When you understand the Wyckoffian phases of the market, you can determine when to be in or out of the market. You begin to understand how the large accounts determining market the trend, change of trend and price action. Wyckoff Phases of Accumulation Phase A: In phase A, supply has been dominant and it appears that finally the exhaustion of supply is...
When things are great, we feel that nothing can stop us. And when things go bad, we look to take drastic action. Because emotions can be such a threat to an investor's financial health, it is important to be aware of them. This awareness can then protect you from the negative consequences of impulsive and irrational reactions to these emotions. 1: Optimism,...
Moving averages rely on past data, they are considered to be lagging or trend following indicators. Regardless, they still have great power to cut through the noise and help determine where a market may be heading. Different types of moving averages There are various different types of moving averages that can be used by traders. Despite the various types, the...
Hanging man The hanging man is the bearish equivalent of a hammer (bullish pattern). It typically forms at the end of an uptrend with a tiny body and a long lower wick. The lower wick designates that there was a large sell-off, but bulls headed to take back control and drive the price up. Holding that in mind, after a lengthened uptrend, the sell-off may act as...
Trend Continuation Candlesticks Patterns There are countless candlestick patterns that traders can use to identify areas of interest on a chart. These can be used for day trading, swing trading, and even longer-term position trading. Rising three methods This pattern occurs in an uptrend, where three consecutive red candles with small bodies are attended by...
Distribution Schematic In essence, the Distribution Schematics works in the opposite way of the Accumulation, but with slightly different terminology. Wyckoff method distribution schematic Phase A The first phase occurs when an established uptrend starts to slow down due to decreasing demand. The Preliminary Supply (PSY) suggests that the selling force is...
Accumulation schematic #1 Wyckoff Event and Phases The Wyckoff Method was developed by Richard Wyckoff in the early 1930s. It consists of a series of principles and strategies initially designed for traders and investors. Wyckoff dedicated a significant part of his life teaching, and his work impacts much of modern technical analysis (TA). While the Wyckoff...
The most popular and simplistic way to use moving averages is to divide the market into a bullish or a bearish one based on a cross. Even today, financial newspapers refer to these crosses as being really important and defining for a market. In order to look for a golden or a death cross, a daily timeframe needs to be open on the financial product one is...
The word "divergence" means "to separate and go in different directions." In trading, it describes a pattern where a price trend and the indicator's trend are the opposite. Best regards EXCAVO
1. You should not expect that the loss-making trades will ultimately lead to a reversal and profit. You should not build up a position on it, proving to yourself that you are right. The best solution would be to exit the position and accept your losses, as they are inevitable in stock trading. 2. Stop loss and take profit should be based on the market situation,...
You can make money from an uptrend or a downtrend in trading. Downtrends tend to move faster than uptrends, which is why you will find some traders who opt to only short sell assets in order to capitalize on the quick price action. Many kinds of research show that financial instruments can trend more than 30% of the time. The rest of the time, the active moves...
With all this fear and sales and talk and stagnation and ..... It is not out of its daily routine yet ... And the purchase signal is 6650. And as a relatively strong support line. If you look at the analysis I sent, you will notice that the daily trend line in a rising channel is moving. However, according to the fundamental loss limit for buying in the 6650 area,...
This is a simple table to calculate % account recovery. Example if you have $ 1000 and you have lost 20%, now you have $ 800. to recover from $ 800 to $ 1,000 you need to earn 25% of $ 800 Dear friends, if this post gets 300 likes I will make post about how to managing your risks Best Regards EXCAVO
Wave characteristics 1. "Market psyche" is almost completely bearish The news is still negative 2. The market is drifting away from recent, hard - work, profitable positions. The price can roll back almost 100% of Wave 1, but not lower that is beginning . Usually it is about 50-60 % of Wave 1, and it develops...
LOGISTIC CURVE The logistic curve describes the speed of information dissemination among people. This graph describes the distribution of information in an environment. At first, a instrument is of little interest to anyone, investors are afraid of buying it, and its price fluctuates around r °. At this time, the initiated ("elite"), solely owning important...
THE FRACTURE MODEL “HEAD AND SHOULDERS” The most well-known and, thus, the most convenient fracture model is H&S. Let’s review it in details, as other models appear its variations. This key fracture model, as well as others, is a direct logical continuation and development of those statements connected with the tendency, which were discussed. Imagine a...
Three phases of the trend. The main trend has three phases. Usually, three phases can be distinguished within the development of the main trend. The first phase, or the accumulation phase, emerges when the most far-sighted and informed investors begin to buy, since all the unfavorable economic information has already been taken into consideration by the...
FALSE BREAKOUTS, BULLISH AND BEARISH TRAPS FALSE LEVELS BREAKOUT: TRADE, KINDS, PATTERNS Trading strategies using key support / resistance levels are among the most popular and often used in trading practice by most traders. However, behind the seeming simplicity of the trade of the rebound from levels, and their breakdown lies a lot of nuances, which are...