Your strategy will inevitably go through a Drawdown. And there's nothing you can do about it to stop that. However, you can learn how to survive it! Today I will give you actionable steps, that you can use for the next time the market hit your strategy and you feel that everything is going wrong. Let's start with an idea of what a drawdown is, and why drawdowns...
Hello everybody! This is a follow up on my 6-part traditional and crypto market analysis, yet everyone that reads this one will benefit greatly, regardless of whether they've read any of the previous analyses or not. Over the last week I provided some updates on each part, however it currently makes more sense for me to make a brand-new holistic analysis, rather...
Today we will go through a simple trading lesson, but an effective one. The example I will be using today in terms of timeframes is mainly focused on Swing Traders; however, these principles remain valid for any timeframe because of the fractal characteristic of the market. Also, this will be a bullish example, but the same principles apply to bearish examples. ...
The cycles of the S&P500 / PART 1 This post introduces a study I'm conducting with the main objective of understanding the cycles and sub-cycles that the S&P500 Index has. Why am I studying the S&P500? Because it is the most relevant index in the world. There is not any other economy in the world that gets close to the returns of the US stock market as a...
Today I will share a template that may be really helpful to understand some key concepts: First concept: Only look for setups IF the price has reached a major level. In this example, we can see a bearish movement that has reached a weekly level. Why is this relevant? Because if we are working with relevant levels that had worked in the past, we increase the...
Today, I observed the IBM chart, and I noticed this huge descending channel on the daily chart since 2013, and I saw that the price was breaking it. So, I decided to go to a higher timeframe to look for similar scenarios in the past, and yes!!!!!, having data since 1985 allowed us to see how this type of situation evolved in the past. Here are my conclusions ...
Today, we will explain the most important concepts behind triangle patterns. The first thing you have to know is that triangle patterns are composed of 5 waves which we can define using letters "a,b,c,d,e" This concept was created by Ralph Nelson Elliott, one of the fathers of modern technical analysis and mainly known because of the "Elliott Wave...
Hadn't seen any videos of anyone doing something as silly as this (which of course fits into the WSB philosophy) so thought I'd make a video of it and share it in case it amused or inspired anyone else. Just something I have been having a bit of fun with over the last couple of weeks. You could do this with any broker, but I REALLY like the simplicity of doing...
First of all, what is a breakout trader? It's a type of style in which we look for a clear consolidation period, and we aim to trade after the pattern is broken. Check the main chart on TSLA to get the concept. The main idea of this comes from the Elliott Wave principle, in which consolidations tend to be the beginning of a new motive wave or impulsive wave. Why...
Key patterns of price action. Below I will describe several key patterns, but on the diagrams you can see the analysis from a technical point of view. And also please pay attention to the rules, which I do not advise to ignore. The Cup with a handle pattern is formed according to the following logic: - On an upward movement, the bulls cannot push through the...
I’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to...
Today we will show you the theory behind Pennant patterns and apply them to a real example. CONTINUATION PATTERNS: Ralph Nelson Elliott (who created the Elliott Wave Theory) discovered that there are 4 types of patterns that the resolution of them tend to be in the same direction of the previous impulse once the correction is finished and we have a...
Here, we will expand the information about the chart. Corrective Structure: Tell us about an accumulation/distribution process. That means that Institutional funds are trying to buy the maximum amount of an asset. Remember, they have a lot of money. They cant set a buy order as Retail traders do. They need to average their buy on a range (that takes time). The...
Today we have another Academy Post. In this article, we will explain the way we trade pennant patterns on a real setup. FIRST STEP: Understand the context -In this case, we have the price inside an ascending channel (that provide us a bullish direction) -The price is at All-time Highs ( Next Resistance zone, the upper trendline of the channel) -The price is...
This might be it. I've seen a video recently "A Guided Meditation for When the Stock Market Is Dropping" Loved it. A video to help reassure and relax bagholders. "The market always goes up over time" I keep hearing this over and over and over. It is so absurd, so stupid, but every one keeps repeating it. Complacency much? All these investors need a harsh...