How to read chart

[1odi]

yeah makes sence, i used to use weis wave before along with volume to see the total for the waves etc. market profile is intriguing, i know a bit about but not that much to start trading it.
SHS? what s that? u don have the abreviation in the second post?

[dudebro]

This is deep. Too deep for my brain maybe, but I’ll still read it.

[steveepperson]

This is yet another one of Kriel’s videos to not-so-subtly introduce you to his overpriced trading course ($5000 to be exact).

I know a guy who can teach you everything essential to learning price action for Just under $500. The real cost in learning is time. And no, Anton, I do not need to take a trip to Phuket, Thailand in order to learn how to trade.

[1odi]

ur missing the point mate, it s about the concepts and the points that he s making, not about his course

[howtoreadchart]

@1odi SHS means “head and shoulders” pattern

Now I am going to review one more #AAPL #stock intraday chart. It gives idea of SFDB and how you can implement your decision based on it.

the described principles below are valid for other markets/TF. Just think how people lose money - and charts become more full of sense.

1. market forms minor low. People tend to “hide” their SLs under low such this. Minute by minute, the number of SLs are growing there. When market “see” the number is big enough, it…

2. …drop right there. This is an SLK - stop-loss-killing action.

3. And one more shot to kill more SLs.

4. Here is Demand wave: a) green clusters b) strong close c) breaking resistance. Plot SFDB on this level. Market should find support around 2019.80-219.90.

5. Supported.

6. This is a Trap for bears. Not very obvious. But study the price action. It was several bars of decline. Indicators encountered people and bots to sell. But what we got soon?

7. Demand bar. This DB was powered by SFDB level.

Market closed at 220.70. Just imagine the emotions of buyers who were knocked out from market at points 2 and 3.

From the short-term picture, market is bullish while price is trading above 220.10-220.20.

[1odi]

Screenshot

spring(fake break) vol increase, 1hr fib, round nr, pivot got it a bit late but hey, took half and locked BE

[howtoreadchart]

Is the current VETUSD (crypto) strong?

Well, technically we have a balance A-B, It was broken up by the surge of demand (point 1). Moreover, price is holding above SFDB line (point 2).

But personally I am skeptic about current rally. Look at the bottom. We have green-red indicator. It represents the balance between Bids and Asks. If those bids are fake? What if they can be withdrawn in one moment? If those bids are real, why is price moving so slowly in upward direction? The high A was gained easier?

So, we have buying signals on this chart (for example testing SFDB line), but personally I do not feel the confidence to follow them. New high above A - looks as the SLKT Trap.

[steveepperson]

ur missing the point mate, it s about the concepts and the points that he s making, not about his course

Okay, fair enough. I just don’t like this guy and how he thinks he’s superior to retail traders. These institutional guys think it’s okay to have a 12% return per year. I don’t. You may as well invest in mutual funds.

[1odi]

BOE interest rate in 5m, i m short pound yen, took partial profit stop at BE

Screenshot

[howtoreadchart]

Yesterday I wrote about my skepticism related to VETUSD market. Actually, it made a step down as other Alt-Cryptos.
This post is dedicated to EVRt sign. I pick ETCUSD market to outline this sign in better details.

Study the behavior of price /volume when the market did reach blue circle level. Think about the volume as the quantity of effort. And measure the result on the price axis. You can make a suggestion - bulls have spent a lot of efforts to push the market higher, but they did gain small progress. Market profile forms a shape of “P” letter. And how can the inner working be described? Professional traders put a lot of SELL-Limit orders above high A. That is why we have big volume and a small bullish result. This is a sign of EVRT (a sign of weakness).

Note the following response.

a) Price formed short term balancing wedge (blue lines)
b) Bearish movement - price decline amid rising volume (red lines).

This change in character confirms the weakness in EVRT wave.

What is next?

1. Huge volume down-bar could be interpreted as the attempt of market to shake out weak holders (hidden strength)
2. Price broke up in the upward direction from the balancing wedge (confirmation of strength).
3. Plot the SFDB around at the breakout level. While the price is holding above SFDB - intraday traders have the arguments to play in the bullish team.

[howtoreadchart]

It was a poor morning for #GBP #GBPUSD. We have a very clear indication of weakness above 1.255.

Falling price is entering the Zone of Support @ round number 1.25. It should produce some sort of bounce up. But Read the Chart. We have a lot of weakness overhead. Definitely, it will be hard for bulls to extend bounce up move into sustainable up-trend.

[howtoreadchart]

NASDAQ Stock Index Wide Picture Overview

I use daily TF, data from CME, futures market.

I did divide the chart into components - waves. Let’s analyze every component and combine them into the opinion.

A) Upwave 10/March-2/May. This upwave formed a busy trading range (1) around 7375, and culminated on 7850 level (2). We can see a spike in profile (2), this is distribution stage. I believe, news was good. And professional operators unload their holdings onto buying rush of FOMO public.

B). Downwave started on Monday 05/May. We got 4 red candles in a row, the first time for a long time. Volume did increase. Declining price amid falling price - is the typical bearish behavior. If Chart reader were able to detect the distribution range at the top of up-wave A, this decline did not make a surprise for them.

Note, price bounced up (3) from profile spike (1). But we can see ND sign (lack of buyers) at the top of bounce movement (15/May). As a coincidence, the supply did arrive on 16-19/May.

Downwave B Culminated in form of Panic volume spike and Fake penetration (SLKB) of the low of the up-wave A. Many investors had to turn bearish (enter shorts) because their systems detected the first lower low. But it turned into the Trap for them.

C) The general shape of up-wave C builds the vision of letter “P”. We have a lot of volume at the top of the wave. As you can see, profile spots the spike at 7950 level (4). How can we interpret it? Another range of Distribution? Oh yeah. Market penetrated the top of the up-wave A. Many investors had to turn bullish (enter longs) because their systems detected the higher high. But it turned into the Trap for them. 25-28/July were No-Demand days.

D) On 29/July, the new Supply-wave did start. It culminated (Intraday Panic Selling 05/Aug) at the level of horizontal spike (5). That downwave formed shape with profile spike 7475 (5). Later. this level was tested (6). And after SLKB Trap on 25/Aug (7) …

E) …a new up-wave was started by Demand Bar on 4/Sep (8). But as you can see, the character of the movement is not very speedy and easy.

So, what is the judgement?

We have HEAVY supply around 8k level. Despite the market is trading within current up-trend wave, IMO, bulls have no enough power to overcome 8k Resistance soon.

[howtoreadchart]

Markets change their behavior when the majority of public expects the continuation of the trend. Here is an interesting chart for you. Blue lines - FED rate. Gray zones - periods of crisis.

Note the downward reversal of the blue line at the right live edge. Will the gray zone will start soon?

[howtoreadchart]

Let’s take a wide view on Bitcoin/USD market. I use 3D TF and average data from 5 Major exchanges.

Read the Chart:

1. No Supply under 9k

2. The surge of demand broke out 9k resistance.

So, we have 9k support after 1+2 actions.

3. Buying culmination above 12k. Check Google Trends. “Bitcoin price” was extra-popular on the 25-20/Jun days. This is a sign of FOMO Climax.

4. Bounce up from 9k Support. If the market were bullish, it should overcome the Jun/July highs. However, we got only a fake breakout of 12k level (5)

5. The second bounce up from 9k support. What the result? Price did not even reach 11k.

Well, the inability of market to rally after bounces from support line - is the bearish sign. The last 4 red bars have low volume. Why trading activity is low? If market has a lack of buyers (demand), then we should expect the breakdown of 9k line with an increase in volume (supply pressure). In this case (I believe in), the decline should develop down to 6k support.

[howtoreadchart]

In the previous post about #BTCUSD, I wrote:

we should expect the breakdown of 9k line with an increase in volume (supply pressure). In this case, the decline should develop down to 6k support.

So, the bearish journey toward 6k has begun. Actually, It has begun… much earlier.

Take a look at the big vertical picture to know what I mean.

[howtoreadchart]

Setup for shorting

Every market is moving within neverending cycle: …balanced -> unblanaced -> balanced -> unblanaced -> balanced -> unblanaced -> …
Balanced markets cover 80% of time. Trending markets last 20%.

It is hard to understand, but many cycles are developing at the same time on different timeframes. Learn more in Peter Steidlmayer original materials.

The zones of balances can be detected on chart as they form the triangle shape. The zones of unbalance forms trending movements (pumps and dumps).

The goal of a trader is to find low-risk opportunities. Where do they hide? Think from the point of view of market balances. From my point of view - the rational answer is:

• sell at the top line (resistance) of the new balance after the previous balance was broken down
• buy at the bottom line (support) of the new balance after the previous balance was broken up

Here is a pair if the #BTC chart.

On the top side - 30m bars, it shows the triangles of balances.

On the bottom side - clusters tick chart. It shows the details and confirmation to open the trade. A lot of green clusters - minor buying culmination. Some sellers are knocking out amid triggering their SLs. Some buyers enter breakout longs. Soon, they both will find they made a mistake. This is your setup for shorting.

[howtoreadchart]

BTCUSD. Let’s do update. I use Bitfinex clusters, UTC time.

First of all, what is the context? Price has been moving inside balancing triangle/wedge AB for several days. (Note, it entered the wedge after falling - this fact increases odds for a bearish escape from balancing wedge - this concept often discussed in classical TA).

Second fact - SLKT above 8300. I pointed attention on this Killing of SLs of sellers (and trap for bulls) in Tradunity Main Telegram Chat.

So, we had the more weakness on background - this is context. What we had next?

1. Supply wave
2. Supply wave culminated in for of Panic at the level of line B (bottom/support level of balancing wedge).
3. Yes, this is EVRB (small progress for bears)
4. NS (lowering of volume on the level where Panic+EVRB were detected)
5. With a minor sequence of Strength (Panic+EVRB+NS), Bulls tried to push market higher.
6. But their power exhausted quickly. This is No Demand (low volume attempt to go up caused by a lack of buyers). Note, ND appeared just at 50% half way back of decline from SLKT 8350 to Panic 7950
7. SB (I’d like to see higher volume) and confirmation of ND. Bearish Cha Cha. Chart tells you market changed its sentiment. Holding longs became very risky as buyers were not ready to push market above 28/09 SLKT.

What’s next?

8. An attempt of bears to break down big AB wedge. Volume was extremely high.
9. This bar tells that bearish attempted was about to fail. Because a lot of activity of this bar was registered above the body of minor balance CD. This is bullish sign and chart tells that bar #8 is likely to be a Big Trap for bears with killing SLs under 26/Sept low.

So, as BTCUSD is trading above 7900, I expect an attempt to breakout above line A.

[howtoreadchart]

Here is a Setup for Shorting. It uses the oil market but works fine everywhere. As described below setup based on a cruel market nature.

I call it the Test_Of_RFSB. Here is a fresh example in the Brent futures market.

The first chart is telling the global view (1 candle = 1500 ticks). You can see on chart #1:

1. the breaking down of line A.
2. consolidation zone after break-down of A
3. development of the Selling Wave with big bearish effort around 59.40. Plot RFSB here.

The idea behind the testing RFSB - is to knock out bears who joined the selling wave from good positions. Test means that -> the market makes back move up in order to trigger SLs of bears placed around the breakeven level. As you can see on the profile, we had a spike of activity at 59.40 level. So, point #4 - is the “test” of RFSB and knocking out sellers from a falling market.

Now, look at chart #2. This is footprint (1 candle = 144 ticks). We need to find the best moment to open a short position.

1. Abnormal Buying during testing of RFSB on faster TF. Green Clusters = Many Existing Shorts are Stopping-Out. Market Fooled that Sellers. Thereby, it lost its interest to go further up.
2. That is why selling pressure appears (Pure Genuine Supply). Price starts to decline amid the red Delta = bearish behavior.

A period of transition from 1 to 2 = the rational moment to enter shorts with applying your personal Capital Management Rules

[howtoreadchart]

In the last overview about #BTC market (posted 2 days ago), I wrote:

… as #BTCUSD is trading above 7900, I expect an attempt to breakout line A.

Since that time, price increased from 7900 to 8200. Let’s do update.

1. After break-out of line A…

2. …price did advance up to 8400. Study carefully the character of up-wave in point 2. It consists of 3 up-bars. Every next up-bar has bigger volume than the previous bar. And every next bar has smaller bullish progress in comparison with the previous up-bar. This is EVRT - big Effort Versus small Result. EVRT tells about Supply swamping Demand. Sellers activated above 8400.

3. This is SLKT - stop-loss killer at the Top. It: a) knocks out sellers who placed their SLs above the high of Point 2 and b) involves bulls in buying. This is pure manipulation. That is why you can see…

4. … fast decline after SLKT pump bar. The chart tells, market is not interesting in holding above 8400 figure.

5. SLKB brings some bullish impulse to market. But it seems, buyers will not capable to develop a powerful pump and breakout 8400 resistance.

IMO, negative sentiments are growing again

[howtoreadchart]

Yesterday, I’ve posted messages in Telegram Chat about gold

I wrote:
market is not interested in moving higher. We have to expect some sort of decline.

Let’s look at this market with a more detailed view and analyze how the situation has developed.

I use ATAS software, a tick chart from Moscow exchange.

1. This is a pumping upmove from yesterday. I judged it as an SLKT and starting the shape of weakness formation. Note “P” shape. It means a lot of activity on the top (around 1524 level). This is a typical behavior for the weak market. You can describe it as EVRT (small Result for bulls Versus high Effort on the Top), or a wall of SELL-LIMIT orders met up-wave.
2. As a consequence of Supply Entered the market, price started to go down. This is the second stage of the Shape of Weakness formation.

After slow sideways movement on Friday, we got…

3. …News Event spike during American Session. This is another up-movement in fake direction. This up-bar diversion: a) knocked out bears from good positions, and b) attract buyers in Trap
4. Decline with breakdown of support line

Believe or not - On Thursday, professionals & Insiders were aware of Friday news effect. That is why they managed to prepare themselves.