CADJPY Analysis and Trade IdeaThe 4H TF is bearish.
There may be a sweep of the weak highs into that supply zone, but I believe price will resume the bearish trend.
Learntotrade
3 Important Terms Every Trader Must Know | Trading Basics📚
Hey traders,
In this post, we will discuss 3 very important market situations that every trader must be able to recognize: breakout, retest, and fakeout.
❗️Please, note that the essential element of all these terms is structure: vertical and horizontal key levels.
📍Breakout is a situation when the market breaks the identified horizontal support or resistance, or a vertical trend line.
Breakout is a very important event that signifies the willingness of buyers/sellers to violate the structures. Violation of support signifies a strong selling pressure while a violation of resistance signifies a high buying momentum.
Usually, the structure breakout is confirmed with a candle close.
For confirmation of a breakout of support, a candle close below that is needed.
For confirmation of a breakout of resistance, a candle close above is required.
📍Retest is the situation when the price returns back to broken horizontal support or resistance, or a vertical trend line after a confirmed breakout.
For a structure breakout, high trading volumes are needed. Usually, after a breakout, the market participants are locally exhausted and a correctional movement follows. That may lead to a retest of a broken structure.
Most of the time, after a retest a strong impulse follows. For that reason, for many traders, the retest is applied for trading entries.
📍Fakeout or false breakout is the situation when the price has not enough strength to maintain its direction after a retest of a broken structure. Instead, the market returns back below/above the broken resistance/support.
Fakeout is one of the main reasons, why structure traders lose money.
One of the ways to avoid fakeout is to monitor trading volumes during a structure breakout. A volume spike is needed to confirm the strength of the market participants while low volumes most of the time signify a manipulation.
Learn to spot breakouts and false ones, and try to trade on a retest.
Let me know what do you want to learn in the next post?
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Candlestick Action | How Candles Are Formed🕯
❗️Japanese candlesticks as a technical analysis tool were invented earlier than others, but they were not widely used immediately. By the name, it is easy to guess that Japan became the "homeland": local rice traders used this method already in the 18th century. However, due to the geographical remoteness and closeness of the country from external "visitors", this type of chart gained popularity much later, when exchange life was already actively boiling in Europe and the USA.
✅What is hidden behind the candlestick chart?
🟢A candle is formed from 4 prices: opening, closing, high and low for a certain period of time. If we take a timeframe of a minute, then each candle will indicate the price movement within this minute, if an hour is inside an hour, if a day is inside a day. The distance between the opening and closing price is the "body" of the candle, and the tails show to what lows and highs the price reached. If the opening price was higher than the closing price, then the candle will be black; and vice versa: if the opening price is lower than the closing price, then the candle will be white. It turns out that candles are, in fact, the psychology of the market, they most accurately reflect the fears and hopes of its participants.
🟢The charts of Japanese candlesticks themselves are valuable for analysis: the resulting models are interpreted as models of reversal or continuation of the trend. It is also important to understand: each individual candle or a combination of candles is just a way of depicting the actions and moods of all bidders for the period we have chosen (day/week/ month, etc.). The fact is that human behavior is quite formulaic in the same situations, and that is why various methods of chart analysis are so popular with investors and traders.
🟢Looking at only one or several candlesticks, a "savvy" viewer can easily understand whether the market is set to rise or fall, change the current trend or its continuation, increase the momentum of movement or its attenuation.
⚠️It is important to understand that the behavior of individual bidders develops into a general market movement, which can be "read" using charts of Japanese candlesticks and their basic models. Therefore, your optimal investment decisions will be supported by the most effective moments of entry or exit from the position, which will significantly improve the financial result.
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Trading the bleeding markets with a winning mindset ;)There's a great struggle going from profit to loss.
A burst of a bubble, which in it's essence is hope.
But this is false.
The odds are, that your profits were on paper, so how does a loss on paper differ from a profit on paper?
Truth is - It doesn't.
But what it does do is play with your emotion.
Our mind has a tendency of expecting the worst once things start rolling in that direction.
Take a step back and think about what life threw at you so many times in the past, think about the times you thought things are going to end up the worst but actually didn't.
It could be you planned a nice day outside with your partner in the park but it started to rain.
But instead of crying about the day wasted and how this is just awful, you ended up cooking together a nice lunch and drinking wine while finding a new great TV show to watch, ending up being one of the best days in a while.
Not let's roll back to trading.
And let's cut out negative thinking completely just for 3 minutes and look only at the positive.
Positive points -
1) Cheap instruments all around to invest in
2) Great practice of mental skills while trading, which truly is the most influential aspect of mastering trading
3) It reminds you the very basics of trading that we lose track of once markets start flying up - Buy low, sell high.
4) Opportunity, opportunity, opportunity - Every time you would have bought into the stock market, over a few year period you would make great returns, same thing goes even for people who bought Bitcoin after the decline of 2018 and pretty much any other pop financial instrument.
5) You're a day trader? Great! Volatility is amazing if you have a strategy which is disciplined and consistent as well as based on risk management.
See how bright the light shines at this very moment?
Keep it. Be positive. Be hopeful. Be practical.
The negative quotes such as -
I can lose everything!
It's never going to rally back!
This is taking too long!
I don't have patience for this!
This is turning out to be so not fun!
I didn't expect to hold this trade this long!
How will any of this benefit you in any way? Where's the logic? Where's the gain? Where's the analysis? Where's the market view? Where's the money management?
Only look at what is relevant to your success. Block the negative, ignore it completely as much as you can and eventually always.
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Morning Star Pattern: how to trade?🌟
❗️The Morning Star pattern is a market reversal pattern consisting of three candlesticks that indicate bullish superiority. This pattern warns us about the weakness of the ongoing downtrend, which, in turn, suggests the beginning of an uptrend.
⚠️Traders observe the formation of the "Morning Star" pattern on the price chart, and then confirm with the help of other technical tools on the Forex currency market.
✅Morning Star pattern: Three forming candles
⏺Big Bearish Candle
⏺A small bullish or bearish candle
⏺Big Bullish Candle
The most important thing to remember is always that the market must be in a downtrend in order to trade according to the "Morning Star" pattern.
In order to confirm the downtrend, mark the lowest lows and the lowest highs.
1️⃣The big bearish candle is the first part of the Morning Star reversal pattern. This candle indicates that the bears are in full control of the market, which means that sellers continue to pressure the market.
At the moment, you should only look for sale deals, since there are no signs of a reversal yet. Here the Morning Star pattern is just beginning its formation.
2️⃣A small bullish/bearish candle is the second candle that starts with a bearish gap down. This candle indicates that sellers are unable to lower the price, despite very great efforts.
The price action ends with the formation of a rather small bullish/bearish candle (Doji candle).
If this candle is bullish, then we have an early sign of a trend reversal.
3️⃣A large bullish candle is the third candle that has the greatest significance, because here the real pressure of buyers is manifested. If the candle starts with a break, and buyers can push prices up by closing the candle even above the first red candle, this is a clear sign of a trend reversal.
✅Morning star: how to trade this pattern on Forex?
As we already know, the Morning Star pattern is a reversal pattern. As a rule, it indicates that bulls are capturing the trend, and bears are losing control.
Most beginners trade using the "Morning Star" pattern on their own, without using technical tools, or at least tips from more professional traders.
We do not recommend doing this — it is not as reliable as it may seem. Always connect this pattern with other reliable indicators, support and resistance levels, as well as trend lines.
So, in this strategy, we combined the Morning Star pattern with volume. Volume plays an important role in the formation of the model.
If the first red candle shows a low volume, then this is a good sign for us. Then, if the second candle is green and the volume is growing, this indicates buyer pressure.
After all, the volume of the third long green candle should be high. The large volume of the last candle indicates the confirmation of the upcoming trend and the entrances to purchase transactions.
If the third bullish candle has a low volume, do not pay attention to the fact that the Morning Star is forming. This volume does not indicate a bullish reversal.
To sum up: do you observe the closing of the third candle with a large volume? Open buy positions and move along with the uptrend until there are signs of a reversal.
✅Morning Star pattern: entry, take profit and stop loss
We have to open a deal when the next green candle closes. There are many ways to lock in profits.
We can close a position in any resistance zone or supply-demand zone. In this deal, we hold our positions because we have opened a deal since the beginning of a new trend.
You can also close your positions when the price approaches a significant resistance level on the higher timeframe.
⚠️Combining this pattern with volumes makes trading more reliable. Therefore, you need to place a stop loss just below the second candle.
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Rookie traders 1st idea post. Be kind.So I been watching and reading and demoing all kinds of platforms for roughly 2 years now. This year I got started with a few actual small trades and I've learned more from those few real trades than the entire 2 years educating myself with YouTube, chat groups, talking to friends etc... so today I thought, screw it, just post ur ideas and see if I learn something from it. I'm sure there will be some harsh comments and maybe even laughter, but when your done laughing or ripping at this idea, just be sure to leave a constructive critique for the guys like me trying to learn our way up... sometimes the best way to learn is to fall forward flat on ur face but if it's the best way to learn then I'm willing to learn with my face firmly seated in class.
What is a Gap in Trading? | Different Types of Gaps Explained 📚
Hey traders,
In this article, we will discuss a very common pattern that is called gap.
In technical analysis, the gap is the difference between the closing price of the previous candlestick and the opening price of the next candlestick.
📈Gap up represents a situation when the price bounces up sharply at the moment of a transition from one candlestick to another. The price gap that appears between them is called gap up.
📉Gap down represents a situation when the price drops sharply at the moment of a transition from one candlestick to another, the price gap between the closing price of the previous candle and the opening price of the next candle is called a gap down.
From my experience, I realized that with a high probability the gap tends to be filled. For that reason, once you see a gap, consider trading opportunities around that.
Depending on the market conditions where the gap appears, there are several types of a gap to know:
1️⃣Common gap appears in a weak, calm market. When the trading volumes are low and the market participants are waiting for some trigger, or the asset reached a fair value price.
2️⃣Breakaway gap appears in a situation when the price suddenly breaks a structure (support or resistance) in a form of a gap.
Such a gap usually confirms a structure breakout.
3️⃣Runaway gap usually appears when the market is growing or falling sharply. It signifies the dominance of buyers/sellers and highly probable continuation. Usually, such gaps are not filled.
4️⃣Exhaustion gap is, in contrast, appears around major key levels and signifies a highly probable reversal. The exhaustion gap is usually confirmed by a consequent strong opposite movement that fills the gap.
Learn to recognize gaps on a chart and learn to interpret them. It will increase the accuracy of your technical analysis.
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Support & Resistance Levels | Trading Basis📚
❗️The concepts of support and resistance are fundamental concepts of technical analysis of financial markets. They are applicable to almost any market, be it stocks, Forex, gold or cryptocurrency.
❗️And although these concepts are easy to understand, in practice they are quite difficult to master, since the definition of levels is completely subjective, and their behavior depends on many conditions. So first of all it is important to learn to distinguish their types. To do this, you will have to familiarize yourself with a lot of graphs, and this guide will help you.
✅What is support and resistance?
🟢At the most basic level, support and resistance are simple concepts. To determine them, the maximum and minimum price indicators are displayed, acting as a kind of barrier. At the same time, the lower values of the chart represent the support level, and the upper values represent the resistance level. In fact, the level of support can be viewed from the point of view of demand, and the level of resistance – from the point of view of supply.
🟢Despite the fact that support and resistance levels are usually denoted by lines, in reality they usually look different. It should be borne in mind that markets are not governed by any physical law that does not allow indicators to go beyond a certain level. Therefore, it is more appropriate to consider support and resistance levels as areas. You can imagine these areas as ranges on the price chart, the approach to which is likely to cause increased activity of traders.
✅How Traders Use Support and Resistance levels
🟢Technical analysts use support and resistance levels to identify areas of interest on the price chart. At these levels, the main trend is likely to change its direction.
🟢Market psychology plays an important role in the formation of support and resistance levels. Traders and investors are guided by price levels that previously caused increased interest and trading activity. These areas will contribute to increased liquidity as many traders will be tracking the same price levels. Often, support and resistance zones create ideal conditions for entry or exit from a position for large traders.
🟢The concepts of support and resistance levels are key to effective risk management. Your trading opportunities may depend on your ability to consistently identify these zones. Usually, after the price reaches the support or resistance area, two possible events are possible. It either bounces off this area, or breaks through it and continues moving in the direction of the trend to the next potential support or resistance area.
🟢It is best to enter a trade when the price is near the support or resistance level, mainly because of its relative proximity to the cancellation point, where a stop loss order is usually placed. In case of a breakthrough of the area and invalidation of the transaction, traders will be able to reduce their losses, because the further the entry is from the supply or demand zone, the further the point of invalidation of the transaction.
🟢At the same time, you need to understand how these levels will change depending on changes in the situation on the chart. As a rule, a breakdown in the support area can turn it into a resistance area. Conversely, a broken resistance area may turn into a support area when it is retested. This pattern is called the support-resistance flip.
⚠️How to draw support levels correctly?
⏺Reduce the timeframe of your charts so that you can see the bigger picture.
⏺Draw the most obvious levels that tend to have the strongest price bounces.
⏺Adjust your levels to get the maximum number of touches.
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10 Trading Commandments of a Successful Trader 📜
Hey traders,
In this post, we will discuss 10 divine rules that every trader must obey:
1️⃣ - Accept that risk and losses are a necessary part of trading.
Even though most of the traders are looking for a holy grail, for a system that produces 100% win rate, in fact, losses are inevitable, they are part of the game.
No matter how good you are as a trader, occasionally, the market will outsmart you.
2️⃣ - Have a proven trading system.
Trade only with a trading strategy that you backtested, that proved its accuracy and efficiency.
3️⃣ - Concentrate on the risk, not the reward.
Cut losses, and control your risk. Remember about risk management and never neglect that.
4️⃣ - Never trade without stop loss.
Some traders say that they can easily control losses without stop loss. Don't listen to them. Always set a stop loss once you are in a trade.
5️⃣ - Have an attainable target.
Setting a stop loss remember to know where to close your trade in profit. Follow strict rules and do not let your greed take you under control.
6️⃣ - Take your emotions under control.
No matter whether you are losing, winning, or do not see any trading setups to trade, your emotions will always try to distract you.
Be cold-hearted.
7️⃣ - Always stick to your trading plan.
Never break your rules, follow your system, and do not deviate.
Your trading plan is your only map.
8️⃣ - Limit your losses, never limit your profits.
While your gains can be scalable, your risks and losses must be fixed.
9️⃣ - Treat your trading as a business.
Trading should be treated with the same discipline as a business.
Every business has a solid business plan which entails how the day-to-day running of the business is done, and this also guides the decision-making process.
🔟 - Always journal your trades.
Always keep a trading journal. Record your winners and losers, entry reasons, mistakes, failures etc. Revise and learn from your mistakes.
Of course, that list can be extended and more commandments and rules can be added. However, these 10 in my view are the most important. Print this list and let it guide you in your trading journey.
What would you add to that list?
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Keep your trading charts clean!🧹
✅Keeping Charts Clean: Since a trader's charting platform is his or her portal to the markets, it is important that charts improve rather than hinder a trader's market analysis. Easy-to-read charts and workspaces (the entire screen, including charts, news feeds, order entry windows, etc.) can improve a trader's situational awareness, allowing him to quickly decipher market activity and react to it. Most trading platforms allow you to largely customize the color and design of the chart, from the background color, style and color of the moving average to the size, color and font of the words that appear on the chart. Setting up clean and visually appealing charts and workspaces helps traders use indicators effectively.
✅Information overload: Many modern traders use multiple monitors to display multiple charts and order entry windows. Even if six monitors are used, you should not consider every square inch of the screen as technical indicators. Information overload occurs when a trader tries to interpret so much data that in fact they are all lost. Some people call this analytical paralysis; if too much information is presented, the trader will most likely not be able to respond. One way to avoid information overload is to exclude any extraneous indicators from the workspace; if you don't use it, lose it – this will help reduce clutter. Traders can also view charts to make sure they are not burdened with multicollinearity; if multiple indicators of the same type are present on the same chart, one or more indicators can be deleted.
✅Tips for organizing: Creating a well–organized workspace using only relevant analysis tools is a process. The set of technical indicators that a trader uses may change from time to time depending on market conditions, strategies used and trading style.
❗️On the other hand, charts can be saved if they are configured in a user-friendly form. There is no need to reformat the charts every time the trading platform closes and reopens. Trading symbols can be changed together with any technical indicators without disturbing the color scheme and layout of the workspace.
✅Recommendations for creating easy-to-read diagrams and workspaces include:
⏺Colors. The colors should be easy to view and provide great contrast so that all data can be easily viewed. In addition, one background color can be used for order entry charts (the chart that is used to enter and exit a trade), and a different background color can be used for all other charts of the same symbol. If more than one symbol is traded, you can use a different background color for each symbol to simplify data isolation.
⏺Layout. Having more than one monitor helps to create a comfortable workspace. One monitor can be used for entering orders, and the other for price charts. If the same indicator is used on several charts, it is recommended to place similar indicators in one place on each chart using the same colors. This makes it easier to find and interpret market activity on individual charts.
⏺Sizes and fonts. Bold and clear font makes it easier for traders to read numbers and words. Like colors and layout, font style is a preference, and traders can experiment with different styles and sizes to find a combination that creates the most visually pleasing result. Once convenient labels are found, fonts of the same style and size can be used on all diagrams to ensure continuity.
⚠️It is important to note that technical analysis deals with probabilities, not certainty. There is no combination of indicators that accurately predicts market movements in 100% of cases. While too many indicators or improper use of indicators can blur a trader's view of the markets, traders who use technical indicators carefully and effectively can more accurately determine trading attitudes with high probability, increasing their chances of success in the markets.
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Why do traders mostly lose? Point of viewFor 3-5 minutes while going through this forget what you know about trading.
First thing is : Let's remember our goal, every successful action/plan started with a clear goal that led the way:
In our case it's profit
When starting to trade seeing the numbers go up and down plays with your head and emotion quickly tempting you with the unlimited potential at your fingertips.
Even experienced traders that had some lucky streaks forget that the wanted end result is simple - to be in the money, meaning, making profits consistently.
In order to secure our goal of making profit we need to first start with remembering this is not a 'get rich quick' scheme and there is no magic - A big bunch of money won't fall on your head out of nowhere, at least not consistently.
Now - remember this : It's a lot better to be consistently profitable than to have a series of a few winning streaks .
With this in mind, it's great if you would put up a sticky note on your screen reminding this - As at times it gets hard keeping sight when numbers run wild.
I see many traders look at between 5-10 crypto currencies, 3 commodities and 10 currency pairs - Deciding based on a variety of different things what to trade on every time.
This way of action has no structure at all - Which makes it very hard to reach a certain target: profit.
It is necessary to have focus, structure and a plan with a single minded mission: PROFIT.
But not just any profit - smart profit, a profit that was a result of planned action.
So how do you make a plan?
The easiest way to effectively craft a well thought out plan is to focus on between 2 to max 3 instruments
Learning the range, price action and tendencies of 2-3 instruments can be done within a few weeks going through 1h, 4h and weekly time-frames and determining the short-term and long-term projections of each of the 2-3 instruments.
Once you start seeing the patterns and understanding the price action continue by implementing what you learned on the instruments on a demo account testing a possible strategy that relies on clear idea of what to do with every possible scenario.
You may not get it right with the first strategy, so try others until you find one that shows consistent results - while mastering the 2-3 instruments you have chosen and continuing to following up on a daily basis on relevant news, changes in trends on short-term and long-term projections.
For me - Because I've dedicated years trading and following Gold and WTI , learning how and why it moves - I prefer trading a swing trading strategy, keeping trades open between 3 days to 2 weeks usually, this puts my bigger picture understanding of the instruments into true effect
The difficulties you will find while searching for your strategy are -
*Greed
*Fear
*Lack of patience
*Lack of discipline in plan
Don't let them in - Remember your plan and one and only goal : consistent profit!
Thank you for reading,
Let me know what you think and what you would like to hear more about :D
MAIN ELEMENTS OF YOUR TRADING PLAN | Trading Basics 📝
Hey traders,
One month ago I wrote an article about the importance of a trading plan. Now it is time to discuss what should be inside your trading plan.
Before we start let me note that a trading plan is a very personal thing and depending on your personality you may have some other elements. In this article, we discuss key elements that must be in every trading plan.
🔰Trading Strategy.
I want you to realize that a trading strategy is not a trading plan. A trading strategy is simply one of its main elements.
A trading strategy defines a set of rules and market conditions that one is looking for to open a trade and then manage that.
🔰Trading Time.
Relying on your trading strategy you should know exactly when you trade. The time range must be precise and fixed. If you think that today you can trade the opening of the London session, tomorrow the Asian one, and then the US opening, I have very bad news for you.
Your trading hours must be fixed and objective.
🔰Trading Instruments.
As with your trading time, you should have a fixed trading list. A set of financial instruments that you monitor on a daily basis.
🔰Trading Journal.
You should learn to journal your trades. Just a single performance is not enough. You should note the exact market conditions that made you open the trade and many other factors that you consider to be important.
Then learn from your mistakes and improve your trading strategy based on your journal.
🔰Risk Management.
Having the best trading strategy in the world one can fail simply because of neglecting the rules of risk management.
Define your risk per trade, maximum drawdown, and biggest losing streak you can take.
Optimize your trading to keep your losses under control.
Of course, that list can be extended. We can add, for example, trading psychology into that.
As I said, a trading plan is a very personal thing and while you mature in trading it will become more and more sophisticated.
The elements that we discussed in this article are crucial for your success in trading. In my view, their absence will lead you to a failure.
What do you want to learn in the next article?
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
XAUUSD - KOG REPORT!KOG Report:
17/04/22
In last weeks KOG Report we said we were not convinced by the bullish move from the previous week and would be expecting the market to go a little higher to target the levels of 1970 and above that 1975 where we would be looking to protect and take most of the profits on any longs and then waiting to short the market into the lower support levels initially. We suggested that we would like the market to open, target the 1950 level and then drop into 1940 where we would be looking for support where we would go long for our targets. As we suggested the market played out exactly as planned, not only down into support but then up into the 1970 and 1975 regions. We ended the week in Camelot with 19 targets hit across 22 trade ideas. Another phenomenal week for us and our members here at KOG.
So, what can we expect for the week ahead?
Again, we’re going to keep it quite simple this week as the plans from last week haven’t really changed. We can see another push to the upside into the 1985 and 1995 levels and potentially just a little higher around 2003-8 where again we will be looking for the market to correct at some point during the course of the week. We have a lower level of 1920 and 1895 which we’re targeting as long as the price stays below the 2000 level. Breaking 2000 to the upside on the Daily and closing above it will negate our plan temporarily.
Immediate supports stands first at the 1960 level and below that just above 1950, this is where there is likely to be a reaction in price to the downside. On the flip side, immediate resistance stands 1980-85 which is also where we are likely to see a reaction in price. We have a pattern test around the 1995 level with a lot of imbalance above, so its likely we will see bullish movement but as we’ve said, we would like the pull back first into the lower support regions.
So, we will as always look at this with 2 scenarios in mind:
Scenario 1:
The price begins by declining into the lower support region of 1960 initially, this is where we feel there could be an opportunity to target the long trade into the above resistance levels with the complete target being at 1985. This is where we will be looking to protect any long trades and taking a majority of profits of the table. We would like to see this target the higher levels where we will be looking for signs of a reversal to take the short trade back down into 1940, 1920 and below that 1895. IF we do achieve those lower levels we will be looking to go long again to go higher!
Scenario 2:
Price pushes to the upside and targets the 1985-95 levels, if we face resistance here we will be looking to short the market back down into the first key resistance level of 1960, below that 1940 and a break of that the level we’ll look for 1920. At this point we will take it step by step looking for signs of a reversal to again go long and target the higher targets.
In summary:
So, our key levels are 1960 and 1985 as immediate targets to the up and downside. Price needs to stay below the 2000 level on close for us to continue targeting the 1895 level. A break and close above 2000 with confirmation of the movement and we will start looking to target the higher levels with the ultimate target being 2090 for us.
We’re not expecting much during the start of the week so its possible we will just see the market range and prepare for a breakout in either direction. We will of course share our daily levels and plans as we progress throughout the week.
We will try to share the daily and monthly levels and structures at some point during the course of the week so you can see what we’re looking at and what we have been observing in Camelot.
Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold so your likes are very much appreciated.
As always, trade safe.
Not having a position is also a position - When trading is bad?Every day we start by choosing between long and short.
Sometimes you wake up, look at the btc chart - and clearly see your setup.
And sometimes you don't see it. But you still saw how many of your friends traded shorts successfully and decide to enter a hostile market.
Bottom line: Lost profit, exhausted nerves, stress, a blow to self-esteem.
Most traders forget that there is a third option - to stand aside.
Let's discuss when such position can be useful and why most people use it so rarely.
Pro traders can be split into 2 types:
Bulls and bears. They trade for profit only in one direction, because they have a trained eye to see only their kind of setups.
When a bull finds himself in a bear market, he either trades in the red or breakeven. The same true for the bear.
And yet, even knowing this, the trader continues to trade unfriendly setups. Fueled by success that he carries from his market, he is sure that just a little more, a LITTLE LITTLE more, and he will be able to trade profitably in this market as well. "And if I can trade for profit in both directions, then I will become an absolute terminator and even Warren Buffett himself will personally beg me to share my market forecast with him!" I don’t know if you woke up with such thoughts in the morning, but I definitely had a couple of times.
The answer to this phenomenon is GREED (for money or fame). And the easiest way to get rid of such incidents is to write the following rule in your trading algorithm (I hope you have it):
• Trading during correction is prohibited.
Just one sentence will save you a huge amount of money and help you increase your capital much faster.
Instead of losing money trading corrections, it is better to:
• Relax and spend part of your honestly earned profit on yourself and your loved ones.
• Patiently wait for your market and return to the game.
Do this - and trading will bring you much more pleasure, and you will earn even more and enjoy your life!
If this article was useful to you, please like and leave a comment so that I understand that it has value to you and will continue to write educational material in the future✌️
How to Read a Candlestick | Beginners Guide 🕯
Hey traders,
If you follow me for quite a while you probably noticed that I apply a candlestick chart for the market analysis.
In this post, we will discuss how to read an individual candlestick and we will outline its important elements.
🔰The candlestick reflects the price movement for a selected period of time.
An hourly candle will show you a price action within an hour and a daily candle within a day.
🔰The candlestick pattern has a very specific shape:
it is composed of a body and a wick.
The wick of the candle indicates the range of the price action within the candle. Its upper wick will show you the highest price during that time period and its lower wick will show the lowest price, while the body of the candle indicates its opening and closing price.
🔰From the color of the body of the candle, we identify its direction.
Green signifies a bullish candle while red signifies a bearish one.
🔰The lower boundary of a body of a bullish candle will show its opening price and its upper boundary its closing price.
🔰The upper boundary of a body of a bearish candle indicates its opening price and its lower boundary its closing price level.
With so many elements within a single candlestick, one can derive a lot of valuable information.
Some candlesticks have a very specific form and are called candlestick patterns. They are applied for predicted the future market behavior.
A proper reading of a candlestick chart may unveil a lot of insights about the market so it is very important for you to learn to work with that.
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Triangle Play that I missed...This was on a watchlist I created for triangle breakouts, but I forgot to set an ALERT. I got busy watching other things and making other lists. This would have paid nicely after the break.
Lesson Learned... The alerts are there to help you! SET AN ALERT & make money.
Lesson Learned.. If your working on a new strategy then commit to it. Follow it. Track it. Watch It. Work it!
Pay offs like this can make your year.
Analyst and Trader. What are the differences?👨🎓👩🎓
✅Trading on the market consists of two different, but equally important tasks, namely: market analysis and the ability to trade.
✅Market analysis is a technical or fundamental analysis of price movements in the market, and trading is the ability to competently place orders for the purchase or sale of various market assets in order to make trading as profitable as possible. Most traders do not take into account the difference between market analysis and trading rules. But knowing these differences can significantly increase the profitability of your trading system or, at least, will help to avoid significant mistakes initially.
🟢Analyst or trader?
❗️When making transactions on the stock exchange, traders often consider themselves both an experienced trader and an analyst at the same time, since they perform all the analyses and trading independently. But not every trader can be experienced in both tasks at once. Some stock speculators analyze the market very well, but make mistakes when trading, and vice versa, not strong market analysts successfully make entries and exits from the market.
❗️Therefore, very often, one person can be an excellent market analyst, but his trading system falls apart under the pressure of incorrectly executed transactions (i.e. placement and management of already completed transactions). While another trader may not be strong in market analytics, but has a psychological profile that is ideal for making trades.
⚠️At the same time, both those and others can make a constant profit by following the rules in their trading systems.
🟢Why is this happening?
The thing is that analysis and trading are very different tasks and require different psychological traits. For example, market analysis as a separate task does not bring either profit or loss, since market analysis itself cannot lose capital, so this activity does not carry emotions associated with it (for example, fear or greed). On the other hand, trading, as an isolated task, brings either profit or loss, that is, by making purchases, there is an opportunity to lose partially or completely trading capital. Therefore, those emotions that are not applicable to market analysis are very relevant for trading.
🟢Trade Partnership
❗️One of the solutions to overcome the differences between analysis and trading in the market is to find your opposite and form a potentially very profitable trading partnership. For example, if you are a good market analyst (i.e. you can identify potentially profitable trades), forming a partnership with a trader, i.e. with someone who is not able to perform correct market analysis, but can competently make and manage transactions without succumbing to emotional traps. Such an alliance can be much more beneficial for both.
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The Journey of a Trader 🛣🚶
Hey traders,
Why 95% of traders fail?
In this post, we will discuss the trader's road to success and why most of the traders give up at the halfway point.
On the chart, I was trying to portray the journey of a trader:
most of the traders start this game with gambling.
They randomly buy and sell the market relying on their intuition and with a high degree of probability end up with nice cush.💰
However, as they proceed they realize that the profits that they made were the product of luck, not skill. 🍀
The more they trade, the less they win.
At some moment losing trades start to outperform winners.
Trying different things, jumping from one strategy to another, one comes to the conclusion that nothing seems to work.🙅♂️
He goes broke, he is panicking.
At that stage, the majority blame the market for their failure.
Forex, stocks, gold trading is complete scam.
Making profits on the market is not possible.
They give up and leave.👣
Only 5% are persistent. Only 5% are blaming themselves not the market for their failure.
They start following a strict trading plan, they follow risk management recommendations of pro traders and at some moment they start making 0.📝
Buying and selling the market, at the end of the day, they don't lose anymore.
That is the most important milestone in a trader's journey.
Realizing that the one stopped losing, a trader starts polishing and improving his rules in order to achieve better results.
He trains and works with his psyche.💪
After years of struggling, one finally contemplates a consistent account growth.
He became a pro trader.🏆
I wish you to be persistent, traders and don't give up.
Patience pay and at the end of the day winners win.
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What are Moving Averages & how to make money on them?📚
🟢The main rule of using Moving Average is to track the general direction of the moving average: it indicates the dominant trend in the market. It is worth making deals only in the direction of this movement. Such a simple rule makes the moving average method a convenient tool for short-term forecasting.
🟢A universal tool in almost all markets is a simple moving average (SMA) with a 200-day averaging period. A longer-term moving average will allow you to see the global rise or fall of the asset, avoid short-term fluctuations or minor consolidation of the exchange rate. As a rule, short moving averages allow you to react more actively to price movements and are designed to search for short-term trends. When analyzing the price chart on a daily or even shorter interval, many traders use "fast" EMAS with different averaging periods (5, 7, 13, 21, 50).
✅To date, there are many recommendations for the period of the moving average (3, 5, 7, 13, 21, ...), as well as methods of its calculation (SMA, WMA, EMA). The general postulates are as follows:
✅The "faster" the MA (EMA) and the shorter the calculation period (3, 5, 13, ...), the more likely it is to receive false or ambiguous signals;
✅The "slower" the MA (SMA) and the longer the calculation period (50, 100, ...), the more likely the moving average is to lag behind the real state of affairs in the market.
❗️The moving average method is still a universal way to determine the trend in the asset market. Ease of use and unambiguous interpretation of the result allow the investor to determine the prevailing trend with a high degree of probability. This minimizes the risk of making unprofitable deals. The use of the method as an independent tool when deciding on a transaction is controversial, since all possible successful combinations of the intersection of moving averages or the average and the asset price are subject to cyclicity and sometimes give false or ambiguous signals.
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Learn Trend Analysis | Impulse & Retracement Legs 📈
Hey traders,
As you asked me, in this educational post we will discuss some price action basics.
No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis.
You should always know where the market is going; if it is bullish or bearish.
One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements.
➖The impulse leg is a trend-following move.
It is characterized by heightened movement dynamics and speed.
Usually the completion point of the impulse:
sets a new lower low in a bearish trend,
sets a new higher high in a bullish trend.
➖A retracement leg is a correctional movement within the trend.
Its’ initial point is the completion point of the impulse or retracement leg and
its completion point might be an initial point of a new retracement leg or of a new impulse leg.
Usually, a retracement leg is characterized by a slow zig-zag movement.
Usually the completion point of the impulse leg:
sets a lower high in a bearish trend,
sets a higher low in a bullish trend.
Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns.
What do you want to learn in the next educational articles?
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AUDUSD: Top-Down Analysis & Great Buying Opportunity 🇦🇺🇺🇸
Daily/4h/1h time frame analysis on AUDUSD.
Price action & key levels.
Trading recommendations & thoughts.
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Your Trading Style and Holding Period ⌛ ⌛ ⌛
How long to hold your trading position?
Everything depends on your trading style.
In this post we will discuss the preferable holding period for your trading positions.
First,
Let's define 4 main trading styles:
Scalper, intraday trader, swing trader and investor.
One of the core differences between these styles is the time horizon of their predictions of a market behavior.
1️⃣Scalper attempts to predict minor price fluctuations. His goal is not to pursue the waves, rather a minor moves up and down.
For that reason, pro scalpers tend to hold their position minutes, sometimes even seconds.
Expanding the time horizon they are risking to be stopped out from their positions.
2️⃣Intraday traders operate on intraday time frames.
They are trying to predict the price movements within a day or even a trading session.
The average holding period of a pro intraday trader is ranging from minutes to hours.
3️⃣Swing traders are aiming to catch swing moves - the waves.
Typically by a wave we call a trend following movement.
Pro scalpers usually close their positions once the market starts retracing (correcting itself).
Following such a strategy, scalpers tend to hold their trades days to weeks.
4️⃣In contrast to a swing trader, the investor does not care about the retracements and pullbacks.
The investor is trying to pursue the entire movement within the trend.
Usually he hold his position till the trend lasts and closes that only when the market starts reversing.
Investors tend to hold their positions months, even years.
Recognizing an average holding period is crucially important for a selection of your trading style.
Which one do you prefer?
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