Get started

Trading-forex

The Fibonacci Game!After the yesterday's 160 pips fall, EURUSD took great support at $1.0776 - $1.07574 levels for a good 78 pips pull back therefrom. Saw some rejection, Retraced 50% and ended up forming a wedge with a $1.07970 low and $1.08236 high. There was quite a resistance at $1.08070 levels, Breakout therefrom made the high of $1.08236. (Which happens to be the 61.8% Retracement level too). When I got to my desk, This whole story was already in play. Price was travelling near the $1.08070 levels and thanks to the buying pressure reflected by the long wick and a hammer candle, which made the entire set up look like a re-test. 1) Getting some decent 1.95 Reward to Risk. 2) DXY seeking resistance at 100.49 levels and preparing for a quick Immediate fall. 3) Buying pressure at 61.8% retracement level. 4) Making higher highs - higher lows on a shorter timeframe. These were the reasons for me to put on this quick trade for 13-14 pips. It's just so amazing to see the way Fibonacci levels play out even on such a shorter timeframe. Fun Fact (Just in case you didn't know) - Fibonacci Sequence was first discovered by an Indian mathematician Acharya Pingala.
by pranay0508mishra
MARKEY CYCLES PSYCHOLOGY | EMOTIONS & COGNITIVE BIASES All markets go through cycles of expansion and contraction. 📈When a market is in an expansion phase (an uptrend), there is a sentiment of optimism, belief, and greed. Typically, these are the main emotions that lead to a strong buying activity. Sometimes, a strong sense of greed and belief overtakes the market in such a way that a financial bubble can form. In such a scenario, many investors become irrational, losing sight of the actual value and buying an asset only because they believe the market will continue to rise. They get greedy and irrational by the impressive bullish movement, expecting to make huge profits. As the market gets heavily overbought, the local top is created. In general, this is considered to be the point of the highest risk. In some cases, the market will start a sideways movement while smart money steadily sells the asset. This is also called the distribution stage. However, some markets don't present a clear distribution stage, and the downtrend starts sharply after the top is reached. ➖➖➖➖➖➖➖➖➖ 📉 When the market starts reversing, the euphoric mood can quickly turn into complacency, as many traders refuse to admit that the uptrend came to an end. As prices continue to fall, the market sentiment quickly moves to the bearish side. It often includes feelings of anxiety, denial, and panic. In this context, by the anxiety we mean the moment when bullish biased market participants start to question why the price is falling, which soon leads to the denial stage. The denial period is marked by a sense of unacceptance. Many investors keep holding their losing positions, either because "it's too late to sell" or because they want still believe that "the market will come back soon." But as the prices drop even lower, the selling wave gets stronger. At this point, fear and panic often lead to what is called a market capitulation (when holders give up and sell their assets close to the local bottom). Eventually, the downtrend stops as the volatility decreases and the market stabilizes. Typically, the market experiences sideways movements before feelings of hope and optimism start arising again. Such a sideways period is called the accumulation stage. ❤️Please, support this idea with a like and comment!❤️ ⬇️Subscribe to my social networks!⬇️
OANDA:XAUUSDEducation
by VasilyTrader
2