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[welgro]

[welgro]

[rj82]

[welgro]

CRUDEOIL14DECFUT

[welgro]

Descending broadening wedge

Descending broadening wedges are continuation chart patterns formed by a channel that widens and is against the trend. Forex volumes tend to increase during the formation of such a wedge.

A break through the resistance line provides a good signal to trade into a continuation of the trend with a price target equal to the height that separates the pattern's high and low.

http://www.forex-central.net/chart-patterns/broadening-wedges.php

[welgro]

"1-2-3-4" - Reversal Pattern ( Price Action Trading )

1. TL is broken.
2. PA failed to make HH ( for Sell ) or LL ( for Buy ).
3. BO of 2 ( confirmation that the trend is changed ).



Learned from here : http://lordicescurrencytrading.blogspot.in/2012/04/1-2-3-4-reversal-pattern-formation.html

[welgro]

Price action is how price moved the way it did. It is what you see on a chart.

Supply Demand is what the reason behind price action to do what it did.

In short supply demand zones form the origin of price beginning its journey up or down.

Clever traders buy where they buy-or sell where they sell and they stay ahead of price action by understanding and applying price action causes and effects ahead of its happening.

The video here helps getting it.
What odds favour supply demand shifts?
see ODDS ENHANCERS picture

http://www.youtube.com/watch?v=Um5gDT7whcI

[welgro]

Why traders don’t appreciate the value of these patterns

Having your price bouncing off that support/resistance level, is a great way of confirming the breakout. That works well for the patient trader who waits for this pullback. However, what happens more often is this …

Too often, these pullbacks and throwbacks become the bane of a trader’s life.

There is no reason for this to happen – as with most things in life, if we understand what can happen, and why it happens – we’re automatically ahead of the game.

Normally a throwback will occur when there is a high-volume breakout. Following that break, it is usual for the momentum to wane, resulting in the retracement that we see in these patterns.

Only then does the price resume the direction started by the breakout.

A neat bounce off this line will give us a clear entry level. However, as we’ll discuss in a moment – the bounce isn’t always as tidy as those in the diagrams above.

http://www.tradersbulletin.co.uk/how-to-double-your-money-when-the-price-goes-the-wrong-way

[welgro]

Trend Trades Definitions



Definition of Trend

We defined UP trend as a series of rising troughs and rising peaks in higher time frames. To identify, UP trend, we first identify troughs, but to say it is UP trend, we need to see 'rising troughs and rising peaks'.

We defined DOWN trend as a series of falling peaks and falling troughs in higher time frames. To identify downtrend, we first look at peaks but to say it is downtrend, we need to see 'falling peaks & falling troughs'.


Definition of FLIP.

In uptrend resistance can change role as support & vice versa. This is what we call FLIP. After breaks, price will make a new high in uptrend (rising peaks) or a new low in down trend (falling troughs'. Once price start to retrace, we will wait for price action within +50 to -50 from FLIP Line. We want to see First Swing Point.

In higher time frames - we identify trend using trend definition. Next question, where the FLIP? In uptrend - the flip means at higher low & in DOWN trend the flip mean at lower high. And the Flip zone is within +50 & -50 from FLIP Line.

http://nakedtrading.blogspot.in/2011/04/trend-trades-definitions.html

[welgro]

USDINR ~ Positional Analysis 05.12.14
Symmetrical Triangle Bottom

The symmetrical triangle bottom is a bearish continuation pattern. The pattern is formed by two trend lines which are symmetrical to the horizontal and convergent. The first one is a bearish slant that will give support and the other is a bullish slant that will make resistance. To confirm a symmetrical triangle bottom, there must have oscillation between the two lines. Each line must be touched at least twice for validation.

To called a symmetrical triangle “bottom”, it is necessary that the movement that preceded the formation of the triangle being bearish.

Here is a graphical representation of a symmetrical triangle bottom:



The target price of this pattern is determined by its height from the base of the triangle that we carry over the breakpoints Another technique is to draw a parallel line to the resistance of the symmetrical triangle from the first contact point with the support to obtain a bearish target price.

http://www.forex-tribe.com/Symmetrical-Triangle-Bottom.php

[welgro]

Day Trading Rules:

1) Only enter trades when price is at a support (demand) or resistance (supply) level, no matter what time of day or night.
1) Two types of entries: Breakouts and first pullbacks (see below).
2) Each day, identify one demand and supply level in each market, using a larger intra-day time frame. Always know where the market is in the larger picture with regard to supply and demand.

3) Only trade opportunities that offer at least a 3:1 profit zone to the first target.
4) Pre-plan and pre-set: Entry, Stop, Target/s.
5) Don’t get fooled by: News, Lagging indicators, Subjective information. Remember, any and all influences on price are reflected in prices. Price is all we need.

http://instaforexpips.com/price-action-strategy-to-get-steady-profit-from-forex/

[welgro]

[welgro]

15 Trading Paradoxes
by Stephen Burns,

In over a dozen years of learning what works and what doesn’t in profitable trading I believe there are many paradoxes. Most of trading is counter intuitive and new traders usually enter the market looking for predictions, sure things, hot tips, and to know what to buy. In reality it is following price action as it unfolds, managing risk, trading a plan, and knowing when to sell a wining trade is what really makes the money. Most new traders never become profitable traders because they can never make that leap. Trading is a business and when the new trader becomes a business person and quits wanting to win the trading lottery, that is when the real progress begins.

par·a·dox-

A seemingly contradictory statement that may nonetheless be true.
One exhibiting inexplicable or contradictory aspects.
A statement contrary to received opinion.

Here are 15 paradoxes that I have learned on my own path to consistent profitable trading.

♥ The less I trade the more money I make.
♥ All my biggest profits were made on option contracts I bought not ones I sold.
♥ My number one job as a trader is to manage risks not make money.
♥ The best traders in history were the best risk managers not the best at entries and exits.
♥ The ability to admit you are wrong about a trade and get out is more important than being confident in a wining trade and staying in no matter what.
♥ Winning traders think like a casino losing traders think like gamblers.
♥ Opinions, projections, and predictions are worthless, trade the price action.
♥ At times fundamentals are good helpers to a trader but they are always terrible masters.
♥ Only date trading vehicles but marry your risk management and positive mind set.
♥ The smaller and more focused my watch list the better I trade what is on my watch list.
♥ You can go broke taking profits if your profits are small and your losses are big.
♥ Be very cautious of a small loss becoming a big loss but be open-minded to a nice profit becoming a huge profit.
♥ Being flexible about your market outlook is more important to profitability than committed to your directional view.
♥ I made my trading profits by reacting to price action and following along with the trend not predicting price action and wanting to prove I was right.
♥ Your risk management and mindset will determine your trading success more than your entries and exits will.

[welgro]

Crudeoil 15 min chart "PIPE Bottom Reversal"

[welgro]

Tutorial on Channel Chart Pattern

What is Channel Chart Pattern?

Channel Chart pattern is a type of technical analysis in which the price movement is contained between the two parallel trendline and it is very easy to notice this pattern in real charts.
Channels basically works on support and resistance. It consist of following parts:

1.Upper Trendline: It serves as a resistance in the pattern. It is a straight line and atleast have 2 points, the more the better. When the price touches the upper trendline, it can be used as a selling signal.

2.Lower Trendline: It is also a straight line and have atleast 2 points, the more the better. It serves as a support in the pattern. When the price touches the lower trendline, it can be used as a buying signal.



For a channel pattern to be reliable and valid it is extremely important that a. Both the upper and the bottom trendline should be parallel to each other.
b. There should be a proper visible gap between the two lines.
c. there should be atleast 2 peaks in both the lines, more the best.

There are three types of channel pattern. They are:
1. Ascending Channel
2. Descending Channel
3. Rectangle Channel