What is the Three Inside Down Candlestick pattern?

How to recognize the Three Inside Down Candlestick Pattern? Discover this bearish candlestick pattern

Did you know that the Three Inside Down Candlestick Pattern tells you that the market is bearish? Or that its opposite, the Three Inside Up is a bullish candlestick pattern? Learn all about them, in our latest video

Three Inside Down Candlestick Pattern – criterias that need to be met

Hello, traders! So we continue with our coverage of Candlestick patterns that can be used as strategies in your daily trading. Today, we are going to go over a pattern that is called, “Three Inside Up or Down” pattern, which is, as the name itself says, it’s a three-candle reversed pattern, that appears in the charts. It’s not an easy pattern to find in the charts since it’s a three-candle pattern, and you need a lot of things to coincide, in order to identify this pattern and use it in your trading. More or less, it is a reversal pattern and as the name itself says, it’s up or down, depending on the trend. So, the Three Inside Up is actually a bullish reversal pattern, while the Three Inside Down, of course, is a bearish reversal pattern and let’s start with the Three Inside Down.

So, the first step, in this pattern, is that the market has to be in an uptrend like we have here on the Dollar/Canadian one-hour chart. So we have created a clear uptrend almost vertically, we went higher, and after we have identified the uptrend that we are looking for, the second condition is that we need a big, healthy, long candle. In this particular case, we are talking about a green candle in the chart, which is this candle here. The second candle next to the green candle should be a bearish candle and the body of the candle… So, pay attention, we are not talking to the whole candle, including the shadow, but we only care about the body. The body of the candle should be within the bullish candle. So, the body of the bullish candle should follow this bearish candle next to each other. And the third candle is another bearish candle that closes below the close of this first low of this first candle. So, in other words, we have a reversal. So, after this green candle is formed within the breakout is happening, but then, actually, what happens is that we have a one, two punch and first the red candle appears and then the second bigger, the final blow appears and we have, usually, a reversal, like we have here, not a straight one since we corrected higher again, we did not create a new high, which is extremely important, and then there was a huge move to the downside created here.

So, in the same chart, you can see clearly, more examples. So, again a big long healthy green candle. Another red candle that’s within the body of the first candle and then another candle that closes below, and this time it initiates an immediate retracement. In the third part of the chart, the same, again, move higher, we have a small body within the green bullish body, and then, we have a huge move to the downside, big huge red candle. And then, the price pushes lower. So, again, the key is that we are talking about the body of the candle. The perfect Three Inside Down pattern will be in the case where the second candle actually gaps down, and it shows up somewhere here, somewhere in the middle of the first candle, but this is almost impossible to find since, as I said earlier, very rarely you see a bigger gap in Forex. And especially in this condition because you will need the gap, and you will need the previous candle to be a long green candle, and then we are in an uptrend. So, there are too many conditions to meet.

So, on the other side, this is a Dollar/Yen chart. This is just the upside down version of the same pattern, so it’s a bullish reversal pattern, Three Inside Up. And, again, the market should be in a downtrend. The first candle, like we have here, is a long red candle. The second candle, the body is within the first one, and then we have the third one, actually, or the second bullish candle is a second punch, and it closes above this close of the second candle, and above the open of the first candle, and then we have a full reversal and this is a very, very good sign that market is going to reverse. In terms of directly trading this pattern. It is possible, however, you will need to enter as soon as the third candle is formed, and then the question is whether that fits your trading plan since you will have to put your Stop-Loss below the previous low. And, for example, in this case, since it’s a one-hour chart, you will be risking around 30-35 pips and then you look for where is the best place to exit your positive trade. However, how I use this pattern is, whenever I identify it, I see it as a very reliable sign that market is reversing and that I should start, in this case, in this Dollar/Yen case, I should start looking to buy dips.

The post What is the Three Inside Down Candlestick pattern? appeared first on The Diary of a Trader.

Where can you find the Three Black Crows Candlestick

What does a black crow mean? Learn everything about the Three Black Crows Candlestick

Have you heard about the Three Black Crows Candlestick? Watch our latest video to learn about a popular trend reversal strategy, used by many traders

The Three Black Crows Candlestick – what to look for in a chart

Hello, Traders! Today we’re going to go over another Candlestick strategy, in this case, “Three Black Crows” strategy’s a popular trend reversal strategy, used by many traders to identify when a market is turning down. This is a pattern that can only be used when we identify an uptrend, which means that ultimately we are looking for an uptrend to turn into a downtrend. So, the first step to identify this pattern on a chart is you’re looking for an uptrend. Here, we have a clear uptrend, we create a new high and then, as a second step we must find three long and bearish red candles in a row, so three consecutive along bearish candles. And, in this case, it’s four, so the more the better, and these four candles actually only just add more strength to the reversal pattern. The third rule is not so important as the second one. The second one is a must. Of course, we must have at least three long red candles, but the third rule, it says that the candles have small lower weaks. So, these weaks should not be long, for example, as this one. Look at this long weak, which means that the price should close near the lows that created. What happens here is, we have an uptrend, we have four long candles, we close at the low, this is an indicator to the traders that the market is reversing and from bull market you’re entering bear market and then you’re into a short sell the rallies of form and then you look for any rally to sell and look for the new lows. This is a Dollar/Yen daily chart. It is important to say that this strategy is mostly used for long term traders since we’re looking for a confirmation that the upward move has ended and then, we are entering the down move. Of course, sometimes it’s only a short-term move. Sometimes it’s much longer, in this particular case we are talking about a huge downward move that more or less, is 1200 pips from this high to this low.

A second example I want to show you is the Euro/Dollar daily chart. Again, clear uptrend. This is a very good example, because here you also have, look this uptrend, three red candles. However, look at the candles, these are not really bearish candle, this is more indecision time for traders, hence, this is not the pattern that we are looking for. Here, it can also be, you can see that this set pattern, that we’re looking for, is an uptrend followed by three red candles. However, we want to find at least, out of these three candles, at least two must have long bodies. Here, this is not really a long bearish candle. And then, finally, we have one, two, three and out of these three, we have two extremely long red candles, look at the first and the second one. Only the first and the second are 300 Pips move, then also the price fell down 300 Pips in two consecutive days, which meant that we are now looking for the bears to have control and we are looking to sell any rally and is actually what happened. Look, we created a low with the third candle, we had a slight correction, but the correction was sold two times immediately. You see two long upper weaks here, in these two candles, and then we create a new low. So, from this high to this low, we are talking about 600 pips move. Again, this pattern works best on the higher time frames, at least daily. So, we’re talking about daily, weekly, sometimes even monthly.

And the third chart I want to show you is a price action on a weekly chart. An uptrend, here we have three long candles, bearish candles, from the top. We try to recover, but simply these three bearish candles are too much to handle for bulls and this gets sold. So, from this slight left recovery at 1.26, we push down to 1.2250, so we push 350 pips lower. So, we are integrating this into our daily trading plan, simply by saying, okay, we have reversed, we’re not buying this anymore as we did in the uptrend, but actually we are selling the rallies and here if you saw this rally because the price corrected from 1.2350 to 1.26, you could have earned some very good profits.

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How to recognize which is the best Moon Phase for trading

How to use the Moon Phase indicator. Find out the secrets behind the Moon Phases, for trading better

Do you know which are the Moon Phases? Watch our latest video, where we explain which is the best Moon Phase for trading

Moon Phase for trading – a tried and true way to trade

Hello, this is Diary of a Trader, and I want to go over a new kind, well, it’s not new, but it’s probably new for a lot of you. A form of analysis that is probably not as common as others. This is a part of what’s known as financial astrology. And, don’t let the name throw you off. Financial astrology is actually, it’s mathematical psychology based on the science of astronomy. And so, how we analyze markets based on the behavior that people exhibit, we also base a lot of our trades on market sentiment. So, it’s not really any different than trading based off of where the mood of a market is. And Moon Phases is what we’re going to go over today. And, before you laugh, Moon Phases are a very real tried and true way to trade. They are very effective and they are… You should not use them on their own, though, you should use them to complement other forms of analysis.

So, for example, let’s take a look at the Euro/Dollar. And, let’s just clear everything off our charts, and let’s go take a look at this. Let’s scroll out, and here’s the Euro/Dollar, and here are our Moon Phases. So, New Moons are at the top, New Moons mean that there is, no moon out, it’s dark out. If we were to select Format, and we select Full moon off and New Moon off, we’re just left with these bars. However, we want to keep these on, so the Full Moon is down below and the New Moon is up top. So, Full Moons mean that it’s bright outside, you can see a big bright moon, New Moons mean that the sky is dark, there’s no moon. And depending on the instrument, you’re going to notice some type of pattern. And for the Euro/Dollar what we see is that during a New Moon phase, you can usually find that you’re at a market top of some sort. And so, during a New Moon, you have a high probability of being able to short that market if you’re in a bear trap. If we’re in a bull trend, then what that tells us is that on Full Moon, we have a high probability of the trades moving up for those two weeks, okay?

So let’s see how this plays out. Let’s look at each one of these, individually. So let’s get rid of the New Moons and let’s just look at the Full Moons. Just the Full Moon phases. So, here’s a Full Moon. If we would have bought at the beginning of the Full Moon that would have been a winning trade. And again, on the Euro/Dollar pair, it seems that Full Moons are near or at a type of a market bottom, or at least you can find a market bottom somewhere within that Moon Phase, and so, the idea is to take a long position during a Full Moon. So, here we have a Full Moon that would have been profitable. Let’s just kind of look at how profitable these would have been. So if we would have taken a long right at the open, okay? And closed it at the close. That would have been 160 pips on that trade. And then, let’s see if we traded at the open of a Full Moon and sold at the close. That would have been 315 Pips. We’ll do this Full Moon, and if we sold at the close, 354 pips. Now, we’re getting into a thing where we’re not going to see an increase all the time. We would have been down 46.6 pips. And then, look at here, at the close, up 282 pips. And over here, if we were to buy at the open, and sell at the close, we would have been up a total 19.6 pips. Now, you can see that in a strong uptrend with the Euro/Dollar, Full Moons yield really great results for finding a bottom and then selling at the end of that phase. We can see this repeats itself over, and over, and over again and if it seems kind of silly and obnoxious that you can do this, that’s okay, that is perfectly normal. And then because we can see the inverse of this behavior too. Oftentimes, when we know that there’s a change of trend coming, it is in response to the inverse Moon and we see a dramatic trade-off of that area, usually right on it. And, so let’s take off the Full Moons and let’s go to the New Moons.

Now, we can tell that during a very strong bull move that we really do not want to try and short during a New Moon. We could consider taking profit during a New Moon, during a strong uptrend, or we would consider just sitting and staying flat, not adding until we get back in. But notice what happens when we take a look here at this activity. A good sign that we were going to be entering into a new trend change, was when we finally had a New Moon that had a significant drive down followed by a kind of a muted move up, and then we have another significant drive down. So if we look at these swings, these are more pronounced so if we would have bought at the open, or sorry, if we would have shorted at the open, and then covered at the close, that would have been 187 pip move. If we would have done that most recently here, and then sold at the close, that would have been a 303 pip move. So you can see that when you’re entering into a bear trend when you see two dramatic drops off of the New Moon phases, that’s a pretty good idea that you are entering in a new bear trend and that we probably do not want to entertain going long, yet. Now, the question is, well what happens when it doesn’t move that way? Well, let’s look at the different market. Let’s go ahead and look at the British Pound and the US Dollar. Because it’s important to notice that not every instrument is going to show you that the… Not every chart is going to have the same response to these levels, okay? You know, the Pound/Dollar seems to respond to the Full Moon and the New Moon just like the Euro does. But, you have to look at the past price activity of each instrument, to determine for yourself whether or not this is true. The Footsie 100, the British stock exchange, it responds to the inverse. It likes New Moons for market lows where it can go long, so it operates on the inverse, but the Bitcoin-Dollar pair, sorry, not the Bitcoin-Dollar pair, the Pound/Dollar pair trades like this.

Let’s actually take a look at the Dollar Index and see how that operates. They’re about the same. And let’s look at Bitcoin. How does Bitcoin trade these areas? It seems to also like the Full Moon, to the New Moon, Full Moons being bullish and the New Moons being bearish. but notice a lot of those are tests for the dollar. Let’s take a look at the Euro/Pound Forex pair and let’s see if that’s any different. Not really, no. So, we could say that in Forex, at least in Forex and cryptocurrencies, it seems to be a fairly consistent process that you have a bias for a market being bearish for a New Moon phase and bullish for a Full Moon phase. But again, we want to use other forms of analysis. So, let’s go back to the euro. And, The Moon Phases itself is not enough to dictate a trade, so we need to do other things. So, one thing that we can use is oscillators, or other forms of an oscillator, like other types of oscillators, like the RSI, or I like the Composite Index. If we look at where these levels go, let’s see, we have a, look like a market bottom starting at a Full Moon, where is our Composite Index? Is it below these two averages? Sure. This is a good buying opportunity. Let’s kind of keep fast forwarding and see if others show up. Actually, there was one back here too. Other good shorting opportunities, if we get into these accelerated conditions near a market high, a short-term market high. But we’re looking more for bullish buy entries based on our charts. You can see, as we’re moving along here, that we do see a nice… We can see some nice correlative moves, based on where a New Moon and a Full Moon is going to start. And then, if our conditions are met, where we can go in the direction of that Moon Phases, then we have a higher probability of catching some really nice profit in the process. And most recently, this is probably a good example. Here, we were in an accelerated zone, an elevated zone here, that was giving out a sell signal, we had a double top on our Composite Index. That was really telling us that we had a high chance of having down prices because we can include the New Moon, and the behavior of the New Moon is to have lower prices during that Moon Phases. Hope you found this video helpful and please watch our other videos.

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What is Ichimoku? Learn advanced Ichimoku trading strategies

How to use the advanced Ichimoku Trading Strategies – Different market trading mechanics under one roof

This is a very simple and profitable trading system that everybody should learn! Watch our latest video to find out the advanced Ichimoku trading strategies and how can they help you get better results.

Advanced Ichimoku trading strategies – Ichimoku secrets

Hello and welcome to Diary of a Trader. Today’s video, we’re going to go over the Ichimoku System. Now, if you have TradingView, you can go to Indicators and then just type in I-C-H-I for Ichi, and then, Ichimoku Cloud, and that’s what we want. And this is what the Ichimoku System looks like. This is listed as an indicator in many charting platforms, but it’s actually a trading system itself, and there’s really four main components that we want to look at, and it looks confusing, especially if you’ve never used it or seen it before, but it is actually a very simple and a very, very profitable trading system that everybody should learn. In fact, for me, this is how I learned to trade profitably, was by learning how to use the Ichimoku System because it applies so many different market trading mechanics under one roof.

Now, the first thing we’re going to look at in the Ichimoku System, the first type of component is the Cloud. Now, the cloud, or they call it, the Kumo, the cloud is two averages that we took off the screen, that are thrust forward in time. And so, the first line here, this is one of the second components is we have the conversion line. Now, the conversion line, it looks like a moving average and it is a moving average, but it’s not taking the average of the close of a Candlestick. It’s taking the median, the middle, the average of the candlestick. It’s an average of an average. So, this is for a nine period. And then, the second component here is the baseline, and this would be like our slower moving average. So the baseline is the slow average and the conversion line is the fast average. And then, we have the lagging span. But we’re going to get to the lagging span. When I first showed you the cloud, all right, you see that it shows green and red and the question’s come up, well, what determines the cloud? Well, if I turn off the candlesticks, then we see what the cloud is. It is the conversion line and the baseline moved forward in time, okay? So, if we notice this little bit right here, is the inside of this activity. So, when the conversion line is above the baseline, they shade the color green to indicate that this is a bullish cloud and then it’s moved forward 26 periods, okay? Conversely, once we start to trade down, like we do here, and looking at the conversion line below the baseline here, that means we’re in a bearish environment up ahead. Now, the last component is the one that is probably the most confusing. I like to turn this line black because it’s hard to see, I think. And I’ll turn the lines a little thicker, too. The lagging span is probably the most misunderstood part of this system, but as I think, arguably, the most important. The lagging span is just the current price action moved back. Now, if we change from candlesticks to a line, then you’ll see what I mean. You can see that the line here, this is just the current price, that lagging span is just the current price action, but it’s moving behind us, okay? And now that you understand what these lines do and what all of these activities are that are happening with the system, now we need to apply it to learn how to trade it.

Now, there are very simple rules. The first rule is that if price is inside the cloud, we do not take a trade. Remember how I said that there’s a lot of types of trading mechanics that the Ichimoku system does? If you’re familiar with Bollinger Bands or Bollinger Band Squeezes, this is indicative of a squeeze. If price is inside the cloud, that means that we are in a squeeze. And so, if price is trading inside the cloud, we don’t take a trade. The second principle, and let’s say we want to go long. Let’s say we want to take a long trade, we want to buy. Then, the rules for that are that price needs to be above the cloud, the conversion line, the blue line needs to be greater than the baseline, which is the red line, and the lagging span needs to be above the cloud, okay? So, as an example, if I do a market replay and I’ll just set it right here, and price is moving and we are approaching the inside the cloud. We already know what price is going to do, but this kind of gives us a good example of what happens during a live trade. Now, what are our conditions for going long? Price needs to be above the cloud, it is. The conversion line is above the baseline, that’s also a condition. But, is the lagging span above the cloud? Yes. And we also, I forgot to mention that we want the cloud in front to be green as well. So, we want a green cloud, price above the cloud, conversion line above the baseline and the lagging span, the black line, above the cloud. And let’s see if that’s what happens. Now, right then, is where all of our conditions were met. The cloud ahead turned green, conversion line is above the baseline, price is above the cloud and the lagging span is above the cloud. And then, that’s when we would have taken a long entry. Then, the question is, well, where do you exit? And there’s a lot of different theories and philosophies and strategies on when should exit a trade, but probably one of the most effective ways to know when to enter a trade or exit a trade, when you’re long, is when you see the lagging span start to trade inside price. So, if you start to see the lagging span, if the black line starts to get inside candlesticks, then we know we should probably exit a trade. We know that we’re going to have some movement that’s not going to keep going anymore. Alternatively, if you start to see price cross below and hold below the baseline on a retest, that’s when you can probably exit along. That’s another option.

But the rules for taking a short, are just the inverse of that. And so, if we want to take a short trade, we have the same rules we need to apply. So, to take a short, we need price to be below the cloud, the cloud in front has to be red and the conversion line needs to be below the baseline. So, if I hit play here, we’re in the cloud, we’re not taking a short, although we do get some warning signs. We get some warning signs that something’s about to change, once the cloud chart starts to change color, and we see that the conversion line is below the baseline. So the cloud ahead is red, but no other conditions to short have been met yet. And so, this is why we don’t take a trade in the cloud because we don’t know what’s happening. It hasn’t been determined. Now, on that big Candlestick, that was where we take a short. The lagging span is below the cloud, the cloud in front of us is red, and the conversion line is below the baseline, so that is a good short opportunity. The question’s going to ask, “Well if I missed this trade, where can I get back in?” Well, generally when you break out of a cloud, the first kind of retest higher of the baseline is a good area to re-enter a short. You’ll often find resistance at the bottom of a cloud and at the baseline. You can see how the pullbacks work very well. And then, really as long as the lagging span is still below price and not trading inside of it, we’re still safe to be entering in pullbacks against the conversion line, or the baseline. It’s a very, very profitable system. And what is very important about the system, probably more than anything else, is that it tells us when not to take a trade and it keeps us from entering a trade too early, so we don’t experience a false breakout. Because if you look at this system and you look at how many times price breaks above the cloud, if you only went, there’s a lot of people who will tell you that, “Well, you can just take a trade once price breaks above or below the cloud.” That rarely works very well. You would get stuck in a lot of churning trades, you’d be entering and exiting positions too fast. The Ichimoku System keeps us from taking bad trades, and it keeps us in good trades. Thank you for watching this video, and we look forward to you watching the next. Thank you!

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How to trade with Fibonacci Levels when surprise news hits the market

How to trade with Fibonacci levels. Use Fibonacci to define and limit your risk, when a surprise hits the news

Take advantage of surprise opportunities when they occur! Watch our latest video to find out how to trade with Fibonacci Levels, in order to reduce your risk.

How to trade with Fibonacci Levels in a market full of surprises

Hi! This video is going to discuss how to trade surprise news events with Fibonacci retracements. So, sometimes you’re in the market and a surprise hits the news wise and there’s a reaction in the currency pair.

So, how can you use the Fib retracement tool to define, limit your risk? How do you find a way to get into the trade, in order to take advantage of that move?

So, here’s an example that I’ve got today on the 26th of June. So, the surprise news that came out was one of the Monetary Policy Committee members, Haskel, was speaking. Now, he is the new incoming member of the Monetary Policy Committee and he is replacing McCafferty.

So, you essentially had two MPC members from the Bank of England speaking back to back. One, who’s leaving, and one new member. And the significance to this news was that McCafferty is hawkish and Haskel is coming in. So, the question is, with those three hawkish members of the Bank of England with the last Monetary Policy Committee minutes, McCafferty was one of them. So how is Haskel going to alter the mix of the MPC committee? Well, what happened is that he came and he spoke, and essentially he was quite dovish. He’s quite dovish and he spoke about risks if the Bank of England is raised to quickly, so he certainly wasn’t pushing for an interest rate rise, he was more dovish. So, obviously dovish on interest rates is going to result in the pound being sold off and you see that’s what we saw here. The pound was sold off, it was 10 am. Pound dropped. So you would not want to just jump in, necessarily, when that’s happening. You want to get in after a retracement. And this is where the Fibonacci retracement tool comes in so helpful. So, you just click your Fibonacci retracement tool, you go from left to right on the chart. So click on left, these would be the obvious highs here to click on, so click left. I just moved it a bit to the left to give us a bit of space. You move down to the right, which is the bottom of the move, and then you see how price retrace. And then, you want to be getting in common entries, somewhere between the 38.2 and the 61.8 level. So, you would enter there, you put your stop above the high, or some people put their stop above this, sort of, 71-72 level and then you play down to recent lows, and beyond. Some people, you know, they might play an extension of the whole move. So, they might do the extension of this move down to around here, around 1.3150.

So, another example, I’ll quickly show you, because it’s worth having a look at. So, if we look at the US oil chart, now, again this is a favorable drawn on the chart. What’s happening here is, the US have come out and they have said, today, on the 26th of June, they’re urging their allies to kind of limit the exports of oils from Iran. Obviously, if Iran is pumping oil on the oil market, then there’s less supply, but the same amount of demand, so the price of oil is going to increase and that’s what happened. I just put this example to show you. You know, you don’t really wanna be getting in here, these highs, because over time this move can be faded. Where are you going to put your stop? All the way down here, and then, if you’re only going for one leg of the move, it is going to be hard for you. So, enter here 38.2, 50%, 61.8 retracements, stop underneath the lows and you can play another extension of that leg, and then you put in your risk and reward into a good area.

So, there we go, folks! Look out for surprise news, draw your Fib from left to right, look at the 38.2, 50, 61.8 level, pop your stops underneath the lows, and I hope that helps you with your trading and helps take advantage of surprise opportunities when they occur.

The post How to trade with Fibonacci Levels when surprise news hits the market appeared first on The Diary of a Trader.

A beginner’s guide – Learn how to draw support and resistance lines

How to draw support and resistance lines, using the support and resistance trading strategy

Are you curious to know how to find support and resistance levels? Watch our latest video and learn how to draw support and resistance lines, for a better trading

How to draw support and resistance lines – the very basics

Understanding support and resistance is very important in trading. In fact, arguably, support and resistance are the most widely followed technical analysis that there is. They are levels that are eyed, by, virtually, every single serious trader in the world, who would be aware of key support and resistance levels. So, let’s just go through the very basics.

A support level would be a place where a price has reached and has then been rejected from. So you can see here on the charts, here is a support level and it’s at the 1.3750 level and at the 1.3700 level. Often you’ll find that key support and resistance levels are at big round numbers, 00 or 50. That’s a support level here, on the Pound/US dollar daily chart. If you also look up to the top you will see here the 1.4350 level. You have another key resistance level. So you can see that when price breaks through significant levels, it’s really important, the market pays a lot of attention to it because, you see, it’s no coincidence here, that there was a big solid rejection and breakthrough of this 1.3700 level. The 1.3700 handle was broken and it was through the 200 moving average as well on the daily chart. Big significant move on that day.

One of the areas, and it’s the area that I want to focus on, is an area that beginner traders often get confused with. And the way they get confused is, they still don’t understand how to draw support and resistance level, so let me give you an example of how new traders get confused. They might see the level and think, Okay, say take this over here, say, is the level here, is the level there or is the level here? But there’s three different places and you might hear some people saying, “Oh, you should always draw a support and resistance level on just the bodies of the candle, that would be the way to correctly draw it.” Or some people say, “No, you need to draw the resistance or support level, at the actual swing point, that’s the correct way to measure the level.” Now there is obviously merit in both of those views, but more often than not, they just create confusion, particularly for the beginner and the new trader.

So what you need to do, is you need to change the way you think about support and resistance levels. So, instead of thinking them about a very specific level, like you might have drawn your level here and said, “Right, here is the resistance level. It’s this high here, is 1.427, whatever it is, that’s the resistance level.” And the problem with viewing it so micro-focused on just 1 digit or 1 point of a movement, is that you’re missing the big picture and actually if you saw that resistance level not so much as a level, but as a zone, you would have done a lot better.

So, if you would have drawn, kind of a zone like this, you could have seen, “Okay, this is a resistance zone.” So the way that I think of it and it helps me, imagine a very fat man and his belly is overhanging his trousers. Now, if you have got your hand, not that you want to, but if you have got your hand and if you pushed your hand into that fat man’s belly, at first it would be quite easy to push in, because you’re pushing through the external and exterior levels of fat, but as you get deeper into the man’s belly, eventually, you kind of get a push up against something that’s firm and solid. That’s exactly the same with support and resistance. Think of them as zones, like a fat man’s belly zones, so that when price approaches a level, you’re on the lookout, but you’re not necessarily overly focused on one particular point. So that’s a really good way of looking at it. It will help you and, particularly for beginner trader, don’t think so much of support and resistance levels, but think of support and resistance zones.

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Increase your profit by learning how to trade Spinning Top

What does the Spinning Top Candlestick tells you? Learn how to trade Spinning Top

Spinning top candlestick shows a sign of indecision about the future direction of your trading. Watch our latest video to find out how to trade Spinning Top.

How to trade Spinning Top – why is it different than Doji?

Hello, everyone. Today, we are going to go over another Candlestick pattern that you can integrate into your daily trading. It is an easy one to spot on the chart and one that you will find almost every day in your trading when you go over some charts. So, this Candlestick pattern that we are going to discuss today is called, Spinning Top pattern and it is very, very similar to Doji Candlestick. However, it’s a bit different. What is this Candlestick about? It’s a show or a sign of indecision about the future direction of the object, of the Forex pair, or, in general, of the assets, whatever you trade stocks or cryptos or commodities, whatever. The Spinning Top is the same everywhere. It’s about indecision. As I said, it’s similar to Doji. However, it differs from Doji, because, unlike Doji, who has no body, the Spinning Top has a body. So, you have a long upper weak, you have a long lower weak and then you have a small body in the middle of it, which means that actually there is a difference between opening and closing price. Whereas with the Doji, you have more or less no difference between the opening and closing price. You can see the Doji here. So, there are more or less like neighbors in this case, and it tells you that there it’s indecision time for the traders and if you look, if you analyze this chart, here you have another Spinning Top, you can see more or less, we are a very similar length in both weaks. And then you have Doji, and then you have a green Candle and then you have a red Candle and then down and then a new high. So, it’s a very choppy trend action. And when you manage to spot these Candles, both Spinning Top and Doji, usually, if you find them in the middle of the chart, then my advice is that you take no further action when it comes to the trading, while I am going to try and to briefly explain to you what is my advice to you, if you find them in either high of an uptrend or a bottom of the downtrend.

So, here we have a small uptrend and then, as I said, we have a Spinning Top, we have a small body, we have two long weaks, which means there’s indecision. When you find Spinning Top or Doji or combined at the top of an uptrend, usually it means that they’re going to reverse, since the Bulls have no more full control of the trend, but it is a choppy price action. And mostly, we are going to see a trend reversal. As I said, the Bulls are losing their control and the trend may reverse. The same is on the downtrend. So, again, it’s a nice chart since you are going to see this a lot, especially when you see a strong uptrend that is coming to an end and you see fatigue. In this case both. This is what you see, you see many, many weaks. Look, you have Shooting Stars, you have Dojis, you have Spinning Tops. With a combination of not so bullish Candlestick patterns, and this, means fatigue. As I said, this group of candles and they are going to reverse down, they’re going to push down either a smooth correction, before continuing higher or we’re going to create a bigger move to downside, and, as you can see, this exactly happens on a one-hour chart, we make 100 pips correction. Dollar/CAD, the same story, a Shooting Star, Spinning Top, a Doji, indecision time. We have a strong uptrend but we are tired. We actually start to be tired here, but it somehow managed to grind higher, grind higher, grind higher and then, finally we get tired and we start creating new lows that you can see the downside in the price starts correcting. So, unlike Shooting Star or Hammer, where you can directly trade it, for example, with Shooting Star, you just put your Stop-Loss above it and then you can hope for a move below. In the Spinning Top and Doji you actually have a sign that the trend may reverse, if you’re at the bottom or at the top as I said, if you’re in the middle then, like for example here, it’s nowhere, it’s not a new high, it’s not a new low, then my advice to you would be to avoid the price chart and wait for extremes, either higher or a lower one.

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What does Simple Moving Average trading strategy mean?

Recognize whether the price is bullish or bearish by using the Simple Moving Average trading strategy

Do you want to know which is the best Moving Average crossover, for swing trading? Watch our latest video to find out how to use the Simple Moving Average trading strategy

Simple Moving Average trading strategy – a simple indicator for your trading

Hello again. This is Diary of a Trader, and today’s session is going to be over another financial astrology component, and this is dealing with just singular angles of planets. Now, in videos in the past, we’ve discussed aspects, we’ve discussed the longitudinal lines and how William Daubert Gahn had a formula for transposing those longitudinal coordinates onto a price chart. But, something that he never really talked about and that’s something that really only a contemporary analyst, and writer, and expert in financial astrology, Larry Pesavento, he wrote in his book about using certain angles of Venus and I wanted to show you what that is and how fascinating those kinds of levels are.

So, first, I want to pull up, we’ll use bitcoin for this, so we’ll pull up bitcoins chart in Optuma, and, as you can see, it’s just a regular Candlestick chart. I’ll change the colors here, so those of you who are not familiar with looking at black and white, this is really the traditional way that people used to look at Candlestick charts, was black and white, but we’ll do the normal red and green, if you’re familiar with TradingView or other software. This is how they would color them in. So, what I want to do, is I want to identify the planet and then the angle. And Larry Pesavento specified a number of degrees, either 72 degrees of Venus, or 36, or 18. And, what I did is, I went through both of them and I found that the Venus, this is actually quite fascinating, of all the things that I’ve done in my various lectures and various live trading sessions and education sessions, I don’t get really weirded out by things that often anymore. However, this really threw me out of my chair, almost. I could not believe how accurate these levels were. So, I’m going to put in that these degrees repeat, but I’m going to do it for 36 degrees. Alright, and so, there’s a swing low right there, there’s a swing high back here, but look what happens when I repeat it. So, what repeating means is that every 36 degrees we’re going to go another 36 degrees, so if we do 36 times two, is 72, plus another 36 is 108, and so forth. And this is what populates on the screen. It is absolutely stunning and fascinating how accurate on Bitcoins chart, these degrees of Venus, every 36 degrees of Venus, how powerful and accurate to the swing highs and swing lows, these are. There is a very phenomenal piece of technical analysis and something that I have not noticed before.

But, then I thought, ” Okay, well, there have to be other angles.” And the problem is, is that there’s many planets, many types of astrological phenomena and there’s 360 different angles within a circle. So, I started looking at the natal charts of some instruments and I was looking at the pound, the British pound. So, if I use the British pound, for example, right here and I already did this one. This is for the moon. This is the moon at 45 degrees. So, whenever the moon is at 45 degrees, this is the behavior that we get. Now, we could try with Venus and do the 36 degrees, and you can see that it is not as powerful of a signal. In fact, if we go back to the moon, though, we might be able to see a better picture of it. For instance, right here is where we would be looking. 45 degrees, the moon at 45 degrees on a daily chart, that’s what this is. That threw me off a little bit. I was looking at a chart that was at a four-hour chart. But this is the daily chart of the Pound/Dollar and look how often the 45-degree angles of the moon show up at swing highs and swing lows. This is a very fascinating and very interesting observation I found.

And as I continue to work through a lot of these various FOREX pairs and cryptocurrencies and CFTs, you know, I’m going to be keeping a record of these and I’ll be sharing them with you. But this is just another form of technical analysis, called financial astrology. It is a very, very useful tool in forecasting and identifying turns in a market. Again, it alone, is not enough to confirm a change in a trend or in a direction, but when you’re utilizing other forms of nonrelated technical analysis, maybe an oscillator, or price action itself, then you can get a very high probability of a positive trade, depending on where these cycles happen. Thank you for watching this video and I look forward to speaking with you in our future videos.

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A lesson on Financial Astrology: Astrology Planet Meanings

Larry Pesavento wrote in his book about using certain angles of Venus, in trading. Watch our series video on Financial Astrology and learn about astrology planet meanings.

Financial Astrology – Astrology Planet Meanings

Hello again. This is diary of a trader and today’s session is going to be over a another financial astrology component. And this is dealing with just singular angles of planets now in videos in the past, we’ve discussed aspects we’ve discussed the longitudinal lines and how William Daubert Gahn had a formula for for transposing those longitudinal coordinates onto a price chart, but something that he never really talked about and that’s something that really only a contemporary analyst and writer an expert in financial astrology Larry Vento he wrote in his book about using certain angles of Venus and I want to show you what that is and how how fascinating those kinds of levels are.

So first I want to pull up what we’ll use bitcoin for. So to pull up a bitcoins chart in OPTIMA and as you can see it’s just a regular Candlestick chart. I’ll change the colors here so those of you who are not familiar with looking at black and white. This is the this is the really the traditional way that people used to look at Candlestick charts was black and white, but will do the normal red and green if you’re familiar with Trading View or other software. This is how they would color them in. So what I want to do is I want to identify the planet and then the angle. And Larry Pesa Vento specified number of degrees either 72 degrees of Venus or 36 or 18. And what I did is I went through both of them and I found that Venus. This is this is actually quite fascinating of all the things that I’ve done in my various lectures and various live trading sessions and education sessions. I I I don’t get really weirder out by things that often anymore. However this this really threw me out of my chair almost I could not believe how accurate, these levels were, so I’m going to put in that these degrees repeat what I’m going to do it for 36 degrees and so there’s a swing low right more there. There’s a swing high back here, but look what happens when I repeat it. So what repeating means is that every 36 degrees we’re going to go another 36 degrees so if we do, you know 36 times to 72 plus another 36 is 108 and so forth and this is what populates on the screen. It is absolutely stunning and fascinating how accurate on bitcoins chart these degrees of Venus every 36 every 36 degrees of Venus. How powerful and accurate to the swing High Swing Low as these are. Is a very phenomenal piece of technical analysis and something that I have not noticed before, but then I thought, OK well, there has to be other angles and you know the problem is is that there’s many planets many types of astrological phenomena and there’s 360 different angles within a circle. So I started looking at the natal charts of some instruments and you know I was looking at the pound or the British pound. So if I use the British pound, for example right here and are already doing this one this is for the moon. This is the moon at 45 degrees. So whenever the moon is at 45 degrees this is the behavior that we get now we could try with Venus and do the 36 degrees and you can see that it is not as powerful of a signal. In fact, if we go back to the moon, though we might be able to see a better a better picture of it for instance right here is where we were we would be looking Forty five degrees the moon at 45 degrees on a daily chart.

That’s what this is. That threw me off a little bit. I was looking at a chart that was at a four hour chart. But this is the daily chart of the pound, dollar and look how often the 45 degree angle of the moon show up at spring highs and swing lows. This is a very fascinating and very interesting observation I found. And as I continue to work through a lot of these various forks pairs and crypto currencies and CFTC you know I’m going to be keeping a record of these and I’ll be sharing them with you. But this is just another form of technical analysis called financial astrology. It is a very useful tool in forecasting and identifying turns in a market. It again it alone is not enough to confirm a change in a trend or in a direction. But when you’re utilizing other forms of nonrelated technical analysis maybe an oscillator or price action itself then you can get a very high probability of a positive trade depending on where these cycles happen. Thank you for watching this video and I look forward to speaking with you in our future videos.

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What is Forex market sentiment and how can you use it

What is Forex market sentiment? Find out how the mood of the market can help you have profitable trading

Forex market sentiment teaches you to treat the market as a person. Watch our latest video to find out who came up with this idea, and why is it so helpful in trading!

What is Forex market sentiment? Trade safely and wisely

Trading market sentiment. You may have come across the term “market sentiment”. And you may be wondering, what is the market sentiment? Thankfully, it is an easy term to understand as it simply means, the mood of the market. Now, it is going to help you in your trading, if you start to think of the market as a person.

This concept of the market as a person is drawn from a book by Benjamin Franklin called, The Intelligent Investor. In that book, he describes the market as a person, “Mr. Market”. In a way, this is a fair reflection, since the market, as a whole, is simply a reflection of many thousands of individuals. Now, every day, Mr. Market will offer you a price to trade with. The problem is Mr. Market has emotional problems and that is reflected in his price. Some days he’s manically depressive, other days he’s euphoric. Day after day, he is there, offering you a price to trade with. Your responsibility is to try to take advantage of his huge mood swings. Sometimes, he will be overly euphoric, and other times overly pessimistic. Now, these times may offer you opportunities to trade. However, you also have the option to ignore Mr. Market, if he’s behaving irrationally. Now, the key thing to grasp is that you use the market as a servant and not as a master. So if Mr. Market turns up, one day, in a very foolish mood and you allow that to influence you, then you’re in trouble. Sometimes, Mr. Market will ignore significant data or fundamental analysis, but sooner or later, he can’t. And there’s a great quote of Benjamin Franklin, that’s well worth remembering, as a guide to the market, because what Benjamin Franklin said, he said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” It’s well worth pondering that phrase of Benjamin Franklin’s.

So, Market Sentiment is essentially the mood of Mr. Market on any given day. So, think about the market as a bit of a moody business partner. Every day you have to assess what kind of mood he’s in, and I’m sure we can all relate to people we know who’s mood we have to watch very carefully as it’s prone to wild swings. This is what Mr. Market is like, and understanding his mood is a key to understanding sentiment. Every session, the market will have a mood or a sentiment. And the sentiment can even change throughout the session. The sentiment could be risk-off in the Asian session but then risk-on, in the London session. Every day the market is digesting information from all around the world and that’s affecting the mood or sentiment of the market. So, your job as an investor is to know the market sentiment every time you approach the market, it is so important! If you don’t know the market sentiment, you can’t really expect to succeed in the financial markets. Let me repeat that. If you don’t know the market sentiment then you can’t really expect to succeed in the financial markets.

For example, if you’re looking to sell the Yen in a heavy risk-off environment, you are going to lose your trade. If you simply knew the sentiment for that day, you would have known to avoid that trade, since the Yen is bought in a risk-off environment. Mr. Market would be risk-averse that day, so look here, on the charts, Euro/Yen, which is a good pair for risk-on or risk-off sentiment. And if you had approached on 23rd of May, if you had approached that day, thinking, “Oh, I would really like to buy Euro/Yen”, and it was a risk-off sentiment, you would have been wasting your money.

So, once you’ve established the sentiment, you can then look to take advantage of it. Because perhaps the day sentiment is against the main fundamental driver for a currency pair. In this case, the sentiment may offer you a chance to join the main fundamental direction, with a better price. The take away a piece of advice is this: Sentiment is simply the mood of the market and I need to know the mood of the market every time I’m trading so that I don’t misjudge it. Trade safely, trade wisely, and trade knowing the mood of Mr. Market for every single session.

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Learn how to identify trends with a strategy called “Ride the Trend”

Define your trading plan! Find out how to identify trends by implementing simple strategies

One of the basic trend trading strategies is called “Ride the trend”. Watch our latest video, and learn, step by step, how to identify trends on charts.

How to identify trends – a step by step guide

Hello, everyone! Today we are going to review one of the most basic strategies that is out there called, “Ride the Trend strategy” and as the name itself says, we are going to look and try to identify certain trends on charts and based on trends, define our trading plan.

So the first step and the most important step, by a mile, in this strategy, is to identify a trend. Here, you can see that we’re looking at the Euro/Dollar chart, at the four-hour chart. So here, you can see that we have a bullish trend. We are advancing higher until eventually, we stop here and we create this almost double top at above 1.25. Then, the second part of this, let’s say chart, you have a consolidation in the form of a symmetrical triangle, where you have lower highs and you have higher lows, which means that the consolidation of the price is taking place, and the price is either going to push higher or it is going to break down. And, obviously, the third part of this chart, as you can see it’s what happened actually, is we aggressively broke down in this triangle and pushed lower. So, here, what is interesting for us, is we have consolidation and since we are in a position to identify the trend, we are looking to then identify the trend up or down based on the trend. Since we pushed lower, we are looking to enter into our short side since we’re looking to ride the trend, since obviously, we broke down the triangle.

So, let’s breakdown this trade. Let’s break down this trade on a lower time frame. So, here, we are now at the one-hour chart and what you can see here is, we pushed and closed below the triangle. We had a consolidation below the triangle, so it’s comfortably trading below the triangle. We have a retest, which is a perfect scenario, and this is when we are entering our trade, here at 1.22, more or less, 1.2245. If you entered here, the greatest thing about the retest is that you limit your Stop-Loss. So, here, you can only put like 15 or 20 pips Stop-Loss, which means that if price would have returned to the triangle, then you’re out because what you’re trying to do is, you are trying to get a continuation to the downside. So, here we enter our trade, and then, based on the strategy Ride the Trend, we actually do what the strategy says, we are riding the trend to the downside. Here, you can see we have this horizontal downward slope. You can see it here. So, it’s actually a horizontal resistance, diagonal resistance. Actually, I’m sorry, diagonal resistance, horizontal but diagonal resistance that is keeping the price below it. So, in this particular method, because, unlike some other strategies, riding the trend is actually only a plan, so it might contain different methods in order to implement it. So, in this particular method, we are trading this triangle, so we broke down the triangle, and the second part is actually we are also trading this diagonal resistance line. So, here we’re entering the trade at 1.2245 and as long as the price does not break above this horizontal line, we are into the trade. We are looking, the moment it pushes above this diagonal line, we’re out of the trade. So we trail out stops. So, you can see here, we have a push to the downside, then we recover, we have a push to the downside, we recover, we have a push to the downside, we recover, but we are still in the trend, right? Because we create lower highs and lower lows, lower highs, lower lows, all the way up to here because here we have a break of the diagonal line, and actually, if we trailed our stops, from example starting from here, we trail, trail, trail, push our stop lower, here we close the trade, and you are in 300 Pips, actually more than 300, 350 pips, take-profit based on risking 20 pips. Obviously, this is a great example, this happens once in a very, very long time, but it happens. You could have also traded against the 100 moving average. You can see here, the blue line, which, in this moment, coincides with this diagonal line, so you could have said, as long as the price is below, I’m going to stay in my trade, and once it breaks the line, I’m going to exit my trade. So, in this case, you will have also 350 pips take-profit. So we’re riding the trend as long as the trend goes here, we break the trend, why? Because we create higher lows and higher highs.

Again, another chart, which is a bit different, because now the bullish, but we’re using the same method. So, here we have a channel, we have an upward channel in the Dollar/Yen, which means that the price is creating higher lows and higher highs. So, as soon as you identify that you are in a channel, for example here, we enter into the trade. Here, you see, we enter the trade, let’s say 1.0690 we are long, and then we go, as long as the price stays in the channel, breaks above the channel, we are into the trade. If it breaks here, we’re out. So, if the price immediately breaks, then we’ll probably lose let’s say, 20-25 pips. That’s what we risk. But, as long as the price goes up and creating lower lows and higher highs, higher lows, and higher highs, then you’re actually just moving your trailing Stop below the channel here, here, here, here, here, here, of course, you’re not getting out, because this is only 5 pips violation, and if you’re smart, you’ll always keep 15-20 pips below the support line. Most probably you’ll be out here if you really want to be meticulous. If you want to be more aggressive, then you will also allow this to happen because here we are talking about 15-16 pips, not more. So, if you put maybe a Stop-Loss here, then you will also put right another leg higher, so you will still be in a trade, and as we said you enter the trade in one of seven areas with 400 pips move, because what you do, you say as long as the price does not break this channel comfortably close, trade below, or push downside, I’m going to be into this trade, or the same as in the Euro/Dollar chart, as long as the price is below or above both 200 and 100 moving averages, I’m out. So, maybe here, yes, you could have been out because the price is below 100, below 200 and below the channel for some 10 pips, but still, in that case, we are looking at 230 pips take-profit. So, one of the most basic strategies to implement, not so hard, the most important thing is to ride the trend.

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The 10 most common Trading Psychology mistakes of Forex Newbies

Forex trading mistakes! Find out the 10 Common Trading Psychology mistakes of Forex Newbies

Do you know which are the most common trading mistakes people do? Watch our latest video, where we share with you 10 Common Trading Psychology mistakes of Forex Newbies

10 Common Trading Psychology mistakes of Forex Newbies

In this brief video, we’re going to look at 10 common psychological trading problems. Trading is very much a mental game and it is really a high-performance activity. You need to be performing at your best and one of the facts that slowly dawns on you, as you increase your ability in trading and as you carry on further down the line, is actually, is an extremely psychological and mental activity. And if you haven’t yet grasped that, and you think, “Oh, I’m not interested in the psychological aspect of trading” you almost certainly need to work on your psychology, and if you’ve heard experienced traders  mention this to you, and you’re still ignoring it, go and think to yourself, “Why am I actually ignoring this?” Because your state of mind in the market is such a big factor. If you don’t harness how you’re feeling, your emotions, they’re incredibly strong emotions when you’re trading, then you almost certainly going to a wreck your trading ability and your potential. So, here’s 10 common problems, just to help you to identify the psychological aspect of trading.

So, first of all, one psychological training problem is when you cut winning trades short, you know what your target should be, maybe you’re expecting price to get to the next support or resistance level, you can see that’s the obvious location, but you suddenly see a small retracement on, maybe the 15-minute chart and you cut your winning trades short. A very easy thing to do, I’ve done this and to a certain extent, many traders struggle with this aspect of trading as well. But if you’re habitually cutting winning trades short, that’s an issue that’s going to hinder your success.

Another one is, not pulling the trigger on a good set up due to fear of loss. Maybe you’re just too afraid of risking money in the account. Trading is a risky activity and every time you went to the market, you are risking some money. Sometimes, that might hinder you and affect your ability to actually take good setups.

Another psychological problem is if you’re making small money, but you’re not really able to raise your game to that next level. You’re just making a few points, or maybe a very small amount, a percentage, compared to what you should be making over 6 months or a year.

Maybe you’re afraid to take a good set up because the last few trades were losers. Again, a very common problem to have, you see a good set up, it’s fundamentally sound, it’s technically sound, but because you had two or three losing trades, you’re afraid to take it and you might miss out on a potentially good winning trade.

Another psychological problem is just jumping into the market, unplanned. You’ve all been in the market, when you’ve seen the market suddenly move 50, 60, 70 points very very quickly, and you just jump in to that situation, without planning it, without understanding even what that move is, you think, “Oh, you know, the price is moving, I’m going to join it!” You can very quickly be burned, as price can retrace instantly, so that’s a trading problem I want to watch out for.

Again, if you make profits in the morning, but you lose them in the afternoon, that can be, again, psychology, why you’re losing money in the afternoon when you made it in the morning? Is it overconfidence? How are you reacting to those winning trades?

A deadly disease is doubling down on to a losing position. You’re losing and you just think, “You know, I’m going to add more money into this.” And double down. It’s a very dangerous activity to get involved with. Be careful of doing that, it is a common problem that people have. This is something that I struggle with personally. I’m a pretty mellow guy, and I’m not easily angered, but sometimes when I lose a trade, I feel quite strong feelings of anger and my weakness is I have to watch, I don’t jump into the markets in an unplanned, almost in a revengeful way. That’s an area that I really have to work on. And the thing that works for me is taking, like one, two, three days away from the market, just allow myself to calm down and recover from the anger of a loss.

Another common problem is, letting a losing trade run with the hope of getting to break even. Apologies for that little typo there, it’s a losing run, not a losing run. Yeah, this is, again, a situation you really don’t want to get yourself into, it’s a really common problem, price is retracing against you, maybe you move your stop back, you’re just hoping or praying the price is going to return to your original entry so you can get out without any loss. The problem is the market can be irrational for a lot longer than you can stay solvent. So moving a stop in an unplanned way, letting it run in the hope it will return, is just a recipe for disaster.

And then the final common problem, arguably the worst of all, is over-leveraging. This is, essentially, when you’re trading or risking too much money in relation to your account size. This is one of the worst psychological trading problems you can get, and this is the single worst problem to drain your account the quickest when you’re risking too much, too quickly and you’re over leveraging.

Okay, folks, that’s the 10 common trading problems for you to look at, and you may recognize yourself in those, and I hope in other videos, to explain how we can begin to address those. But, the first aspect, before you can address a problem is to recognize exactly what your problem is, and I hope that going through these 10 common problems has helped you to reflect on maybe those aspects of your trading that is involving far more psychology than you originally thought.

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Find out how to use Fibonacci properly, for a better trading

Learn how to use Fibonacci properly and how to draw Fibonacci retracements

If you are not sure when and how to draw Fibonacci retracements, watch our latest video and see how to use Fibonacci properly, in order to be accurate.

How to use Fibonacci properly – a trader’s guide for success

Hello, and this is Diary of a Trader. Welcome to this next video. Today, I want to go over something that a lot of traders are familiar with, they’ve heard it all the time, there’s plenty of educational videos and information about it out there, but one of the things that I think we don’t discuss enough is how to properly implement this tool. These are Fibonacci retracements and a lot of times people just take a high and a low in a five-minute chart, or they’ll take a high and a low in a 15-minute chart and they’ll just draw these Fibonacci retracements and they’ll just trade often that. And there’s really, inherently, nothing wrong with that because Fibonacci retracements, they are going to be accurate, depending on the scale you use. However, they’re not always going to be sensitive.

If we go from swing to swing we see a lot of people like to take retracements off of the 50%, or the 61.8% retracements. In this case, the swing went all the way to 78.6%, which is a strong reversal zone. We could even go further back here and test this zone here if we wanted. This is in the Ethereum-Dollar pair. You know, it’s which retracement are you comfortable taking your short at. And on smaller time frames, we just get a lot of zigzagging and moves and prices and just not a lot of strong correlation because we could take a swing from here, we could move it from this swing to this swing, we could really go wherever we wanted. So, the important thing is that we know how to draw them, and then when to place them. That is the next most important thing. So, I never like to place a Fibonacci retracement on anything less than a daily and a weekly chart. I just don’t. And it doesn’t work so well on shorter time frames because there’s too much noise. But, on longer time frames, you’re going to find that the Fibonacci levels in a retracement, are going to be extremely accurate, they’re going to be extremely sensitive to price rejection and they’re going to be extremely consistent. For example, if we take a Fibonacci level from here to here, in Ethereum, or we can even go to the first real pullback zone, maybe breakout zone, if we want to call it that, from back here. You know, we could say that this may be our first kind of real pullback zone, the first real swing or low before we had our all-time high. We would say that this is probably what we want to look at. And, so we look at the weekly chart, we see, you know, these are levels, and typically, what we see is that when prices fall and they return to the 50% level, that’s where we get a lot of rejection and that is right where we had price have it’s first kind of swing high rally, back in March, all the way up to April, and the very end of April. And that 50% zone is where we found a whole lot of selling pressure.

Let’s bring it back down to the daily. And we can see that Fib levels, actually, on the weekly charts, they do act as very natural strong support and resistance zones. And, in this case, right here, we can see that we are currently facing a lot of support, right now, at the 78.6% level. But, having a long Fib retracement is something that everybody should do, you should have a major Fib swing in your charts, depending on what you trade. So, if I’m trading the Ethereum… Well, this is the dollar, but the dollar, the Tether, the Ethereum-Tether pair. And this is my swing range, then I know that on a long time frame, from a swing low to the all-time high, that this is the Fib level zone that I’m trading in, and this is what I want to pay attention to. But we also want to look at the levels inside, as we are trading in a current price range, and a current swing, so, if I’m looking at, well, let’s see here, let’s take… Well, let’s take this current swing here. If we do from this swing low to this swing high, and we could actually make these easier on the eyes, let’s make these levels a little thinner. Zoom in here. And what do I see? What do I see? Well, I see that there is something cool that happens, not very often, but when it does, it’s a pretty powerful sign. Right here, this major swing, this 78.6% Fibonacci level is the same as this swing low to this swing high. The Fibonacci level in here, if I move this up a little bit, you can see that 78.6 line. That’s a shared Fibonacci level. Now, that is, generally, a pretty powerful sign of support or resistance, and for right now, we’re looking at this as a pretty powerful sign of support. We can couple that with looking at the low here, in our Composite Index, that is sloping up and then we look at the Stochastic RSI as well, which is sloping up and coming out of oversold territory. So, all of this right here, the price action, the current buying tails on the candlesticks, this is all indicating a strong, supportive, buying condition and that is reinforced heavily by the fact that we have a major 78.6% Fibonacci level, that was found the support, followed by our current swing low, shorter-term swing low-swing high Fibonacci support is the exact same 78.6% Fibonacci level.

And this is really, in my opinion, the proper way to apply Fibonacci retracement, is on major swings of a weekly and a daily chart. And I believe you will save yourself a lot of headaches and a lot of frustration with your Fibonacci retracements if you limit the use of them to only being applied on weekly and daily charts. And on those major swings, and that can help you with a lot of the anxiety that can be accompanied. I also just want to take a quick look at the Fib retracement of the swing low here. Swing high to this most recent swing low. And we can see that that was a resistance zone right up here this Fib level. Something to keep an eye on, something that anybody can easily apply to their trading and that can help you immensely in finding those natural turns in a market. Hope this video finds you well and I look forward to talking with you in our future videos. Bye-bye.

The post Find out how to use Fibonacci properly, for a better trading appeared first on The Diary of a Trader.

How to use Planetary Cycles Trading in Forex and how it can help you

What is Planetary Cycles Trading? How do planets align and what their relevance is to financial markets

Do you know what Planetary Cycles Trading means? Watch our latest video to find out about Forex trading strategies that work!

Planetary Cycles Trading – a financial astrology strategy

Hello and welcome to Diary of a Trader. Today, we’re going to go over planetary aspects or the angular relationship of two planets and kind of where they are in space, literally, in space. How they align and what their relevance is to financial markets.

Now, this is part of what’s known as financial astrology and financial astrology is just mathematical psychology, based on astronomy. And so what we’re going to do is we’re going to open up a new chart, new candlestick chart, we’ll do it of the Euro/Dollar Forex pair. And, next, we need to open up our planetary aspects. Now, when we apply an aspect, there is a near limitless amount of planetary aspects that we can have. Defaults right now to Mercury and Venus and the degree of sextile, which means that’s in periods of 60 degree measurements. If we want to see this from a more kind of a graphical view, we see that this is an ephemeris of our solar system. So, here is Earth, the Sun, Mercury, you can see all the planets here, and all we’re looking for are conditions to be met that the planets are of some type of degree and aspect to one another. So, right now if I were to mouse over here, this is the Sun and Neptune are squared. So, they are about 90 degrees from each other and Neptune and Mercury are squared, they’re within 90 degrees. Or, we can see Pluto and Venus they’re in opposition, which means that they are across from one another. They are 180 degrees from one another. Or Jupiter and the Moon, they are in trine, a trine is 120 degrees. And so, we can see that these change frequently, as we go throughout a day and a year, these will change.

What we’re looking for, is how do these aspects play a role in trading. Well, there is a lot of material written about different planetary aspects and what happens when certain aspects show up, but each chart and each instrument is going to have its own kind of aspects that seem to generate a lot of price activity. And we’re going to see that a lot, when we use the slower planets, like Jupiter, Saturn, and Uranus. The slower planets are really where you’re going to find most of the, kind of, signal generation. In fact, instead of Mercury, I’m just going to do Mars and Uranus. And then, the aspects that we want to look for, where we find a lot of market turns… Again, this is going to take a lot of trial and error and a lot of research on the analysts’ part, but we do know that, from research of other analysts, we know that the degrees of the square opposition and conjunction, these are all types of aspects that have high probabilities of generating some type of market activity. And so, if we scroll all the way back, you know, we can see that here is a… We’ll do the orb overall view, so we can get a clearer view here.

And so this is Mars in opposition to Uranus and then, we have Mars squared Uranus, and we can see, as we scroll around, are there some types of market tops or bottoms that show up before, or after, or around the presence of these aspects. You could see, sure, there’s some, it would be hard to make a trade off this, so we kind of have to look at it a little differently. Now, William Delbert Gann talked about Mars being the trigger planet, like it was the planet that caused moves and causes the generation of activity. So, sometimes, depending on the chart, we want to look at some other planets and aspects. So, this is Mars and Saturn. So, Mars in conjunction with Saturn, that showed up prior to this high, where we had this deep drive in the Pound, or the Euro/Dollar, and that happened, again, back here in 2016, in August. If we scroll back, well, that happened again, in August of 2014, and it was right before a rise in August of 2012. And so, what we’re really seeing here, as we scroll back, is that we have much more data showing that the Mars conjunction Saturn aspect seems to appear and causes drives down in prices. Were there any others that stuck out that would maybe signal some bullish activity? Not really seeing any of the top of my head, here, but certainly, Saturn square Mars, Mars square Saturn, certainly, when that shows up we seem to see some similar activity generated. Let’s look at some other planets here and then we’ll take a look at, like, one more equity as well. So, this is Mars in conjunction, squared and in opposition with Jupiter. And let’s look to see if we have any historical patterns here that we want to see. So, let’s see, this was Mars opposition to Jupiter that caused some lowering of prices. Happened here as well, we had right on a market top here. Yeah, there is definite, definite power behind the Mars-Jupiter aspects.

Now, one thing that we can do to help us anticipate a probable trade idea is that we could look at our Moon Phases as well, okay? So, if you remember, if you watched the video on our moon phases, if we put on our moon phases, we just want to see the Full Moons and New Moons. Generally, if we see Moon phases along with the aspects, we see that there are some high probability trades that we get. So, there was a New Moon that shows up in the Euro, or a Full Moon, rather. Full Moons in the Euro, generally mean that we have some conditions for rising prices. That showed up right as we have an aspect here. Then, we had a New Moon. New Moons are indicative of market highs in the Euro-Dollar. New Moon shows up right near the time that we would have Mars in opposition to Jupiter. Kind of close there. Right here, again, we have a market top, where there’s a New Moon and Mars is in conjunction of Jupiter. Really, not a great signal there, not there. Another market high where we have a New Moon with Mars square Jupiter. We’ve got some rising in prices and we had a Full Moon and a Mars-Jupiter aspect. We were near market high here. So yes, this is a good type of pattern to look at. Full Moon indicating that we would have rising prices moving forward. That’s what we have. We had a New Moon, indicating lower prices and this kind of goes back and forth. So, certainly, what this is telling us is that we are getting very, very strong signals, high probabilities, like in the 90 percentile. When we have New Moons, which… New moons in the Euro-Dollar usually indicate that we’re at some type of swing high. When those show up along with a Mars-Jupiter aspect, they seem to respond according to how they would trade. So, Mars-Jupiter aspects with New Moons, seem to indicate a trending down market. That didn’t happen here. That didn’t happen here, but we had a rise in market here. If we go back, high market down, did not happen here, did happen, yes did happen, did happen. Getting a lot of strong signals on that.

And that is how you can apply aspects to various different markets and even at shorter time frames, Venus is sometimes used as a trigger planet, as well. If we were to go with Mars and Venus we would see a lot more signals that would pop up in our charts. And sometimes, it’s harder to trade off after the faster aspects, but certainly, they do show trade possibilities. In fact, if we go to Mars and maybe Jupiter, we would see some faster signals. Again, this takes a little bit of practice and making notes, writing down notes, we’re saying, ‘Well, where was the market high and was there an aspect?” And then you would just make a little note saying, Well, there was a swing high with a Full Moon and there was a Jupiter square Venus, or there was a market high prior to a large down move, like right here, where Venus was opposed to Jupiter and there was a New Moon, which indicates some type of market high and then we had a drive down. So, when we’re looking at this, we see… Well, we just want to take notes of these aspects and then what their behavior was before and after they showed up. And not all aspects are going to be showing turns in markets because we’re looking at negative aspects right now, but we can look at positive aspects, like sextile and trine. And often times, these are bullish signals in some markets. In some currency markets, they are.

Okay, hope you enjoyed this video and I look forward to talking with you about on our further videos, when we’re completing our studies on the basics of financial astrology and how to implement that in your trading. Thank you!

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How to draw harmonic pattern – a lesson you will not find elsewhere!

Learn how to draw harmonic pattern and trade Musical Harmonics

Are you curious how harmonic patterns indicator look like? Watch our latest video to learn how to draw harmonic pattern and to find areas of support and resistance, using musical harmonics.

How to draw harmonic pattern – a lesson you will not find elsewhere!

Hello, and welcome to Diary of a Trader. And in this video, we’re going to be going over finding areas of support and resistance, using musical harmonics and I hope you enjoy this video.

And in this video we’re going to be going over something called musical harmonics and I know that it may sound a little strange, a little odd, a little weird, but believe me this is something that you will see probably nowhere else in a lot of different sites that say they offer good education. This is a more advanced and contemporary form of analysis. This actually came from a gentleman by the name of Tony Plummer and it came out of his book, “The Law of Vibration. The revelation of William D. Gann” and if you ever heard me reference Gann before, that is the style of trader I am. I am a Gannist, that’s what we call ourselves. And Gann is a guy who focused on naturally occurring numbers on geometry and he approached the market from the point of view that it was not random, that it was fixed, that it had a pattern and that time was ultimately the reason for trend changes and price changes. It wasn’t news, it wasn’t war, it wasn’t a tweet, it wasn’t the season, well, yes, actually it was sometimes seasons, but it wasn’t anything that we could do as humans. In other words, Gann really focused on the theory that it is important for us to be within the natural trend and movement of a market, as opposed to thinking that we can influence it and that ultimately that is what he left us with a lot of his work.

Tony Plummer really expanded on a lot of this and it’s very, very, very kind of out there thinking, but what Tony Plummer found was that, if you could apply the same harmonic frequencies that occur in musical notes, onto a price chart, and this is actually very fascinating. So, if you remember us talking in previous videos on support and resistance, we’ve talked about horizontal areas of support and resistance, where we look for prices that have been traded before and have had some bottom. So, certainly we see here, this would probably be a good area to put a horizontal line indicating there’s some support here because price has come down to this region before and tested it. We try to think of these zones as being more like an area or like that there’s a shield like in Star Trek or Star Wars, there’s a shield around these zones that price has got to get through. And if we look even up here, there’s probably one that we could think of. And really, this is all just taking past price action and creating those zones based off of those levels. But, what if there’s something more natural? What if there is a method to the madness? We look at all these Candlesticks here, we see all these weaks, we see these random, why does price stop at these random areas? Why does it seem to halt here, there and all over the place? Well, that’s because there are actually, I don’t want to say they’re hidden, but we haven’t actually identified them yet. There are actual levels of price that fall in natural harmonic structure, just like music. So what I’m talking about is Do, Re, Mi, Fa, Sol, La, Si, Do. That is Solfege or Tonic Sol-Fa. My first major was in music, in music education, I was a Euphonium player, if you were wondering. So, to me, this was very fascinating, because I had no idea that this was true, but I created an indicator and I’m going to add it to our chart here. And what this is going to do is it’s going to look a lot like a Fibonacci tool, but this is reserved just for here. And so, when I talk about a harmonic level, I’m talking about numbers that increase, that they double essentially, from a value of 1. So, a middle Si has a vibrational frequency of 256, and an octave above that, the next major Si above that, resonates at 512 vibrations, and then the next octave above that it’s 1024, okay? So, there are values we basically start at 1, we double 1, we get 2, times 2 that’s 4, times 2, that’s 8, so we go from 2, 4, 8, 16, 32, 64, 128, 256, 512 and so on. Those are actually prices that will put on these charts. So, if I’m looking at Bitcoin right now, and we’re trading at 7698, I know that there is a value between that. 4096 is one of the harmonic levels and then the octave above that is 8192. So, I have to put in the low here. This is the tool and you can see the style, they’re named Do, Re, Mi, Fa, Sol, La, Si, Do, ori Do, Si, La, Sol, Fa, Mi, Re, Do and we’re going to plot them out. But it’ll do it automatically. You won’t to actually have to put these in yourself, so I just highlight this and I know the number that I want to start with, and this will be explained in the accompanying article that’s with this video, please reference that, that will give you the levels and the numbers to use.

And so, if we do 4096 and we look at our chart, that is what we are looking at, and actually, maybe we want to decrease the size, first, of those octaves. And if we maybe turn this over to a four-hour chart and we go back to the beginning of it, keep scrolling here, notice how strongly price reacts to these lines and these notes as natural ranges. And notice also, that they are not equal distance, this is not a series of eight lines that are evenly distributed, okay? They are in a percentage, or a proportion of the octave, so Do is here, Re is a quarter of the way, Mi is at eighth, the fourth two thirds halfway, three fourths and two thirds and then finally we have a full octave. So it’s Do, Re, Mi, Fa, Sol, La, Si, Do. And we can also tell, with these levels, these are natural zones that they act very strongly not only as support and resistance zones, but they kind of tell us how far something’s going to trade. What is the range it would trade in? How far is it going to move from one space to the next? We can see that happen. And, let’s say, okay, well that happened, what about all this area up here, what does that look like? We do the same thing, we’ll just add another layer here, and I just start with the last level here, and that was 8192, and so, for this, I will put that 8192, and there is my new harmonic structure. Again, notice how strongly those harmonic levels act as natural areas of support and resistance. Look at most recently, I re-did this video for the most contemporary price that we were trading, and this is where we’re at. We can see that these price swings were very easy to identify. It was very easy to know where to trade, for instance, right now, price is trading against a harmonic level and all I have to do, is I have to look at some time frames and look what’s happening. I know that if price were to break down below here, I would like to see it retest this zone, before I would want to take a short on here, or I would want it to bounce off of that zone and show a couple of candlesticks higher, before I’d want to go long again.

This tool does not exist on any other site, with any other service, with any other education provider. I do not know of another single technical analyst or trader who would teach this to you, or who would want to teach it. But, I know the struggles that traders go through and if I can help identify actual real static values of support and resistance, I think that can help your beginnings as a trader. And again, this is a very valuable tool you will find it useful in any market. Seriously, we could apply this anywhere. Somebody might ask “Okay, well, this is easy to do with whole numbers. What if we’re trading something like Cardano?” You know, we’re trading in sense, might have to do the reload there. Now we have to use some common sense as well because we can change these values into decimals we could change them into other divisions, we could break them down how we want, so 8192 could be 81 dollars and 92 cents, or could be 8 dollars and .192 cents. There’s a lot of things that we could do, let’s just maybe look at Cardano-Ethereum and what’s the what’s the present trading at 32785, that’s actually right around our harmonic level of 32768, but we would have some difficulty, actually, finding that. Well, we could do that, let’s just build it off that level, okay? So we’ll build up off this level, and so we’re looking for 0.00032768, and would you look at that? I never cease to get amazed by how accurate and how strong these zones are, so built off of that harmonic level, look at those zones. The peaks, the highs and the lows, the valleys, the troughs, they all show strong respect to these harmonic levels. I don’t think you will find a lot of things that show proof or evidence of the market being a natural phenomena and not a random phenomena. The tool that you’ll use in your trading or even in your own investing, this tool, you will be light-years ahead of anybody else who is trying to learn from another service because all they will tell you is to draw straight lines based on previous price action. And there is nothing wrong with that. It’s just not as accurate. That is a dynamic form of strength and resistance, that is not as accurate, nor as helpful, nor as profitable as finding static zones of support and resistance. In our future videos, we’ll have some other natural numbered ways to identify support and resistance. This is in musical harmonics and there’s another form of harmonics, based on natural squares. We’ll get to that in other videos, but we’ll go over those at a later date.

Hope you found this video useful and applicable to your trading. Again, thank you for watching and I look forward to speaking with you in our future videos. Bye-bye.

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Complete Tutorial on how to use Metatrader 4 platform

Learn how to use Metatrader 4! A Metatrader 4 tutorial for beginners

Do you want to know how to install and how to use Metatrader 4? Watch our latest video tutorial for beginners, and find out how to trade on Metatrader 4.

Discover how to use Metatrader 4 – beginner’s guide with complete setup

Hello, this is Diary of a Trader. And today’s video is on the MT4 platform. And we’re going to review how to install this platform, some of the basics, as far as how to add indicators, how to enter trades, and some of the more advanced features. And so if you go to the Meta 4 Trader Web site, there’s two options, MetaTrader 5 and 4. We want to select 4 and then select Download for Free. And then, we have the option to Download and we just select that, and we see that it downloads, click on it, select Yes, and then hit Next. It only takes a few seconds to install. And then, after this is done, we will just hit Finish and it will bring up MetaTrader 4 Web site and it will bring up on our screen. Now, depending on how you’ve set this up before, your screen will probably look a lot like this. Or you’ll have multiple screens on a layout like this. To get rid of that, we can just maximize one of the screens and we still have all of our tabs down here.

Now, to get rid of this kind of hard on the eye grid, and this color scheme, what we can do is we can right-click and go to Properties, okay? And we can turn off the grid, and then we want to go to colors, and we want to set the background to white, and the foreground to black. And then, we want to maybe change the colors of the bar, so instead of bar up being lime we’ll just change it to lime green, we’ll change bar down to red, and then the bullish candle we will also set to green and the bearish candle, we will also set to red. And so, there is our Candlestick. Now, if we select OK, this is our chart. Now, let’s say we don’t want to go through that entire process, so we can right-click anywhere on the chart and go to Templates, and then select Save Template. And I’ve already done this, I just called it, “New Template”. So, we just type in New Template, select Save, and then, if we go to another chart, let’s say we want to trade the Aussie Dollar/Yen pair. We right-click on that, we go to a new chart window. And here’s that kind of hard on the eyes look, we right-click on the screen, anywhere on the chart here, and we go to Templates, load, and then double-click on our New Template. And there is our nice, cleaner, fresher looking template.

Now, as we look at this here, this box up here that says Buy and Sell, that’s the one-click trading. If your chart does not have that, then you’ll have to select this, One-Click Trading. See, it turns it off and one-click trading is fairly simple. It’s just you select whatever buy or sell you want, you input the size of the lots you want, and then that is it. And so, let’s say I want to go long here. I just hit Buy and we can see that my buy entry was taken. And here’s the Buy. If I want to set the stop now, I can right-click on the byline, select Modify, and let’s say I want to put my stop below, at 81.81. I’ll just type that in here, 81.81, and then select Modify, and there is my Stop-Loss. I can also move this later if I want to, just by clicking and dragging. Now, let’s say I don’t want the CCI here. Or, let’s say I want to add another, let’s say I want to see the volume. I’ll go up to Insert, and this is where a lot of our, we’ll see, our expert advisers, a lot of our objects that we can draw, like Fibonacci retracements, trend lines. But we want volume. So, volume is one of the most used ones and that’s the by default up here, otherwise, we’d go to the Volume tab and then just select Volume and hit OK, and there is our volume. Now, let’s say we want to see, maybe some Bollinger Bands on this. Same thing, we go to Insert, Indicators, Bollinger Bands is a default there, but otherwise, we can go to Trend, Bollinger Bands and hit OK and there is our Bollinger Bands.

Now, we can also, if we want, there’s Auto Trading. And so, Auto Trading is done by having something called an expert adviser and this is a pre-determined entry and exit criteria, based on a strategy. And that is one that either you develop or that you can buy or that you can download for free from various places, they’re really all over the place. One of the default that they have is the Moving Average Convergence Divergence, the MACD. And, if we want to use this, we can just double-click and here are the defaults, and we can allow the modification of the Signal Settings if we want, so we can change these if we want to. But otherwise, if we hit OK, then we select Auto Trade. Now, we have on the top right, this is telling us that the expert assistant MACD is operating. And so as the conditions for entries and exits are met based on that expert adviser, it will enter those trades. Now, if we look at, just making this a little bit more nicer, let’s say we want to draw, you know, where is the 50% retracement from this swing high to this swing low. Well, we go to Insert and then we’re looking for objects, and we can go to Fibonacci, and we want a retracement. So, retracements here’s our swing high and we just click on it and then we drag it down, and we might want to change the color of this because it is a little too yellow. So we go to Properties and we’re going to go to Levels, and we’re going to change it to black, or midnight blue, maybe. And here, we can see our Fib lines.

Now, how do we change the settings of an indicator, though? Well, let’s look at something a little bit more advanced. Let’s go to Insert and we can go Indicators and we want to go to Trend, and let’s apply the Ichimoku system, and we can just hit OK. So, here’s the Ichimoku system, and let’s say these lines, theTenkan Sen, the Kijun Sen, and the Chikou Span. Let’s say we don’t really like how those are. We can just right-click, go to Properties, we just really look for a part on the indicator, like the baseline, so we double-click on the blue line, or on the cloud and we’ll see that the default levels, for the Ichimoku system we really don’t want to change these, but we can change the colors, so the Tenkan Sen, which is the faster line, some people get confused by that. A lot of people associate red with being the slower frame in a moving average, so let’s change that from red to green and then, let’s make the line a little thicker. And then, let’s change the Kijun Sen. Let’s change that from blue, let’s change that one to red. I’ll also make that a little thicker. And then the Chikou Span, because we’re using a white background, let’s change that to black and we’ll make that a little thicker. And then the Kumo cloud can remain the same. The bullish and bearish cloud. And we select OK, and there’s our change. And then, we can see that this is a little bit easier to look at. And so, if we zoom in, we see the current price action. A little easier on the eyes and we can see that the red line, known as the baseline or the Kijun Sen. That’s more easy to tell that that is the resistance span or the slower average in the Ichimoku system, and then our Tenkan Sen, or the conversion line, the faster one, we can see that that is also, the Chikou Span or the lagging span, here is very easy to see, and the cloud just remains the same.

Hope you found this video helpful and good luck on your trading! Bye-bye.

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