What Is a Japanese Candlestick Pattern?Japanese candlestick patterns are a popular technical analysis tool used in financial markets such as Forex, stocks, and commodities. Each candlestick represents price movement over a specific time period, showing the opening price, closing price, highest price, and lowest price within that timeframe. The body of the candlestick reflects the price range between the open and close, while the wicks (or shadows) indicate the highest and lowest traded prices. These patterns help traders identify market sentiment, potential trend reversals, and continuation signals by analyzing the shape and arrangement of one or multiple candlesticks. For example, a Hammer pattern may indicate a possible bullish reversal after a downtrend, while an Engulfing pattern shows strong momentum in the direction of the larger candle.
Common candlestick patterns include Doji, which signals market indecision; Hammer and Hanging Man, which point to potential reversals; Engulfing patterns that suggest strong buying or selling pressure; and Shooting Star, which often signals bearish reversal. Mastering these patterns allows traders to make more informed entry and exit decisions, improving their overall trading strategy. However, it’s important to combine candlestick analysis with other technical tools and market context to increase accuracy and reduce false signals.
If you need more information or guidance on analyzing candlestick patterns, feel free to ask. Wishing you successful trading!
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Smart Entry into the Wheel Using a Credit Put Spread on QQQSmart Entry into the Wheel Strategy Using a Credit Put Spread on QQQ
⚠️ ⚠️ Warning and Disclaimer⚠️⚠️:
This strategy is a trading concept and not financial advice. All traders must conduct their own research and accept full responsibility for the risks involved. While NASDAQ:QQQ is considered a high-quality ETF, options trading always carries the potential for capital loss.
Market Context & Strategic Outlook
Assuming the weekly gap in QQQ gets filled, we may see a temporary correction to around $488 , followed by a quick recovery and potential consolidation near $500 , assuming no new negative catalysts. While I remain skeptical of the market staying perfectly stable, this scenario provides an opportunity for a strategically structured option play with reasonable reward and manageable risk.
If you're planning to acquire 100 shares of QQQ or have the buying power to do so, this strategy can offer a smart and flexible way to enter a long-term position while generating short-term income.
Strategy Concept: Credit Put Spread as Wheel Entry
Prerequisites:
Buying Power: $50,000+
Ideal Market Conditions: Short-term weakness followed by stabilization
Expiration: ~7 Days to Expiry (DTE), depending on volatility and setup
Option Positions Initial Credit Put Spread
Sell QQQ $500 Put
Buy QQQ $498 Put
Net Delta: Less than 0.03
Note: Short strike must be at $500 to set the stage for assignment and wheel initiation.
Management Phases
Stage 1: Entry via Credit Put Spread
- Sell the vertical spread with the intention of owning QQQ.
- If QQQ falls below $500 , close or roll the long $498 put to a lower strike with delta < 0.15.
- Upon expiration:
Let the short put assign, or
Buy the 100 shares outright and close the short leg before the market closes.
Model Virtualization
Alternative (managing risk with rolling down the long put)
Model Virtualization
Goal: Own QQQ at a slightly discounted price, with reduced initial cost due to premium received.
Stage 2: Transition to Covered Call
- After assignment or manual purchase, sell a covered call:
Target DTE ≈ 7 days
Delta ≈ -0.45
Strike price must be ≥ $500
If not available, sell the short call at $500 strike.
Model Virtualization
This generates weekly income while holding the shares, allowing the strategy to compound returns.
Stage 3: Exit or Continue Wheel
- If the call expires worthless, repeat the covered call sale weekly.
- If assigned early, welcome it as it accelerates capital rotation.
- You may also manually unwind the position on expiration if near max profit or market conditions shift.
Model Virtualization
Strategic Rationale
This strategy is a more dynamic and risk-managed version of the traditional Wheel. Rather than starting with a fully cash-secured put, we use a credit put spread for entry, offering a buffer against a steep drop with lower upfront margin.
Why Not Just Sell the Put?
A credit put spread offers:
Defined risk
Lower buying power requirement
Better capital efficiency if the price declines sharply
When NOT to Use This Strategy
If QQQ is expected to trade in a narrow range with minimal volatility, avoid this approach. Instead, consider:
Butterfly or Iron Condor setups with DTE ~12 days
Calendar spreads to benefit from sideways action
Risk and Reward Assessment
Risk and Reward Assessment, Outcome Scenarios
Scenario 1: Price stays above $500
Outcome: Credit put spread expires worthless
Estimated Profit: ~$150
ROI: Approx. 0.3% on $50,000 buying power
Note: No shares are acquired; premium is kept
Scenario 2: Price drops below $500 but recovers
Outcome: Assigned 100 shares, enter covered call phase
Estimated Profit (3 weeks total): ~$800–$1,200
ROI: Approx. 2%
Note: Ideal wheel cycle if managed properly
Scenario 3: Price drops and stays low
Outcome: Maximum loss on the credit put spread
Estimated Profit: -$160
Note: This occurs if the spread expires in-the-money and is unmanaged
This strategy aims not to harvest credit, but to secure a better entry into a long-term equity position.
Caution on Risk
While QQQ is a fundamentally strong ETF, a sharp decline could lock your capital or increase unrealized losses. Liquidity risk which needs that cash for other purposes is the biggest concern.
Mitigation Tip: Consider using a collar strategy (buying protective puts) to hedge against large drawdowns post-assignment.
Stop Loss?
For long-term investors in QQQ, a traditional stop-loss is less critical. But if you're more tactical or capital-sensitive, protecting the downside with a collar is a reasonable move.
Final Thoughts
This approach offers a sophisticated entry into the "Wheel" strategy, additionally, it balances risk, reward, and capital efficiency. Whether the market pulls back or holds steady, you’re either:
Earning premium while staying in cash, or
Entering a high-quality equity position at a better price and generating income weekly.
Thank you for reading. Wish you a successful options trading!
Popular Trading Styles in ForexHere are some common trading styles used in the Forex market:
Trend Following: Traders identify and follow the main market trend, buying in an uptrend and selling in a downtrend.
Reversal Trading: Traders look for points where the trend may reverse and enter positions against the current trend.
Range Trading: Traders buy near support and sell near resistance when the price moves within a defined range.
News Trading: Traders capitalize on strong market movements following major economic news releases.
Scalping: Traders open and close trades very quickly, aiming to profit from small price movements.
Swing Trading: Traders hold positions from several days to weeks, taking advantage of short-term price swings within a larger trend.
Technical Analysis Trading: Decisions are based on indicators, price patterns, and volume analysis.
Fundamental Analysis Trading: Traders analyze economic and political factors affecting currency values to make trading decisions.
If you have any questions or need further explanation on any style, feel free to ask.
Good luck and happy trading!
High-Frequency Trading (HFT) in Forex and StocksHigh-Frequency Trading (HFT) in Forex and Stocks
High-Frequency Trading (HFT) has garnered significant attention due to its transformative impact on markets, reshaping the way they operate, influencing liquidity, price discovery, and overall efficiency. In this FXOpen article, we focus on high frequency forex and stock trading, its definition and its specific applications, pointing out the opportunities and challenges that this trading method presents.
High-Frequency Trading: An In-Depth Analysis
High-frequency trading represents a dynamic and swiftly evolving facet of the financial world. Understanding the basic HFT concept can help traders develop and employ advanced trading strategies.
Definition
At its essence, high-frequency trading is characterised by the swift execution of a substantial number of orders within exceptionally brief time intervals, often measured in milliseconds or microseconds. Traders engaged in HFT within the market leverage robust algorithms and state-of-the-art technology to scrutinise extensive sets of market data, facilitating swift and informed trading decisions. At the heart of HFT is its ability to harness even the slightest price differentials, allowing traders to take advantage of market inefficiencies that may elude traditional counterparts.
Key Features
The key attributes of high-frequency trading encompass remarkable speed, elevated order-to-trade ratios, and a dedicated focus on exploiting short-term fluctuations in the market. The primary objective is to execute a considerable volume of orders with precision, enabling traders to capitalise on momentary opportunities. This approach aligns with the broader domain of algorithmic trading, where pre-programmed instructions are believed to guide strategic decision-making for potentially efficient market participation.
HFT isn’t very common for retail traders. Usually, it’s done by institutional investors as this method requires significant funds and advanced software.
Strategies Employed in HFT Forex and Stock Trading
High-frequency trading encompasses a variety of strategies, each designed to exploit specific market conditions.
- Market Making involves the continuous quoting of buy and sell prices for currency pairs and stocks. HFT investors aim to capture the bid-ask spread swiftly, contributing to market liquidity. By providing liquidity, market makers facilitate seamless transactions on HFT trading platforms and play a crucial role in the efficient functioning of the markets.
- Order Flow Analysis: HFT traders analyse the order flow, seeking insights into the direction of large institutional orders. They may front-run these orders, quickly buying or selling to take advantage of subsequent price movements.
- Tick Scalping: This strategy involves making numerous small trades on tiny price fluctuations within milliseconds. HFT algorithms are designed to capture these minuscule movements.
- Machine Learning and AI: Advanced machine learning and AI techniques are increasingly used in HFT. These algorithms continuously learn from market data to refine strategies and adapt to changing market conditions.
Choosing the Right Tools in the High-Frequency Trading Landscape
The selection of the right tools is paramount for forex and stock traders, whereby several key components have to be considered.
Best High-Frequency Trading Software Can Unleash Algorithmic Power
At the heart of every high-frequency trading strategy lies powerful software designed to execute trades with speed and precision. The best high-frequency trading software incorporates advanced algorithms, machine learning, and artificial intelligence to analyse market data swiftly. These algorithms may help traders to make split-second decisions, leveraging the smallest market differentials. High-frequency trading software should also evolve quickly to meet the demands of modern traders. Such software cannot be launched on a regular PC.
High-Frequency Trading Brokers Should Facilitate Swift Execution
High-frequency trading brokers facilitate the rapid execution of trades and provide access to market liquidity. These brokers often offer low-latency connections, specialised infrastructure, and co-location services to minimise execution delays. The selection process involves the careful consideration of factors such as execution speed, fees, and reliability. High-frequency trading brokers typically offer integrated high-frequency trading apps that allow for real-time monitoring, instant decision-making, and swift trade execution. As the demand for flexibility and accessibility continues to grow, high-frequency trading technology has become an indispensable tool.
The Impact of High-Frequency Trading
High-frequency trading brings forth a dual-edged sword for forex and stock markets, with both advantages and concerns shaping its impact on financial markets. Striking the balance is essential for fostering a financial environment that encourages innovation while upholding the principles of transparency and fairness that retail traders rely on.
Advantages of HFT
One of the primary advantages of high-frequency trading is its positive impact on market liquidity. HFT strategies contribute to a continuous flow of buy and sell orders, which may ensure there is a ready market for traders to execute transactions. This increased liquidity may lead to narrower bid-ask spreads, benefiting market participants by reducing transaction costs.
Concerns and Criticisms
Critics argue that the speed and volume of HFT trades can be used to influence prices in a way that may not align with fair market practices. Strategies such as spoofing, layering, and quote stuffing have raised apprehensions about the integrity of market dynamics. HFT's role in the market has also been linked to increased volatility, especially during times of stress or uncertainty. The rapid execution of trades by algorithms responding to changing market conditions can amplify price swings, leading to concerns about stability.
Final Thoughts
Though institutional and professional traders are more likely to have the required financial resources to invest in cutting-edge high-frequency trading technology and infrastructure, retail traders can also take advantage of the HFT concept by researching the available options and understanding the market implications.
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.
Artavion Analysts Forecast Bitcoin to Reach $100,000 by End of MThe analytical company Artavion has released an updated forecast for the price of Bitcoin (BTC) by the end of May 2025. According to the experts, amid sustained institutional demand and limited supply following the recent halving, the price of the leading cryptocurrency could reach $100,000 in the coming days.
Key Growth Drivers
Analysts highlight several factors contributing to Bitcoin's price growth:
📈 Institutional Demand: Ongoing accumulation by investment funds and banks through spot ETFs approved in the U.S. and Asia.
⛏ Reduced Supply: The April halving has decreased miner rewards, limiting daily BTC issuance.
🇺🇸 Fed Policy Easing: Expectations of interest rate cuts are increasing demand for alternative assets, including crypto.
💼 Market Confidence: Growth in long-term holders and increasing BTC withdrawals from exchanges indicate a “HODLing” trend among investors.
Company Comment
"We are witnessing stable accumulation and a capital shift into digital assets. If markets avoid major shocks, Bitcoin has every chance to consolidate above $95,000 and briefly test the psychological barrier of $100,000," said Alexey Gurov, senior strategist at Artavion.
Potential Risks
Despite the optimistic outlook, analysts point out several risks that could impact the forecast:
📉 Unexpected macroeconomic data (e.g., rising inflation, stronger U.S. dollar);
⚠️ Regulatory actions from the SEC or other global bodies;
🌍 Escalation of geopolitical tensions, which could trigger risk-off sentiment.
Conclusion
Considering the current market environment and macroeconomic expectations, Artavion maintains a positive short-term outlook for Bitcoin through the end of May, while cautioning investors to remain aware of the sector’s inherent volatility and risk.
Learn Best Candlestick Pattern For Trend Trading Gold XAUUSD
This secret pattern will change the way you trade Gold XAUUSD.
If you study technical analysis in Gold trading, there is one unique candlestick pattern that you absolutely need to know.
In this article, you will learn the structure and the meaning of one of the most accurate candlesticks in Gold trading.
I will teach you how to recognize this pattern and how to trade it for maximum profits.
Let's start with some theory and let me show you how this candlestick pattern looks.
This candlestick pattern is called inside bar.
It is based on a combination of at least 3 candles.
The first candlestick in a sequence should be a strong bullish or bearish candle. The consequent candles should strictly close within its range.
If at least 2 candles close within the range of the first candle with its bodies, that will be a valid inside bar.
The first candle will always be called the mother's bar , while the following candles will be called the inside bars.
That's a perfect example of the inside bar pattern on Gold XAUUSD chart on a daily.
This pattern is based on 2 important elements that you should always pay close attention to.
The upper boundary of the range of the mother's bar will compose a significant resistance that will provide a safe place to sell.
While the lower boundary of the range of the mother's bar will be a strong support to buy Gold from.
Look how nicely Gold price respected the resistance of the range, dropped to its support and started to grow then.
Once you identified the inside bar, you can easily trade it within the range.
However, I strictly recommend waiting for a confirmation signal before you place a trade.
One of the proven confirmations is a price action signal on lower time frames.
In the example above, Gold formed a bullish chart pattern - double bottom after a test of a support and a bearish pattern - head and shoulders after a test of a resistance.
Remember that the market can not stay within the range of the inside bar candlestick pattern forever.
Bullish violation and a candle close above the range will be a strong signal to buy Gold.
While, a bearish breakout of its range will provide a strong bearish confirmation.
That's how a breakout of the underlined resistance triggered a strong rally on Gold.
Inside bar is the essential pattern both for the gold swing traders and day traders.
This pattern provides a lot of profitable trading opportunities, being very simple to recognize.
❤️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.
Color Your Trades: MACD 4C vs the Classic📊 Coloring Momentum: Comparing Standard MACD vs MACD 4C
Momentum indicators are a trader’s compass—but not all compasses are created equal. In this post, we compare the classic MACD with the visually enhanced MACD 4C , a four-color histogram tool that adds clarity and nuance to trend and momentum analysis.
Let’s break down how both tools work, how we use them at Xuantify, and how you can decide which one fits your strategy best.
🔍 What Are These Indicators?
Standard MACD (Moving Average Convergence Divergence) is a time-tested momentum indicator that plots the difference between two EMAs (typically 12 and 26) and a signal line (usually a 9 EMA of the MACD line). It’s simple, effective, and widely used.
MACD 4C , developed by vkno422 , builds on the classic MACD by introducing a four-color histogram and divergence detection , making it easier to interpret momentum shifts and trend strength visually.
Key Differences:
Standard MACD: Two lines + histogram (single color)
MACD 4C: Histogram only, but with four colors to show trend strength and direction
MACD 4C includes bullish/bearish divergence detection
🧠 How We Use Them at Xuantify
We use both indicators—but for different purposes.
1. Standard MACD – Clean Confirmation
We use it for classic trend confirmation and crossover signals . It’s great for traders who prefer minimalism and are comfortable interpreting line-based momentum.
2. MACD 4C – Visual Momentum Clarity
We use MACD 4C when we want a more intuitive, color-coded view of momentum. The four-color histogram helps us quickly spot trend strength, exhaustion, and divergence.
🧭 Color Coding in MACD 4C
MACD 4C uses four histogram colors (default settings):
Lime/Green : Bullish momentum building or continuing
Red/Maroon : Bearish momentum building or continuing
This makes it easier to:
Spot momentum shifts
Identify trend continuation
Detect divergence at a glance
⚙️ Settings That Matter
Both indicators allow customization, but MACD 4C offers more visual tuning:
MACD 4C:
Adjustable fast/slow MA and signal smoothing
Toggle divergence detection
Color-coded histogram for quick reads
Standard MACD:
Clean, minimal, and widely supported
Best for traders who prefer traditional setups
🔗 Best Combinations with These Indicators
We combine MACD tools with:
Structure Tools – BOS/CHOCH for context
Liquidity Zones – To spot where momentum may reverse
Volume Profile – To confirm strength behind moves
Fair Value Gaps (FVGs) – For precision entries
⚠️ What to Watch Out For
Both indicators are lagging by nature—they rely on moving averages. MACD 4C’s divergence detection can help anticipate reversals, but it’s still best used as a confirmation tool , not a standalone signal.
🔁 Repainting Behavior
Both the standard MACD and MACD 4C are non-repainting . Once a histogram bar or crossover is printed, it remains fixed. This makes them reliable for real-time trading and backtesting .
⏳ Lagging or Leading?
These are lagging indicators , designed to confirm trends—not predict them. MACD 4C’s divergence feature adds a leading element , but it should always be used with structure and price action for confirmation.
🚀 Final Thoughts
If you’re a visual trader who wants more clarity from your momentum tools, MACD 4C is a powerful upgrade. If you prefer simplicity and tradition, the standard MACD still holds its ground.
Try both, test them in your strategy, and see which one sharpens your edge.
Greed: The Silent Killer Behind Your LiquidationsWhen the market turns green, everyone feels like a genius... But why do most traders lose the most money exactly at that point?
Is it your greed tricking you, or is the market designed to trap emotions?
In this analysis, we take a deep dive into how greed shapes your decisions — plus tools to help you stay rational before placing any trade.
Hello✌
Spend 3 minutes ⏰ reading this educational material.
🎯 Analytical Insight on Solana:
SOL, a market leader and one of my top picks, is currently consolidating near the critical psychological level of $200. Given its historical momentum and influence over correlated assets, a clean break above this level could trigger a minimum 14% upside, with $200 as the immediate target . Market sentiment remains cautious, but the setup hints at a potential bullish continuation 🚀.
Now , let's dive into the educational section,
💥 Where Does Greed Actually Start?
Greed often wears the mask of motivation. The difference? Motivation is rooted in analysis. Greed is rooted in fantasy.
When a coin suddenly pumps 150%, the noise on social media explodes — and so do your imagined gains… often before you've even checked the 4H chart.
📊 TradingView Tools to Spot Greed Traps
TradingView isn't just about pretty charts — it's a powerful platform to organize your trading mindset, if you know how to use it right. Here are three practical tools to help you identify whether your next trade is based on logic — or just plain hype:
Fear & Greed Index:
A composite indicator showing the market's emotional state using volume, volatility, and other metrics. Readings above 70? You’re probably in a greed zone.
Volume Profile Visible Range (VPVR):
This shows where real money has flowed. If you’re buying in a price zone with historically low volume, you might be walking into a fake breakout.
Relative Strength Index (RSI) with 2 or 7 Settings:
A hyper-reactive RSI setting helps you catch emotional peaks in smaller timeframes. Above 80? Time to breathe, not buy.
Pro tip : Build a self-check list on your chart. Questions like: “Am I acting on impulse?” or “Is this revenge trading?” can save you from emotional trades.
🔁 Repeating Behaviors That Kill Accounts
Entering with high leverage and no stop-loss
Buying into massive green candles
Copying trades without personal analysis
Switching strategies based on emotions
Trading just to recover past losses (aka revenge trading)
These are not strategy flaws — they are emotional traps caused by unchecked greed.
🧘♂️ How to Calm Your Mind Before Trading
Ask yourself: "If this trade flips against me, what's my move?"
Use TradingView Alerts instead of staring at charts for hours
Define risk per trade as a percentage, not based on "gut feeling"
Always have an exit plan — the market doesn’t care about your hopes
📉 Is Liquidation Always a Sign of Bad Analysis?
Not always. Often, the chart was right, but greed kept the trader from exiting at the logical spot. Tools told you to get out — but your mind said, “What if it goes higher?”
🧭 How Greed Shows Up in Different Timeframes
In 5-minute charts, greed looks like sudden spikes. In 4H charts, it can be a fakeout or deceptive pullback.
Recognizing the form greed takes in your preferred timeframe is a game-changer.
🧲 How to Use Greed to Your Advantage
Yes — you can flip the script. When everyone is entering trades driven by greed, you can prepare to exit.
If RSI is high, volume is weak, and hype is everywhere — maybe it’s time to cash out, not load up .
💡Closing Note
Greed exists in every market — but that doesn’t mean you have to follow it.
Start treating your chart like a mirror — not a crystal ball. When a trade feels “too perfect,” stop and reflect. It might not be your edge talking — it might be your greed .
always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅.
Give me some energy !!
✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box.
Cheers, Mad Whale. 🐋
#AN001: Geopolitical Situations and Forex Impact
Hi, I'm Forex Trader Andrea Russo and today I want to talk to you about how the recent geopolitical turmoil is impacting global currency markets. In this week of May 2025, significant events are shaking up the global economic and political balance, with direct repercussions on Forex.
Geopolitical Overview: Rising Tensions
India-Pakistan Crisis
Following the terrorist attack in Pahalgam on April 22, which left 25 Indian tourists dead, relations between India and Pakistan deteriorated rapidly. Artillery exchanges along the Line of Control, diplomatic expulsions and the suspension of the Indus Waters Treaty characterized the following weeks. Although a ceasefire was reached on May 10, the situation remains volatile, with significant impacts on air traffic and regional trade routes.
Wikipedia
Iran-US Nuclear Stalemate
The nuclear talks between Iran and the United States are at a standstill. Tehran refuses to stop enriching uranium and negotiate on its missile program, while Washington insists on these conditions. Iran, under economic pressure from sanctions, may seek support from China and Russia, although these allies face their own geopolitical challenges.
Reuters
"Golden Dome" and US Trade Policies
President Donald Trump has announced the "Golden Dome" project, a $175 billion missile defense system inspired by Israel's Iron Dome. Meanwhile, protectionist US trade policies are generating uncertainty in global markets, with the European Union proposing a "Buy European" strategy to strengthen the bloc's economic autonomy.
The Times of India
Financial Times
FX Impacts: Currency Market Analysis
EUR/USD: Downside Pressure
The euro is under pressure due to trade tensions with the US and domestic economic uncertainties. Proposals to reform public procurement and European defense initiatives could affect investor sentiment. The ECB has highlighted risks to financial stability arising from these tensions.
USD/JPY: Yen Safe Haven
Amid global uncertainty, the Japanese yen is strengthening as a safe haven currency. Tensions in the Middle East and US policies are pushing investors towards safer assets, supporting the yen’s appreciation.
GBP/USD: Towards a New UK-EU Relationship
The UK, under Prime Minister Keir Starmer, is seeking to re-establish closer relations with the European Union, without rejoining the bloc. This pragmatic strategy could reduce economic uncertainty and positively impact sterling in the medium term.
USD/CAD: Influence of Oil Prices
The Canadian dollar is affected by fluctuations in oil prices, influenced by uncertainties in the Iran-US negotiations and tensions in Ukraine. Canada's dependence on energy exports makes the CAD sensitive to these developments.
Top 10 Rookie Trading Mistakes (And How to Laugh at Your Own)So you’ve just discovered trading. Maybe it started with a Reddit thread. Maybe someone said “trading Nvidia NASDAQ:NVDA is like printing money.” Or maybe you just liked the name “Shiba Inu” and figured memecoins was a good investment thesis.
Either way, welcome. This is where dreams are made, lost, rebought on leverage, and then tweeted about.
The markets are ruthless, but also educational — if you’re humble enough to learn and bold enough to laugh when you inevitably light your first $100 on fire by accidentally shorting Apple NASDAQ:AAPL during a breakout.
This article is for you. The new trader. The (overconfident?) beginner. Let’s talk about the top 10 rookie trading mistakes — and how to laugh at your own before the market does it for you.
1️⃣ Mistaking Luck for Skill (aka “Call Me Baby Buffett”)
Your first trade is a win. Your second is too. Maybe it’s a meme stock . Maybe it’s a hot IPO. Either way, you’re convinced you’ve cracked the matrix.
You tell your friends: “I just have a feel for this stuff.”
What actually happened: You got lucky in a trending market. And now you're about to go full Titanic on a position you didn’t research, because hey — you're "on a roll."
What you can do insead, and probably have a laugh about it years later, is screenshot your account right now in your very early steps. Frame it. Label it: Exhibit A in Emotional Risk Management.
2️⃣ The Revenge Trade: “I’ll Win It Back”
You took a loss. A big one. Your first real slap from the market. So what do you do? Walk away? Reflect? Journal it?
Nah. You go in twice as hard on the next setup. Same ticker. Same direction. More size.
Spoiler alert: It doesn’t end well.
That type of spiraling behavior usually happens when you think the market owes you something. It doesn’t. Not even an apology.
Imagine explaining your decision to a judge. “Your Honor, I lost money shorting Tesla, so naturally I doubled down five minutes later.” Case dismissed — and that’s why revenge trading is so dangerous .
3️⃣ FOMO FOMO FOMO
A green candle pops up on your watchlist. It’s moving. Fast. You missed the breakout but you still click “buy” because you’re not missing this train.
You get in. It tops. You hold. It drops. You panic. It rebounds… just after you sell.
Classic rookie cycle.
Why does this happen? The fear of missing out turns off your brain faster than a margin call. Call it what it is — chasing. Say it out loud like it’s therapy: “Hi, this is Patrick and I like to buy things 10% too late.” Maybe it helps.
4️⃣ “I’m Married to This Trade”
It started with a spark. The chart looked good. The RSI whispered sweet nothings. You thought, “This could be the one.”
So you bought. Then bought again. And when it dipped harder than your last relationship, you said, “It’s okay, we’re just going through a rough patch.”
Before you knew it, you weren’t trading — you were in a toxic relationship with a ticker.
You’ve abandoned your edge for emotion. Confirmation bias kicks in, and instead of managing risk, you’re managing denial. You stop analyzing the chart and start defending it like it’s your firstborn.
If you’re talking about a stock (or anything else on a chart) the way your friend talks about their ex — “It just needs time, I know it’ll come back” — you’re not trading. You’re coping.
5️⃣ All In, All the Time
Risk management? Never heard of that. You found a setup that “can’t fail,” so you went 100% in. On margin. On a Friday.
What could go wrong?
Answer: Everything. Especially when your trade gaps against you on Monday morning after Trump has said tariffs are changing once again.
That’s when you know you’re mistaking conviction for strategy. They’re not the same.
6️⃣ Ignoring the Bigger Picture
You nailed the 15-minute chart. Gorgeous breakout. But somehow, you forgot to check the daily — where your “breakout” is just a lower high in a brutal downtrend.
Oops.
Think about whether you've got tunnel vision. You went along with your short-term bias instead of checking the bigger picture when things are different.
What you can do instead, is make a rule: before every trade, zoom out. Literally. Leave no timeframe unexamined (at least up to the daily frame).
7️⃣ Trading Every Day Like It’s the Super Bowl
New traders think they have to trade every day. Every single session. Every little move.
And when there’s no good setup? They make one up, trying to whip up trendlines to justify their trading.
What happens next: Boredom trades. Overtrading.
Why it happens: You're addicted to the action, not the outcome.
What can you do instead? Write down the number of trades you made last week. Multiply it by the average commission you paid. Now imagine what you could’ve bought instead. And, what could be even better, consider taking a lesson in patience .
8️⃣ Blind Faith in Indicators
The RSI is at 18. The MACD just crossed. Stochastic says “maybe.”
So you buy. No price action. No trend. Just… vibes and indicators.
Result: You become a victim of the “indicator trap” — relying so heavily on these lines you forget to read the actual chart — momentum, market sentiment, broader technicals, and fundamentals.
What’s a better approach is to treat your indicators like seasoning, not the main dish. The best trades come from confluence, not wishful thinking dressed up as technical analysis.
9️⃣ The Trading Journal You Never Wrote
If you can’t remember why you entered a trade, you’re not at your best. Here’s a pro tip:
Keep a trading journal . One that records your thesis, entry, stop, target, and outcome. You know — the boring stuff that makes you better.
Why is that important? Journaling builds discipline. Patterns. Self-awareness. It’s never too late to start your journal!
🔟 Expecting to Get Rich Quick
This is the big one. The rookie mindset that kills most portfolios: I’m gonna turn $500 into $5,000 in a month.
You won’t. Sorry.
And even if you do, you won’t keep it.
Trading rewards patience, process, and preservation. Not YOLO bets and delusions of grandeur.
Try looking at your P&L like a diet. If you expect six-pack abs in a week, you’ll burn out and crash your progress. If you focus on habits? You’ll outlive the hype.
📚 Conclusion: Every Trader Starts Stupid
Let’s be clear — all of us have made these mistakes, even the big shots out there that run billion-dollar funds. The only difference between a rookie and a pro is how fast you learn from them. Or better yet — how fast you can laugh at them, document them, and evolve.
Because the truth is, the market is the most expensive comedy club on Earth. And every trade is a new punchline.
So if you're new, mess up. Take notes. Stay humble. And above all — enjoy the chaos. One day you’ll look back at your Doge CRYPTOCAP:DOGE top-buy with fondness.
After all, it’s only a mistake if you didn’t learn. Otherwise, it’s just tuition paid for by your trading account.
What’s a mistake we didn’t mention? Share your tips, tricks, mistakes, and lessons in the comment section!
My First Look at the New 2025 TradingView Stock ScreenerI’ve made plenty of videos in the past covering the old TradingView Stock Screener - the one that used to sit below the chart.
In May 2025, TradingView moved the screener to the sidebar and replaced it with the standalone version previously accessed via the top menu. This video is my first walkthrough of the updated layout, and I’m talking through it as I figure out how it works and what’s changed compared to the older version.
For this example, I’m scanning for stocks that may have been oversold and are showing signs of recovery. I start with the MACD, looking for bullish crossovers where the MACD line moves above the signal line. I then add RSI and sort it from lowest to highest to highlight stocks that might have been more heavily sold off ie potential value plays. I also apply filters for price (between $10 and $100) and average daily volume (over 100,000) to avoid thinly traded penny stocks.
Hope you find it useful. This is my first look at the updated screener, so if I’ve missed anything, feel free to point it out.
zAngus
Nasdaq Level 3 Behavior MAAWKey Trapping Techniques
• False Breakouts (above M or below W pattern)
• Session Open Spikes (especially NY open or London open)
• News Traps (spike during news, then reversal after)
⸻
3. TIMING: WHEN TO EXPECT LEVEL 3 MOVES
Look for session overlap (London/NY) — that’s often where the Level 3 “move away” happens.
⸻
4. WHAT TO LOOK FOR
Here’s your sniper checklist:
Before Entry
• Clear M or W pattern (preferably over 3 sessions)
• 3 levels or signs of MM cycle (Level 1, 2 already done)
• Price at ADR High/Low
• EMA Alignment (5/13 cross for confirmation)
• TDI Confirmation (green cross red, volatility band bounce)
• High Volume Candle showing shift
• Price is not at mid-range, but at extremes
⸻
5. WHAT TO AVOID
• Entering during consolidation
• Trading Level 1 (accumulation = trap zone)
• Trading directly at news time (wait for spike/reaction)
• Ignoring ADR (if ADR is already complete, expect reversal)
• Entering too early before confirmation candle
• Big stop losses — you want sniper entries with tight stops
Step 1: Mark the Previous Day’s High/Low
• Use ADR to mark extremes
• Expect stop hunt near these levels
Step 2: Identify M/W Forming
• Look for 3 peaks/bottoms
• Wait for the final push and reversal
Step 3: Watch Session Opens
• London/NY open is often the trigger zone
• Observe price action closely 15–30 mins after open
Step 4: Wait for Confirmation
• Engulfing / Pin bar / Rejection candle
• 5 & 13 EMA cross
• TDI green crossing red & bouncing off band or base
• Align with 800 EMA and 50 EMA direction
Step 5: Enter the Trade
• Enter at or near confirmation candle close
• Stop loss: Just outside the trap wick (10–20 pips)
• Take profit: 1:3 or ride with trailing stop
⸻
7. BONUS: HIDDEN TRICKS
• Draw M/Ws on the 5M but validate them on the 15M
• Use the 800 EMA to see where the overall bias is
• Mark the 1st leg of M/W — wait for trap above/below
• Timing matters more than signals — don’t force entries outside session windows
Disclaimer:
This idea is for educational and informational purposes only. It is not financial advice or an investment recommendation. I do not offer any financial services or paid mentorship. Always do your own research before making trading decisions.
Market Structure Shift Meaning and Use in ICT TradingMarket Structure Shift Meaning and Use in ICT Trading
In ICT (Inner Circle Trader) trading, understanding Market Structure Shifts (MSS) is crucial for accurately interpreting market trends and making informed trading decisions. This article delves into the significance of MSS, its distinct indicators, and how it integrates with other trading elements like Breaks of Structure and Changes of Character.
Understanding Breaks of Structure and Change of Character
Comprehending the dynamics of Breaks of Structure (BOS) and Change of Character (CHoCH) can be crucial for analysing market trends. A Break of Structure occurs when price levels move beyond established support or resistance areas, indicating a potential continuation or acceleration of the current trend. For example, in an uptrend, a BOS is identified when prices break above a previous resistance level, suggesting further upward movement.
Conversely, a Change of Character signifies a possible shift in the market's direction. This occurs when the price action breaks against the prevailing trend, challenging the recent high or low points that served as market barriers. A CHoCH often raises a red flag about the sustainability of the current trend. For instance, in a sustained uptrend, a CHoCH would be marked by a significant downward breach that violates a previous low point, hinting at a weakening of bullish momentum.
Both BOS and CHoCH are pivotal in the ICT (Inner Circle Trader) methodology, where they are used to gauge market sentiment and potential shifts in trend dynamics. Traders monitor these patterns to adjust their strategies, whether to capitalise on the continuation signalled by a BOS or prepare for a trend reversal suggested by a CHoCH.
What Is a Market Structure Shift?
MSS, meaning a Market Structure Shift, is an indicator of a significant change in the prevailing trend, marked by a series of patterns that suggest a reversal is imminent. An ICT MSS is more than a simple Change of Character (CHoCH); it includes additional signals that strengthen the case for a directional change.
The process begins with a shift in market structure that fails to sustain the ongoing trend. For example, during an uptrend, the market might fail to make a new higher high, instead forming a lower high. This initial deviation raises a caution flag about the trend’s strength.
The confirmation of an MSS in trading occurs when there is a decisive break of a significant swing point, accompanied by a strong impulse move that deeply penetrates through this point, known as a displacement. This displacement is critical—it’s not merely a slight breach but a robust move that clearly indicates a shift.
In essence, an MSS signals that the current market momentum has not only paused but is likely reversing. For traders, this is a pivotal moment: the lower highs in an uptrend or the higher lows in a downtrend prior to the break suggest that a new opposite trend is starting to take shape.
How to Use a Market Structure Shift in Trading
An MSS ultimately serves as a directional tool. It helps traders understand when a potential trend reversal is underway, enabling them to align their strategies with the new market direction.
To effectively use an MSS in trading, traders often follow these steps:
- Observing Current Market Structure: They start by analysing the existing trend direction and key price levels. Understand whether the market is in an uptrend, downtrend, or sideways movement by identifying patterns of higher highs and higher lows or lower highs and lower lows.
- Watching for a Break in Key Levels: The core of an MSS is the break of an important high or low, combined with a sharp price movement that breaches a significant swing point (displacement).
- Confirming with News Releases: MSS often coincides with major economic announcements or news releases that can affect market sentiment significantly. For example, if there's a report indicating unexpectedly high US inflation rates, and this correlates with a sharp downward movement in EURUSD, it provides additional confirmation of the MSS. A stronger dollar against the euro, in this case, would signal a clear shift in market direction towards favouring the dollar.
By recognising these elements, traders can more confidently anticipate and adapt to changes in market direction. A well-identified MSS not only indicates a pause in the current trend but also the establishment of a new trend.
Using Market Structure Shifts With Other ICT Components
Using Market Structure Shifts with other Inner Circle Trader methodology components like break of structure, order blocks, and fair value gaps may enhance a trader's ability to interpret and react to market dynamics.
Integrating MSS with ICT Market Structure
An MSS identifies a potential reversal in the market’s direction. When an MSS occurs, it often leads to the formation of a new high-low range in the direction of the new trend. For example, if a bearish MSS results in a new lower high and lower low, traders can watch for a BOS of this range. A retracement back inside of the new range can signal a decent area to search for an entry to ride the trend that’s just beginning.
Utilising Order Blocks and Fair Value Gaps
However, there are scenarios where the price doesn’t establish a new high-low range but instead returns to the area where the original displacement occurred. This displacement often leaves behind a fair value gap and an order block.
- Fair Value Gap: This is a price range that the market skips over quickly during a displacement, leaving it untested by typical market trading. It often acts like a vacuum, drawing the price back to fill in the gap at a later stage.
- Order Block: An order block is typically a consolidation area that precedes a strong price move and is considered a footprint left by institutional traders. It represents levels where significant buying or selling occurred, potentially acting as support or resistance in future price movements.
If the price returns to fill a fair value gap and enters the order block, this scenario can provide a potent setup for a reversal. Traders might look for confirmatory signals at these levels to enter trades that anticipate the market returning to its previous course or extending the reversal initiated by the MSS.
The Bottom Line
The insights provided on MSS and its application within the ICT trading framework can be instrumental for any trader seeking to navigate the complexities of the market effectively. To put these strategies into practice and potentially improve your trading outcomes, practice a lot and learn more about ICT trading.
FAQs
What Is a Market Structure Shift?
A Market Structure Shift (MSS) indicates a potential reversal in market trends, marked initially by a lower high in an uptrend or a higher low in a downtrend, followed by a displacement—a significant and rapid price movement that decisively breaks through a key market level.
How to Identify Market Structure Shift?
Identifying an MSS involves observing for early signs of trend weakening (lower highs or higher lows) and waiting for a subsequent displacement that confirms the shift. This displacement should significantly penetrate a key swing point, clearly indicating a new direction in market momentum.
What Is the ICT Method of Trading?
The ICT (Inner Circle Trader) method of trading is a comprehensive approach that utilises various trading concepts such as market structure, order blocks, and fair value gaps, focusing on how institutional traders influence the market. It emphasises understanding and leveraging these components to align trading strategies with probable market movements.
What Is the Difference Between MSS and BOS in ICT?
In ICT, a Market Structure Shift (MSS) refers to a potential trend reversal, confirmed by a lower high/higher low followed by a displacement. A Break of Structure (BOS), however, simply indicates the continuation or acceleration of the current trend without necessarily suggesting a reversal, marked by the breach of a key high or low point within the ongoing trend direction.
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.
Beneath the Blocks: The Real Tech That Powers CryptoCrypto is more than coins and charts. That’s the surface most traders never look beyond.
It's a stack of revolutionary technologies working together to build the future of finance, data, and trust.
But if you’re serious about understanding crypto’s long-term value—or timing its major shifts—you need to grasp what lies beneath.
Here’s your deep-dive into the true foundations of the crypto ecosystem:
🔸 1. DeFi (Decentralized Finance)
DeFi is crypto’s answer to traditional banking—without banks.
Instead of loan officers or custodians, you interact with smart contracts that handle everything from borrowing, lending, to trading.
Protocols like Aave, Compound, and Uniswap allow users to earn interest, provide liquidity, or borrow assets— permissionlessly.
No KYC. No intermediaries. Just wallets and smart contracts.
Total Value Locked (TVL) across DeFi platforms has been a major leading indicator for altcoin seasons.
📚 Why it matters: DeFi is crypto's real-world use case—and its biggest battleground for regulation.
🔸 2. Proof of Work (PoW)
PoW is Bitcoin’s original consensus mechanism.
It secures the network by requiring miners to solve complex math problems (hashes). Whoever solves the block gets rewarded with BTC.
This is energy-intensive, but it’s what makes Bitcoin nearly impossible to attack.
It aligns incentives: miners secure the network in return for rewards.
📚 Why it matters: PoW is the most proven security model in crypto—but it’s also under pressure for its energy costs.
🔸 3. Proof of Stake (PoS)
PoS replaces miners with validators—chosen based on how much crypto they “stake” (lock up) as collateral.
Used by Ethereum 2.0, Solana, Avalanche, Cardano, and many others.
It’s energy-efficient and enables faster, cheaper transactions.
Validators get rewarded in native tokens (e.g., ETH) for proposing and verifying blocks.
📚 Why it matters: PoS is scalable and green, but centralization risks arise if large players control too much stake.
🔸 4. Energy Consumption
PoW networks like Bitcoin consume significant electricity due to mining.
Critics argue this is wasteful.
Proponents argue it's essential for decentralized security and global financial sovereignty.
Solutions being explored:
Renewable-powered mining
Off-grid operations
Transitioning to PoS (as Ethereum did)
📚 Why it matters: Sustainability is a battleground narrative—especially as institutional adoption grows.
🔸 5. Hash (Hash Function)
A hash is a one-way cryptographic function that transforms any input (a transaction or block) into a fixed-length output.
Bitcoin uses SHA-256.
Changing just one character in the input changes the entire hash—making tampering obvious.
📚 Why it matters: Hashes secure every block, transaction, and address—forming the cryptographic backbone of all blockchains.
🔸 6. Smart Contracts
Smart contracts are self-executing agreements written in code, deployed on-chain.
“If X happens, do Y.” No lawyers, no third parties.
Enabled NFTs, DeFi, DAOs, and much more.
Popular platforms:
Ethereum (Solidity)
Solana, Avalanche, BNB Chain, etc.
📚 Why it matters: Smart contracts are what make blockchains programmable. This is the difference between BTC (digital gold) and ETH (Web3 platform).
🔸 7. Distributed Ledger
A distributed ledger is a database that is shared, synchronized, and accessible across multiple nodes.
Every node stores a full copy of the blockchain.
Consensus ensures all copies are aligned.
Immutable: You can only add to it, not edit or delete.
📚 Why it matters: This is what decentralization looks like. No single point of failure. Trust is built into the architecture.
🔸 8. Blockchain Technology
Think of blockchain as a chain of blocks, where each block stores transaction data and a hash of the previous block.
It’s:
Transparent: Anyone can audit it.
Secure: Tampering with one block invalidates the chain.
Decentralized: Run by thousands of nodes worldwide.
📚 Why it matters: Blockchain is the foundational tech. Coins come and go—but the architecture is the real revolution.
💡 Nerdy Tip:
Don’t just trade what you see. Learn what drives it.
The real edge in crypto comes from understanding the mechanics—before they show up in price action.
put together by : Pako Phutietsile as @currencynerd
Decoding Momentum with Precision: Absolute Strength HistogramMomentum is more than just a buzzword—it’s the pulse of price action. The Absolute Strength Histogram v2 is a powerful open-source indicator that brings that pulse to life, helping traders visualize the ongoing tug-of-war between bulls and bears with clarity and precision.
In this post, we’ll explore how this tool works, how we use it at Xuantify, and how you can integrate it into your own trading strategy to sharpen your edge.
🔍 What Is the Absolute Strength Histogram ?
Originally developed by jiehonglim , this indicator is a refined version of the classic Absolute Strength Histogram. It measures the relative strength of buyers and sellers and plots it as a color-coded histogram.
Key Features:
Color-coded bars to reflect bullish or bearish dominance
Clear visual cues for trend strength and exhaustion
Helps identify trending vs. ranging market conditions
Open-source and customizable
Unlike traditional oscillators, this histogram doesn’t just show overbought or oversold—it shows who’s in control , and how strongly.
🧠 How We Use It at Xuantify
At Xuantify, we use the Absolute Strength Histogram as a momentum confirmation tool within our multi-layered trading models. Here’s how:
1. Trend Confirmation
We look for alignment between price structure and histogram color. For example, if price breaks structure to the upside and the histogram turns green and rising, that’s a strong confirmation of bullish momentum.
2. Divergence Detection
When price makes a new high but the histogram prints a lower high, it signals momentum divergence —a potential early warning of reversal.
3. Range Filtering
Flat or alternating histogram bars often indicate a ranging market . We avoid trend trades during these periods and instead look for mean-reversion setups.
🧩 New: Pivot High/Low Overlay for Reversal Clarity
To make the Absolute Strength Histogram even more actionable, we’ve added a custom Pivot High/Low indicator that visually marks key swing points on the chart. This addition helps traders clearly see how the histogram behaves before, during, and after reversals .
Below an example of HTF 4H used as stronger trade confirmation:
Why this matters:
It highlights where momentum shifts align with structural turning points
It helps validate divergence signals from the histogram
It makes backtesting and visual analysis much easier
How to use it:
Watch for histogram color or slope changes near pivot highs/lows
Look for divergence between price and histogram at these pivots
Use the pivot zones as potential entry or exit points when confirmed by momentum
🔄 Does It Repaint?
One of the most common concerns with momentum indicators is whether they repaint —meaning they change past values based on future price action. The Absolute Strength Histogram is designed to be non-repainting .
Once a histogram bar is printed, it remains fixed, making it suitable for real-time decision-making and reliable backtesting . This gives traders confidence that what they see on the chart is what actually happened in the moment—not a hindsight illusion.
⚙️ Settings That Matter
The indicator comes with several adjustable parameters, but one of the most impactful is the “Indicator Method” setting.
Our recommendation:
Set Indicator Method = STOCHASTIC for smoother, more responsive signals
This setting tends to reduce noise and better capture momentum shifts
It works especially well in combination with structure-based entries
Other useful settings include:
Length – Controls the sensitivity of the histogram
Smoothing – Helps reduce choppiness in volatile markets
Color thresholds – Customize visual cues for easier interpretation
⚙️ Best Combinations with This Indicator
To maximize its effectiveness, we combine the Absolute Strength Histogram v2 with:
Market Structure Tools – Like BOS/CHOCH from LuxAlgo Smart Money Concepts
Volume Profile – To confirm strength around key volume nodes
Fair Value Gaps (FVGs) – For precision entries when histogram confirms direction
RSI or Stochastic – For additional momentum or exhaustion confirmation
This layered approach helps us filter out noise and focus only on high-conviction trades .
⚠️ What to Watch Out For
No indicator is perfect. The Absolute Strength Histogram can sometimes lag slightly in fast-moving markets. It’s best used as a confirmation tool , not a standalone signal generator.
Also, in low-volume or choppy conditions, the histogram may give mixed signals. Always combine it with structure and context.
🚀 Final Thoughts
The Absolute Strength Histogram is a clean, intuitive, and powerful tool for traders who want to see momentum clearly . Whether you’re a trend trader, scalper, or swing strategist, this indicator can help you stay on the right side of the market.
At Xuantify, we’re all about combining simplicity with precision. This tool fits that philosophy perfectly.
Add it to your chart, test it, and see how it sharpens your edge.
Fake Candle: Stop Getting Liquidated TodayA giant green candle pops up on your chart… You get excited, jump in — and boom, price dumps !
Fake candles are one of the market’s most psychological traps .
This breakdown shows how to avoid getting tricked — and even profit from them!
Hello✌
Spend 3 minutes ⏰ reading this educational material.
🎯 Analytical Insight on Dogecoin:
Dogecoin has posted an impressive 60% rally in recent weeks and is now testing the key psychological resistance at $0.25. A confirmed breakout from this level could unlock at least 22% further upside , aligning with a breakout above the descending channel toward the $0.28 target. Key daily support, Fibonacci confluence, and a rising trendline are also in play. 📉🚀
Now , let's dive into the educational section,
🧠 The Psychology Behind Candle Traps
It all starts when the market shows a sudden sharp move. A strong bullish candle — full of hope — shows up out of nowhere. But guess what? Most of the time, it’s just bait.
Smart money loves this moment — when retail traders think a moonshot is coming.
So never trust the candle’s look alone. Look deeper for confirmation.
🛠 TradingView Tools to Catch Fake Candles📊
practical tools inside TradingView that help detect false signals.
Set these up and test them live in your charting flow:
Volume Profile
Shows you where volume is really happening. No volume = no trust.
Session Volume HD
Reveals hidden session volume. If a big candle has weak session volume, that’s a red flag.
Relative Volume (RVOL)
Tells you if current volume is above/below normal.
Fake candles often come with volume mismatch.
Candle Close Timer
Shows how long until a candle closes.
Wait for that close — fake candles often flip last minute.
Multiple Timeframe Analysis
Check higher TFs before trusting the move.
Many fake candles trick you in low TFs.
Apply these directly inside your TradingView layout — it’s a game changer.
🔍 Real Candle vs Fake Candle
A real candle usually forms at a key support/resistance level with solid volume.
A fake one? Often pops up in a random zone, low volume, and before higher timeframes confirm.
Pro tip: Wait for the candle to fully close — then check if volume + structure supports the move.
📉 Rookie Mistake Alert
New traders often jump in on the first big candle they see.
Why? Because they want to be “early” and catch the move.
But in markets, patience wins — not speed.
Follow footprints, not fireworks.
🎯 Three-Step Filter For Fake Candles
Here’s your anti-fake-candle checklist:
No volume? No entry!
Confirmation over assumption. Use indicators like RSI, divergence, or MAs.
Always check the higher timeframe. Low TF = high deception.
🔄 Market Makers Love These Games
Fake candles are a classic weapon for market makers.
They know exactly when emotional traders will FOMO in.
These aren’t just candles — they’re emotional traps.
Study the trap, not just the move.
🧩 Final Takeaway & Suggestion
Fake candles aren’t just technical — they’re psychological .
Use the right tools, wait for confirmation, and don’t let your emotions lead .
Start your next analysis with a mental filter , not just a visual one.
always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅.
Give me some energy !!
✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box.
Cheers, Mad Whale. 🐋
Spinning top candle - live example (potentially)🕯️ Spinning Top candle – What It Means!?
A spinning top has:
1. Small body (open ≈ close)
2. Long upper and lower wicks
What it shows? It shows indecision between buyers and sellers after a previous move.
Ok, so what we can learn from it?
📉 We can learn how to Trade a Spinning Top candle!
THIS IS A SHORT SETUP (if confirmation follows)
Confirmation candle: A bearish candle that closes below the spinning top’s low ($106,407)
Entry: ~$106,350–106,400 (after breakdown)
Stop Loss: Above the high of the spinning top: $107,350
Take Profit: $103,800 (deeper pullback near EMAs)
Probability: 65/35 bearish if next candle confirms rejection.
Enough theory, see yourself!
How to Draw Trendline in Changing MarketHey Traders so here I wanted to illustrate how you catch the change from Uptrend to Downtrend on the charts. You never know for sure if the trend has completely changed but basically look for 3 bars that you draw a straight line and connect them together. You don't need indicators you just need to be able to draw a straight line. Buy or Sell when market touches trendline. Technical Analysis is a little bit like Art but alot of time it can work really well if you draw correctly!
So in uptrend you would be buyer at the trendline.
In downtrend you would be seller at the trendline.
Always use Risk Management! (just in case your wrong in your analysis)
Hope This Helps Your Trading
Clifford
Golden Cross? You are late! Here’s How to Get In Early.📉 “Golden Cross? No Thanks. Here’s How to Get In Early.”
By FXProfessor
Video here:
Everyone’s hyped about the Golden Cross again...
📰 “Bullish Signal!”
📈 “50 SMA crossed the 200!”
🎉 “Party time!”
Let me stop you right there.
If you’re waiting for that cross to go long —
You’re not late.
You’re definitely late.
The Golden Cross is a lagging indication.
It’s the afterparty. The smart money already had the drinks and left.
🔍 Here's the deal:
✅ Golden Cross forms after the move
✅ Price is usually already up double digits
✅ Sometimes it triggers right before a top
✅ Even EMAs (which I prefer) are still confirmation tools
✅ The real edge? Structure. Trendlines. Pressure zones.
📊 What I use instead:
-Custom EMAs that react faster
-My signature parallelogram method for early pressure
-Focus on trendlines and structure
-Above all — logic, not hype
- Fundamentals first!
For example, while the Golden Cross just printed, I was already watching $74,394 and $79,000.
Why? Because pressure builds before indicators react.
That's where the best entries live.
So next time someone posts
“Golden Cross confirmed!” 😏 Just smile and remember:
By the time the cross lights up, I’m already halfway to the next target.
Use EMAs if you like. But structure comes first.
That’s where the party starts.
One Love,
The FXProfessor 🧠📈
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.
Exposing Price Inefficiencies: The Role of Fair Value Gaps (FVG)In the ever-evolving landscape of price action trading, one concept has gained significant traction among institutional and retail traders alike: Fair Value Gaps (FVGs) . At Xuantify, we believe that understanding market inefficiencies is key to anticipating high-probability setups—and FVGs offer just that.
🔍 What Is a Fair Value Gap?
A Fair Value Gap is a price imbalance that occurs when the market moves too quickly in one direction, leaving behind a "gap" in liquidity. This typically happens during high volatility or news-driven events, where price skips over levels without sufficient buying or selling.
In technical terms, an FVG is identified when a candle’s low (in a bullish move) or high (in a bearish move) does not overlap with the previous or next candle. This creates a three-candle structure :
- Bullish FVG : Candle 1 (bearish), Candle 2 (strong bullish), Candle 3 (bullish or neutral)
- Bearish FVG : Candle 1 (bullish), Candle 2 (strong bearish), Candle 3 (bearish or neutral)
These gaps often act as magnets for price , as the market seeks to rebalance and fill the inefficiency.
🧠 Why Do FVGs Matter?
FVGs are not just visual anomalies—they represent institutional footprints . When large orders are executed, they often cause price to move rapidly, leaving behind unfilled orders. Smart money tends to revisit these zones to complete their positions.
Key Benefits of Trading FVGs:
- ✅ High-probability entries: Price often returns to fill the gap before continuing its trend.
- ✅ Clear invalidation levels: The edges of the gap provide natural stop-loss zones.
- ✅ Works across timeframes: From scalping on the 1-minute to swing trading on the daily.
🧩 Using the “Fair Value Gap ” Indicator
To simplify the process of identifying and trading FVGs, we recommend the Fair Value Gap indicator on TradingView. This tool automatically highlights bullish and bearish FVGs, tracks their mitigation, and even provides alerts when gaps are filled.
Key Features:
- Auto-detection of bullish and bearish FVGs
- Mitigation tracking: See which gaps are filled and which remain open
- Threshold filtering: Focus on significant gaps by adjusting the minimum size
- Dynamic mode: Monitor evolving FVGs in real time
- Alerts: Get notified when price fills a gap
💡 No Repainting, No Delays
One of the most reassuring aspects of this indicator is that it does not repaint . Once a fair value gap is printed, it stays on the chart—no disappearing zones, no misleading signals.
Even better, the indicator plots FVGs in real time . It uses a three-candle structure and confirms the gap immediately after the third candle closes . This means you’re seeing valid, actionable gaps as they form—not in hindsight.
This makes the LuxAlgo FVG tool a reliable companion for both live trading and backtesting , giving traders the confidence that what they see is what the market actually delivered.
How to Use It:
1. Add the indicator : Search for “Fair Value Gap ” in the TradingView Indicators tab.
2. Adjust settings :
- Use the “Threshold %” to filter out smaller, less relevant gaps.
- Enable “Mitigation Levels” to track filled gaps.
- Use “Auto Threshold” for adaptive filtering based on volatility.
3. Trade setups :
- Contrarian : Wait for price to fill a gap and look for reversal signals.
- Trend-following : Enter trades in the direction of the gap when it forms.
⚠️ FVGs Are Not Always Honored
While FVGs offer powerful insight into market inefficiencies, it's important to remember: they are not guaranteed reversal or continuation zones . Sometimes price will blow right through a gap without reacting—especially in trending or news-driven markets.
Why this happens:
The gap may have already been mitigated on a lower timeframe
Strong momentum or macroeconomic catalysts override technical zones
The FVG is too small or lacks confluence with other key levels
How to manage this:
Always combine FVGs with structure, liquidity, and volume
Use alerts and confirmations (e.g., candle patterns or BOS/CHOCH)
Avoid trading FVGs in isolation—context is everything
🧠 Best Indicator Combinations with FVG
To increase the accuracy of FVG-based setups, we recommend combining the LuxAlgo FVG indicator with the following tools:
1. Market Structure (LuxAlgo Smart Money Concepts)
Identify breaks of structure (BOS) or change of character (CHOCH) near FVGs. Use structure shifts to confirm whether the FVG is likely to hold or fail.
2. Volume Profile or Session Volume
Confirm FVGs with low-volume nodes or volume gaps . FVGs aligning with volume imbalances are more likely to be respected.
3. Order Blocks
Look for FVGs that overlap with bullish or bearish order blocks . This confluence often signals institutional accumulation or distribution.
4. Relative Strength Index (RSI) or Stochastic
Use momentum indicators to confirm exhaustion or continuation near FVGs. For example, a bullish FVG + oversold RSI = potential long setup.
5. Liquidity Zones (Equal Highs/Lows, Swing Points)
FVGs near liquidity pools are often targeted before reversal. Combine with sweep setups for sniper entries.
Here’s a new section you can add to your blog post, focusing on the power of **Multi-Timeframe (MTF) FVG Alignments**:
🧭 Multi-Timeframe FVG Alignments
One of the most powerful ways to increase the reliability of Fair Value Gaps is by using multi-timeframe confluence . When FVGs align across different timeframes—say, a 1H FVG inside a 4H FVG zone—it often signals a high-probability reaction area .
Why it works:
Higher timeframe FVGs represent broader institutional imbalances
Lower timeframe FVGs offer precise entries within those zones
Alignment confirms that multiple layers of market participants are active in the same area
How to use it:
Start with a higher timeframe (e.g., 4H or Daily) and mark key FVGs
Drop to a lower timeframe (e.g., 15M or 1H) and look for fresh FVGs forming inside the higher zone
Wait for structure shifts or liquidity sweeps within the lower timeframe FVG before entering
This technique is especially effective when combined with tools like LuxAlgo Smart Money Concepts and Volume Profile , helping you time entries with sniper-like precision while staying aligned with the broader market narrative.
📊 Backtest It Yourself
FVGs are best understood through chart time . Load up your favorite pair on TradingView, activate the LuxAlgo FVG indicator, and observe how price reacts. You’ll be surprised how often these zones act as support, resistance, or launchpads for major moves.
🚀 Final Thoughts
Fair Value Gaps are more than just a buzzword—they’re a window into how smart money operates. By incorporating FVGs and tools like the LuxAlgo indicator , you gain a deeper understanding of market dynamics and a sharper edge in execution.
At Xuantify, we’re committed to decoding institutional logic and bringing it to the retail trader. Stay tuned for more insights, and as always— trade smart, not hard .
What Is the ICT Silver Bullet Strategy, and How Does It Work?What Is the ICT Silver Bullet Strategy, and How Does It Work?
The ICT Silver Bullet strategy offers traders a unique approach to capitalising on market opportunities during specific trading hours. This article explored this advanced strategy, explaining the role of fair value gaps, liquidity, and timeframes and how to implement it.
Understanding the ICT Silver Bullet Strategy
The ICT Silver Bullet trading strategy is a sophisticated trading methodology developed by Michael J. Huddleston, known as the Inner Circle Trader, or ICT. This strategy is designed to capitalise on specific, high-probability trading opportunities that align with certain times throughout certain sessions, specifically the London and New York sessions.
Central to the ICT Silver Bullet strategy are two key concepts: liquidity and fair value gaps. Liquidity in this context refers to places within the market where there is significant trading activity, often indicated by previous highs and lows of a trading session or historical price points that attract significant interest from traders.
Fair value gaps are price areas that were either skipped over quickly during rapid price moves or areas where the price has not returned for a significant period, reflecting a disparity between perceived value and market price.
The strategy's effectiveness hinges on executing trades during specific one-hour windows known as Silver Bullet times. By focusing on these concepts and timings, traders can more accurately analyse market movements and align their trades with the influxes of smart money, potentially improving their returns by catching swift moves towards liquidity points.
Key Components of the Strategy
The Silver Bullet ICT strategy employs a detailed approach to trading that revolves around understanding market dynamics at critical times. Here are the key components that define this strategy:
Fair Value Gaps
A fair value gap (FVG) occurs when the price quickly moves away from a level without significant trading occurring at that price, leaving a "gap" that is likely to be tested again when the price returns to this point. In the context of the ICT Silver Bullet strategy, these gaps are targeted because they represent potential inefficiencies in the market where the price may return to balance or fill the gap. Traders using this strategy watch these gaps closely as they often present clear entry points when approached again.
Liquidity Targets
Liquidity targets are essentially areas where there is expected to be a significant volume of orders, which can lead to particular price movements when these levels are approached. These include:
- Previous session highs and lows: These are often areas where stop-loss orders accumulate, making them prime targets for liquidity-driven price moves.
- Swing points in the market: Key reversals and continuation points that have historical significance.
- Psychological levels: These include round numbers or price levels ending in '00' or '50', which often act as focal points for trading activity.
Specific Trading Times
Unlike many strategies that align strictly with market opening times, the ICT Silver Bullet trading strategy utilises specific one-hour windows during the day when liquidity and volatility are expected to be high due to trader participation across the globe. These Silver Bullet hours are strategically chosen based on their potential to tap into significant market moves:
- London Open Silver Bullet: Occurs from 3:00 AM to 4:00 AM Eastern Standard Time (EST) in winter and from 2:00 AM to 3:00 AM in summer, which is 8:00 AM to 9:00 AM Greenwich Mean Time (GMT) in winter and 7:00 AM to 8:00 AM in summer.
- New York AM Session Silver Bullet: From 10:00 AM to 11:00 AM EST, translating to 3:00 PM to 4:00 PM GMT.
- New York PM Session Silver Bullet: From 2:00 PM to 3:00 PM EST or 7:00 PM to 8:00 PM GMT.
These time slots are selected based on historical data showing heightened trading activity and, therefore, increased opportunities to capture moves towards identified liquidity targets.
Implementing the ICT Silver Bullet Strategy
Traders utilising the ICT Silver Bullet strategy typically prepare by marking potential fair value gaps and liquidity targets before these key trading times. As these windows approach, they monitor price action closely for signs that the market is moving bullishly or bearishly toward these liquidity points, enabling them to search for an entry.
Note that because this is an intraday strategy, ICT says it’s better to use a 15-minute timeframe or lower. Most traders use the 1-minute to 5-minute for the Silver Bullet setup, though those inexperienced with the strategy may prefer the 5-minute.
Here’s a breakdown of the strategy:
Entry
- Market Direction and Liquidity Analysis: Before the designated Silver Bullet timeframes, traders perform a detailed assessment of the market direction on higher timeframes, such as the 15-minute to 4-hour charts. This initial analysis is crucial to align their strategies with the market's overall momentum.
- Identifying Key Liquidity Points: Traders also mark significant liquidity targets during their analysis, such as previous session/day highs and lows. These points are expected to attract significant trading activity and thus are critical for planning entry points.
- Formation of Fair Value Gaps (FVG): During the Silver Bullet hours—specifically from 3:00 AM to 4:00 AM, 10:00 AM to 11:00 AM, and 2:00 PM to 3:00 PM EST—traders watch for the market to approach these liquidity points and leave behind a Fair Value Gap. This movement is essential as it indicates a potential inefficiency in price that the market may seek to correct.
- Setting Limit Orders at FVGs: Once an FVG is identified, traders set their limit orders at the boundary of the FVG closest to their intended trade direction. If aiming for a long position, the order is placed at the top of the FVG; for a short position, at the bottom. This method allows traders to potentially enter the market as it moves to 'fill' the gap, aligning with the initial momentum assessment and the subsequent market reaction to liquidity levels.
Stop Loss
- Initial Placement: Traders typically place stop-loss orders to potentially manage risk tightly with respect to the FVG's structure. If trading long, the stop loss might be set just below the low of the candle that forms the FVG; if trading short, just above the high.
- Swing Points: Alternatively, stop losses might also be placed beyond recent swing highs or lows, providing a buffer against market volatility and minor fluctuations that do not affect the overall market trend.
Take Profit
- Targeting Liquidity Points: The common practice for setting take-profit points involves aiming for the next significant liquidity target identified during the preparatory phase.
- Risk-to-Reward Considerations: Many traders set their take-profit goals based on a calculated risk-to-reward ratio, often aiming for at least a 1:2 ratio. This means that for every unit of risk taken, two units of reward are targeted. In terms of pips, traders generally look for at least 15 pips when trading forex and 10 points in indices.
EUR/USD Example
In the provided EUR/USD chart example, a detailed analysis of higher timeframes has established a bearish outlook. Consequently, the focus is on identifying short trading opportunities while disregarding potential long setups.
During the 8:00 AM to 9:00 AM GMT window, there's a noticeable Fair Value Gap (FVG) that forms following a swift rejection from an upward move. This price action reflects a viable entry point for a short position. Traders could place a limit order at the bottom boundary of the candle that initiated the FVG, with a stop loss positioned just above the candle's high or the nearby swing point high, depending on their risk tolerance. The target for this trade is set at the previous day's low, which is reached and prompts a short-term reversal in price direction.
Later in the day, between 7:00 PM and 8:00 PM GMT, another FVG develops. Following the same principle, we can enter at the bottom of the FVG. Setting a stop loss above the swing high is considered more prudent than directly above the candle high, which in this case would likely lead to a stop-out due to the tightness of the entry. Since the previous day’s low has already been reached earlier, the next logical target is the low of the US session, aligning with the day's bearish momentum.
The Bottom Line
The ICT Silver Bullet strategy provides a precise framework for traders looking to exploit specific market conditions tied to the rhythmic movements of liquidity and price during crucial trading hours. By focusing on fair value gaps and strategic entry points, traders can align their actions with significant market forces.
FAQs
What Is the Silver Bullet Strategy in Trading?
The Silver Bullet strategy in trading is a specific, time-sensitive approach designed to capitalise on liquidity and fair value gaps that typically form during key periods of market volatility. Developed by Michael J. Huddleston, also known as ICT, it aims to take advantage of the movements that occur when the market reacts to these gaps during certain hours of the trading day.
What Time Is the Silver Bullet Strategy?
The Silver Bullet strategy is executed during three distinct one-hour windows corresponding to heightened market activity periods. These are:
- London Open Silver Bullet: Occurs from 3:00 AM to 4:00 AM Eastern Standard Time (EST) in winter and from 2:00 AM to 3:00 AM in summer, which is 8:00 AM to 9:00 AM Greenwich Mean Time (GMT) in winter and 7:00 AM to 8:00 AM in summer.
- New York AM Session Silver Bullet: 10:00 AM to 11:00 AM EST (3:00 PM to 4:00 PM GMT).
- New York PM Session Silver Bullet: 2:00 PM to 3:00 PM EST (7:00 PM to 8:00 PM GMT).
How Long Does Silver Bullet Last?
As an intraday trading strategy, the Silver Bullet targets quick, short-term trades within specific one-hour windows. The trades are typically intended to be closed by the end of the trading day, capitalising on rapid movements towards and away from liquidity points.
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.
The Invisible Hand in Crypto: Are We Just Puppets?You think you’re trading based on your analysis?
Maybe you’re just thinking that.
The crypto market might be far more controlled than you realize — here’s how, when, and why .
Hello✌
Spend 3 minutes ⏰ reading this educational material.
🎯 Analytical Insight on Ethereum:
Following its impressive recent rally, ETH continues to show strength, supported by high volume and a clear bullish market structure. A key daily support—confluent with the Fibonacci zone and an ascending trendline—remains intact. My main target stands at the psychological $3,000 level, implying ~16% upside potential if momentum sustains. 🔍
Now , let's dive into the educational section,
📊 TradingView Tools: Decoding the Minds of the Whales
In a market where price moves often feel pre-scripted, precision tools aren’t a luxury — they’re survival gear. TradingView offers indicators like Accumulation/Distribution, On-Balance Volume, Smart Money Concepts, and Liquidity Heatmaps that help you spot where big money is entering or exiting . These tools, especially on higher timeframes, can reveal underlying accumulation or distribution before major moves happen. For instance, if OBV rises while price remains flat, whales might be silently building positions. Also, indicators like Whale Alerts, based on on-chain analysis, can show large transactions often tied to upcoming volatility. Combine this with tools like Volume Profile or classic trendlines, and you’re no longer chasing price — you’re anticipating it.
🎯 Collective Behavior or Whale-Orchestrated Moves?
Markets — especially crypto — haven’t moved on simple supply and demand for a long time. Many of the price spikes or dumps you see aren’t organic; they’re orchestrated. Big players with massive volumes steer liquidity to where they want it.
🧠 Retail Psychology: A Weapon in Bigger Hands
Why do you always enter after a pump? Why does the market bounce right after you panic sell? These are not coincidences. Fear and greed are weapons. Smart money knows exactly how to trigger emotional trades from retailers, turning those reactions into their profits.
🔄 The Recycled Trap Scenarios
Here’s a classic: sudden green candle to trigger FOMO, followed by a slight dip, more retail buys in, then a sharp dump — liquidity collected. If this sounds familiar, it’s because it keeps happening. Those who spot it early survive.
📉 It’s About Liquidity, Not Your Support Line
Whales don’t care about your trendlines. They care about liquidity. If you know where most long or short positions are placed, you can often predict the next market move. TradingView indicators help identify liquidation zones — follow them.
🕹 You’re Just a Pawn — Unless You Learn the Map
If you’re just reacting candle by candle, you’re losing. But when you start thinking like whales, understanding their setups, you flip from pawn to player. Sentiment tools, volume flow, and behavioral indicators are your way out of the trap.
📌 Final Words
If you thought your analysis was behind your trades — think again. Smart money plays by a plan, and TradingView’s tools help you see the blueprint. Don’t be manipulated — learn to move like the movers.
always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅.
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