Understanding market trends is essential because it provides traders with a framework to make decisions aligned with the market’s direction. Trading with the trend increases the probability of success since it reduces the chances of going against the market’s natural movement.

The Markdown Phase in forex trading refers to the period when the price of a currency pair begins to decline after reaching a peak. This phase follows a price rally and signals the shift from an uptrend to a downtrend. It is characterized by a series of lower lows and lower highs, which are key…

A Throwback occurs when price retraces briefly after breaking through a significant support or resistance level, and this is often seen in uptrends or downtrends. A Low-Volume Throwback happens when this retracement happens with reduced trading volume, signaling a lack of conviction from the opposing side.

In most market scenarios, Failed Rallies are seen as a confirmation of a trend reversal. A rally that fails to continue higher often indicates that the market is shifting direction, and this typically happens after the formation of a top

Market patterns are crucial for making informed decisions. One such pattern is the concept of “tops,” which refers to the peak points in price movement before a reversal occurs. These “tops” are critical in assessing potential trend changes, especially in relation to the concept of CHoCH (Change of Character).

In Forex trading, the term Change of Character (CHoCH) refers to a shift in market behavior that signals a potential trend reversal or a change in market sentiment. It’s a concept widely used in technical analysis to identify when the market is no longer following its previous pattern, and a new trend is about to…

Market behavior is a key to successful trading. Two common yet distinct terms that often arise in the context of market trends are Buying Climax and Bull Climax. While they may seem similar, they represent different phases in market cycles and provide unique insights for traders.

A market cycle refers to the natural fluctuation of price movement over time, driven by various factors such as economic data, geopolitical events, and trader sentiment. These cycles help traders identify trends, spot potential entry points, and predict market behavior. × The Phases of a Market Cycle A typical market cycle consists of four distinct…

By understanding the fundamental principles of Elliott Wave Theory, traders can identify potential market trends, entry and exit points, and areas of reversals. In this guide, we will explore everything you need to know about Elliott Wave Theory, including its structure, key principles, practical applications, common pitfalls, and how to integrate it with other technical indicators.