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Price Action Patterns That Work (Guest Post)

Price Action Patterns That Work (Guest Post)

When it comes to price action patterns, most traders will think of…

“Hammer”

“Shooting star”

“Engulfing pattern”

Now, these are easy patterns to learn for beginners.

But, if you want to take your price action trading skill to the next level, then you must master new price action patterns.

That’s why in today’s post, you’ll discover 5 price action patterns that work—so you can develop sniper trading entries to trade market reversals, trend continuation, and even breakouts.

Ready?

Then let’s begin…

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

Price action pattern #1: False break

The false break is a reversal price action pattern that allows you to buy low and sell high.

Here’s why it works:

 

Imagine, the price makes a strong bullish move into resistance—and breaks out higher.

At this point, many traders have this thought process…

“The market is so bullish”

“Look at how big those green candles are!”

“It’s time to buy!”

So, this group of traders buy as the price breaks above resistance and their stop loss is likely below the previous candle low, below support, etc.

This means if the market makes a sudden reversal, you can agree that these cluster of stop loss will be triggered which puts selling pressure in the market.

Plus, if bearish traders step into the market and sell near the highs of resistance, you can expect the market to collapse lower and erode the gains it made earlier—that’s the power of the false break price action pattern.

Now that you’ve understood the logic behind the false break price action pattern, then here’s how to trade it…

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Golden Cross Trading Strategy Guide (Guest Post)

Golden Cross Trading Strategy Guide (Guest Post)

Do you know about the Golden Cross? screenshot-2020-11-06-at-16-46-18

This post was originally posted here.The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 613 followers.

Have you heard of the Golden Cross signal?

If you listen to the media, you’ll hear about the Golden Cross (like how the market is bullish when it occurs).

But is it true?

Well, that’s what you’ll learn today…

Specifically, I’ll cover:

 

What is a Golden Cross and how does it work?

The Golden Cross is a bullish phenomenon when the 50-day moving average crosses above the 200-day moving average.

Here’s why…

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Explaining Quantitative Easing & Its Effect On Commercial Banks (Guest Post)

Explaining Quantitative Easing & Its Effect On Commercial Banks (Guest Post)

Do You Know What The Effects Of Quantitative Easing Has On Commercial Banks?

Quantitative Easing: what's it all about? - Investor's Champion

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @kyith and has 1095 followers.

Quantitative easing means to liquify the financial markets and the main economy, a lot of money was pumped into the financial system.

The straightforward deduction is that if you create money from out of nowhere, either your currency is going to shit or that inflation will run rampant.

We are not seeing both in the United States right now but a lot of the people are speculating it will be a matter of time.

I wonder whether that will really happen. I say this because I can’t say I am that competent to make that deduction. Usually, we have to know to a good extent what I am talking about to make that conclusion.

I do think that from what I hear, we have created an interconnected system that will create more than 2 standard deviations, 3 standard deviation volatility.

One of my favorite people on the financial blogosphere Cullen Roche of Pragmatic Capitalism explained that when the Federal Reserve infuses money, it is an exchange of very short-term liquid money with long-duration money/bonds.

In a way I understand it but if I cannot illustrate it out well, then maybe I do not understand it as well.

In any case, BCA has a good explanation about what happens when the Central Bank buys back commercial securities from the banks.

It sought to help to explain the relationship of Central banks with the monetary system.

I used to not get the relationship of Central Banks that well but the way to think about them is like the Bank of the financial institutions. They somewhat act as the lender of last resort.

If banks produce the lifeblood of the financial system, then they have to be functioning.

But what if the banks are not functioning?

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7 Things About Support and Resistance That Nobody Tells You (Guest Post)

7 Things About Support and Resistance That Nobody Tells You (Guest Post)

How well do you know how to utilise support and resistance for trading?

A Guide to Support and Resistance Trading

This post was originally posted here. The writer, Rayner is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 605 followers.

Here’s a quick quiz for you about Support and Resistance…

The more times support and resistance is tested (within a short period of time), the stronger it becomes. (True / False)

You should set your stop loss below support and above resistance so you don’t get stopped out easily. (True / False)

You want to buy near support because it offers a favorable risk to reward on your trade. (True / False)

Do you want to know the answers to these questions?

Then read on…

If you read most trading textbooks, they’ll tell you that the more times support and resistance are tested, the stronger they become.

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The NO BS Guide to Swing Trading (Guest Post)

The NO BS Guide to Swing Trading (Guest Post)

Everything you need to know about Swing Trading

What Is Swing Trading in the Stock Market - Investment U

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as @Rayner and has 597 followers.

Swing trading is one of the few trading approaches that’s suitable for the retail trader — even if you have a full-time job.

Why?

Because it doesn’t require you to spend all day in front of your screen, and it still offers enough trading opportunities so you can generate a consistent return from the markets.

Do you want to learn more?

Then today’s post is for you because you’ll learn:

Are you PUMPED?

Then let’s begin!

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The Complete Guide to Risk Reward Ratio (Guest Post)

The Complete Guide to Risk Reward Ratio (Guest Post)

Don’t be fooled by the risk reward ratio — it’s not what you think. You can look for trades with a risk reward ratio of 1:2 and remain a consistent loser (and I’ll prove it to you later).

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This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

Similarly:

You can look for trades with a risk-reward ratio of less than 1 and remain consistently profitable.

Why?

Because the risk-reward ratio is only part of the equation.

But don’t worry.

In this post, I’ll give you the complete picture so you’ll understand how to use the risk-reward ratio the correct way.

 

And after reading this guide, you’ll never see the risk-reward ratio the same way again.

Ready?

Then let’s begin…

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Golden Cross Trading Strategy Guide (Guest Post)

Golden Cross Trading Strategy Guide (Guest Post)

Have you heard of the Golden Cross signal? If you listen to the media, you’ll hear about the Golden Cross (like how the market is bullish when it occurs). But is it true? Well, that’s what you’ll learn today…

What is a Golden Cross and how does it work?

The Golden Cross is a bullish phenomenon when the 50-day moving average crosses above the 200-day moving average.

Here’s why…

When the market is in a long-term downtrend, the 50-day moving average is below the 200-day moving average.

However, no downtrend lasts forever.

So, when a new uptrend begins, the 50-day moving average must cross above the 200-day moving average — and that’s known as the Golden Cross.

An example of a Golden Cross chart:

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

Pro Tip: The opposite is the Death Cross — when the 50-day moving average crosses below the 200-day moving average.

Now some of you are probably wondering:

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The Symmetrical Triangle Trading Strategy Guide (Guest Post)

The Symmetrical Triangle Trading Strategy Guide (Guest Post)

Have you ever traded the Symmetrical Triangle chart pattern? If you did, then you know it’s not as easy as it seems.

1-symmetrical-triangle-17-nov-17-1024x451

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

For example:

You might have thoughts like…

Should I trade the breakout of the Symmetrical Triangle or do I wait for a pullback?

Where should I put my stop loss so the market doesn’t hunt my stops?

How do I know which direction the Symmetrical Triangle break out?

Now if you face any of those issues, don’t worry.

Because in today’s lesson, you’ll have the answers to these questions (and more).

OK, let’s get down to business…

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Bearish Engulfing Pattern Trading Strategy Guide (Guest Post)

Bearish Engulfing Pattern Trading Strategy Guide (Guest Post)

Do you know why most traders lose money when trading the Bearish Engulfing pattern? It’s because they treat them all the same!

1-be-pattern-on-higher-htf-normal-retracement-on-ltf-pt-1-29-apr-16-1024x462

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

Here’s the thing:

You can have two identical Bearish Engulfing patterns but, one is a high probability setup and the other is to be avoided (like how you run away from a stinky ol’ skunk).

Why?

Because you must pay attention to the context of the market.

I know that’s not useful (like telling a blind man to watch his step).

That’s why I’ve written this trading strategy guide to teach you all about the Bearish Engulfing pattern — so you can trade it like a professional trader.

Then let’s get started…

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How Covid-19 Has Changed The Whole Dynamic About F.I.R.E (Guest Post)

How Covid-19 Has Changed The Whole Dynamic About F.I.R.E (Guest Post)

The Financial Independence Retire Early (F.I.R.E) movement has for the past few decades thrived on the ability to act on whatever you like, whenever you want, wherever you are at the expense of not anyone but yourself who can make that decision.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and has 2169  followers.

The unprecedented case of Covid-19 which we are currently living through has clearly changed the whole dynamic of retiring, which as part of a subset also includes retiring early.
For many white-collar workers, including myself, we’re dealing with actual work by working from home for an extended period of time for the first time in our lives.

I must say it has been a very refreshing and invigorating experience on its own having to deal with it rigorously for the past four months or so, even if it means sometimes having to pick up calls at 8pm or catch up on work during weekends.

It works extremely well for an introvert personality like mine and not for a single moment do I relish the old hate-smell of corporate attire of long sleeve shirt and shoes in such a humid country like Singapore.
Still, the appeal of working from home does not work well universally in consensus with everyone.

While some do appreciate the flexibility of working from home, you may find it a distraction if you are staying in an unconducive environment where you have children running around the house or neighbours that are staggering noisy. Others may also prefer a face to face interaction between colleagues when discussion about work and the frequent use of online tools may be disconcerting at some stage.

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