Forex trading success hinges on a well-defined strategy, as it sets a clear direction and methodology, whether it be scalping, day trading, or another approach. Key to this is understanding the market conditions under which your strategy thrives, as different strategies perform variably across market environments. Employing technical indicators is crucial in...
In this model, we observe a market that begins to consolidate before a sharp decline, during which liquidity is created with an imbalance. Immediately after, there is an upward movement with rising highs and lows, forming a bullish liquidity trendline. When the price reaches a point where it starts to consolidate, dual liquidity is generated on the buy side in the...
Introduction: The trading strategy "Choch Entry & Liquidity Model" has emerged as an innovative model in the financial domain, focusing on market entry and liquidity. This approach is built upon key principles aimed at maximizing returns and effectively managing risk. Fundamental Principles: The strategy relies on an entry approach known as "Choch Entry," which...
Here's an analysis of various candlestick patterns commonly used in technical analysis of financial markets: Dragonfly Doji: This candlestick has a small body with a long lower shadow and no upper shadow, indicating significant price exploration lower but closing near the opening price. It is often interpreted as a signal of a potential bullish reversal. Morning...
The dynamics of the markets develop within ranges. Understanding the formation of a range is crucial to grasp the mechanism of price formation. A trading range is established when buy and sell orders are activated, creating a new fluctuation with its own high and low. These define the current trading range. The IPDA (Interbank Price Delivery Algorithm) searches...
The Power of 3 (Po3) concept in trading involves using a specific opening price as a reference point for buying and selling decisions. This opening price is set at midnight New York (EST) time and serves as a filter for trading strategies. The idea is to buy below this price on bullish days and sell above it on bearish days, without worrying about market closure....
The presence of institutional sponsorship is evident in the dynamics of price action, where algorithms governing various asset classes operate in harmony. This interconnectedness is logical; when one asset class is correlated with another, fluctuations in price inevitably influence its correlated counterpart. This phenomenon, identified by ICT as S.M.T Divergence...
In the realm of financial markets, the Interbank Price Delivery Algorithm (IPDA) operates based on a sequential consideration of time and price. Time serves as the initial component that IPDA takes into account, establishing specific time windows within which it will subsequently focus on identifying key price levels, referred to as PD.ARRAYS. This strategic...
A FVG can indicate that IPDA is in a hurry to move price in one direction over another. This is an algorithmic footprint that we can see in price action. ICT often uses the analogy of an elephant stepping into a children's pool. Since the size and mass of the elephant's foot is so large, we will of course see a displacement of water. ICT uses this analogy to draw...
IPDA not only engineers liquidity in the markets by moving price, by design it has to offer fair value for buying and for selling. This too is based on its market efficiency paradigm logic. In some cases, IPDA may reprice too quickly in one direction over another, thus leaving an inefficiency in price delivery (A FVG). In order for IPDA to maintain its fair value...
"Everything starts with consolidation": IPDA (Interbank Price Delivery Algorithms) keeps the price within a range. This allows liquidity to accumulate above the consolidation range in the form of buy orders and below the consolidation range in the form of sell orders. This phase is known as the accumulation phase. Subsequently, IPDA reprices above the...
1. Study. Learn how financial markets work. Years ago I took Khan Academy's free courses on the financial markets. It really helped reinforce what I already knew, taught me new stuff and solidified my confidence in understanding how the financial markets work. Here's the link: www.khanacademy.org Learn the basics of Technical Analysis. For this part I read...
Recently, I've realized that my typical day involves constant encounters with indicators. For example, when the alarm clock rings, it's an indicator that it's morning and time to get up. I am checking the phone and once again paying attention to the indicators: battery charge and network signal level. I figure out in just one second that such a complex element of...
In this post I want to explain how I use the Logical Trading Indicator V.1 that I published as a community script here on TradingView. The following strategy is what I use on a daily basis with a number of different assets, primarily crypto and FOREX, but can work with just about any asset with a chart. This post is not specific to one particular timeframe, but I...
Option Trading work based on a contract that gives the buyer the right to buy or sell a certain asset, at a predetermined price (strike price) within a certain time period. A very simple task, but is there a clear technical analysis method that can provide consecutive wins? This post is not trading advice, just a statistical hypothesis test. I will try in...
Overview The system is designed to continuously monitor assets price movements, identifying formation of bases, and providing alert notifications when these bases and/or layers are either breached or adhered to. System settings are adjusted by machine learning model applied to historical price action data. Release Notes These major features and enhancements...
I am pleased to introduce a robust long-term strategy that seamlessly combines performance with an enticing risk profile. This strategy involves strategically investing in ETFs indexed on the S&P 500 and ETFs backed by physical gold. Let's delve into the rationale behind selecting these two assets: S&P 500: 1. Automatic Diversification: Instant exposure to a...
I've added a new function to my strategy that allows simulating the strategy's performance while gradually increasing the capital used each month, thus simulating both savings and investment simultaneously Backtest of my strategy docs.google.com