Get started

Patterns

How to use Corrective Structures to develop a SetupGreat day to learn something, today; we will understand how to use corrective structures to develop a setup on any chart. a) There are 3 types of Corrective Structures, Zig-Zag (first example), Flat (Second Example), Triangles (third example). Use them as an archetype to spot them on a chart. b) Now that you understand the types of corrective structures is time to look at one on the chart ( you can see a Flag Pattern on the real chart) c) Should I trade all the corrective structures I see? NO, YOU DONT! You need Context. Your corrective structure must be well-positioned on the chart, it can be a Trendline, or it can be a Support. Never trade isolated patterns. d) Then you need a clear path in the direction you are expecting. In this case, we are at All-time Highs, so we don't have any Resistance e) How can I calculate my target? Use Fibonacci Extensions. Draw it from the base of the impulse towards its top (where the corrective structure starts) and then take it back to the impulse's bottom. Pay attention to 2 levels only 1.27 for Break Even, and 1.618 for Target f) Only take setups with a risk-reward ratio higher than 1.5 Have a Great Day!!!
NYSE:CRMEducation
by ThinkingAntsOk
28
MSFT: Looking Ahead, Bulls Have Work To DoAt this point, MSFT isn't providing much clarity. We've formed a descending wedge that the bulls absolutely crushed through, unfortunately the bears came out and pushed priced back down into the pattern. This was a big loss for the bulls as they were looking to get control of some major trendlines. Now we're sitting at the bottom of our trendline support. I've added an extra beneath that hasn't been tested yet but we could be in for a ride lower if the bears keep up their momentum. We also have a doji forming signalling indecision, big moves could follow, however our indicator isn't showing us anything. Price will typically want to fill gaps and the bottom of the gap rests at 207.50 so that price is completely reasonable. This chart is unclear but I expect us to fill the lower gap over the next few days since that is the High Volume Node on our Volume Profile. Nothing about our CDV indicator is giving us a sell signal or indicating a change in possible direction/momentum. The recent price action concerns me and I can't a great case for the bulls. However, they may find move price up testing the gap above, that will be an important point to break through. We will look to our CDV indicator to see if it's a real move. Overall, I expect price to consolidate into the gap below and then go on price discovery from there. I would be watching this gap if you are in MSFT this week. NASDAQ:MSFT
NASDAQ:MSFTShort
by jakelikesstocks
2
SPY Respecting Technicals in the Face of UncertaintyHello, Here is an updated SPY chart for everyone to consider. My analysis is on the chart but here are a few things I'm concerned about Bull Concerns: Bulls got news today but wasn't able to break a crucial technical level. (350-351) We have several gaps from our parabolic move that we will need to fill. It looks like we may be respecting a technical downtrend that was an extension from Octobers downtrend. We have 2 daily touches so far and we're working on a 3rd. Overall the PCCE ratio is actually too bullish. Meaning there may not be as many buyers in the market right now. Bear Concerns: Stimulus, Stimulus, Stimulus - Right now, I think this will be what the market needs to regain some bull structure. Uncontested Election - We are able to verify that we will have an easy transition of power Most of my thesis relies on the technicals, as that's what I love. But you must always consider the fundamentals as well. This is my analysis and any decision that you make is yours, and yours alone. AMEX:SPY
AMEX:SPYShort
by jakelikesstocks
18
Bulls Losing Strength Mid-Day on SPYThe bulls failed to capture 338 which had become an important intraday level for them. After rejecting for the 3rd time, that's all the bears needed to hop in. Since then the bears have maintained their control but they have work to do if they want to take us negative for the day. Price action will likely remain volatile through close but I don't expect the bears to have enough in them to take us negative before close. Right now the market is looking like its favoring a Trump win. I am completely unbiased and my assumptions are purely based on price action of the market, commodities, and currency. So far it's been Solar having the hardest time trying to understand what it wants to do. AMEX:SPY
AMEX:SPY
by jakelikesstocks
1
Probabilities on USTECHSeasoned traders will know the influence USTECH has on world stock indices and several forex pairs. I'm seeing something that I did not quite expect. I stick my neck out. But note that this market is not a true market. How? It is well known that it is artificially inflated by the influence of a powerful body called the FED. If you don't know the FED, stop trading now. I show two paths based on 'theory of curves' and what I would normally expect. I am there to be proved wrong by the markets - all the time. Newbies focus on being right, and how right they are. Seasoned traders embrace being wrong, and limiting how wrong they are. Yep - that's a very big difference. So - we'll have to wait and see what happens next. No choice.
WHSELFINVEST:USTECH100CFD
by Captain_Walker
Macro Bull Flag in BTC Just Broke Out Huge Risk/RewardRecently I have discovered that assets have not just been in a very bullish trend, but that they are showing signs of being within a specific bullish trend formation. Specifically, bull flags. I'm pretty astonished to have confirmed that this is the case by applying the characteristic ABCDE pattern they display. The implication of this cannot be understated, especially as I am seeing bull flags on lower time frames forming continuation patterns and beginning to break out right now. Bitcoin is, as I write, completing a break out. The rally has begun to take off, and will steam ahead towards the all time high. Additionally, many are feeling a lot of FUD and pessimism about current market conditions, but according to my analysis here. The market should have completed it's final E move down and is ready for sustained upside from here on out until the breakout. I believe this breakout will happen in a little over a week. Whenever breakouts happen from a completed pattern, that is ALWAYS the point of maximum price velocity in the market, whether a crash or a rally. So the implication here is that, because the above pattern is an 8 month extremely bullish pattern, that has just completed, and we have signs of bullish continuation flags starting to breakout, as soon as these new bull uptrends reach and exceed the previous highs, there will be a massive unprecedented upside rally. This is most likely to be a once in a lifetime scenario or even less common. The upward price momentum should be shocking and unfortunately cause disorientation and the urge to FOMO buy. This is the first risk with this scenario The second risk here is that the comedown from this excessively overbought condition will be as big in scope as the comeup. One thing to keep in mind here is some simple sayings, "Easy come, Easy go", "The faster it rises, the faster it falls" These are general truths that will bear out their time tested wisdom once again in this extreme and unsustainable new bull market we are entering. Finally I want to touch on the grand opportunity that this presents to people who see the signs and are able to act in advance. THIS IS NOT A TIME FOR FOMO! If anything, reaching asset prices somewhere of an indicator level of $4,500 on the S&P500 and $27,000 to $50,000 in BTC are likely good places to consider asset liquidations. This is a way to take advantage of a temporary premium value in assets. There will be a rally, a top, and a correction to this quick and easy money. My plan is to buy now, liquidate around indicator levels aforementioned, and rebuy at the following indicator levels that a bottom may be in at: $2,700 in S&P500 and $7,500 in BTC. These are previous support levels and are the likely places prices will stop in the coming correction. Please remember that when you see shocking price movements in the markets in the coming weeks, the highs will be unsustainable, and will come down in short order. Please do not FOMO in and protect your family as well. The risk here is great, but there is also reward for smart money. I am choosing to go all in now. I'm mostly in LINK but also have some BTC and at times will use ETH. I have leverage available for these and will use it to maximize my ROI on the way up. On the other side I along with the smart money presumably will all be holding cash, metals, and other safe havens, or actively shorting the markets back to equilibrium median value. But the equilibrium will not occur before sending the markets to lows not seen since the March crash and February of 2019. People who buy out of euphoria and hysteria will be hard pressed not to give in to panic selling when their inflated purchases lose more than 40% of their value after just a few short months. This will devastate small retail and retirement accounts who don't know any better. The patterns I see and the momentum as well is unmistakable to me, if you read this please keep this in mind when you see surprising things happening in the financial news soon. And take appropriate precautions. Also, remember that if you are surprised, you're too late. There are financial professionals projecting $4,500 (30%) gains in the stocks by EOY and I predict $27,000-$50,000 in BTC value at the top, but the lows that I predict should come in at previous lows in the market at $2,700 S&P500 and $7,500 in bitcoin, not as bad as the March crash, but you can see how if you FOMO into this rally, you will rapidly lose all your value and more causing the urge for panic selling. This is a recipe for big losses to uninformed people. And finally there is always some news to go with the charts, and in this case there will be a narrative as well. Believe me: THIS BULL RALLY AND CRASH ARE ALREADY IN THE CHARTS. I can see it very clearly, and my fractal analysis shows that the crash will be a necessary part of this, not optional. So please be smart with your money. I am writing this on October 27th, 2020 I am open to any communications about his, thanks Intratekram - Ben Ghrist - ghristb@gmail.com
BITSTAMP:BTCUSD
by BuddhaGemFinder
How PATTERNS help us MAKE MONEY| EducationWe have many people who are just learning to trade, so I want to help you with this. For professionals - Reminder. THE IMPORTANCE OF PATTERNS 1) How to use Forex Patterns Patterns are often found on the PICTURE chart, which are formed due to price movements. They are not easy for beginners to notice, but for professionals they are GOOD helpers in predicting prices. The patterns can be roughly divided into "Bullish" and "BEARS". "BULLISH" patterns are those patterns that tell us about the likely future price growth and allow us to determine the position to open a buy trade. Rising "Triangle" Trend continuation pattern. It is formed by a rising support line and a horizontal resistance line. It is worth opening a deal with this figure after the price breaks through the resistance and rolls back, fixing on the line. Inverted "Head and Shoulders" It is formed at the local lows of the chart during a downtrend. After the figure is fully formed, the price growth can be expected. The minimum amount of growth is determined by the height of the figure: the line from its base - "neck" - to the central top. Double bottom The pattern is very similar to the one described above. It is also a figure that changes the direction of the trend. This pattern predicts subsequent price increases. Minimum expected height: figure height. The ideal buy point is when the bottom line is broken. Those who do not want to take risks can wait for the price to fix on this line. Flag The entry point and trend direction are important for this pattern. In general, this pattern is similar to a channel, but its complete formation can be said only after the trend line is broken. "Bullish" Flag is formed in the course of breaking the uptrend line - where you should look for a purchase - and as a result continues it. Pennant Also called Symmetrical Triangle. Within this figure, the price movement "fades" - the oscillation frequency decreases. At the same time, the pattern is preceded by a strong price movement - in the “bullish” variant - growth. After the complete formation of the figure, the growth continues. Wedge The pattern forms at the highs of the uptrend and continues it. The boundaries are the support and resistance lines. The moment when the price breaks the resistance line can serve as a signal to open a trade. The amount of mining in this case is determined by the "height" of the base of the figure. “BEARS” patterns are patterns that precede a price drop and indicate the possibility of opening a sell trade. Descending "Triangle" Such a triangle is formed by a descending resistance line and a horizontal - support. "Getting" into this figure, the price as a result changes the trend from upward to downward. Selling in this case is worth waiting for the price to fall behind the support line. Head and shoulders It is formed at the local highs of the chart when the price moves in an uptrend. After complete formation, the price can be expected to fall by the size of the pattern height. In this case, it is better to sell immediately after breaking through the base line or after fixing the price on the line. Double top As in the case of the previous example, this pattern indicates a probable change in the downtrend and opens up an opportunity to open a sell trade. For this it is worth watching when the price reaches the bottom line. After that, the price is expected to fall at least by the size of the pattern height. Flag In case of formation of the “Bearish” flag, the price is in a downtrend. We can say that it falls into a channel, which can be perceived as a correction to a fall. Then the price drops below the support line - which is the entry point for selling. Pennant As in the “bullish” variant in an uptrend, the Pennant is characterized by the presence of a “shaft” - a strong impulse. In this case, the price has fallen. After which the trading volumes decrease and the price fluctuations become less. The complete formation of the pattern can be considered completed after the price breaks the resistance line and continues the downtrend. Wedge The “bearish” wedge literally reflects its “bullish” variant - it forms at the highs of the chart in a downtrend. The deal is opened when the price breaks the support line. We talked about the BASIC patterns in the Forex market. But, of course, not all of the existing ones are listed here. It is important to understand that patterns are not 100% guaranteed to rise or fall in price. There are many non-standard options for forming patterns and reading the chart. However, knowledge of the patterns can help in the technical analysis of FOREX charts. What patterns would you like to know about? Write your suggestions in the comments, and I will take your opinion into account when I prepare the next article.
Education
by Lingrid
43
Contrarian View - Bitcoin Overbought - About to Crash Hard - 8kI'm going to put this out there, like I often do. I don't see this recent Bitcoin move as a breakout. Yet. $12,500 must be breached AND confirmed on the daily. As you know this requires (2) two candles, (1) one to break above and (1) one to stay above that area which is currently huge overhead resistance. Also. See that slightly downward sloping BLACK trend line? Yeah. We have NEVER confirmed a break above that since Jan 2918! Yeah that's right. 2018. Almost (2) two years! Yes, we have broken above. But, NO, we have not ever confirmed with a second candle on the daily. This statistic is extremely important to note. My feeling (and I could be completely off on this), is that the U.S. stimulus resolution does not get passed today, OR some other negative news is revealed, and the market collapses by close of business tomorrow. As you know, Bitcoin has been correlating it's moves tightly with the broader market. If we do start to move down, target area remains at $8000 as I charted in September. Though, we may not hit 8k by the end of November. This U.S. election crap/confusion could move us all the way into the Jan 2021 time frame. This is just my gut prediction. Too early to call at this point. But I thought I'd throw this idea out there as a contrarian possibility for you all to consider. We'll know by tomorrow for sure. And if I am wrong, I'll be publishing a whole new chart. At that point, I see 17k+ in the charts by Jan. As for me, I remain mostly in cash at this point until the market reveals which way it will go. Best of luck traders. Be safe! A lot is up in the air. A lot is at steak. And there are a lot of unknown variables which could rapidly change at any moment. So, please be careful.
COINBASE:BTCUSDShort
by stewdamus
1
Does GBPAUD drop from here??HTFs - Right at the 3rd touch of a daily expanding formation approaching and breaking highs very correctively. This larger structure could be acting as a continuation from the previous bearish momentum. LTFs - Price becoming more and more corrective approaching outer structure and highs signalling sellers coming into the market. Price could reverse from here for some nice shorts. It's also possible that the overall expanding pattern could mean more upside.
Short
by Black_Magic_Capital
Got my eyes on EURAUDHTFs - Larger sideways range formed on daily timeframe following a significant move down on HTFs. Price action near the top of HTF structure for momentum to possibly kick in and push price down. LTFs - Patterns within patterns. Larger ascending channel approaching highs and outer structure. This ascending channel broke to upside and now looks to be forming a pattern extension with corrective price. Definitely one pair I'll be following going into next week. Have a great weekend!
Short
by Black_Magic_Capital