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What is Trading Plan? Detailed Example A short ⚠️disclaimer before we start: the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc. Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points. In order to increase the accuracy of your predictions analyzing different financial markets, you must learn to identify the direction of the market.📈 The identification of the market trend must be based on strict & reliable & testable rules. It can be based on technical indicators or price action Personally, I prefer to rely on price action. There are three main types of market trends: Bullish Trend Bearish Trend Sideways Market Depending on the current direction of the market, on the chart, I drew a flow chart✔️ that will help you to act safely. ➡️Sideways market signifies consolidation & indecision. Usually being in such a state the market tends to coil in horizontal ranges. To trade such a market safely, the best option for you will be to wait for a breakout of the range & wait for the initiation of the trend. ➡️Once you spotted a bullish market, do not rush to buy. Your task will be to identify the closest strong structure support . You must be patient enough to let the price reach that support first (and by the way, there is no guarantee that it will happen) and then you must wait for a certain confirmation. Only once you get the needed confirmation you can buy the market. ➡️The same strategy will be applicable to a bearish market. Spotting a short rally it is way early to just sell the asset from a random point. You must find the closest strong structure resistance and wait for the moment when the price will approach that. Then your task will be to wait for a confirmation and only when you got the reliable trigger you short the market. 🦉Try to rely on this flow chart and I promise you that you will see a dramatic increase in your trading performance. And even though it may appear to you that this flow chart is TOO SIMPLE, in practice, even such a set of rules requires iron discipline and patience. Thank you so much for reading this article, I hope you enjoy it! Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
10
Avoiding and Managing Margin Calls Trading on margin offers a variety of potential benefits, as well as some additional risks, including margin calls. This lesson explains margin calls, your obligations, and what you can do to help avoid them. A margin call is a demand from your brokerage firm to increase the amount of equity in your account. You can do this by depositing cash or marginable securities to your account or by liquidating existing positions to generate cash. To avoid margin calls, you need to understand fully what triggers a margin call, along with the steps you can take to minimize the risk of a margin sellout. Margin calls can be a stressful experience with serious financial implications. Your brokerage firm may sell securities you own—without notifying you and without regard to tax consequences—in order to increase the equity in your account. Therefore, consider these suggestions to minimize the odds of experiencing a margin call: Prepare for volatility: Leave a considerable cash cushion in your account that protects you from a sudden drop in the value of your loan collateral. Set a personal trigger point: Keep additional liquid resources at the ready in case you need to add money or securities to your margin account. Monitor your account daily: Consider setting up alerts to notify you when the value of your positions declines significantly. If you fail to understand the concept of margin or not knowing what to do when faced with a margin call from your broker, you will definitely experience the shock of your trading account blow up. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
5
WHY YOU Don't always Receive INTEREST when you are short... Q. I thought that when you go short (sell) that we earn interest (swap fees) per day. But to my surprise I was actually charged interest on my open trade with AUD/NZD. Was I not meant to earn interest?” A. Unfortunately, it depends… With each market you trade, you’ll need to look at the symbol information for each trade you take. This also depends on the deal the broker has with each market. For example, when you SELL AUD/NZD you're essentially buying NZD/AUD (as they are currency pairs). So whether you go long or short, you don't earn interest with short (sell) currencies... But make sure, you always look at Symbol information and see what swaps are positive when you are short. With the AUD/NZD you can see you pay -3.35% per year. That means each day you hold, you’ll have to pay 0.009% per day. Then with some commodities and indices you’ll either earn interest or you’ll have to pay interest when you short (sell). For example, with gold you’ll receive an interest of 1.23% per year. Whereas with cotton you’ll pay 5.4% per year. With the UK 100 FTSE, you’ll pay an annual interest of -0.24%. And with the Dow Jones you’ll receive 0.74% per year. Then with local and international stocks, you’ll receive a certain % of interest (swap fees) per year. So make sure you always check to see what each swap (daily interest fee) entails. This obviously depends on the Market Maker you're using and if you're using Trading View make sure you see the information from your broker what the interest swaps (fees) are when you go long or short.
TVC:SA40Education
by Timonrosso
EXPLAINED: A Bearish Fair Value Gap (FVG) - Smart Money ConceptsA Bearish Fair Value Gap is a 3 candle structure with a DOWN impulse candle (2nd) that indicates and creates an imbalance or an inefficiency in the market. WHAT DO THE IMBALANCES TELL US? These imbalances tell us that the buying and selling is not equal. Now the market needs to rebalance (move at least to 50% of the fair value gap to fill) to make up for the imbalance and rebalance. For this to happen we need to see orders filled in the prices of the candle with the FVG. HOW A BEARISH FAIR VALUE GAP IS CONSTRUCTED: 1st Candle Draw a horizontal line from the bottom of the wick. 3rd Candle Draw a horizontal line from the top of the wick 2nd Candle Draw a BOX between the bottom and the top and pull it over to see the FVG range. BETWEEN CANDLE 1 and CANDLE 3: Do NOT show common prices. They do NOT touch where the lower & the upper wicks do NOT overlap. With a Bearish FVG we can expect the market price to move UP. HOW MUCH? I believe a Bearish FVG needs to close at least 50%. So you can drag a Gann Box or a Fib retracement (take out all the other levels except 50%). Wait for the price to close and fill the prices and boom - Your Bearish Fair Value Gap has been filled. SO WHAT? When you see a Bearish Fair Value Gap, you can expect the price to move up. So you can place your stop loss below the downtrend. You can place your entry where it shows upside is imminent to close the gap. You can place your take profit above the 50% of the formation, as you expect the price to close. But also, we use other confirmation signals with the Bearish Fair Value Gap. Let me know if you have any other SMC (Smart Money Concepts) Questions.
TVC:SA40Education
by Timonrosso
Fundamentals & Technical AnalysisHow to apply fundamental analysis and macroeconomic trends to complement your technical analysis and trading strategy Fundamental analysis and macroeconomic trends are important tools for traders who want to understand the underlying forces that drive the market. Technical analysis, on the other hand, focuses on the price action and patterns of the market. By combining both approaches, traders can gain a more comprehensive and balanced perspective on the market and improve their trading strategy. Fundamental analysis of the macroeconomic environment involves studying the economic, political, and social factors that affect the supply and demand of an asset. Some of the most relevant fundamental indicators are: - Gross domestic product (GDP): This measures the total value of goods and services produced by a country in a given period. It reflects the economic growth and health of a country. A higher GDP indicates a stronger economy and a higher demand for its currency and assets. - Inflation: This measures the change in the average price level of goods and services over time. It affects the purchasing power of money and the interest rates. A moderate inflation indicates a healthy economy with stable growth. A high inflation indicates an overheated economy with excessive money supply and a lower demand for its currency and assets. - Interest rates: This measures the cost of borrowing money. It affects the profitability of investments and the exchange rates. A higher interest rate indicates a tighter monetary policy and a higher demand for its currency and assets. A lower interest rate indicates a looser monetary policy and a lower demand for its currency and assets. - Trade balance: This measures the difference between a country's exports and imports. It reflects the competitiveness and demand for a country's goods and services in the global market. A positive trade balance indicates a trade surplus and a higher demand for its currency and assets. A negative trade balance indicates a trade deficit and a lower demand for its currency and assets. To complement technical analysis and trading strategy, traders can use fundamental analysis and macroeconomic trends to identify the long-term direction and strength of the market, as well as potential opportunities and risks. For example, suppose a trader wants to trade EUR/USD, which is the exchange rate between the euro and the US dollar. The trader can use technical analysis to identify the support and resistance levels, trend lines, chart patterns, indicators, and signals on different time frames. The trader can also use fundamental analysis to assess the economic conditions and outlook of both the eurozone and the US, as well as their relative interest rates, inflation rates, trade balances, and other factors that affect their currencies. Suppose the trader observes that the eurozone has a higher GDP growth rate, lower inflation rate, positive trade balance, and stable interest rate than the US. The trader can infer that the eurozone has a stronger economy than the US, which implies a higher demand for the euro than the US dollar. The trader can also observe that the EUR/USD is in an uptrend on the daily chart, with higher highs and higher lows, supported by a rising moving average. The trader can conclude that the fundamental analysis confirms the technical analysis, which suggests that EUR/USD is likely to continue to rise in the long term. The trader can then use technical analysis to find an optimal entry point to buy EUR/USD. For example, suppose the trader sees that EUR/USD is retracing from a recent high to test a support level at 1.2000, which coincides with a 50% Fibonacci retracement level and a rising trend line. The trader can also see that there is bullish divergence between the price and an oscillator indicator such as RSI or MACD, which indicates that the downward momentum is weakening. The trader can decide to buy EUR/USD at 1.2000, with a stop loss below 1.1900 and a target at 1.2200. By applying fundamental analysis and macroeconomic trends to complement technical analysis and trading strategy, traders can gain a deeper understanding of the market dynamics and enhance their trading performance. If you are stock trading, you should consider the following fundamental indicators which are all readily available as trends on the TradingView platform: - ROE (Return on Equity): This indicator measures how effective a company is in generating profits for its shareholders. It is calculated by dividing the net income by the shareholders' equity. A high ROE indicates that the company is using its resources efficiently and creating value for its owners. - EPS (Earnings Per Share): This indicator measures how much profit a company makes per share of its common stock. It is calculated by dividing the net income by the number of outstanding shares. A high EPS indicates that the company is profitable and can potentially pay dividends or reinvest in its growth. - DYR (Dividend Yield Ratio): This indicator measures how much dividend a company pays per share of its common stock relative to its earnings. It is calculated by dividing the total dividends by the net income or the dividend per share by the earnings per share. A high DYR indicates that the company is rewarding its shareholders with a steady income stream and has confidence in its future prospects. - FCF (Free Cash Flow): This indicator measures how much cash a company generates from its operations after deducting capital expenditures. It is calculated by subtracting the capital expenditures from the operating cash flow. A high FCF indicates that the company has enough cash to pay its debts, invest in new projects, or return money to its shareholders. - PEG (Projected Earnings Growth): This indicator measures how fast a company's earnings are expected to grow in the future relative to its current price. It is calculated by dividing the price-to-earnings ratio by the annual earnings growth rate. A low PEG indicates that the company is undervalued and has strong growth potential. These fundamental indicators can help traders to identify stocks that are overvalued, undervalued, or fairly priced based on their financial performance and future prospects. They can also help traders to compare different stocks within the same industry or across different industries and sectors.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
XAUUSD 17/4/2023 Outlook. Bullish?Good evening gold gang! hope you are well rested and ready to destroy the yellow metal with me. Ok price dropped as expected last week and landed in a very major price level. If you zoom out to the weekly and monthly, you will see that price is on the end of an upward channel .. and any breaks below could mean we are moving down. In the mean time though with a lot of FUD around the dollar .. xauusd is still high and i believe people want to see the all time high broken. We will need a major "news" catalyst to get back up there though. When i put inverted commas around news, i meant corruption lol The zone where we are at currently is messy .. very messy. There is a clear imbalance there but id rather see the zone flush out first .. so buys for me are above 2022. The level below could be prime for a fakeout .. so ill be watching for that too .. candle close below and we are down down down. Sells below 1993 should be nice and straight forward there not much to get in the way. Im just hoping for volume. A few red folders but nothing major this week. Have a good session guys please like and follow along for more gold trading analysis. tommy
OANDA:XAUUSD
by tommyXAU
7
The Process of Creating StrategyHello traders, In this post i am going to show that how we can create and develop the trading strategy that works. Now the first step we need to do is just search and find the any trading method that suitable for us for example that would be like elliott wave, ict concept, VSA, just using indicators and maybe you can also create your own method and backtest it. when you learned the method now its time to create your trading rules every strategy has own different rules like what is your risk to reward ratio? what is your trade management plan? either you manage your trade or just take the trade and come back after its hit TP or SL, how much is your daily limit means how much trades you will be taking in a day or in a week if you want to become a swing trader depends on you, what is your risk per trade? can you will be cutting the risk to half or just use fixed risk after lose trade? what is your daily limit of losing? can you hold trade overnight or over weekend? what is your trading timeframe? what is your trading sessions? etc... These all kind of rules you will be require to create for yourself they might be different rules depends on your strategy method now we learned the method and created the rule move forward to the next step is open the live demo trading account and trade with your strategy and apply the rules don't break the rules that you created trade at least 30 days and journal your data your taking trades after 30 days check the journal you will see your data for example in your rules you set 1/2 risk reward ratio so you need to have around 40% winning ratio check the journal check the results did you have a 40% winning ratio if the answer is yes then good to go i am sure that you know what to do next but if you failed and your winning ratio is below 40% now analyze your journal data the trades you taken you will see some of bad trades that you don't wanted to trade again just avoid those trades next time and try again the process for the next 30 days. repeat the process one day you will be profitable and consistent but if you not then try again again learn from your mistakes and don't do that mistakes again. When yo have been profitable this is the time you wanna enter in the market open the real live trading account and start trading with your strategy and follow the rules that you created for yourself run the process and always remember trading is not quick rish scheme you need to have a lot of patience, trading is a long run game like marathon race and its required patience. some of my advice is don't try to break the rules, don't depend on one trade, some times market will give you some results that you don't want from it but be patient and be consistent with your strategy with your rules, you will be facing drawdowns but that is the learning process you will learn a lot from the drawdown so with the time you will be better consistent and be profitable just don't leave the process too soon and believe in yourself and try again again and again, trading is a very beautiful and also the easiest thing to live life but firstly in the starting it required from us to pass the test. trading is a very easiest thing but also a very hardest thing. i hope you find this post useful, i wish you good luck and good trading. If you like the post, boost my work with like comments and share thanks!
Education
by TheLoserMan
1
One Trade Does Not Define Your Trading Performance... Hey traders, 👨🏻‍💻I am trading forex for more than 8 years. During the last 5 years, I am actively posting my analysis & trades on TradingView. Growing my audience, it was very peculiar for me to contemplate the reaction of my followers to my trading performance. (by the way, we must say thanks to tradingview where the posting system does not allow to delete the posted trades so that each and every author is easily backtestable). 👩‍👩‍👧‍👧👨‍👨‍👧‍👧Those who follow me at least a half a year know that occasionally I have winning streaks when 9 out of 10 of my forecasts play out nicely. Sometimes, however, I face the drawdowns and catch a sequence of losing trades. And sometimes the performance is mixed with the probabilities being on my side slightly. 🥇While the reaction to winning streaks is quite predictable: I am praised by the members and get nice tips. The reaction to losing streaks is worth discussing in detail. It turned out that quite a huge portion of a trading community has a completely wrong understanding of a trading nature. 🤬The single loss is considered by them to be a failure, a mistake. Facing the sequence of losses, they quickly become negatively biased to the person that they have just recently praised. With the continuation of a drawdown, they blame the analyst and launch a barrage of criticism towards him. 🔍Then they are in a search again. They are looking for a trader that will be constantly right. Catching the new one during a winning streak, the cycle repeats. At some moment such people become disappointed in trading and drop this business... ❗️Losses, losing streaks and negative days/weeks/months are inevitable. If you want to become a full-time trader, you must be prepared for the fact that trading won't give you a stable income. Your equity curve will be in constant fluctuation. Your goal in this game is simply to lose less than you make. You must become disciplined enough to keep following the rules of your trading strategy no matter what. You must learn to be consistent in your actions. You should learn to perceive losing trades not as a failure but simply as the moment when the market takes its share. Feeding you, giving you the opportunity to make money out of thin air, the market definitely has a right to claim its dividends from you. ⭐️Change your mindset, learn to lose and the magic thing will happen. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
13
A Trader's Guide to Market ConditionsThere are six main types of market conditions that every trader needs to know: bull quiet, bear quiet, bull volatile, bear volatile, bear sideways, and bull sideways. In this blog post, we'll dive into each of these conditions in detail, so you can understand what they mean for your investments and trading. Bull quiet conditions may be ideal for long-term investors, with steady upward trends and low volatility. On the other hand, bear quiet conditions can make finding profitable trades a challenge. But don't despair! Short-term traders may still be able to make profits by taking advantage of small price fluctuations. If you're looking for short-term gains, bull volatile conditions may be the way to go. These periods of economic growth and prosperity can lead to larger price swings than in bull quiet conditions. But beware, the opposite is true for bear volatile conditions. Prices are steadily declining, but with high levels of volatility. Still, traders can profit by taking advantage of large price swings. Bear and bull sideways conditions are characterized by a lack of clear direction in price movements. While traders may find it challenging to make profits in bear sideways conditions, they can take advantage of small price fluctuations in bull sideways conditions. Understanding these market conditions is crucial for making informed trading decisions. By being aware of each of these six conditions, you can increase your chances of making profitable trades and maximizing your returns. So if you want to elevate your trading game, backtest these market conditions and see what your trading results you'd get trading each condition.
by ShaquanLopez
2
USDCAD Long EOD strat© BNPP Global FX Positioning Tracker: CAD shorts extend • In G10, FX USD shorts reduce slightly to -17 from -18 last week (+/-50 scale), as our proxy for real money investors reduces shorts. • CAD shorts extend to -23 from -15 last week, as our proxy for electronic trading venues extends shorts and our proxy for real money investors unwinds longs. Technically the US dollar index is pushing higher and making a go at a bullish trend. We are seeing the US10 year yields at elevated levels and uncertainty in the equities. Oil is below the average price level of around $80 and supporting fiscal flows in the US economy are high.
Long
by Macrobriefing
Bullish on BTC: Analysis and Strategy for Long Trade at $27kBTC has seen a significant pullback from its recent all-time high of around $69,000 in November 2021, and it is currently trading around $27,000. However, there are still reasons to be bullish on BTC over the long term. First, BTC has been through several market cycles before, and historically, it has always recovered and gone on to new all-time highs. Second, there is increasing adoption and acceptance of BTC as a store of value and a medium of exchange, with several major corporations and institutions investing in BTC and integrating it into their operations. From a technical analysis perspective, BTC is currently trading in a range between around $28,000 and $32,000, with a strong support level around $26,000. If BTC can hold this support level and break above the upper end of the range, it could signal a potential bullish reversal. To go long on BTC, one potential strategy could be to wait for confirmation of a breakout above the range and enter a long position with a stop loss below the support level. It is important to remember that trading BTC, like any investment, carries risks, and it is crucial to conduct your own research and risk management before making any trades. #BTC #cryptocurrency #tradingstrategy #longtrade #technicalanalysis #storeofvalue #investing #financialmarkets
CRYPTO:BTCUSDLong
by ss7trader
ZEUS Bullish MACD Setup - High Accuracy of Winning TradesOur MACD Setup is created to reveal winning entry points for a trade with high accuracy. In our MACD Setup we combine multiple conditions to recognize only strong entry points. Multiple factors need to be met in confluence: 1. Recognize the Trend = Bullish / Bearish Trend (50 EMA is Above / Below 200 EMA) 2. There is a MACD Cross = Bullish / Bearish MACD Cross (MACD Cross is Below / Above Zero Horizontal Line) 3. Avoid False Signals in a Sideways Markets = MACD Cross far from horizontal zero “0” line 4. Filter only Strong Trend Situations = Candle Close above/below 200 EMA 5. Avoid Extreme Values in RSI = check if there is way to go before we get oversold/overbought 6. Our Algorithm Filters Signals in Side Trend and Low Volume Markets Let´s explain the conditions step by step 1. Recognize the Trend Exponential Moving Average (EMA) is one of the most effective trend identification indicator. Traders like it because of it its simplicity. EMA is usually used in combination between 200 days (as a slow indicator) and 50 days (as fast indicator of the trend). Bullish Trend = EMA 50 is Above EMA 200 Bearish Trend = EMA 50 is Below EMA 200 2. There is a MACD Cross After we recognized the Trend (Bullish Trend in our case) we would like to trade with the trend so we are looking for Bullish MACD Cross. Bullish MACD Cross is Below Zero Horizontal Line 3. Avoid False Signals in a Sideways Markets So we found Bullish MACD Cross and now we want to be sure that the Cross far away from the Zero Horizontal Line. Our algorithm filters crosses and shows only signals with decent distance form Zero Horizontal Line. 4. Filter only Strong Trend Situations Once we have met the first three criteria (Bullish Trend and Bullish MACD Cross far from Zero Horizontal Line) we need confirmation that the market is still strong and is moving forward in an uptrend. So we look at price action and there need to be Candle Close Above EMA 200 . Closing about EMA 200 indicates continuation of the trend. 5. Avoid Extreme Values in RSI The other condition is based on RSI and we are looking only for situations where RSI is not overheated so there is a way for trend continuations. In our case RSI was in the middle values so we can expect market to continue its uptrend. 6. Our Algorithm Filters Signals in Side Trend and Low Volume Markets We have developed our own Algorithm which filters signals in low volume markets and side trend.
BINANCE:ADAUSD.PEducation
by ZEUS_Algo_Indicators
Key Levels and Market overview for the Asian session open 2/03A review of the price action from the European session and US sessions which gave us some choppy price action. Markets remain under some pressure from sellers with DAX and FTSE giving back earlier gains while the US edged lower. The USD found some sellers which supported Gold while US bond yields rallied again and Oil ranged....mixed bag really!! I look at some key levels to watch and the price action setups I expect to see play out. Markets covered :- DOW Nasdaq DAX FTSE ASX200 Hang Seng USD Index Gold Oil Copper
NYMEX:CL1!
by TradeTheStructure