpen provides an ideal environment for scalping trading strategies, with commissions from $1.50 per lot, spreads from 0.0 pips, and ultra-fast execution. Open an account! Four 1-Minute Scalping Strategies Now, let’s take a closer look at four 1-minute trading strategies. To apply these strategies, see how they work in practice, and access each of these 1-minute scalping indicators, consider following along in FXOpen’s free TickTrader trading platform. Strategy 1: VWAP + MACD Indicators Used - VWAP (Volume Weighted Average Price): VWAP calculates the average price a security has traded at throughout the day, based on both volume and price. It helps traders understand the trend and identify potential support and resistance levels. - MACD (Moving Average Convergence Divergence): MACD is an indicator that visualises the relationship between two moving averages. MACD settings for a 1-minute chart are standard: the MACD line is derived from the difference between the 12-period and 26-period exponential moving averages (EMA), while the signal line is a 9-period EMA of the MACD line. VWAP and MACD work well together by providing both trend and momentum analysis. VWAP helps identify the overall trend and significant price levels, while MACD offers insights into momentum changes. This combination can help traders determine entries by confirming trends and potential reversals. Entry - Traders typically look for the price to close through the VWAP, with the MACD turning from positive to negative or vice versa. This coincides with the signal line crossing over the MACD line. - Alternatively, another common entry point is when the price uses the VWAP as a level of support or resistance, confirmed by the MACD turning from positive to negative or vice versa. These triggers will likely occur within a few candles of each other, typically within 4 or 5 candles. Stop Loss - Stop losses are often set just beyond a recent high or low swing point, which helps potentially protect against losses if the market moves unexpectedly. Take Profit - Traders commonly take profits when the signal line crosses the MACD line in the opposite direction, and the histogram switches from positive to negative or vice versa. This approach allows traders to take advantage of momentum shifts and potentially lock in gains as the trend changes. - However, some may prefer to exit at a significant support or resistance level in order to maximise potential gains. Strategy 2: Keltner Channels + RSI Indicators Used - Keltner Channels: A volatility-based envelope set above and below an exponential moving average. The channels are typically set to two average true range (ATR) values away from the EMA. They help identify overbought and oversold conditions and potential breakouts. - RSI (Relative Strength Index): A momentum oscillator that gauges the rate and extent of price changes. It ranges between 0 and 100, where readings above 70 signal overbought conditions, and readings below 30 indicate oversold conditions. RSI can also indicate bullishness when it crosses above 50 and vice versa. The Keltner Channels and RSI strategy leverages volatility and momentum to identify effective trading opportunities. By combining the channels, which offer insights into breakouts, with the RSI, which gauges momentum, traders can uncover trading opportunities on the 1-minute chart. Entry - Traders often look for two or more closes outside of the Keltner Channel and ideally strong and/or consecutive green (bullish) or red (bearish) candles. - This is confirmed by the RSI recently breaking above 50 for bullish signals or below 50 for bearish signals. The combination of strong price action and momentum change helps traders identify potential trend continuations. Stop Loss - Stop losses are commonly set beyond the opposite side of the Keltner Channel to potentially protect against adverse price movements. - For a higher risk-reward ratio, traders might place stop losses beyond a nearby swing candle. Take Profit - Traders typically take profits when the price crosses back beyond the Keltner Channel's midpoint or reaches the opposite side of the channel, indicating a potential exhaustion of the current move. - Alternatively, profits may be taken when RSI moves beyond 70 (overbought) or below 30 (oversold), signalling potential reversals in price direction. Strategy 3: ALMA + Stochastic Indicators Used - ALMA (Arnaud Legoux Moving Average): ALMA is a moving average that aims to smooth price data while reducing lag. The settings used are 21 for the window size, 0.85 for the offset, and 6 for the sigma. This combination helps in identifying the trend with greater precision. - Stochastic Oscillator: The Stochastic measures the location of the close relative to the high-low range over a set period. Settings of 21, 1, 3 are used to capture momentum and potential reversal points. A figure above 80 signals overbought conditions, while below 20 indicates the opposite. Combining ALMA with the Stochastic Oscillator allows traders to identify potential reversals in trends. ALMA provides a smoothed view of the price trend, while the Stochastic Oscillator offers momentum-based signals, helping to confirm the strength of a move. Entry - Traders look for the price to close through the ALMA, ideally with a strong close, which suggests a potential trend change. - This is confirmed by the Stochastic Oscillator crossing below 80 for a bearish signal or above 20 for a bullish signal, indicating momentum alignment with the trend. Note that price may fluctuate above and below the ALMA in ranging conditions and produce false signals. Stop Loss - Stop losses are typically set beyond the nearest swing point, which helps to potentially protect against adverse price movements. Take Profit - Traders typically take profits when the Stochastic reaches the opposite territory (e.g., from above 80 to below 20 for a bearish move), indicating a potential exhaustion of the current trend. - Alternatively, profits may be taken at identified areas of support or resistance, where price action historically reacts, providing a logical exit point. Strategy 4: RSI + Bollinger Bands Indicators Used - RSI (Relative Strength Index): For this strategy, RSI setting for a 1-minute chart is a length of 4, with overbought and oversold boundaries at 80 and 20, respectively. These RSI settings for the 1-minute chart help in identifying short-term overbought and oversold conditions. - Bollinger Bands: Bollinger Bands settings for a 1-minute chart are a 20-period simple moving average (middle band) and two outer bands set at a standard deviation level of 2 from the middle band. They help identify periods of high and low volatility as well as potential reversal points. The combination of RSI and Bollinger Bands allows traders to identify potential short-term reversals in the market. The Bollinger Bands provide a dynamic range for price action, while the RSI helps confirm overbought or oversold conditions, improving the accuracy of entry and exit points. Entry - Traders often enter when the RSI crosses below 80 from above or above 20 from below, signalling an exit from potential overbought or oversold conditions. - This entry is confirmed when the price is also touching or breaching the Bollinger Band, indicating the likelihood of a short-term reversal. Stop Loss - Stop losses are typically set beyond a nearby swing point or just outside the Bollinger Band, providing potential protection against significant adverse price movements and giving the trade room to develop. Take Profit - Traders commonly take profits when the price touches the opposing Bollinger Band, suggesting a potential end to the current price move. - Alternatively, some may take profits when the RSI crosses into the opposing overbought or oversold territory, indicating a shift in momentum. The Bottom Line Mastering a 1-minute scalping strategy can potentially enhance your trading performance. To take advantage of these techniques, consider opening an FXOpen account. As a regulated broker, FXOpen offers access to over 600 markets for scalping, supported by commissions as low as $1.50 and spreads from 0.0 pips. With the right tools and strategies, you can navigate today’s fast-paced trading environment effectively. FAQ What Is the 1-Minute Timeframe Trading Strategy? The 1-minute timeframe trading strategy involves making multiple trades within a single minute, aiming to capture small price movements. Traders use a 1-min scalping strategy to identify quick trading opportunities and rely heavily on technical indicators for entry and exit points. Which Indicator Is Best for 1-Minute Scalping? There is no single best 1-minute scalping strategy indicator; it comes down to preference and experience. However, popular choices include the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands, and the Volume Weighted Average Price (VWAP). Combining several indicators can potentially provide more reliable signals. What Is the Best Timeframe for Scalping Crypto*? The best timeframe for scalping crypto* depends on the trader's preference and strategy. While a 1-minute crypto* scalping strategy offers rapid trades and numerous opportunities, some traders prefer slightly longer frames like the 5-minute or 15-minute charts to balance speed and cryptocurrency* market noise. What Is the Stochastic Setting for 1-Minute Scalping? For 1-minute scalping, the Stochastic Oscillator is typically set to the standard settings of 14, 1, 3. These settings help capture short-term momentum changes, providing timely signals for entry and exit points. Adjustments can be made based on the trader's specific strategy and market conditions. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
3
Nasdaq - It All Comes Down To This Month!Nasdaq ( TVC:NDQ ) is at a crucial breakout level: Click chart above to see the detailed analysis👆🏻 The Nasdaq rallied an incredible +25% over the past couple of months and is now actually also breaking a major resistance trendline towards the upside. This could still turn into a false breakout but if it doesn't, we will most likely see a flourishing stock market year of 2025 Levels to watch: $21.000, $28.000 Keep your long term vision, Philip (BasicTrading)
TVC:NDQLong
by basictradingtv
15
S&P500 - The Next 14 Days Will Decide Everything!S&P500 ( TVC:SPX ) is about to break all resistance: Click chart above to see the detailed analysis👆🏻 Over the past couple of weeks, the S&P500 has been repeating the major breakout rally of 2021. Back then the S&P500 actually broke above the channel resistance and immediately rallied more than +15%. If we see the confirmed breakout, we will likely see the same thing happening again. Levels to watch: $6.000, $7.000 Keep your long term vision, Philip (BasicTrading)
TVC:SPXLong
by basictradingtv
14
USDX "Dollar Index" Bullish Heist PlanHello! My Dear Robbers / Money Makers & Losers, 🤑 💰 This is our master plan to Heist USDX "Dollar Index" Market based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Long entry. Our target is Red Zone that is High risk Dangerous level, market is overbought / Consolidation / Trend Reversal / Trap at the level Bearish Robbers / Traders gain the strength. Be safe and be careful and Be rich. Entry 📈 : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Low Point take entry should be in pullback. Stop Loss 🛑 : Recent Swing Low using 4H timeframe Target 🎯 : 107.500 Attention for Scalpers : Focus to scalp only on Long side, If you've got a lot of money you can get out right away otherwise you can join with a swing trade robbers and continue the heist plan, Use Trailing SL to protect our money 💰. Warning : Fundamental Analysis news 📰 🗞️ comes against our robbery plan. our plan will be ruined smash the Stop Loss 🚫🚏. Don't Enter the market at the news update. Loot and escape on the target 🎯 Swing Traders Plz Book the partial sum of money and wait for next breakout of dynamic level / Order block, Once it is cleared we can continue our heist plan to next new target. 💖Support our Robbery plan we can easily make money & take money 💰💵 Follow, Like & Share with your friends and Lovers. Make our Robbery Team Very Strong Join Ur hands with US. Loot Everything in this market everyday make money easily with Thief Trading Style. Stay tuned with me and see you again with another Heist Plan..... 🫂
PEPPERSTONE:USDXLong
by Thief_Trader
US30 - Once A Castle, Always A Castle!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. 📈US30 has been bullish , trading within the rising channel in blue. After rejecting the $45,000, has been in a correction phase and approaching the lower bound of the channel. Moreover, the zone marked in green is a strong structure. 🏹 Thus, the highlighted blue circle is a strong area to look for buy setups as it is the intersection of the structure and lower trendline acting as non-horizontal support. 📚 As per my trading style: As #US30 approaches the blue circle, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BLACKBULL:US30Long
by TheSignalyst
$JOBY: Strategic Entry into the eVTOL MarketI spend time researching and finding the best entries and setups, so make sure to boost and follow for more. Joby Aviation, Inc. ( NYSE:JOBY ): Strategic Entry into the eVTOL Market Trade Setup: - Entry Price: $6.91 - Stop-Loss: $3.61 - Take-Profit Targets: - TP1: $12.76 - TP2: $21.08 Company Overview: Joby Aviation, Inc. is a leading player in the emerging electric vertical takeoff and landing (eVTOL) aircraft industry. The company focuses on developing zero-emission aircraft to revolutionize urban air mobility. With substantial investments in technology and partnerships, Joby aims to launch commercial operations by 2025. Earnings Reports: - In Q3 2024, NYSE:JOBY reported a net loss of **$476.86 million**, as expected for a pre-revenue company heavily investing in research and development. - Total cash reserves stand at **$1.1 billion**, ensuring sufficient runway for operational and developmental goals. Valuation Metrics: - Market Cap: **$6.54 billion**. - Given its pre-revenue status, traditional valuation metrics like P/E or P/B are not applicable. Instead, the company is valued on its growth potential in the emerging eVTOL market. Dividends: - NYSE:JOBY does not pay dividends, prioritizing reinvestment into its development and expansion plans. Market News: - Recent announcements include plans to raise **$300 million** through equity sales, strengthening financial resources ahead of the anticipated commercial launch. - Joby also received its first production airworthiness certificate, a critical milestone toward FAA certification. Analyst Ratings: - Analyst consensus: **Moderate Buy**. - Average price target: **$8.35**, reflecting mixed sentiment due to the stock’s volatility and developmental stage. Risk/Reward Analysis: With a stop-loss at **$3.61**, the downside risk is approximately **47.75%**, while the upside potential to TP1 ($12.76) offers a reward of **84.66%**. TP2 at **$21.08** provides an extended reward potential of over **200%**. This setup appeals to long-term investors with high-risk tolerance. Conclusion: Joby Aviation represents a compelling opportunity for growth investors looking to capitalize on the eVTOL market's potential. While the stock's volatility and pre-revenue status introduce risk, its significant milestones and industry positioning make it a high-reward prospect. When the Market’s Call, We Stand Tall. Bull or Bear, Just Ride the Wave! Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own due diligence before making investment decisions.
NYSE:JOBYLong
by SiriusTrading
How Can You Use a Break and Retest Strategy in Trading?How Can You Use a Break and Retest Strategy in Trading? Trading strategies help traders navigate the financial markets with greater confidence. One such approach is the break and retest strategy, which focuses on key support and resistance levels. This article explores the break and retest strategy in detail, providing insights and practical examples to help traders apply it in their trading activities. Understanding the Break and Retest Strategy The break and retest strategy is popular among traders who aim to capitalise on clear market movements. At its core, this strategy revolves around identifying key support and resistance levels on a price chart. Here’s how it works: When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend. This strategy aligns well with trending markets, where prices move consistently in one direction. It allows traders to take advantage of momentum while managing their entries potentially more effectively. The Mechanics of Break and Retest Trading Implementing the break and retest strategy involves a clear sequence of steps that traders follow to identify and act on potential market moves. Here’s a breakdown of how this strategy typically operates: 1. Identifying Key Levels Traders begin by pinpointing significant support and resistance levels on their charts. Accurate identification is crucial, as these levels form the foundation of the strategy. 2. Monitoring for a Breakout Once the key levels are established, traders watch for the price to break through one of these barriers, in line with a broader trend. A breakout occurs when the price moves decisively above resistance or below support, often accompanied by increased trading volume. This surge in volume indicates stronger market interest and can validate the breakout’s legitimacy. 3. Waiting for the Retest After the breakout, the price typically retraces to test the broken level. For instance, if the price breaks above a resistance level, it may pull back to that same level, which now acts as support. This retest phase is critical as it offers a second confirmation of the breakout’s strength. 4. Confirming the Retest During the retest, traders look for confirmation signals to ensure the breakout is genuine. These signals can include specific candlestick patterns, such as pin bars or engulfing candles, and continued high trading volume. Successful confirmation suggests that the new support or resistance level will hold, increasing the likelihood of a sustained trend. 5. Entering the Trade With confirmation in place, traders often enter the market, aiming to ride the new trend. They may set stop-loss orders slightly below the new support (in the case of a breakout to the upside) or the new resistance (in case of a breakout to the downside) to manage potential risks. 6. Managing the Trade Effective trade management involves setting target levels based on previous price action and adjusting stop-loss orders as the trade progresses. This helps to lock in potential returns and potentially protect against unexpected market reversals. Break and Retest Example Strategy Consider this EURUSD 15-minute chart, which displays a clear bearish trend. This trend is highlighted by the 50-period Exponential Moving Average (EMA) sloping downward, with the price generally staying below it. Recently, the price broke below a key support level on higher-than-average volume, signalling a potential opportunity for traders to apply the break and retest strategy. In this scenario, there are two support levels to monitor. The first is a more significant support level. Trading at this level can allow traders to enter the market quickly, though it comes with a less favourable risk-reward ratio. The second support level is found within the recent brief retracement. This level offers a better risk-reward ratio, but there's a chance the price may not retrace deeply enough, potentially causing traders to miss the trade. The entry point is identified by a candle with a wick longer than its body (a pin-bar on the 30m chart), indicating rejection of higher prices as the market retests the second broken support level. Once this candle closes, traders can enter a market order. Stop losses would typically be placed either above the last major swing high or above the 50-period EMA, depending on individual risk tolerance. Take-profit targets could be set at a 1:3 risk-reward ratio or at the next significant support level, where a price reversal may be anticipated. Improving the Break and Retest Strategy Enhancing the break and retest strategy involves integrating additional tools and techniques to refine trade decisions. Here are several methods to consider: 1. Incorporating Additional Indicators Using break and retest indicators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) can provide valuable insights. For instance, an RSI crossing below 70 during a bearish breakout may indicate weakening momentum, supporting the retest. Similarly, the MACD crossing above its signal line or the MACD histogram rising above 0 can confirm the uptrend’s strength, aiding in more precise entry points. Explore these indicators and more than 1,200+ trading tools in FXOpen’s free TickTrader trading platform. 2. Multi-Timeframe Analysis Examining charts across different timeframes helps in gaining a broader market perspective. A breakout observed on a 4-hour chart gains additional confirmation when a strong trend is also visible on a daily chart. This alignment across timeframes increases the reliability of the trade setup. 3. Utilising Fibonacci Retracements After a breakout, prices often retrace deeper into the previous high-low range—not always to the most extreme point. Applying Fibonacci retracements to the high/low of the breakout (high in a bearish breakout and low in a bullish scenario) and the new low or high can help identify optimal retest points, particularly at the 38.2%, 50%, and 61.8% levels. These levels typically offer better risk-reward ratios compared to the extreme points. 4. Incorporating Fundamental Analysis Supporting technical breakouts with fundamental factors, such as economic reports or news events, strengthens the strategy. For example, a breakout aligned with positive economic data may have a higher probability of sustaining the new trend, providing traders with greater confidence in their decisions. Advantages of the Break and Retest Strategy The break and retest strategy offers several advantages that can enhance a trader’s approach to the markets: - Increased Confidence through Confirmation: The retest serves as an additional validation of the breakout, boosting trader confidence in their entry decision and reducing hesitation. - Better Risk Management: Setting stop-loss orders based on the retest level provides a clear risk boundary. This structured approach aids in potentially managing losses. - Alignment with Market Trends: This strategy naturally aligns trades with the prevailing market trend. By trading in the direction of the breakout, traders can take advantage of sustained movements. - Versatility Across Markets: The breakout and retest strategy can be applied to various financial instruments, including forex, stocks, and commodities. Its adaptability makes it a valuable tool in diverse trading environments. - Scalability and Flexibility: This strategy can be adapted to different timeframes and trading styles, making it suitable for both short-term and long-term traders seeking to implement a consistent approach. Potential Challenges and Considerations While the break and retest strategy can be a powerful tool, traders may face several challenges when implementing it: - False Breakouts: Not every breakout leads to a sustained trend. Sometimes, the price moves beyond a support or resistance level only to reverse shortly after. Recognising these false signals is crucial to avoid entering trades that may quickly turn against expectations. - Market Conditions: According to theory, this strategy performs best in trending markets. In sideways or highly volatile environments, breakouts can be less reliable, making it harder to distinguish genuine opportunities from random price movements. - Timing the Retest: Accurately determining when the price will retest the broken level can be challenging. Entering too early may expose traders to unnecessary risk, while waiting too long might result in missed opportunities if the retest doesn't occur as anticipated. - Reliance on Confirmation Signals: While additional indicators like RSI or MACD can enhance the strategy, over-reliance on these tools can complicate decision-making. Traders need to balance multiple signals without becoming overwhelmed or confused. - Emotional Discipline: Maintaining discipline during retests is essential. Traders might feel pressured to act quickly if the market moves unexpectedly, leading to impulsive decisions that deviate from their trading plan. The Bottom Line The break and retest strategy offers a structured approach to navigating market movements, combining precise entry points with effective risk management. By understanding and applying this method, traders can potentially enhance their trading decisions and align with prevailing trends. To put this strategy into practice across more than 700 markets, consider opening an FXOpen account and gain access to four advanced trading platforms, low trading costs, and rapid execution speeds. FAQ What Is a Retest in Trading? A retest occurs when the price returns to a broken support or resistance level after an initial breakout. It serves to confirm the strength of the breakout, helping traders decide whether the new trend will continue or if the breakout was false. What Is the Break and Retest Strategy? The break and retest strategy involves identifying a breakout of a key support or resistance level and then waiting for the price to return to that level. Traders use this retest as a confirmation to enter the market, aiming to follow the new trend with reduced risk. What Is the Win Rate of the Break and Retest Strategy? The win rate of the break and retest strategy varies depending on market conditions and how the strategy is applied. Consistent application and effective risk management are crucial for achieving better results. How Many Times Should I Backtest My Strategy? Backtesting should be done extensively across different market conditions and timeframes. According to theory, traders need to test a strategy on at least 100 trades to ensure its reliability and to understand how it performs in various scenarios. Does the Market Always Retest? No, the market does not always retest broken levels. While retests are common, they are not guaranteed. Traders should use additional confirmation signals and be prepared for both possibilities when applying the break and retest strategy. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
S&P500 - The Most Important Channel Breakout!S&P500 ( TVC:SPX ) is retesting a crucial breakout area: Click chart above to see the detailed analysis👆🏻 During 2024, the S&P500 rallied more than 25% after we already saw a very bullish year of 2023. However, momentum is always more likely to continue and since the S&P500 is currently retesting a major breakout level, this bullish momentum could lead to a final breakout. Levels to watch: $6.000 Keep your long term vision, Philip (BasicTrading)
TVC:SPXLong
by basictradingtv
18
DXY 1W Forecast until the end of MAY 2025Up-trend will resume and last until the end of February 2025 topping no higher than 114. Current bottom is in at 105.9 Hence, it shouldn't fall below. After February a consolidation period of 1,5 months will trap price action between the bottom of 122.16 and upper level of 114.9 The spring squeezed during consolidation will provide enough energy for further upwards movement starting in the end of April 2025. This will ignite a chain of devaluation of national currencies followed by epidemic inflation across the globe. This will finish/cool-down at DXY reaching the mark of 148. New reality after May 2025?
INDEX:DXY
by discarding
What Are Leading Trading Indicators, and How Can You Use ThemWhat Are Leading Trading Indicators, and How Can You Use Them in Trading? Leading indicators are essential tools for traders aiming to analyse market movements. This article explains what leading indicators are, how they work, and their practical application across different asset classes. Read on to discover how tools like RSI, Stochastic Oscillator, On-balance Volume, and Fibonacci retracements can enhance your trading strategy. What Are Leading Technical Indicators? Technical indicators are divided into leading and lagging. Leading indicators in trading are tools used to identify potential price movements before they occur. Lagging indicators confirm trends after they begin, helping traders validate price movements. The difference between leading and lagging indicators is that leading indicators aim to give traders an edge by signalling when a new trend or reversal might be on the horizon while lagging indicators confirm trends after they've developed. Leading trading indicators work by analysing price data to identify patterns or extremes in buying and selling behaviour. For instance, popular leading indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator measure momentum in a market. These indicators help traders spot overbought or oversold conditions, where RSI tracks recent price movements relative to historical performance, while the Stochastic Oscillator compares a security's closing price to its price range over a set period. However, it’s important to note that leading indicators can produce false signals, meaning they may suggest a price move that doesn’t materialise. Because of this, traders often combine them with other technical analysis tools, such as support and resistance levels, or use them alongside lagging indicators to validate the signals they receive. Types of Leading Indicators in Trading Leading indicators are divided into various types, each serving a unique role in analysing potential market movements. Three common types include momentum indicators, oscillators, and volume indicators: - Momentum Indicators: These track the speed or rate of price changes. They are used to assess the strength of a trend and determine potential reversals when the momentum slows. Momentum indicators help traders when an asset is overbought or oversold. - Oscillators: These indicators fluctuate between fixed values (usually 0 and 100) to reflect the market’s current momentum. They help traders pinpoint potential reversals by highlighting when an asset is overbought or oversold. Oscillators are particularly useful in range-bound markets where price movement is confined within support and resistance levels. - Volume Indicators: These focus on the amount of trading activity, rather than price movement. By analysing the flow of volume in or out of an asset, traders can gauge the strength behind price movements. Increasing volume in the direction of a trend often confirms its continuation, while the divergence between volume and price can indicate potential reversals. Below, we’ll take a look at a list of leading indicators. If you’d like to explore these indicators alongside dozens more, head over to FXOpen’s free TickTrader trading platform. Relative Strength Index (RSI) The Relative Strength Index (RSI) is one of the most popular leading indicators examples. RSI is a momentum oscillator that helps traders evaluate the strength of an asset’s price movements. Developed by J. Welles Wilder, it measures the speed and change of price actions over a set period—typically 14 candles—on a scale from 0 to 100. The primary signals RSI produces revolve around overbought and oversold conditions. When the indicator breaks above 70, it suggests that an asset may be overbought, reflecting the potential for a reversal or correction. Conversely, when RSI falls below 30, it signals that an asset may be oversold, which can indicate a potential recovery. These thresholds provide traders with insight into whether the price has moved too far in one direction and is poised for a change. RSI can also highlight trend reversals through divergence. If the price of an asset continues to rise while the RSI drops, it indicates bearish divergence, signalling potential weakening momentum. On the other hand, bullish divergence occurs when the price falls, but the RSI rises, suggesting that the downward trend may be losing strength. Another useful RSI signal is when it crosses the 50-level. In an uptrend, RSI remaining above 50 can confirm momentum, while in a downtrend, staying below 50 reinforces bearish sentiment. However, RSI is not foolproof. During a strong trend, the indicator can signal overbought or oversold for a long while and lead to false signals. This is why it’s often paired with other indicators to confirm signals. Stochastic Oscillator The Stochastic Oscillator is a momentum-based indicator that assesses the relationship between an asset's closing price and its price range over a specific number of periods, typically 14. It consists of two lines: the %K line, the primary line, and the %D line, which is a moving average of %K, providing smoother signals. This oscillator ranges from 0 to 100, with readings above 80 indicating overbought conditions and those below 20 signalling oversold conditions. Traders utilise these signals to determine potential reversals in price. For example, when the oscillator rises above 80 and then drops below it, a potential sell signal is generated. Conversely, when it falls below 20 and climbs back above, it might indicate a buy opportunity. The Stochastic Oscillator also provides crossover signals, where the %K line crosses above or below the %D line. A bullish crossover occurs when %K rises above %D, indicating that upward momentum may be increasing. A bearish crossover happens when %K falls below %D, suggesting that momentum is shifting downward. In addition to overbought/oversold and crossovers, the Stochastic Oscillator can identify divergence, which signals potential trend reversals. A bullish divergence occurs when the price makes a lower low, but the oscillator shows a higher low, indicating a weakening downward momentum. On the other hand, a bearish divergence happens when the price makes a higher high, but the oscillator makes a lower high, suggesting the uptrend might be losing steam. While the Stochastic Oscillator can be powerful in range-bound markets, it can be prone to false signals in trending markets. On-Balance Volume (OBV) On-Balance Volume (OBV) is an indicator that tracks the flow of trading volume to assess whether buying or selling pressure is dominating the market. It was introduced by Joseph Granville in 1963, and its primary concept is that volume precedes price movements. This makes OBV a useful tool for analysing potential trend reversals. While the absolute value of OBV is not crucial, its direction over time provides insight into the market’s underlying sentiment. OBV offers several key signals: - Trend Direction: A rising OBV supports an upward price trend, indicating strong buying pressure, while a falling OBV reflects a downtrend with selling pressure. - Divergence: Traders use OBV to identify a divergence between price and volume. If the price is making new highs while OBV is falling, it suggests a weakening trend, potentially signalling a reversal. Conversely, rising OBV with falling prices can hint at a potential bullish reversal. - Breakouts: OBV can also be used to spot potential breakouts. For instance, if OBV rises while prices are range-bound, it may indicate an upcoming upward breakout. However, like any indicator, OBV has limitations. It can produce false signals in choppy markets and is used alongside other technical tools, such as Moving Averages or support and resistance levels, to improve reliability. Fibonacci Retracement Fibonacci retracements are a technical analysis tool that helps traders pinpoint potential support and resistance levels during price fluctuations. The tool is based on the Fibonacci sequence, a series of numbers that produce key ratios like 23.6%, 38.2%, 61.8%, and 78.6%. These percentages represent levels where the price of an asset might retrace before continuing its trend. Traders apply Fibonacci retracement by selecting two extreme points on a price chart, such as a recent high and low. The tool then plots horizontal lines at the Fibonacci levels, indicating possible areas where the price might pause or reverse. For example, in an uptrend, a price pullback to the 38.2% level could signal a buying opportunity if the trend is likely to resume. Fibonacci retracements are often used in conjunction with other indicators, such as the MACD or RSI, to confirm signals and enhance reliability. While they provide valuable insight into potential turning points, it's crucial to remember that these levels aren't guarantees—prices may not always behave as expected at these points, especially in volatile markets. How Traders Use Leading Indicators in Practice Traders use leading indicators to gain insights into potential price movements before they occur, helping them position themselves early in a trend. Here’s how leading indicators are typically applied: - Identifying Overbought or Oversold Conditions: Indicators like RSI or Stochastic Oscillator are used to spot extreme price levels. When these indicators signal that a market is overbought or oversold, traders analyse the situation for potential trend reversals. - Combining Indicators for Confirmation: It’s common to pair multiple leading indicators to strengthen signals. For example, a trader might use both the RSI and OBV to confirm momentum shifts and avoid acting on false signals. - Spotting Divergences: Traders look for divergence between an indicator and price action. For instance, if prices are rising, but the indicator is falling, it can suggest weakening momentum, signalling a potential downward reversal. - Clear Entry and Exit Points: Leading indicators often provide clear entry and exit points. For instance, the Stochastic Oscillator signals a bearish reversal and entry point when it crosses back below 80, with traders typically exiting the trade when the indicator crosses above 20. Likewise, Fibonacci retracements can provide precise levels where a trend might stall or reverse. Potential Risks and Limitations of Leading Indicators for Trading While leading indicators offer valuable insights into potential price movements, they come with risks and limitations. - False Signals: One of the biggest challenges is that leading indicators can generate false signals, especially in volatile markets. For instance, an indicator might signal a reversal, but the price continues in its original direction, leading traders to take positions prematurely​. - Limited Accuracy in Trending Markets: It’s common that in strong trends, such indicators remain overbought or oversold for extended periods, causing traders to misinterpret momentum. - Overreliance on One Indicator: No single indicator is foolproof. Relying heavily on one without considering other factors can lead to poor decisions. Traders need to combine leading indicators with other tools like support/resistance levels or trendlines to validate signals​. - Lagging in Fast-Moving Markets: Even though they are called "leading" indicators, they can sometimes lag in rapidly changing markets. By the time a signal is generated, the opportunity may have already passed​. The Bottom Line Whether trading forex, commodities, or the stock market, leading indicators offer valuable insights to help traders anticipate potential price movements. By combining these tools with a solid strategy, traders can better navigate market conditions. To start implementing these insights across more than 700 markets, consider opening an FXOpen account and take advantage of our high-speed, low-cost trading conditions. FAQ What Are the Leading Indicators in Trading? Leading indicators are technical analysis tools used to determine potential price movements before they happen. Traders use them to anticipate market shifts, such as reversals or breakouts, by analysing price momentum or trends. Common examples include the Relative Strength Index (RSI), Stochastic Oscillator, and Fibonacci retracement levels. What Are the Three Types of Leading Indicators? The three main types of leading indicators for trading are momentum indicators (e.g., Momentum (MOM) indicator), oscillators (e.g., Stochastic), and volume indicators (e.g., On-Balance Volume). These tools help determine market direction by assessing price action or trading volume. Is RSI a Leading Indicator? Yes, RSI (Relative Strength Index) is a leading indicator. Considered one of the potentially best leading indicators for day trading, it measures momentum by comparing recent gains and losses, helping traders spot overbought or oversold conditions before potential reversals. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
4
DXY: Watch the Key Level for the Next Bullish Leg HigherWelcome back! Let me know your thoughts in the comments! ** DXY Analysis ! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support! Welcome back! Let me know your thoughts in the comments!
TVC:DXYLong
by OGT_Forex
XRP will RunXRP is currently in a consolidation phase as it seeks to establish new highs and lows. The Relative Strength Index (RSI) indicates that XRP is undervalued, suggesting it is aiming to find new lows at higher price levels. The candlestick patterns are following an upward trend line, and both the 20-day and 200-day moving averages remain positive after experiencing a golden cross around November 10th. There are many positive signals that support a bullish outlook for XRP. Fundamental analysis indicates that XRP has a promising future, with new leadership at the Securities and Exchange Commission (SEC) and fresh partnerships fostering the institutional adoption of blockchain technology. These initial price movements are just the start of increased exposure for XRP.
BITSTAMP:XRPUSDLong
by LOWCO_487
US30 Closing first red day on the NFP dayHello traders and thanks for reading and supporting my idea! US30 is actually building an interesting template and today it could complete a weekly pump and dump template. But to understand better the logic behind this template, let's analyse day by day what happened this week. Monday, sets up the opening range of the week, the high low of the week is now in place and overall it was a dumping day as you can see during NY session time. Tuesday expanded the range to the downside, closing back inside the range at the end of the day. That's our box of the week, money are lying above and below these extremes. Wednesday nothing really interesting happened, considering that the price stayed inside the range almost all the day, slightly retesting the HOW just before the end of the day, closing the day in breakout, which is very important because now, breakout traders long are in the market and potentially driving this move. Thursday consolidated almost all the day up high into the HOW, every attempt to break higher failed, eventually trapping the traders long in the wrong direction, stopping them out at the end of the day, closing the market as first red day and with breakout short traders involved. Today, Friday, I can see the market placing a lower low into the low of day, which potentially reinforce the weakness of this market, and it's currently consolidating/coiling just below the closing price. Overall, we are inside the previous weekly high low range, so I will be targeting the current LOW if the short scenario is identified. As always, the template can give a thesis but a setup can drive the move, the following notes will explain better both the scenarios. Gianni
PEPPERSTONE:US30Short
by GianniPichichero
11