The first thing to understand about market movements is that markets move in cycles—on all time frames. Most people don’t realize that bubbles are neither good nor bad; they simply exist because we are human. We borrow, lend, fear and … Read More
We use charts to summarize and organize market data, providing clues about supply and demand. However, you need to develop the ability to read market structure on charts. While chart reading is a very important skill, there is no single … Read More
Wyckoff market cycle In early 1900s Richard Wyckoff developed his understanding of the buying and selling convictions of large traders through the patterns their activity left on prices. Wyckoff proposed a four-stage market cycle, and this method is still relevant today, because Wyckoff cycle is just an expression … Read More
First, we need to define the range and identify the trend. Here’s a clear definition: Uptrend: Characterized by Higher Highs (HH) and Higher Lows (HL). Downtrend: Defined by Lower Lows (LL) and Lower Highs (LH). Range: Occurs when neither of … Read More
Failure Test Trade Type: Support/resistance holding or trend termination. Concept: Markets often probe beyond significant price levels to trigger stop orders and spark activity. However, these moves frequently lack genuine conviction and quickly fail, reversing once the stop orders are activated. … Read More
Moving Averages The Truth About Moving Averages. Many trading guides recommend specific moving averages, like a 21-period exponential or a 50-period simple moving average. However, when someone suggests using a particular length, the logical question is, “Why that one and not … Read More
Standard Trendline Standard trendlines are foundational tools for analyzing market trends. In an uptrend, trendlines are drawn connecting higher lows, marking points where buyers step in with additional demand to push the market higher. Wyckoff referred to this line as … Read More
Momentum indicator is a generic term, it embrace all different indicators like RSI, MACD, Stochastic, ROC and others. All of them have the ability to show divergences and you can draw overbought/oversold lines on many of them. Following principles we will discuss … Read More
We started by understanding how the economic machine works, the chart representation of markets and market cycles, and realized that there are only four trades in technical analysis. We learned how to plot market structure on bar/candle charts and analyze … Read More