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Support and Resistance

🌳very important terminologies in Trading🌳Hello every one 🟡(1) Price action The Movement of an asset or Security's price over Time , Plotted on The chart 🟡(2) All-Time High (ATH) The Highest asset has Ever been in Price 🟢(3) Support a Point in the market where the Price is less likely to drop below due to previous demand or price action 🟡(3) Resistance a Point in the market where the Price is less likely to break above due to previous demand or price action 🔵(4) Trend line a line indicating the General Price Direction of a chart 🟡(5) break out when the Price of the asset break through a pre-determined Trendline ⚪(6) Formation when a Financial Chart moves in such a way as to create a Recognizable pattern.patterns to signal trading opportunities either to enter or exit positions. 🟢(7) pump or bullish The price of an asset is going up 🟡(7) Dump or bearish The price of an asset is going Down 🔵(8) Long Position a Regular Buy in The Market. a Trade that is Predicting the asset will go up in value 🟡(8) short Position The opposite of a long Position. Entering a Trade position betting the asset to go down in value.
Education
by CobraVanguard
21
Knowing when NOT to trade is also important | XAUUSD Today we will take a look at XAUUSD. I really like this asset to trade because of the consistent trends it provides, which are great for swing traders. When you are executing a swing strategy , the main thing is avoiding choppy conditions and increasing the odds of developing setups on situations where you may observe clean trends from point A to point B. In this situation, I want to show how I'm currently thinking XAUUSD . Since MAY 2021, the price has been moving sideways on an average price of 1800, going up and down. This is the type of situation where I don't want to develop swing setups because I'm not observing trending behavior. That's why NOT trading is protecting my capital from low-quality setups. The better you become at waiting for perfect scenarios, the higher the odds to engage on high-quality trades that provide a clear edge after several executions. As you can see, I have defined the current area between the support and the resistance as "Bad zones for swing setups." And I have defined the support and the resistance zone as "good levels for setups" Why? Because as I explained before, in the current area, we are not observing clear trends for us to develop swing setups. That's why we need to wait for the price to make contact with key levels (support and resistance). It is from these key levels that 2 things may happen: the price will break it or bounce. As we are working on a weekly timeframe, these situations will not occur in a few hours, it will take days until the resolution of the direction. That's why if you do your homework, you can get ready to react in the best way once the price reaches these zones where we will tend to observe some reactions and the beginning of a new movement. My current plan is this: IF the price reaches the support zone at 1680, I want to start thinking in bullish setups towards 1900 or bearish setups towards 1450 IF the price reaches the resistance zone at 1900, I want to start thinking in bullish setups towards 2070 or bearish setups towards 1680 I hope this post is helpful to better understand the difference between good and bad zones to develop setups. Remember becoming patient can be a POWERFULL edge on the market. Most of the people are not. Thanks for reading and feel free to share your view in the comments!
OANDA:XAUUSDEducation
by ThinkingAntsOk
3
2 Types of Flags / Trading Range and Channels as FlagsWe have two flags in trading: First: Horizontal flags (Trading Range). These flags are the strongest type of flag. Horizontal flags indicate that the opposite side of the trend is incapable of creating a highs/lows opposite trend. Second: Flag with minor highs/lows. This type of flag is weaker than the first one. The opposite side of the trend was able to create the opposite highs/lows (Minor highs/lows). Flags Tips: 1) Before trading with flags, always check out the trend before them. Trends must be strong so the possibility of flag breakout increases. 2) After checking the trend before flag, check out the candles within flags. Less than 20 bars in Horizontal flags is acceptable but more than 20 bars make the market Neutral with 50-50 chance of breakout. Also in flags with minor highs/lows you have to check the latest major high/low and the opposite side must not reach that major high/low otherwise trend may be reversed. According to the points mentioned about flags, we examine the bitcoin chart: If we zoom out on the chart, we see a large trading range that we have already had a strong uptrend. This range is an ascending flag but has more than 20 candelabra, which indicates that both sides of the market are active. Within this range, a tight downtrend channel has formed over the past few weeks. It is true that we do not have a downtrend before this channel, but we consider it an ascending flag and expect it to break upwards.
Editors' picks
Education
by AmirSoraya
83
Market Tutorial: Varying Degrees Investigated with ArcsHello! Well wishes to you! In this tutorial is seen varying arcs with more - or less - eccentricity. In practical trading terms, the eccentricity would be how much time the arc covers compared to how much price it covers. An arc covering one days worth of time for a set amount of price would have more eccentricity - making it more oval shaped - than an arc covering an hour worth of time for that same amount of price. In viewing charts, it can be seen that varying degrees of impulse and corrective waves arise. One way in which these waves can be viewed is by the use of arcs. First, identity the degree of impulse that is desired. Use the steepest geometric angle - typically the 8x1 - to align the axis of the impulse with. Now, use the newly generated 1x1 impulse as the axis of the arc. Next and finally, repeat this procedure for any degree of impulse desired.
BITFINEX:DOGEUSDEducation
by UnknownUnicorn27791825
Market Tutorials: Creating ArcsHope you are well! For this tutorial, the topic is how to create arcs using an angulation method. First, take an axis. This axis is down to up. Observe and determine whether it fits better as a 8x1 or 4x1 - or 1x8 and 1x4. Once that is determined, place the geometric angles onto the axis, and use the 1x1 angle as the axis for the arc. Grab your favorite arc tool such as the fibonacci circles, speed resistance arcs, or the gann box. Place the arc over the image and be sure the arc aligns with the box created from the angulation method. Tip: Be sure that the arc is circling the square, so the arc will only tip the edge of the square rather than end inside of it. The height of the original square to use comes from the height of the initial axis used to create the angulation. The intersection of the height of the square and the 1x1 is where the arc should tip the square. The final height and width of the true square comes from the height and width of the arc measured from the horizontal and vertical portions of said arc. Enjoy! Be well! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Williams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Oreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely The Best Trendline Methods of Alan Andrews and Five New Trendline Techniques Patrick Mikula
Education
by UnknownUnicorn27791825
1
Geometry: 1x8-8x1 EllipsesHey! Hope you are well! In this chart is shown the various 1x8-8x1 ellipses. The overlay on the four minute chart is shown here! Here is the beginning. There are successive boxes made on the chart. The boxes are the basis of the 1x1, 1x2, and all. This next picture is the initial 1x1 ellipse - or circle if you will. If that is overly populated, here is the same without the successive rings. The ellipse is not inside of the rectangle because the ellipse is circling the rectangle versus squaring the circle; however, do note that whether squaring the circle or circling the square, the eccentricity is the same; only the proportion - the size - of the ellipse changes. Next is the 1x2 and 2x1. Now, all of the successive angles will be shown simultaneously. Enjoy! Be well! As an added bonus, here is what the chart looks like when the successive rings are added. Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Williams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Oreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
4
Forecasting and Geometry: EllipseHey! Hope you are well! In today's chart tutorial there is a gann box; it has harmonic arcs of the same proportion. This box was constructed using the proportions seen on the chart. On the daily chart, there is a fibonacci time sequence of 37, 53, 75, 295, and all. There is also a price of 3.665 and 1.199. From the price, the height of the box is formed; from the time sequence, the length is constructed. These two values form a rectangle, but the rectangle must be intersected to form a proper ellipse; therefore, the ellipse has the eccentricity base from the rectangle; however, its dimensions are a 1.414 proportion to the original ellipse fitting the rectangle. Enjoy! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
Geometry: 90 Degree AnglesHey! Good day to you! In this chart, the resolution is not matched; the native is this chart. There is a 90 degree angle going down from the first impulse, and the intersection of the angle and the zero angle time the top. There is a 90 degree angle going down from the next impulse, and the intersection of the angle and zero time the next bottom. Enjoy! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
Geometry: Adjusted Axis Square with Elliptical Figure Fitting InHello! Hope you are well! This figure is generated from the adjusted axis of price and the angulation of that adjusted axis. This then forms into a box, and the ellipse is fitted to the box. The native resolution is five minutes! Enjoy! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
2
Geometry: Ellipses on an Adjusted AxisHey! Hope you are doing well! In both charts the native resolution is five minutes. In this example, the ellipse is precisely derived from the angulation of the move. In this example, the ellipse is derived through various harmonics. Enjoy! And be well! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
Geometry: Adjusted Axis with Adjusted Axis AnglesThe area that is enclosed in the ellipse can be further magnified on this fitting one hour chart. The angles are derived from the fractions - the division- of the adjusted axis square. Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
2
Geometry: Adjusted Axis, Gann Fann, and ArcsNative chart: The adjusted axis is gathered from the perpendicular to an axis of price, and the gann fann was gathered using the same slope as the previous descent axis. The arcs were gathered from the vector movement of the previous decline axis. Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy A Complete Guide to Volume Price Analysis Anna Coulling Mastering The Elliot Wave Glenn Neely
Education
by UnknownUnicorn27791825
Geometry: Ellipse and Adjusted AxisHey! Hope you are well! Here is an adjusted axis on the five minute chart; the native chart I was using is five minute; here is the picture of what it looked like. The varying eccentricity of the ellipse comes from the varying circular levels such as .25, .5, .75, 1, 1.25, 1.5, 1.75, 2 Imagine the circle as a 1x1 ellipse; now imagine the next ellipse as a 1x1.25; imagine the next one as a 1x1.5; go all through the varying harmonics of 1xn. Enjoy! Suggested Reading: Law of Vibration - Tony Plummer Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III H.M. Gartley - Profits in the Stock Market Bill Wiliams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach Fabio Dreste - Quantum Trading Michael Jardine - New Frontiers in Fibonacci Trading The Wave Principle, Nature's Law Ralph Nelson Elliot Technical Analysis of the Financial Markets John J. Murphy
Education
by UnknownUnicorn27791825
2
CANDLESTICK PATTERN TRADING | Engulfing Candle 📚 Hey traders, In this post, we will discuss a classic candlestick pattern formation each trader must know - the engulfing candle. Key properties of this pattern: 🔑 Engulfing candle is a reversal pattern. 🔑 Engulfing candle can be bullish or bearish. ❗️Also, remember that this candle demonstrates the highest accuracy when it is formed on a key level (support or resistance). ⬆️Bullish Engulfing Candle usually forms after a strong bearish impulse. Weakening, the market keeps going lower forming bearish candles. However, at some moment, instead of forming a new bearish candle the market reverses. The price forms a bullish candle that engulfs the range of the previous bearish candle and closes above its opening price. Such a candle we call a bullish engulfing candle. The main feature of this pattern is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bearish candle. Being formed on a key support level or within a demand zone it signifies a highly probable pullback or even a trend reversal. ⬇️Bearish Engulfing Candle usually forms after a strong bullish move. Reaching an overbought condition, the market keeps going higher forming bullish candles. However, at some moment, instead of forming a new bullish candle the market goes in the opposite direction. The price forms a bearish candle that engulfs the range of the previous bullish candle and closes below its opening price. Such a candle we call a bearish engulfing candle. The main feature of this pattern is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bullish candle. Being formed on a key resistance level or within a supply zone it signifies a highly probable pullback or even a trend reversal. 📝Engulfing candle can be applied for scalping lower time frames, for intraday trading, or even for swing trading. Personally, I apply this candle on daily/4h time frames as one of the confirmations of the strength of the structure level that I spotted. Do you trade engulfing candle? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
11
Looking at the Forest, not the trees.Currently we're at a secular resistance level where the prices have reached the top of the uptrend channel. Signaling a painful, but necessary correction. Price Structure. The SPX has had a solid uptrend right after the recovery from 2009, this sets the start of the Bull market, so the 0.0 Fib level. Consequently it sets the the 0.618Fib level at the peak reached in 2007. Four main Fibonacci levels: 2007 : 1652 (0.618 Fib) 2015 : 2243 (1.0 Fib) 2019 : 3105 (1.618 Fib) 2021 : 4400 (2.618 Fib) Important Support/Resistance Levels to watch in the leg range (2191 - 4818): 0.764 Fib: 4171 0.618 Fib: 3792 0.5 Fib : 3485 After the market downturn and the recovery in 2009 an uptrend started that reached a new All Time Highs (ATH) in 2013, when the market tested the double top and broke out the range (RBO) to the upside to continue its path to a new ATH. It reached 1.0 Fib on 2015 when the perception of the market was that it was stalling, 2016 was a presidential election year, and Trump was gaining terrain but the market kept an eye on the events to take a decision. After the election the market resumed its uptrend, making HH-HL, and reaching new ATH. The trend was meaningfully dipped twice, which basically it was a retesting of the support through a painful correction that wiped off the four year gains. The current leg started after the near Zero interest rates set by the Fed. The level is currently at 2.618 Fib referred to the start of this Bull market in 2009. This usually signals a resistance and a test of the 1.618 Fib levels and everything in between, depending on how the markets are still wanting to buy the dip, which has been the constant since 2009. There are some curious facts I found on this analysis, from 2004 and until until 2007 the market entered a rally, the interest rates were raised until it reached 1500 points, where the interest rates started to go down, unemployment started to go higher and the market hit an ATH. I set this point in the chart as 0.618Fib. When it hit bottom in 2009 the interest rates were at near zero and it started the bull market we're at in this moment. The interest rates started to go higher when the unemployment was at 5%, which signals a recovery. It was on 2015 when it peaked and it coincidentally hit the 1.0Fib referred to the previous ATH in 2007. The market continued and when the interest rates stopped going higher the market hit a new ATH in 2019, at this time the market hit a 1.618 Fib, the unemployment was at its very low level of 3.50, which again signals a very well recovered economy, and all of a sudden the pandemic put a halt in the economy and the unemployment spiked to 14.70, and the interest rates backed down to 0.25%. This market did the "V Shape recovery" and skyrocketed to 2.618Fib (4,500) where it has been dancing around. If the pattern repeats itself then we could expect a technical level where the interest rates should start to go higher, this market should make a necessary correction and continue its uptrend. I forecast a correction back to 3000, where the technical level of 1.618 was reached. I have seen this kind of acceleration pattern before, as you can see the slope, which can be spotted in the middle line of the uptrend channel goes at a speed of 2.5 points per week and the legs had a slope of 7.2 points per week, meanwhile after the V shape recovery it accelerated to a speed of 26 points per week, almost 3x what it had been the normal speed, and it jumped from the lower part of the uptrend channel to the top of the upper resistance trend channel. Usually when we see this behavior the pattern is that it goes back to retest the previous resistance level, which basically would take it back to 3000. Of course several economic and monetary factors have to be involved for the market to do this kind of correction, it depends on the Fed who has to assess the unemployment rate, the inflation, GDP, fiscal policies, there's no magic number. This market needs a correction so new buy opportunities at a discount can be created and this market smells like it's the time to cash out. These are not predictions, those are patterns and patterns tend to repeat in time. "Patterns repeat, because human nature hasn't changed for thousand of years". ~ Jesse Livermore
SP:SPXEducation
by Madrid
3
BTCUSDT: Understanding a breakoutHello traders! This is great advice for you traders and it will make you a profitable trader so read and understand the truth. I am teaching you guys that breakout never works and to make money you should do the opposite of breakout. I already have posted an education post of the breakout but I am posting one more time. If there is a bullish breakout go for a sell, if there is a bearish breakout go for the buy. Trading is a game of probability. The winning probability of selling the bullish breakout is 5 out 6 times. So it's always good to try your luck on a better probability option. My recent wins on this method were 45 out of 50 trades and my account grew 10 times in a two week using 10x leverage. People may call it a fakeout but in reality, it's not a fakeout but it's the true nature of the graph. Ask the questions in the comment section, hit the like button for support and follow to stay connected.
Education
by Aadil1000x
2
KOG - Trading the Range - Update:RANGE BOX: This post was update on the 8th of January. Its a continuation of previous posts about the range box and how to trade it. Please read the linked posts at the bottom. When the price is in a ranging market look for date og when the price was last in its range. Example above shows we had the range, a breakout above and then a break back inside the range. Draw a box around the range and then identify the buy area and the sell area. This stops you from trading in the middle of the range and getting chopped up by the market. Always wait for the lower levels to buy and the higher levels to sell. If either level breaks wait for the support or resistance to turn into support or resistance. This give you an indication of potential further movement in the direction of the breakout. Within the range you will find trends, smaller support and resistance levels and chart patterns. This will further help you to trade within that range of scalp in between levels. Identifying these levels and patterns also give you a view of potential future movement. Again, this helps towards making sure you don’t get caught trading in the middle and getting caught the wrong of the market. Now we’ve updated the range to present day and it gives us a clearer picture of what the market has been trying to do since October 2021. We can the H&S back in November which as yet hasn’t been tested, with patterns like this they don’t always get a retest but on most occasion the price will come back to test it. This tells us that if we break above the range high again there is potential for the price to test that 1860 at some point. We can also see that there is a double top recently which caused the price to break back inside the range. Again, on most occasions its likely the price will want to test the pattern or neckline at some point. This gives us an indication of potential movement in the direction of the double top and if we break the double top (we fail a triple top) then there is a chance we could go further up based on support below to test the shoulder of the H&S from Oct. We then add our every day analysis, support and resistance levels and smaller timeframes to further confirm movement and potential challenges on different price regions. If we now look at the bottom of the chart we have one significant area of interest. That’s the buy area we have been using to take the long trades within the range. We can see its given us a triple bottom in this region where we have seen rejection in price. This area has worked well for Bulls but now we will need to be cautious if the price comes down to challenge this area again. Based on what we mentioned above with patterns its likely the price will want to come down to test this level again at some point. Keeping that in mind we also have to be cautious here as the level has been rejected 3 times forming the triple bottom. The is huge potential now for the next test on this level to break this level aggressively which could take us down towards the lower key support of 1730-20. Update: 20/01/22 So if you look at what was written above you can see that we are close now to testing the pattern which sits around the 1860 level. The range box shows Gold is using the previous liquidity area at the moment as supply to keep the price above the 1830-35 level. So from here what can we expect? As long as that supply levels hold its likely we are going to attempt to test that 1855-60 region where its possible we will see more liquidity enter the market. At the moment bulls are strong which suggest bears are waiting higher up to get in short. So keep an eye on the levels and the zones. Hope this helps traders, its more an educational post rather than our usual analysis but please do back test it and see how it works for you. Any questions please do ask, we try our best to answer everyone.
FX:XAUUSDEducation
by KnightsofGold
5
Illustration of Logarithmic Fibonacci LevelsThis chart illustrates the differences between the linear Fibonacci retracement levels that are generated by the TradingView tool and the Fibonacci retracement levels generated logarithmically (in orange). For example, retracing 61.8% from the high is computed using the following: e^(((ln(high) - ln(low)) * (1-phi)) + ln(low)) The two blue lines are computed logarithmically against the 0.04958 -> 0.739 movement from last year -- the higher line is 50% retraced, the lower line is 61.8% retraced. (One of these were mentioned in the linked related idea.) More than anything, this chart shows that there is a significant difference for values at DOGE/USD's fraction-of-a-dollar level, but that price still seems to respect both. When you're doing Fibonacci analysis on something below a price value of a couple of dollars, like the current DOGE/USD value, keep in mind that this little extra computing by-hand can provide deeper insights into movements!
COINBASE:DOGEUSDEducation
by NeoWhiteRabbit
1
How can I use this trading template? Today I will share a template that may be really helpful to understand some key concepts: First concept: Only look for setups IF the price has reached a major level. In this example, we can see a bearish movement that has reached a weekly level. Why is this relevant? Because if we are working with relevant levels that had worked in the past, we increase the chances of being right regarding an expected movement. Alright, does this mean that I should buy there? ABSOLUTELY NOT; let's go to the second concept Second concept: Once the price has reached a major level, wait for confirmations. Waiting for confirmations means that we have other levels to pay attention to that may provide us solid insights regarding what the price may do next; in this case, we have a descending trendline. A bearish trendline tells us this: Below the line, assume the bearish trend continues; above the line, assume that a possible change in direction may happen. Cool, now is time to buy, right? ABSOLUTELY NOT; let's go to the third concept Third concept: After the breakout of a major structure, WAIT for a correction Most of the time, we will tend to observe a correction after a big structure breakout. That type of behavior can be understood on this template after the breakout. There is a correction happening that we will generally be able to define inner waves; in this case, we have an ABC pattern. Corrections are our final confirmation before engaging with a setup. The position where we tend to observe corrections are in the following places: On the edge of the broken structure / Above the broken structure / On the first minor level after the breakout. Great information! Can I trade now? Yes, now we can define our setup, which takes us to the next concept. Fourth concept: After waiting for several confirmations, we can think about developing setups on the breakout of the corrective pattern (entering above B tends to be an excellent entry-level). Stop loss should always go BELOW C or, in other words, below the last local support zone. Take profit levels can be defined using the next relevant level we may have; these are not the minor levels; I'm speaking the next resistance zone with the same hierarchy as the support we started thinking on bullish opportunities. Fifth concept: This is a template mainly for Swing traders; that's why I wanted to show what to expect in the process between our execution and the take profit level. We may see one or multiple corrections on the way, most of them happening on minor levels. Of course, real trading is much more complex than this, but templates are a good way of understanding concepts and seeing how we can apply this to real market conditions. Another important item I want to highlight is that this type of system tends to have a win rate of around 50%. If we only engage with setups that provide a risk to reward ratio higher or equal than 2, then that's all you need to become profitable. Thanks for reading; if you have any doubts, drop them in the comments, and feel free to share your opinion on this.
OANDA:XAUUSDEducation
by ThinkingAntsOk
7
BITCOIN round number and stop loss hunting 📚📖Today we are going through the brief technical explanation about the round numbers and stop loss hunting round numbers: the round number end in a zero, and have a tendency to attract orders and most of the time attracts many traders and they choose these points for entering and closing the position Point: For open position on round number the proper point for entering to trade is near the round number and not exactly on round number For example: For opening long position(buying) , your entry point should be above the round number and For opening short position(selling) your entry point should be below the round number. Pay attention to the BITCOIN price near the round number 40000 : If you want to open long position it's better to put your entry point above this round number but important point is that if this round number touches usually we have stop loss hunting and it is better to put your stop loss in proper place below the round numbers. Stop loss hunting: It is a strategy that makes market participants out of their position by driving the price to the area that many traders choose to set a stop loss there. For example: here on round number of 40000 we can expect that stop hunting happens and if someone wants to open long position on BITCOIN it is better to put stop loss below the round number with considering 3 percent penetration and if the price breaks this area the support becomes invalid. 🐳MAD WHALE🐋 This is not financial advice, always do your own research. please, fell free to ask your question, write it in comments below and I will answer. 🐋
BITSTAMP:BTCUSDEducation
by MadWhale
13
Trading StrategyDoesn't matter which coin I used, KAVA was picked at random for back testing. The 7, 30, and 100 are used for trend analysis. When both the RSI and MFI are in confluence with support, that is the entry trigger. When above the 7, 30, 100 ride the trend and only exit when bear div on 4hr is apparent, MFI RSI in confluence at overbought, price drops below the 30. Once below the 100, the 100 becomes resistance and the exit trigger. I had one loss when back testing this method. Since these are lagging indicators (especially on the daily) use the 4hr for entry while looking for candle reversal signals at support. 8 trades here = less stress, bigger rewards, less risk. SL should be placed below support at -5%. No leverage, just spot, slow and steady wins the race.
KRAKEN:KAVAUSDEducation
by Happy_Candles
Your only as good as the assets you tradeThis is just a short blog post of a much longer idea! In a recent post we spoke about focusing only on assets that are in play for the day, even tough with day trading you can still make solid profits, especially on the tick charts, trading ranges, a trend will generate you much bigger and more importantly, easier profits. This is why it is vital to focus on assets which could generate momentum, because at the end of the day in day trading you are only as good as the assets you trade. Below you will find a chart of NASDAQ (left) and a chart of XAUUSD (right), one has moved significantly upwards while one was stuck in a whipsaw range which ended up breaking to the down side towards the end of the day on December 31st. Choosing to trade XAUUSD would be much easier to make a profit.
OANDA:XAUUSDEducation
by PrimedGroup
3