Hey traders,
Rising wedge pattern is one of the most accurate price action patterns.
Being relatively simple to recognize, it is applied in various trading strategies.
⭐️The pattern itself signifies the exhaustion of bulls.
Even though the asset keeps growing in value, the price action legs contract forming a narrowing channel.
Being stuck between two...
✅The price dynamics of an asset are displayed on the chart in different formats, including bars, lines, or candles. The latter format is most popular among traders and is often used in technical market analysis. What are candles and how to work with them?
🟢Candlesticks (Japanese candlesticks) are a graphical way of displaying price dynamics, in which vertical...
Trend reversal or correction chart patterns signify a reversal of the current trend on the observed chart. In a bullish trend, a reversal formation indicates a highly probable reversal and initiation of a bearish movement.
In a bearish trend, a reversal patterns leaves bullish clues and indicates a highly probable bullish accumulation.
No matter bullish or...
Trading on the market can be regarded as a full-fledged struggle for the right to survival, where the main enemies are two factors, infinite randomness and time.
By adapting your positions to what is happening, you risk becoming that very accident and you can only fight with time.
The mechanics of the position set includes a theory about the direction of the...
Hey traders,
In this educational post, I want to discuss with you one of the most accurate REVERSAL candlestick patterns - the engulfing candle.
On EURUSD chart, I spotted for you bullish & bearish examples of this pattern.
The logic behind this pattern is quite simple:
⭐️In a bullish trend, after a strong directional movement, the price reaches some...
✅There are several main ways to work on the stock exchange in trading. Technical analysis, for example, is recognized as effective and is used by almost all market participants. But the disputes about indicator analysis do not stop for a long time. Some traders talk about the backwardness of the method because trading operations are performed faster every day....
1️⃣ Pattern head and shoulders
After the pattern has become visible, namely, the right shoulder is visible, the trader needs to wait for the breakout of the neckline. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it is better to use a sell stop order.
To...
Hey traders,
You frequently ask me what is the most important time frame to analyze and follow.
And even though I must admit that multiple time frames must be taken into consideration for successful trading like weekly/daily/4h/1h. Among them, there is the one that is universally considered to be principal. That is a daily time frame.
There are a lot of...
One of the most common misconceptions in trading is that your STOP LOSS is your ENEMY.
But in fact, the opposite is true. Stop loss is your best friend
There will always be losing trades because they are part of the trading system. You cannot avoid them, but you can CONTROL the losses.
Stop Loss is a defense mechanism designed to get you out of the market...
Hello everyone! In this idea, I will try to warn you against the wrong approach to trading.
As you know, 95% of retail traders hold their losing positions for too long in the market, but at the same time cut profits before the trade reaches its potential.
That is, a trader, being in unprofitable positions, is ready to sit out huge drawdowns -50% ..- 70%...
A trader who is in a bad mood should think about taking a break.
The easiest way to determine when a BREAK from trading is needed is to first assess your current emotional state and performance.
- Do you constantly close the trades couple of seconds/minutes after you opened them, chaning your mind?
- Do you spend all day "burning" your eyes, watching charts...
Bites Of Trading Knowledge For New TOP Traders #4
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What is the role of a financial custodian? –
A custodian or custodian bank is a financial institution that holds customers’ securities for safekeeping to prevent them from being stolen or lost. Custodians are responsible for the safety of...
Bites Of Trading Knowledge For New TOP Traders #3
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What is liquidity and what is its significance? –
Liquidity refers to the availability of a product and ensures market participants have the ability to buy and sell easily.
A liquid market increases the likelihood for finding a counterparty...
Bites Of Trading Knowledge For New TOP Traders #2
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What is the Notional Value of a Futures Contract? –
Notional value of a futures contract is how much total value the contract theoretically controls.
Contract Size * Underlying Price = Notional Value.
Bakkt ® Bitcoin (USD) Cash Settled...
Bites Of Trading Knowledge For New TOP Traders #1
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What is Hedging? –
Hedging is the action taken through the use of a financial instrument to minimize the loss or risk of the loss of value of an asset due to adverse asset price movements.
Who are Hedgers? –
Hedgers are market...
Hey traders,
I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing.
Contemplating my old self, I notice a dramatic shift in my mindset in regards to trading.
Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided...
The main difference between an Analyst and a Trader is in their main goals.
For an analyst, the main goal is to determine the future price and write articles.
Most analysts give a double trend direction in their forecasts, as they worry about their incorrect forecast, and hedge in case of their mistake.
For a trader, the main goal is to MAKE a PROFIT when...
1. Key levels breakout
Bulls/bears become strong enough to violate a key support/resistance and are willing to push to new lows/highs
The best opportunity for trade entries.
2. Trend continuation
Strong bearish/bullish trend following movement.
More and more trades join the rally after a breakout.
3. Consolidation & accumulation
Oversold/overbought condition...
