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Support and Resistance

Pulse of an asset via Fibonacci: ETH near a minor Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
COINBASE:ETHUSDEducation
by EuroMotif
1
GBPUSD Identifying fake break outs/bear traps using BB/BB%An oscillator is an oscillator. There are some variations.. I don't think any of them are better or worse. An indicators effectiveness is only as good as the operator using it. Point is, this applies to RSI, MFI, Stoch/stoch RSI. You just have to know what things mean when they get there... and its not hard. Skipping other factors and focusing on the spring/fake out here. breaking this down in 2 ways: 1- Bollinger band. if you look carefully at where the candle breaks the demand/support line make note of the volume and wether of not it was stopping volume (refer to master the markets/wyckoff analytics for in depth explanation or stopping action) look at the double bottom fake break out on the formation furthest left: support was formed on high volume - price rises to test resistance where the volume dissipated- then as price returns to test that support, it fakes a move to the downside (bear trap). Schematic provided. price leaves the trading range and begins marking up.. if price leave the tr you dont want to chase but want to wait for an additionl pullback. Break-test-continuation schematic provided. example furthest right is a repeat. Re-accumulation/support established.. break of support on the re-test.. FAKE OUT 2- BB% (oscillator). if looking for a long entry and waiting for the fake out bear trap.. you will generally see it appear in 2 places (ON THE 1 HOUR) either a break of the median line with stopping volume or a break of the "oversold" level of your oscillator Area of confluence high lit. The entire process reverses in a downtrend scenario (upthrust/fake break out). More interesting things to look for with an oscillator will follow.
Education
by dee718
What Are Fibonacci Retracements and Fibonacci Ratios?How Fibonacci Ratios Work Before we can understand why these ratios were chosen, let's review the Fibonacci number series. The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the ratios used by technical traders to determine retracement levels. The key Fibonacci ratio of 61.8% is found by dividing one number in the series by the number that follows it. For example, 21 divided by 34 equals 0.6176, and 55 divided by 89 equals about 0.61798. The 38.2% ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194. The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example, 8 divided by 34 equals about 0.23529. Fibonacci Retracement and Predicting Stock Prices For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature. Technical traders attempt to use them to determine critical points where an asset's price momentum is likely to reverse. Fibonacci retracements are the most widely used of all the Fibonacci trading tools. That is partly because of their relative simplicity and partly due to their applicability to almost any trading instrument. They can be used to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. Fibonacci ratios can even act as a primary mechanism in a countertrend trading strategy. Fibonacci retracement levels are horizontal lines that indicate the possible locations of support and resistance levels. Each level is associated with one of the above ratios or percentages. It shows how much of a prior move the price has retraced. The direction of the previous trend is likely to continue. However, the price of the asset usually retraces to one of the ratios listed above before that happens. The following chart illustrates how a Fibonacci retracement appears. Most modern trading platforms contain a tool that automatically draws in the horizontal lines. Notice how the price changes direction as it approaches the support and resistance levels. Fibonacci Retracement Pros and Cons Despite the popularity of Fibonacci retracements, the tools have some conceptual and technical disadvantages that traders should be aware of when using them. The use of the Fibonacci retracement is subjective. Traders may use this technical indicator in different ways. Those traders who make profits using Fibonacci retracement verify its effectiveness. At the same time, those who lose money say it is unreliable. Others argue that technical analysis is a case of a self-fulfilling prophecy. If traders are all watching and using the same Fibonacci ratios or other technical indicators, the price action may reflect that fact. The underlying principle of any Fibonacci tool is a numerical anomaly that is not grounded in any logical proof. The ratios, integers, sequences, and formulas derived from the Fibonacci sequence are only the product of a mathematical process. That does not make Fibonacci trading inherently unreliable. However, it can be uncomfortable for traders who want to understand the rationale behind a strategy. Furthermore, a Fibonacci retracement strategy can only point to possible corrections, reversals, and countertrend bounces. This system struggles to confirm any other indicators and doesn't provide easily identifiable strong or weak signals. The Bottom Line Fibonacci trading tools suffer from the same problems as other universal trading strategies, such as the Elliott Wave theory. That said, many traders find success using Fibonacci ratios and retracements to place transactions within long-term price trends. Fibonacci retracement can become even more powerful when used in conjunction with other indicators or technical signals. Investopedia Academy's Technical Analysis course covers these indicators as well as how to transform patterns into actionable trading plans.
Education
by Saeed966
6
Ascending ChannelKEY TAKEAWAYS An ascending channel is used in technical analysis to show an uptrend in a security’s price. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. Understanding Ascending Channels Within an ascending channel, price does not always remain entirely contained within the pattern’s parallel lines but instead shows areas of support and resistance that traders can use to set stop-loss orders and profit targets. A breakout above an ascending channel can signal a continuation of the move higher, while a breakdown below an ascending channel can indicate a possible trend change. Ascending channels show a clearly defined uptrend. Traders can swing trade between the pattern’s support and resistance levels or trade in the direction of a breakout or breakdown. Trading the Ascending Channel Support and Resistance: Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses. Traders who use this strategy should ensure there is enough distance between the pattern’s parallel lines to set an adequate risk/reward ratio. For example, if a trader places a $5 stop, the width of the ascending channel should be a minimum $10 to allow for a 1:2 risk/reward ratio. Breakouts: Traders could buy a stock when its price breaks above the upper channel line of an ascending channel. It is prudent to use other technical indicators to confirm the breakout. For example, traders could require that a significant increase in volume accompanies the breakout and that there is no overhead resistance on higher time frame charts. Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern. Price failing to reach the upper trend line frequently is one such warning sign. Traders should also look for negative divergence between a popular indicator, such as the relative strength index (RSI), and price. For instance, if a stock’s price is making higher highs within the ascending channel, but the indicator is making lower highs, this suggests upward momentum is waning. Envelope Channels Envelope channels are another popular channel formation that can incorporate both descending and ascending channel patterns. Envelope channels are typically used to chart and analyze a security’s price movement over a longer period of time. Trend lines can be based on moving averages or highs and lows over specified intervals. Envelope channels can use similar trading strategies to both descending and ascending channels. This analysis will typically be based on a stock price movement over an extended period of time while ascending and descending channels can be beneficial for charting a security’s price immediately after a reversal.
Education
by Saeed966
GBPUSD Bollinger band/BB% (tips/tricks)Here the color scheme was changed to represent our favorite two things in trading: supply/demand. If you are new to trading or supply/demand methods, You can maybe employ BB's (or any other channels). Red/supply line: use as reminder not to buy into weakness. Green/Demand line: use as a reminder not to sell into strength. More important.. think of the green line as the "accumulation" or demand side Red as the "distribution" or supply side. Look at where all the action is. Look at were the candles were before any subsequent impulse. Where do they generally begin from? taking a look at the BB and BB% do any moves really begin near the median? .. generally no. this is what is meant buy fishing from the edges and not from the center. Using the BB% (RSI/MFI will be similar) .. look at the same thing. Look at the extremes or edges and the volume. When price breaks the demand line, is the volume high? is there active accumulation going on? - IF the volume is high with each break of the demand line, they are buying and likely looking for a clear mark up path, which can take days. When price breaks the supply line, is there an increase in volume pushing the price back into range? -IF the volume is high with each break of the supply line, they are selling and likely looking for a lack of demand which allows for a clear path to mark don... this can also take a few days. Biggest takeaway from this is the principle of not buying or selling when price is in the middle of a range. When price is in the middle of a trading range or consolidation (some of you know it as consolidation, just another way of saying trading range) the market is IN BALANCE.. there is equilibrium between supply and demand at that moment. Price will "consolidate" for either a mark-down or a mark-up. When price is behaving in this manner it means that it has not decided which way to go and is waiting for an imbalance... if more supply accumulated then demand... price will fall..if there was more demand than supply.. then price will break to the up side. PM if confused! Avoid buying into weakness/supply/resistance Avoid selling into strength/demand/support Avoid entry when price is in middle of a range (phase B) And Don’t let them win
Education
by dee718
2
How to Trade the Head and Shoulders PatternThe head and shoulders chart pattern is a reversal pattern and most often seen in uptrends. Not only is head and shoulders known for trend reversals, but it’s also known for dandruff reversals as well. In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff for another time. Head and Shoulders A head and shoulders pattern is also a trend reversal formation. It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). A “neckline” is drawn by connecting the lowest points of the two troughs. The slope of this line can either be up or down. Typically, when the slope is down, it produces a more reliable signal. In this example, we can easily see the head and shoulders pattern. The head is the second peak and is the highest point in the pattern. The two shoulders also form peaks but do not exceed the height of the head. With this formation, we put an entry order below the neckline. We can also calculate a target by measuring the high point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. You can see that once the price goes below the neckline it makes a move that is at least the size of the distance between the head and the neckline. We know you’re thinking to yourself, “the price kept moving even after it reached the target.” And our response is, “DON’T BE GREEDY!” Inverse Head and Shoulders The name speaks for itself. It is basically a head and shoulders formation, except this time it’s upside down. A valley is formed (shoulder), followed by an even lower valley (head), and then another higher valley (shoulder). These formations occur after extended downward movements.
Education
by Saeed966
2
EURUSD: Long Term Perspective & Trend Analysis hey guys, I know that many of you are expecting a coming bearish movement on a daily on EURUSD. analyzing a weekly time frame though, I want to warn you that the pair has still much space for a bullish continuation. on a weekly, the price is clearly trading in a global bearish trend. spring's covid bullish rally made the market set a higher low and triggered a bullish rally, and it looks like a long term goal for buyers is 1.21 - 1.25 wide supply cluster. this zone is based on 2008'th, 2010'th, 2012'th lows and 2018'th high. in my view, a strong weekly bearish movement will most likely start from that area. however, what makes me extremely cautious is the recent higher low. usually, it is the first strong signal of a coming trend change. if the above-mentioned zone is broken buy buyers, It will signify a long term bearish trend violation and start of a new long term bullish trend. as always we can only speculate about the probabilities of both events. but clearly decision point is close.
Education
by VasilyTrader
10
EURUSD What to look for when price is drawn to low pressure/refYou may have to zoom into the areas here to see the detail. I tried to point it out on the chart. It's not difficult to see. TA is an exercise in logic. There are principles and there are techniques. If you understand the principles then it almost doesn't matter what tools you use. However there are tools that will facilitate in enhancing your ability to see the principles at play. They can go hand in hand. If you only now how to use indicators (or think you do) but you dont understand the reason why the market moves the way it does, you are going to eventually run into issues because you are expecting your indicator to do something but it does not and you may not be able to articulate why and you should be able to. VOLUME is essential if you want to track the movements of institutions.. AKA SM. Price will generally be drawn to the path of least resistance(low pressure). Make a note of these areas.. draw a box/line. Wait for price to get drawn to this area when the market begins to open... As price is drawn to that low pressure zone for a test or re-test.. watch the volume... watch the pressure. The example here was fairly clean and is self explanatory Learn volume.. add it to your current game.. start being aware of it and start using it. HUGE disadvantage if you choose not to (IMO)! I am retired so have had some time on my hands with all thats going on. I really enjoy the problem solving exercise that TA is. I almost max out my allowable posts every day... I deliberately put the date and time. You can see the after action for yourself. Volume works. Sources of education: Richard Wyckoff Tom Williams Volume spread analysis VSA/ Master the Markets Pete Faders VSA* Read the ticker dot com Wyckoff analytics Dee Nixon Good luck Avoid buying into weakness/supply/resistance Avoid selling into strength/demand/support Avoid entry when price is in middle of a rage (phase B)
Education
by dee718
Pulse of an asset via Fibonacci: ATOM at Major Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
BINANCE:ATOMUSDEducation
by EuroMotif
PLUG 21 AUG 2020 (MRKT Closed)Looking at some stocks that have usable volume. Usually on the forex and crypto side. Principles are the same, but its taking some getting used to. Saw this pullback in an up trend example where you can see the low pressure at resistance and INCREASE in demand as it creates support. More demand + less supply = higher prices. Look for demand at key support (from below) look for supply at key resistance(from above) Can see the fake out below support with the immediate push back into a range (trapped short chasers). Pretty recognizable stuff. May have to add it to the menu when looking for optimal set up situations.
NASDAQ:PLUGEducation
by dee718