Get started

Breakouts

Supports and Resistances : Everything You Need to KnowSupports and resistances are horizontal lines on the edges (borders) of congestion areas. The bottom line is the support: the level where buyers strength overcome sellers, and buys are strong enough to reverse the downtrend. The top line is called the resistance: level where sellers strengh overcome buyers, and sells are strong enough to reverse the uptrend. It is more preferable to create your support and resistance lines along congestion area's borders than extreme price action, since these borders illustrate the point where most traders changed their mind, whereas the extremes are only reflecting a few people panicking. Psychology Traders remember at which price they bought or sold, and this is what create supports and resistances. Support and resistance zones often switch roles: when a support is broken it will become a resistance, and vice versa. This happens because as the market makes a breakout downwards, buyers feel pain and wait for a rally to free themselves without cost, whereas sellers regret and wait for a rally to have a second chance to short. The buyer's pain and seller's regret create the new resistance. A support or resistance is going to be more significant if the preciding price action was steep rather than a slow ascending or descending trend. Volumes Low volumes around a resistance or support area indicates its fragility. Traders aren't feeling quite involved in it. However huge volumes show strength in this level. Trading Rules 1. When you are surfing a trend that is reaching its support or resistance, move your protection stop closer. The trend will reveal its health at this point: it can either go faster and your stop isn't triggered or it can bounce on the Trend line and your stop securises your profits. 2. Supports and Resistances are stronger on a bigger timeframe. Weekly charts are stronger than daily charts. This way, if on the weekly the price is flat and on the daily the price action is hitting a support or resistance then the signal is less important than if price was reaching a support or resistance on the weekly. 3. Resistance and support levels are usefull to setup stoplosses and take-profits orders. If you are buying, the lowest value in a support area can be used as a stop if you place it just underneath. Breakouts A breakout happens when the price breaks out of its trading range, but most of breakouts are fake breakouts. Be careful of fakeouts : it is more often an opportunity to position against them, with a protection stop. "Fakeouts" or "fadeouts" are when the price tries to break a support or resistance but end up returning in its trading range. How to know when a breakout is fake or not? True breakouts are confirmed by high volumes and technical indicators showing new highs or new low. Also we should be able to see the new trend on a higher timeframe. Fake breakouts tend to happen on low volumes and indicators divergences. In order to trade fadeouts, wait for price action to stop making new highs or lows. This is when prices fade. Then, place your stop on the extreme, risk is low, but chances are that price will make a pullback in its congestion zone. You liked this article? Make sure to leave like or a comment :) --------------------------------------------------------------------------------------------------- My Website - Automated Strategies with Backtest and Alert Setup blockchainfiesta.com PineScript Development, Reverse Engineering Comissions open (1 slot)
Education
by cyatophilum
3
Cardano 1h 18/12/09Greeting all. Cardano has been consolidating from the previous sell off this weekend and it might be coming to an end. The consolidation is taking form of a symmetrical triangle. Nothing fancy but they are at a pivot point so it will determine if this is a longer term rally. They broke the pattern for a few minutes right on the next hour candle so it looks like a break but was really just a sudden burst which happened on both sides so its undetermined which is stronger. Symmetrical triangles can go both ways so we have to wait for a confirmed breakout. The consolidation is quite large so we can look at a nice 3:1 risk/reward setup. Going up I'd look out at the major resistance for a possible bounce back downward if the bulls aren't strong enough. Downwards... well doesn't look like we've found the floor yet except for where the selloff ended. So keep a eye around there. I'm not a financial adviser. Trade at you're own risk.
BINANCE:ADAUSD
by Phyro
1
$NANO.OL Nordic Nanovector breaks through 2 year long downtrendWith the #ASH18 conference getting closer, Nordic Nanovector has punched through the 2 year long downtrend from the ATH in December 2016. -------------------------------------------- CEO Eduardo Bravo presented at Jefferies 2018 Global Healthcare Conference 14-15 November 2018 nanoinvestors.wordpress.com Betalutin, the lead product from Nordic Nanovector has received FDA Fast Track designation and UK Promising Innovative Medicine designation. nanoinvestors.wordpress.com nanoinvestors.wordpress.com -------------------------------------------- Market has recently been impressed by the strong performance by NOVARTIS in the field of Lutetium 177Lu based radiopharmaceuticals. nanoinvestors.wordpress.com nanoinvestors.wordpress.com nanoinvestors.wordpress.com nanoinvestors.wordpress.com
NLong
by savepiginvest
Ascending triangle pushing BTC above 7kThe price has been making higher lows inside a consolidation (trading range) for a few days now. Major trend in BTC is still down, but we do have a local uptrend since 6100. These types of consolidations inside a local uptrend are more likely to break out to the upside. The higher lows inside a range are a sign of accumulation (supply drying up, demand increasing slowly) From the classical charting perspective, this is known as an ascending triangle. It indicates what I described above. Targets (based on the resistance levels along the way) are: 1. 6778 2. 6874 3. 6929 4. 7044 5. 7144 6. 7286 (maximum projected target of the pattern) The price may get rejected at any of the targets mentioned above, so it's always a good idea to lock in partial profits at each of the targets as they get reached. The invalidation of this entire move will be a daily candle close below 6330 pivot (key) point. Measuring Risk/Reward ratio based on this pattern, it would be slightly over 1:3 (taking 6295 as a stop loss and 7286 as a max target).
BITMEX:BTCUSD.PLong
by eyupium
BTCUSD Yearly Descending TriangleSo i have been keeping an eye out for this yearly descending triangle and waiting for the right postion. I see that we have some higher lows formed but i have not been sold on the highs yet if they have played out the full move or not. I feel at this point it made its move up and we will maybe retest again somewhere near the recent high but im looking to get in a short if that happens. Lets keep an eye out for now and see. If there are any coins or patterns/indicators anyone would like me to check out please let me know! Im still trying to learn all the tools for making the charting pretty for everyone. "Long way togo" Enjoy your weekend talk with you all soon!
BITFINEX:BTCUSD
by 2Legit
Bitcoin comparison 2014 / 2018 - break up or down? decision timeI have tracked BTC/USD 2014 market movements and correlated them to the current Bitcoin chart, marking possible similarities, resistances & breakouts. The current position of Bitcoin after the recent rally is drawing closer to the upper resistance, so will BTC breakout - fakeout or drop down to the lower resistance - decision time is looming with Bitcoin maintaning it's price ranging at 6500 USD its on course for a clash with the upper resistance by Mid October at any rate.
BITFINEX:BTCUSD
by mmacwj
EURUSD D1 breakout and subsequent H1 opportunitiesSee chart for relevant explanation. These two levels offer clear markers we can use for context relative to the D1 wedge berak. The eventual break of A looks great in hindsight, but wasn't a great breakout setup. B provided a much stronger story, and exactly the sort of price action we're looking for ahead of a breakout. I'm borrowing directly from Bob Volman --> trading around these levels is highly dependent on the presence of buildup and potential for double pressure. The break at B is one of the few grade A BO setups. We expect the kind of momentum that followed because the Bull-Bear fight that went on for the prior couple of days suddenly has a total paradigm shift. The same level, at which we're experiencing directional contraction (wedging against the level), is where longs are going to be forced to sell and aggressive shorts will be looking to sell to enter (hence, double pressure).
by structuredtrader
Lesson 6A - Breakout Patterns - Falling Wedge (Bullish)Welcome back to Lesson 6 traders. I have something interesting for y'all in this lesson. This lesson is going to be a series on Breakout Patterns. I will be posting one breakout pattern at a time, so it is easy to understand, and clean enough to follow. The following lessons are going to be posted in lesser time. So in the Lesson 6 series, since there will be multiple topics for breakout patterns, I will be splitting them into Lesson 6A, 6B, 6C and so on.... In Lesson 6A, we will be going over the Falling Wedge breakout pattern. We will be looking over the criteria to qualify for this pattern, and what to look for in order to get a breakout confirmation. Falling Wedge is usually a bullish pattern most of the time. It usually is wide from the top and contracts as it moves down to the lower price levels. There are certain criteria for a falling wedge to qualify to be a reversal or a breakout pattern. Lets follow the chart above in order to get a good understanding of what I am taking about here. Actually I will post the above chart right here for you so it can be easier for you: So in the chart above we can clearly see TWO falling wedges, they both are for the same breakout that happened in TRX, so you can refer to any of them. We will go over the step again as a summary, but let us first go over the detail so you get a clear view on this. Whenever I am looking for a falling wedge patterns, I make sure the resistance line, which is the upper line of the falling wedge connects minimum of 3 candle sticks. Sometimes we can get away with 2 candle sticks, but when we have 3 connected candle sticks, meaning the price has pulled back after touching the resistance line at least 3 times, we can check off one of the criteria for a falling wedge. Now for the support line, which is the lower line of the falling wedge should at least have a minimum of 2 candle sticks touching the line, meaning the price has bounce at least 2 times after touching the support (lower) line of the falling wedge. This is considered the second criteria for the falling wedge. This just means that you have a close to accurate enough data to consider this as a reversal pattern for the selected time frame you are into. If we look closely at the chart, for the resistance line, the price has pulled back after touching it about 4 times, and 3 times for the blue support line. Notice how the price candles have not closed outside of the resistance or the support line. This is really important for a valid pattern. Since we have BTC movement effecting the altcoin prices, we can ignore the candles closing just a little outside the resistance/support lines, but mostly the price should be moving inside the wedge. Another criteria for a falling wedge is that, it starts out wide, and the wedge contracts as seen in the chart, as the price moves lower. Once we have these three criteria lined up, we have a confirmation that the price pattern is currently moving in a falling wedge. So now, all we need to do is wait for the breakout. Remember, this is very very important. In order to confirm this reversal, the price must breakout from the falling wedge to the upwards. If it breaks towards the bottom (support line), this pattern gets invalid. As we see in the chart above, the candle breaks out of the falling wedge, and the price start moving rapidly upwards. Thus, we can say that the falling wedge on the chart above is a valid falling wedge pattern. You must have understood this pattern by now. Make sure you do by reading what I have written above, and looking at the chart at the same time. Continue reading below......
Education
by MoneyChartz
7
Bitcoin Projections: Recognizing the Breakout PointsHello Traders, Going to be quick with the intro and summary here as this is a short term play and just shows where you can recognize the breakout points for a short term bull run or short term bear run. Overall Im leaning towards a correction to 8700/8600 ideally, and then an attempt over a mid term time frame to 11,600. Hope this chart helps you recognize where you can recognize critical plays/breaks and profit from them. As always, this is not financial advice and make sure to do your own ta/research. Thanks Crypto Hippo is the Name. You can find me on Youtube, Twitter, Facebook, etc. My partner and I have put together a wonderful and fast growing community in discord that brings EVERYTHING crypto to one central location. We'll be doing live streaming trades soon so come partake in the profits. Join the channel free at www.thecryptoblend.com If you bring a friend we will give you lifetime premium access for FREE! Just message an Admin when you've invited someone and will validate it. You MUST use the invite referral link at the top left of the channel when you enter, under The Crypto Blend Tab --- Invite People --- Copy Link
BITFINEX:BTCUSDShort
by TheCryptoBlend