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Using Astro: indicators on non-24/7 chartsWhen loading AstroLib powered Astro: indicators on non-24/7 assets like NatGas, you may notice the indicator has gaps and the plots are not smooth. A simple workaround is to pull up a BTC chart, load the indicator, merge the two panes, hide the BTC plots, and then compare the non-24/7 asset in another pane. The chart for this TradingView Idea is a template that can be used for this workaround. Just click "Grab this chart" above to make your own working copy.
INDEX:BTCUSDEducation
by BarefootJoey
1
Still Losing After Backtesting? This Fixed It.Let’s get straight to it. If you’ve gone through the "nerd arc" and the "backtesting arc" but still aren’t profitable... What’s the fix? In this short write-up, I’ll walk you through 3 brutal truths that made me finally see green. Is it hard? UH—Damn right. But let’s go 👇 1. Market Understanding This isn’t something you "learn" from a course. It’s something that clicks after dozens of stop losses and live trades. Here are a few ways I got more comfortable with it: 1. Don’t fear opening trades or hitting stop loss. Each trade gives you data. More trades = more experience = better market feel. What’s the requirement? Capital and risk management. Without that, you won’t even survive long enough to "get" it. 2. Journaling every single trade. Write everything: your thoughts, screenshots, feelings — before and after. Too lazy to do it? Left trading. Simple. 3. Be the detective. Read the chart like a story. No, seriously. Think of Bitcoin as a character with real moods. Every candle tells you something. That 5% pump? Buyers pushing up. Then bears smacked it down — candle closed red. Now price is bleeding again. Why? 🔍 Be the detective. 4. Analyze the market every day — even without trading. The more you observe, the more you see. Structures. Patterns. Behavior. Easy? Nah. It takes discipline — like posting one story text to Insta for 1,000 days straight. Still wanna try? 2. Personal Trading Plan Remember how I said "don’t fear opening trades"? Well — after you’ve opened a bunch, you can start tailoring your own trading plan based on you. This isn’t a PDF you can steal off Google. Only after seeing how you behave in trades, you’ll know what rules make sense. Maybe: "I don’t trade when I’m emotionally off." "This setup gave me the best results over 100 trades." Just don’t copy-paste someone else’s rules. Make a flexible structure, then let the details emerge from the market and your own experience. Now — Take a deep breath. When was the last time you enjoyed your coffee? More than a day ago? Go make one now. Might not get to taste it tomorrow. Not everything in life is trading :) 3. Psychology Ah, the final boss. Still my weakest area, honestly. But here are a few real things that helped: Tip 1: WRITE. Just write whatever you feel. Telegram saved messages? Notebook? Or if you're like me (🧠nerd), Notion. Do it for 60 days straight — then feed that journal to ChatGPT and analyze yourself. Takes time, but the patterns you'll see are... magical. Tip 2: Money & Risk Management. When you know your stop loss means only -0.25% of your capital… why should you panic? For me: I place the SL, set a TP alert, and leave the screen. No emotions, no fear. Why? Because when capital is protected, so is my psychology. Truth is, trading emotions aren’t just during the trade — they live in your head all day. When your mental energy’s drained? You’ll miss A+ setups. Fall for BS ones. Lose focus. It’s complicated. Because humans are complicated. Our brains are the most tangled system known. And somehow, out of all that noise, consciousness emerges. A miracle. So don’t expect to always feel calm. Just aim to get better. That’s it. Thanks for sticking around. These are just my thoughts, from one tired trader to another 🧠 I’m no expert—just sharing what’s worked (and what hasn’t). If it helped, a boost would mean a lot. 🚫 Don’t FOMO ✅ Manage your capital Until tomorrow — Peace out. ✌️
Education
by SkepticLab
How to Find Liquidity Zones/Clusters on Any Forex Pair (GOLD) You need just 1 minute of your time to find significant liquidity zones on any Forex pair and Gold. In this article, I will teach you how to identify supply and demand zones easily step by step. Liquidity Basics By a market liquidity, I mean market orders. The orders are not equally distributed among all the price levels. While some will concentrate the interest of the market participants, some levels will be low on liquidity. Price levels and the areas that will attract and amass trading orders will be called liquidity zones. How to Find Supply Zones To find the strongest liquidity clusters, we will need to analyze a daily time frame. A liquidity zone that is above current prices will be called a supply zone. High volumes of selling orders will be distributed within. One of the proven techniques to find such zones is to analyze a historic price action. You should identify a price level that acted as a strong resistance in the past. 4 horizontal levels that I underlined on EURGBP influenced market behavior in the recent past. The price retraced from these levels significantly. Why It Happened? A down movement could occur because of an excess of selling orders and a closure of long positions by the buyers. These factors indicate a high concentration of a liquidity around these price levels. How to Draw Supply Zone? One more thing to note about all these horizontal levels is that they cluster and the distance between them is relatively small . To find a significant liquidity supply zone, I advise merging them into a single zone. To draw that properly, its high should be based on the highest high among these levels. Its low should be based on the highest candle close level. Following this strategy, here are 2 more significant supply zones. We will assume that selling interest will concentrate within these areas and selling orders will be spread across its price ranges. How to Find Demand Zones A liquidity zone that is below current spot price levels will be called a demand zone . We will assume that buying orders will accumulate within. To find these zones, we will analyze historically important price levels that acted as strong supports in the past. I found 3 key support levels. After tests of these levels, buying pressure emerged. Why It Happened? A bullish movement could occur because of an excess of buying orders and a closure of short positions by the sellers. Such clues strongly indicate a concentration of liquidity. How to Draw Demand Zones? Because these levels are close to each other, we will unify them into a one liquidity demand zone. To draw a demand zone, I suggest that its low should be the lowest low among these key levels and its high should be the lowest candle close. Examine 2 more liquidity zones that I found following this method. Please, note that Demand Zone 2 is based on one single key level. It is not mandatory for a liquidity zone to be based on multiple significant levels, it can be just one. We will assume that buying interest will concentrate within these areas and buying orders will be allocated within the hole range. Broken Liquidity Zones There is one more liquidity zone that I did not underline. That is a broken supply zone. After a breakout and a candle close above, it turned into a demand zone. For that reason, I plotted that based on the rules of supply zone drawing. Start Market Analysis From Liquidity Liquidity zones are one of the core elements of forex trading. Your ability to recognize them properly is the key in predicting accurate price reversals. Identify liquidity zones for: spotting safe entry points, use these zones as targets, set your stop losses taking them into consideration. They will help you to better understand the psychology of the market participants and their behavior. I hope that the today's tutorial demonstrated you that it is very easy to find them. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Implied volatility, one more tool in our arsenalWHAT IS IMPLIED VOLATILITY? Implied volatility (IV) refers to the market’s expectations of future volatility for a given asset, derived from option prices. Unlike historical volatility, which measures past price fluctuations, IV is forward-looking and reflects what traders believe will happen in the near future, typically over a 1 to 3 month horizon. IV is not directly observable; it is inferred from option prices using models like Black-Scholes. When option premiums rise even though the underlying asset remains flat, this often signals a rise in implied volatility: investors are preparing for more pronounced future price moves. IMPLIED VOLATILITY IN FX In FX markets, as in equities or commodities, implied volatility serves as a risk gauge and a proxy for uncertainty. It plays a critical role in portfolio management, hedging, and strategy timing. High implied volatility on a currency pair indicates market expectations for increased future movement. This can stem from upcoming economic data, central bank decisions, geopolitical risk, or broader market instability. For example, rising IV on EUR/USD ahead of a major Fed or ECB meeting may signal increased demand for options as market participants hedge against potential surprises. Conversely, sustained low IV often reflects calm market conditions or, at times, a strong directional trend. Implied volatility can act as a market condition filter for trading strategies. To simplify, we can, for example, divide the CVOL level into four distinct categories. Abnormally low IV (well below average): Reflects extreme complacency or post-event calm. Moderately low IV (below average): Indicates orderly, technical markets. Moderately high IV (above average): Suggests elevated uncertainty. Abnormally high IV (well above average): Signals market stress or panic. In spot FX, where retail traders rarely engage in options directly, implied volatility serves best as a macro signal, helping inform position sizing, stop placement, or overall risk exposure based on the current volatility regime. One advanced use of IV is to compare it against realized (historical) volatility. When implied volatility is much higher than realized volatility, it often means options are expensive, and vice versa. This comparison proves especially valuable in FX markets, as it helps traders identify situations where risk premia may be overpriced, revealing potential misalignments between implied and realized volatility. It also offers a forward-looking perspective by highlighting upcoming catalysts that are not yet fully priced into the spot market. INTRODUCING THE CME CVOL INDEX To make volatility data more accessible and comparable across asset classes, CME Group introduced the CVOL index family in 2023, a set of standardized implied volatility indexes derived from listed futures options. How CVOL is calculated? CVOL indexes are built using vanilla options on futures. They estimate 30-day forward implied volatility, using a basket of out-of-the-money options across various strikes and near-term expirations. The methodology is comparable to that of the VIX in equities, but adapted for the structure of futures markets. Each CVOL index is expressed as an annualized percentage, which can be interpreted as the expected one-standard-deviation move over the next 30 days. CVOL indexes in FX Several major currency pairs now have their own dedicated CVOL indexes, offering a real-time measure of implied volatility based on options pricing from CME Group futures contracts. Each index reflects the market’s expectations of future volatility for a given pair: EUVL for EUR/USD (based on 6E futures) JPVL for USD/JPY (6J futures) GBPVL for GBP/USD (6B futures) CAVL for USD/CAD (6C futures) ADVL for AUD/USD (6A futures) In addition to individual pair indexes, the G5 CVOL Index provides a broader view by aggregating the implied volatility of the five major currency pairs, offering a high-level snapshot of volatility across the G5 FX complex. This makes it a valuable tool for macro-focused traders monitoring global risk appetite, cross-asset volatility regimes, or portfolio-level currency exposure. HOW TO USE CVOL IN PRACTICE Detecting shifts in risk perception A sudden spike in CVOL, without a move in the underlying, suggests that institutional players are actively hedging. This can act as an early warning signal for market-moving events or shifts in sentiment. Example: before an ECB decision, a jump in EUVL from 7% to 10% annualized while EUR/USD remains flat may suggest that traders are bracing for a policy surprise. Adjusting position sizing When CVOL moves beyond predefined thresholds, traders often respond by reducing leverage, widening stop-loss and take-profit levels, and avoiding overly aggressive directional exposure, in contrast with periods where CVOL fluctuates near its historical average and market conditions appear more stable. Quant strategy filters CVOL can also act as a regime filter within systematic trading strategies. For example, when implied volatility on EUR/USD, as measured by EUVL, reaches extreme levels, certain algorithms may shift into breakout mode, anticipating strong directional moves in a high-volatility environment. Conversely, when the index shows no abnormal reading, it may reflect a well-balanced market backdrop, offering more orderly conditions where structured strategies such as range trading tend to perform better. As historical data on CVOL indexes are available, quant traders can easily backtest and validate ideas that incorporate volatility-based signals or regime filters. More experienced participants often go further, combining FX implied volatility with other volatility indicators, such as CVOL indexes on interest rate futures, to build multi-asset strategies and monitor cross-asset shifts in risk appetite with greater precision. FINAL THOUGHTS Implied volatility is a powerful lens into market expectations and potential price swings. In FX, although not always directly accessible to retail traders via options, IV data provides essential context for positioning, timing, and risk management. With the advent of CME’s CVOL indexes, traders now have a standardized and transparent way to track and compare implied volatility across currencies. Whether you are a macro trader, hedge fund manager, or informed retail participant, monitoring CVOL brings a distinct informational edge, especially when used to anticipate shifts in sentiment and volatility regimes. And perhaps most importantly: IV doesn’t tell you what happened, but what might happen next, making it an invaluable tool for anyone navigating fast-moving global FX markets. --- When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: tradingview.com/cme/ . This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME:6E1!Education
by satelysfx
Quick Lesson: How to Identify Trend ReversalKnowing when to enter the market can mean the difference between making a profit and incurring a loss. The chart above clearly compares two similar-looking scenarios with very different outcomes: the one you should aim for and the one you should avoid. - On the left , we see a textbook example of a bullish reversal. After a significant downtrend, the market prints higher lows and begins forming an ascending support. This signals that selling pressure is fading and buyers are stepping in. Notably, there are usually lots of unfilled bags — latecomers who show strong demand below the current price level but never get their orders filled, and who then just hit the 'market buy' button, which adds fuel to the fire of pump. - In contrast, the right side shows a very similar pattern — a downtrend followed by consolidation, but with crucial differences. Here, all prior liquidity zones have already been filled, meaning there is less incentive for buyers to support the price. The “same vector” suggests price action hasn’t changed direction, and a common short squeeze traps late buyers before resuming the decline. This is a common bull trap , where a temporary price pump gives false hope before another leg down. To sum up , a REAL REVERSAL builds on structure, accumulation, and higher lows—whereas a FALSE BOTTOM is often characterized by brief rallies, exhausted liquidity, and no change in vector trend. Experienced traders wait for confirmation and accumulation before entering a position, not just a temporary pause in a downtrend.
BNC:BLXEducation
by RobertMercer
ETH - BTC ETF News: What It Means for the Market+ China Rumors 🚨 ETH - BTC ETF News: What It Means for the Market + China Rumors 💥🌐 July just ended with a crypto bombshell 💣 — and the market is barely reacting. Let’s break it down: 🧠 One part hard news. 🌀 One part geopolitical smoke. 🎯 All parts worth watching if you care about macro market shifts. 🏛️ SEC Approves Real BTC & ETH for ETF Flows (July 29) Say goodbye to the cash-only ETF model. The SEC now allows direct in-kind creation/redemption of Bitcoin and Ethereum in ETFs. That means providers like BlackRock, Fidelity, VanEck can now use actual BTC/ETH, not just synthetic tracking. ✅ Bullish Impact: 💰 Real Spot Demand: ETF inflows = real crypto buying 🔄 Efficient Arbitrage: No middle step via cash = faster flows 🧱 TradFi + Crypto Merge: ETFs now settle with crypto — not just track it 🎯 Better Price Accuracy: Spot ETFs reflect true market value more cleanly 📉 The market reaction? Mild. But don’t get it twisted — this is a structural reset, not a meme pump. ⚠️ But There’s a Bearish Angle: 🏦 Centralized Custody: Crypto now lives in Coinbase, Fireblocks vaults ⚠️ Network Risks: ETF performance now tied to ETH/BTC uptime 🧑‍⚖️ Regulatory Overreach: More hooks into validator networks, MEV relays 🌊 Volatility Risk: Panic redemptions = real BTC/ETH sold into open markets Still, this is good news for Ethereum in particular. Why? Because ETH isn’t just money — it’s infrastructure. And now Wall Street is finally using it, not just watching it. 🇨🇳 And Then There’s China… Rumor or Tumor? Crypto Twitter is swirling with unconfirmed whispers from July 29 that China may be prepping a major Bitcoin statement ahead of the BRICS summit. But let’s be clear: 🚨 It’s a rumor. Or a tumor. 🧠 And like many tumors in crypto — there’s a 40% chance it brings bad news. 🤕 Still, here’s what’s being floated: 🧠 Speculations Include: 🔓 BTC re-legalization in “special finance zones” (HK-style) 🏦 BTC in national reserves (!) 🤖 CBDC integration or smart contract interoperability ⚒️ Return of official state-backed Bitcoin mining 🧯 But no official sources. Just geopolitics + timing. China’s FUD/FOMO pattern is Bitcoin tradition — don’t get trapped by hopium. But if even half of it is true... buckle up. 📈 Ethereum Leads the Charge — But Watch These Alts: If ETFs go fully crypto-native, some sectors light up 🔥 🔹 1. Ethereum Layer 2s (ARB, OP, BASE) → ETF gas pressure = L2 scaling demand 🔹 2. DeFi Protocols (UNI, AAVE, LDO) → TradFi liquidity meets on-chain utility 🔹 3. ETH Staking Derivatives (LDO, RPL) → Institutions want yield = LSD narrative grows 🔹 4. Oracles (LINK) → ETFs need trusted on-chain data = Chainlink shines 🔹 5. BTC on ETH Bridges (ThorChain, tBTC) → If BTC flows into ETH-based ETFs, bridges light up 🚫 What I will Avoid: ❌ Memecoins – zero relevance to ETF flows ❌ GameFi – not part of TradFi’s roadmap ❌ Ghost Layer 1s – no users, no narrative, no pump 🧠 My Take: ETH is building momentum toward $4,092 — the third breakout attempt on your 1-2-3 model. 🔥 The fuse is lit. Target? $6,036 Timing? Unknown. But structure is in place. Meanwhile, Bitcoin Dominance is rising. ETH is shining. Solana — while powerful — continues paying the price for memecoin madness 💀 We’re entering a new phase — where ETFs settle with real crypto , China watches the stage, and macro money is warming up behind the curtain. So stack smart. Study the flows. Don’t let silence fool you — the biggest moves come after the news fades. One Love, The FX PROFESSOR 💙 Disclosure: I am happy to be part of the Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Awesome broker, where the trader really comes first! 🌟🤝📈
CRYPTO:ETHUSDEducation
by FX_Professor
3
Wedge Pattern — A Key to Trend Movements📐 Wedge Pattern — A Key to Trend Movements 📈 🔍 Introduction The Wedge is a chart pattern that represents a phase of directional consolidation following a trending move. It can act as a continuation 🔄 or a reversal 🔃 signal, depending on the context. The structure consists of two converging trendlines, both sloping in the same direction. 🧩 Pattern Description Unlike the Flag pattern 🚩, the Wedge has no flagpole and doesn’t depend on the direction of the previous move. The direction of the wedge body determines its type: A falling wedge ⬇️ is bullish 🟢 (buy signal) A rising wedge ⬆️ is bearish 🔴 (sell signal) The breakout is the key point to watch. The two trendlines slope in the same direction but at different angles, causing them to converge. This reflects a loss of momentum ⚠️ and typically indicates that buyers or sellers are preparing to take control. This pattern can act as: A continuation signal 🧭 — appearing at the end of a correction A reversal signal 🔄 — forming at the end of a strong trend 📉 Volume is usually low during the wedge and rises on breakout. A low-volume breakout increases the risk of a false breakout ❗. Often, price retests the breakout level 🔁, giving traders a second chance to enter. 🎯 Entry & Stop-Loss Strategy 📥 Entry: On breakout confirmation 🛑 Stop-loss: Below the pattern’s low (bullish) or above its high (bearish), or under/above the most recent local swing point 🎯 Target: Project the height of the widest part of the wedge from the breakout point. Alternatively, use key price levels 📊 or a trailing stop 🔂 to lock in profits. 💡 My Pro Tips for Trading the Wedge ✅ Pattern Criteria Two converging trendlines ➡️➕➡️ Clearly defined structure ✏️ Prior trending move before the wedge 🚀 Low volume within the wedge 📉, high volume on breakout 📈 Retest of breakout level = confirmation 🔁 🔥 Factors That Strengthen the Signal Breakout on strong volume 📊💥 Appears after an extended trend 🧭📉📈 More touches = stronger pattern ✍️ Breakout occurs close to the apex 🎯 ⚠️ Factors That Weaken the Signal Low volume on breakout 😐 Poorly defined trendlines 🫥 Few touches on lines Early breakout (too far from apex) ⏱️ No prior trend / appears in a range-bound market 📏 ✅ Examples of My Successful Wedge Trades 📸 ❌Examples of Failed Wedge Overview 💥 💬 Do you use the wedge pattern in your trading? It’s a powerful pattern, especially when confirmed by volume and market structure. Share your favorite wedge setups or ask questions below 👇👇
CAPITALCOM:NATURALGASEducation
by ProfessorSingapore
Deep Dive Into Relative Strength Index (RSI)The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder Jr. that measures the speed and magnitude of price changes. Introduction In the world of trading, timing is everything — and few indicators have stood the test of time like the Relative Strength Index (RSI). Introduced by J. Welles Wilder in 1978, the RSI is a momentum oscillator that helps traders evaluate the strength and speed of price movements. Whether you're trading stocks, forex, or crypto, understanding how RSI is calculated and how to interpret its signals can give you a critical edge. In this article, we’ll break down exactly how the RSI works, explore its formula, and dive into practical ways you can incorporate it into your trading strategies. From spotting potential reversals to identifying overbought and oversold conditions, the RSI remains a cornerstone of technical analysis — but only if you know how to use it properly. Let’s explore the mechanics and the mindset behind this powerful indicator. What Is RSI and How Is It Calculated? The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements over a defined period. It outputs a value between 0 and 100, which helps traders determine whether an asset is overbought or oversold. The default RSI setting uses a 14-period lookback window and is calculated with the following steps: 🔷Calculate the average gain and loss over the last 14 periods: Average Gain = Sum of all gains over the past 14 periods / 14 Average Loss = Sum of all losses over the past 14 periods / 14 🔷Compute the Relative Strength (RS): RS = Average Gain / Average Loss 🔷Apply the RSI formula: RSI=100−(100/(1+RS)) The result is a single number between 0 and 100 that indicates the asset's momentum. How to Use RSI in Trading Strategies ⚡️Overbought and Oversold Conditions Strategy RSI > 70 typically signals that an asset may be overbought and due for a pullback. RSI < 30 suggests the asset might be oversold, potentially primed for a bounce. However, these levels aren’t absolute sell or buy signals. In strong trends, RSI can stay overbought or oversold for extended periods. 📈Long Trading Strategy Example: 1. Identify the major trend, to find the long trades it shall be uptrend. On the screen below you can see 1D time frame for BITMART:BTCUSDT.P . 2. Move to lower time frame (in our case 4h) and find the moment when RSI falls below 30. This is our oversold condition and we are going to look for long trade. 3. Find the local support zone and open long trade. 4. Take profit when price reaches resistance level next to the previous swing high 5. Don’t forget to put initial stop loss when enter position. The best stop loss which will give you 3:1 risk to reward ratio. 📉Short Trading Strategy Example 1. Identify the major trend, to find the short trades it shall be downtrend. On the screen below you can see 1D time frame for BITMART:ETHUSDT.P . 2. Move to lower time frame (in our case 4h) and find the moment when RSI grows above 70. This is our overbought condition and we are going to look for short trade. 3. Find the local resistance zone and open short trade. 4. Take profit when price reaches support level next to the previous swing low 5. Don’t forget to put initial stop loss when enter position. The best stop loss which will give you 3:1 risk to reward ratio. ⚡️RSI Breakout Strategy RSI is breaking through 60 indicating bullish momentum shift if the long-term trend is bullish can be the potential long signal RSI is breaking down 40 indicating bearish momentum shift if the long-term trend is bearish can be the potential short signal This strategy works great only on the trending market, don’t use it on the range bounded market to avoid whiplashes. 📈Long trading strategy example: 1. Make sure that long-term trend is bullish. Use 200 period EMA as its approximation. If price remains above it we can look for potential long trade setup. 2. If RSI crossed above the level 60 open long trade. 3. Put the initial stop-loss under the signal candle’s low. 4. Take profit when price reached 3:1 risk-to-reward ratio. 📉Short trading strategy example 1. Make sure that long-term trend is bearish. Use 200 period EMA as it’s approximation. If price remains below it we can look for potential short trade setup. 2. If RSI crossed below the level 40 open short trade. 3. Put the initial stop-loss above the signal candle’s high. 4. Take profit when price reached 3:1 risk-to-reward ratio. In our case we received very fast and profitable trade ⚡️RSI Divergence Strategy RSI can be used also as a trend reversal indicator if we are looking for divergences. This is very reliable sign of current trend weakness and great opportunity open trade against the trend. Usually it’s not recommended, but in case if divergence can be applicable. Bullish divergence is the situation when price created the lower low, while RSI made the lower low. Usually, it indicates that current downtrend is weakening and we can look for long trades Bearish divergence is the situation when price created the higher high, while RSI made the lower high. Usually, it indicates that current uptrend is weakening and we can look for short trades 😎Important hint: it’s rarely covered in textbooks about technical analysis, but in our opinion it’s better to used divergences when RSI was able to cross level 50 between two lows/highs. 📈Long trading strategy example 1. Find at the chart situation, when the price made the lower low 2. At the same time RSI shall set the higher low 3. RSI shall break level 50 between these lows indicating shift to the bullish momentum 4. If price failed to set the clean breakdown open long trade on the candle which set the lower low. Put stop loss under it’s low 5. Take profit at 3:1 RR. When you master this concept, you will be able to have much more RR trades, even 10:1. This is possible because when trend finish you have the highest potential upside 📉Short trading strategy example 1. Find at the chart situation, when the price made the higher high 2. At the same time RSI shall set the lower high 3. RSI shall break level 50 between these highs indicating shift to the bearish momentum 4. If price failed to set the clean breakout open short trade on the candle which set the higher high. Put stop loss above it’s high 5. Take profit at 3:1 RR. When you master this concept, you will be able to have much more RR trades, even 10:1. This is possible because when trend finish you have the highest potential upside Conclusion The Relative Strength Index (RSI) remains one of the most powerful and flexible tools in a trader’s technical arsenal — but its real value lies in how you use it. We’ve explored three key RSI strategies: ✅ Overbought/Oversold setups offer simple entry signals in ranging markets, where price tends to revert to the mean. ✅ Breakout strategies unlock RSI’s momentum-tracking potential, helping you ride strong directional moves with confidence. ✅ Divergence detection reveals hidden shifts in market sentiment, giving you an early warning of possible reversals or trend continuations. Each approach has its strengths — and its risks — but together, they offer a complete framework for using RSI across different market conditions 🔑 Key Takeaways: RSI is not just a “buy low, sell high” tool — it’s a multi-dimensional indicator that adapts to trends, momentum, and market structure. The best RSI signals come from confluence: combining RSI with price action, support/resistance, volume, or trend filters like moving averages. Patience and discipline are essential — RSI signals are only effective when paired with proper risk management and confirmation. By mastering RSI beyond the basics, you'll be better equipped to make timely, confident, and informed trading decisions — whether you're entering a pullback, chasing a breakout, or spotting the early signs of reversal.
Education
by Skyrexio
21
#AN022: Geopolitical Tensions and Forex Pressure Hello, I'm Forex Trader Andrea Russo, and today I want to talk to you about this week's latest geopolitical tensions. 1. The Russian ruble in crisis, weakening against the USD and CNY The ruble fell 1.5% against the dollar and 0.8% against the yuan, following a US ultimatum to Moscow for an immediate truce in Ukraine. FX Impact: The ruble remains vulnerable, fueling demand for safe-haven currencies such as the USD, EUR, and CHF. Crosses against the RUB show potential technical short reversals. 2. Oil Rises: First Impacts on Energy Costs Brent prices rose 3.5% to $72.50 a barrel following the announcement of possible US sanctions on buyers of Russian oil. FX Impact: Oil-related currencies such as the CAD and NOK benefit; USD risks weakness if importing countries experience inflationary pressures. 3. Euro falls monthly for the first time, dollar strengthens The euro is in the red on a monthly basis for the first time in 2025, while the dollar benefits from cautious Fed rate expectations and the EU-US trade deal perceived as biased toward Washington. Forex Impact: EUR/USD is under structural pressure. Euro-commodity correlates (EUR/CAD, EUR/AUD) are showing signs of weakness. 4. IMF warns of US tariffs and rising global inflation In its latest report, the IMF emphasized that US tariffs are slowing global growth and fueling persistent inflationary pressures. FX Impact: Increased uncertainty favors the USD and CHF. Emerging economies and commodity-linked economies (MXN, ZAR, BRL) could weaken further. 5. India Strengthens: Growing Exports and Solid Reserves India recorded a 7.2% increase in merchandise exports and maintains stable foreign exchange reserves, demonstrating macroeconomic resilience and the resilience of the rupee. Forex Impact: The INR could strengthen or consolidate at robust levels, while USD/INR pairs signal potential support. 6. Global Digital Projects and Fragmentation of Payment Systems The adoption of alternative systems to SWIFT such as mBridge or Project Agorá reflects a push toward global financial independence. Forex Impact: The euro and dollar remain dominant, but the RMB is gaining ground in Asia-Pacific countries. RMB crosses (USD/CNH, EUR/CNH) require attention, especially from a long-term perspective.
Education
by Andrea_Russo_SwipeUP
Patience Through VolatilityThere's something the market teaches you over time that no book, course, or checklist ever really prepares you for - “how to live with uncertainty” . It's amazing how quickly the market can make you doubt yourself. You can be doing everything right - following your process, managing your risk, sticking to your plans, and then volatility hits. Suddenly, nothing seems to make sense. The moves feel random. Your setups fail. Your confidence fades. You start questioning not just your trades, but yourself. You'll have stretches where patience feels like the hardest thing in the world. Watching markets whip up and down without direction, sitting on your hands when you want to trade just to feel in control again, it's exhausting in a different way. It's not the exhaustion of doing too much. It's the weight of doing nothing when your instincts scream at you to act. That’s the part most people don’t talk about. It’s not the losing trades that break most traders, it’s the feeling of being stuck. The uncertainty of not knowing when the noise will fade. The frustration of watching opportunities slip by without a clear way to take part. It’s the slow grind of sitting through volatility while your discipline quietly wears down, day after day. Patience isn’t something you can show off. Most of the time, it looks like doing nothing. And often, it feels like falling behind. Good trading isn't about finding opportunities in every move, it's about knowing when the market favours you, and when it doesn't. It's about understanding your edge and protecting it. Some environments aren't built for your system, your style, or your strengths. Volatile markets don't offer you clean setups or easy entries. They offer noise, confusion, and temptation. Most traders don’t struggle because of volatility itself, but because of the impatience it creates. They force trades. They chase moves. They try to squeeze something out of the market simply because the waiting feels unbearable. But waiting is not a weakness. Sitting still is not inaction. Restraint is a skill. Your progress won’t always be visible. It won’t always show up on a chart at the end of the day. Sometimes, progress is simply preserving your capital. Sometimes, it’s maintaining your discipline. And sometimes, it’s protecting your mindset so you’re ready when the right opportunities finally come back into focus. You have to learn to stomach the discomfort of volatility without tying your self-worth to every swing in your account. The noise always feels permanent in the moment. Doubt grows louder. You start questioning your system, your progress, and even yourself. (More on this in a future post.) That's normal. What matters is what you do with those feelings. Whether you let them push you into reckless trades just to feel something again, or whether you have the maturity to sit still, protect your capital, protect your mindset, and wait. There’s no hack for this. No shortcut. Patience is something you earn the hard way - forged in boredom, frustration, and the silence between trades. Patience isn’t about passively waiting; it’s about actively protecting yourself, your energy, your future self from the damage you could cause today. Not every moment in the market is meant for action. Not every day is meant for progress. Some days, weeks, or even months are simply about survival. Some seasons are for growth, and others are just for holding on. Knowing the difference is what keeps you in the game long enough to eventually see the rewards. The market will calm. Patterns will return. Opportunities will align. Your edge will reappear. The chaos always fades. The clarity always returns. When it does, you want to be ready - not emotionally drained, not financially wrecked, and not scrambling to recover from the mistakes impatience forced on you. But if you lose patience and start chasing just to feel active, you risk more than money. You risk undoing the very discipline you’ve worked so hard to build. Volatility will always test you. That's its nature. Patience will always protect you. That's your choice. If you’re in one of those stretches right now - high volatility, failing setups, doubt creeping in; remind yourself this is part of the process. It’s normal, and it’s not the time to force progress. Let the market burn itself out. If you can do that, you’ll find yourself ahead, not because you forced results, but because you endured the pain when others couldn’t. The rewards won’t come from predicting the next move. They’ll come from knowing you didn’t let the storm in the market create a storm within you. Trust that clarity will return. Your only job is to make sure you’re still here when it does. There’s strength in waiting. There’s wisdom in restraint.
OANDA:XAUUSDEducation
by johntradingwick
20
Swing & Positional Trading and Stock Options Setup _ High Beta✅ Final Setup for Positional and Swing Trades (High Beta Liquid Stocks for Cash and Options) This trading guide outlines a simple and effective setup for both positional and swing trades, focused on high beta, highly liquid stocks. Follow the rules strictly for better consistency and profitability. 🔹 Positional Trade Setup Chart Setup: • Open the Monthly Chart of the stock. • Add the RSI (Relative Strength Index) indicator. • Uncheck all levels (30, 50, 70) and only keep one level at 60. • Edit the level from 70 to 60 and highlight it in green. Entry Criteria: • Stock must cross the 60 RSI level on the monthly chart. • Entry is only triggered if the price breaks the previous month's high. Stop Loss: • Place the initial stop loss below the previous month's low. Trailing Stop Loss: • Trail the stop loss to the current month’s low, but only after the monthly candle closes. • Continue trailing the stop loss every month using this method until exit. Exit Rule: • Exit the positional trade only if the current month’s candle closes below the previous month’s low. ⚡ Note: The RSI 60+ setup is a powerful momentum strategy with high reward probability. 🔹 Swing Trade Setup Precondition: • Monthly RSI must cross above the 60 level. • Switch to the Daily Chart of the stock. • Entry Criteria: • Identify the current swing high on the daily chart. • Entry is triggered only when the stock breaks the swing high. Stop Loss: • Place the stop loss below the current swing low. • If unsure how to mark swing low, then use a daily close below RSI 60 as your stop. Trailing Stop Loss: • If the trade moves in your favor, trail the stop loss to each day’s low. Exit Rule: • Exit the swing trade only if RSI crosses back below 60 with a daily candle close. 🔥 Stock Options Trading Strategy – Built on Core Swing/Positional Principles (75% Win Rate Setup) I’m now sharing a Stock Options Trading Concept that follows the same core principles but is tailored specifically for liquid stock options. For this strategy, you will strictly focus only on those High Beta Liquid Stocks provided below- ✅ Strategy Setup 🔹 Timeframe Filters: • Monthly RSI > 60 (RSI has crossed and is holding above 60) • Weekly RSI > 60 (same condition as above) • Daily RSI: RSI must be crossing 60 or on the verge of crossing Now, on the Daily Chart, mark the current swing high and swing low. 📌 Two Entry Approaches: Approach 1: Breakout Entry • Entry: When swing high is broken. • Stop Loss (SL): Swing low or previous week’s low. Approach 2: Pullback Entry • Wait for a retracement from swing high (should not exceed 50% retracement). • Confirmation of pullback weakness: Volume bars should be shrinking/decreasing. • Entry: On breakout of the last candle high of the pullback. • Stop Loss: Swing low or previous week’s low. Once in the trade, trail your stop loss to cost after 3 consecutive bullish candles. 📤 Exit Rules • Exit the Stock Options position only if the Daily RSI closses below 60 level. ⚠️ Important Guidelines for Stock Options • 💡 Trade with only 1 lot. Never exceed your lot size. • 📅 Enter after 2 days of the monthly expiry and exit before 2 days of next monthly expiry to avoid smart money manipulation. • 🎯 Choose strike prices in multiples of 25, 50, 75, or 100 for better liquidity. Example: If stock is at 1564, choose 1550 ITM or 1575 ATM. • ⏱️ For quick exits, always place exit orders at round numbers like 5 or 10 levels. • Example: If you entered at ₹70 and the option is at ₹144, place an exit at ₹140 or ₹145—not any random price. For PE buying- Monthly RSI < 40 Weekly RSI < 40 Daily RSi crossing 40 or below Same process for PE with 2 approach as you like but in reverse form. 📊 75 High-Beta, Highly Liquid NSE Stocks These stocks are liquid, fundamentally strong, and mostly traded in the F&O segment — giving you both flexibility and depth. 🚗 Auto • Bajaj Auto • Bosch Ltd • Eicher Motors • Hero Motocorp • Maruti Suzuki • TVS Motors • Tata Motors 🏦 Banking & Financial Services • Bank of Baroda • Kotak Mahindra Bank • Axis Bank • ICICI Bank • HDFC Bank • IndusInd Bank • Bajaj Finserv • Bajaj Finance • SBI 🧪 Chemicals • Aarti Industries • Atul Ltd • Navin Fluorine • UPL • Tata Chemicals 🍫 FMCG • Britannia Industries • Godrej Consumer • Tata Consumer • DMart • Hindustan Unilever • Dabur 💊 Pharma & Healthcare • Apollo Hospitals • Alkem Labs • Biocon • Divis Labs • Dr. Reddy’s • IPCA Labs • Laurus Labs • Lupin • Aurobindo Pharma • Sun Pharma • Cipla 💻 IT Sector • HCL Technologies • Infosys • LTIMindtree • TCS • Tech Mahindra • Wipro ⛓️ Steel & Metals • APL Apollo Tubes • JSW Steel • Jindal Steel • Tata Steel • Hindalco • L&T 🛢️ Oil & Gas • Reliance Industries • Gujarat Gas • Indraprastha Gas (IGL) • Mahanagar Gas (MGL) • Tata Power 🏢 Realty • DLF Ltd • Godrej Properties • Lodha (Macrotech Developers) • Oberoi Realty • Phoenix Mills 🛋️ Durables & Others • Sona BLW (Sona Comstar) • Amber Enterprises • Bata India • Crompton Greaves • Dixon Technologies • Titan Company • ACC Cement • Ambuja Cement • Ultratech Cement • Voltas Ltd • Polycab India • Mazagon Dock (Mazdock) • Asian Paints • Berger Paints 📝 Final Thoughts This is not just a strategy — it’s a framework to reprogram your trading mindset. Use higher timeframes, respect structure, and focus only on high-probability setups. You’re not here for noise. You’re here for moves that matter. If this helped you, prepare a trading journal based on this strategy. Stay focused. Be consistent. Trade less, but trade right. Midcap and Small cap stocks are only used for Positional Trading Long Setup for longer periods ex 6 months to a year.
NSE:INFYEducation
by SwingAcademy
XAUUSD 5M SUPPLY SETUPDuring the Asia-to-London session, price was in a clear uptrend, printing higher highs. However, in the pre-New York session, momentum shifted , price failed to break the recent high and instead formed a new low, eventually breaking structure with a lower low and confirming a trend reversal. This move left a clean supply zone behind. Price later retraced to that supply zone and showed strong rejection with a clear wick reaction, signaling potential selling pressure. I waited for the candle break and entered short, placing stops above the highest wick within the zone. Targeted a 1:2 R:R. Price consolidated briefly but eventually hit target, securing profits and wrapping up the session with discipline and precision.
OANDA:XAUUSDEducation
by k8niel
How Do Traders Use the Pivot Points Indicator? How Do Traders Use the Pivot Points Indicator? Pivot points are a popular technical analysis tool for spotting areas where the price is expected to react, i.e. pause or reverse. Calculated using the previous day’s high, low, and close, they’re projected onto the current session to highlight potential support and resistance levels, especially useful for intraday traders. Alongside stock charts, pivot point levels can be used in a wide variety of markets, including forex, commodities, and cryptocurrencies*. As a versatile indicator, pivot points also come in many different types. This article breaks down the definition of pivot points, the variations traders use, and how they can fit into a broader trading strategy. A Deeper Look at Pivot Points A common question in technical analysis is, “What is a pivot point?” Pivot points trading, or pivot point theory, is a popular technical analysis concept used in a range of financial asset classes, including stocks, currencies, cryptocurrencies*, and commodities. The indicator assists traders in gauging overall market trends and determining possible support and resistance barriers. How to Read Pivot Points The pivot point indicator is static—it’s an average of the high, low, and close prices from the previous trading day. It includes three levels: pivot point (P), support (S), and resistance (R). If the price is above the pivot point, it is supposed to target resistance barriers. Conversely, if it’s below the pivot, it could move to support levels. Thus, support and resistance levels serve as targets or stop-loss zones. They remain constant throughout the period, enabling traders to plan ahead. In the EURUSD daily chart below, the price is trading above R2; therefore, market sentiment is assumed to be bullish. R3 indicates the next possible price target. Should a shift below P occur, bearishness arises, and S1 becomes the upcoming support level. Pivots are widely used with trend indicators such as moving averages and Fibonacci tools. In the chart below, Fibonacci retracements could be used to identify intermediate levels of support and resistance within widely placed pivots. How to Calculate Pivot Points? There are four key types of pivots, including standard, Woodie’s, Camarilla, and Fibonacci. While there’s no need to use a pivot points calculator—they’re calculated automatically when implemented on a price chart—it is worth looking at their formulas to understand how they differ from each other. Note the labels for the following formulas: P = pivot point H = high price L = low price C = close price Standard Pivot Points Traders commonly use standard pivot points. Traditional pivots (P) identify potential levels of support (S) and resistance (R) by averaging the previous trading period's high, low, and close prices. P = (H + L + C) / 3 S1 = (2 * P) - H S2 = P - (H - L) R1 = (2 * P) - L R2 = P + (H -L) Although they are popular among traders, they can produce false signals and lead to incorrect trades in ranging markets and during periods of high volatility. Woodie’s Pivot Points Woodie's pivots are similar to standard pivots but include a slight modification to the calculation. In Woodie's method, the close price is assigned more weight. P = (H + L + 2 * C) / 4 R1 = (2 * P) - L R2 = P + H - L S1 = (2 * P) - H S2 = P - H + L However, their extra sensitivity can make them less reliable during choppy markets or when the price lacks a clear direction. Camarilla Pivot Points Camarilla pivots use a set formula to generate eight levels: four support and four resistance. They are based on the previous day’s close and range and multiplied by a certain multiplier. The inner levels (R3 and S3) often act as reversal zones, while R4 and S4 are watched for breakouts. Still, in trending markets, the reversals can fail frequently. R4 = C + (H - L) x 1.5 R3 = C + (H - L) x 1.25 R2 = C + (H - L) x 1.1666 R1 = C + (H - L) x 1.0833 P = (High + Low + Close) / 3 S1 = C - (H - L) x 1.0833 S2 = C - (H - L) x 1.1666 S3 = C - (H - L) x 1.25 S4 = C - (H - L) x 1.5 Fibonacci Pivot Points Fibonacci pivot points are based on the Fibonacci sequence, a popular mathematical concept in technical analysis. They are calculated in the same way as the standard indicator. However, the levels of support and resistance are determined by including the Fibonacci sequence with a close monitoring of the 38.2% and 61.8% retracement levels as the primary price points. P = (High + Low + Close) / 3 S1 = P - (0.382 * (H - L)) S2 = P - (0.618 * (H - L)) R1 = P + (0.382 * (H - L)) R2 = P + (0.618 * (H - L)) Despite their popularity, Fibonacci pivots can become less reliable when the price reacts to other fundamental drivers. Trading with the Pivot Points Although every trader develops their own trading approach, there are common rules of pivot point trading that are expected to improve their effectiveness. Day Trading Day trading with pivot points is usually implemented for hourly and shorter intraday timeframes. As pivot levels are updated daily and calculated on the previous day's high, low, and close prices, this allows traders to react promptly to market changes and adjust their strategies. Some traders prefer Camarilla pivots as their calculation takes into account the volatility of the previous trading period to produce pivot levels closer to the current price. Medium-Term Trading When looking at a medium-term analysis, weekly pivot levels are added to four-hour and daily charts. These are calculated using the previous week's high, low, and close prices, which remain unchanged until the start of the next week. Long-Term Trading For longer-term analysis, traders use monthly pivots on weekly charts. These levels, gathered from the previous month's data, offer a broader picture of market trends and price movements over time. Pivot Point Trading Strategies The pivot points indicator is typically used in two ways – breakout and reversal trading. Breakout Trading Strategy The breakout approach seeks to take advantage of market momentum by entering trades when prices break above or below significant levels of support and resistance. - Bullish Breakout. When levels P and R1 are broken, and the price closes above either, it’s more likely a rise will occur. - Bearish Breakout. When levels P and S1 are broken, and the price closes below either, it’s more likely the price fall will occur. Strong momentum and high volume are two critical factors needed for a solid price movement in both cases. Trading Conditions If a breakout is confirmed, traders enter a trade in the breakout direction. A take-profit target might be placed at the next pivot level. A stop-loss level can be placed beyond the previous level or calculated according to a risk/reward ratio. Traders continuously monitor their trades and adjust their stop-loss levels to lock in potential returns if prices move in their favour. Reversal Trading Strategy The reversal strategy seeks to take advantage of a slowdown in market momentum by entering trades when prices stall at significant levels of support or resistance. - Bullish Reversal. When levels S1 and S2 are not broken and the price stalls above either, a reversal is more likely to occur. - Bearish Reversal. When levels R1 and R2 are not broken and the price stalls below either, a reversal is expected to happen. Note: Reversals are always confirmed by another indicator or a chart pattern. Trading Conditions If a reversal is confirmed, traders consider entering a trade in its direction. The next level may be a take-profit target, which might be trailed to the next level if the market conditions signal a continuation of a price move. A stop-loss level is typically placed below a swing low or above a swing high, depending on the trade direction. Pivot Points and Other Indicators While pivots show where the price may reverse, there’s nothing to say a market won’t trade through these areas. Therefore, traders typically pair them with other technical indicators and patterns. Candlestick and Chart Patterns Traders often combine levels with specific reversal candlestick formations, like three black crows/three white soldiers or engulfing patterns, to confirm a change in market movements. For example, a bullish engulfing candle forming at S1 could reinforce the idea of a reversal at that level. Moving Averages When a pivot aligns with a major moving average, e.g. the 50-period or 200-period EMA, it strengthens the area. As moving averages act as dynamic support and resistance levels, an overlap can signal a strong area where a reversal might occur. RSI and Stochastic Oscillator Momentum indicators like RSI or Stochastic help judge whether the price is likely to bounce or break through a pivot. If it hits support and RSI is oversold, that adds conviction. But if momentum is still strong in one direction, it might get ignored. Considerations Even with strong confluence, these combinations can fail. Markets don’t always respect technical alignment, especially around data releases or sharp movements in sentiment. For instance, in stocks, pivot points may be ignored if an earnings release strongly beats analyst estimates. Instead, they are believed to work when treated as one piece of a broader technical framework. Limitations Pivot points are widely used, but like any tool, they have flaws. They’re based purely on past price data, so they don’t account for news, sentiment shifts, or broader market context. - False signals in ranging markets: The price often oscillates around pivot zones in markets without a clear direction, meaning setups might not follow through. - Less reliable during strong trends: In trending conditions, the price can blow past several levels without reacting. - No built-in volatility filter: The points don’t adapt to changing volatility, so levels might be too close or too far apart to be useful. - Lag in real-time shifts: Since pivots are pre-calculated, they don’t adjust mid-session as new data emerges. Final Thoughts Pivot points are widely used in stock trading as well as in commodity, cryptocurrency*, and currency markets. While they can be useful tools, their limitations cannot be overlooked. It is essential to conduct a comprehensive analysis and confirm the indicator signals with fundamental and technical analysis tools. FAQ What Is a Pivot Point in Trading? The pivot point meaning refers to a technical analysis tool used to identify potential support and resistance levels. It’s calculated using the previous day’s high, low, and close prices, and helps traders find areas where the price may react during the current session. What Is the Best Indicator for Pivot Points? There isn’t one best indicator, but traders often pair pivot points with moving averages, RSI, or candlestick patterns to confirm a potential reversal. The most effective setup usually depends on the strategy and market conditions. What Are the Pivot Points’ R1, R2, and R3? R1, R2, and R3 are resistance levels above the central point. They represent increasingly stronger potential resistance zones where the price may stall or reverse. Which Is Better, Fibonacci or Camarilla? Fibonacci offers wider levels based on retracement ratios, useful in trending markets. Camarilla focuses on tighter reversal zones, which are mostly used for intraday strategies. Each suits different trading styles; neither is objectively better. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Thea **Cup and Handle** pattern✨ **Imagine the market serving profits in a teacup!** Thea **Cup and Handle** pattern isn’t just a technical term—it’s the market whispering, *“Get ready for liftoff!”* Let’s break it down in an engaging way: ### ☕ The Cup - Picture a graceful drop in price that curves back up, forming a U-shape. - It’s like the market takes a sip, then refills—symbolizing recovery and building strength. ### 🛠️ The Handle - After the cup fills, the price dips slightly again, forming a small slope downward. - This is the “handle”—a moment of consolidation, often with lower trading volume. - It’s the calm before the bullish storm. ### 💡 Bullish Signal - When the price **breaks above the handle’s resistance**, it’s like the market pulls the trigger. - This signals a potential buying opportunity as the trend resumes upward. ### 📆 Duration - The cup can take weeks or even months to form, while the handle is shorter and more subtle. - Patience pays off, as the breakout often leads to explosive momentum. --- 🏆 *Want proof?* Check the comments—one of our past trades using this exact pattern scored a massive win of **100,000 pips**! 🚀 Technical analysis isn’t just charts and numbers—it’s decoding the market’s rhythm.
Education
by Elrouby
1
Option Chain AnalysisTable of Contents Introduction to Option Chain What Is an Option Chain? Key Components of an Option Chain Call vs. Put Options in the Chain How to Read an Option Chain Open Interest (OI) Analysis Implied Volatility (IV) Analysis Strike Price Selection Support and Resistance Levels from Option Chain Option Chain for Intraday & Swing Trading 1. Introduction to Option Chain In the world of options trading, success is not just about buying calls or puts randomly—it’s about understanding market data. One of the most important tools for analyzing this data is the Option Chain. Whether you're a beginner or an advanced trader, mastering option chain analysis can help you identify market sentiment, key levels, and trading opportunities. 2. What Is an Option Chain? An Option Chain, also known as an Options Matrix, is a tabular representation of all available option contracts (both Call and Put) for a particular underlying asset—like Nifty, Bank Nifty, Reliance, TCS, etc.—for a specific expiry date. It shows: Strike prices Premiums (Prices) Open interest (OI) Volume Implied volatility (IV) Bid/ask prices Think of it like a menu card for options, showing all the possible trades you can take, and key stats about each. 3. Key Components of an Option Chain ✅ Strike Price: The price at which you can buy (Call) or sell (Put) the underlying asset. ✅ Premium (LTP): The last traded price (LTP) of the option. ✅ Open Interest (OI): The number of open contracts for a strike price. Indicates trader interest. ✅ Change in OI: The change in open positions compared to the previous day. ✅ Volume: The number of contracts traded in the current session. ✅ Implied Volatility (IV): Market's expected volatility of the underlying asset. 4. Call vs. Put Options in the Chain In every option chain, you’ll see two sections: Call Options (Left side) Put Options (Right side) Bullish expectation Bearish expectation Buy if expecting upside Buy if expecting downside Sell if expecting sideways/down Sell if expecting sideways/up Usually, the middle column contains strike prices, with Call data on the left and Put data on the right. 5. How to Read an Option Chain Let’s take an example: Assume Nifty is trading at 22,200. You look at the Nifty option chain. You’ll see multiple rows of strike prices (e.g., 22,000, 22,100, 22,200…) and for each, data like LTP, OI, IV. Look for: ATM (At-the-money): Closest strike to the current price (22,200). ITM (In-the-money): For calls, strikes < spot; for puts, strikes > spot. OTM (Out-of-the-money): For calls, strikes > spot; for puts, strikes < spot. Example: 22,200 is ATM. 22,100 Call is ITM. 22,300 Call is OTM. 6. Open Interest (OI) Analysis OI is one of the most powerful indicators in option chain analysis. It shows where traders are placing their bets. ✔️ What to Look For: High OI = Strong interest at that strike. Increase in OI = New positions being added. Decrease in OI = Positions being closed. ✔️ Interpretations: High OI in Call → Resistance level. High OI in Put → Support level. Let’s say: 22,500 Call has 30 lakh OI → Strong resistance. 22,000 Put has 35 lakh OI → Strong support. This gives you the trading range of Nifty: 22,000 to 22,500. 7. Implied Volatility (IV) Analysis IV represents the market's future expectations of volatility. Higher IV means higher premiums. ✔️ Why IV Matters: When IV is high, options are expensive. When IV is low, options are cheaper. ✔️ Practical Use: Sell options when IV is very high (premium is inflated). Buy options when IV is low (premium is cheap). 8. Strike Price Selection Choosing the right strike is key for successful trading. ✔️ For Buying Options: Buy slightly ITM for better delta and time value. ATM works for short-term, fast movements. ✔️ For Selling Options: Sell OTM options with high OI and low IV. ✔️ Tip: Always check the OI and IV before choosing a strike. Avoid illiquid strikes (with low OI or volume). 9. Support and Resistance Levels from Option Chain You can spot support and resistance based on OI data. ✔️ Support: Strike where Put OI is highest. E.g., 22,000 Put with highest OI = Support zone. ✔️ Resistance: Strike where Call OI is highest. E.g., 22,500 Call with highest OI = Resistance zone. This helps you create a trading range. 10. Option Chain for Intraday & Swing Trading ✅ Intraday Trading: Watch change in OI during live market. Spike in Call OI → Possible resistance forming. Spike in Put OI → Possible support forming. ✅ Swing Trading: Analyze overall OI trend. Look at monthly expiry data. Identify positional buildup or unwinding.
BSE:SENSEXEducation
by TechnicalExpress
Risk Management in Options TradingTrading options can be exciting and rewarding—but it's also full of risks. Without proper risk management, even the best strategies can lead to heavy losses. In this comprehensive guide, we'll dive deep into how to manage risk in options trading, covering everything from the basics to advanced techniques. 1. Understanding Risk in Options Trading Before we dive into managing risk, it’s crucial to understand where risk comes from in options trading. Options are complex instruments that behave differently than stocks. The key sources of risk include: A. Price Movement (Delta Risk) When the price of the underlying stock moves up or down, the value of the option changes. This is known as Delta risk. A call option gains value when the stock goes up, and a put gains value when it goes down. B. Time Decay (Theta Risk) Options lose value over time. Even if the stock price doesn’t move, the option could still lose value as the expiration date approaches. This is known as Theta decay or time decay. C. Volatility (Vega Risk) Volatility reflects how much a stock moves. High volatility increases an option's premium. But if implied volatility falls, the value of your option might drop—even if your price prediction is correct. D. Interest Rates and Dividends (Rho and Dividend Risk) Although less impactful, interest rates and dividend changes can also influence option prices. These are more important for longer-dated options. 2. Why Is Risk Management Critical in Options? Options give traders leverage—a small investment can control a large position. While this magnifies profits, it also increases losses. Many beginners fall into the trap of chasing big gains, only to blow up their accounts when trades go wrong. Good risk management doesn’t eliminate risk—it helps you survive bad trades and stay in the game long enough for your edge to work. 3. Core Principles of Options Risk Management Here are the foundational principles every options trader should follow: A. Never Risk More Than You Can Afford to Lose It sounds obvious, but many traders ignore this. Only use disposable capital, not money meant for rent, bills, or emergencies. B. Position Sizing This is one of the most powerful tools in risk management. Don’t bet your entire capital on a single trade. A common rule is to risk 1-2% of your capital on any trade. That way, even a string of losing trades won’t wipe you out. C. Diversify Your Trades Avoid putting all your trades on the same stock or sector. Diversification can reduce risk from unexpected news events or market shocks. D. Know Your Maximum Loss Before entering any trade, calculate your maximum potential loss. With long calls and puts, your loss is limited to the premium paid. But with short options or complex strategies like spreads, losses can be higher or even unlimited. 4. Practical Risk Management Techniques A. Use Stop-Loss Orders (Where Applicable) While options don’t always behave like stocks, you can still set a mental or physical stop-loss based on: Percentage loss (e.g., exit if the option loses 50%) Underlying price level (e.g., exit if stock breaks below a key level) Time decay (e.g., exit 5 days before expiration to avoid Theta crush) ❗ Note: Stop-losses can be tricky with options because of wide bid-ask spreads. It’s important to use limit orders or mental stops to avoid slippage. B. Avoid Naked Options (Especially Selling) Selling naked calls or puts can expose you to unlimited risk. Unless you have a large account and full understanding, stick to defined-risk strategies like: Spreads (credit/debit) Iron condors Butterflies Covered calls Protective puts C. Hedge Your Positions Hedging is like buying insurance. You can reduce risk by combining options in a way that limits losses. Example: If you sell a naked put, you can turn it into a bull put spread by buying a lower strike put. This limits your downside if the stock crashes. D. Use Probability and Greeks Understanding the "Greeks" can help you analyze risk exposure: Greek What it Measures Risk Managed Delta Price sensitivity Directional risk Theta Time decay Time-related loss Vega Volatility impact Volatility exposure Gamma Delta’s change rate Acceleration of price impact Rho Interest rate impact (minor risk) Knowing your Greeks allows you to adjust trades when risks become too high. 5. Options Strategies for Risk Management Some strategies are naturally more “risky,” while others are designed to limit downside. Let’s look at popular risk-managed strategies: A. Covered Call You own 100 shares of a stock and sell a call option. This gives you income (premium) and limits upside risk. Risk: Stock falls Reward: Premium + upside to strike price B. Protective Put You buy a put while holding the stock. It protects you from downside losses, like insurance. Risk: Cost of put (premium) Reward: Unlimited upside; limited downside C. Vertical Spreads (Credit and Debit) These involve buying and selling options at different strikes. Bull Call Spread: Buy call + sell higher call Bear Put Spread: Buy put + sell lower put Both strategies have limited risk and reward, making them ideal for risk-conscious traders. D. Iron Condor You sell a call spread and a put spread on the same stock. Profitable when the stock stays in a defined range. Risk: Limited to width of spread minus premium Reward: Net credit received This is a great strategy for sideways markets and offers good risk/reward if managed well. 6. Managing Risk Over Time A. Adjusting Trades If a trade moves against you, you don’t always have to take the loss. You can: Roll the option to a later expiration Adjust strikes to collect more credit or redefine risk Convert to a spread or different strategy However, be careful not to over-manage trades, which can lead to complex and risky positions. B. Avoid Trading Around Events Earnings announcements, Fed meetings, and budget declarations can cause huge volatility spikes. Option premiums are often inflated before such events. If you trade them, keep position size small and use defined-risk trades only.
NSE:HDFCBANKEducation
by TechnicalExpress
Options Trading Strategies: From Simple to AdvancedPart 1: The Basics of Options Before diving into strategies, let’s review the two core types of options: 1. Call Option (CE) Gives the buyer the right (but not the obligation) to buy an underlying asset at a predetermined price (strike price) within a specific time period. Bullish in nature. 2. Put Option (PE) Gives the buyer the right (but not the obligation) to sell an underlying asset at a predetermined price within a specific time period. Bearish in nature. Each option has a premium (price you pay to buy the option), and that’s the maximum loss a buyer can face. Sellers (or writers), on the other hand, receive the premium but take on higher risk. Part 2: Simple Options Strategies These are basic strategies suitable for new traders. 1. Buying a Call Option (Long Call) When to Use: If you expect the stock/index to rise significantly. Risk: Limited to the premium paid. Reward: Unlimited potential profit. Example: Stock XYZ is trading at ₹100. You buy a 105 Call Option at ₹2 premium. If stock moves to ₹115: Intrinsic Value = ₹10 Profit = ₹10 - ₹2 = ₹8 per share Why It’s Good: Cheap entry, high upside. 2. Buying a Put Option (Long Put) When to Use: If you expect the stock/index to fall. Risk: Limited to the premium paid. Reward: High if stock crashes. Example: You buy a 95 PE when stock is at ₹100, and premium is ₹3. If stock falls to ₹85: Intrinsic Value = ₹10 Profit = ₹10 - ₹3 = ₹7 per share Why It’s Good: Good for bearish bets or portfolio hedging. 3. Covered Call When to Use: You own the stock and expect neutral to moderately bullish movement. Risk: Limited upside potential. Reward: Premium + stock movement (if not called away). Example: You own 100 shares of XYZ @ ₹100. You sell 110 CE for ₹5. If stock rises to ₹110, you sell at that level and keep ₹5 premium. If it stays below ₹110, you keep the shares + premium. Why It’s Good: Generates income from stocks you hold. 4. Protective Put When to Use: You own a stock and want downside protection. Risk: Limited downside. Reward: Unlimited upside. Example: Own 100 shares of XYZ @ ₹100. Buy a 95 PE at ₹3. If stock drops to ₹85, your put becomes worth ₹10, offsetting losses. Why It’s Good: Acts like insurance on your holdings. Part 3: Intermediate Strategies Once you’re comfortable with buying/selling calls and puts, it’s time to explore neutral and range-bound strategies. 5. Bull Call Spread When to Use: You expect a moderate rise in the stock/index. Risk: Limited. Reward: Limited. Structure: Buy 100 CE at ₹5 Sell 110 CE at ₹2 Net Cost: ₹3 Max Profit: ₹10 - ₹3 = ₹7 Max Loss: ₹3 Why It’s Good: Lower cost than buying a call outright. Part 4: Risk Management Tips Never deploy a strategy you don’t understand. Use stop-loss and position sizing to avoid blowing up capital. Be aware of Greeks (Delta, Theta, Vega) — they drive profits/losses. Avoid naked options selling unless you have enough margin and experience. Always review IV (Implied Volatility) before placing straddles or condors. Understand expiry effects — options lose value faster as expiry nears. Part 5: Real-Life Example Let’s say Nifty is trading at 22,000. You expect no major movement till expiry. You execute an Iron Condor: Sell 22100 CE at ₹100 Buy 22300 CE at ₹40 Sell 21900 PE at ₹90 Buy 21700 PE at ₹30 Net Credit = ₹100 - ₹40 + ₹90 - ₹30 = ₹120 Max Loss = Spread width (200) - Net Credit = ₹80 If Nifty stays between 21900 and 22100 — all options expire worthless and you earn full ₹120. Conclusion Options trading is like a chess game — it's not only about direction, but also timing, volatility, and strategy structure. Simple strategies like buying calls and puts are perfect for starters, but intermediate and advanced strategies allow you to profit in any kind of market — bullish, bearish, or neutral. The key lies in choosing the right strategy for the right market condition, managing risks, and being patient. Whether you're hedging your portfolio, generating income, or speculating on big market moves, options provide the tools — but it’s your responsibility to use them wisely. If you’d like charts, payoff diagrams, or examples using live data (like Bank Nifty or stocks), let me know and I can include those too!
NSE:BANKNIFTYEducation
by TechnicalExpress
Basics of Options: Calls and PutsWhat are Options? An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset (like a stock or index) at a specific price, on or before a specific date. Think of it like booking a movie ticket. You reserve the right to watch a movie at a particular time and seat. But if you don’t go, it’s your choice. You lose the ticket price (premium), but you're not forced to go. Options work similarly. Options are of two basic types: Call Option Put Option Let’s break both down in detail. 1. What is a Call Option? A Call Option gives the buyer the right (but not the obligation) to buy the underlying asset at a pre-decided price (called the strike price) on or before a certain date (called the expiry date). When do traders buy a Call Option? When they believe the price of the underlying stock or index will go up in the future. Example of Call Option (Simple Case) Let’s say you are bullish on Reliance Industries stock, which is currently trading at ₹2,500. You buy a Call Option with: Strike Price: ₹2,550 Premium Paid: ₹30 per share Lot Size: 250 shares Expiry: Monthly expiry (say end of the month) You believe Reliance will go up beyond ₹2,550 soon. If it goes to ₹2,600 before expiry: Your profit per share = ₹2,600 (market price) - ₹2,550 (strike price) = ₹50 Net Profit = ₹50 - ₹30 (premium) = ₹20 per share Total Profit = ₹20 x 250 = ₹5,000 But if Reliance stays below ₹2,550, say at ₹2,500 on expiry, you won’t exercise the option. You lose only the premium (₹30 x 250 = ₹7,500). Key Terminologies in Call Options In the Money (ITM): When the stock price is above the strike price. At the Money (ATM): When the stock price is equal to the strike price. Out of the Money (OTM): When the stock price is below the strike price. 2. What is a Put Option? A Put Option gives the buyer the right (but not the obligation) to sell the underlying asset at a pre-decided price (strike price) on or before the expiry. When do traders buy a Put Option? When they believe the price of the underlying stock or index will fall in the future. Example of Put Option (Simple Case) Assume HDFC Bank is trading at ₹1,600. You are bearish and expect it to fall. You buy a Put Option with: Strike Price: ₹1,580 Premium: ₹20 per share Lot Size: 500 shares Expiry: Monthly If HDFC Bank falls to ₹1,520: You can sell at ₹1,580 even though market price is ₹1,520 Gross profit per share = ₹60 Net profit = ₹60 - ₹20 = ₹40 per share Total profit = ₹40 x 500 = ₹20,000 If HDFC stays above ₹1,580, your put expires worthless. You lose only the premium (₹10,000). Key Terminologies in Put Options In the Money (ITM): Stock price below strike price. At the Money (ATM): Stock price = strike price. Out of the Money (OTM): Stock price above strike price. Who are the Two Parties in an Option Contract? 1. Option Buyer (Holder) Pays the premium Has rights, but not obligations Can exercise the option if profitable Loss is limited to the premium paid 2. Option Seller (Writer) Receives the premium Has obligation to fulfill the contract if the buyer exercises Risk is unlimited for call writers and limited for put writers (if stock price becomes zero) Profit is limited to the premium received Difference between Call and Put Options (Summary Table) Feature Call Option Put Option Buyer’s Expectation Bullish (price will go up) Bearish (price will go down) Right Buy at strike price Sell at strike price Profit Potential Unlimited Limited (until price reaches zero) Risk (for buyer) Limited to premium Limited to premium Seller’s Role Sells call & hopes price won’t rise Sells put & hopes price won’t fall Premium and What Influences It? The premium is the price you pay to buy an option. This is influenced by: Intrinsic Value: Difference between market price and strike price Time Value: More days to expiry = higher premium Volatility: Higher the volatility = higher the premium Interest Rates and Dividends What is Strike Price and Expiry? Strike Price: The price at which you can buy (call) or sell (put) the underlying stock Expiry: The last date till which the option is valid. In India: Weekly expiry for Nifty, Bank Nifty, and FINNIFTY Monthly expiry for stocks
NSE:NIFTYEducation
by TechnicalExpress
Trading as a Probabilistic ProcessTrading as a Probabilistic Process As mentioned in the previous post , involvement in the market occurs for a wide range of reasons, which creates structural disorder. As a result, trading must be approached with the understanding that outcomes are variable. While a setup may reach a predefined target, it may also result in partial continuation, overextension, no follow-through, or immediate reversal. We trade based on known variables and informed expectations, but the outcome may still fall outside them. Therefore each individual trade should be viewed as a random outcome. A valid setup could lose; an invalid one could win. It is possible to follow every rule and still take a loss. It is equally possible to break all rules and still see profits. These inconsistencies can cluster into streaks, several wins or losses in a row, without indicating anything about the applied system. To navigate this, traders should think in terms of sample size. A single trade provides limited insight, relevant information only emerges over a sequence of outcomes. Probabilistic trading means acting on repeatable conditions that show positive expectancy over time, while accepting that the result of any individual trade is unknowable. Expected Value Expected value is a formula to measure the long-term performance of a trading system. It represents the average outcome per trade over time, factoring in both wins and losses: Expected Value = (Win Rate × Average Win) – (Loss Rate × Average Loss) This principle can be demonstrated through simulation. A basic system with a 50% win rate and a 1.1 to 1 reward-to-risk ratio was tested over 500 trades across 20 independent runs. Each run began with a $50,000 account and applied a fixed risk of $1000 per trade. The setup, rules, and parameters remained identical throughout; the only difference was the random sequence in which wins and losses occurred. While most runs clustered around a profitable outcome consistent with the positive expected value, several outliers demonstrated the impact of sequencing. When 250 trades had been done, one account was up more than 60% while another was down nearly 40%. In one run, the account more than doubled by the end of the 500 trades. In another, it failed to generate any meaningful profit across the entire sequence. These differences occurred not because of flaws in the system, but because of randomness in the order of outcomes. These are known as Monte Carlo simulations, a method used to estimate possible outcomes of a system by repeatedly running it through randomized sequences. The technique is applied in many fields to model uncertainty and variation. In trading, it can be used to observe how a strategy performs across different sequences of wins and losses, helping to understand the range of outcomes that may result from probability. Trading System Variations Two different strategies can produce the same expected value, even if they operate on different terms. This is not a theoretical point, but a practical one that influences what kind of outcomes can be expected. For example, System A operates with a high win rate and a lower reward-to-risk ratio. It wins 70% of the time with a 0.5 R, while System B takes the opposite approach and wins 30% of the time with a 2.5 R. If the applied risk is $1,000, the following results appear: System A = (0.70 × 500) − (0.30 × 1,000) = 350 − 300 = $50 System B = (0.30 × 2,500) − (0.70 × 1,000) = 750 − 700 = $50 Both systems average a profit of $50 per trade, yet they are very different to trade and experience. Both are valid approaches if applied consistently. What matters is not the math alone, but whether the method can be executed consistently across the full range of outcomes. Let’s look a bit closer into the simulations and practical implications. The simulation above shows the higher winrate, lower reward system with an initial $100,000 balance, which made 50 independent runs of 1000 trades each. It produced an average final balance of $134,225. In terms of variance, the lowest final balance reached $99,500 while the best performer $164,000. Drawdowns remained modest, with an average of 7.67%, and only 5% of the runs ended below the initial $100,000 balance. This approach delivers more frequent rewards and a smoother equity curve, but requires strict control in terms of loss size. The simulation above shows the lower winrate, higher reward system with an initial $100,000 balance, which made 50 independent runs of 1000 trades each. It produced an average final balance of $132,175. The variance was wider, where some run ended near $86,500 and another moved past $175,000. The drawdowns were deeper and more volatile, with an average of 21%, with the worst at 45%. This approach encounters more frequent losses but has infrequent winners that provide the performance required. This approach requires patience and mental resilience to handle frequent losses. Practical Implications and Risk While these simulations are static and simplified compared to real-world trading, the principle remains applicable. These results reinforce the idea that trading outcomes must be viewed probabilistically. A reasonable system can produce a wide range of results in the short term. Without sufficient sample size and risk control, even a valid approach may fail to perform. The purpose is not to predict the outcome of one trade, but to manage risk in a way that allows the account to endure variance and let statistical edge develop over time. This randomness cannot be eliminated, but the impact can be controlled from position sizing. In case the size is too large, even a profitable system can be wiped out during an unfavorable sequence. This consideration is critical to survive long enough for the edge to express itself. This is also the reason to remain detached from individual trades. When a trade is invalidated or risk has been exceeded, it should be treated as complete. Each outcome is part of a larger sample. Performance can only be evaluated through cumulative data, not individual trades.
AMEX:SPYEducation
by StockLeave
ChoCH: The Quiet Shift Most Traders Ignore“Most traders chase price. Few notice when price quietly turns around.” Before a trend ends, before a breakout fails, before a setup forms — There’s often a silent clue: Change of Character (ChoCH) . What is ChoCH? Change of Character marks the first structural sign that the market may be reversing — not continuing. It’s a break in the internal rhythm of price, often happening after a liquidity sweep or inside a key zone. In simpler terms: BoS = Continuation ChoCH = Potential Reversal Most traders treat ChoCH like a green light to enter... but that’s a mistake. ChoCH alone doesn’t mean a trend is ready to reverse. It only tells you the current trend has paused or cracked — not ended. What matters more is: – Where the ChoCH happens – Why it happens – What came before it This is where context matters. How I Use ChoCH in My Trading Framework: My approach is built around multi-timeframe structure: ✅ H4 – Bias ✅ M15 – Setup Alignment ✅ M1 – Sniper Entry So when I see a ChoCH on M15 , I ask: Does this align with my H4 bias ? Has price entered a key zone or swept liquidity before the shift? If yes — I start watching closely. If no — it’s likely just noise. ChoCH without narrative is just confusion. BoS vs ChoCH – Know the Difference: • BoS (Break of Structure) confirms trend continuation • ChoCH (Change of Character) hints at a trend shift • They look similar on a chart — but their implications are opposite Mistake to avoid: Entering just because ChoCH appeared Better approach: Let it warn you , not trap you 🪞 Final Thought: ChoCH is not an entry. It’s an invitation. A quiet shift the market offers only to those still enough to see it. Some notice it. Fewer understand it. Even fewer know what to do after. That’s the difference between recognizing a change… and trading it with conviction. 💬 If this spoke to you, share your thoughts below. There’s more beneath the surface — tell me what direction you'd like to explore next. Some of the most powerful methods I use aren’t shared openly — but those who’ve seen them know why. You’ll know where to look if it’s meant for you. 📘 Shared by @ChartIsMirror
OANDA:XAUUSDEducation
by ChartIsMirror
What Nobody Taught You About Risk Management. Part 1 Numerous authors and communicators have addressed the importance of risk management, more or less comprehensively, but I have not come across any who present what I intend to share with you today. Once my presentation is complete, I will share some useful resources with which you can complement what you learn here, as I will only cover an important but small part of the topic: execution. What is risk management? Risk management is the planning an investor undertakes to protect capital and maximize profits. It encompasses factors surrounding the creation of a profitable system or method, the allocation of our capital, and the execution of our trades. Some key concepts: Risk-Reward Ratio The risk-reward ratio is a metric used in trading and investing to assess the relationship between the risk taken in a trade and the expected potential profit. It is expressed as a ratio, for example, 1:1, 1:2, 2:1, etc. Stop Loss (SL) The SL, or stop-loss, is an automatic order placed in a trading operation to close your position at a specific price, with the aim of limiting losses if the market moves against you. Take Profit (TP) The TP, or take-profit, is an automatic order placed in a trading operation to close your position at a specific price to secure profits when the market reaches a favorable level. It is the point where you decide to "take" your profits and exit the trade. Margin In trading, margin is the amount of money a trader must deposit or maintain in their account to open and sustain a position. Volatility Volatility, in the context of trading and financial markets, measures the magnitude and frequency of changes in an asset's price. Leverage Leverage in trading is a tool that allows investors to control a larger market position using only a fraction of their own capital. It acts as a "loan" provided by the trading platform, amplifying both potential profits and potential losses. Risk Management and Trade Execution: The most common problem among other investors, beyond psychological factors or lack of experience, is the absence of total control over their trades. They use random leverage, take entries with risk-reward ratios below 1:1, and some don’t even know what percentage of profits or losses they will have at the end of the trade. For an investor to execute a successful trade, they must meet the following criteria: 1. Ensure minimum risk-reward ratios of 1:1. 2. Properly allocate their investment capital, adhering to strict rules to avoid undermining their statistical performance. 3. Adapt to volatility and know how to adjust their leverage accordingly. 4. Set a fixed stop-loss (SL) price and determine what percentage of losses they are willing to accept per trade. 5. Set a fixed price for taking profits from the trade and know what percentage of profits they will achieve. Failing to meet these parameters will not only destroy traders’ profitability but also make it impossible for them to develop reliable investment systems and methods. Incorrect Execution: For example, if I see an entry opportunity in BTC/USDT, it would be a mistake to choose random leverage and plan to manually close when I think I’ve gained or lost enough. The volatility of the price chart itself may or may not require leverage, and that leverage must be adjusted to our risk management strategy. Trading in the manner described above is a recipe for failure, which is why it’s a lucrative business to allow inexperienced investors to access markets through online platforms. Correct Execution: Before explaining a practical case, let’s assume I use a $1,000 amount per trade and am willing to risk a 20% stop-loss (SL). These parameters are non-negotiable to avoid undermining my statistical performance. A few days ago, I took the trade shown in the chart. To enter this long position in BTC/USDT, the first thing I did was identify the entry point and the exit points for my trade (SL and TP). The trade met a minimum risk-reward ratio of 1:1, so I considered whether leverage was necessary. A volatility of 9.07% from the entry point to my SL price offered low profit expectations relative to what I was willing to risk from my margin per trade (20% of $1,000). I needed leverage. In the toolbar on the left, once you have a price chart open in TradingView, you can use the ruler to easily measure the percentage of volatility. How can I ensure that 20% of the margin I’m investing is triggered when the price reaches my SL zone using leverage? To calculate the exact leverage, we divide the SL percentage we’re willing to risk (20%) by the volatility percentage from the entry point to the SL price (9.07%). For example, my entry point in BTC was $109,898, and the exit point or SL was $99,930. I measured the volatility between the entry price ($109,898) and the exit price ($99,930), resulting in 9.07%. Since the volatility was somewhat low and I wanted to risk 20% of my margin per trade when the price hit my SL, I calculated the required leverage. To do this, I divided 20% (the percentage I was willing to lose per SL) by 9.07% (the volatility percentage from the entry price to the SL price). The result was approximately 2x leverage when rounded. In summary: At 2x leverage, we would lose approximately 20% of our capital if the price reached $99,930. Since I had a 1:1 risk-reward ratio before entering the trade, I assumed I would gain approximately 20% of the invested margin when the price reached $120,000. The trade was a winner, reaching the TP price without issues and generating a 20% profit on the margin I invested ($1,000). Use investment platforms that allow you to manually adjust leverage, such as 1x, 2x, 3x, 4x… 38x, 39x, 40x, and avoid platforms where leverage is set to default values like 1x, 5x, 10x, 20x, 50x… This seemingly minor detail for most small investors allows platforms to pocket large fortunes from failed trades. Conclusions and Recommendations: Risk management is the backbone of investors, and knowing how to execute entries with precision is rare among retail traders. Even so, I’ve only covered a small part of this topic. To complement this knowledge, I recommend searching on YouTube for the video by investor and educator Yuri Rabassa titled “The Secrets of Good Money Management.” This video will help you develop basic statistical skills that are vital for creating a trading system. Additionally, in the book *Forex Price Action Scalping* by renowned author Bob Volman, you’ll find a very insightful chapter titled “The Principle of Probability.” Final Note: If you’d like to take a look at my analysis log, you can find my profile in Spanish, where I transparently share well-defined market entries. Send your good vibes if you enjoyed this article, and may God bless you all.
Education
by Especulador96
2
How I Analyze Any Coin in 60 Seconds: 4-Step Masterclass!Heyy traders, it’s Skeptic from Skeptic Lab! 🩵 I’m breaking down my lightning-fast method to analyze any coin in just 60 seconds . This 4-step process is how I spot long/short triggers like a pro. Buckle up, let’s dive in: ✔️ Step 1: Identify HWC/MWC/LWC (10 seconds) Nature’s got a cool vibe—bet a lot of you hit the outdoors on weekends. When I see an apple tree from afar, it’s majestic, but up close, I spot branches and worm-eaten fruit. From a distance, I miss the details; up close, I lose the tree’s grandeur. Markets work the same. You need different timeframes to grasp the market structure. With practice in Dow Theory, trends, and tools, spotting HWC (Higher Wave Cycle), MWC (Mid Wave Cycle), and LWC (Lower Wave Cycle) becomes second nature. For me, this takes 10 seconds. Want a full HWC/MWC/LWC guide? Check my free article I wrote a while back—it’s a hands-on tutorial ( link Cycle Mastery ). 📊 Step 2: Draw Support/Resistance Lines (20–30 seconds) I start with higher timeframes: Monthly, then Weekly, then Daily. Once I’ve drawn lines up to Daily, I don’t always redraw for lower timeframes—often, I just adjust them. Pro tip : Give more weight to the right side of the (recent data) since it’s fresher and more valuable. I change line colors for 4-hour lines, so I know they’re less critical than Daily. I don’t draw lines below 4-hour, but if you’re a scalper, tweak this to your strategy. This step takes me 20–30 seconds, the longest part. 📉 Step 3: Analyze Candles, Volume, Oscillators, and Indicators (10–15 seconds) Here, I check everything I can: candles, volume, oscillators, and indicators . The goal? Stack confirmations for my triggers. Think RSI hitting overbought, volume spikes, larger candle sizes, or momentum surges—you get the vibe. This step’s length depends on your tool mastery. For me, it’s quick because I know what to look for. 🔔 Step 4: Check Coin Dominance (5–10 seconds) This is the most critical yet simplest step. We need to track where liquidity’s flowing . For example, if SOL/BTC is bearish, I skip buying Solana—liquidity’s exiting. BTC.D (Bitcoin Dominance) is also key. The relationships dominance creates are complex and don’t fit in one analysis, but if you want a full dominance tutorial, drop it in the comments! 🔼 Key Takeaway: Using these 4 steps—HWC/MWC/LWC, support/resistance, candles/indicators, and dominance—I analyze any coin in 60 seconds. Your speed depends on experience and knowledge. If you’re new, this might take 60 minutes per coin, but don’t sweat it— practice makes you lightning-fast . Thanks for vibing with this educational idea! <3 I’ll catch you in the next one—good luck, fam! 💬 Let’s Talk! Want a dominance tutorial or more tips? Hit the comments, and let’s crush it together! 😊 If this guide lit your fire, smash that boost—it fuels my mission! ✌️
Education
by SkepticLab
6