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Breakouts

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
Cup & Handle Season: How to Spot an Invalid Cup&Handle BreakoutIt's Cup & Handle Season! There have been multiple cup and handles that have formed all around the altcoin market recently in what I am going to dub as cup and handle season. I'm out hunting for valid cup and handles and while most of them this time around seems like they will eventually be validated....it is easy to get faked out by these patterns and think the top of the cup and even the handle has already formed when in reality the cup is deeper than you originally thought and the handle has not yet occurred. I'm using Cardano as the main example here because it illustrates this fake out quite well. There ahave been a few more of these type of fakeouts around the altcoin market and I will also be posting snapshots of those as well. As you can see here, the inner cup and handle was not the valid cup and handle and where we thought it had broken the neckline a few things occurred at that point that signaled to us that it actually hadn't broken the neckline. First and foremost we didn't get a huge boost of bull volume that needs to accompany such a breakout in order for it to be valid. This volume boost should occur after 3 consecutive 4hr candle closes above the rims neckline. 2nd, we got nowhere near the top of the dotted projected price target line, and 3rd where we turned around and the price started falling back down there was a candle tip on the left side of the cup that we could connect a horizontal trendline to and form a new higher neckline of our cup making the cup deeper and the projected price target breakout higher. You always want to consider on the left side of your cup, when charting your cup and handle, whether or not there are any potential candle tips above where you are charting that could eventually be the real rimline of the cup, and keep those in mind if these kind of fake breakouts occur so you know exactly where to readjust your top trendline. Anytime you see these potential higher spots on the left side of the cup it's always wise to have a good temporary exit strategy because once you readjust the line to fit the higher candle tip on the left, you want to do it right around the time that the top of the cup has just finished forming, that way you know you can short and that some dipping in price will have to ensue in order for the handle to form, because since the new top of the cup has just been found the handle has actually not formed yet. The 2 best places to enter a position during the formation of the handle are 1. at the bottom of the handle which is usually going to be around about half the price of whatever the projected breakout price target will be, or 2. right after it breaks upward out of the handle and starts heading towards the neckline. When trying to guess where the bottom of the handle will be, keep in mind that valid cup and handle patterns handles do not dip further down than half the size of the cup, also let a few candles on the handle develop first to get an idea of the trajectory its following...once you have that take those trendlines to about half the cup and handles breakout price target is set at and odds are good you will be able to buy in very close to the bottom of the handle for optimal profits. Waiting till it breaks out of the handle is also a good strategy as well because, you don't have to spend as much time in the consolidation period as buying at the bottom of the handle which can leave you waiting quite awhile for the handles breakout to occur sometimes. The good thing about these fakeouts, is you can still make profit on them during the fakeout, and if you know what to look for you can then turn around and exit those positions until the bottom of the real handle and then continue to make profit on them. This fake out can happen multiple times on one cup as well. ..but if you know what to look for you'll be prepared & only make profits off both the fakeouts & the real breakout. Thanks for reading and good luck!
Long
by DrDovetail
2
GBPCAD Still Finding Support We last posted on the GBPCAD on March 23rd when price had pulled back to a pivot support level. 5 days on and we can see there has been little change in price. However, the positive that we can take from this is that this pivot support level is holding strong. If we look at the structure of the trend from January when priced bounced off the daily 200SMA, we can see that breather areas and pullbacks are a feature of this trend. This is why allowing a trend to establish itself is, in fact, very useful as it not only confirms a direction to the market but it also tells you want kind of trend structure you are dealing with. If it is a fast moving trend, then we enter and compound in a particular way. If it is a slow moving trend, then we enter and compound in a very different way. The GBPCAD still very much has a bullish bias to it but there are times when we apply patience and wait for price to dictate a trend continuation in the form of a breakout. This is a perfect example. We are still waiting for the March high to be broken, just as we were on last blog on March 23rd. As long as this pivot support level holds strong, and price stays above 1.8000, the chances of a breakout to the upside are very much in our favour. Patience for now. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
1hr bear flag tries a fakeout finds support inside bear flag?not a good sign to see what appeared like it was going to be a bullish breakout of the bear flag not get a follow up confirmation candle and instead turn into a fakeout falling well back under the bearflgs closest red trendline...I thought it may be breakind down under the bearflag too but now the current 1 hr candle is making it appear like the bottom trendline should be lower making the already suspiciously to skinny bear flag slightly wider and more like a normal bear flag length...just as the bull flag got wider at it's bottom now too does the bear flag. We do not wanna close the current 4 hpur below the bottom green trendline of the bull flag and we hope to see the new lower bearflag bottom trendline continue to be validated...for now I'm neutral but am putting a fractional stop loss 3-4 pips under the red bear flag should a breakout to the downside occur. A very fractional one since we are above the 50sma and in a buyers market...not a sellers market....this is only my methods and not financial advice...thanks for reading.
BITFINEX:BTCUSD
by DrDovetail
TWE Simple AnalysisThis is my first published idea so be kind. Always appreciate feedback. This is not financial advise, just my thoughts and opinions. TWE is looking good after a brief period of consolidation around the 17 mark. It has rising volume and is showing signs of a good move up early next week. Today the price moved well above the recent consolidation zone (see chart). Today's volume is still a little low for me to say it is a confirmed breakout. All indicators showing an upward trend (see chart). I will be keeping an eye on this one next week and if it continues it's move up with good volume I will be going long on TWE. Happy hunting, John
ASX:TWE
by JWB26
EUR/CHF sell updateEchf came to my first take profit which is the pitchfork at 1.618 extension of wave 1. If you did sell this breakout nice. TP half and slide stop loss on rest to 50% of this wave. It can continue to just drive down, but if you see a corrective pattern like I have marked up (about) 38% of wave look to sell again to top of diagonal where I have marked. If it breaks fork and extends this wave past the fib extension it just rejected, then that should better better confirmation that we have a downtrend in place. Hopefully it corrects and gives another sell entry. It is possible it reaches top of fork one more time, but I will not buy this unless it actually confirms an uptrend... That was a LONG consolidation it broke out of. Want to learn something about corrective patterns watch my echf video. Hopefully you saw the EJ sell setup this morning and you caught chf/jpy sell. I couldn't post earlier.
by thillygoosth