Get started

Trends

Trendlines Explained Trendlines are graphical representations of the price movement of an asset in a financial market. They are formed by connecting a series of highs or lows of an asset's price over a specific period. The resulting line can be used to identify the direction of the trend and to help traders make decisions about buying or selling. In other words, A trendline is like a line that you draw to show which way the price of something is going. If the price is going up, you draw a line that goes up. If the price is going down, you draw a line that goes down. If the price is staying the same, you draw a line that stays straight. So, a trendline is like a picture that helps you see if something is getting more or less expensive, and helps you make good choices about what to do with your money. How to draw a trendline. 1:Look at the price chart of the asset you are interested in and identify the direction of the trend. You can do this by looking for a series of higher highs and higher lows for an uptrend, or a series of lower highs and lower lows for a downtrend. 2:Choose the two most significant points on the trend that you have identified. These points should be the highest high and the lowest low for an uptrend, and the lowest low and the highest high for a downtrend. 3:Draw a straight line connecting these two points. This line represents the trendline. If the trendline has been successfully drawn, it should touch or come close to touching at least three other price points on the chart. This provides confirmation that the trendline is accurate and significant. 4:Adjust the trendline as necessary to make sure it accurately captures the trend direction. When a trendline is drawn, it can act as a support or resistance level for the price of an asset. A trendline break occurs when the price of an asset moves through the trendline, either to the upside or the downside. This break is significant because it indicates that the previous trend may be changing. A trendline break can be a signal to traders to buy or sell the asset depending on the direction of the break. For example, if an uptrend line is broken to the downside, it could be a signal to sell the asset because the trend may be reversing. After a trendline break, the price may also retest the trendline. This means that the price may move back to the trendline to test its new level as either a support or resistance level. If the price is able to hold above the trendline after retesting it, this could confirm the trendline break and signal a new trend direction. A retest of a trendline can be an opportunity for traders to enter or exit a position depending on the direction of the trendline break and the price action during the retest. If the price fails to hold above a broken uptrend line after a retest, this could be a signal to sell the asset as the trend may be reversing. Conversely, if the price successfully holds above a broken downtrend line after a retest, this could be a signal to buy the asset as the trend may be reversing to an uptrend. Let's say you drew a trendline to represent the direction of an asset's price movement, and the trendline is indicating an uptrend. However, at some point, the price breaks through the trendline and starts to move in the opposite direction. This can happen for many reasons, such as a change in market sentiment or the introduction of new information that affects the asset's value. When a trendline is broken and the price starts moving in the opposite direction, it may eventually reach another longer-term trendline. This trendline represents a broader trend that the asset has been following over a longer period of time. For example, if the original trendline indicated an uptrend for a few weeks, the longer-term trendline could indicate a downtrend for the past few months or years. When the price reaches the longer-term trendline, it may bounce off of it and continue in the direction of the broader trend. This can happen because the longer-term trendline represents a stronger level of support or resistance compared to the original trendline. Traders often use longer-term trendlines as a guide for making trading decisions, as they can provide a more accurate view of the overall trend direction. Remember that trendlines are not perfect and can be subjective. It's important to use other technical indicators and analysis to confirm the trend direction before making any trading decisions.
PEPPERSTONE:ETHUSDEducation
by ChristopherDownie
9
📈 9 Ways To Identify an Uptrend📍 What Is an Uptrend? An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact. Some market participants only choose to trade during uptrends. These "long" trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows. 💥Important thinks to note 🔹Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors. 🔹A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market. 🔹Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
A Case Study on NVDA, Risk Management & Head and ShouldersThe inverted head and shoulders (IH&S) pattern is a widely recognized technical chart formation that signals a potential reversal of a downtrend. This idea will analyze the recent price action of NVIDIA Corporation (NASDAQ: NVDA) stock and discuss the importance of risk management when price action reaches resistance after a substantial rise. Analyzing the IH&S Pattern in NVDA Stock a. The Setup: NVDA experienced a strong IH&S pattern, which has led to a significant rise in its stock price. This is not uncommon, as similar setups have been observed in other stocks like Apple (NASDAQ: AAPL). You can find other ideas that I have shared on AAPL recently. b. Potential Target: The IH&S pattern in NVDA suggests a target price of $269, which has been obtained. There is an extension target of $289 which is only a few points away. The stock has increased by around 47% since the pattern was first identified, indicating that we might be approaching the point of diminishing returns. Also observe a bearish engulfing structure on the daily timeframe. Preparing for a Potential Pullback a. Pullback to $226: As NVDA approaches its target price, a pullback to $226 could be on the horizon. This could be triggered by a reversal or a simple retracement in the stock price. Risk Management Strategies when Price Action Reaches Resistance a. Assessing the Risk-Reward Ratio: As the stock approaches resistance, you should evaluate the risk-reward ratio to determine if the potential profit is worth the associated risk. b. Setting Stop-Loss Orders: To protect against potential losses, you can set stop-loss orders at a predetermined price level below the current market price. This can help minimize losses if the stock price reverses unexpectedly. c. Scaling Out Positions: Gradually closing out positions as the stock approaches resistance can help lock in profits and reduce exposure to a potential reversal. d. Monitoring Technical Indicators: Keep an eye on technical indicators such as the Relative Strength Index (RSI) and Moving Averages, which can signal potential reversals and help you make informed decisions. The inverted head and shoulders pattern in NVDA stock has provided valuable insights into its potential future price action. As the stock tagged its target, you should prioritize risk management to protect their profits and minimize potential losses. By understanding and implementing risk management strategies, you can make more informed decisions when dealing with stocks that exhibit patterns like the IH&S. You will also notice I left a little easter egg on the chart which I will explain in more detail at a later date. This is the elliott wave theory structure. It would appear we've hit a wave 3 target and could be retreating for wave 4. This would suggest an ultimate target at a double top of the all time high. More details on that coming in the future.
NASDAQ:NVDAShort
by bitdoctor
SPX - Mastering the Market's Mood SwingsI previously discussed the likelihood of the S&P 500 Index (SPX) experiencing a rebound towards the 4000-4050 range, with particular attention given to the 4020-4040 level. The index indeed reached approximately 4039 before encountering a substantial pullback. Trading on such days can be complex, and if you're not positioned correctly and overleveraged, you may face considerable losses. Notably, the SPX nearly reached the 61.8% Fibonacci retracement level, which stands at 4043. As we move forward, we can anticipate increased volatility with alternating bullish and bearish movements over the next two weeks. This presents lucrative opportunities for traders, which I intend to exploit. In the past, I've examined the intersection of downtrend and uptrend lines, and when these lines crossed without any release of pressure, I accurately predicted the market's continued sideways movement. This situation remains valid, with the market exhibiting wild price fluctuations. For the short term, I project that the SPX will decline to roughly 3900 by Friday (and possibly lower into next week) before rebounding in the first week of April. Monitor April 6th closely, as it may serve as a pivotal point in the market's trajectory. If the market is in a downward trend approaching the full moon, anticipate a significant upward shift, but if it's in an upward trend, expect a substantial downward movement. Lastly, I'd like to mention the Wave Master Indicator, a tool I developed and have been utilizing in my trading endeavors for years. On the 1-hour SPX chart, the Wave Master Indicator suggests a short-term bearish outlook. In a previous analysis, I highlighted the 4-hour chart, which indicated a potential upward move heading into the FOMC meeting. However, the longer-term indicators were pointing towards a downward trend. This is precisely what happened. Remember that the stock market can be unpredictable, much like the weather. So here's a little joke to lighten the mood: Why did the stock market investor go broke? He tried to catch a falling knife and got cut! Stay sharp and happy trading!
SP:SPXShort
by bitdoctor
Ripple (XRP): Impressive Gains, but Caution is KeyRipple (XRP) has caught the attention of many traders, especially after its remarkable performance today, registering a 20%+ gain. As previously predicted, altcoins are starting to make significant moves in the market, and XRP's recent surge seems to be just the beginning. However, it's essential for traders to exercise caution when approaching these substantial green candles. Key Levels to Watch: $0.50 and Beyond The $0.50 mark represents a crucial psychological barrier for XRP. Should the price break through this level, the next target range would be between $0.60 and $0.65. The red box on the accompanying chart highlights this area, which aligns with previous support/resistance clusters observed in January and April 2022. If XRP manages to reach these levels, it will likely face a significant pause. Trend-based Fib Extension: Targeting 100% Expansion at $0.50 The trend-based fib extension measurement shows a 100% expansion target at $0.50, which XRP nearly achieved in today's spike. This level further underscores the importance of the $0.50 mark in determining XRP's future trajectory. Be Cautious and Look for Other Opportunities Although Ripple's recent performance is undoubtedly impressive, traders should avoid chasing these massive green candles. Entering the market now would place traders over 20% behind others, making it a risky endeavor. It's important to remember that other opportunities may be available in the market, so tread cautiously and be on the lookout for more sustainable entry points. One last factor to consider is the healthy state of the wave master indicator, which suggests a higher probability of XRP reaching the $0.65 target. Nevertheless, to optimize trading outcomes, it's recommended to wait for a pullback and identify a favorable wave master entry point on lower timeframes. This approach will allow traders to capitalize on XRP's potential upside while minimizing risks associated with chasing significant green candles. For your conveinence, I've circled the last few times a daily buy alert has signaled on the wave master indicator.
by bitdoctor
Key Levels and Stocks to Watch Leading Up to FOMC MeetingAs the market anticipates the upcoming Federal Open Market Committee (FOMC) meeting, investors are keeping a close eye on key levels and stocks that may experience significant movements. In this article, we will discuss the potential scenarios for the S&P 500 Index (SPX), Nasdaq 100 (QQQ), and several prominent stocks, as well as the importance of the FOMC meeting in shaping market momentum. SPX and QQQ: Key Levels to Watch SPX appears to be setting up for a test of the 4000 level, with the potential to run up to 4020 if it can break through the resistance. The FOMC meeting will play a crucial role in determining market direction, so investors should monitor developments closely. Similarly, QQQ is approaching the 309 level, currently up almost 2 points in premarket trading. A break above 309 could lead to a test of the 315 level. As with the SPX, the FOMC meeting will be a key factor in shaping the QQQ's performance. Stocks to Monitor: TSLA, AAPL, NVDA, AMD, META, and MSFT Tesla (TSLA) is poised for a potential move towards 190, with 196 as the next target level. Apple (AAPL) is best positioned if it can maintain support at 157. NVIDIA (NVDA) is setting up for a move towards 269, with premarket trading showing an increase of almost 4 points. Advanced Micro Devices (AMD) still has the potential to reach the 100 level. Meta Platforms (META) may experience a 5-point gap up if it can break above 205, with the potential to run up to 213. Microsoft (MSFT) appears somewhat weak at present, with a stronger outlook if it can move through the 276 level. Market Momentum and FOMC Meeting As the market begins to gain momentum on the upside, it is essential for investors to monitor the FOMC meeting's outcome. Ideally, a strong close near the 4000 level for the SPX and 309 for the QQQ would indicate a bullish market environment leading into the FOMC meeting. In anticipation of the FOMC meeting, you should remain vigilant and monitor key levels for the SPX, QQQ, and select individual stocks. The market's momentum leading into the meeting will play a significant role in shaping future trends, so staying informed on the latest developments is critical for successful investment strategies.
SP:SPX
by bitdoctor
A focus on the importance of support and resistance levelsSupport and resistance levels are the lost art of trading any market. In using support and resistance zones, I also use various MA's (Moving Averages) to assist me in finding the perfect entry. Now no trading strategy is completely waterproof. The market will act and react however it wants to, and a multitude of factors can drastically alter price action so take this advice at your own risk. I'm looking to provide a series of videos to assist me in providing this information in a more clear and more concise manner. Support is a zone at the bottom of a trend or series of trends that acts as a trampoline, or (support) to the upside. Resistance acts as a ceiling, or (resistance) that favors movements to the downside. Draw these zones using either a rectangle on higher timeframes or two horizontal lines. There's not a single price that can act as either support or resistance. To create a larger margin of error, we use these zones. These zones usually make up anywhere from 20-30 pips, depending on the symbol in question. Use the MA's to show you where the trend is heading. Bring in other factors such as market sentiment, geopolitics, economic statistics, news breaks, and anything else that can act as confluence in determining where the market may go next. I use anywhere from 3 to 5 levels of confluence before I even think about entering the market. NEVER impulse trade. I also suggest never trading pre-news. When a red folder news event occurs, the market can shake, or "whipsaw" causing price action to rubberband in either direction. These moves are aimed to close retail traders' accounts, and the market wants nothing more than to take your money. More to come in a future idea - stay tuned. Happy trading, and as always, use responsible risk management when trading any financial market. Swindle
Education
by Swindle
1
Following the trend In short, with the knowledge of the bias that follows a descending triangle pattern which requires one to short the market when such a pattern is seen in the chart In both high and lower time frames, I was able to confirm that the pattern is formed in conjunction with the ATR and MA indicator used as confluence to verify my bias. Basically, I couldn't obtain such a result without knowing the trend in the market. In addition, waiting for a retest has always been paramount for me, so if you can notice in the chart there was a retest to the support level marked out which happened to be my entry point
by isyfrankud
SNIPER TRADING SYSTEM OVERVIEWThe Sniper Trading System is set up for the Sniper to make minimum 30pips Daily in Forex. The system is built on the algorithmic movements (aka TIMES of day) that the market has the highest probability to trend✅ The systems foundation is Market Structure that we frame with two formulas: Wick Formula that gives you the structure areas and 17:1 ADR Strategy which traps price vertically within a specific time period that the algorithm moves price. Today I will break down the system in a straight forward way. Box 5PM-1AM EST (From wick to wick) Measure how many pips this zone is. This is your MORNING ZONE. Your 12AM candle is the key to finding your set up. If the 12 AM 1 Hr is RED you are looking for BULLISH plays for the day. If your 12 AM Candle is Green you are looking for the BEARISH play. Once price breaks the high or low of your MORNING ZONE you look for the set ups in confluence with your 12 AM 1 Hr Candle. After we find our set up bias we drop down to the 15min to snipe the play. We have a very tight 5 pip Threshold aka Stop Loss on the trades so this allows you quickly to know when price isn’t going in your favor to pull the trade and wait for another entry. This system trades the Macro Pivot Points so we are always in the trade at the beginning vs waiting for a pullback which often times doesn’t happen cleanly. Take profits at Extremes of the ADR aka liquidity areas (top of the wicks to the body of the candles) This play happens every single day in the market like clockwork. News will set the moves back later so it’s best to trade AFTER news hits unless you are already deep in the trade. I still suggest pulling your profits before news. This system is consistent and will put your trading in AUTOMATIC. Check out today’s set up and how it followed the system perfectly. Never over leverage. Trust your set up. Have fun! Everybody eat$ I AM Master JEDI and Sensi of #SniperGang
by Master-Jedi-Trader
1
EURUSD weekly chart: Trendline retestIf we look at weekly chart of EURUSD , we see a classical trendline retest (price nicely broke down the trendline in April 2022, with a valid breakdown after Tom Demark criteria). Price is likely to continue bearish next months. Tom Demark breakdown projection sends us below 1.00. Price also failed to establish itself in the yearly bull zone - above yearly Camarilla R1, rejecting from there. Typically, from the yearly close, price travels either to above yearly Camarilla R3 or below yearly Camarilla S3 Hence a downtrend to yearly S3 (1.0) is quite likely. For educational purposes only.
Short
by ICFX
1
January Bitcoin Analysis Update. Bull mode or not to bull mode?Here is my updated chart of the January analysis we talk about a lot on the streams. Holding up well so far and with the hash ribbons also supporting the 21k area this does indeed seem good for bulls. Price staying above 20k is very important for the short term momo the bulls have gained. Back below there and its likely range bound. Line in sand is that 16k level. The last thing i would like to see is the bulls pierce the 21 monthly EMA around 27k. Happy trading! Live Streams every Mon, Wed and Friday 9-11am.
BNC:BLX
by nonoiz
1
Earthquake tips SOLANA FallSolana pricing research reveals a downward trend. The resistance level for SOL is $24.89 Support is seen at $23.50. Recent Solana price research shows that the coin has been moving sideways over the last few days. The inverse has begun to take shape, resulting in bearish pressure. The current price of Solana is $23.61, with a small downward trend in the graph indicating that sellers currently outnumber buyers. The bearish has been in charge for the last few days, generating a headwind for the cryptocurrency. The resistance level is $24.89, while the support level is $23.50. In terms of volume, Solana has experienced a reduction in buying momentum as well as trading activity during the last several days.
CAPITALCOM:SOLUSDLong
by DEinvestment