HOW And WHY The Markets MoveIn this video I explain HOW and WHY the markets move.
At it's core, trading is a zero-sum game, meaning that nothing is created. There must always be a counter-party to any trade, after all it is called "trading". Because of this, liquidity is the lifeblood of the market and it is what is required by all participants, albeit more for the larger entities out there. In order for these larger entities to trade, they must do so in stages of buying and selling, and not all in one single position like we do as retail traders. They buy on the way down, and sell on the way up, throughout many different time horizons. Therefore, they require price to be delivered efficiently in order to sustain this working machine.
I hope you find the video somewhat insightful. Regardless of your beliefs, I think it can be agreed that these two principles are what drives the marketplace and it's movements.
- R2F
Learning
Mastering Elliott Waves: Key Rules You Can't IgnoreEducational Idea : Understanding Key Principles of Elliott Wave Theory
Introduction
Elliott Wave Theory is a powerful tool used by traders to analyze market cycles and forecast future price movements. Understanding its core principles can help you make more informed trading decisions. In this article, we will delve into three fundamental principles of Elliott Wave Theory that cannot be violated. Remember, this video is purely for educational purposes and not intended as trading advice or tips.
1. Wave 2 Can Never Retrace More Than 100% of Wave 1
The first principle of Elliott Wave Theory is that Wave 2 can never retrace more than 100% of Wave 1. In other words, Wave 2 cannot go below the starting point of Wave 1. If it does, it invalidates the wave count and suggests that the initial impulse wave (Wave 1) was incorrectly identified. This rule ensures that Wave 2 is a correction wave within the larger trend and not a reversal of the trend itself.
Example Illustration:
- If Wave 1 starts at 100 and peaks at 150, Wave 2 can retrace to any level above 100, but not below it.
2. Wave 3 Can Never Be the Shortest Among All Three Impulse Waves (1-3-5)
The second principle states that Wave 3 can never be the shortest among the three impulse waves (Waves 1, 3, and 5). Typically, Wave 3 is the longest and most powerful wave, characterized by strong momentum and volume. If you find that Wave 3 is shorter than either Wave 1 or Wave 5, the wave count is incorrect, and you need to re-evaluate your analysis.
Example Illustration:
- If Wave 1 is 50 points and Wave 3 is only 30 points, while Wave 5 is 40 points, this violates the rule as Wave 3 is the shortest.
3. Wave 4 Cannot Enter the Territory of Wave 1 (Except in Diagonals & Triangles)
The third principle asserts that Wave 4 cannot enter the price territory of Wave 1. This means that the lowest point of Wave 4 should not overlap the highest point of Wave 1. An exception to this rule occurs in diagonal and triangle patterns, where some overlap is permissible. This rule helps maintain the integrity of the impulse wave structure.
Example Illustration:
- If Wave 1 peaks at $150 and Wave 4 retraces to $145, this overlaps and invalidates the wave count unless the pattern is a diagonal or triangle.
Conclusion
By following these principles, you can ensure that your Elliott Wave analysis remains robust and accurate, helping you navigate the complexities of the financial markets with greater confidence. Understanding and applying these key principles of Elliott Wave Theory can significantly enhance your market analysis and trading strategies. Keep these rules in mind as you study and apply Elliott Wave Theory in your trading journey. Remember, this video is purely for educational purposes and not any kind of trading advisory or tips.
This content is for educational purposes only and should not be considered as financial advice. Always do your own research before making any trading decisions.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Feel free to share your thoughts or questions in the comments below. Happy trading!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Liquidity is KEY to the MarketsIn this video I go through more about liquidity and why it is important.
The markets move because of liquidity. Without liquidity, there is no trading. The larger the trader, the larger the liquidity required. Understanding the concept of liquidity and the fractal nature of price, trading becomes very interesting. A whole new world opens up to you and you no longer have to keep guessing where price is going. You no longer have to keep chasing candles.
I hope you find this video insightful.
- R2F
FULL ANALYSIS GUIDE - (Using ICT's Concepts)Hey guys,
In this video I will show you my process for performing analysis. Yes, it takes some work, but generally once you get into the swing of it, it doesn't take long, and the higher timeframes only require analysis once in awhile. It allows me to have a higher win-rate and be more on side with how the market is predisposed to move. Whilst it is not required in order to be profitable, my personality and system requires me to make more frequent wins.
I hope you find this video insightful.
- R2F
Trade Like A Sniper - Episode 24 - USOIL - (7th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions.
A couple of things to note:
- I cannot see news events.
- I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range.
- I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks
In this session I will be analyzing USOIL, starting from the 6-Month chart.
If you want to learn more, check out my other videos on TradingView or on YT.
If you are interested in private coaching, feel free to get in touch via one of my socials.
How Many Monitors Do YOU Need? - R2F's Professional OpinionHi everyone,
I get this question occasionally, so I figured I would share my opinion on the matter.
There are many misconceptions about trading or being a professional trader. One of them is, the more monitors you have, the more successful or advanced you are as a trader. That is complete nonsense. In this video I explain what I think the best number of monitors is to have, and hopefully give you some insight into what works for you.
At the end of the day, trading is a personal endeavor and not a one-size-fits-all. Always start with the least, and scale from there, which is the same way you should approach the growth of your trading wealth.
- R2F
The 3-Step Method For High-Quality AnalysisIn this video I give you the 3-step method I use to do my analysis.
By incorporating these steps, it is also how I do my top-down analysis. You can think of it as a checklist as well.
First, I have my Bias, which determines where I believe price is drawn to. For example in the case of SMC/ICT Concepts, we observe where the liquidity is in the market and use that to frame where price is likely going to go to sooner or later.
Secondly, I have my Narrative, which is on a lower timeframe, and paints the picture of HOW price is going to form in order to initiate the move to that price target. This usually includes more engineered liquidity on lower timeframes, and manipulation to happen.
Thirdly, I have my Confirmation, which is where I want to enter a trade. This is the lowest of the three timeframes, and is the final point in which I will frame a trade setup. Usually I will look for the exact same things I look for in my Bias and Narrative, but on this timeframe. I also tend to include the factor of time, such as Killzones, Seasonality, and News Drivers.
Note that the timeframes can be anything you want them to be, and you are not restricted from moving from timeframe to timeframe. But, the important thing is to be consistent with WHERE you believe price is going, HOW you think it may get there (this can change as price forms), and again WHERE you are going to enter a trade.
- R2F
When Are You READY to Trade with REAL MONEY?Hello hello, R2F here with another discussion.
Today, I'd like to go over the question, 'when do you know you are ready to trade with real money?'
Too many traders rush into trading with real capital before they are ready, and end up losing more money than neccessary on learning journey. People are generally impatient creatures and want to get into actions as soon as possible. Perhaps they want to find out if they are magically a trading savant before wasting time on all the usual work that is required.
However, trading is extremely simple, albeit not easy. The difficult part comes in the form of the investment of time and experience, and refining yourself as a person. Once you had that in the bag, trading offers the potential for generational wealth that comes with the freedom of time.
Without further ado, I share my thoughts on how to approach this burning question.
- R2F
Using Fibonacci & FPT To Identify Trends/Entries/ReversalsLearn how powerful Fibonacci Retracements and Fibonacci Price Theory are when adequately deployed.
It can tell where and when to target entries, trends, risks, and reversals.
Anyone can do this when they learn to efficiently manage the ranges and use Fibonacci tools in Trading View.
It's time you took a few minutes to learn the PRICE is the ultimate indicator. You don't need to use dozens of other indicators (unless you want to add to the core Fibonacci techniques).
Watch this video, then follow my research/videos.
Delusions of Grandeur - Breaking Your Trading ModelIn this video I would like to talk about a mistake many beginners as well as intermediate traders make, which is having a potentially profitable trading model, and pushing it to the point it stops working. I will discuss WHY it happens, WHY it never works, and WHY you should avoid this blunder.
Your trading model is the strategy that you use to trade with. It can include how you determine your entries, stoplosses, and targets, as well as how you manage risk. The only way to know if a trading model works, and how well it works if it even does at all, is through backtesting and forwardtesting. The more data you collect, the more insight into the model you will have. The main thing I want you to keep in mind is that a trading model’s efficacy relies on collected data, and this data must be consistent. It’s the same as any other industry that does research on their market or products.
So, why do so many traders push a model until it stops yielding them profit?
I would say the first reason is impatience. Humans are impatient, especially nowadays in this of social media and technology. Some traders won’t spend the time doing all the necessary testing required. They want to start making money as quick as possible, but little do they know they end up losing their account as quick as possible. Secondly, it takes time for your setups to appear in the market. People have this naturally preconceived notion that you need to be doing something in order to be working and making money. This is the complete opposite in trading, which goes against our programming. So what ends up happening is traders being less stringent with their model’s criteria just so they can trade more often.
Next is greed. Generally speaking, the safest way to survive as a trader in the long run is through compound interest. Risking small, and letting the math do the work. But that’s not very sexy. Many traders go against their logical risk rules in order to potentially make more money, or more likely, lose more money, or all of it.
Boredom is a factor as well. Seeking excitement from trading is a one-way ticket to blowing your account. You’ll never make it as a trader if you think like that. All good systems are rarely thrilling. It is perfectly fine to be in love with trading, but it should not get your heart racing.
It all comes down to being disciplined. Doing the work, putting in the time, and following the trading model you have either adopted or created yourself. It absolutely doesn’t matter if you have losing trades. It absolutely doesn’t matter if your trade setup appears only once or twice a month. Those are not hindering you from becoming very wealthy in due time. But, running around jumping from strategy to strategy, not sticking to a model’s rules, those things will ensure that you never make it as a trader. It is as simple as that.
I know, it is not easy for many of you. It wasn’t easy for me as well. I am naturally face-paced. So, one piece of advice I have is cultivate organized baby steps. What does that mean? Clearly plan what you want to achieve, and then start with frequent tiny goals that you have no reason to not accomplish. For example, you want to collect data for 500 backtested trades. Start with the goal of backtesting 1 trade per day for a week. The important part here is not only making sure you do that 1 trade backtest, but making sure you ONLY do 1. If you are in the “mood” to do more, DON’T. What would it demonstrate if your decisions are based on your mood? What will happen when you are in the mood to do none? If you say 1 trade, stick to 1 trade. After a week, you can stick with 1 or scale up to 2 backtested trades per day for a week if you are ready, or perhaps a month, it’s up to you. This is just an example. You can apply this method to anything. Basically, you want to condition yourself to be consistent and disciplined. You want to show yourself that YOU are the boss of your life. YOU consciously decide what happens, not your emotions. The only way to do that is to grow that muscle bit by bit. Don’t let anyone tell you otherwise.
- R2F
What does it take to be a SUCCESSFUL TRADER?Hi everyone,
I felt compelled to create this short video on what I think it takes to be a successful trader. I've separated it into 4 factors:
1. Passion
2. Discipline
3. Perseverance
4. Patience
From my experience, these are the core things that you need to keep going until you find successful. Strategies should be the LEAST of your concern. I always say that to be a successful trader, you have to BE that person! You have to transform the person you are now into the person you vision yourself being. If you can do that, you got it baby.
- R2F
Putting Risk Reward into PerspectiveMost newbies, and even intermediate traders don't really understand what high risk to reward trades require from themselves and from the market. They think it is something to strive for, and that high RR trades are reserved for the pros. This is far from the truth.
In this video I try to give more perspective to this concept.
- R2F
Understanding the ICT BREAKAWAY GAPIn this video I go through the ICT Breakaway Gap and how YOU can use it to your advantage. I include some tips and tricks with a real trade setup demonstration.
The Breakaway Gap may have been an elusive concept to understand, but I present a simple way you can spot them on the chart and frame your trades around them. It is a powerful weapon that can be used to snag some awesome trades.
Simple put, the Breakaway Gap is a gap that does not get traded into with the NEXT FEW CANDLES. Emphasis on the last part because price is fractal, and the best way to frame a trade with ICT's Concepts is by taking a few candles on the higher timeframe for your bias, and going to a lower timeframe to form your narrative, and either entering on that timeframe or even going to a lower timeframe for your entry.
Hopefully this gives you some insight into one of the many concepts that ICT has bestowed upon the public.
If you need clarification about the content, or you are still struggling with finding your groove as a trader and need personal guidance or mentorship, feel free to reach out to me via TradingView’s private message or on X.
Happy trading and happy studying!
- R2F
Understanding LIQUIDITYIn this video I try to explain liquidity as it pertains to training in a simple manner.
Liquidity are basically orders in the marketplace. Since trading is a zero-sum game, without liquidity, there is no trading. Simply put, If you wanted to BUY, then you would need someone to SELL to you, and vice versa.
Smart Money has deep pockets and needs a large amount of liquidity to facilitate their positions. They want to be able to get in and our of their trades, as well as to be able to trade with capital that would be worth the reward.
The largest pools of liquidity usually reside above swing highs and lows, and equal highs and lows (double/triple tops and bottoms). Support and Resistance ideologies dominate the market, and besides that, psychologically it makes sense to put stoplosses at such areas rather than at some random area within a range. There are also breakout traders who see price breaking out of an area as a sign of strength (or weakness if bearish) and they set their entries above/below these levels. This is how liquidity is "engineered" in the market and sentiment manipulated. These pools of liquidity can be seen as a magnet, drawing price to these levels, either to grab liquidity before reversing or continuing in its current direction.
- R2F
I'm correcting errors mid-weekI decided to publish a video about the recent trades taken and the aftermath. I believe that I see structure clearly, however my bias changes depending on the timeframe. I'll be ultimately bearish on Sunday and Monday, then decide I want to be bullish Monday night to trade up to the sell. I understand that counter trend trading is dangerous to the risk: reward portfolio. This video will be watched back 2-3 times by myself as I learn more about the market from "teaching" it. I'll also be posting more videos regarding pre analysis, leading up the decision to take the trade.
Back to Basics video on examples of golden and dead crossoversCriteria for a dead crossover is that the short term moving average crosses below a longer term moving average while both are pointing lower.
Criteria for a golden crossover happen when a shorter term moving average crosses above a longer term moving average while both are turning higher
IN this example I have used a 55 and 200 day simple moving average.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
Trading Market Formations And How To Trade Them, PRE FOMCLots and lots of Traders completely misunderstand the idea of how price arranges.
Patterns are simply not magic. They are built from buyers and sellers and to trade any market formation you need to trade INLINE with this.
That means no guessing, rather watching key PA levels.
Also, it means scaling your capital and risk as the market progresses.
AND Trading in the moment.
Watch for more.
The 3 TYPES OF CHART YOU MUST KNOW | Trading Basics
Hey traders,
In this educational video, we will discuss 3 different chart types:
range bar chart,
line chart
candlestick chart.
I will explain to you the difference between them and will teach you why they are important.
❤️Please, support this video with like and comment!❤️
Learn How to Trade | Why to Analyse Multiple Time Frames 📚
Hey traders,
In this educational video, we will discuss why Top-Down Analysis
is so important and how to apply it in practice.
The video includes important theory and real market examples.
❤️Please, support this video with like and comment!❤️