▶️▶️▶️ What is Wyckoff method? ◀️◀️◀️▶️▶️▶️ What is Wyckoff method? ◀️◀️◀️
This trading method was developed by Richard Wyckoff in the early 1930s. It consists with series of principles and strategies originally designed for traders and investors. Wyckoff devoted much of his life experience for studying market behavior, and his work still influences much of modern technical analysis (TA). Currently, the Wyckoff method is applied to all types of financial markets, although initially it was focused only on stocks.
Richard has conducted a large amount of research that has led to the creation of several theories and methods of trading. This article provides an overview of his work and includes three fundamental laws.
✔️ Three Laws of Wyckoff ✔️
1️⃣ Law of supply and demand
The first law states, that the value of assets start rising when demand exceeds supply, and accordingly falls in the opposite direction. That's one of the most basic principles in the financial markets, that Wyckoff doesn't rule out in his writings. We can represent the first law as three simple equations:
📍 Demand > Supply = price Max;
📍 Demand < supply = price falls;
📍 Demand = supply = no significant
price change (low volatility).
In other words, Wyckoff's first law suggests, that an excess of demand over supply causes prices to rise because there are more buyers than sellers. But in a situation where there are more sales than buyers, and supply exceeds demand, it indicates a further drop in value.
2️⃣ Law of Cause and Effect
The second law states, that the differences between supply and demand are not a coincidence. Instead, they reflect preparatory actions resulting from certain events. In Wyckoff's terminology, an accumulation period (cause) eventually leads to an uptrend (effect). In turn, the distribution period (cause) provokes the development of a downtrend (consequence).
3️⃣ The law of connection between efforts and results
Wyckoff's third law states, that changes in price are the result of a collective effort that's reflected in trading volume. In the case when the growth in the value of an asset corresponds to a high trading volume, there is a high probability that the trend will continue its movement. But if the volumes are too small at a high price, the growth is likely to stop and the trend may change its direction.
❗️❗️❗️ For example, let's imagine that the Bitcoin market starts consolidating with very high volume after a long bearish trend. High trading volumes indicate great effort, but sideways movement (low volatility) suggests little result. If a large amount of bitcoin changes hands and the price does not fall significantly, this may indicate that the downtrend may be ending and there will be a reversal soon.
You can find more my educational posts by hashtag #rocketbombeducational (You can click it under the pic of this post)
Thanks for your attention
I'll be glad to see your feedback
Sincerely yours Kateryna💙💛
Trend Analysis
Advanced Trading Strategies Using Multiple IndicatorsTechnical Analysis Report: Advanced Trading Strategies Using Multiple Indicators
Introduction:
In this educational video, a comprehensive approach to technical analysis is presented, focusing on the identification of trend reversals and entry points in the market. The strategy incorporates a diverse set of indicators and concepts to enhance trading precision and decision-making.
Key Components:
1. Indicators Utilized:
- Fibonacci Retracement (Fibonacci)
- Average True Range (ATR)
- Cumulative Volume Delta
- Smart Money Concepts
- Relative Strength Index (RSI)
- Trailing Stop Loss ATR
- Ichimoku Kinko Hyo (Ichimoku)
2. Objective:
The primary goal of the strategy is to pinpoint the transition from a downtrend to an uptrend, facilitating well-timed trading decisions. By combining various technical tools, traders aim to increase the probability of successful trades.
3. Trading Philosophy:
- The emphasis on Ichimoku Kinko Hyo as a foundational element underscores the strategy's commitment to deriving signals from this powerful indicator.
- The reference to being an "Ichimokian" reflects a dedication to mastering Ichimoku strategies and principles in trading practices.
Conclusion:
By integrating a spectrum of indicators such as Fibonacci, ATR, volume analysis, RSI, and Ichimoku, traders following this methodology can gain a more holistic view of market dynamics. The utilization of these tools in conjunction with each other enhances the ability to identify optimal entry and exit points, laying a strong foundation for informed and strategic trading decisions.
This video encapsulates the essence of the educational content, offering insights into the advanced technical analysis approach advocated by the "ICHIMOKUontheNILE" community.
Trade identification: Using bitcoin as an exampleHello,
Trade identification is the process through which you are able to identify setups that can be actioned on in the markets. For this example, I shall be using the BTCUSD chart to chant my path as I look for tradeable setups.
1: Structure drawing
Identifying the structure of trades is very key since it creates a sense of knowing where the market is at from a greater point of view.
The structure on a 2 weeks chart shows that the crypto is at the top of the chart. This shows that it might not be a good time to buy since it is advisable to buy at the bottom and sell at the top. However, we can always look for smaller trades using lower timeframes and get better setups.
2: Move to lower time frames & identify patterns.
Patterns are very key in helping you identify tradeable assets. For my asset I moved to the 6h timeframe to zone in and identify tradeable opportunities. This helped me identify the Expanding triangle setup on a bigger scale.
This is a sideways move that will help me trade on the asset for the short term. In the expanding triangle I was able to identify other smaller correction patterns that guide me on how the market is moving.
3: Entry identification
After you have determined where you are at in the eco cycle, very key is now to identify the next causes of action. You must never trade at the top (buying overpriced assets). Very important is to always note that there will always be more opportunities in the future and never to chase trades that have already gone. The ideal situation is to look for corrections as entry points and buy/sell with them.
Next now will be to look for areas where you can enter on an even lower timeframe.
The chart shows that a correction is happening on a lower timeframe (1hour). Now have an alert at the bottom of the correction also coupled with indicators.
Thats the entry point of the trade.
4: Target setting
The exit target shall be set using the 6 hour chart and will be at the top. A stop loss will be just behind the trendline as shown below. This is very key for risk management.
Now wait for the price to come close to your entry points and good luck. We shall follow this trade to end.
Advanced Trading Strategies Using Multiple IndicatorsTechnical Analysis Report: Advanced Trading Strategies Using Multiple Indicators
Introduction:
In this educational video, a comprehensive approach to technical analysis is presented, focusing on the identification of trend reversals and entry points in the market. The strategy incorporates a diverse set of indicators and concepts to enhance trading precision and decision-making.
Key Components:
1. Indicators Utilized:
- Fibonacci Retracement (Fibonacci)
- Average True Range (ATR)
- Cumulative Volume Delta
- Smart Money Concepts
- Relative Strength Index (RSI)
- Trailing Stop Loss ATR
- Ichimoku Kinko Hyo (Ichimoku)
2. Objective:
The primary goal of the strategy is to pinpoint the transition from a downtrend to an uptrend, facilitating well-timed trading decisions. By combining various technical tools, traders aim to increase the probability of successful trades.
3. Trading Philosophy:
- The emphasis on Ichimoku Kinko Hyo as a foundational element underscores the strategy's commitment to deriving signals from this powerful indicator.
- The reference to being an "Ichimokian" reflects a dedication to mastering Ichimoku strategies and principles in trading practices.
Conclusion:
By integrating a spectrum of indicators such as Fibonacci, ATR, volume analysis, RSI, and Ichimoku, traders following this methodology can gain a more holistic view of market dynamics. The utilization of these tools in conjunction with each other enhances the ability to identify optimal entry and exit points, laying a strong foundation for informed and strategic trading decisions.
This video encapsulates the essence of the educational content, offering insights into the advanced technical analysis approach advocated by the "ICHIMOKUontheNILE" community.
Advanced Trading Strategies Using Multiple IndicatorsTechnical Analysis Report: Advanced Trading Strategies Using Multiple Indicators
Introduction:
In this educational video, a comprehensive approach to technical analysis is presented, focusing on the identification of trend reversals and entry points in the market. The strategy incorporates a diverse set of indicators and concepts to enhance trading precision and decision-making.
Key Components:
1. Indicators Utilized:
- Fibonacci Retracement (Fibonacci)
- Average True Range (ATR)
- Cumulative Volume Delta
- Smart Money Concepts
- Relative Strength Index (RSI)
- Trailing Stop Loss ATR
- Ichimoku Kinko Hyo (Ichimoku)
2. Objective:
The primary goal of the strategy is to pinpoint the transition from a downtrend to an uptrend, facilitating well-timed trading decisions. By combining various technical tools, traders aim to increase the probability of successful trades.
3. Trading Philosophy:
- The emphasis on Ichimoku Kinko Hyo as a foundational element underscores the strategy's commitment to deriving signals from this powerful indicator.
- The reference to being an "Ichimokian" reflects a dedication to mastering Ichimoku strategies and principles in trading practices.
Conclusion:
By integrating a spectrum of indicators such as Fibonacci, ATR, volume analysis, RSI, and Ichimoku, traders following this methodology can gain a more holistic view of market dynamics. The utilization of these tools in conjunction with each other enhances the ability to identify optimal entry and exit points, laying a strong foundation for informed and strategic trading decisions.
This video encapsulates the essence of the educational content, offering insights into the advanced technical analysis approach advocated by the "ICHIMOKUontheNILE" community.
Advanced Trading Strategies Using Multiple IndicatorsTechnical Analysis Report: Advanced Trading Strategies Using Multiple Indicators
Introduction:
In this educational video, a comprehensive approach to technical analysis is presented, focusing on the identification of trend reversals and entry points in the market. The strategy incorporates a diverse set of indicators and concepts to enhance trading precision and decision-making.
Key Components:
1. Indicators Utilized:
- Fibonacci Retracement (Fibonacci)
- Average True Range (ATR)
- Cumulative Volume Delta
- Smart Money Concepts
- Relative Strength Index (RSI)
- Trailing Stop Loss ATR
- Ichimoku Kinko Hyo (Ichimoku)
2. Objective:
The primary goal of the strategy is to pinpoint the transition from a downtrend to an uptrend, facilitating well-timed trading decisions. By combining various technical tools, traders aim to increase the probability of successful trades.
3. Trading Philosophy:
- The emphasis on Ichimoku Kinko Hyo as a foundational element underscores the strategy's commitment to deriving signals from this powerful indicator.
- The reference to being an "Ichimokian" reflects a dedication to mastering Ichimoku strategies and principles in trading practices.
Conclusion:
By integrating a spectrum of indicators such as Fibonacci, ATR, volume analysis, RSI, and Ichimoku, traders following this methodology can gain a more holistic view of market dynamics. The utilization of these tools in conjunction with each other enhances the ability to identify optimal entry and exit points, laying a strong foundation for informed and strategic trading decisions.
This video encapsulates the essence of the educational content, offering insights into the advanced technical analysis approach advocated by the "ICHIMOKUontheNILE" community.
Trapped traders provides a great Short opportunity on DOW The plan for the session was to trade short off resistance on the DOW after an initial opening drive higher. The short side was the play and paid out nicely for patient sellers.
In the video I talk through the key Price Action for the move and prime trade areas on the DOW Index.
ANY QUESTIONS, JUST LEAVE IN THE COMMENTS !!
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🟣 Channel Trading Strategy 🟣
Hello, friends! 👋🏻Today I'll wanna share with You my knowledge about channel trading strategy.
❗️ Channel Trading Strategy ❗️ is a classic form of trading in both crypto and other markets.
This is a trend trading strategy , so accuracy and safety are very high. Today, I will present all of you about the Channel pattern and how to trade with it in the most complete and detailed way.
❓ What is a Channel Pattern? ❓
The Channel pattern is a development of price following the trend which consists of two parallel support and resistance levels. Prices will fluctuate and create trends along the corridor created by these two levels.
⚡️This pattern ends when the price breaks out of either the resistance or support and creates a new trend . The breakout direction is often in the opposite direction to the direction of the pattern.👇
Two Common Types of Channel Patterns
With two parallel and horizontal resistance and support levels, this is a rectangular price pattern.
Channel Up or Ascending Channel
This Channel pattern type has two parallel and upward levels of Resistance and Support . The breakout of this pattern will usually be at the support. After the breakout, the price will reverse down. In some cases, the price may retest this support.
Channel Down or Descending Channel
In contrast to the Channel Up pattern, we have the Channel Down pattern with two parallel and downward levels of resistance and support. After creating this pattern, the price usually breaks out upwards (resistance breakout) and goes up. It is possible for a strong uptrend to appear after this breakout.
Trade Effectively with the Channel Pattern
There are two types of trading using the Channel pattern: trading within the price channel and trading as per the breakout of the pattern.
💡With this type of trading, You should remember clearly: In a Channel Up, only open UP orders. Conversely, in Channel Down, you can only open DOWN orders.
How to Open an Order?
🔺 For a Channel Up: 🔺
Entry Point: When the price hits the support of the price channel.
Stop-Loss: At the previous position where the price touched the support.
Take-Profit: When the price hits the resistance.
If the previous order wins, the stop-loss of the following order will be the entry point of the previous order.
🔻 For a Channel Down: 🔻
Entry Point: When the price hits the resistance.
Stop-Loss: At the previous position where the price touched the resistance.
Take-Profit: When the price hits the support.
Trade After the Breakout
The trading strategy is based on the breakout point of the price channel. This is a very good signal of a trend reversal. You open an order as follows.
🔺 For a Channel Up: 🔺
Entry Point: When the candlestick breaks out of the support.
Stop-Loss: At the previous position where the price touched the resistance.
Take-Profit: When price re-touches the support levels it creates within the pattern.
🔻 For a Channel Down: 🔻
Entry Point: When the candlestick breaks out of the resistance.
Stop-Loss: At the previous position where the price touched the support.
Take-Profit: When price re-touches the resistance level it creates within the pattern.
The article is a bit long. However, I have covered everything I know when trading with price channels. Thank you for reading. Do you have any tips for trading with price channels? Please help me improve myself.
Subscribe to stay updated!🫶
Thanks for Your attention💋
Sincerely yours, Kateryna💙💛
LESSON!!!As a beginner in forex trading, there are three main basic factors you should focus on learning:
1). Understanding the Forex Market:
*). Currency Pairs: Learn about major, minor, and exotic currency pairs. Understand how currencies are quoted and the significance of the base and quote currencies.
*). Market Hours: Familiarize yourself with the forex market hours and how different sessions (e.g., London, New York, Tokyo) can affect volatility and liquidity.
*). Key Players: Understand the roles of various market participants such as central banks, financial institutions, hedge funds, and retail traders.
2). Technical Analysis:
*). Charts and Patterns: Learn how to read and interpret various types of charts (line, bar, and candlestick charts) and recognize common chart patterns.
*). Indicators: Gain knowledge about technical indicators like moving averages, Relative Strength Index (RSI), and Bollinger Bands, and how they can be used to make trading decisions.
*). Support and Resistance Levels: Understand how to identify and use support and resistance levels to predict potential price movements.
3). Risk Management:
*). Leverage and Margin: Learn how leverage works in forex trading and the risks associated with it. Understand margin requirements and how to manage margin effectively.
*). Position Sizing: Understand how to determine the appropriate size of your trades based on your account balance and risk tolerance.
*). Stop-Loss and Take-Profit Orders: Learn the importance of setting stop-loss and take-profit levels to manage risk and secure profits.
Mastering these basics will provide a solid foundation for more advanced forex trading strategies and techniques.
Candlestick Wick Meaning and Trading StrategiesCandlestick Wick Meaning and Trading Strategies
Understanding the subtle cues provided by candle wicks can unlock new dimensions in trading strategy development. These seemingly minor details offer profound insights into market sentiment and price action dynamics. This article delves into the meaning behind candle wicks and explores strategic ways to trade them, equipping traders with the knowledge to potentially enhance their trading performance.
Understanding Candle Wicks
Candle wicks, extending beyond the body of the candlestick, offer a deeper insight into market dynamics than open and close price levels. Their lengths and positions relative to the candle body unveil the tug-of-war between buyers and sellers within a given timeframe.
A long wick candle to the upside suggests that buyers pushed the price higher, but sellers eventually overcame, driving the price down from its peak. Conversely, a lengthy lower wick indicates sellers initially dominated, with buyers making a strong comeback.
Such patterns are not merely reflections of high volatility; they signal potential market reversals or continuations, depending on their context and the prevailing trend. For instance, a series of increasing lower wicks in a downtrend could hint at a building bullish pressure. Traders often scrutinise these subtle cues, aligning them with other technical indicators to refine entry and exit points.
Analysing Market Conditions Through Candle Wicks
Wicks serve as a lens to view underlying market conditions, offering insights into trader sentiment, potential reversals, and the strength of current trends. This analysis predominantly focuses on the length and frequency of long wicks, as they often carry more significant information than their shorter counterparts.
Long Upper Wicks: Typically indicate a rejection of higher prices by the market, showing that buyers were unable to maintain control. When observed in an uptrend, these can signal an impending reversal or a pause in momentum as sellers start to outweigh buyers at higher prices.
Long Lower Wicks: Suggest a rejection of lower prices, showing that sellers couldn't keep the price down. In a downtrend, long lower wicks can be a precursor to a reversal, indicating that buyers are beginning to dominate the price action.
Repetition and Placement: The significance of long wicks is amplified when they occur repeatedly over several candles or near key support and resistance levels. A series of candles with long upper wicks near a resistance area, for example, could hint at a strong selling pressure, suggesting a potential area for a reversal.
Combination with Bodies: The relationship between the wick and the body of the candle also provides valuable information. A candle with a small body and a long wick may point to indecision in the market, while a large body accompanying a lengthy wick signals a strong market move followed by a significant pushback from the opposite side. For instance, while a long green candlestick is considered to be a strong bull candle, a large body with long wicks on either side may indicate volatility is picking up.
Long-Wick Candle Trading Strategies
Now, let’s explore three long-wick trading strategies. If you’d like to see how they work in practice, consider following in FXOpen’s free TickTrader platform.
Long Wick in Trend Pullback
In the realm of long-wick candle trading, the strategy focusing on extended wicks during trend pullbacks is particularly insightful. It capitalises on the market's natural ebb and flow, using the long wick as a signal that the initial trend momentum is regaining strength. For short-term swing traders, using the 1hr, 30m, or 15m charts might be typically best when identifying these long candle wicks.
Entry
Traders watch for a long wick to form when the price begins to pull back to the previous range (i.e. at or above the last swing low in a bearish trend or at or below the last swing high in a bullish trend), indicating an area where the trend may continue.
The presence of a long wick candle, usually at least a third or half its overall size, signals that market participants may be stepping in to support the overall trend.
Stop Loss
According to the theory, a common approach is to set stop losses just beyond the entry candle for a buffer against market reversals.
Alternatively, placing stop losses beyond a nearby swing point or a well-established support or resistance area may offer additional protection against high volatility.
Take Profit
Profit targets may be identified by assessing upcoming resistance levels in a bullish scenario or support levels in a bearish scenario. Traders may also consider a fixed risk-reward ratio instead.
Long Wick into Strong Support or Resistance
The strategy of focusing on long wicks on candlesticks at significant support or resistance levels leverages the market's reaction to these critical areas. It's a technique that thrives on the premise that major horizontal support or resistance, which have been tested multiple times with significant highs or lows, act as strong psychological barriers for price movements.
This method can be particularly effective when there is clear visual space on the chart and considerable time between the tests of these areas, emphasising the significance of these levels.
Entry
Traders often look for a candle that moves sharply into a major support or resistance area and then reacts away, leaving a long wick. This indicates a strong rejection of the price beyond these areas.
A movement above or below the previous highs or lows, accompanied by a long bull wick or bear wick, adds confirmation to the trade's potential effectiveness.
Stop Loss
Setting stop losses just beyond the candle's high or low offers a potential safeguard against reversals that breach these key levels.
Take Profit
Traders typically target an opposing support or resistance area for taking profits, capitalising on the expected bounce from the tested level. However, some traders may opt for a fixed risk/reward ratio instead.
Long Wick Rejection from Fibonacci Level
In this strategy, traders harness the predictive power of Fibonacci retracement in tandem with candlestick analysis to anticipate trend continuations. This approach is grounded in identifying a clear trend and applying Fibonacci retracement lines from the swing high to low in downtrends or swing low to high in uptrends. Key levels of interest are the 0.382, 0.5, and 0.618 retracement levels, which historically act as pivotal points for price reversals.
Entry
Attention is centred on the 0.382, 0.5, and 0.618 Fibonacci retracement levels, awaiting price action that touches these zones.
The presence of a long wick touching one of these zones reflects a strong rejection of further price movement against the trend, hinting at a potential continuation of the established trend.
Additional confirmation is sought when these Fibonacci levels coincide with other recognised support or resistance areas, reinforcing the likelihood of a trend continuation.
Stop Loss
Stop losses are typically positioned just beyond the wick, a nearby swing high/low, or the next Fibonacci retracement level to potentially safeguard against unexpected reversals.
Take Profit
Profit targets may be set at the high or low used to draw the retracement, leveraging the full potential of the trend's movement.
Alternatively, traders may choose another significant support or resistance level as a profit-taking point based on the prevailing market structure.
Best Practices for Trading Wicks
In the world of big wick candle trading, there are some best practices that traders may consider:
Context Is Key: It's common for traders to analyse wicks within the broader market context, ensuring that decisions are not based on a single candlestick pattern alone but are corroborated by other market factors.
Volume Confirmation: Many traders look for volume confirmation to validate the signals provided by long wicks. A significant volume spike accompanying a considerable wick can indicate strong market interest at certain prices.
Looking For Confluence: Likewise, seeking areas that coincide with other technical levels can add extra confirmation to a wick-based trade. Fibonacci retracements, support/resistance zones, and moving averages are commonly used.
Practice Patience: Traders often exercise patience, waiting for the candle to close before making a move. This may help in avoiding false signals that might occur during the candle's formation.
The Bottom Line
Mastering the art of interpreting and trading wicks may help in trading strategies. By recognising the signals conveyed through long wicks and employing strategic approaches, traders may navigate the markets with greater confidence.
For those looking to apply these insights in real-time trading environments, opening an FXOpen account offers a powerful platform to explore and leverage the potential of wick trading strategies. Happy trading!
FAQs
What Do Long Wicks Mean in Trading?
Long wicks indicate a potential rejection of a given price level. A long upper wick suggests selling pressure after a price hike, while a long lower wick indicates buying support following a drop.
How to Read Candle Wicks?
To read candle wicks, traders examine their length and direction. A long wick signals rejection of prices, especially if it occurs at a support or resistance area. Upper wicks denote selling pressure; lower wicks point to buying interest.
How to Trade Candle Wicks?
Trading candle wicks involves analysing long wicks for potential market reversals. Traders often look for wicks at support or resistance levels as signals to enter or exit trades, using them alongside other indicators for confirmation.
What Is the Candle Wick Trading Strategy?
The candle wick trading strategy utilises the presence of long wicks as indicators for making trading decisions. This approach relies on the idea that wicks signify price rejections and potential shifts in market direction, aiding in identifying entry and exit points.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
EXPLAINING LIQUIDITY IN SIMPLE WORDSLiquidity plays a vital role in shaping market prices, particularly among large market players such as banks, hedge funds, and other influential entities. These entities, often referred to as market makers, manipulators, and others, are driven by their pursuit of liquidity. In fact, liquidity is the foundation upon which successful trading is built, and it's where traders should begin their journey.
In the context of Smart Money Concepts (SMC), liquidity refers to the levels of asset price where multiple market participants have placed limit orders, stop orders, and liquidations. Stop orders are essentially reverse orders designed to mitigate losses by buying back positions that have gone against a trader's expectations. When a trader sets a Stop-Loss order, they're essentially trying to limit potential losses if the market moves against them.
The concentration of stop orders creates a gravitational effect, making it attractive for larger players to gain an advantage. By identifying areas with high concentrations of stop orders, big players can exploit these liquidity zones to collect profits from retail traders who are unaware of these market dynamics. As a result, the movement of prices from one liquidity zone to another is driven by the actions of these powerful entities, ultimately shaping the market landscape.
❓ HOW TO IDENTIFY LIQUIDITY ON THE PRICE CHART?
Before we dive into trading and trades, we must first identify obvious liquidity pools. These will be our closest target for the price to converge upon.
There are several types of liquidity in the market:
Equal highs and lows (EQH/EQL), which mark significant turning points
Swing structural points, including notable highs and lows that can be significant drivers of market activity
Boundaries in sideways price movement, such as ranges or sideways trends, where liquidity is concentrated
Trend movement, where liquidity tends to accumulate below or above the trendline
📊 SIGNIFICANT PRICE HIGHS AND LOWS
The SMC features six key extrema that significantly impact trading:
• The previous month's high and low values
• The previous week's high and low values
• The previous day's high and low values
• The current trading day's high and low values
• Equal highs and lows, which can be particularly significant in determining market trends
📈 Equal Highs (EQH) or Equal Lows (EQL) 📉
The double bottom or double top candlestick formation is a common indicator of a potential price reversal. When the price reaches these formations, it typically signals a change in direction, with the price moving in the opposite direction. For retail traders, equal highs and lows are crucial levels of support and resistance, prompting them to place stop orders at these levels. These levels act as a gravitational force, attracting large capital flows and creating a significant amount of liquidity.
When the price approaches these levels in reverse, it's not uncommon to see a cluster of stop orders forming, as traders anticipating a bounce from the level wait for the price to react. However, large players often take advantage of this expectation by executing stop-loss orders through a false breakout, ultimately triggering a price reversal.
💲 SIGNS OF A SUCCESSFUL LIQUIDITY GRAB
Let's consider a buy scenario as an example. Traders identify a strong low price, and large capital players recognize an obvious accumulation of liquidity at this point. When the price returns to this low and breaks it, but without forming a full candle, the price closes above the broken low. To better understand this concept, let's examine the schematic representation of liquidity grab in buying scenario.
Liquidity is a top priority for big players, known as “smart money”. A significant player is actively seeking to find it to secure their position. The reason is that if they were to open trades without sufficient liquidity, they would be exposed to price slippage, as there may not be enough buy or sell orders in the market to execute their trades efficiently.
🔎 IS IT A LIQUIDITY GRAB OR NOT?
Distinguishing between a liquidity grab and a breakout of market structure is crucial, as they share similarities. In the case of a liquidity grab, the price fails to close at an important structural highs or lows, instead takes liquidity forming long tailed candles.
In contrast, a breakout of the structure sees the price breaks and closes above or below new level. Notably, liquidity grab often precedes a price reversal, whereas breakout of the level typically perpetuates the underlying trend.
📍 TREND LIQUIDITY
In a clear trending market, liquidity forms in both directions, at the lows and highs. Let's take a closer look at a downward trend movement. When we see the price moving downwards, we initially take liquidity at the lows, which has been building up since the price reached its maximum. Then, we take liquidity at the minimum, creating a natural flow.
At the highs, we deliberately leave liquidity on purpose, allowing it to build up and eventually be taken away naturally. The liquidity at the lows acts as a price magnet, attracting a large player who begins to accumulate their position. In some cases, the price may form equal lows, known as a double bottom in technical analysis. This signals to traders that it's time to enter a trade, and they place stop losses above these levels. At this point, a major player manipulates the price, taking this liquidity and reversing the trend. The first target is then the trend highs, where liquidity is located – it was left earlier to be taken away.
📝 HOW TO WORK WITH LIQUIDITY?
When working with liquidity, it can be a valuable tool for entering a trade, as well as helping to set a stop loss by avoiding arbitrary price levels. Instead, you can use liquidity to guide your trading decisions and create more informed stop-loss strategies. Moreover, take profits can also be placed on liquidity levels, as the price is constantly moving between these levels, making it essential to take profits before they're taken away.
💎 CONCLUSION
The benefits of liquidity analysis extend to any time frame, whether it's weekly, daily, or even 1-minute charts. This means that liquidity can be effectively applied to analyze forex market, indices, cryptocurrencies and shares of companies for investment purposes, making it a versatile tool for traders and investors alike.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Want to spot a turning point in trend before it happens?Want to spot a turning point in trend before it happens? Use Elliott wave parallel channel
This chart shows the GBP/JPY currency pair using monthly candlesticks. The advance from Sep 2011 to June 2015 can be labeled as an impulse wave (A). From that high, the pair declined in three waves labeled as wave (B) of a Zigzag A-B-C correction with an expanding diagonal characteristic in the C wave position.
As a rule, in a Zigzag rally, wave B notably terminates above the origin of wave A. When wave (C) advance of a zigzag rally is in operation, we can forecast where wave (C) might end.
We can use Elliott wave channel projection by connecting the origin of wave (A) with the end of wave (B) and then drawing a parallel line from the end of wave (A). As a guideline, the resulting channel gives us a potential target for the wave (C) endpoint.
Moreover, we can also use ratio analysis to improve the odds. As a guideline, in Zigzag formations, wave (C) commonly ends after traveling the same length as wave (A). Observe this level corresponds with the Elliott wave channel projection.
This cluster of evidence hints at wave (C) advance from Mar 2020 is in late stages and that prices are approaching a major top.
5-Year SPX500 Expectations - Greatest Opportunity Of Your LifeWould you believe me if I told you the US & global markets (some) will rally more than 65% to 125% (or more) over the next 4 to 5+ years?
You would probably call me crazy for even suggesting that will happen in a reasonably short time frame.
But, what if I could show you how structurally (using Elliot Wave concepts and Fibonacci) this incredible rally may already be baked into the markets?
What if I could show you that, barring any major economic destruction event, the US Fed and Global Central banks may have unleashed the inflation beast - which could lead to massive Hyperinflation over the next 5+ years?
Would you be prepared for it? Would you even believe me if I could show you evidence that it may happen much quicker than you can imagine?
And would you believe me if I told you Gold/Silver will rally more than 500% over the next 5+ years while attempting to hedge global debt/inflation risks?
Now is the time to prepare for the greatest opportunity of your life. You must understand the structural mechanics of price related to the current global market dynamics.
Please boost and share this video with your friends. Everyone needs to be aware of what is likely to happen over the next 5+ years so they can prepare for and profit from these exceptional price trends.
3 Best Fibonacci Tools For Forex Trading
Hey traders,
In this article, we will discuss 3 classic Fibonacci tools you must know for trading different financial markets.
1️⃣ Fibonacci Retracement
Fib.Retracement is my favorite fib.tool. It is aimed to identify strong horizontal support and resistance levels within the impulse leg .
We draw this tool based on the high and low of the impulse (from wick to wick) and it shows us POTENTIALLY strong structure levels determined by Fibonacci numbers .
Common Fib.Retracement levels are: 0.382, 0.5, 0.618, 0.786 .
Once one of the levels is reached, wait for a confirmation before you open a trading positions.
Above is the example of an application of a fibonacci retracement tool based on a bearish impulse leg on EURUSD.
2️⃣ Fibonacci Extension
Fib.Extension indicates strong horizontal support and resistance levels beyond the impulse . Similar to Fib.Retracement tool, Fib.Extension is drawn relying on impulse's high and low (from wick to wick) and it shows POTENTIALLY strong structure levels where the consequent impulses may complete based on Fibonacci number.
Common Fib.Extension levels are: 1.272, 1.414, 1.618 .
Once one of the levels is reached, wait for a confirmation before you open a trading positions.
Above is the example of fibonacci extension tool based on USDJPY based on a bullish impulse leg.
3️⃣ Fibonacci Channel
Fib.Channel shows strong vertical supports and resistances (trend lines) within the channel . The tool is drawn based on the trend line of a valid parallel channel (based on wicks) and it shows POTENTIALLY strong trend lines from where the market may retrace .
The trend lines within Fib.Channel rest on 0.382, 0.5, 0.618, 0.786 Fib.Levels .
Once one of the levels is reached, wait for a confirmation before you open a trading positions.
Above is the example of a fibonacci channel on USDCHF.
Remember that Fibonacci's are simply tools in a toolbox. In order to use them properly, you need to build a trading system around them, test it and confirm its efficiency.
Ultimate guide on Williams Fractals in crypto tradingIn today’s article we will reveal one of the most powerful tools in cryptocurrency trading which often ignored even by top crypto traders. We are talking about fractals. Best crypto traders just use fractal levels to find support and resistance and trade bounces and breakouts. Spoiler - the fractal breakout is a right way to use it, but support and resistances aren’t. A lot of people are using fractals even for their algorithmic trading bots. We remember when encoding our first automated crypto trading bot the fractals were used for support and resistance detection. It’s not surprise that it was not one of the profitable crypto trading strategies.
Now we researched a different ways to use fractals and assume that we have the great expertise in it to share our knowledge with you. It’s not a top secret that even Skyrex ai trading bot is using fractals in detecting potential trading opportunities. Please, read this article carefully and you will know build your own cryptocurrency trading strategy or even apply it to automated cryptocurrency trading. Let’s go!
Initiating fractal
First of all let’s understand what is the fractal and how it looks like. Fractal is not just a sequence of candles like it can seems on the first look. This is the change in behavior of traders on the market. When you see the fractal on the chart, this is the turning point where a lot of traders were too worried that current trend can be stopped here.
Technically fractal is very simple. If we talk about upfractal it’s just a consequence of bars where the central bar have the highest high than two preceding and two following bars. On the chart below you can see different fractal’s shapes. Don’t worry about it that much because on the TradingView you can find an indicator which find all fractals. Even if you build automated trading bots you can just copy the code of this indicator.
How to trade using fractal
Let’s go to the most interesting part of an article. How to execute trades using fractal? You will be surprised but it’s super easy. Let’s take a look at the picture and try to understand the concept of fractal start, signal and stop.
Fractal start is the fractal which precedes the another one fractal in the opposite direction
Fractal signal is the fractal which follows the fractal in the opposite direction
Now when we have this two fractal combination we can place our sell stop one tick below the fractal signal and go short if market reach this level. Now it’s time to place the stop loss. When your trade is open you shall chose the highest fractal from the last two and place stop loss order one tick above. Here you can have two cases A and B. Look carefully and try to find these formations on the real charts.
Conclusion
Next time we will look inside the fractal and try to understand how to trade during sideways. I think today you could understand that fractal trading is good in trend markets, but it’s not profitable during sideways. Price will hit your order every time and hit stop loss many times before the true trend move. For sure fractal breakout trade guarantees that you will not miss the big trend move, but you will have multiple losing trades in the range bounded market. Next time we will discuss how to avoid it.
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
Three of the Best MACD Trading StrategiesThree of the Best MACD Trading Strategies
The Moving Average Convergence Divergence (MACD) is more than just a mouthful—it's a versatile trading indicator that has stood the test of time. This article unpacks the intricacies of this indicator and dives deep into three specific strategies that leverage the MACD with other powerful tools like the Stochastic Oscillator and Hull Moving Averages. Read on to sharpen your trading skills and enhance your toolkit.
Understanding the MACD Indicator
The Moving Average Convergence Divergence is a momentum indicator developed by Gerald Appel in the late 1970s. It is designed to identify changes in the strength, direction, momentum, and duration of a trend in a stock's price. It’s composed of three main components: the MACD line (blue), the signal line (orange), and the histogram.
The MACD line is calculated by subtracting a long-term exponential moving average (EMA) from a short-term EMA. The signal line is a 9-day EMA of this line. When these two lines cross, it often suggests a potential entry or exit point. The histogram represents the difference between the MACD line and the signal line, offering further insights into market momentum.
When creating an MACD strategy, indicators like the Stochastic and moving averages are often used. However, many also use simple price action alongside the MACD. Below, we’ll cover three strategies that use these indicators and price action to find and exploit market opportunities. If you’d like to follow along, head over to FXOpen’s free TickTrader platform, where you’ll find each tool discussed here waiting for you.
MACD Stochastic Strategy
The MACD Stochastic strategy utilises both the MACD and the Stochastic Oscillator to enhance trade decision-making. While the MACD is predominantly a trend-following momentum indicator, the Stochastic Oscillator is used to gauge overbought (above 80) or oversold (below 20) conditions. The objective of this combined MACD oscillator strategy is to look for concurring signals from both indicators within a few candles of each other, achieving more reliable entries and exits.
Entry
In a bullish entry, traders often look for the MACD line to cross above the signal line.
Concurrently, the Stochastic Oscillator should cross above 20 from an oversold area.
In a bearish entry, the MACD line should cross below the signal line. Similarly, the Stochastic Oscillator should cross below 80 from an overbought area.
Stop Loss
Stop losses are typically positioned above a nearby swing point for bearish entries and below a swing point for bullish entries.
Take Profit
Profit-taking is usually considered at nearby support levels for bearish positions and resistance levels for bullish positions.
Alternatively, some traders may opt to exit the trade when a MACD crossover in the opposite direction occurs.
MACD with Hull Moving Averages Strategy
The blending of MACD and Hull Moving Averages (HMA) aims to refine the basic MACD moving average strategy by reducing lag and improving responsiveness. This combination is often cited as one of the best MACD trading strategies, leveraging the strengths of both indicators. The Hull Moving Averages used here are the 21-period and 50-period HMAs. Just like with the MACD, traders look for a crossover event, but in this case, both from the MACD and the HMA and preferably within close proximity of each other.
Entry
For bullish prospects, traders may look for the MACD line to cross above the signal line around the same time the 21-period HMA crosses above the 50-period HMA.
Conversely, in bearish positions, the MACD line should cross below the signal line close to when the 21-period HMA crosses below the 50-period HMA.
Stop Loss
Traders often set stop losses either above or below a nearby swing point.
An alternative approach could be to place the stop loss just beyond the 50-period HMA.
Take Profit
Traders commonly consider taking profits at nearby support (short) or resistance (long) levels.
Another approach may be to close the position when an opposite crossover event occurs in the HMAs.
MACD Histogram Divergence with Candlestick Patterns Strategy
When it comes to the best MACD for day trading setups, incorporating its histogram with candlestick patterns, such as doji, hammer, and engulfing candles, can offer compelling insights. This MACD histogram strategy revolves around spotting divergences between the histogram and price action, followed by confirmation via specific candlestick formations.
Divergence Criteria
A divergence occurs when price action makes higher highs while the histogram makes lower highs, or vice versa.
Entry
Traders might seek a bullish entry on the close of a hammer or bullish engulfing candle when a bullish divergence is observed on the histogram.
For bearish entries, the close of a hammer or bearish engulfing candle following a bearish divergence is often considered.
While a MACD crossover is not essential, some traders prefer to wait for this additional confirmation.
Stop Loss
Stop-loss levels may be placed above a nearby swing point for bearish positions and below it for bullish ones. Given that a reversal has not yet been confirmed, traders may prefer a slightly wider stop loss.
Take Profit
Take-profit levels are often set at nearby support (short) or resistance (long) levels.
Another option is to exit the trade after a MACD crossover in the opposite direction occurs.
The Bottom Line
Mastering the MACD can significantly bolster your trading toolkit. By combining it with other indicators like the Stochastic Oscillator and Hull Moving Averages, traders can refine their strategies for more nuanced market entries and exits. These methods may not be a one-size-fits-all solution, but they do offer compelling approaches worth testing. If you're eager to put these strategies into practice, consider opening an FXOpen account, where you can access a range of tools to optimise your trading experience.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Predicting Bitcoin's Cycle Using the Elliott Wave TheoryGreetings, fellow traders. In this article, we'll be reassessing our annual Elliott Wave counts and going deeper into interpreting Bitcoin's current decade cycle. I'll make sure to segment each part by drawing insights from the previous cycles, also employing the Elliott Wave Theory, and integrating major timeline events to bolster my perspective on Bitcoin's potential trajectory in the upcoming cycle. The wave theory will help neutralize many of the irrational thoughts that other analysts may have that just show straight arrows to the upside. This thesis helps you get a better understanding of where pullbacks and areas of high strength (wave 3 impulses) may occur. Remember, the wave theory will never be perfect in painting the picture, but it will help you be positioned as best as possible with proper invalidation levels.
One of the most significant phenomena witnessed in the current financial market landscape is Bitcoin's adherence to a notably algorithmic parabolic trend, where cycles persist in a compounded manner in terms of percentages. This raises the crucial question: "Can we expect all past cycles to mirror the current one?" Answering this is very challenging. However, Bitcoin has one of the strongest strengths against all other coins, which is price history. Fundamentals attached, Bitcoin has been extremely resilient against major events (with wild swings), but the overall trend has remained in tact for over a decade. This indicates not only strength, but true adoption.
We must discern whether the price action will evolve into something new or continue the pattern of echoing past cycles (fractals). The most effective method for interpreting Bitcoin's price movements is through the logarithmic chart that is presented in the chart above.
When examining past cycles through the lens of only fractals (as that is how it has been for the past decade), the most effective approach to understanding the present cycle is by conceptualizing it as a sequence of nested '1-2' counts. In simpler terms, experiencing a succession of 1-2/1-2/1-2 patterns might lead to either optimistic expectations or impending disappointment. This ambiguity prompts consideration of an alternative bearish perspective, elaborated upon subsequently. Keep in mind, there's always room for firsts, meaning that the failure of the fractal pattern is always a possibility. Again, this idea is further explained in the bearish alternative explanation below.
Bearish Alternative:
For a more rational approach, the Elliott Wave Theory also suggests alternative pathways. One narrowed down scenario would be that the cycle has now matured, suggesting for a more maturing market with more complexity in corrective types (patterns).
The logarithmic chart may indicate a deceleration in the macro timeframe, suggesting that Bitcoin is currently in a maturity phase. Its role as a store of value to say the least. To simply put, the corrections will be far more controlled as investors create larger distribution patterns through the timeline and create demand/sell zones. Price maturity, a concept commonly observed in stock models, implies that markets do not move linearly and eventually reach an endpoint, including in price action. Utilizing the Elliott Wave Theory, we can generate one alternative count that shows the whole cycle is now possibly in a larger 1-2 of some sort:
1. The fact that we have a possible WXYXZ corrective pattern for the 2021-2023 bear market, this may indicate this is part of something larger. Usually, you will see wave 2's have a simple ABC/WXY type patterns.
2. This speculation can then lead us to believe that we could be part of a larger corrective pattern, most likely as a flat pattern now.
3. Consequently, this insight aids in forecasting that we are entering into the new phase of 'market maturity,' or what I like to term as the "flattening of the curve theory."
We could debate endlessly about the next bear market for Bitcoin, but the undeniable truth is that over the past 15 years, the market has proven its resilience against political turmoil, hacking attempts, and regulatory crackdowns.
It's remarkable to realize that aside from halvings, forks, and institutional adoption, there haven't been any significant bullish events/catalysts. This speaks volumes about Bitcoin's strength. There wasn't any single groundbreaking moment or major catalyst for each bull run. Instead, it was a series of interconnected events that sustained that momentum, leaving it to us as investors to identify distribution points.
Chronicle of a Foretold Pump/DumpPump/Dump schema:
Discrete Share accumulation.
Broadcasted Triggering Event (news, rumors, forums, etc).
Gather the mass of "Bagholders".
Dump all the load.
Pocket the quick profit.
I am not a fan of " meme stocks " because they're very much like penny stocks, prone to pump/dump schemes. How legal or illegal is this practice?, it is not us to decide, there are authorities who are supposed to regulate these behaviors.
Regardless of the morality of a it we can analyze the radiography of the move. Using the volume bars feature, you can see "big fat" candles on the accumulation phase, the "rumor" phase where the "roaring kitty" name was heard in the news, the spike and immediately took the stock to a quick profit of +120% overnight, and the fade phase, where the only thing that remained at the end was the frozen smile of the hopeful bagholders with a fading volume.
#LearnToEarn.
Be careful where you put your money, trading and investing requires knowledge of the company, its balance sheet, fundamentals and/or technical metrics. Don't follow the crowd, else you'll end up in the slaughter house. There's no free lunch in Wall St.
Let's remember this quote: "The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor." Jesse Livermore.
Be greedy when others are fearful - © Warren BuffettAs the cryptocurrency market gears up for a potential alt season, savvy investors are positioning themselves to capitalize on the gains of altcoins. This article will explore six promising altcoins and the significance of sector diversification in maximizing returns.
Be Greedy When Others Are Fearful, Fearful When Others Are Greedy:
This timeless adage by Warren Buffett highlights the importance of contrarian investing. During alt seasons, when the market is euphoric and prices are rising, it's crucial to maintain a level head and avoid overextending. Conversely, when the market is in a downtrend and fear is prevalent, it's an opportunity to accumulate undervalued assets.
Top 6 Altcoins for Alt Season:
Dogecoin (DOGE): Forming a bullish ascending triangle pattern, DOGE is poised for a breakout. The triangle's squeeze indicates a potential surge in price. Respecting the ascending trend and avoiding new lows suggests an upward breakout.
Sector: Meme Coin
Chainlink (LINK): With an accumulation period spanning 518 days, LINK is primed for a significant pump. The longer the consolidation, the stronger the potential breakout, adhering to the golden rule of accumulation. The ideal shakeout beneath the accumulation range followed by price appreciation reinforces the bullish outlook.
Sector: Oracle
Optimism (OP): Trading within an ascending channel and consistently respecting the lows, OP exhibits strong bullish momentum. The pattern and price action suggest a continuation of the uptrend.
Sector: Layer 2 Scaling Solution
Immutable X (IMX): Breaking above local highs and retesting the upper resistance trendline, IMX confirms a trend reversal to the bullish side. This price action signifies a shift in market sentiment.
Sector: NFT Marketplace
Avalanche (AVAX): Coiling within a descending wedge (bullish pattern), AVAX experienced a shakeout below a crucial support level ($9) before resuming its upward trajectory. Respecting old support levels is essential.
Sector: Layer 1 Blockchain
VeChain (VET): Epitomizing a textbook bullish run, VET adheres strictly to the ascending trend. Each cycle consists of price appreciation, accumulation, and further growth.
Sector: Supply Chain Management
Sector Diversification:
Diversifying across sectors is crucial, as different sectors tend to perform differently based on market trends and events. For instance, during periods of DeFi dominance, DeFi-focused altcoins may outperform. Conversely, when NFT mania takes hold, NFT marketplace tokens could surge.
[EDU-Bite Sized Mini Series]Margin? Lots? Spread? What are they?Hello fellow traders , my regular and new friends!
Welcome and thanks for dropping by my post.
Today we are going to cover terms such as Margin, Lot size, Spread and What are they.
Forex trading is a dynamic and potentially lucrative endeavor, but it comes with its own set of terminology and jargon that can be intimidating for beginners. Understanding these terms is crucial for aspiring traders to navigate the forex market effectively and make informed decisions.
Margin
One of the fundamental concepts in forex trading is margin, which refers to the amount of money required to open and maintain a trading position. Margin allows traders to control larger positions with a relatively small amount of capital, amplifying both potential profits and losses. It's important for traders to understand margin requirements and manage their leverage carefully to avoid excessive risk.
Lot Size
Another key concept is lots, which represent the size of a trading position in forex. Standard lots typically consist of 100,000 units of the base currency, while mini lots and micro lots represent 10,000 and 1,000 units, respectively. Lot size determines the potential profit or loss of a trade, with larger lots leading to greater fluctuations in account equity. If you are more comfortable with smaller lot size, you can even go on to nano lots in 100 unit of currency.
Spread
Spread is another term commonly used in forex trading, referring to the difference between the bid and ask prices of a currency pair. The bid price is the price at which traders can sell a currency pair, while the ask price is the price at which they can buy it. The spread represents the cost of executing a trade and can vary depending on market conditions and liquidity.
There are different types of spreads encountered in forex trading, including fixed spreads and variable spreads. Fixed spreads remain constant regardless of market conditions, providing traders with certainty about trading costs. On the other hand, variable spreads fluctuate in response to market volatility, widening during times of high activity and narrowing during periods of low activity.
Understanding these trading terms and jargon is essential for beginners to develop a solid foundation in forex trading. By mastering concepts such as margin, lots, spread, and different types of spreads, aspiring traders can make more informed decisions and effectively manage their risk in the dynamic and fast-paced world of forex.
Do check out my recorded video (in trading ideas) for the week to have more explanation in place.
Do Like and Boost if you have learnt something and enjoyed the content, thank you!
-- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! --
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Disclaimers:
The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes.
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