TSM BEARISH CRAB PATTERNHere is why I think we have a perfect bearish crab pattern on weekly time frame on TSM which gives us a huge short opportunity. Please let me know what you think in the comments section...
Bearish Crab
Mastering Bullish & Bearish Crab Patterns - Entry, SL & TPs LevlHarmonic patterns are integral to technical analysis in financial markets, and the Crab pattern is one of the most distinct among them. Both bullish and bearish Crab patterns provide precise trading opportunities by indicating potential reversal points in the market. This article delves into the structure, identification, and trading strategies for both bearish and bullish Crab patterns.
____________________Bullish Crab Pattern_________________________
Structure and Identification:
A Bullish Crab pattern is a reversal pattern that signals a potential bullish reversal at the end of a bearish trend. It consists of five points labeled X, A, B, C, and D, forming distinct Fibonacci retracement and extension levels:
XA: The initial move from X to A.
AB: Retracement from XA, typically 38.2% to 61.8% of XA.
BC: Retracement from AB, typically 38.2% to 88.6% of AB.
CD: Extension of XA, typically reaching 161.8% to 224% of XA, and is the longest leg.
Entry, Stop Loss, and Take Profit Levels:
Entry: Place a buy order at point D, where the CD leg completes the 161.8% to 224% Fibonacci extension of XA.
Stop Loss: Set just below point D to safeguard against potential false breakouts.
Take Profit: Use multiple levels:
TP1: 38.2% retracement of the CD leg.
TP2: 61.8% retracement of the CD leg.
TP3: Point C level.
_____________________Bearish Crab Pattern_________________________
Structure and Identification:
A Bearish Crab pattern signals a potential bearish reversal at the end of a bullish trend. It mirrors the Bullish Crab pattern with the same Fibonacci retracement and extension levels but in reverse:
XA: The initial move from X to A.
AB: Retracement from XA, typically 38.2% to 61.8% of XA.
BC: Retracement from AB, typically 38.2% to 88.6% of AB.
CD: Extension of XA, typically reaching 161.8% to 224% of XA, and is the longest leg.
Entry, Stop Loss, and Take Profit Levels:
Entry: Place a sell order at point D, where the CD leg completes the 161.8% to 224% Fibonacci extension of XA.
Stop Loss: Set just above point D to protect against potential false breakouts.
Take Profit: Use multiple levels:
TP1: 38.2% retracement of the CD leg.
TP2: 61.8% retracement of the CD leg.
TP3: Point C level.
Conclusion:
Crab harmonic patterns, whether bearish or bullish, provide traders with high-probability reversal signals by leveraging precise Fibonacci retracement and extension levels. Correctly identifying these patterns and setting appropriate entry, stop loss, and take profit levels are crucial for capitalizing on their potential. As with all trading strategies, it's essential to complement harmonic pattern analysis with other technical indicators and sound risk management practices to enhance the chances of success.
Bearish Crab Visible on the Crypto/Blockchain ETFBLOK is an ETF aimed at holding many Crypto and Blockchain related stocks, some of its top holdings include COIN, MSTR, MARA, RIOT, and SBI Holdings. There was a time in late 2021 where it had topped out at the PCZ of a Bearish Gartley/Bat confluence zone depending on how you plotted it and it has since gone down over 66%, however in recent months, we've seen the price of the stock begin to recover as it has made a 38.2% Fibonacci retracement from the all-time high to the most recent lows. The original level it bounced from was the 0.886 of a Bullish Shark, however we may now see this shark turn into a Bearish 5-0 as the 0.382 aligns with the PCZ of a more local Bearish Butterfly and this could result in BLOK making a lower low and would overall be a more profitable and slightly indirect way to get bearish options positioning on Coinbase and Microstrategy without buying into the overpriced puts of the underlying assets.
I will leave an link to the previous 2021 bearish setup on BLOK which resulted in the top for reference as well as a link to the bullish setup that has just played its course on COIN in the related ideas section below.
Bullish Outlook with Retest OpportunityIf you caught the short opportunity on the previous Fib3 Bat I mentioned months ago, congrats on the 836 pips (~8,360 USD/lot) gain! (Link to related analysis available in post)
My overall stance on USDJPY remains bullish. For those eyeing buying opportunities, keep an eye on the daily chart for a potential market retest at 142.47 (refer to the left chart).
What's your strategy or trade plan for USDJPY? Share your thoughts below!
Convergence of PatternsTraders, I've spotted a compelling shorting opportunity on AUDCAD, presenting itself differently across various timeframes.
Specifically, the daily chart indicates a trend trading setup, showcasing the convergence of both the Bearish Shark and Bearish Crab Patterns in the same region.
My strategy involves waiting for the market to reach the 0.9000 region before considering engagement. At this level, I anticipate price action traders joining in, amplifying the trade potential.
What are your thoughts or trade plans for AUDCAD? Share your insights or potential strategies below!
Other see this as Coal, I see this as DiamondA retest of previous resistance on the daily chart combined with a strong bullish candle movement (an engulfing candle) is an intriguing setup. The observation of RSI Divergence at these levels serves as a significant indicator for a potential reversal.
Regarding the recent deviation from the PRZ zone of the crab pattern on AUDUSD, it seems it hasn't reached the HOP (Harmonic Optimal Price) level before reversing. This deviation could be a point of interest for observation on the H4 chart.
Your decision to take an aggressive shorting opportunity due to the attractive profit factor is noted. However, as you rightly mentioned, managing risk is crucial in such trades. Wishing you success in your trade management and strategy execution!
Technical Analysis of GBP/USD - Bearish Crab PatternHello traders,
I would like to do detailed technical analysis of GBP/USD currency pair and the potential presence of a bearish crab pattern. The bearish crab pattern is a harmonic chart pattern used by traders to identify potential reversal (correction) points in the market. Let's examine the key aspects of this pattern in GBP/USD, including the retracement levels and extension ratios.
Bearish Crab Pattern Overview:
The bearish crab pattern is a reversal pattern that typically forms after a strong bullish trend. It consists of four key points: XA, AB, BC, and CD. In the context of GBP/USD, the pattern has the following characteristics:
1. AB retraced XA by 0.598:
The first part of the crab pattern is the AB leg, which retraced the XA leg by 0.598. This retracement level indicates a moderate pullback after a strong initial move.
2. BC retraced AB by 0.799:
The BC leg of the pattern retraced the AB leg by 0.799. This level of retracement is deeper than the typical Fibonacci retracements, suggesting a more substantial correction.
3. CD is an extension of BC by 3.172:
The CD leg is an extension of the BC leg by a ratio of 3.172. This means that the final leg of the pattern extends significantly beyond the BC leg. A 3.172 extension is a common feature of the bearish crab pattern and signals that the reversal is likely to be strong.
4. CD terminates at 1.24285:
The CD leg terminates at the price level of 1.24285. This is a crucial point for traders, as it is where the pattern suggests a potential reversal in the GBP/USD pair.
Technical Analysis and Implications:
The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics is a bearish signal. I will be considering the following implications:
1. Reversal Signal : The bearish crab pattern is a reversal/correction pattern, suggesting that the bullish trend in GBP/USD may be losing momentum, and a bearish trend could develop.
2. Resistance Level : The termination point of the CD leg at 1.24285 serves as a significant resistance level which emanated from the rejection of price on the 11th and 12th of October. Having seen a bearish engulfing candlestick pattern at this zone, we anticipate reversal around this price.
3. Stop-Loss and Take-Profit Levels : We are setting 1.24550 as our invalidation zone, while our potential profit areas are 1.22990 and 1.22400 respectively.
4. Confirmation : This pattern is further confirmed by our elliott wave count. The reversal point seems to coincide with the end of impulsive wave 3, confirming that the drop may be a wave 4 correction. And if wave 4, our target should not be big (maybe 1.23006) as the trend is bullish.
Conclusion:
The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics suggests a potential reversal (correction) in the bullish trend. We have seen further confirmation using Elliott wave and price action analysis, but remember no trading idea is foolproof hence the need to manage risk properly.
Cheers!!!
Chart to EW Analysis:
Potential Bearish Setup on Weekly ChartAs anticipated, the Bullish Shark Pattern has initiated its move on the Weekly Chart—a prediction I shared as early as October 8, 2023. For visual confirmation, refer to the chart within this Trading View post.
Now, attention shifts towards the potential emergence of the bearish 5-0 pattern on the Weekly Chart.
On the Daily Chart, there's a convergence of Bearish Shark and Bearish Crab Patterns, both culminating at the same completion level, 0.9015. This sets the stage for a potential shorting opportunity upon market retest at these levels.
Alternatively, consider a shorting opportunity on the 1-hourly chart, targeting the retest of the resistance level at 0.8908.
The pivotal question arises: What's your trade plan? Your insights carry weight. Please share your perspective below!
Potential Short-Term Bullish MomentumThe GBPUSD is currently exhibiting a Weaker Bullish Trend on the Weekly Chart.
Upon closer examination of the Daily Chart, it appears that the completion of the Bullish Shark setup may have eluded us. The current resistance level holds pivotal importance. A close above it would prompt traders to await a buying opportunity. Conversely, if the market respects this resistance, the formation of a double top might signal a shorting opportunity.
For those inclined towards a shorting stance, my focus lies on the formation of a double top pattern at the Bearish Crab Pattern, projected at 1.2441 on the 1-hourly chart.
I'm curious about your perspective. What's your take on the GBPUSD? Please share your insights below!
Amazing Shorting OpportunitiesUpon careful examination of the chart, it's apparent that the majority of retail traders are poised for a buying opportunity, making any talk of shorting seem unconventional.
Yet, a different perspective emerges upon closer inspection.
Observations:
I've discerned indications that suggest a contrary approach may be prudent.
Trading Strategy:
I'm personally awaiting a shorting opportunity on the forthcoming completion of the Bearish Crab Pattern, projected at 1.3926. This stands in contrast to the previous crab pattern, offering a fresh tactical choice.
For those still inclined towards a buying stance, a retest of the trendline on the 1-hourly chart might present the awaited opportunity.
Now, the crux of the matter: What's your call? Your insights carry weight. Please share your perspective below!
Navigating Bullish Momentum Amidst Potential Caution SignsIf you caught my last week's analysis, along with the accompanying article on Trading View, you can dive deeper into the details by clicking the link.
In my previous analysis, I emphasized the significance of waiting for the Bearish Crab Pattern confirmation on the Daily Chart before considering a shorting opportunity.
Now, let's delve into why this is crucial:
It enables you to distinguish between astute analysis and a sales-driven approach often seen in the financial world.
If you happened to miss the initial shorting opportunity, there are three viable options to consider:
Option 1 : A retest on the Bearish Crab Pattern on the daily chart at 150.43, presenting another potential shorting opportunity.
Option 2 : A retest on the Bearish Shark Pattern on the 4-hourly chart at 150.45. These levels may appear close, but they entail different timeframes for trading confirmation.
Option 3 : You might opt to await a retest of the trendline on the 4-hourly chart before engaging in this counter-trend trade.
The critical question now arises: Which of these three options aligns best with your trading strategy, and why? I'm eager to hear your thoughts. Share your insights below!
Netflix: Bearish Crab with Bearish ConfirmationNetflix recently traded just above the HOP level of a Bearish crab and has since gapped down below the 1.618 PCZ and given us a Bearish Divergence on all Oscillators as well as PPO Circle Confirmation. We could see Netflix begin a full retrace of the Harmonic range from here.
Cashing in on Potential USDJPY Pullback Profits!
The USDJPY pair continues its strong bullish movement, even on the Weekly Chart, reaffirming the prevailing uptrend.
Counter-Trend Strategy:
As a counter-trend trader by nature, I'm on the lookout for shorting opportunities.
Trade Possibilities:
Weekly Chart: A potential Bearish Fib-3 Bat pattern could offer an entry point for a pullback trade. However, I'm mindful of not waiting for excessive confirmation and potentially missing out on a 300-pip profit potential.
Daily Chart: Keeping an eye on a potential Bearish Crab Pattern confirmation at 150.43.
Intra-Day Traders: Consider waiting for the completion
of a Bearish Shark Pattern at 149.96.
I'm curious about your trade plan. What are your thoughts? Feel free to comment below.
Strong Bullish Trend for High Returns!The USDJPY is currently experiencing an upward trend. To capitalize on this trend, I plan to wait for a chance to buy at the Fib-3 Bat Pattern completion on the 1-hourly chart at 149.09.
However, it's important to note that both the 4-hour and daily charts show a Bearish Harmonic Pattern that completes at a similar level of 150.41. As such, it would be best to wait for a candlestick pattern completion before considering a counter-trend trade.
Google: Bearish Deep Crab Dark Cloud Cover Type 2 Return EntryGoogle, after its initial bearish reaction to the PCZ, has returned to the PCZ as the RSI managed to make a 3rd lower high and is set up to give us an impulsive move downwards in the coming days. We also confirmed a textbook Dark Cloud Cover today after the rejection of the ascending trend line.
I think we will see extreme downside from Google pretty soon that will undo most, if not all of its 2023 upside price action.
BTCUSD: PPO Intraday Bearish Gartley Breaking DownBTC reacted the first time to the first Bearish Gartley in price, but it failed to break down below the range and came back up. This time it looks like the Price Action Gartley turned into a Crab while the Gartley in the PPO has still held on and is breaking down below its range. Due to this, I see this as another chance to try to target below the range from here.
Kroger: Bearish Crab with an Ascending Broadening WedgeKroger has formed an Ascending Broadening Wedge and blasted pass the 1.618 PCZ leading to an ultimate test of the 1.902 HOP level, now KR is trading below the PCZ and has tested it as resistance multiple times this year and has broken below the Demand Line of an Ascending Broadening Wedge. From here out I think the target will be a minimum of $22.32 which would be the 0.886 fibonacci retrace but it could go as low as $17.37 as that would be the standard target of the Ascending Broadening Wedge.
In addition to that, the PPO may soon break below its Demand Line.
US Dollar Still Bullish📊 Weekly Chart: Bearish bat pattern suggests shorting at 149.33.
📈 Daily Chart: Bullish movement, no shorting opportunity.
📉 Four Hour Chart: ABCD pattern at 147.76, potential shorting level.
🕐 One Hour Chart: Bullish bat pattern with running profits.
🌟 Weekly Chart Insight:
- Bearish bat pattern for potential shorting.
- Waiting for confirmation at higher levels.
📊 Daily Chart:
- Bearish crab pattern at 150.41.
- Focus on 144.79 for buying opportunity.
💡 Trading Opportunities:
- Potential short at 149.33.
- Buy on retest of 144.79.
📉 Four Hour Chart:
- Shorting opportunity at 147.76.
- Consider retest at 144.62 for shorting.
🦇 One Hour Chart:
- Running profits from bullish bat pattern.
- Wait for the violation of 146.29 for resistance confirmation.
GBPJPY: Bearish Crab with Bearish Divergence Re-EntryGBPJPY sits a bit above the PCZ but still shows signs of weakness and has now broken below the faster moving EMAs, if things go as expected, it will start to get pulled back below the 1.618 and begin the greater move down from there as the Japanese Yen does better against the US Dollar than most other pairs.
Unraveling Dollar Yen's Trading MazeHey there, traders! 🌟 Let's delve into the tricky landscape of dollar yen – a setup that demands our attention. The overarching trend suggests a bullish journey, but buckle up, because there are twists ahead. 📈
News flashes about the potential Bank of Japan (BOJ) intervention and the recent wastewater stir have stirred the pot. 🌊⚖️
For the conservative trader, a week of observation might be prudent. But for those risk-savvy, why not seize the day? When big news lurks, colossal movement follows, and with the right risk management, why not chase those opportunities? 💼💰
Gazing at the weekly chart, we spot a retest at the previous high – a pivotal zone for the week. The tantalizing prospect of a break and close above this high tantalizes for a continued rally. But guess what? Immediate resistance lurks nearby. 🛑📊
In the grand scheme, to sustain a bullish trajectory, the magic number is 152.02 on the weekly chart. 🚀
Shifting to daily charts, the high gets retested with a sly RSI divergence – a whisper of counter trend play, perhaps?
Now, for the four-hour setup, a familiar pattern – retest, RSI divergence – all hinting at an intriguing possibility.
And guess what? The one-hour chart mirrors this with its own RSI divergence dance. 🎭📉
For the curious minds eager to learn trading nuances.
Now, let's revisit our trusty weekly chart and unfurl our analysis on Dollar Yen. A bearish bat pattern beckons a shorting venture at 149.40. Daily chart enthusiasts, the confirmation for crab pattern enthusiasts swings by at 150.45.
Are you eyeing a buy? Retest the immediate support at 144.65 for a potential entrance.
Zooming into the four-hour chart, ABCD pattern aficionados can keep an eye on 147.79 for counter trading maneuvers.
Buying prospects? 144.62 or 144.02 could be your calling.
Remember, when the market respects these levels and avoids sinking further, it signals the support's sturdy stance. 🏗️
And oh, the sweet RSI divergence on the one-hour chart – a touch of icing on our trading cake. Once 146.55 gets a respectful tap, I'll be diving into an aggressive counter trade. 🚀
CAH: Bearish Crab with PPO Confirmation on the WeeklyCardinal Health has traded up to a Macro Supply Line which happened to align with the BAMM Target of a Bearish Crab and from there we formed MACD Bearish Divergence and got the strongest form of PPO Confirmation, as a result I now expect that we will begin a very deep retracement back down similarly to how Strongly CVS has responded to its own topping pattern which can be seen in the Idea Below:
MSFT: Bearish Crab with Double MACD Bearish DivergenceMicrosoft has traded up to a 1.618 Fibonacci Extension and has formed a Bearish Crab with Double MACD Bearish Divergence, so long as $350 holds as resistance, I think it could go as low as about $295 to fill the gap below.
In the meantime, I have sold $350 multi-week calls.
AXP: Confirming Break Below Lead-In Trend at Bearish Crab PCZAmerican Express has broken below the Lead-In trend line and looks to be confirming a lower high below the breakdown zone, all at the PCZ of a Bearish Crab on the Weekly Timeframe.
If we get the desired performance from this we should see AXP go down about 30-60% from the current levels.
