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Forex Trading Strategies Reddit: What you need to know to start Forex trading.

Forex Trading Strategies Reddit: What you need to know to start Forex trading.

FOREX Strategies

What are FOREX Strategies?
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You may have noticed that most of people confuse the terminology and refer to FOREX Strategies in the wrong way. There are methodologies, systems, strategies, and techniques. The most effective methodology is Price Language (Trend Tracking). Combined with a correct reading of mass psychology presented by the charts.
We know that in the Stock Markets there are thousands of strategies. FOREX, like the rest of the markets, presents you with the opportunity to apply similar strategies to win consistently. Taking advantage of repetitive psychological patterns.
First, the Price Language methodology has created great fortunes in FOREX, and the next fortune may be yours. But this methodology must be implemented within a framework of advanced concepts of Markets. Without forgetting the basics. And working hard day by day.
Second, a strategy is a set of parameters and techniques that together give you the advantage to act in any situation. Thus for example in war, generals have attack strategies and counterattack strategies.
FOREX strategies alike are entry strategies and exit strategies. All beginners should know these FOREX strategies for beginners. That way you will get a general idea of ​​the game and understand that trading is a war against the Market and its Specialists. Only applying FOREX strategies revealed by the same Specialists and using their own techniques,
... you can survive in this war.
Do not fall into the trap of the many "systems" and "methods" that are offered on the internet about operating in the FOREX Market. They just don't work in the long run. They are strategies based on indicators for the most part. Using rigid parameters. That if they can work and give profitability during a certain period of time, they will always reach a breaking point when the market changes its dynamics.
Instead, take advantage of your precious time and learn the Language of Price or Price Action.
The Language methodology will allow you to adapt to each new phase of the Market. If you combine this knowledge with the appropriate psychological concepts, you can live comfortably from speculation in FOREX.

Forex Trading Strategies Reddit - Basic FOREX Strategies

You have two basic FOREX strategies, one entry, and one exit. Both follow a general strategy that helps you capitalize on the collective behaviors of the Market. That is, of the total of participating speculators.
This behavior causes the formation of cycles that repeat over and over again. Driven by the basic emotions (uncertainty, greed, and panic) of the speculators involved that can be taken advantage of with the aforementioned FOREX strategies. Specialists identify these emotions in the order flow and capitalize on these events every hour, every day, and every month.
Basic FOREX Strategies - The Price Cycle
These repetitive cycles consist of 4 phases:
  1. Accumulation
  2. Upward trend
  3. Distribution
  4. Downward trend
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The two trends can be easily identified by their notorious breakdown. And the two areas of uncertainty (accumulation and distribution), due to their notorious range trajectories.
This general behavior determines the core of our FOREX strategies.
You buy when the price of a pair has broken and has come out of one of its congestion formations (accumulation or distribution). You implement one of the Forex strategies, in this case, the entry one.
The multi-time technique will help you find the point of least risk when entering your initial buy or sell order. In the same way and using the same strategy but this time to close your position, the multiple timing technique will also show you how to close your operation obtaining the highest possible profit.
The most consistent way to extract profits in the market is by trading the start of trends within a cycle . Once confirmed by their respective breaks from the areas of uncertainty. This is the mother of all FOREX strategies . And in a market that operates 24 hours, we have more frequent cycles and therefore more opportunities.

Forex Trading Strategies Reddit - Advanced Forex Strategies

There are many advanced FOREX strategies that are generally used by professional speculators working for large financial firms.
Among these firms are banks, Investment Fund managers and Hedge Fund managers. The latter is an investment modality similar to Investment Funds, with the difference that Hedge Funds use more complex investment strategies. Its operations are more oriented to aggressive speculations in the short and medium-term.
Among the most common strategies is hedging (hedging), carry trade, automated systems based on quantum mathematics. And a large number of combinations between the different option strategies.

The Carry Trade

The central idea of ​​Carry Trade is to buy a pair in which the base currency has a considerably higher interest rate than the quoted currency. To earn the difference in rates regardless of whether the price of the pair rises or falls.
Suppose we buy a $ 100,000 lot of AUDJPY, which according to the rates on the chart would turn out to be the ideal instrument in this example to use the Forex carry trade strategy.
As our capital is in US dollars we have to assume for our example, the following quotes necessary to perform the place calculations:
AUD / JPY = 80.00 USD / JPY = 85.00
What happens internally in your broker is this.
  1. By placing as collateral $ 1,000 of your $ 50,000 of capital (assumed for this example), deposited in your account, you have access to $ 100,000 virtual (this is what is known as leverage); that is, you put in $ 1,000 and your broker lends you 99,000.
  2. With those $ 100,000 virtual dollars, your broker borrows on your behalf ¥ 8,500,000 Japanese yen (85 × 100,000) at 0.1% annual interest from a Japanese bank.
  3. With those ¥ 8,500,000 Japanese yen, your broker buys A $ 106,250 Australian dollars (8,500,000 / 80) and deposits it in an Australian bank where it receives 4.5% annual interest on your behalf.
  4. One year later (and regardless of the profit or loss generated by the pair's movement), your profit will be the difference between the AUD rate and the JPY rate, that is:
Profit = (AUD rate) - (JPY rate) - (costs of the 2 currency exchanges) Profit = (4.5%) - (0.1%) - (0.1% to 1%)
The great advantage of carry trade FOREX strategies is that this percentage profit is applied to the $ 100,000 of the standard lot; the broker transfers all of the profit to you, even if you only contributed $ 1,000. On the other hand, if you carry out the inverse of this operation, this benefit of the Forex carry trade becomes a cost (swap), and you assume it completely.
Remember that FOREX carry trade strategies are recommended for pairs with considerable interest rate differences, such as the one we have just seen in our example.
These FOREX strategies should also not be used in isolation. The idea is that through technical analysis you identify when would be the ideal time to enter the market using your carry trade Forex strategy and multiply your profits considerably.

What FOREX Strategies Do Hedge Funds Use?

The FOREX strategies used by large fund managers do not constitute an advantage in terms of percentage results for them, nor do they constitute a competitive disadvantage for you.
The vast majority of them fail because of their big egos. In fact, there was a firm made up of great financial geniuses, including 2 winners of the Nobel Prize in Economics, who developed a strategy based on quantum mathematical calculations.
With an initial base capital of about 3 billion dollars, and after 3 successful years obtaining annual returns of over 40%, the firm Long-Term Capital Management, begins its fourth year with losses. To counteract these losses the geniuses decide to multiply the initial capital several times, while the losses continued.
The year closed with the bankruptcy of the fund, and with a total accumulated loss of 1 trillion dollars, due to the great leverage used. And all for not admitting that the FOREX Strategies of Long Term Capital Management were not in line with the dynamics of the Market.
There are an overwhelming number of opportunities in the stock markets to make money interpreting the Language of Price.
You don't need to use complex "advanced" strategies that have been created to handle hundreds or billions of dollars.
The reasons for using these FOREX strategies are very different from what a "retail trader" pursues with his small speculation business.
As you can see, you should not worry about wanting to integrate any of these advanced strategies into your arsenal. They are only beneficial for managing hundreds or billions of dollars, where the return parameters are very different when you handle small amounts of capital.
Do not worry about collecting hundreds of free FOREX strategies that circulate on the internet, that great accumulation of mediocre information will only serve to confuse you and waste your valuable time.
Spend that time learning Price Action,
… And you will always be one step behind the Specialists, identifying each new Market condition, and anticipating the vast majority of reversals of all prices.
Ironically, the most successful fund managers indicate that their most profitable trades are those based on the basic trend-following strategies of the Price Language. The same ones that you will learn in this Free Course.
Dedicate yourself to perfecting them and believe me you won't need anything else. As long as you have good risk management, taking into consideration the following points ...

Styles of Investments in FOREX

The Investment FOREX long term is not recommended for small investors like you and me. If we take into account the term investing literally as large investors do who buy a financial product today to sell it years later.
We both have a better niche in the short and medium-term.
You may have noticed that the big multi-year trends in the Forex Market do exist. But minor swings within a big trend are usually very wide.
These minor movements allow us to easily double and triple the annual return of the big general trend, motivating most traders to speculate in the short and medium-term.
These minor oscillations or trends that occur within the large multi-year trends owe their occurrence mainly to two reasons.
First, the FOREX Market presents 3 sessions a day each in different cities of the world with different time zones (Asia, Europe, and America). This causes more frequent trend changes than in the rest of the stock markets.
Second, the purpose for which it was created also plays a role. The modern Foreign Exchange Market, since its inception in 1972, was conceived by the global financial system as a tool for speculation. To obtain benefits in the short and medium-term (from several days to 1 year).
These two points are basically the reasons why we observe the immense speed with which the FOREX market changes trends.
For example, for those who live in America, in the early morning (Europe) the EURUSD pair may be on the rise, in the morning or afternoon (America) it may be down, and then finally at night (Asia) it may return to the rise.

Define your Own Style for your FOREX Investments

One of the first decisions you will have to make is to choose your style as a trader or investor.
There are 4 types of well-defined styles.
Most professional traders tend to have multiple styles, although they always identify with one primary style for their FOREX investments. Study the characteristics of the 4 main styles to make your investments in FOREX :
1. Long Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per month to their investments in Forex. The period of an open position ranges from 1 year to 5 years.
2. Medium Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per week to their investments in Forex. The period of an open position ranges from 1 month to 1 year.
3. Short Term: recommended for anyone who is going to enter the market for the first time, or who already has a certain time operating in the long and medium-term, showing constant profits, and who can dedicate a minimum of one hour per day to your investments in FOREX. The period of an open position ranges from 1 day to 1 month.
4. Intraday : recommended only for people with a fairly solid earnings record in the short term, and with a capital greater than $ 50,000. As we have noted, this option constitutes a full-time job.
People who start investing in FOREX , should start executing short-term (weeks) and medium-term (months) transactions only, and not pay attention to intraday oscillations (day trading).
If you are interested in being an intraday speculator, I recommend that you first exhaust at least a year doing operations in the short and medium-term to assimilate the correct strategies and to develop the necessary mentality to carry out this work.
The second option would be to participate in some kind of intensive training.
I remind you that self-educating is almost impossible in speculation. You are likely to accumulate a lot of knowledge by reading books and attending courses. But you will probably never learn to make money with all the incomplete "systems" circulating on the internet.

Mistakes to Avoid When Looking for Your Style

Many people who are new to FOREX investments make the mistake of combining these styles, which is a key to failure.
I recommend that if you are not getting the results you expected by adopting one of these styles, do not try to change it. The problem sure is not in the style, but in your strategies or in your psychology.
A successful investor is able to make a profit in any longer trading time than he is used to. I explain. If you are already a profitable operator in the short term, it is very likely that you will also be profitable in the medium and long term,
… As long as you can interpret the Language of Price or Price Action.
In the opposite case, the same would not happen. If you were a medium-term trader, you would need time to adjust to the intraday. The reality is that long, medium and short term traders have very similar personalities. The intraday trader is completely different.

The Myth of the Intraday in Investments in FOREX

If you are already successful in the short, medium and long term, you will notice that the sacrifice and the hours necessary in front of the computer to operate intraday is much greater. The intraday style will be useful to increase your account if it is less than USD $ 100,000 in a very short time in exchange for 8 to 12 hours a day of hard work but ...
You must first develop the necessary skills to operate the intraday.
The ideal is to combine all the styles to get more out of the Market and carry out more effective transactions and have a diversification in your investments in FOREX.
There are intraday traders that are very successful, but the reality is that there are very few in the world that make a profit year after year. If you want to become an intraday, you just have to prepare yourself properly through intensive training.
Otherwise, I recommend that you don't even think about educating yourself to adopt the intraday style. It is not necessary to go against a probability of failure greater than 99%. Unless
... your ego is greater than your common sense.
The main reason why this style of investments in FOREX is not recommended for the vast majority of us "retail investors" (the official term "retail traders"), is the high operational cost.
The real commissions in this market range between $ 2.0 and $ 2.50 for each lot of 100,000 virtual units. This means that a complete operation (opening and closing) is approximately $ 5.00, for each standard lot traded ($ 100,000 virtual).
Another fundamental reason is the advent of robotic traders (HFT = High-Frequency Trading), which tend to manipulate the market in the shorter intraday swings. Please do not confuse HFTs with automated systems that we find daily on the internet, and that can be purchased for a few hundred dollars and often for free on FOREX forums / groups.
These HFTs to which I refer, they are effective. They cost millions of dollars and have been developed by the large Wall Street financial firms to manage their investments in FOREX.
The reality of the intraday trader is that you execute orders for large lots at the same time, to profit from the smallest movements in the market. It is an activity based on reflexes. The slightest oversight or distraction can turn into a catastrophe for your FOREX investments.
I recommend that you start investing in FOREX using slow time periods such as H4 or Daily. For some reason, all Goldman Sachs intraday FOREX investments are made with algorithms.

Finally…

To choose your style as a trader and manage your investments in FOREX, first determine what your degree of experience is, analyze the points mentioned below and the rest you will discover when you execute your first operations.
The points that will affect your decision are:
  • Capital
  • Time available each day
  • Level of Experience
  • Personality
Discovering your style is a search process. For some it will be a long way to find the right time frame that matches their personality. Don't be put off by the falls. After all, those who continue the path despite the falls are the ones who reach the destination.
And I hope you are one of those who get up over and over again. The next lesson will boost your confidence when you discover the main reason that moves currencies ...

Fundamental Analysis in Forex Trading Reddit

The fundamental analysis in Forex is used mostly by long-term investors. Players as we saw in the styles of operators, start a negotiation today, to close it years later.
I always emphasize the importance that the mass media give to this type of analysis to distract the great mass of participants.
It is all part of a great mass psychological manipulation. For centuries the ignorance of the masses has been organized before the great movements begin.
The important news are the macroeconomic reports published by the Central Banks and other government agencies destined for this work. All reports are made up. 99% of them are corrected months later.
These events are tools to justify fundamental analysis and price cleaning movements. Any silly headline does the job. With this, it is possible to absorb most of the existing liquidity, before the new trend phase is projected.

Reaction!

Except in rare situations, the result of an economic report of the fundamental analysis is generally already assimilated in the graph. In most cases, there are financial institutions that already have access to this information and are organizing and carrying out their operations in advance.
The phrase buy the rumor and sell the news is a very old adage on Wall Street. And its meaning contains what we have just explained. For the investor who can interpret the Language of Price, fundamental analysis is of little importance. Well, in general, their disclosure does not indicate that you have to take any action in your open trades , as long as your entry strategy provides you with a good support cushion.
This reality of fundamental analysis causes a lot of confusion for investors who lack in-depth knowledge of the forex market.

Macroeconomic Data

The data published in these events is irrelevant. Both for speculators and for the people in general. They are false. They lack reliability.
The price can go up or down with the same result of the data. The main ones are:
- Interest Rates - GDP (gross domestic product) - CPI (inflation) - ISM (manufacturing index) - NFP (payroll) - Double Deficits (deficit = fiscal + balance of payments)
If you are initiated, I recommend you avoid operating near these events. It is only a matter of having the time pending. Use the economic calendar for Fundamental Analysis of Forex Factory.
There is a probabilistic advantage in operating these fundamental analysis events. But it takes preparation, experience, and practice. They represent a way of diversifying in the general operation of a speculator.

The Uncertainty of Fundamental Analysis

On many occasions after the disclosure of an economic report, the price movement of the currency pair that is going to be affected tends to move in the opposite direction to the logic of the report.
I show you an example of a fundamental analysis report. Imagine that the EUR / USD pair is trading at 1.2500, and the FED (US Federal Reserve) issues a statement announcing that it has just raised inter-bank interest rates from 0.25 points to 0.75 points. Very positive news for the US dollar that logically implies an appreciation of the currency and consequently an instantaneous collapse of the EUR / USD pair (up the dollar and down the euro)
However, minutes after the release of said fundamental analysis report, the pair after effectively collapsing to 1.2400, returns and returns to its levels prior to the report (1.2500). This situation is very common , but it is not so easy to identify it when it is occurring, but after the damage is done.
Traps like these devour the accounts of beginners who approach the market with little experience, with weak strategies, and especially with very little experience.
That is why I reiterate that you forget the fundamental analysis for now. Just keep in mind when operating, that there is no publication scheduled nearby. Just check the economic calendar for the day and forget about the numbers. Let the economists mess around with the data.

FOREX Market Correlation

The Forex market correlation exists between pairs with similar "base" currencies and not always under the same circumstances. The correlation in the Forex market that is most followed and that has the greatest impact on fundamental analysis is that of the US dollar (USD).
The USD is the most traded monetary unit with a volume greater than 80% with respect to the rest of the currencies. This fact determines why their correlation is the most important, the most followed, and perhaps the only one worth following in the fundamental macro analysis.
The 7 major pairs are usually in sync . These 7 pairs all include the USD and present a fundamental analysis correlation almost 75% of the time. Influencing the rest of the currency pairs.

Advantages of the FOREX Market Correlation

In the fundamental analysis the most basic FOREX correlation is the following. When the USD appreciates, the USD / CAD, USD / CHF, and USD / JPY pairs tend to go up in price. This indicates that the Canadian dollar (CAD), the Swiss franc (CHF), and the Japanese yen (JPY) are losing value against the USD.
We must bear in mind that this correlation does not occur 100% of the time. In fact, the JPY generally tends to move in the opposite direction , since in recent decades this currency has been used as a source of financing to invest in other financial instruments.
On the other side is the FOREX market correlation that generates a movement almost in unison in the other 4 major pairs EUR / USD, GBP / USD, AUD / USD, and NZD / USD. These tend to fall in price, homologous the appreciation of the USD. But not always.
In this case the fundamental analysis correlation works most of the time, between 65 and 85% of the time. Small differences are noted in the extent that each of these pairs experiences.
There is also a correlation in the secondary FOREX market, where the pairs of all currencies that do not include the USD participate, but I recommend you not to waste time on them for now. There are more important things about the Language of Price to know first.

FOREX Commodity Correlation

In this part I will explain to you in a basic way the Correlation Commodities - FOREX of the fundamental analysis.
There are three currencies that have a direct correlation with commodities. They are usually called: "COMDOLLS" which is short for "Commodities Dollars" (Commodities Dollars), since all three obey the dollar denomination. These are:
- The New Zealand Dollar (NZD) - The Australian Dollar (AUD) - The Canadian Dollar (CAD)
These three currencies make up the group of the 8 largest together with the euro, the pound, the yen, the franc and the US dollar. Together, they merge to produce the major pairs traded in the FOREX Foreign Exchange Market.
The FOREX Commodity Correlation has an affinity in most cases greater than 75%. And each of them has its different raw material of correlation. You will notice that the NZD and the AUD are two currencies that act practically in unison. Both present minimal discrepancies in their fluctuations in the short, medium and long term.
This is mainly because their economies are very similar and their economic and fiscal policies are too. Their main production items also show great similarities, despite the fact that the Australian economy is much larger than the New Zealand economy.
The raw materials that follow the movement of the AUD are mainly gold and copper. If you put the history of these three quotes during the last decade of the year 2,000 together on the same chart, you will notice a very similar upward movement between the three quotes. Pure correlation of fundamental analysis.
This strong correlation with commodities in the metals area for the AUD has provided Australia with an economic advantage enviable over the other major powers that have seen their currencies devalue sharply against the AUD. At the same time, they experience a constant decrease in the purchasing power of their citizens.
The NZD maintains a correlation with raw materials related to agriculture and livestock, mainly including milk and its derivatives. It is one of the countries that dominates the world export of these economic items, and also has important exports of metals , although in smaller quantities than Australia.
Finally, you have a correlation with raw materials in the energy area. For historical reasons the CAD, which is not the largest oil producer in the world, but an important supplier to the largest consumer that is the US, has seen its currency oscillate in line with oil prices.
To make long-term investments in the Foreign Exchange Market, it is necessary to take into consideration at least one Commodity Correlation - FOREX in your fundamental analysis.

Forex Technical Analysis Reddit

The technical analysis is the methodology that interprets the movements of the price. Specialists look for liquidity to fund their business. The repetition of the strategies used by the specialists in their work generate repetitive patterns.
If you were an analyst, you would develop the visual ability to identify such patterns on a graph. If you were a programmer you would quantify them mathematically using complex formulas.
And if you could learn to interpret the Language of Price, you would have the ability to anticipate 90% of all movements that occur on a chart. And in this business, anticipating is what will make you money.
Market prices are reflected and framed on a horizontal time axis and a vertical price axis. Prices go up or down according to the aggressiveness of the participating operators. In an efficient or balanced market these oscillations should be imperceptible.
But in reality this is not the case, since the Market works thanks to the digital printing of hundreds of billions of units of paper money systematically distributed by the Central Banks through the banking system. These resources serve as a tool to manipulate 100% of the movements that occur in the FOREX Market.
Are you looking for Technical Indicators? All technical indicators were created from the 70's. How do you think that for more than 200 years the speculators of the past accumulated great wealth?
With the Language of Price. The best timing is given by the price itself. Indicator-generated entry signals usually occur at the wrong time.
The basis of technical analysis is human psychology. Unfortunately, human beings are not perfect and are loaded with emotions that dominate their behavior in similar situations, creating repetitive and highly predictable behavior when it occurs in masses.
The study of technical analysis through indicators and subjective training, originates and shapes the collective thinking on which all the traps that specialists execute every day to maintain their business are designed. If the majority won, the Market would cease to exist.
Although you already know that the patterns are not generated by the masses , but the repetitive behavior of the Specialists in the face of the action response of the masses. It is very easy for speculaists, because they can see everyone's orders in their books.
And they also exert a great influence on the decisions of the masses through the mass media. It is what I call the war between the Egg and the Stone , if you hit me you win and if I hit you also you win.

The Deception of Modern Technical Analysis

Through the centuries thousands of people have been able to extract great benefits from the financial markets by applying the basic strategies of technical analysis and the psychology of the Price Language.
More than 200 years ago when the markets began to operate officially, fundamental analysis predominated, which was only used by large financial institutions. As this analysis tool began to become popular, these institutions began to apply the strategies of technical analysis.
In recent decades and with the massification of internet technology, technical analysis has begun to be handled by anyone who has a computer with internet access. The same financial institutions, which have been present for more than a century and as a result of this overcrowding , establish a strategy to confuse and misinform about the true strategies of technical analysis.
This has been accomplished in the following manner. Currently there are hundreds, if not thousands of technical indicators that have been developed by so-called "gurus" of technical analysis and that sell their magic indicators packed in a "system" or "method" that usually cost thousands of dollars, or simply with the publication of a book with which they generate large profits. Double benefit.
The aim is to confuse the initiates in speculation and create the collective mentality that will originate the same behaviors over and over again. About 95% of these new entrants completely lose all the capital they invest in their early stages as investors.
Leaving them with a negative experience and creating the idea and the image that financial markets are an exclusive area for geniuses with high academic levels and that only they can produce returns in the markets year after year.
The initiate, having lost all his original capital, turns to these “gurus” for help and teachings. You spend more capital on the products they offer you and the cycle repeats itself . Obviously, the vast majority do not relapse and completely forget to re-engage in the stock markets.
I hope you have not been a victim of this drama.
Now I will show you the simplicity of a FOREX technical analysis , without the need to resort to any indicator as a tool to determine an effective entry or exit strategy when planning your operations.

The Price Cycle

Previously you studied in the FOREX strategies lesson, that the typical price cycle when it is reflected in a graph, presents four very specific phases and very easy to identify if you perform a technical analysis with common sense . These are:
  • Accumulation
  • Bullish trend
  • Distribution
  • Bearish trend
Remember also that the most effective way to constantly extract profits in the markets is by taking advantage of phases 2 and 4 (the trends). Combined with a correct reading of the collective behavior of the masses of speculators interpreting the Language of Price.
You will be surprised by the simplicity with which thousands of people around the world and over the centuries have accumulated large sums of money by drawing a few simple lines and applying responsible risk management with their capital.

How to Identify Trends?

Being able to determine the trend phases within the price cycle is the essence of technical analysis since it is these two phases that provide you with the probabilistic advantage you need to operate in the markets and obtain constant returns.
In the most plain and simple language, in the world of technical analysis, there are only two types of formations: trends and ranges.
The trends, in turn, can be bullish if they go up, or bearish if they go down. The ranges, on the other hand, can be accumulation if they are at the beginning of the cycle, or distribution if they are in the high part of the cycle. As I had indicated in the topic of FOREX strategies when describing the price cycle.
This sounds more like a play on words, but I will show you the practical definition to simplify your life and then you will apply these definitions on the graph so that everything makes more sense to you.
  • Bullish trend: a succession of major highs and major lows
  • Bearish trend: a succession of minor highs and minor lows
  • Floor Range: equal highs and varied lows
  • Ceiling Range: equal minimums and varied maximums
https://preview.redd.it/vvmsshf0guv51.png?width=600&format=png&auto=webp&s=c321679a7dcc03f7184778be86379ef442fddf91
Some key points from the graph:
  • The start of this big uptrend was detected when the last high (thick green line) of the previous downtrend was broken to the upside, ending the succession of lower highs, while exiting the lateral floor formation.
  • The succession of major lows in the uptrend (thin blue lines)
  • The succession of major highs in the uptrend (thin green lines)
  • The end of the uptrend was detected when the last low (thick blue line) of the uptrend was broken to the downside, ending the succession of higher lows, while exiting the lateral ceiling formation.
A tool that will help you sharpen your technical eye and identify trends on the chart is the Currency Scanner. This application is very effective and will provide you with a much-needed boost in your operations to identify reliable trends. At first, we are not sure how reliable a trend is. You will receive great help to find opportunities with the Currency Scanner .

The Common Sense, The Less Common of Senses

The central idea of ​​technical analysis consists in determining the price situation of a market, that is, in which phase of the pattern of its cycle it is currently conjugated with the collective thinking of the masses and the possible traps that the market would have prepared to remove. the capital at stake by the public.
To carry out a precise technical analysis, you will use the support and resistance lines, which can be static (horizontal) or dynamic (projecting an angle with respect to the horizontal axis).
Your common sense prevails here.
If you show a 10-year-old a chart, they will be able to tell you if the price is going up or down. You will most likely have no idea how to draw the lines, but you will be able to establish the general trend. Simply using your common sense.
By introducing indicators and other gadgets , the simplicity and effectiveness of the technical analysis created by your common sense evaporates.
The following graph conceptually shows you all the possible situations in which you could draw these lines to carry out your technical analysis of the place. You can clearly observe a downtrend delimited by its dynamic trend line and an uptrend on the right side with its respective dynamic delimitation.
https://preview.redd.it/5iehg0r6guv51.png?width=500&format=png&auto=webp&s=84c265a5d35da7ea970792c4bf40fe20b33bd8bd

Forex Charts Analysis

I want to remind you that the formations or patterns that develop on the charts (triangles, wedges, pennants, boxes, etc.) only work to execute trades that have initially been confirmed by the static support and resistance lines and to read the collective thinking of the masses.
Chart formations work, but you must know the Language of Price to determine when the Specialists will exploit a chartist figure, or when they will allow it to run. In fact, you will learn with the Language that you can operate a chart figure in any direction.
Much of the "mentalization" that the masses receive is to believe that the figures are made to be respected. Which is an inefficient way of working. Simply because you could wait days or months for a perfect chart figure to occur in order to perform a reliable trade. When in fact there are dozens every day.

Japanese Candles

Of all the tools you have to carry out technical analysis, perhaps the best known and most popular is the Japanese technique of candles (candlesticks).
Candles are mainly used to identify reversal points on the chart without resorting to confirmation of horizontal trend lines and only using a previous bar or candle breaks.
Its correct use is subject to a multi-time analysis (multiple temporalities) and a general evaluation of the context proposed by the market in general at the time of each scenario.
Later I will show you all the important details to take into account so that you use Japanese candles in a simple and very effective way.
Do not forget ... Trading in your beginnings based on formations (chartism) and candlestick patterns conjugated with hundreds of tools and technical indicators, constitutes the perfect path to your failure. Before using any strategy or technique I recommend you focus on learning the Price Language, which includes 3 basic things:
  • The Price: structure and dynamics
  • Market sentiment: relative strength, external shocks, etc.
  • Psychology: flexible mindset and risk acceptance
After you acquire this solid foundation, I guarantee that you will be able to trade any trading system that exists, any strategy, technique or chart figure in a profitable and consistent manner.
Specialists make money every day at the expense of the collective behavior caused by the use of these strategies and techniques. With which you will only manage to lose your capital and your time by putting the cart in front of the horse.
People who do the opposite, at best become,
... Philosophers of Speculation, or indocile Robot Assistants or Expert Advisors.
To make money in any market condition, range or trend, you must use the technical analysis based on the Price Language and combine it with a correct psychological reading of the price. This knowledge can only be acquired through proper education and lots of supervised practice. Like any other career in life.
I hope you've found this guide helpful!
submitted by kayakero to makemoneyforexreddit [link] [comments]

How To Make Money Trading Reddit

How To Make Money Trading Reddit

MAKE MONEY WITH TRADING (Forex, Stocks, Binary Options)

https://preview.redd.it/onvu1owbn2v51.jpg?width=640&format=pjpg&auto=webp&s=63508b4c3653556bc53e4ef2df86a29df5e5dd0b
Trading consists of buying and selling assets, such as stocks, futures, currencies or derivatives, in a financial market. To trade, so that we obtain benefits, we will have to speculate with the movements in the price of the assets. This is the first step to making money from trading.
The word trading is usually associated with short-term investments, that is, short operations that seek benefits limited to a small time frame.
In other words, trading and investing are the same, only the time frame changes.
So if you hear terms like "stock trading" or "stock trading" it is the same thing, only they usually refer to different time frames.
The person who invests or trades is called a trader. A trader then is someone who invests in the financial markets.
Generally, the term trader is usually added to the asset that operates. For example, stock trader, futures trader, forex trader, in short, the asset that operates.
As you can see I am adding several concepts so that we all start from the same base.
So, trading is basically buying and selling assets, trying to buy at the lowest possible price and sell as high as possible. As simple as that.
I want you to understand something, the bases are 70% of your trading. It is amazing to see how advanced traders forget the basics before trading.
By advanced trader I mean someone who already knows how to trade but that doesn't necessarily make him a winning trader. In most cases they apply complicated strategies and forget something as simple as the bases.
How much can a trader earn? You put the roof on it, there is no limit. I recommend you measure your progress in percentages and not in nominals. It is best to verify your progress.
Is it necessary to be in a Trading Academy? Like everything, there are some who like to be social and others who prefer to work in a self-taught way. In trading, it is the same. If you need the constant support of people to not be demotivated, then a Trading Academy is a good option. Now, if you are an already motivated person who only needs to clear up doubts, then the best thing is a mentor, consulting professional, or a trading teacher who clears your doubts.
The foundations for making money trading have to be solid if we want to make profits consistently. So today I want to emphasize that, the foundations of being a successful trader. Let us begin!

How to Make Money Trading Reddit - Key Steps

https://preview.redd.it/la3o4919o2v51.jpg?width=640&format=pjpg&auto=webp&s=02e5635985796aa609c9ed4848285b4ce69f1196
1) Buy Supports (and resistances)
Buying in supports is buying in a key area where the price exerts a certain friction preventing the price from continuing to advance, for whatever reason.
A support is nothing more than an area where the asset finds the confidence of investors, it is the level where they estimate that it is a good purchase price for them, and that is why they buy the asset in question, in such a way that the asset finds help in that level.
Most trading systems, at least the ones I know of which are a few, are based on this principle but what happens, they camouflage it with flourishes.
Instead of saying, to the purchase in supports, they add colored mirrors so that it does not look so simple.
I'm not saying that details are not good, but exaggeration of details can lead to confusion and later paralysis.
Systems must necessarily be simple.
Buying in stands not only improves your overall entry, but it drastically lowers your risks. The further we move away from a support, the more the risk increases.
Many times we end up buying halfway because the price "escaped" us and we think that we will not have another equal opportunity. The reality is that the market always provides opportunities for those who know how to wait.
There is a saying that the beginning trader has fun in the market, the professional trader gets bored.
This does not mean that the professional trader does things reluctantly, or that he does not like to invest. It means that the professional trader waits crouched, calm, for that opportunity that he is looking for appears, that entry into support that reduces his risk. While the novice trader enters and exits the market euphoric.
A professional trader can be in front of the screen all day and not make a single trade. The novice trader, on the other hand, if he spends more than 5 minutes without trading, he already feels bad, anxious and thinks that he is losing opportunities.
Without further ado, enter supports.
2) Execute stop loss
Holding losses is the biggest mistake of traders. Who in the beginning has not moved the stop loss because the operation moved against him?
It's a very common mistake. We enter the market, we put the stop, the operation turns against us and instead of executing the stop, we RUN IT!
We are camicaces.
The typical phrase "I'm waiting to recover" has burned entire wallets.
The market fell 40% and instead of leaving, they began to pray.
The great advantage of small portfolios, that is, investors with little capital, is flexibility and speed of reaction.
By running the stop loss you are losing the only advantage you have with respect to professionals and large investors. Because they sure have more capital and have wider margins.
Please don't take losses, don't run the stop loss.
If you miss the stop, distance yourself from the market and analyze why that happened to you for the next better place your stop.
3) Sell in resistonce
I want you to remember something. Until you sell, the profits are not yours.
Until you sell, you have no money.
Until you sell, you cannot say that the operation was successful.
Many traders are very good at finding entries. They perfectly see the supports and manage to enter at the best prices. But what happens to them, they don't sell.
It hits a key resistance, where price clearly can't break through and what they do, they hold out in case it breaks.
The worst, the price does not break or make an upthrust (which would be a kind of professional feint), it returns to support, it bounces, it goes back to resistance and what we do ... we wait again to see if it breaks, because now it is the correct.
And there is a worse case. It reaches resistance and we want to apply the phrase "let the profits run", so what do we do, we adjust the stop loss near the resistance in case the price breaks and continues.
The price tests the resistance, falls, touches our stop and we run it in case the price returns to the path. Instead of applying the phrase “let the profits run” we apply the phrase “let the losses run”.
An old master used to say, when the price reaches resistance, I collect my winnings and go on vacation.
It seems silly but it is a way of telling our brain, if you do things well you have a prize.
Sell ​​in resistance, the market always gives new opportunities.
4) The Trend is your friend
No better elaborated phrase. The trend is your friend. And as we all know, almost no one pays attention to their friends. We ask them for advice and if they don't say what we want to hear, we won't.
If the price goes up, where do you have to invest?
"It is not that the price was stretched too much and surely now a correction is coming, so I invest against it."
You are seeing that the trend is upward in an annual, monthly, weekly, daily, hourly and minute time frame, but just in case you invest against it.
Please, the trend is your friend, if it tells you that the price is going up, it is because it is going up.
I invested in favor of the trend. You do not want to beat the market because I assure you that it breaks your arm in a blink of an eye.
5) Statistical advantage
In the financial markets there are no certainties, only probabilities and whoever tells you otherwise is surely not winning in silver.
What we are looking for are windows of statistical opportunities. In other words, we try to turn the odds in our favor.
That is why it is always important to ask yourself the question, what is more likely, that the price will go up or down?
This is because many times we operate and do not realize that the odds are against us.
We can never be 100% certain, but just putting the odds in our favor by making concrete decisions based on logic and not on emotions can earn us a lot of money.
6) Consistency
You often see many traders showing one or two of their most successful trades and the occasional loss. This is good for teaching purposes, and it is useful for transmitting teachings.
But if you want to become a professional trader you need consistency. And consistency does not speak of an isolated operation, it speaks of sustained profits over time.
And when I say time I speak of years. Not a month, not a week, not a semester. 3 years, 5 years, 10 years, 20 years.
To give you an idea, ultra-professional traders fight to see who is more consistent.
In other words, the first question they ask themselves is how many years have you been winning?
A trader who every year earns a tight, modest percentage, reasonable to say the least, but consistently, is a much better professional than one who doubles the capital one year and the other is -90.
Consistency is highly treasured as it allows for simulations, strategizing, and even projections.
7) Trading plan
The number of traders who invest without having a trading plan is impressive. Something so important, so simple to make, so useful and very few use it.
A trading plan allows you to analyze your operations, see what you are doing, and then improve.
When we don't have a trading plan, what we did last week goes completely unnoticed because we can't internalize the teaching.
And when I speak of teachings, they can be gains or losses.
A loss allows us to adjust the plan but a success also.
In fact, when we have several successful operations, there is nothing better than taking their teachings and replicating them.
The trading plan is the only tool that allows us to do this, learn, improve and be the most objective possible, leaving aside emotions.

Forex trading Reddit

https://preview.redd.it/ljyjklqgo2v51.jpg?width=640&format=pjpg&auto=webp&s=c50d6af6b81521fbbfe25938c98971e1592de261
When it comes to the currency market, one of the most popular trading markets is Forex. It represents the world's largest decentralized currency market. So we will answer how to make money from forex trading.
With only having a computer, tablet or mobile phone, and an excellent internet connection service, you will be able to operate from anywhere in the world in the Forex market. It has the great strength of being flexible and adaptable to all types of investors.
Select a prominent broker or intermediary agent, one that is recognized and very professional. Conduct negotiation trials with him, so that you get to know each other and do not put your capital at risk.
Develop together the work style that most identifies you and decide to earn money by trading, enriching yourself with all the possible knowledge and strategies.
Acquire strengths in detecting the ideal moment to carry out operations. You will achieve this by studying and understanding the graphs and trends of transactions, detecting that unique pattern that tells you when is the right time to proceed.
Do not hesitate, it is possible to earn a lot of money with trading! But, make sure, above all things, train yourself with a duly accredited professional, in guarantee of acquiring quality theoretical knowledge, imperative to understand the movement of the market.

How to Make Money Trading Reddit - Final Words

Trading is an “investment vehicle” that can serve your objectives of having financial peace of mind as long as it is part of a broad economic and financial planning in the short, medium and long term. If not, trading can become a fast track to lose your money, if you lack the necessary knowledge, experience and training. Follow the following formula to Make Money in Trading Consistently:

Profitability = (Knowledge + experience) x emotional and mental management

submitted by kayakero to makemoneyforexreddit [link] [comments]

[question] Learning to day trade

Hi, I'm new to learning day trading and had some questions.
-are you able to apply candlestick patterns to all sorts of securities markets
-are their patterns using other graphs such as the bar graphs that can give me a different perspective on the market
-do patterns always work?
-what should you start trading initially as a beginner? futures? bonds? Forex?
-do you have a listed criteria of when to enter a trade and when to exit?
-if in Australia what broker do you recommend for a live account. And which broker for a demo account?
-please if you have any other tips I would be grateful
thanks
submitted by Sp3ialK to Daytrading [link] [comments]

MACD (Moving Average Convergence Divergence)

The MACD marker is one of the most famous apparatuses of Technical Analysis. This instrument shows the connection between two moving methods of a security's cost. This MACD marker is made to proclaim alters happen in course, quality and pattern length of stock's cost. There is an equation for figuring MACD, for this count 26-period exponential moving midpoints subtracted from the 12-time frame exponential moving midpoints (MACD estimation done by subtracting the long haul EMA from momentary the EMA). The outcome which comes after this figuring will be the MACD line.
This MACD pointer of specialized examination depends on three parameters which named as the time consistent of the three EMAs. The parameters of MACD are estimated in days and the most normally utilized an incentive for MACD is 12, 26 and 9 days. The specialized marker of this is, MACD additionally works for discovering its period setting from the days of yore, while Technical Analysisrelies upon the consistent schedule diagrams.
This MACD marker encourages financial specialists to comprehend when bullish or bearish cost development is expanding or diminishing. The MACD pointer can be comprehended in various manners, yet the most usually utilized ways are hybrids disparity and speedy ascent or fall. MACD is an energy oscillator that goes about as a best utilized in the market of exchanging, where costs of exchange advertise are moving with a certain goal in mind.
MACD Charts and MACD Line
MACD graphs are appeared in two lines. The primary line of graph structures the estimation of MACD and it's called as MACD Line, it shows the separation between two EMA.
MACD is determined utilizing three distinctive arrangement:
  1. The MACD arrangement is the distinction between a long and short exponential moving normal.
  2. The Average arrangement is the EMA (Exponential moving normal) of the MACD arrangement which depicted previously.
  3. And dissimilarity arrangement is the distinction between the MACD and the normal arrangement.
Exchanging by MACD pointer contains the accompanying signs:
A portion of the sign of MACD:
  1. Signal Line Crossovers: It happens when the MACD falls beneath the sign line. Merchants regularly decipher MACD lines as a potential purchasing opportunity, when it crosses over the sign line. Brokers will in general consider the MACD line as a selling opportunity when it crosses beneath the sign line. While the signs of hybrids can be useful, on the other that they are not solid.
  2. Centerline Crossovers: It happens when MACD crosses turn over the zero lines, at that point it unmistakable as bullishness, it's called bullish centerline hybrid. On the off chance that it moves beneath from above to the zero lines, at that point it is known as a bearish centerline hybrid. A positive hybrid guarantees when the shorter exponential moving normal of the fundamental security filtered to over the more EMA.
  3. Divergence: Divergence structure happens when the MACD wanders through the hidden security value activity. A bullish difference structure comes when a security records a lower low and the higher low shaped by MACD. At the point when the money pair cost separates from the MACD, it demonstrates the finish of the present development. This kind of thing generally comes when value moves a single way and the MACD moves toward another path. MACD dissimilarity exchanging strategy additionally utilized for pattern affirmation as to figure defining moments of patterns.
  4. Timing: The MACD is significant just for those conditions in which it is applied. The MACD might be applied by an Analyst before looking to an everyday schedule scale to a week by week scale, for keeping away from the momentary exchanges against the middle of the road pattern's heading.
  5. False Signals: The MACD can likewise make bogus signs like a determining calculation. A bogus positive happens when a bullish hybrid finished a decay that comes out of nowhere in a stock. What's more, a bogus negative circumstance happens when a bearish hybrid followed by an abrupt upward in the stock. Examiners utilize a scope of techniques for sifting through the bogus signals and affirm the genuine signs.
  6. Today, the MACD has gotten one of the most significant pointers for each broker since it shows an assortment of signs about developments, inversion and force all on a solitary diagram. The marker isn't directly consistently. Despite the fact that, when utilized cautiously, it encourages merchants who attempt to make early recognizable proof of value developments (that is the place and how the cost will be moving straightaway).

There are points of interest or hindrance of MACD:
Favorable position of MACD:
  1. MACD is a strong pointer that encourages merchants to recognize patterns of stocks.
  2. It likewise gives a sign before moving normal hybrid.

Impediments of MACD:
  1. The MACD pointer isn't the most confided in marker; it gives bogus signs when the forex showcase is insecure.
  2. One more weakness of MACD is that it will in general be increasingly expressive when contrasted with investigative. Along these lines, it is progressively reasonable for tolerating the pattern of the market as opposed to evaluating it.
  3. MACD is extremely convoluted now and again to be deciphered or actualized proficiently.
  4. When the forex showcase is shaky, the chance of phony signs is excessively high.
Conclusion:
In finish of MACD I need to state that the MACD is a magnificent blend among pattern and force pointers. It is a most ordinarily utilized marker, it very well may be effortlessly accepted as speculators are focused on the MACD hybrids by the signs and the inside line. MACD is a key pointer of Technical Analysis and it's an energy family part, gives incredible quality signs which originates from the fundamental offer cost. The utilization of the MACD marker is extremely famous in the specialized examination of Forex Market. This pointer causes brokers to recognize the pattern of the present moment forex showcase. The MACD pointer additionally has a few burdens, which demonstrates that this marker isn't generally the most trusted, and precise for guaging developments, essentially when the forex advertise is truly capricious.
submitted by sharegurukul to u/sharegurukul [link] [comments]

Some tools free from Onada's site.

I am not associated with Onada in any way, just thought these were interesting and didn't know about them until recently.
Volatility Graph: Zero in on which currency pairs show the most significant price fluctuations over various time periods.
https://www.oanda.com/forex-trading/analysis/currency-volatility
 
Currency Correlation: See how currency pairs have moved relative to each other https://www.oanda.com/forex-trading/analysis/currency-correlation
 
Candlestick Patterns: See candlestick patterns plotted over recent currency movements.
https://www.oanda.com/forex-trading/analysis/candlestick-patterns
 
Currency Strength Heatmap: See the percentage change and rank of each currency relative to other currencies traded against it.
https://www.oanda.com/forex-trading/analysis/currency-heatmap
 
Market Trading Hours: See global forex trading hours and statuses.
https://www.oanda.com/forex-trading/analysis/market-hours
 
Official Economic Figures: Access more than 150 economic figures from the world's major markets.
https://www.oanda.com/forex-trading/analysis/economic-indicators/
 
OANDA Forex Open Position Ratios: A summary of open positions held by OANDA clients
https://www1.oanda.com/forex-trading/analysis/open-position-ratios
 
OANDA Forex Order Book: A 24-hour summary of open orders and positions held by OANDA's clients.
https://www1.oanda.com/forex-trading/analysis/forex-order-book
 
edit: Article about: Using Oanda’s Orderbook To Trade Stop Hunts
https://www.forexmentoronline.com/using-oandas-orderbook-to-trade-stop-hunts/
Again, interesting but i'm just starting out, little to advanced for me right now.
submitted by Oatmeal_or_Porridge to Forex [link] [comments]

[R] Understanding The Price Movement Of Cryptocurrency Using Candlestick Charts

Having a basic knowledge of candlestick charts is a great starting point for anyone who is really interested in making a profit, rather than just playing games or speculating with their hard earned money in the cryptospace. The same candlestick that many financial institutions use to build their positions on the forex market is that the same candlestick traders also have in cryptocurrency exchanges.
In the 18th century, candlestick charts were been invented and developed. The earliest reference to a candlestick chart being used in financial markets was found in Sakata, Japan, where a rice merchant named Munehisa and traders use the candlestick to trade ojima rice. So, particularly for newbies that don't know about these candlesticks, it's not a new thing. The candle may be red or green, white or black, some few exchanges may allow it to be defined at which they want to call them. Such candles reflect an activity that is bullish or bearish.
Candle sticks can help anyone identify the next price action movement of a crypto asset, hence there are different candle stick patterns that will be encountered in exchanges that will determine their decisions. These candles are formed due to pressure or force of movement of price which result to form a full candle with or without sticks/wicks. The sticks are formed in the candle because of continuous force pushing or pulling the price of the crypto asset. (here is an illustrative representation of these candles for easy understanding)
Why Is It A Must To Use Candlestick Patterns?
  1. Crypto asset price movements are easier to understand to know where the trend actually moves into either bear or bullish area.
  2. Recognizing the candle pattern and how they occur in that crypto asset's price history is easier.
  3. Candlestick charts unveil a dynamic information in every areas of the price movement with respect to time. (Open, close, high and low) compare to other patterns such as the graph or line charts.
Is this Candlestick Patterns Used By Many?
Due to the volatility of crypto instrument, most traders do not tend to read the chart before trading for the following reasons.
  1. Greed
  2. FeaDoubt
  3. Lack of discipline
  4. Lack of patience
Bottom Line
Understanding candlestick patterns is a key factor to managing those portfolios in the crypto space for maximum returns of investment. Candlesticks helps traders to detect trend reversals and price action breakouts in the market which helps to build a strong and effective trading strategy.
submitted by fikridie to statistics [link] [comments]

Just thoughts after 3 years of Forex

You have a chart in front of you, a buy and sell button respectively, this basically gives you 50% of probability that if you open a buy or sell at any time your action will end up making money after sometime. "Sometime" adds new variables to the game and makes it more complicated: is knowing the direction for sometime, the market needs to move to increase profit or increase loss. You then go into the volatility reports for lets say EURUSD, and you see that during London session and New York session, it's the time where price statistically moves more, so there is where you want to be if you want to day trade (open and close trades in the same day), this can be also noticed if you zoom out for example M5 of almost any pairs, volume will be bigger in this two sessions.
Ok so you have statistics of at what times it may move big, you also know that it may not move or it may range the whole day, but definitely there is going to be big moves. If you analyse the past, with only for example a 30 MA, you will see the 50/50. What else do you need? To be in most of the times you are humanly able following the trend, if price is averaging over any average you want and see useful to add, why would you bet that is not going to average oveunder it for some more time? Add a 1000 MA, what if you waited for each cross and traded it trend following? Here then comes a "must": money management = risk = stay in the game for long = you can lose multiple times and long term it's hard that you even lose 10% of your account. Start with the minimum risk, demo in 0.01. Why? If you can consistently win with 0.01 it's just a matter of optimizing the statistics your demo trading over time has thrown, money will come, lots of it, the amount your confidence as a trader can bear and ultimately because trading is so big and involves almost all of the aspects of your life and personality, your confidence as a human being can bear. But this is skipping to psychology.
So, volatility, an average of some x periods to get the trend (not of the market but of the x periods in relation to the market and time, x is important, x can't be 2000 in M5), money management and time to play. What else? When will you close the trades? There are multiple ways each one with pros and cons, price crossing the average (too slow sometimes), price hitting fibos (gotta have a method for plotting fibos the same time each time, check the "Do it yourself" section, 61.8 a.k.a 0.618 and 61.8, god made numbers), being this last one the one I like. Price plays with these levels, nothing magical about it, is just "nature", a forgotten and violated term these days IMHO. There it is, when to open with probability, when to close methodically, how to play your money so you last as long as you don't fail too much repeatedly. This results after studying Ralph Elliot's, W Gann's, Wykcoff's, Pesavento's, Gartley's, Carney's and some others WAY TO LOOK AT THE MARKET. They all found structure in price actions over time, they all understood natural patterns that occur, they all sat in front of some charts, used or created tools for handling those charts, in the end everything is so simple and easy that our minds, past, maybe present, the t.v, Instagram won't lets us succeed. Why? Your mind is your biggest enemy of what you want to do in life. How? Your past in someway defines you, defines what you are looking for in life.

Psychology, establishment and relativity.

Mark Douglas introduced me (in his videos) to a new way of thinking towards trading. He speaks about beliefs, how they drives us in each decision we make each day from as simple as making coffee, having a bath,
dressing nice or dressing in the first place. Beliefs are what makes your past define you today and tomorrow if you keep believing them. A wrong belief of yourself, a wrong belief of the world outside your eyes,
a wrong belief of the market (you keep trusting other people about the market, in the end after loosing you trust no one), this leads to what lot's of gurus outside the financial world, will say: trust in
yourself. Forex gurus tell you to trust them, pay them so they'll unveil the secrets. No money can change your wrong mindset, that feeling in your chest each time you think about possibilities with Forex (euphoria, dangerous as f not only in forex), that belief that some magical indicator will come, some hidden code of some pro advanced indi if you are more realist, some guy with the answer. You are very alone in this world my friend, money will tear countries apart, cities apart, families apart. People will sell their face for some money, their name, in the end corrupt politicians that don't get caught will enjoy their feasts everyday, with their innocent childs, who see their daddy as their hero, this is not a fair world, what's fair in the first place? A human creation so we can live together in peace, but that's not reality we all know. We are evoluted chimps, we still feel what the cheetah feel's in front of his prey, we share 90% of DNA with most of mammals, as intelligent as we like to think we are, we can't delete our nature, our hunger, our fear, our needs, our instinct (the one rushes adrenaline when you know you are losing too much), because deep inside we all know whats right or wrong, the difference between people is whether you hear that voice, or you shut it with a nicer version. 90% of people in forex (not real statistics, the real number varies from broker hmmm brokers another shady topic), prefers the nice version long term, which results not profitable basically.
It's your version (you + all gurus you've seen) not the version the market shows and the deep-you tries to alert.
I headed far from an important topic: gurus telling to trust them, a killer market killing you, lots of misinformation around the WWW and you not believing in yourself. What else do you have to face the markets?
You are in a triangle: broker (not so hard to get a nice one), market and yourself. Everything else is a lie until the person who is in any way selling you stuff, shows you his profitable record of more than 6 months in any financial instrument, that you look at yourself in the mirror and you can say I trust him, not I want to trust him (even if it's some of each, but hey everything involves risk).
LOOK AT THE CHARTS.
Want to have "fast money" (intraday), look M1 to M30, even H1 for a bird's view, optimize your profitable and consistent demo results to that market; want to look charts once a day, trade D1, I'd say you don't even have to look at something bigger as it is big enough and you can go to H4 or H1 for finesse entries (can become a vicious circle, how much finesse is finesse?).
It's all about trust, confidence and a good plan.
Psychology of yourself is so vast, and so unique to each person that I would dare to say that if you are looking for the answer outside of you, you better befriend a trader who is today making money and pray that he literally gifts you his confidence (not his knowledge even if it can help, hi will be sharing his confidence). Your social mind will spawn the hype, the euphoria, you will succeed for a while, market will kill you sooner or later, you will help the market to kill your account. Why? Because your confidence wasn't real, it may be that that day, that week the market moved nicely, or you felt strong and super.
How many gurus go live and say "hey today, as a human being, I don't feel great, I would not trade today?" none. They say market is not right ATM, cherry picking, they totally exploit that you can't go inside their screens and really know them, here comes the version you want to believe, you will tell yourself anything, you will tell anyone anything.
Here to finish, I'll say that consistency in anything in life starts from yourself. If you can't be consistent everyday with yourself for a long period of time, you will find temporary jobs, temporary stuff, you will keep jumping from gurus, from strategies, you will create better versions on your head, just imagine what version a guru must have created to go and sell forex related stuff instead of searching for how to kill the markets, he may be doing both, in the end none of that will give you anything, you will end up being the stair to the gurus goals. Try to comprehend how human we are, how arrogant we are from a farmers perspective, how or evolution results in our minds plays us tricks, to think the government is real, to think there's order, justice, to think that we can achieve huge things with the help of YouTube videos or paying another human being, the market is flow, manipulation is real (why call it manipulation when you would be doing the same in their shoes(big boys)) is part of the nature of anything you plot with Y and X axis (look for a graph of population changes, harmonics, double bottoms, double tops, in a population changes graph? how can that be?), it may be a cliche but is aaaaaaall an illusion guys, the truth is not good business for the other side of the trades.
See you on the other side.
"I'll be a big noise with all the big boys"
submitted by ab_moncada to Forex [link] [comments]

[WallText] For those who really want to be forex traders.

Im sry if u find some grammatical errors, english is not my mother language. Let me know and i will fix it.
First of all, look for at least half an hour without interruptions to read this manual.
This is the system that has created trading professionals. He has done it and today he continues doing it, as it happened with me.
It is not a system written in any forum, in fact I believe that it has been the first to collect all the ideas and create a structure to follow to carry them out, but these same ideas and procedures have been the ones that the winning traders have used during decades and will continue to use, since they are based on completely objective and real foundations.
Let's go to it:
Hi all.
It is known that the observation time makes the patterns elucidate, and after some time in the forum and throughout this trading world I have found many patterns in the responses of the people, I have reasoned about them, and I have realized their failures, why they fail to be profitable.
There are people who have put effort into this. Not all, but there are people who have really read a lot, studied a lot, learned a lot and tried a lot, and even then they are not able to achieve stable profitability.
The question is: Is there enough in that effort? Is there a specific moment in the line of learning where you start to be profitable? The question is, logically.
There are traders that generate constant profitability. Hedge funds, investment firms ... and the difference is in areas where people for some reason do not want to invest time.
Why are there more messages in the strategy forums than in the psychology, journals and fundamental analysis together?
As human beings, our brain is programmed to look for quick positive responses. In nature, the brain does not understand the concept of long-term investment. There is only a short-term investment made from the difference between what we think will cost us something and what we think it will contribute. If we think that it will cost us more than it can give us, we simply do not feel motivated. It is a simple mechanism.
The market plays with these mechanisms. There are more scalpers created from the search for that positive emotion than from the search for a scalping system.
In short, we are not programmed to operate, and there lies the fact that only a huge minority of operators are profitable.
Among others, I have observed several patterns of behavior that make a trader fail, and they are:
- Search for immediate pleasure: The trader wants to feel that he has won on the one hand, and on the other he wants to avoid the feeling of loss. Following this there are many traders who place a very low take profit and a very high stop loss. This is not bad if the probabilities have been reviewed before, the mathematical factor of hope, the relation with the drawdown .. but in the majority of the cases absolutely nothing of statistics is known. There is only that need to win. They win, they win, they win, until one day the odds do their job and the stop loss is touched, returning the account to its origins or leaving it with less money than it started. This does not work.
- Search for immediate wealth: Again it is something immediate. People want good emotions, and we want them already. The vast majority of traders approach this world with fantasies of wealth, women and expensive cars, but do not visualize hard work, the sickly hard work behind all this.
From there underlie behaviors like eternally looking for new robots or expert advisors that promise a lot of money, or new systems. The type of trader that has this integrated pattern is characterized by doing nothing more than that. Spend the day looking for new strategies Of course he never manages to earn constant money.
- Think that trading is easy: Trading is not easy, it is simple. Why? Because when you get the wisdom and experience necessary to find yourself in a state of superior knowledge about the market and effectively make money, it is very simple; you just have to apply the same equation again and again. However, it is not easy to reach this equation. This equation includes variables such as risk understanding, mathematics, certain characteristics in the personality that must be assimilated little by little, intelligence, a lot of experience ..
This is not easy. This is a business, and in fact it is one of the most difficult businesses in the world. It may seem simple to see a series of candles on a screen or perhaps a line, or any type of graphic, but it is not. Behind the screen there are hundreds of thousands of very intelligent professionals, very disciplined, very educated, very ...
This business is the most profitable in the world if you know how to carry, since it is based on the concept of compound interest, but it is also one of the most difficult. And I repeat. It's a business, not a game. I think you'll never hear a lawyer say to his boss: "We're going to focus all our time on finding a strategy that ALWAYS makes us win a trial, ALWAYS." What does it sound ridiculous? It sounds to me just as ridiculous for trading.
But you are not to blame, you have been subconsciously deceived through the advertising brokers and your own internal desires, to think that this is something easy.
- Lack of discipline: Trading is not something you can do 10 minutes on Monday and 6 on Thursday. This is not a game, and until you get a regular schedule you can not start earning money. There are people who open a graph one day for 5 minutes, then return to their normal life and then one week returns to look at it for other minutes.
Trading should not be treated as a hobby. If you want to win "some money" I advise you not even to get in, because you will end up losing something or a lot of money. You have to think if you really want trading to be part of your life. It's like when you meet a girl and you want to get married. Do you really want to get into this with all the consequences? Because otherwise it will not work.
Visualize the hard work behind this. Candle nights, frustrations, several hundred dollars lost (at the beginning) .. enter the world of trading with a really deep reason, if you lose a time and money that no one will return, and both things are finite!
- Know something and pretend to know everything: Making money in the markets is not based on painting the graph as a child a paper with crayon wax and pretend to make money.
It is not based on drawing lines or circles, or squares. It is based on understanding the operation of all these tools, the background of the why of the tools of trading.
A trend line only marks the cycle of a wave within a longer time frame, within a longer time frame, and so on indefinitely. In turn, this wave is divided into waves with a specific behavior, divided into smaller waves and Etcetera, and understanding that dynamic is fundamental to winning.
It is not the fact of drawing a line. That can be done by an 8 year old boy. It is the fact of UNDERSTANDING why.
There are traders who read two technical analysis books and a delta analysis book and believe that they are professionals, but do they really understand the behavior of the market? The answer is in their portfolios.
After this explanation that only 10% will have read, I will try to detail step by step something that is 90% yearning, and that will have quickly turned the scroll of your mouse to find the solution to all your problems while supporting the beer in a book of " become rich ", rotten by lack of use.
These steps must be carried out one by one, starting with the first, fulfilling it, moving on to the second, successively and growing. If steps are taken for granted, or not fully met, it simply will not work.
I know this will happen and the person who did it will think "Bah, this does not work." and you will return to your top strategy search routine.
That said, let start:
1º Create a REAL account with 50 dollars approximately:
_ Forget the demo accounts. They are a utopia, they do not work. There is infinite liquidity, without emotions and without slipagge.
These things will change when we enter the real market, and the most experienced person in the world will notice a sharp drop in their profitability when it happens to real accounts.
And not only using a demo account has disadvantages, but using a real one has advantages.
We will have a real slipagge with real liquidity. Real requotes and more. The most important: We will work our emotions at the same time. Because yes, we will lose or win a couple of cents, but that has a subconscious impact of loss.
This means that we will begin to expand our comfort zone from the start.
Using a demo account is simply a disadvantage.
2º Buy a newspaper in the stationery or in Chinese (optional), or write one online or in Word:
A newspaper will be of GREAT help. You can not imagine, for those of you who do not have one, how a newspaper can exponentiate our learning curve. It is simply absurd not to have a diary. It's like taking a ticket of 5 instead of one of 100.
In this diary we will write down observations that we make about the operations that we will carry out in points that I will explain later of this same manual.
We will divide the newspaper into 2 parts:
  • 1 part: The operation itself. We will write the reasons for each operation. The why we have done it.
  • 2 part: How we feel. We will unburden ourselves without explaining how we feel, what our intuition tells us about that particular operation and so on.
How to use:
We will read the newspaper once a week, thinking about the emotions we felt each day and in what situations, and the reasons.
Soon, we will begin to realize that we have certain patterns in the way we feel and operate, and we will have the ability to change them.
We can also learn from mistakes that we make, and keep them always in a diary.
3º Look for a strategy that has the following characteristics:
  • Make it SIMPLE. Nothing of 4 or more indicators or the colors of the gay flag drawn on the graph based on 1000 lines. Why? Because there is always an initial enthusiasm and maybe we can follow a complex strategy for a week, but burned that motivation, saturates us and we will leave it aside.
Therefore, the strategy must be simple. If we use metatrader, the default indicators work. No macd's no-lag and similar tools. That does not lead anywhere. And if you do not believe it, I'll tell you that in all areas of life comes marketing. In addition to trading towards MMA and now I do powerlifts, and there are 1000 exercises to do. However, the classics are still working and work very well. It seems that sellers of strange sports equipment do not share the same opinion, that the only thing they want is to sell!
4º Understand the strategy:
  • We must gut each process of the strategy and reason about it. What does this indicator do? What does this process? Why this and not another? Why this exit ?. Some strategies will be based on unspecified outputs. This does not suppose any problem because as we get experience in that specific strategy, we will remember situations that have occurred, we will see situations that are repeated (patterns) and we will be able to find better starts and entrances. Everything is in our hands.
5° Collect essential statistical information:
  • This part is FUNDAMENTAL, and no operator can have as much security in itself when operating as if it uses a strategy that has at least positive mathematical hope and an acceptable drawdown.
  • Step 1: To carry out this collection of information you need to test the strategy for at least 100 signals. Yes, 100 signals.
Assuming it is an intraday strategy and we do an operation per day, it will take us 100 days (3 months and 10 days approx) to carry out the study. Logically these figures can change depending on the number of operations that we make up to date with the strategy.
I have no doubt that after reading this manual we will go for a quick strategy of scalpers, with 100 signals every 10 minutes where the seller comes out with a big smile in his promotional video.
I personally recommend a system of maximum 2 daily operations to start, but this point is personal.
Is it a long time? Go! It turns out that a college student of average intelligence takes 6 years to finish a career. It takes 6 years just to train, and there are even more races. This does not guarantee any profitability, and in any case most of Sometimes it will get a static return and not based on compound interest. I can never aspire to more.
The market offers compound profitability, there will be no bosses, nor schedules that we do not impose. We will always have work, and we can earn a lot more money than most people with careers or masters. Is it a long time? I do not think so.
As I was saying, we will test the strategy 100 times with our REAL account that we created in step 1. Did you decide to use a demo account? Better look for another manual; This has to be something serious. They are 100 dollars and will be the best investment of all in your career as a trader.
  • Step 2: Once with the report of the 100 strategies in hand, we will collect the following information:
  • How many times have we won and how many lost. Afterwards, we will find the percentage of correct answers.
  • How much have we won and how much have we lost? Afterwards, we will find the average profit and the average loss.
  • Step 3: With this information we will complete the mathematical hope formula:
(1 + average profit / average loss) * (percentage of correct answers / 100) -1
Example:
  • Of the 100 operations there are 50 winners and 50 losers, then the success rate is 50%.
  • Our average profit is 20 dollars and our average loss is 10 dollars.
Filling the formula:
(1 + 20/10) * (50/100) -1
(1 + 2) * (0,5) -1
3 * 0.5 - 1
1,5 - 1 = 0,5
In this example the mathematical expectation is 0.5. It is POSITIVE, because it is greater than 0. From 0, we will know that this strategy will make us earn money over time ALWAYS we respect the strategy.
If after a few days we modify it, then we will have to find this equation again with another 100 different operations. Easy? A result of "0" would mean that this strategy does not win or lose, but in the long run we would LOSE due to the spread and other random factors.
You have to try to find a strategy that, once this study is done, the result of your mathematical hope is greater than 0.2 as MINIMUM.
Finding this formula will also give a curious fact. The greater the take profit in relation to the stop loss, as a general rule more positive will be our mathematical hope. This has given many pages of discursiones about whether to place take profit> stop loss or vice versa.
If our stop was larger than the take profit, then the other ratio (% earned /% lost) should be yes or yes positive.
But this is just curiosities.
let's keep going:
  • 6° Expand our comfort zone:
We will not be able to work with operations of 10 million dollars overnight, but we can progressively condition ourselves to that path.
Assuming all of the above, and with a real account, some experience in the 3 months of information gathering and a positive mathematical hope, we are ready to operate in real with some consistency. But how to carry it out?
The comfort zone is the psychological limits we have before feeling fear or emotional tension. When we get into a fight, we have left our comfort zone and we feel tension, unless we have a psychopathic disorder.
Every time we lean out onto a 300-meter balcony from a skyscraper, we move away from the comfort zone. Every time we speak to a depampanante woman, we move away from our comfort zone.
Our brain creates a comfort zone to differentiate what we usually do and is not substantially dangerous, from the unknown and potentially dangerous to our survival or reproduction. And whenever the brain interprets that these two aspects are in danger, we will feel negative emotions like fear, disgust, loneliness, fury, etcetera.
This topic is much more profound and you would have to read several volumes of evolutionism to understand the why of each thing. The only thing that interests us here is the "what", and the one, that is, that there is a certain comfort zone that must be expanded without any problems.
With trading, exactly the same thing happens. The forex market is a virtual environment in which we lose or gain things, but our brain does not differentiate between reality and what is not, it only attends to stimuli of a certain type.
We can lose food in the middle of the forest or also a crude oil operation.
Our goal is to condition our subconscious so that it is progressively accepting lost and small benefits, and as time goes by, bigger.
The exercise to achieve this is the following:
  • We will operate on that account of 100 dollars with our mathematically positive strategy for 3 more months.
  • After these three months, our account should have benefits, because of the mathematically positive strategy.
  • We will enter 200 dollars more and we will operate a month more raising the lots according to our risk management (I do not advise that the risk is greater than 2%)
At this point, I know how hard it is to resign myself to impatience, but follow those times and do not skip it even if you feel safe, but you will fail, it's simple.
Let's keep going:
  • After that month, we will raise our capital again with a new income. This time we will enter 1000 dollars (save if you do not have 1000 dollars loose, you will recover later on, do you want to make money, enter 1000 dollars.
We will test the operation one month with this new injection. We probably notice difficulties. More blockages, more euphoria when winning ... how will we know when to move on to the next entry? When we do not feel ANYTHING or at most something very shallow, when win or lose If observing the wall and operating is for you the same from an emotional point of view, it is time to enter more money.
  • We will follow this procedure until we have a basic account of 21000 dollars. The amounts to be paid will depend on our ability to not feel emotions, a capacity that will be taking over time.
We will raise capital until we feel that we block too much. In that case we will drawdown to a more acceptable amount, and we will continue at that level until get discipline and lack of reactivity at that level. Later, we will go up.
  • If we want to earn more money, we will continue entering and entering. Always following the conditioning scheme of 1 month.
Why a month?
A study conducted in the United States revealed that the subconscious needs an average of 28 days to create new habits or eliminate old habits. Emotional reactions are part of the habits. If we maintain some pressure of any emotion during the opportune time, in this case 28 days, will create tolerance and the subconscious will need a more intense version of the stimulus to activate.
AND THAT'S ALL!
Follow these steps and you will triumph. Here is the golden chalice, the tomb of Jesus or whatever you want to call it. There is no more mystery in the world of trading. This system will accompany you during the next year, year and a half. It's the one I used and it WORKS. Once done, you will have a very profitable system integrated into your being, since not only will it be mathematically viable, but you will also have the necessary experience to make it infinitely more profitable yet.
In addition, you will have psychology fully worked on a professional level to have conditioned your subconscious gradually.
Happy trading to all of u guys.-
submitted by Harry-Postre to Forex [link] [comments]

What is price action trading methodology? Read this to find out.

MOST RECENT POST 1/16/19
I’d like to make this into a thread for others to learn about what price action trading is. I mainly trade the /es. I sometimes trade forex. I will add as much as possible to this thread in the most organized way possible.

1/15/2019 ENTRY
. WHAT IS A MARKET?
A market is a place where many individuals come together in order to find the best price possible for anything. Anything can be exchanged on a market. You can go to a farmers market nearby and you would ultimately be engaged in a market that is almost the same as buying and selling on the stock market. Everyone is trying to sell something and buy something for the best price possible. In terms of trading, you can buy and sell a variety of stuff. For example, currencies, stocks, futures contracts. You can even buy corn, soy beans, livestock, and oil on the futures market. You’d be surprised with everything that you are able to trade on the market. You are simply trying to buy or sell any given thing at the best price possible.
Why do markets exist?
Once again, markets are trying to find the best price possible. Markets exist in order to avoid being ripped off. Let’s look at some examples.
Example one is that you are trying to buy a house. You will go door-to-door asking people if they will sell you their house. Eventually you will find a house. That person will know that no one else is trying to sell a house. Since they do not feel any competition in selling, they will sell you the house at a very expensive price.
Now let’s look at situation two. You are attempting to sell your house. Imagine that a realtor did not exist. You would have to go door-to-door asking people if they wanted to buy your house. People would know that there is not a demand or a need to buy your house, so they would offer you the cheapest price possible.
In both of these situations, there is a middle man that could help avoid selling at the incorrect price or buying at the incorrect price. In the housing market, this is called a realtor. In trading , this is called a broker.
The job of the realtor is to find people that want to buy a house and people that want to sell a house. This will help with finding the correct house market value for the area where you live.
The job of a broker is to find people that want to buy a stock or sell a stock. The more people that are trying to buy or sell the stock, the closer that the stock will be to fair market value.
Trading markets and brokers solely exist for the reason of finding Many people that want to buy and sell on the market. This will in the end help find the best price possible for whatever you are trying to trade.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1/16/19 ENTRY
Chart types and bar types

Chart types
There are a variety of different ways to graph the way that price moves around while the market is open. Remember the only reason why we are at the market is in order to get the best price possible. A graph has two axis. The X axis, and the Y axis.
Remember this from math class in high school? It's back to haunt you again lol.
The X axis (the horizontal bottom part of the graph can show us time, volume, range, or ticks. You are probably most familiar with time. This is where a bar is formed every X given time interval. For example, if you are looking at a 1 hour chart, the X axis will print a bar every 1 hour. There are also more chats like the tick chart. The tick chart will print a bar every x given ticks. For example, a 1000 tick chart will print a new bar on the chart every 1000 ticks. What is a tick? It is simply a a movement of price. Look at a bar chart on a one minute time frame. During the one minute when a bar is forming, it is moving up and down. Each up and down movement is a tick. a 1000 volume chart will form a new bar when 1000 shares are bought or sold.
The Y-axis (vertical line on the side of the graph), is basically price. Price tends to move in .25 cent intervals for future indices, pipettes in Forex, and .01 cents in stocks. Time charts, volume charts, tick charts, range charts. There are all showing the same y- axis, but the interval on the x-axis changes. None is better than the other. It is all personal preference and risk management. I'll get more into this later. For now, i'd stick to a 1,3, or 5 minute chart if I were to be day trading.

Bar types

There are many different types of bars. A bar can range from a bar, candle, line, to point and figure. I mainly use candles on a 5 minute graph. The benefit of bar and candle is that they show the open high low and close of the time period on the x-axis. The line graph only shows the closing price. There are tons of websites that teach how to read the basics of these bars for free. You should learn how to read their open, high, low, and close. LEARN THIS BEFORE YOU KEEP READING.

Many websites show Japanese candle sticks as having many types of names based on the shape that they make in relation to the bars next to them. This can work for some people, but I personally do not use them. I do not see how naming a pattern that a bar makes will help me get a win in the market.

A bar can be used to its most maximum and basic ability by indicating if its in a trend or range bar. A trend is basically when a market is going up or down with higher highs and lower lows ( more on this later). A range is basically when a market is not going up or not going down. It is just going side ways. (more on this later).

Here are some examples.

Trending bar
This bar is from a 5 minute chart. You can see it opened on its on its high, it then went down and closed on its low. The bar did not have any wicks or tails on it. This is indicating that on a lower time frame (e.g. 1 minute) there is a strong trend down.

Consolidation bar

This bar is from a 5 minute chart. Here you can see that the bar had a small body, and very large wicks. This is a Consolidation bar. On a lower time frame the market simply went sideways. It went up and down for 5 minutes. It then closed close to where it opened.

For me this is all I need to know about bars. I don't memorize bar names or any thing fancy like that. All I care about is if the market is trending or if the market is consolidating.


To wrap up charts, there are a few different types of chart types and bar types. I also introduced you to a basic understanding of consolidating markets, and trending markets. Also how you can see if it is consolidating or trending by just looking at a bar. I like to use candle sticks, and 5 minute charts.


More to come soon! Any feedback?
I DO NOT SELL A COURSE OR HAVE A WEBSITE ONLINE THAT IS ABOUT TRADING. IM AN INDEPENDENT TRADER. THIS POST WILL BE PURELY ALTRUISTIC.
submitted by jcthetrader to Daytrading [link] [comments]

Anyother INTPs like trading Forex?

I feel like Forex trading, and looking for the patterns that unerlie the graphs, is like a direct job INTPs would like doing based on personality. It is pretty easy to make money off it once you learn what you're doing. It feels like an actual use of all the knowledge I've built with my "intpness"(stuff like Fibonacci sequences coming into actual use). I'm just paper trading now, but it seems like it has a lot of potential. If anyone has any advice on this I'd love it!
Edit: I created a Discord group for this! Please join if you are interested in Forex and are INTP: https://discord.gg/JDbmqc
submitted by mcafc to INTP [link] [comments]

New rule! Also are cryptocurrencies an investment, will there be a crash? Everything answered here!

This is going to be the only crypto post for now and an announcement:
Rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. Posts regarding this topic will be automatically removed.
If there's a stock correlated with cryptocurrencies, like coinbase going IPO, then that's fine, you might have to message the mods after posting to have it approved, no big deal.
Also if you're questioning whether something is an investment or not, just search for it on personalfinance. For general currency trading strategies, see forex .
If you're wondering if bitcoins are an investment or if there will be a crash, read on.

Are cryptocurrencies an investment?

This post is going to deal with bitcoins & cryptocurrencies as an investment... they're more speculative. All currencies are speculative mostly due to how the forex market works, but more because of exchange rates between countries keep currencies balanced (including inflation, country debt, interest rates, political & economic stability, etc), so you can only profit in price fluctuations.
Sure you could buy the currency of a depressed country, like Mexico decades ago, and then hold in the hopes it'll go up (which it did for Mexico), but that's also speculation (no one knew Mexico would pay off so much debt).
Bitcoins are also affected by other countries' currency values, but more so by the future expectation of legitimacy, world wide adoption, limited gains from mining, and eventual limit in supply. But at any given moment the United States could pay off more debt, raise interest rates to reduce inflation (or cause deflation), grow GDP, or even reduce the supply of USD all of which would increase the value of USD (keep in mind bitcoins can't do any of these things).
Far too many people are treating cryptocoins as an investment because currently (June 5th 2017) a lot of crypto investors are worth a lot of money, god bless you people, so this post will also help you determine if we're headed for a crypto crash and maybe you can keep those profits.

Should I invest in cryptocurrencies?

Understand that an investment is something you hope will go up in the future or provide income, both of which for the long term vs speculation which profits on short term inefficiencies.
Speculative securities are typically commodities, options, bonds, and currencies, but also stocks that are volatile enough to give you extreme returns or extreme loses.

Examples of investments:

Examples of speculation:

Reducing the risk of speculation

Typically for speculation you reduce risk by reducing your trade size and timeframe, but since you're trying to invest into something that is speculative, you can try:
Asset allocation, a strategy that reduces risk.. If you're 80% stocks, 15% bonds, 4% gold, and 1% bitcoins, if something were to happen to bitcoins, you still have 99% of your money.
But even very aggressive long term portfolios leave speculation out completely and just go 100% stocks because stocks benefit from growth while speculative securities like gold benefit from global turmoil in the short term. Only mid risk & mid term portfolios can take advantage of gold's speculative returns.
I also mention asset allocation because many crypto investors have been using this strategy on a portfolio of 100% crypto coins, but that doesn't help you reduce the overall risk of crypto coins, you're just reducing the risk of 1 speculative asset with another speculative asset. 100% crypto portfolio would face the same risks such as being made illegal, IRS aggressively hunting down crypto profits, a drop in correlated coin markets, or just a loss of popularity would all cause a sell off. Even the USD or Chinese currencies becoming more valuable would reduce the value of crypto coins.

Should I buy coins right now?

Cryptocoins are a better investment after a period of consolidation when volatility has stabilized:

Bitcoin 2013/2014 speculation, chart

Bitcoin 2015 consolidation, chart

Source Bitstamp exchange, while the volume is #2 to GDAX, Bitstamp is better to look at for historical price/data, more charts here.

RSI & MACD key for above charts and primer

Analyzing overbought signals

So the first chart above have RSI & MACD screaming that bitcoin is overbought and you shouldn't invest in 2013/2014.
The black squares in the 2nd chart show consolidation and reduced volatility, a "better" time to invest. If you were trading short term, it would be a whole different story, and there would be opportunities to buy & short, but since this is written for investing, the small overbought signals are ignored, so if you were to buy Bitcoin at $300 inside the first blacksquare (2nd chart) and then it suddenly drops to 25%, it's okay because the volatility is much lower compared to previous price movements (nothing compared to 80% loss in the 1st chart). Any investor would tell you a 25% drop is terrible, but bitcoins are speculative and that kind of drop is pretty damn good for this level of volatility.

Nothing goes straight up forever

and anything that comes near this vertical incline will eventually lose 80% to near 100%, always happens, it's usually preceded by emotions (price euphoria), attention, and increased volume, all classic signs that something is becoming riskier.
Other speculative securities gaining multiples and then losing 80% to near 100% of value:

Notable comments on reddit:

*This is just to get you guys looking at different subs on this topic, and yeah it's mostly anti-crypto, but don't let that discourage you.

Is Bitcoin going to crash?

Maybe, the signals are getting louder, you tell me: The only chart you wanted to see this entire time.
So based on the above chart, is bitcoin overbought? MACD levels are the same as 2013's crash, but the increased in value is around 4.3x or 2.4x (depending on which you look at), so maybe we'll see another spike before a crash, I don't know, it's up to interpretation right now. There's the emotional price levels of 3000 and 4000 that we might have no problem getting to in an overbought environment before a correction. And how big will the correction be? I think 80%, but it very well could be around 50% down to $1200, the previous level of resistance which would become support.
I put everything above in its own wiki here.
Well I hope that helps everyone. Sorry to anyone that may feel butthurt on classifying cryptocoins as speculation, I hope you understand the facts. Feel free to argue or agree with this. If I made any mistakes and you point them out, I'll correct them and give you credit for it in an update to this post and the wiki.
Also the automod will is just going to blanket remove posts (not comments) with the following keywords {crypto, bitcoin, btc, etherium, altcoin} (see update 4 below) (this will eventually get relaxed if Coinbase ever IPOs) and then it'll send the user this message:
"Sorry your post[link] was removed in stocks because of rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. You can find more information in our are-cryptocurrencies-investments wiki. If you're trying to discuss a non-OTC stock related to cryptocoins like Coinbase IPO, or this was just a mistake, message the mods and they'll approve your post, thanks."
Update: Created wiki, added relevant websites and sub reddits. Also turned on automod reply.
Update2: those relavant websites and subreddits I put into the wiki, thanks u/dross99 for recommending ethereum

Relevant websites/wikis

Relevant subreddits

  • CryptoCurrency - main sub to learn about all bit & altcoins
  • ethtrader - trading eth
  • ethereum - for more eth information
  • btc - the place to have bitcoin discussions or r/CryptoCurrency; while Bitcoin does have a lot of information on Bitcoins in general, you'll find many reddit subs completely opposed to Bitcoin for heavy censorship of discussions, especially those critical of bitcoins, so you're better off reading the sub's wikis and discussing bitcoins in btc & r/CryptoCurrency
  • personalfinance
Update3: Shoutout to the mods on CryptoCurrency
Update4: Updated auto mod keywords, it's not a blanket catch all, a little completed to understand if you don't know regex but it looks like this
"crypto ?(trading|investing)","(should(| I)|could(| I)|can(| I)|how to|is it worth) (buy|sell|mine|min)(|ing) (btc|btcs|bitcoin|ether|etherium|eth|litecoin|ripple|altcoin)" 
submitted by provoko to stocks [link] [comments]

#USDTRY Rapid reversal

We have observed rising wedge pattern formation in #usdtry parity.
Which is a strong sign of rapid reversal.
We are warning long position speculative traders in USDTRY parity
Check out graph USDTRY Price Chart Analysis

#dolar #DolarTL #BIST100 #XU100 #BIST30 #XU030 #Turkey #Forex #FX
#eurtry #gbptry #economy #speculation #inflation #interestrates #repo
submitted by Dr_Market to u/Dr_Market [link] [comments]

Making the Most Out of the Wedge Pattern Formation

Making the Most Out of the Wedge Pattern Formation
Rising and falling wedges
Rising and falling wedges are chart pattern formations mostly employed by day traders for their potential in predicting the upcoming price actions. It wouldn’t be precise to group wedges into one category; Wedges can either be reversal or continuation pattern. And just as the name suggests, the ever wavering graph gives rise to a formation much similar to that of a wedge.

Rising Wedge: Formation


Rising wedge
A rising wedge is formed when the sloping support line goes steeper than the resistance line. The support line is the slope or plane below which the price actions struggle to stoop, and the line above which the price action struggles to break through is the resistance line. The distance between lines decrease gradually and when the lines come close to each other, the chart will be inflicted by a redirection.

Reversal or Continuation

The factor which decides the formation’s character is not how long it takes to complete the formation, rather the emphasis is on when the pattern is formed. If the rising wedge is formed in the uptrend, then it is most likely a reversal; and in the downtrend, the wedge is most likely to go as a continuation.

Price Target:

The right position to take the trade is when the prices fall below the support line. It signifies that more traders are willing to go short than the ones willing to go long.The safest position to exit with substantial profits is by the difference between the resistance and support at the start of the wedge. The measured height is used from the entry point to determine the exit point in the downtrend.The stop loss is placed at the recent high within the wedge, just to be safe in case of a misinterpretation.

Falling Wedge: Formation


Falling wedge
Falling wedge is much similar to the rising wedge. The resistance line progressively narrows down to the support line and establishes a wedge-shaped pattern. The distance between the lines gradually comes down and after the narrowed part is when the surge is likely to occur.

Reversal or Continuation

The falling wedge can be a continuation or reversal, just like its bearish counterpart. The falling wedge occurring at the downtrend is mostly suspected to be a reversal pattern. On the other hand, the wedge falling at the uptrend is most likely to be a continuation.

Price Target:

The right position to take in forex trading is when the prices rise above the resistance line. It signifies that more traders are willing to go long, rather than short.The safest position to exit with substantial profits is the difference between the resistance and support at the start of the wedge. When the price thrusts above the resistance line, the exit can be marked at the approximate height of the wedge.The stop loss is placed at the recent low formed within the wedge, to limit the losses in case of a misinterpretation.

Bottom Line:

Identifying and trading chart patterns are one of the peerless ways to make quick profits, but rudiments astuteness to banish misinterpretations and miscalculations. The catch in trading wedges is that once the formation is complete, taking the trade can be profitable irrespective of the reversal and continuation. We offer a full suite of the best trading platform for beginners and professional traders. we are the trusted and experienced regulated online forex brokers for Forex, Futures, CFD and Currency Trading.
submitted by alfafinancials5 to u/alfafinancials5 [link] [comments]

Metronomic Pre-General Election Rupee slide

Pre-election blues? Rupee slides again — April 2018 Simple graphic representation from the article
Similar articles from 4-5 years back.
Why does the rupee always fall prior to elections? - (Mentions the theory about Political parties and their proxies bringing in Dollars for more bang for their buck but also says hard to prove this and instead sticks to the usual election volatility and internal and global macro trends safe-theory) — Sept 2013
Rupee nears 69/dollar; posts biggest day fall in 18 years - (Mainly focuses on economic trends) — Aug 2013
The rupee, the dollar and election results - (mostly around domestic sentiment and domestic macro economics) — May 2014 but refers to late 2013 time frame as well.
Are elections bad for the rupee? — Aug 2013 Graph representation
Comment :—
Once or twice can be coincident or accident. Even economic theories aren't as predictable or have such high fidelity as this is turning out to be. Whatever be the base reason. There is most definitely a pattern and simply the existence of a General Election at regular intervals is not enough to explain this. A pattern in economics that stretches over decades is considered very significant. People can make Millions off such things, in all likely they are already, and maybe that is part of that base reason, maybe.
submitted by iVarun to india [link] [comments]

Setups This Week (8th May - 12th May)

Hey all, I know I said I'd be back for last week but I realized that I'd just be forcing myself to post premature ideas that are lower in 'quality' - especially since my ideas are usually long-term, so that didn't really sit well with me.
Recap from last week
1) USDCAD: Oh boy, if I could hear the 'X' sound from America's Got Talent on cue, I would need it right about now. Though the USD has been under-performing lately, the CAD took that sentiment and dialed it up to 10 resulting in a pair that has broken through the daily local maximum and looking towards 1.40. Shit happens right? Graph
2) EURCAD: Unlike it's older brother that is still respecting the structure (EURUSD), the strength of the EUR following the first round of the French elections combined with CAD's weakness has resulted in a massive jump that has all but invalidated the ABCD pattern. However, if you managed to take the aggressive entry I posted on the idea, you would have gotten all 600 pips on the C-D leg completion which is a beautiful result for a 9 day trade. Graph
New Setups
1) GBPUSD: What we can see here is a very clear channel that the pair has been trading in since the Brexit vote almost one year ago. From this, we can use fibonacci retracements to outline very clear and distinct levels that the price is using to bounce off of. As of today, the price seems to be entering a rather important decision point where it may attempt to break through the 0.618 level - indicating a rather significant bullish run for the pair. The alternative is that it may attempt to test the 0.5 level which is the border between the two adjacent channels, and from here it can either bounce upwards to test the 0.618 level again or it can break through it downwards indicating that the pair will likely stay in this lower channel.
The GBP has been rallying as of late but the USD has also been gaining some traction. I would predict that although the USD has shown signs of life, it may be a short lived run compared to the GBP. So with regards to this structure, I would say that the price is headed back down to the 0.5 level to test it before rallying up and over the 0.618 level. The RSI indicates that the pair is very oversold so it seems to support this prediction of a brief bearish trend followed by an OVERALL bullish trend . I stress that word because we can always expect some consolidation and brief reversals off the major S&R levels outlined here. Assuming the price breaks through the 0.618 level, we'll be analyzing the upper channel and using its fibonacci retracements (marked in blue) to determine the possible targets. Upper play Entry: 1.29656 TP: 1.30953, 1.32023, 1.33320 SL: 1.29042 -- Lower Play Entry: 1.28618 TP: 1.27613 SL: 1.28910 Graph
2) EURCHF: I've never traded this pair, but I drew out the formation of the falling wedge quite a while ago and knew that the Euro's recent massive surge must have broken through it. This is a very interesting situation as it means that the price is trying to rally back to its recent maximum at 1.19 - and possibly even beyond that. The ones that have been following my ideas in the past will have noticed that I avoid trading the news so it wasn't a realistic idea to assume that the price would have broken through the way it did (we'd be gambling if we tried to trade the elections). However now that it has, I can see it hitting these 3 strong daily S&R levels with a bit of consolidation in between. The reason why this entry is a little higher than usual is because we can see a clear area of consolidation (marked by the blue rectangle ) where the price may experience a similar fate. If that area is cleared, then we can reasonably expect the aforementioned targets to be hit with ease. Setup Entry: 1.09031 SL: 1.08015 TP: 1.09749, 1.11050, 1.12054 Graph
I really do appreciate all the kind words and support from a lot of people on the sub and I'm going to try and do these posts as much as I can, but sometimes I'm just waiting for pairs to show their hand so I can make a reasonable prediction. I feel like I've been on point more often than not, and forcing the ideas when they're not ready will almost certainly result in a dip in quality. That said, there are a lot of my older long-term ideas that are currently panning out (due to their nature) and unless you're going through my posts, some of you won't even get to see them so here are some of the older posts:
20th - 24th March
27th - 31st March
2nd - 7th April
17th-21st April
24th - 28th April
I wish it was, but this isn't the gospel so please take the necessary precautions when trading
Have a good week and good luck!
submitted by Invictavis to Forex [link] [comments]

My "unconventional" way to trade forex

Hi /forex . I want to share my somewhat stupid way in trading. A little background: I am a student in the university, and I like to trade a bit for experience mainly and for some extra cash. My trading technique is a mixture of scalping and extending the SL. I look for 1-2-3 patterns on the 5 min graph, and take small profit multiple times a day, some days i manage to make 6% increase in my equity. If a position goes the opposite way, I just extend the SL. Sometimes it takes one or two weeks before it is closed, but I use that time to relax and focus on studying for my university. The only rule I abide by with forex trading is "take it easy and don't pressure yourself." With my way of trading I am limiting profit and extending losses, something I realize but it is the only way i feel comfortable especially that trading forex is a hobby for me. I use Etoro (I know there a lot of complains about this platform) because I like its mobile trader (I only trade with mobile trader) and its blog.
submitted by GoldChip to Forex [link] [comments]

Forex Chart Setup and Simple London Breakout Patterns ... The Best Candlestick Patterns to Profit in Forex and ... Chart Patterns & Trend Action for Forex, CFD and Stock ... How To Trade Forex Chart Patterns Part 1 & LIVE withdrawal ...

Chart patterns are a crucial part of the Forex technical analysis. Patterns are born out of price fluctuations, and they each represent chart figures with their own meanings. Each chart pattern indicator has a specific trading potential. As a result, Forex traders spot chart patterns to profit from the expected price moves. The wedge was one of the first Forex chart patterns I began trading shortly after I entered the market in 2007. By 2010, I had not only become proficient in trading them, but I had also developed the intuition necessary to identify the most profitable formations – something that can only be had after years of practice. The really great wedge patterns don’t come around all that often. By ... Usually, these are also known as consolidation patterns because they show how buyers or sellers take a quick break before moving further in the same direction as the prior trend. Trends don’t usually move in a straight line higher or lower. They pause and move sideways, “correct” lower or higher, and then regain momentum to continue the overall trend. We’ve covered several continuation ... Forex chart patterns tend to offer significant clues when it comes to price action trader. Traders tend to identify chart patterns and take advantage of any upcoming price swing. Even though there are numerous forex chart patterns used in everyday forex trading, chart patterns can be categorised into three main groups, namely Continuation Chart Patterns, Reversal Chart Patterns, and Bilateral ... Spotting chart patterns is a popular hobby amongst traders of all skill levels, and one of the easiest patterns to spot is a triangle pattern. However, there is more than one kind of triangle to find, and there are a couple of ways to trade them. Here are some of the more basic methods to both finding and trading these patterns. Ascending Descending Symmetrical Triangle Triangle Triangle What ... When you hear the word “patterns,” you may immediately jump to the conclusion that this is old-fashioned, subjective “chart reading” and inferior to math-based indicators generated in seconds by a software program. That would be a mistake. While it is true that it takes some time to learn chart patterns, patterns continue to be as relevant and useful today as when they were being ... click on the banners of the page to know our partner brokerage, INSTAFOREX Graphic Patterns So far you've had an arsenal of weapons to use in the battle market. In this lesson, you will add another weapon: graphic patterns. Think of graph patterns as a landmine detector, because once you finish this lesson you will…

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Forex Chart Setup and Simple London Breakout Patterns ...

#LondonBreakoutTrading Forex Chart Setup and Simple London Breakout Patterns. Overview of my basic chart setup, and the importance of understanding some simp... In this video Jay Wayne will teach you how to find popular forex chart patterns such as double tops and double bottoms and how to trade them. Join My Team: h... Learn how to read patterns in your trading trading charts and to understand what they are trying to tell you. Trend patterns and chart patterns such as recta... The Best Candlestick Patterns to Profit in Forex and binary - For Beginners trading forex, forex strategy, forex,Online Trading Strategy #Candlestick_Pattern...

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