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Is Bitcoin Crashing or Just a Psychological Trap Unfolding?Is this brutal Bitcoin drop really a trend shift—or just another psychological game?
Candles tell a story every day, but only a few traders read it right.
In this breakdown, we decode the emotional traps behind price action and show you how not to fall for them.
Hello✌
Spend 3 minutes ⏰ reading this educational material.
🎯 Analytical Insight on Bitcoin:
📈 Bitcoin is currently respecting a well-structured ascending channel, with price action aligning closely with a key Fibonacci retracement level and a major daily support zone—both acting as strong technical confluence. Given the strength of this setup, a potential short-term move of at least +10% seems likely, while the broader structure remains supportive of an extended bullish scenario toward the $116K target. 🚀
Now , let's dive into the educational section,
🧠 The Power of TradingView: Tools That Spot the Mind Games
When it comes to psychological traps in the market, a huge part of them can be spotted by just looking at the candles—with the right tools. TradingView offers several free indicators and features that, when combined wisely, can act like an early warning system against emotional decisions. Let’s walk through a few:
Volume Profile (Fixed Range)
Use the “Fixed Range Volume Profile” to see where real money is moving. If large red candles appear in low-volume zones, it often signals manipulation, not genuine sell pressure.
RSI Custom Alerts
Don’t just set RSI alerts at overbought/oversold levels. When RSI crashes but price barely moves, you’re watching fear being injected into the market—without actual sellers stepping in.
Divergence Detectors (Free Scripts)
Use public scripts to auto-detect bullish divergences. These often pop up right during panic drops and are gold mines of opportunity—if you’re calm enough to see them.
These tools are not just technical—they’re psychological weapons . Master them and you’ll read the market like a mind reader.
🔍 The Candle Lies Begin
One big red candle does not equal doom. It usually equals setup. Panic is a requirement before reversals.
💣 Collective Fear: The Whales' Favorite Weapon
When everyone on social media screams “sell,” guess who’s quietly buying? The whales. Fear is their liquidity provider.
🧩 Liquidity Zones: The Real Target
If you can’t see liquidity clusters on your chart, you're blind to half the game. Sudden crashes often aim at stop-loss and liquidation zones.
🔄 Quick Recovery = Fake Breakdown
If a strong red move is followed by a sharp V-shaped bounce within 24 hours—it was likely a trap. Quick recovery often means fake fear.
⚔️ Why Most Retail Traders Sell the Bottom
The brain reacts late. By the time retail decides it’s time to sell, the big players are already buying.
🧭 Real Decision Tools Over Emotion
Combine RSI, divergences, and volume metrics to make your decisions. Your gut is not a strategy—your tools are.
📉 Fake Candles: How to Spot Them
A candle with huge body but weak volume? Red flag. Especially on low timeframes. Always confirm with volume.
🔍 Timeframes Trick the Mind
M15 always looks scarier than H4. Zoom out. What feels like a meltdown might just be a hiccup on the daily chart.
🎯 Final Answer: Crash or Trap?
When you overlay psychology on top of price, traps become obvious. Don't trade the fear—trade the setup behind it.
🧨 Final Note: Summary & Suggestion
Most crashes are emotional plays, not structural failures. Use TradingView’s tools to decode the fear and flip it to your advantage. Add emotional analysis to your charting, and the market will start making sense.
always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅.
Give me some energy !!
✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box.
Cheers, Mad Whale. 🐋
Gut Feeling Vs. Technical Analysis- How I Take TradesTrading Is Both Art and Science
Every trader, no matter how data-driven, eventually encounters moments when they just know something about the market.
That quiet internal signal:
“Don’t touch this today.”
Or: “Get ready. Something’s coming.”
That’s not random emotion. That’s your gut feeling – and in trading, it's worth paying attention to. But here's the catch:
👉 Gut feeling alone isn’t enough.
👉 Technical analysis alone isn’t either.
The real edge comes when both align.
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What Is Gut Feeling in Trading?
“Gut feeling” is a term used to describe intuitive decisions that seem to arise without conscious reasoning. In trading, it often presents as a subtle inner nudge – a warning, a hesitation, or a surge of clarity.
Contrary to popular belief, it’s not just emotion. It’s often the result of:
• Unconscious pattern recognition from years (or decades) of chart-watching
• Internalized market behavior that doesn’t show up on an indicator
• Emotional awareness, sensing when the environment isn’t right to trade
Experienced traders know this isn’t “woo.” It’s pattern memory speaking quietly.
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On the Other Hand: What We Call Technical Analysis?
We all know the tools: support/resistance, price action, indicators like RSI, MACD, Bollinger Bands, maybe Smart Money Concepts or just clean trendlines, etc.
Technical analysis gives us structure — measurable, repeatable setups. But let’s not pretend it captures everything:
• News can spike irrationally
• Liquidity can vanish when you least expect it
• And sometimes, the chart says 'yes' but the market mood says 'don’t trust it'
That’s where gut feeling becomes the final filter.
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✅ Why I Wait for Alignment
Let’s be honest: most bad trades happen when you force action despite internal hesitation.
Here’s how I frame decisions:
✅ Full alignment
• Gut: Yes
• Technicals: Yes
• 👉 Take the trade
⚠️ Gut says no, but technicals agree
• Gut: No
• Technicals: Yes
• 🚫 Wait – something’s off
⚠️ Gut says yes, but technicals are unclear
• Gut: Yes
• Technicals: No
• 👁 Watch only – do not act
❌ No alignment
• Gut: No
• Technicals: No
• ✅ Stay out – smart decision
You’re not supposed to be in every trade. You’re supposed to be in the right trades.
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🔍 Real-Life Example: Gold (XAUUSD)
Yesterday, Gold surged due to geopolitical escalation and renewed tariff tension.
Is looking bullish now: descending trendline broken, above 3350 which acts as confluence support.
📈 The chart said: “Buy.”
🧠 But my gut said: “ No. This is an emotional move. It’s not done correcting .”
So I stayed out.
Why?
Because if I trade while my gut says “no”, I second-guess every tick.
Even if the chart is right, I start hoping it fails — just to prove my feeling was right.
That’s emotional sabotage.
But when gut and chart say the same thing, I don’t hesitate.
Even if the trade loses, I’m at peace. I executed from clarity, not conflict.
That’s not just technical skill. That’s mental edge.
🧠 How to Develop Trustworthy Intuition
If you’re new or inconsistent, your “gut feeling” might just be fear, greed, or FOMO. But over time, real intuition can be trained like a muscle.
1. Screen Time
The more markets you watch, the more silent patterns your brain absorbs. Eventually, you’ll “feel” momentum shifts before indicators print them.
2. Journaling
Write down what you felt before each trade. Did it align with your plan? Over time, you’ll spot which feelings were intuition and which were impulse.
3. Meditation & Clarity
The more you control your emotional noise, the easier it becomes to hear real signals.
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⚠️ Common Pitfalls: When Gut Feeling Betrays You
Let’s be clear – not every gut feeling is wise. Here are some red flags:
• Revenge trading disguised as confidence
• FOMO masked as intuition
• Fear of missing out during high volatility sessions
• Fatigue or stress, which distort perception
🧠 Tip: A real gut feeling comes with calm clarity, not urgency or adrenaline.
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🎯 Final Thought
Gut Feeling + Technical Analysis = Peace of Mind
The best trades aren’t just technically correct — they’re internally clean. No doubt. No hesitation. No self-conflict.
Wait for alignment. Then execute with full presence.
Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Explanation of indicators indicating high points
Hello, traders.
If you "Follow", you can always get new information quickly.
Have a nice day today.
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(BTCUSDT 1D chart)
If it falls below the finger point indicated by the OBV indicator, it can be interpreted that the channel consisting of the High Line ~ Low Line is likely to turn into a downward channel.
And, if it falls to the point indicated by the arrow, it is expected that the channel consisting of the High Line ~ Low Line will turn into a downward channel.
Therefore, if it is maintained above the point indicated by the finger, I think it is likely to show a movement to rise above the High Line.
In this situation, the price is located near the M-Signal indicator on the 1D chart, so its importance increases.
To say that it has turned into a short-term uptrend, the price must be maintained above the M-Signal indicator on the 1D chart.
In that sense, the 106133.74 point is an important support and resistance point.
(1W chart)
The HA-High indicator is showing signs of being created at the 99705.62 point.
The fact that the HA-High indicator has been created means that it has fallen from the high point range.
However, since the HA-High indicator receives the value of the Heikin-Ashi chart, it indicates the middle point.
In other words, the value of Heikin-Ashi's Close = (Open + High + Low + Close) / 4 is received.
Since the HA-High indicator has not been created yet, we will be able to know for sure whether it has been created next week.
In any case, it seems to be about to be created, and if it maintains the downward candle, the HA-High indicator will eventually be created anew.
Therefore, I think it is important to be able to maintain the price by rising above the right Fibonacci ratio 2 (106178.85).
Indicators that indicate high points include DOM (60), StochRSI 80, OBV High, and HA-High indicators.
Indicators that indicate these high points are likely to eventually play the role of resistance points.
Therefore,
1st high point range: 104463.99-104984.57
2nd high point range: 99705.62-100732.01
You should consider a response plan depending on whether there is support near the 1st and 2nd above.
The basic trading strategy is to buy at the HA-Low indicator and sell at the HA-High indicator.
However, if it is supported and rises in the HA-High indicator, it is likely to show a stepwise rise, and if it is resisted and falls in the HA-Low indicator, it is likely to show a stepwise decline.
Therefore, the basic trading method should utilize the split trading method.
Other indicators besides the HA-Low and HA-High indicators are auxiliary indicators.
Therefore, the trading strategy in the big picture should be created around the HA-Low and HA-High indicators, and the detailed response strategy can be carried out by referring to other indicators according to the price movement.
In that sense, if we interpret the current chart, it should be interpreted that it is likely to show a stepwise rise since it has risen above the HA-High indicator.
However, you can choose whether to respond depending on whether there is support from other indicators that indicate the high point.
On the other hand, indicators that indicate the low point include the DOM (-60), StochRSI 20, OBV Low, and HA-Low indicators.
These indicators pointing to lows are likely to eventually serve as support points.
I will explain this again when the point pointing to the lows has fallen.
-
Thank you for reading to the end.
I hope you have a successful trade.
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- Here is an explanation of the big picture.
(3-year bull market, 1-year bear market pattern)
I will explain the details again when the bear market starts.
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Weather and Corn: A Deep Dive into Temperature Impact1. Introduction: Corn and Climate – An Inseparable Relationship
For traders navigating the corn futures market, weather isn't just a background noise—it's a market mover. Few agricultural commodities are as sensitive to environmental variables as corn, especially temperature. Corn is grown across vast regions, and its development is directly tied to how hot or cold the season plays out. This makes weather not just a topic of interest but a core input in any corn trader’s playbook.
In this article, we go beyond conventional wisdom. Instead of simply assuming “hotter equals bullish,” we bring data into the equation—weather data normalized by percentile, matched with price returns on CME Group's corn futures. The results? Useful for anyone trading ZC or MZC contracts.
2. How Temperature Affects Corn Physiology and Yields
At the biological level, corn thrives best in temperatures between 77°F (25°C) and 91°F (33°C) during its growth stages. During pollination—a critical yield-defining window—extreme heat (especially above 95°F / 35°C) can cause irreversible damage. When hot weather coincides with drought, the impact on yields can be catastrophic.
Historical drought years like 2012 and 1988 serve as powerful examples. In 2012, persistent heat and dryness across the US Midwest led to a national yield drop of over 25%, sending futures skyrocketing. But heat doesn't always spell disaster. Timing matters. A heat wave in early June may have little impact. That same wave during tasseling in July? Major consequences.
3. The Market Mechanism: How Traders Respond to Temperature Surprises
Markets are forward-looking. Futures prices don’t just reflect today’s weather—they reflect expectations. A dry June may already be priced in by the time USDA issues its report. This dynamic creates an interesting challenge for traders: separating noise from signal.
During July and August—the critical reproductive phase—temperature updates from NOAA and private forecasters often trigger major moves. Rumors of an incoming heat dome? Corn futures might gap up overnight. But if it fizzles out, retracements can be just as dramatic. Traders who rely on headlines without considering what’s already priced in are often late to the move.
4. Our Analysis: What the Data Reveals About Corn and Temperature
To cut through the fog, we performed a percentile-based analysis using decades of weather and price data. Rather than looking at raw temperatures, we classified each week into temperature “categories”:
Low Temperature Weeks: Bottom 25% of the historical distribution
Normal Temperature Weeks: Middle 50%
High Temperature Weeks: Top 25%
We then analyzed weekly percentage returns for the corn futures contract (ZC) in each category. The outcome? On average, high-temperature weeks showed higher volatility—but not always higher returns. In fact, the data revealed that some extreme heat periods were already fully priced in, limiting upside.
5. Statistically Significant or Not? T-Tests and Interpretation
To test whether the temperature categories had statistically significant impacts on weekly returns, we ran a t-test comparing the “Low” vs. “High” temperature groups. The result: highly significant. Corn returns during high-temperature weeks were, on average, notably different than those during cooler weeks, with a p-value far below 0.01 (4.10854357245787E-13).
This tells us that traders can't ignore temperature anomalies. Extreme heat does more than influence the narrative—it materially shifts price behavior. That said, the direction of this shift isn't always bullish. Sometimes, high heat correlates with selling, especially if it’s viewed as destructive beyond repair.
6. Strategic Takeaways for Corn Traders
Traders can use this information in several ways:
Anticipatory Positioning: Use temperature forecasts to adjust exposure ahead of key USDA reports.
Risk Management: Understand that volatility spikes in extreme temperature conditions and plan stops accordingly.
Calendar Sensitivity: Prioritize weather signals more heavily in July than in May, when crops are less vulnerable.
Combining weather percentile models with weekly return expectations can elevate a trader’s edge beyond gut feel.
7. CME Group Corn Futures and Micro Corn Contracts
Corn traders have options when it comes to accessing this market. The flagship ZC futures contract from CME Group represents 5,000 bushels of corn and is widely used by commercial hedgers and speculators alike. For those seeking more precision or lower capital requirements, the recently launched Micro Corn Futures (MZC) represent just 1/10th the size.
This fractional sizing makes temperature-driven strategies more accessible to retail traders, allowing them to deploy seasonal or event-based trades without excessive risk exposure.
Here are some quick key points to remember:
Tick size for ZC is ¼ cent (0.0025) per bushel, equating to $12.50 per tick.
For MZC, each tick is 0.0050 equating to $2.50 per tick.
Standard ZC initial margin is approximately $1,000 and MZC margins are around $100 per contract, though this can vary by broker.
8. Wrapping Up: Temperature's Role in a Complex Equation
While temperature is a key driver in corn futures, it doesn't act in isolation. Precipitation, global demand, currency fluctuations, and government policies also play crucial roles. However, by quantifying the impact of extreme temperatures, traders gain a potential edge in anticipating market behavior.
Future articles will expand this framework to include precipitation, international weather events, and multi-variable models.
This article is part of a broader series exploring how weather impacts the corn, wheat, and soybean futures markets. Stay tuned for the next release, which builds directly on these insights.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
In Theory, You’re a Great Trader — In Practice, You’re Human🧠 10 Ways Trading Theory Falls Apart in Real Practice
Because in theory, you're rich. In practice, you panic-sold at support.
“In theory, there is no difference between theory and practice. In practice, there is.”
— Yogi Berra
Welcome to trading — where you read about patience and discipline, and then blow up your account chasing a breakout at 3AM.
Let’s explore the top 10 ways trading theory gets wrecked by real-world execution, complete with painful honesty and maybe a laugh or two (because crying is for after market close).
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1. 🎯 In theory: You always follow your trading plan.
In practice:
You make a new plan after every trade.
That loss wasn’t part of “the plan,” so obviously the plan was wrong. Let’s fix it — during the trade — in real-time — while it bleeds. Genius.
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2. 🧘♂️ In theory: You manage risk carefully.
In practice:
"Let me just move the stop... just this once... just 10 more pips..."
Before you know it, your stop loss is in the next timezone, and your trade is now a long-term investment.
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3. 📊 In theory: Backtesting proves the strategy works.
I n practice:
Backtest = you, alone, with no emotions, clicking replay in TradingView.
Live trading = markets screaming, Twitter panicking, and you entering on the 1-minute chart because “it felt right.”
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4. 💻 In theory: You’ll be objective.
In practice:
You saw one green candle and whispered:
“This is it. The reversal. I feel it.”
You weren’t objective. You were in a situationship with your trade.
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5. 💰 In theory: R:R 2:1 minimum.
In practice:
You close at +0.3R “just to be safe” — and then it hits target 10 minutes later while you re-enter worse, and get stopped.
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6. 🕒 In theory: You wait for confirmation.
In practice:
You anticipate confirmation. You hope for confirmation.
Spoiler: hope is not a strategy. But hey, at least you learned… again.
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7. 🤖 In theory: You’re a rules-based, emotionless trader.
In practice:
You meditate, breathe deeply, journal, and then buy Gold after CPI with no stop loss and max leverage.
So much for being the Terminator.
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8. 📚 In theory: More knowledge = better performance.
I n practice:
You read five books, memorized all candlestick names, and still entered long into resistance because it “looked bullish.”
Trading isn’t trivia night. It’s controlled decision-making under fire.
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9. 😤 In theory: You’ll accept losses calmly.
In practice:
First you rage-quit. Then you revenge trade. Then you open ChatGPT and ask:
“Should I hedge this 80% drawdown?”
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10. 📆 In theory: You’ll be consistent.
In practice:
You traded London Open on Monday, Asian Session on Tuesday, and New York close on Friday.
Consistency? You don’t even use the same time frame twice in a row.
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🚧 So… how do you bridge the gap?
1. Journal your trades — honestly. Especially the emotional mess-ups.
2. Create rules you can actually follow — not Instagram-quote rules.
3. Simulate real conditions — including drawdowns, boredom, and fakeouts.
4. Accept that mistakes are part of the job — and build for resilience, not perfection.
5. Trade small enough that you don’t care much — so you can learn while surviving.
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🎯 Final word:
Trading theory is like a clean whiteboard.
But the market? It’s a chaotic toddler with crayons and no rules.
If you can operate inside that chaos — with clarity and emotional control — that’s when the theory starts working.
Understanding VWAP In TradingWhat is VWAP?
VWAP is a price benchmark that gives more importance to prices where higher trading volume occurs. Unlike simple moving averages, which treat each price point equally, VWAP provides a volume-weighted perspective, making it more representative of market activity.
Traders use VWAP to gauge market trends, confirm trade entries and exits, and measure the quality of executions relative to the market's liquidity.
How Institutional Traders Use VWAP
Large financial institutions and mutual funds execute large orders over time to minimize their market impact.
VWAP helps them:
Achieve better execution by ensuring their orders are filled at a price close to the session's average.
Reduce market impact by avoiding aggressive buying or selling at extreme price points.
Gauge liquidity and time their orders efficiently.
Role of VWAP in Algorithmic Trading
VWAP is integral to algorithmic trading strategies that automate order execution.
Algorithms use VWAP in:
VWAP Trading Strategies: Algorithms execute orders in line with VWAP to avoid moving the market.
Mean Reversion Trading: Traders look for deviations from VWAP, buying when the price is below and selling when it is above.
Liquidity-Based Order Execution: Algorithms track VWAP to execute trades more efficiently, particularly in high-frequency trading (HFT).
Why VWAP is a Critical Benchmark for Intraday Traders
For short-term traders, VWAP provides key insights into market behavior:
Trend Confirmation: If the price is above VWAP, it indicates bullish sentiment; below VWAP suggests bearish conditions.
Entry and Exit Points: Traders use VWAP as support/resistance for trade decisions.
Institutional Footprint: Retail traders track VWAP to understand where large orders might be executing.
Since VWAP resets daily, it remains a highly relevant indicator for gauging intraday momentum and trend strength.
Calculation
Where:
Price = (High + Low + Close) / 3 (Typical Price for each period)
Volume = The total number of shares/contracts traded in the period
Understanding How VWAP is Calculated:
Calculate the Typical Price (TP): TP=High+Low+Close/3
Multiply TP by Volume for each time period to get the Cumulative Price-Volume product.
Sum the Price-Volume values cumulatively throughout the day.
Divide by the cumulative volume up to that time.
Since VWAP is cumulative from the market open, it resets at the start of each trading day.
Difference Between VWAP and Moving Averages
VWAP
Volume-weighted
Resets daily
Determines fair value in a session
Reacts to volume spikes
Moving Averages (SMA/EMA)
Equal-weighted (SMA) or Exponentially weighted (EMA)
Continuous across multiple sessions
Identifies overall trend direction
Reacts to price changes
How to Interpret VWAP
When the price is above VWAP: It suggests that the market is in an uptrend, and VWAP may act as support if the price retraces.
When the price is below VWAP: It signals a downtrend, and VWAP may act as resistance if the price attempts to rise.
Reclaiming VWAP: If the price moves below VWAP but then breaks back above it, this could signal a bullish reversal. The opposite is true for a bearish scenario.
VWAP and Market Trend Identification
Uptrend: If the price remains consistently above VWAP and VWAP itself is sloping upward, the market is in an uptrend.
Downtrend: If the price stays below VWAP and VWAP is sloping downward, the market is in a downtrend.
Sideways Market: If the price oscillates around VWAP and VWAP remains flat, the market is range-bound.
VWAP Standard Deviations (Bands) and Their Significance
First Standard Deviation (VWAP ±1σ)
Represents a normal fluctuation around VWAP.
Prices bouncing within this range indicate balanced market activity.
Second Standard Deviation (VWAP ±2σ)
Suggests stronger price movement.
A move beyond this level may indicate an overbought (above VWAP) or oversold (below VWAP) condition.
Third Standard Deviation (VWAP ±3σ)
Extreme price movement; rarely sustained.
A reversion back toward VWAP is highly likely.
Misinterpreting VWAP Signals
Many traders assume that VWAP alone dictates market direction. However, simply being above or below VWAP does not automatically mean the market is bullish or bearish. Market structure, momentum, and external factors such as news events or institutional order flows must also be considered.
How to Avoid It?
Look for Confirmation: Use VWAP in combination with price action and other indicators, such as volume, market structure, and momentum oscillators (e.g., RSI or MACD).
Check the Trend of VWAP: If VWAP is sloping upward and price is above it, this signals strength. Conversely, a downward-sloping VWAP with price below it indicates weakness.
Observe Price Interaction with VWAP: If the price consistently bounces off VWAP and continues in the trend direction, it confirms its role as dynamic support or resistance. If the price frequently crosses VWAP back and forth without clear direction, it signals a choppy, range-bound market.
Strategies
VWAP Bounce
If the price pulls back to VWAP and holds, traders may look for a long entry (in an uptrend) or a short entry (in a downtrend).
Stop-loss orders are often placed slightly beyond VWAP in case of a trend reversal.
VWAP Breakout
If the price consolidates near VWAP and then breaks out strongly, traders may enter in the direction of the breakout.
A sustained break above VWAP signals strength, while a break below VWAP signals weakness.
VWAP as a Reversion Point
Traders monitor price deviations from VWAP. If the price moves too far from VWAP, a reversion trade back toward VWAP may be expected.
Key Takeaways
VWAP Represents Fair Value – It calculates the average price of a security, weighted by volume, giving traders insight into where most of the trading activity has occurred.
Intraday Benchmark – VWAP resets daily and is primarily used by intraday traders and institutions to assess whether prices are trading at a premium or discount.
Support and Resistance Tool – VWAP often acts as dynamic support in uptrends and resistance in downtrends, helping traders make entry and exit decisions.
Institutional Trading Guide – Large institutions use VWAP to execute orders efficiently, minimizing market impact and ensuring better fills.
VWAP vs. Moving Averages – Unlike moving averages, which continue across multiple sessions, VWAP is cumulative from the market open and resets each day.
Trend Confirmation – Price above a rising VWAP signals a strong uptrend, while price below a declining VWAP suggests a downtrend.
Avoid Over-Reliance – While useful, VWAP should be combined with volume analysis, price action, and other indicators to avoid false signals.
VWAP Bands for Overbought/Oversold Levels – Standard deviation bands around VWAP can help identify price extremes and potential mean reversion setups.
VWAP is more than just an average—it's the heartbeat of market sentiment, revealing where true liquidity and fair value align.
Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
Learning#01 : Master Candle Theory🕯️ Master Candle Theory:
The Hidden Price Action Signal Most Traders Overlook
Introduction
In a world full of overcomplicated indicators and conflicting signals, sometimes the simplest patterns reveal the deepest insights. Master Candle Theory is one such underrated concept — a clean, structure-based method of reading price that often signals major breakouts before they happen.
Whether you're a beginner trying to understand price behavior or a seasoned trader looking to tighten your entries, this article will break down how to identify, understand, and apply Master Candle setups in real markets.
🔍 What is a Master Candle?
A Master Candle (MC) is a single large candlestick that fully engulfs the range (high to low) of the next 3 to 5 candles.
To qualify as a Master Candle:
The candle must have a relatively large range.
The next 3–5 candles should form completely within the high and low of that Master Candle.
These inside candles usually show reduced volatility and indecision.
This creates a "box" or price compression zone, which often leads to a significant breakout.
📊 Why It Matters
Price moves in cycles: expansion → contraction → expansion.
Master Candle formations represent the contraction phase — a build-up of pressure. Traders watching for breakouts from these formations can catch the next expansion leg with better precision.
Key benefits:
Clear structure: Easy to identify on any time frame.
Built-in risk control: The high and low of the MC give natural breakout and stop-loss levels.
Works across markets: Forex, crypto, indices — the principle applies universally.
🛠️ How to Trade the Master Candle Setup
Step 1: Identify the Master Candle
Look for a candle with a wide range.
Confirm that the next 3–5 candles stay within the high-low range of the MC.
Step 2: Mark the MC Range
Draw horizontal lines at the high and low of the MC.
This defines your breakout zone.
Step 3: Wait for a Breakout
Price should break out clearly above or below the MC range.
Volume increase or confirmation candle helps strengthen the signal.
Step 4: Manage the Trade
Entry: On breakout close or retest of the MC boundary.
Stop-loss: Just inside the opposite side of the MC.
Targets: Use previous structure, Fibonacci, or a fixed R:R ratio (e.g., 1:2+).
☠️ Pro Tips and Common Mistakes
✅ Best on higher time frames: MC setups are more reliable on 1H and above.
✅ Look for confluence: Combine MC setups with support/resistance, trendlines, or moving averages for higher probability trades.
❌ Avoid trading inside the MC range: It’s a zone of uncertainty — wait for confirmation.
❌ Don’t force the setup: Not every big candle is a Master Candle. Let the market show you clean, well-formed patterns.
🧠 Kiran’s Approach:
Real-World Application of Master Candle Theory
While the core theory is powerful on its own, I’ve refined a method that filters noise and improves accuracy using a multi-timeframe strategy I call HTF ~ LTF (Higher Time Frame vs. Lower Time Frame).
Here’s how I apply it in my day-to-day trading:
Identify the Master CandleI start by spotting a valid Master Candle and marking its high and low. This forms my breakout zone.
Define the No-Trade ZoneThe middle of the MC range is what I call the No-Trade Zone — a chop area where false breakouts are common. I avoid trading within this midrange.
Use HTF ~ LTF Confluence for BreakoutsOnce the price breaks the high or low of the Higher Time Frame (HTF) Master Candle, I don’t enter right away. Instead, I drop down to the Lower Time Frame (LTF) and wait for a candle to close beyond that breakout level.
Entry ConfirmationMy entry is taken above the high of the breakout candle on the LTF (for long setups), and vice versa for shorts. This gives me an added layer of confirmation and filters out weak breakouts.
Target and Stop-Loss
Target:
The full range of the Master Candle.
Stop-Loss:
For long trades: below the low of the MC.
For short trades: above the high of the MC.
⏱️ Ideal Time Frame Pairings
To apply the HTF ~ LTF (Higher Time Frame vs. Lower Time Frame) approach effectively, I use different time frame combinations based on the style of trade:
⏱️ For Intraday Trades:
Higher Time Frame: 15-minute or 25-minute
Lower Time Frame: 5-minute
⏱️ For Swing Trades:
Higher Time Frame: 75-minute or 1-Day
Lower Time Frame: 25-minute
⏱️ For Positional Trades:
Higher Time Frame: 1-Week
Lower Time Frame: 75-minute
This layered approach has helped me filter out noise, catch stronger momentum moves, and keep my trades structured and disciplined.
📈 Real Market Example
👻 Valid Breakout with Target Example :
👻 Valid Breakout with Partial Target Example :
👻 False Breakout with Valid Breakout Example :
📚 Final Thoughts
Master Candle Theory is a great way to bring structure and patience into your trading. Instead of chasing price, you’re learning to anticipate breakouts and position yourself logically.
Like all strategies, it’s not a magic bullet — but with the right discipline and context, Master Candles can become a high-probability tool in your technical arsenal.
Correlation between USDT.D and BTC.D
Hello, traders.
If you "Follow", you can always get new information quickly.
Have a nice day today.
-------------------------------------
(USDT.D 1M chart)
If USDT dominance is maintained below 4.97 or continues to decline, the coin market is likely to be on the rise.
The maximum decline is expected to be around 2.84-3.42.
-
(BTC.D 1M chart)
However, in order for the altcoin bull market to begin, BTC dominance is expected to fall below 55.01 and remain there or show a downward trend.
Therefore, we need to see if it falls below the 55.01-62.47 range.
The maximum rise range is expected to be around 73.63-77.07.
-
In summary of the above, since funds are currently concentrated in BTC, it is likely that BTC will show an upward trend, and altcoins are likely to show a sideways or downward trend as they fail to follow the rise of BTC.
The major bear market in the coin market is expected to begin in 2026.
For the basis, please refer to the explanation of the big picture below.
-
Thank you for reading to the end.
I hope you have a successful transaction.
--------------------------------------------------
- This is an explanation of the big picture.
(3-year bull market, 1-year bear market pattern)
I will explain more details when the bear market starts.
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Using The Zig-Zag Indicator To Gain Clarity On Your Price ChartIn my experience, learning how to read a price chart, specifically understanding the ebbs and flows of a trend, is the biggest hurdle that newer traders face. At least on the technical side of things.
Something that helped me shorten that learning curve at the beginning of my trading career was the "Zig-Zag" indicator. Now, I didn't use it as part of a strategy or anything like that. Rather, it was a tool that helped train my eyes to read extensions and retracements in the markets both at a beginner and advanced level.
If you're someone that is struggling, hopefully it can do the same for you.
Please remember to support by hitting that like button and if you thought this video was helpful please share so other traders can benefit as well.
Akil
Most Traders Want Certainty. The Best Ones Want Probability.Hard truth:
You’re trying to trade like an engineer in a casino.
You want certainty in an environment that only rewards probabilistic thinking.
Here’s how that kills your edge:
You wait for “confirmation” — and enter too late.
By the time it feels safe, the market has moved.
You fear losses — but they’re the cost of data.
Good traders don’t fear being wrong. They fear not knowing why.
You need to think in bets, not absolutes.
Outcomes don’t equal decisions. Losing on a great setup is still a good trade.
🎯 Fix it with better framing.
That’s exactly what we designed TrendGo f or — to help you see trend strength and structure without delusions of certainty.
Not perfect calls. Just cleaner probabilities.
🔍 Train your brain for the game you’re playing — or you’ll keep losing by default.
HA-RSI + Stochastic Ribbon: The Hidden Gem for Trend & MomentumNavigating volatile markets requires more than just raw price action. The Heikin Ashi RSI Oscillator blends the power of smoothed candlesticks with momentum insights to give traders a clearer picture of trend strength and reversals.
At Xuantify , we use the Heikin Ashi RSI Oscillator as a hybrid momentum and trend tool. While the indicator calculations are based on Heikin Ashi values to smooth out noise and better capture trend dynamics, the chart itself displays standard candlesticks (real price data) . This ensures that all signals are aligned with actual market structure, making it easier to execute trades with confidence and clarity.
This dual-layer approach gives us the best of both worlds: clarity from smoothing and precision from real price action. MEXC:SOLUSDT.P
🧠 How We Use It at Xuantify
At Xuantify , we integrate the Heikin Ashi RSI Oscillator into our multi-layered strategy framework. It acts as a trend confirmation filter and a momentum divergence detector , helping us avoid false breakouts and time entries with greater precision. We pair it with volume and volatility metrics to validate signals and reduce noise. Note the Stochastic Ribbon Overlay as shown in the chart, very accurate for momentum.
⭐ Key Features
Heikin Ashi Smoothing : Filters out market noise for clearer trend visualization.
RSI-Based Oscillation : Measures momentum shifts with precision.
Color-Coded Bars : Instantly identify bullish/bearish momentum.
Dynamic Signal Zones : Customizable overbought/oversold thresholds.
Stochastic Ribbon Overlay : A powerful multi-line stochastic system that enhances momentum analysis and trend continuation signals.
💡 Benefits Compared to Other Indicators
Less Whipsaw : Heikin Ashi smoothing reduces false signals common in traditional RSI.
Dual Insight : Combines trend and momentum in one visual.
Better Divergence Detection : Easier to spot hidden and regular divergences.
Visual Simplicity : Clean, intuitive design for faster decision-making.
⚙️ Settings That Matter
RSI Length : Default is 14, but we often test 10 or 21 for different timeframes.
Smoothing Type : EMA vs. SMA – EMA reacts faster, SMA is smoother.
Overbought/Oversold Levels : 70/30 is standard, but 80/20 can reduce noise in trending markets.
📊 Enhancing Signal Accuracy
Combine with Volume Oscillators to confirm momentum strength.
Use Price Action Zones to validate oscillator signals.
Look for Divergences between price and oscillator for early reversal clues.
🧩 Best Combinations with This Indicator
MACD : For cross-confirmation of momentum shifts.
Bollinger Bands : To identify volatility squeezes and breakouts.
Support/Resistance Levels : For contextual trade entries and exits.
⚠️ What to Watch Out For
Lag in Strong Trends : Like all smoothed indicators, it may react slightly late.
Over-Optimization : Avoid curve-fitting settings to past data.
Standalone Use : Best used in conjunction with other tools, not in isolation.
🚀 Final Thoughts
The Heikin Ashi RSI Oscillator is a powerful hybrid tool that simplifies complex market behavior into actionable insights. At Xuantify, it’s a core part of our strategy toolkit, helping us stay ahead of the curve with clarity and confidence.
🔔 Follow us for more educational insights and strategy breakdowns!
We regularly share deep dives into indicators, trading psychology, and backtested strategies. Stay tuned and level up your trading game with us!
SMI vs. Stochastic: Which One Gives You the Edge?Momentum indicators are essential tools in every trader’s arsenal—but not all are created equal. While the Stochastic Oscillator has been a go-to for decades, the Stochastic Momentum Index (SMI) offers a more refined and reliable way to read market momentum.
In this post, we’ll break down the key differences between these two indicators, how we use them at Xuantify , and why the SMI might just give you the edge you’ve been looking for.
🧠 How We Use It at Xuantify
We’re always looking for tools that offer greater precision and less noise . While the Stochastic Oscillator is one of the most commonly used tools for spotting overbought and oversold conditions, the Stochastic Momentum Index (SMI) gives us a clearer, smoother view of momentum —especially in volatile or choppy markets.
We use the SMI to refine our entries and exits , particularly when trading breakouts or reversals. MEXC:ETHUSDT.P
⭐ Key Features
Stochastic Oscillator : Measures the closing price relative to the high-low range. Simple and responsive. Great for spotting short-term reversals.
Stochastic Momentum Index (SMI) : Measures the distance of the current close from the midpoint of the high-low range. Smoother and more centered around zero. Better at filtering out false signals.
💡 Benefits Compared to Other Indicators
Stochastic Oscillator vs. SMI:
Signal Smoothness: Moderate vs. High
Noise Filtering: Low vs. Excellent
Centered Oscillation: No vs. Yes (around 0)
Best Use Case: Range-bound markets vs. Trend shifts & momentum confirmation
False Signal Risk: Higher vs. Lower
The SMI is especially useful when you want to avoid whipsaws and get a more reliable read on momentum .
⚙️ Settings That Matter
Stochastic Oscillator : %K = 14, %D = 3
SMI : Length = 14, Signal Smoothing = 3, Double Smoothing = 3
You can adjust the SMI smoothing values to match the volatility of the asset— lower smoothing for fast markets , higher for slower ones.
📊 Enhancing Signal Accuracy
Enhance SMI signals by combining them with:
Trend filters like EMAs or Supertrend
Volume confirmation
Support/resistance zones
Divergence spotting for early trend reversals
This layered approach helps us avoid false positives and stay aligned with the broader trend .
🧩 Best Combinations with This Indicator
SMI + EMA Crossovers: Confirm momentum with trend direction
SMI + RSI Divergence: Spot early reversals with confluence
SMI + Volume Profile: Validate momentum near key price levels
⚠️ What to Watch Out For
Lag in fast markets: SMI’s smoothing can delay signals slightly
Over-optimization: Avoid excessive tweaking of parameters
Not ideal alone: Best used with confluence tools for confirmation
🚀 Final Thoughts
The Stochastic Oscillator is a classic for a reason—but the Stochastic Momentum Index is a refined evolution . We’ve found that SMI gives us cleaner signals , better momentum clarity , and fewer false alarms —especially when paired with smart filters.
If you're looking to upgrade your momentum toolkit , the SMI might just be your edge.
🔔 Follow us for more educational insights and strategy breakdowns!
We break down indicators, strategies, and market psychology to help you trade smarter—not harder.
Taming the Trend: Mastering the Williams Alligator IndicatorEver wondered how to spot when the market is sleeping or ready to roar? At Xuantify , we use the Williams Alligator Indicator to decode market behavior with precision. Whether you're trading crypto, forex, stocks, or indices — this tool adapts across all markets. Let's take a closer look using BINANCE:BTCUSDT
🧠 How We Use It at Xuantify
We treat the Alligator as a trend confirmation and timing tool . We don’t just look for crossovers — we analyze the distance , angle , and alignment of the lines to gauge market momentum and trend maturity. It’s especially powerful when combined with volume and volatility filters.
⭐ Key Features
Three Smoothed Moving Averages
Jaw (Blue) : 13-period, shifted 8 bars forward
Teeth (Red) : 8-period, shifted 5 bars forward
Lips (Green) : 5-period, shifted 3 bars forward
Visual Trend Clarity :
The spacing and direction of the lines reveal trend strength and direction
Built-in Delay :
Forward shifting helps anticipate rather than react
💡 Benefits Compared to Other Indicators
Trend Clarity
Alligator : Strong — bold trend visualization
Moving Averages : Moderate — can lag or overlap
MACD : Good — clear histogram and signal line
Noise Filtering
Alligator : Excellent — smooths out market noise
Moving Averages : Low — sensitive to short-term fluctuations
MACD : Good — filters minor moves
Early Signals
Alligator : Moderate — waits for confirmation
Moving Averages : Fast — quick crossovers
MACD : Fast — early divergence signals
Visual Simplicity
Alligator : Clear — easy to interpret trend phases
Moving Averages : Cluttered — multiple lines can overlap
MACD : Complex — requires interpretation of histogram + lines
⚙️ Settings That Matter
For shorter timeframes : Reduce periods (e.g., 8-5-3) for faster signals
For longer timeframes : Stick with defaults or increase smoothing for clarity
Shift values : Keep them forward-shifted to maintain predictive edge
📊 Enhancing Signal Accuracy
Wait for clear separation between the lines
Confirm with volume spikes or breakouts
Use price action (e.g., higher highs/lows) as confirmation
🧩 Best Combinations with This Indicator
Fractals : For entry/exit signals
ATR : For dynamic stop-loss placement
RSI or Stochastic : To avoid overbought/oversold traps
Volume Profile : To validate breakout zones
⚠️ What to Watch Out For
Flat Alligator = No Trade Zone : Avoid trading when lines are tangled
Lag in Fast Markets : In high-volatility assets, the Alligator may react late
Over-reliance : Always combine with other tools for confirmation
🚀 Final Thoughts
The Williams Alligator isn’t just an indicator — it’s a market behavior model . At Xuantify, we use it to stay aligned with the market’s rhythm, avoid chop, and ride trends with confidence.
🔔 Follow us for more educational insights and strategy breakdowns!
Strategy & Education: Trading with Fibonacci and Order Blocks🔍 Trading Strategy Based on Fibonacci Levels and Order Blocks
This chart showcases three consecutive sell trades I executed on the BTCUSDT pair, each resulting in a profitable outcome. The purpose of this explanation is to demonstrate how Fibonacci retracement levels can be combined with Order Block zones to identify high-probability trade setups.
🧩 The Foundation: Understanding Price Retracement Behavior
The ABC, abc, and (a)(b)(c) structures marked on the chart are not Elliott Waves. Instead, these labels are used to represent simple retracement movements in the market. The focus here is not wave theory, but recognizing how price reacts and pulls back after a move, and how we can benefit from these reactions.
📌 Trade 1: Primary Fibo-OB Confluence
I drew a Fibonacci retracement from the A wave to the B wave.
The price then retraced to the C area, landing between the 0.618 and 0.786 Fibonacci levels, where an Order Block (OB) was also present.
This overlap created a strong technical and structural resistance zone.
I entered the first sell trade from this confluence.
📌 Trade 2: Internal Retracement and OB Alignment
Inside the first corrective move, a smaller abc pattern formed.
I applied Fibonacci again from small a to small b.
The c leg reached the same key Fibonacci zone (0.618–0.786) and overlapped with a second OB.
This confluence offered a second sell entry.
📌 Trade 3: Micro Structure – Same Logic Reapplied
I repeated the exact same logic one more time on a micro (a)(b)(c) structure.
Fibonacci from (a) to (b), price touched 0.618–0.786, coinciding again with an OB.
This became the third and final sell position.
🧠 The Logic Behind the Strategy:
Price doesn’t move in straight lines—it flows in waves. During pullbacks, if Fibonacci levels align with Order Block zones, the market tends to react strongly. My focus here was to identify these areas of confluence in advance and enter trades at high-probability turning points.
london break out strategy (my strategy) back test :2025 mayto learn is to share...
hello traders!
this is back test of london breakout strategy for gbp usd pair for month of the may.
i hope u read this see the idea that i had give me your comments and ideas ,maybe help me fix my mistakes, maybe it gives you some lead and etc. no more talking straight to the strategy ...
strategy summary the Strat focuses on breaking the range market of the asian session,
first u got to mark the high and low of the price between 4 am to 6 am utc then you have range that in the chart i showed like box , next we wait till 7 am utc , if price was out of the box zone we open a trade toward the trend( if it broke above you open a long and vise versa) or if it wasn't u simply wait for price to close above or below, then you open a trade with sl put on the opposite side of the box and profit set to 1.5 times of the sl. only one trade per day is acceptable .
there are some exception that you don't have to trade:
1.when there is bank holiday
2.when your sl would exceed 50 pip (that's high of a risk)
3. further effect of the news shall be studied that i didn't consider in this back test
I've put the results in an ai and asked it to analyze the results:
Summary Statistics
Total Trades: 19
Total Profit: +152.3 pips
Average Profit per Trade: +8.02 pips
Max Profit in a Trade: +49.0 pips
Max Loss in a Trade: -30.2 pips
Winning Trades: 10
Losing Trades: 9
Win Rate: 52.6%
Profit Factor: 1.74 (total gain / total loss)
Using Previous Day’s High and Low to Decide Intraday TrendIntroduction and Disclaimer
This article explains how to use the daily chart to understand and plan for short-term or intraday market direction.
To fully understand this, you should already know what directional bias means. If you’re not familiar with it, I highly recommend reading my previous article on the topic before continuing here.
Disclaimer
I'm not a financial advisor.
This article does not offer financial, investment, legal, or any kind of regulated advice.
It's made for educational and entertainment purposes only.
Trading involves risk. You can lose all your money—or even more—if you’re not careful.
You're reading the thoughts of a 22-year-old.
The goal of this article is to show you how to use the previous day’s high and low on a daily chart to:
Get a clear intraday bias (bullish or bearish).
Find entry signals for your trades.
Set clear invalidation points, meaning when a trade idea becomes invalid.
This is part of what’s called multi-timeframe analysis—looking at higher time frames to understand what might happen on lower ones.
Even if you trade short-term (like on 5 or 15-minute charts), it's still helpful to know what the bigger picture (like the daily chart) looks like. Why? Because it shows the main trend, important levels, and key zones that may not appear on lower time frames.
In my opinion, smart trading involves breaking down the price chart from top to bottom—starting with the big picture—then making decisions based on your trading strategy.
The ideas in this article work well for:
Intraday traders who want to capture moves during the day, and
Swing traders who want to catch bigger moves by entering early.
This concept can also be applied to higher time frames, such as the previous week’s high and low.
How to Secure Prop Firm Funding: Proven Strategies to Pass1️⃣ How to Secure Prop Firm Funding: Proven Strategies to Pass Challenges 📈
Introduction ✨
Securing prop firm funding opens the door to trading substantial capital and achieving financial freedom. However, passing these evaluations requires meticulous strategy, disciplined execution, and smart risk management. This article provides actionable strategies, optimized trading setups, and insights on leveraging AI to ensure you successfully navigate and pass your prop firm challenges.
Understanding Prop Firm Evaluations 📊🔍
Prop firm challenges typically include specific trading objectives:
💰 Profit targets (8–10% within 30 days)
⛔ Daily loss limits (usually 5%)
📉 Maximum drawdown limits (typically 10%)
💡 Tip: Print the rules and display them at your workspace to avoid rule breaches.
Focus on One High-Probability Strategy 📌🎯
Consistently profitable traders use one rigorously tested strategy. For example, a popular setup:
🔄 Liquidity Sweep: Wait for price to clear stops above recent highs or lows.
⚡ Market Structure Break (BOS): Enter after price breaks and confirms a new trend.
📥 Entry: Order block (OB) or Fair Value Gap (FVG).
Example Trade:
🔗 Pair: EUR/USD
🔽 Entry: OB after sweep at 1.0800
🛑 Stop Loss (SL): 1.0820
🎯 Take Profit (TP): 1.0740
📊 Risk-to-Reward Ratio (RRR): 3:1
Start Small, Think Big 🧠🌱
Initially, risk only 0.5% per trade to maintain psychological comfort and buffer against drawdowns. Increase risk gradually once you have a profit cushion.
Leverage AI Insights 🤖📊
Modern traders enhance decision-making using AI-driven tools:
🟢 AI indicators for real-time liquidity detection
🔵 Predictive analytics for entry confirmations
Efficient Risk Management 🛡️⚖️
Set daily and weekly risk limits. For instance:
⏳ Maximum daily risk: 1%
📅 Weekly drawdown cap: 3%
Practical Example:
💵 If trading a $100,000 account, never risk more than $1,000 in a single day.
Journaling for Improvement 📒📝
Record every trade’s rationale, execution details, and outcome. This fosters accountability and improvement.
Conclusion ✅
Securing prop funding isn't about luck but disciplined, strategic execution. Optimize your trading, leverage technology, and strictly manage risk to ensure long-term success. 🏆
Learn What Time Frame to Trade. Gold Forex Trading Basics
If you just started trading, you are probably wondering how to choose a trading time frame.
In the today's post, I will go through the common time frames, and explain when to apply them.
1m; 5m, 15m Time Frames
These 4 t.f's are very rapid and are primarily applied by scalpers .
If your goal is to catch quick ebbs and flows within a trading session, that is a perfect selection for you.
30m, 1H Time Frame
These 2 are perfectly suited for day traders.
Executing the analysis and opening the trades on these time frames,
you will be able to catch the moves within a trading day.
4h, Daily Time Frames
These time frames are relatively slow .
They are mostly applied by swing traders, who aim to trade the moves that last from several days to several weeks.
Weekly, Monthly Time Frames
These time frames reveal long-term historical perspective and are mostly used by investors and position traders.
If your goal is to look for buy & hold assets, these time frames will help you to make a reasonable decision.
📝When you are choosing a time frame to trade, consider the following factors :
1️⃣ - Time Availability
How much time daily/weekly are you able to sacrifice on trading?
Remember a simple rule: lower is the time frame, more time it requires for management.
2️⃣ - Risk Tolerance
Smaller time frames usually involve higher risk,
while longer-term time frames are considered to be more conservative and stable.
3️⃣ - Your Trading Goals
If you are planning to benefit from short term price fluctuations you should concentrate your attention on lower time frames,
while investing and long-term capital accumulation suite for higher time frames.
Time frame selection is nuanced and a complex topic. However, I believe that these simple rules and factors will help you to correctly choose the one for you.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
THE CONCEPT OF SUPPORT BECOMING RESISTANCE In the context of forex trading, the concept of "support becoming resistance" refers to a phenomenon that occurs when a price level that previously acted as a support level for an asset's price now switches roles and becomes a resistance level after it has been broken.
Here's a more detailed explanation:
Support Level: In forex trading, a support level is a price level at which a currency pair or any other financial instrument tends to find buying interest. This buying interest is strong enough to halt or reverse a downtrend in the price. Traders believe that the asset's price is likely to "bounce" off this support level and move higher, making it an essential point on the price chart.
Resistance Level: On the other hand, a resistance level is a price level where selling interest is significant enough to prevent the price from rising further. It acts as a barrier that tends to halt or reverse an uptrend in the price. Traders expect the price to "bounce" off this resistance level and move lower.
Support Becoming Resistance: The interesting concept comes into play when the price breaks below a previously established support level. When a support level is breached and the price continues to decline, it signifies a shift in market sentiment. The level that was once a support now becomes a resistance level for the price. If the price attempts to rally back up and reach that previous support level, it often faces selling pressure from traders who missed the initial breakdown and now see it as an opportunity to sell at a better price. As a result, the price might struggle to move beyond that level, and it starts acting as a resistance zone.
Understanding Market StructureIn this video, I break down market structure in a simple and easy-to-digest way, helping you understand how to identify whether the market is in an uptrend or downtrend.
Recognizing market direction is a key skill for any trader, it allows you to trade in alignment with price action and make more confident, higher-probability decisions.
✅ If you're new to trading or want to sharpen your edge, this video will give you the insights needed to read market trends more clearly.
📈 Hope you find value in this breakdown!
👉 Don’t forget to like, comment, and subscribe to support the channel and stay tuned for more educational content.