Posts

Microbalance

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Microbalance (semi microbial) - this is a short-term movement in the narrow corridor. The ideal microbial are the few candles out of the graph that have the same minimum and maximum. How to sell the microphone In fact, microbial trade is not so difficult. It is nothing more than a mini-accumulation zone. Therefore, we must trade this form, as we do in the standard accumulation zone. In particular, we should wait for which side will come from the given microbalance and then when the correction starts and the price is closer to that microbalance, we should see if what will be the price and volume (vertical, horizontal, clustering) in the reaction zone of the microbalance. Consider a specific example. Picture 1 - Opening a microbalance during testing As the picture shows, the price from the microbalance is above the price.  Accordingly, in the case of correction, we should open the position only on the buy. We are looking for this micro-zone zone test. Ther...

Indicator - Stochastic Oscillator

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Oscillators The oscillator  is derived from the Latin word “oscillo” which means swing or movement. In technical analysis,  oscillators  represent a mathematical expression in relation to the speed of the price movement. Because of this, they also call the indicators of their advance. The oscillators  are mainly used to determine the price of the so-called "saturated buying" and "saturated selling" zones. The saturated buy means that the indicator is at its maximum rate and therefore the next increase in the price is less likely. In the case of the sale of the indicator, the indicator is at the lowest rate and therefore the further movement of the price will no longer continue. From the above, it pursues that the traders are using the  oscillators  to change the trend. Oscillators are often used when there is a flat and the market does not have a sharp expression. The indicators in trading terminal MT5 are displa...

Formation of "triple bottom"

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The formation of " triple bottom " in technical analysis is recognized as a substitute for trend direction movement. It consists of 3 minimums and it indicates the change in the downward trend. The formation of "triple bottom" is similar to its structure with the "dual bottom" figure; the difference is that it adds another minimum. The formation "triple bottom" is formed on the background of a strong downward trend. In case, if the market is not set up in the downward trend and we see a similar figure of "triple bottom", this means that the patent is similar to that figure but not the "triple bottom" pattern. Pic 1. - The formation of a "triple bottom" The basic elements of the "triple bottom" are 1. Formation of a "triple bottom" must be preceded by a strong downward trend. 2. Figure 3 must have three (minimum), which are at one level, but there is a slight margin bet...

MARKET DEPTH – HOW TO USE DOM MODULE FOR MAKING TRANSACTION ON THE EXCHANGE

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MARKET DEPTH – HOW TO USE DOM MODULE FOR MAKING TRANSACTION ON THE EXCHANGE Market depth DOM (Depth of Market) - the integrated trading platform or a separate program in the form of the tool, which shows the layout limit orders, as Bid- is also Ask's side. Pic 1 - Position of the order warrants in the DOM The disadvantage of this instrument is that a large player uses manipulations and many traders have become victims of these actions. As a rule, a marketing tool uses a well-known method of manipulation called spoofing (spoofing). During the spawn, a large player at a certain price level will place large limits on the DOM in order to create the illusion for the retailers that the market is going to start a movement in a particular direction. As soon as the small traders open the orders in this direction, the market makers receive a sufficient amount of liquidity than they instantly remove the DOM from this large limit orders as a result of their stop-loss or...

Shakeout and day-to-day trade aspects

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Shakeout (market traders getting kicked out of a large player) is a phenomenon which has experienced many experienced traders on their own and many merchants who are in a position of profit are either stops in the market or in some cases have lost some deposits, especially those who ignore the Risk Management and the position of the credit party has opened its position to a large extent. Although the shakeout can be virtually found in all time frames, we are most affected by the traders who trade in the day and close positions before the clearing. This phenomenon is common to all trading instruments, but most often it occurs in volatile assets, such as oil, gold, stock indices (Dax, s & p 500, etc.), and cryptocurrency. Shakeout in principle is one of the most difficult false breaks. In contrast, in this case, a simple false breakthrough is not only the price of the specific benchmark, but the entire buyer/seller's zone, the price goes up high in the above-mentioned zon...

Trading on Price Levels and its effect on small traders:

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Trading on  Price Levels  and its effect on small traders: Trading on Price Levels is a very popular strategy among various traders around the world. Nevertheless, for many people, this subject still remains an unsolved problem, which does not allow them to successfully trade in the currency and commodity markets. Some beginner traders face the problem after breaking up the resistance and support lines on the chart, which they learned from the books written by various authors concerning technical analysis. All the authors of these books indicate us that our main task is to find a high “price levels" and to work on the price levels from the toss. Accordingly, the question arises is what level can be considered a strong level and therefore how to draw a diagram level. The strong level is the place where the large player opens his position, which is also termed as “smart money”. Consequently, when the price reaches at a level to the "smart money" zone, ...

Double Bottom

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Double Bottom Double bottom   is one of the most common formations which indicate the direction of trend movement.  It usually appears in the chart after the downward trend. The pattern consists of two parallel roots, among which we have a line of strength.  Often called the dual layer of "w - accumulation" because it is very similar to the Latin letter W. Pic.1 - Double Root As a rule, the classic  double bottom  formation occurs when the counter-trend movement begins on the market, even if it is too small. In the development of the downward trend, we can see a lot of figures on the graph which are somewhat similar to the  double bottom  formation, but in order to turn it into the above pattern, it is necessary that the line from the second footstep to cross the resistance line from the bottom and the figure will be shown in the w. Pic.2 - Double bottom formation is confirmed Now let’s consider all the si...