Worksheets

What is Market Structure?

Market Structure includes actual price behavior, the formation of reversal points, and price movements. This structure determines the market trend (bullish, bearish, or ranging).

 Accurately identifying these structures is crucial, as they help in setting trade direction and determining entry and exit points.

Dovish stance refers to expansionary monetary policy, aimed at stimulating economic growth, which often leads to the depreciation of the related currency.

A dovish stance is usually favorable for risky assets such as cryptocurrencies and stocks. In contrast, a hawkish stance describes a contractionary monetary policy, implemented to control economic inflation and generally results in currency appreciation.

Hawkish stances by the Federal Reserve often lead to corrections in risk markets.

Monetary policy, with its direct impact on liquidity, reduces or increases inflation. The way monetary policy affects economic inflation depends on the type (tools) and direction (contractionary or expansionary) of the policy.

Moreover, implementing monetary policy may lead to a boom or recession in various economic sectors by changing societal consumption patterns.

The COT report, or Commitments of Traders, shows the position status of major market participants in futures and options trading.

The report is published weekly on Fridays by the Commodity Futures Trading Commission (CFTC) and includes information on trading positions closed by the preceding Tuesday.

In simple terms, liquidity in Forex refers to the availability of buyers and sellers in the market, allowing for smoother trade execution. In trading, liquidity represents areas where buy or sell orders can be quickly executed.

The price of any asset in the market is determined by the balance between supply and demand:

Supply refers to the quantity of a good or asset in the market. When supply exceeds demand, prices fall.

This phenomenon usually occurs at significant market highs or lows and sometimes after liquidity has been collected.

Traders utilize this area to identify potential price reversal points for entering or exiting trades.

Lower Lows (LL) and Lower Highs (LH) are basic concepts in technical analysis used to identify bearish market trends. These structures reflect the dominance of sellers in the market and the price's tendency to decline further.

Order Flow (OF) reflects the stream of buy or sell orders from traders, investors, institutions, and other market participants. Ultimately, this flow determines the direction and movement of currency prices in both ICT Style & SMC Strategies.

A swing high is a point in the market where the trend direction changes after reaching a peak price, and a downward move begins.

This pattern is commonly observed in technical analysis [especially in the ICT style] across various timeframes and helps understand market structure changes.

This platform is designed for traders in financial markets such as Forex, precious metals, indices, and energy. 

It provides various features for analysis, risk management, and the execution of trading strategies.

The Interbank Price Delivery Algorithm or IPDA is one of the liquidity concepts in the ICT style. This concept refers to the rules that determine the price in the market.

Inducement or Deception (IMD) refers to conditions where smart money and large market players manipulate the market to lure retail traders in the opposite direction.

The manipulation creates a false impression of price movements, leading traders to enter against the future trend, ultimately resulting in losses.

Inducement refers to areas where liquidity from retail stop-loss orders is hunted. One such area forms after a Break of Structure (BOS), mainly if no price pullback occurs before the break. The targeted area is known as the Liquidity Inducement Zone in such cases.

Please understand and do the practice questions carefully!

Fear or greed among traders are Fundamental analysis factors that shape price trends. Risk-averse sentiment refers to the fear of asset declines and the tendency of traders to invest in safe-haven assets like gold.

On the other hand, risk-on sentiment reflects the greed of traders for price increases and opportunities to buy risky assets such as cryptocurrencies and stocks.

Futures contracts are tools for trading and speculation or risk hedging; futures contracts allow retail traders and large companies to manage the risk of price increases or decreases by fixing prices in the future.

Additionally, futures contract data is used to predict market sentiment or trends in financial markets.

In technical analysis of financial markets, Fibonacci ratios and levels are recognized as one of the oldest tools for identifying price reversal points.

The main feature of these levels is their compatibility with the repetitive structure of the market, such that during both upward and downward waves, prices often react to these levels.

Stagflation is the worst phase of an economy; Despite rising unemployment rates, economic growth declines instead of reducing inflation. 

Central banks face significant challenges in monetary policy during this period due to sticky inflation, leaving little room for expansionary monetary or fiscal policies.

At the same time, stimulative and supportive policies must be implemented to revive the economy.

Gunning Stops refer to the deliberate actions of large institutions to push the price toward retail traders' stop-loss levels. By activating these orders, liquidity is collected, leading to increased market volatility.

A 30-minute XAG/USD chart illustrates how Gunning Stops function. As retail traders' stop losses are triggered, a wave of forced selling occurs, often causing a sharp and strong price movement in the same direction.

Tìm hiểu tứ giác

Complete each problem, rounding to 3 decimals if necessary.

NFTs are unique, non-interchangeable, and created to enable ownership of digital assets. Distinct, unique, and non-replaceable these are the hallmarks of NFTs.

These relatively new tokens can generate income through creation, investment, royalties, and blockchain gaming.

Overbought and oversold conditions occur when the price of an asset deviates significantly from its equilibrium or historical average.

This situation is often the result of temporary market emotion and can signal a potential correction or trend reversal.

A Reclaimed Order Block in the ICT trading style initially functions as an Order Block but guides the subsequent price movement after a price break and returns to it.