#PATIENCE

2 Sep 2023

Hello traders, today we will talk about patience

Patience is the key to the best trades.

#Plan your trade.
#Do your research.
#Wait for the perfect entry
And many more but only patience will allow this process to unfold.

It's crucial to develop patience as a crypto trader. It's simple to fall for the hype surrounding quick earnings and instant delight. However, making snap judgments can result in losses.

By exercising patience, traders can track market patterns, examine the market's behavior, and come to wise conclusions. The long-term advantages of this strategy may be substantial.
Patience also enables traders to avoid emotional choices that could be harmful to the health of their portfolios, such as panic purchasing or selling.

Additionally, the volatility of the cryptocurrency market is well-known. Prices can change quickly, and crypto assets can lose or gain more than 50% of their value in a matter of days or even hours. Having patience allows traders to weather the market's ups and downs without making snap decisions.
Finally, traders can choose superior risk management strategies by exercising patience. Before making a choice, it enables them to conduct their due diligence and reduce their exposure to any damages.

Conclusion: Having patience can help traders succeed when trading cryptocurrencies. They are able to make wise choices and steer clear of costly errors thanks to it. The saying "slow and steady wins the race" is true.

It’s okay to wait… and wait… and wait for the exact moment to make your move.

Play the long game.

Never stop learning
I would also love to know your charts and views in the comment section.
Thank you

3 Sep 2023

Catatan

Hello traders, today we will talk about Types of market days

Some crucial aspects significantly influence technical analysis. The type of the market day is one of those crucial elements. Any trader who is actively trading in stocks, indices, cryptocurrencies, forex, derivatives, etc. may gain an advantage by properly analysing the type of market day.

Today, we'll talk about "6 different types of days" that could occur in the market. Please be aware that the six days differ greatly from one another. These patterns are not inviolate, thus they should only be used as a general indicator rather than a precise one for any given trade.


Types of market days:
# Trend day
# Double distribution trend day
# Typical day
# Expanded typical day
# Trading range day
# Sideways day

#Trend Day
The 'Trend day' is typically a volatile trading day with a definite bullish or negative momentum. On a day with a positive trend, the beginning candle typically represents the day's bottom, and the market subsequently slowly rises throughout the day. The day's high is typically marked by the opening candle on days with a negative trend, and the market then progressively decreases during the day.
Typically, a quiet day with range-bound movements comes before the trend day. Gives the possibility of a significant reward if correctly identified. Rarely, perhaps only a few times every month, do such trending days occur.

#Double distribution trend day
The 'Double distribution trend day' is a slightly complicated but incredibly effective strategy for executing aggressive trades. Because of this, institutions and experienced traders make extensive use of this method.
It is typically distinguished by being undecided at the start of the session. On a day like this, the market first moves in a narrow range. An initial balance is another name for it. The reference points are the initial balance high (IBH) and initial balance low (IBL). The day of the Double Distribution trend is quiet to start. The price eventually moves away from this range and tends in the direction of a new value, driven by buyers or sellers. When the market's momentum has subsided, another range-bound movement develops.Due to the fact that the majority of trading activity takes place at either extreme, this is where the phrase "Double Distribution trend day" originates.
Wide initial balances are more difficult to break than narrow initial balances.

#Typical Day
It is distinguished by a significant rise or fall at the start of the trading day. It might be a reaction to any significant macroeconomic news. Then, by adopting opposing positions, the market participants drive the price back in the opposite direction. The market simply trades within the range it generated earlier in the trading session when a broad range was formed in a relatively short period of time.

#Expanded Typical Day
It resembles that of the 'Typical Day' that was previously addressed. The beginning balance is not as large as on a "Typical Day," but the early price fluctuation is less erratic. This gives market participants the chance to break this constrained range. When this range is violated, either by an increase in selling pressure or purchasing pressure, the market then moves strongly in that direction.
The initial balance in this situation is greater than on a Double Distribution Trend Day but less than on a "Typical Day."

#Trading Range Day
Prices are being deliberately pushed up and down by buyers and sellers. Buyers and sellers who are responsive will try to enter at the extremes, driving prices back to the starting position. This kind of day offers both sides fantastic trading opportunities.

#Sideways Day
A "Sideways day" is one in which there is little movement in the price. As neither party makes any bold directional trades today, it is somewhat of a day of indecision for both parties. Option sellers typically enjoy trading on days like this since they can profit from time decay due to the non-directional, subdued action.

Although the Trading Range Day and the Sideways may appear to be identical, they differ greatly from one another. On a "Trading Range Day," both buyers and sellers are quite prevalent; however, this is not the case on a "Sideways Day."

Never stop learning
I would also love to know your charts and views in the comment section.
Thank you

3 Sep 2023

Catatan

Candlestick patterns need to be one of your trading arsenal's most effective weapons. We can determine the direction of the market using several candlestick patterns. All timeframes exhibit these patterns, but the daily candlestick patterns seem to be the most reliable.

Once you recognize these patterns, you may be ready for your next move and use other tools to join the market, including the previously discussed MA approach and flag patterns (see attached charts). This chart is just for information

Never stop learning

I would also love to know your charts and views in the comment section.

Thank you

4 Sep 2023

Catatan

5 Sep 2023

Catatan

Hello traders, today we will talk about 5 TYPES OF ELLIOTT WAVE PATTERNS



( FIRST SOME BASIC INFO )

What is Elliott Wave Theory?
The Elliott Wave Theory suggests that stock prices move continuously up and down in the same pattern known as waves that are formed by the traders’ psychology.

The theory holds as these are recurring patterns, the movements of the stock prices can be easily predicted.

Investors can get an insight into ongoing trend dynamics when observing these waves and also helps in deeply analyzing the price movements.
But traders should take note that the interpretation of the Elliot wave is subjective as investors interpret it in different ways.

(KEY TAKEAWAYS)
The Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology.
The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend.
Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing.
Before discussing the patterns, let us discuss Motives and Corrective Waves:

What are Motives and Corrective Waves?
The Elliott Wave can be categorized into Motives and Corrective Waves:
1. Motive Waves:
Motive waves move in the direction of the main trend and consist of 5 waves that are labelled as Wave 1, Wave 2, Wave 3, Wave 4 and Wave 5.

Wave 1, 2 and 3 move in the direction of the main direction whereas Wave 2 and 4 move in the opposite direction.

There are usually two types of Motive Waves- Impulse and Diagonal Waves.

2. Corrective Waves:
Waves that counter the main trend are known as the corrective waves.

Corrective waves are more complex and time-consuming than motive waves. Correction patterns are made up of three waves and are labelled as A, B and C.

The three main types of corrective waves are Zig-Zag, Diagonal and Triangle Waves.

Now let us come to Elliott Wave Patterns:



In the chart I have mentioned 5 main types of Elliott Wave Patterns:
1. Impulse:
2. Diagonal:
3. Zig-Zag:
4. Flat:
5. Triangle:





1. Impulse:
Impulse is the most common motive wave and also easiest to spot in a market.

Like all motive waves, the impulse wave has five sub-waves: three motive waves and two corrective waves which are labelled as a 5-3-5-3-5 structure.

However, the formation of the wave is based on a set of rules.

If any of these rules are violated, then the impulse wave is not formed and we have to re-label the suspected impulse wave.

The three rules for impulse wave formation are:

Wave 2 cannot retrace more than 100% of Wave 1.
Wave 3 can never be the shortest of waves 1, 3, and 5.
Wave 4 can never overlap Wave 1.
The main goal of a motive wave is to move the market and impulse waves are the best at accomplishing this.




2. Diagonal:
Another type of motive wave is the diagonal wave which, like all motive waves, consists of five sub-waves and moves in the direction of the trend.

The diagonal looks like a wedge that may be either expanding or contracting. Also, the sub-waves of the diagonal may not have a count of five, depending on what type of diagonal is being observed.

Like other motive waves, each sub-wave of the diagonal wave does not fully retrace the previous sub-wave. Also, sub-wave 3 of the diagonal is not the shortest wave.

Diagonals can be further divided into the ending and leading diagonals.

The ending diagonal usually occurs in Wave 5 of an impulse wave or the last wave of corrective waves whereas the leading diagonal is found in either the Wave 1 of an impulse wave or the Wave A position of a zigzag correction.




3. Zig-Zag:
The Zig-Zag is a corrective wave that is made up of 3 waves labelled as A, B and C that move strongly up or down.

The A and C waves are motive waves whereas the B wave is corrective (often with 3 sub-waves).

Zigzag patterns are sharp declines in a bull rally or advances in a bear rally that substantially correct the price level of the previous Impulse patterns.

Zigzags may also be formed in a combination which is known as the double or triple zigzag, where two or three zigzags are connected by another corrective wave between them.‘




4. Flat:
The flat is another three-wave correction in which the sub-waves are formed in a 3-3-5 structure which is labelled as an A-B-C structure.

In the flat structure, both Waves A and B are corrective and Wave C is motive having 5 sub-waves.

This pattern is known as the flat as it moves sideways. Generally, within an impulse wave, the fourth wave has a flat whereas the second wave rarely does.

On the technical charts, most flats usually don’t look clear as there are variations on this structure.

A flat may have wave B terminate beyond the beginning of the A wave and the C wave may terminate beyond the start of the B wave. This type of flat is known as the expanded flat.

The expanded flat is more common in markets as compared to the normal flats as discussed above.




5. Triangle:
The triangle is a pattern consisting of five sub-waves in the form of a 3-3-3-3-3 structure, that is labelled as A-B-C-D-E.

This corrective pattern shows a balance of forces and it travels sideways.

The triangle can either be expanding, in which each of the following sub-waves gets bigger or contracting, that is in the form of a wedge.

The triangles can also be categorized as symmetrical, descending or ascending, based on whether they are pointing sideways, up with a flat top or down with a flat bottom.

The sub-waves can be formed in complex combinations. It may theoretically look easy for spotting a triangle, it may take a little practice for identifying them in the market.

Bottomline:
As we have discussed above Elliott wave theory is open to interpretations in different ways by different traders, so are their patterns. Thus, traders should ensure that when they identify the patterns.


This chart is just for information
Never stop learning
I would also love to know your charts and views in the comment section.

Thank you

8 Sep 2023

Catatan