Get started

Chart Patterns

Understanding Trends: Indicators, Trendlines, and PivotsIn this video I describe trends, what the are, what a proper trend should look like and ways of indentifying a trend. I cover the following tools to identify trends: Trendlines (with consistency) Internal Trendlines Indicators: Linear regression, EMA, Channels/Bands Pivot swings I think no matter how YOU define a trend, it should be the following things: Consistent Measurable - so you can analyze it later Fit your trading style I hope you learned something new in this video. Please drop a comment if you like the content.
AMEX:SPYEducation
by JoeRodTrades
Education chart - SIMPLE ZIGZAGS in WXY DOUBLE ZIGZAGI started to assemble own ibrary of ElliottWave patterns and rules. Here simple zigzags occured in: wave W and wave Y of WXY double zigzag Zigzag 1 - wave W Wave A - leading diagonal Wave B - double zigzag Wave C - ending expanding diagonal ending at the top line of the parrallel channel Zigzag 2 - wave Y Wave A - impulse Wave B - double zigzag Wave C - ending expanding diagonal ending at the middle of the parrallel channel ----------------------------------------- ## Rules for Simple ZigZag - Subdivide into three waves. - Wave A is always an impulse or leading diagonal (expanding or contracting) - Wave C is always an impulse or ending diagonal (expanding or contracting). - Wave B is any corrective pattern. - Wave B never moves beyond Wave A start - Wave B always ends in Wave A territory - Wave A and C cannot be both diagonals of the same type (contracting/contracting or expanding/expanding), other combinations are possible ## Norms - Waves A and C are frequently impulse waves but even more often they alternate between impulse and diagonal modes. Waves A and C may occasionally alternate between contracting and expanding diagonals - Waves A and C cannot be diagonals of the same type - Wave C must travel past Wave A's top. In Elliott Wave Theory, failure to do so is referred to as truncation - Wave C should not go below 90% of Wave A ## Guidelines - Wave C is typically equal to 0.618 (occasionally 1.618 or 2.618) of wave A - Wave B typically retraces 38-79% of Wave A - in case B is a triangle it retraces **38-50%** of Wave A - in case B is a running triangle, the retracement can be **10-40%** - in case B is zigzag, the expected retracement is **50-79%** - The parallel channel that connects Wave A's start and Wave B's finish may provide a hint of where Wave C might conclude by extrapolating the other line from Wave A's end - If waves A and C are both strong, wave C will reverse at the channel's top line - If wave C appears weaker than wave A, it may reverse at the channel's middle - If Wave C performs stronger than A, a double channel will be used as a target of the reversal point. ## Occurs in Wave 2 Wave 4 (unless happened in wave 2) Wave W, Y of WXY double zigzag Wave W or Y of a combination Wave B of ABC flat Waves 1, 2, 3, 4, 5 in contracting diagonal Wave B of ABC zigzag Wave X of WXY double zigzag
TVC:USOILEducation
by Fomenka
3
How to use Fibonacci Retracement ⁉️‼️ Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels. After a significant price movement up or down, the new support and resistance levels are often at or near these trend lines . Usually the price retracts to 50% or until OTE (0.62, 0.705, 0.79) before another impulse movement occurs.
OANDA:XAUUSDEducation
by Snick3rSD
2
CHOCH vs BOS ‼️WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
What is Confluence❓✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification ✅Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD
A Renko Trading Strategy with Multiple Indicators (Update 3)An update from the last summary: Stating the obvious but the recurring pattern did not play out. This was a painful past couple of days but some realizations that I will walk through here for anyone who may be on a similar journey or realizations. “Buy high and sell low” or “buy support and sell resistance” are simple words to speak, to walk through in back testing, but, in the heat of the moment with live data and markets unfolding in ways you weren’t expecting make these phrases an near impossible accomplishment. As for the chart setup, I’ve with the following for the Renko WTI/CL chart: 25 tick block size and a 15-minute timeframe (more on this later) DEMA at 12 and 20 MA at 20 with a 9 period (or block in case of Renko) WMA Stoch of 5,3,3 and 25,3,3 DMI of 5,5 Bull Bear Power at 25 (this is new and seems to provide good insights) Wednesday and Thursday had me watching the Renko charts waiting for an opportunity to go short (remember, my trading style is to buy either Calls or Puts as near to the money as possible and at least 3 to 4 months out). From the patterns I saw on the Renko, I firmly believed that the market was ready to sell off and I wanted to be in. As an aside, I cap my losses at 10% of the price I pay for the option. In my losses this week, I realized that my strategies for every period of time that I’ve tried to trade had basically been a breakout trader. It wasn’t that I made a definitive statement of “Hey, my methodology is that of a breakout trader” but more like “Hey, I need to see confirmation of the price movement before I enter”. The problem is that the confirmation I was looking for was well after price had started moving and, as I looked at it, it was what could be classified as a breakout. And it was in my 3rd loss for the week, that I realized what I was doing wasn’t working. Sure, I could find points in time where it would have seemed to work but not this week. As closed out my 3rd loss, I read back through some items I had highlighted in the “Pivot Boss” book referenced earlier and in it found the pages were I had marked up the callout that you have to buy at support and sell into resistance if your going to succeed. It seem intuitive but in reality, it goes completely against my nature while trying to find an entry point with live data flying by. By now, if you’ve read this far, you may have picked out some items that resonate with you or you may be finding this as a serious source of entertainment :D For the discussion that continues, you’ll need to reference the previous article I wrote to see the specific charts before the price action on Thursday. The following link will give you view of how price played out. The red rectangle outline on the chart is where I was looking for price to repeat a similar pattern noted in the related article. How simple (and unrealistic) could this be. What played out was a price movement that I didn’t know how to handle and took me some time to figure out where to get in. As price continued to go up, I realized this was where I would usually just try to get in and then, I would get in at a intra-day high, have price pull back and 10-20% of my option value hit and I’d be out just to watch the market reverse. So, on this day, I resolved myself not to make a trade unless I could figure out this “buy support and sell resistance” thing. In my resolve, I agreed to some points: I will only buy at support and will sell into resistance: (the hardest concept known to man, not in understanding but execution) The key must be in the Camarilla Pivots so use them and the system that is outlined in the book. Or, as close as you can with how you want to trade. Renko chart setting will stay at 25 ticks for a block size and 15 minutes for a timeframe. What does this mean for Renko in TV? It means that price of a 25 tick increment must be held for 15 minutes before the block is committed or printed. Because volume profile and camarilla pivots are not a natural fit on the Renko charts, I’ll create a candle chart side-by-side to the Renko chart and then place all of these indicators on it. Additionally, all of the mark-ups I do for projecting the volume area on the chart and the opening range will be done on the candle chart The Renko chart will continue to have the indicators I track on it but they will be for confirmation and helping to form an opinion of the market and nothing to do with entry or exit. Remember, I want to buy support and sell resistance and not breakouts. I wanted to have multiple periods of levels on my candle chart so I included 3 sets of camarilla, a daily, weekly, and monthly set of levels. The next big decision I had to make was the timeframe for the candle chart itself. After much experimentation and debate with myself, I landed with the following: Start with an hourly chart. The first general notion of entry and if at support or resistance will come from the hourly chart. I will continue with my volume area and opening range markup but it will be for a weekly timeframe. Meaning that the volume profile indicator is set to weekly and I use the first 5 hours of the week to set the opening range. From these markups I’ll create an opinion of the coming week and a trading plan based on what I see. Then, I’ll let price movement between the camarilla pivots prove out my opinion or lead me to adjust it. Once I find a potential trigger, I will switch the 1hr candle chart to a 5 minute candle chart and look for candle setups to trigger the actual trade. What do I use for triggers and how to I decide where to look? The following chart is a bit of an eye chart but you get the idea. With the 3 camarilla pivots plus a year pivot, you can see the various levels. While it may seem like a confused mess, there is some method to the madness. The Camarilla pivots in TV allow you to color code the levels plus set the size or pixel width of the lines of the levels. For all periods, I set the pivot to black, R1/S1 and R2/S2 to purple and then based on the book’s recommendation, R3/S4 to red, R4/S3 to green, and R5/S5 to blue. For the daily, week, monthly, and yearly pivots, I set their pixel width to 1px, 2px, 3px, and 4px respectively. This is how I get a visual clue on what timeframe price is approaching (by the width) and the type of triggers or market behavior I should be looking for based on the color. I will use the weekly, monthly, and hourly pivots to look for price levels of support or resistance. It will be at these levels that I’ll look for price action to provide insight as to what the market wants to do with the level (there is a good discussion in the “Pivot Boss” book on identifying candle patterns that distills a lot of complexities of endless chapters of concepts into a few simple ones in one chapter). Once I see some type of candle pattern on the 1 hour chart that could indicate a trigger to enter, I change it to a 5 minute chart to find a pattern in the price movement of the next candle to make the entry. In theory, this should provide me with an entry at support; don’t wait for a confirmation via a breakout. So, why mess with the Renko charts then? Fair enough of a question; I believe that the Renko chart setup will filter noise out of the view and provide a cleaner view of support and resistance lines due to the nature of its makeup. If you follow along with any of this in your own charts, you will begin to see that the pivots begin to form identifiable lines of support and resistance in the Renko chart. And, back to the point that the Renko setup I have with the specific indicators and their settings seem to provide a good path toward confirmation of trends and positions. Another key issue I was struggling with was how to correlate the Renko chart with the candle chart. This is where I came up with the 5-minute chart which, after thinking about it, I realized that the 5-minute chart would reconcile nicely with the 15-minute Renko chart. If you look at how Renko charts are printed, they will print on the time frame that you set so, if a brick prints, it should do so on a :15-minute boundary. And, the 5-minute candle will correlate to it. The next chart shows the Renko with the 1hr candle side-by-side with the same rectangle. The rectangle on the 1hr is a reasonable estimate but squarely in the middle is an interesting candle formation that happens to be near the daily S5 and the weekly R1. I looked at this for awhile in real-time and thought, how do you really decide to make this trade? It seems like price has moved further from the trigger before you have the nerve to pull the trigger on the trade. Plus, if you look at the DEMA on the Renko at this time, it’s still set bearish with 20 above the 12 and the -DI was still swapped above the +DI. All things I’ve used in the past and now causing paralysis in pulling the trigger in a “buy at support” trade. The next is the same chart setup but I’ve switched to the 5 minute view and have adjusted the red rectangle in the candle chart a little. The candle chart shows the boundary of the lowest red brick, the one red brick to the left and the two green bricks to the right. In this price action, candle on the one hour chart (engulfing is corroborated by the extended wick of the green brick that is the first reversed color in the down move. However, with the DEMA swapped bearish, what would lead you to look to buy on this. There are valid cases where price continues down from the one green brick. This is where the importance of the camarilla pivots along with the 5 minute chart come in. With the engulfing candle on the 1-hour chart and the green brick on the Renko, what I should have done is use the 5-minute chart with the various pivots to find support and candle patterns to enter the market long. This would have been fulfilling the mantra of “Buy Support; Sell Resistance”. The following chart zooms in to both the Renko and the 5-minute candle in hopes to show details of how to get from potential triggers to confirmations and physical entries with tighter reins on the stops to guard more on the ‘Hope this will work’ strategy. By using the 15-minute Renko and the 5-minute chart, I can now see exactly what’s going on in the Renko bricks to get a better feel of what the market is doing. The blue double arrow on the Renko correlates with the 5-minute candle. With the first green brick being a trigger, then the key is to look at what is going on once that brick prints to see how price behaves around the Camarilla pivots. The green dashed line is the time that the first green brick printed (committed, good to go). So, what is important is to now watch the price to find a setup to enter. Or we see the market push through the support of the camarilla pivots that are in close proximity and begin the search for an entry short. The chart below is zoomed in even more on the candle chart with the daily Camarilla S4 which, from a daily context, is the last level of support before more sellers hop in and drive price lower. I’ve outlined this pivot in a green rectangle and here you can see price action and find some interesting setups. I’ve put some black arrows at some of the more interesting candles and those which are probably some type of reversal patters of 2 or 3 in nature. I’ll end this here but have more in my notes that I’ll include in a future update.
NYMEX:CL1!Education
by mxb1961
Double Top & Double Bottom (EDU)💡Hello, today I would like to introduce you (although I'm sure many of you are familiar) with such technical analysis patterns as double bottom and double top! They are often encountered in the cryptocurrency market: both in Bitcoin and in various altcoins. Trading double tops and double bottoms is a commonly employed strategy in technical analysis by traders aiming to identify potential points of trend reversal in financial markets. Here's a guide on how to execute trades based on these patterns: 🧐Recognize the Double Top and Double Bottom Patterns: 🔺Double Top: This formation occurs following an uptrend and features two peaks around the same price level, separated by a trough. It suggests a potential weakening of the uptrend. 🔻Double Bottom: This pattern develops after a downtrend and includes two troughs around the same price level, separated by a peak. It indicates a possible weakening of the downtrend. 🔹Confirm the Pattern: Seek confirmation of the pattern through other technical indicators like volume, trendlines, and oscillators (e.g., RSI, MACD). Additional signals can enhance the reliability of the pattern. 🔸Entry and Exit Strategies: Entry: For a double top pattern, consider entering a short (sell) position when the price breaks below the trough between the two peaks. For a double bottom pattern, consider entering a long (buy) position when the price breaks above the peak between the two troughs. 🔴Stop-Loss: Always set a stop-loss order to mitigate potential losses. Place it above the double top (for short positions) or below the double bottom (for long positions) to safeguard your trade. 🟢Take Profit: Determine your profit target considering factors such as the depth of the pattern and overall market conditions. Support and resistance levels or Fibonacci retracement levels can serve as potential profit targets. ▪️Risk Management: Employ proper risk management techniques, such as position sizing, to safeguard your capital. Avoid risking more than a small percentage of your trading capital on a single trade. ⚫️Timeframe Considerations: Double top and double bottom patterns can manifest across various timeframes. Shorter timeframes (e.g., 1-hour, 4-hour) may present more opportunities but are also prone to false signals. Longer timeframes (e.g., daily, weekly) may offer more reliable signals but fewer trading opportunities. ❌Watch for False Breakouts: Be vigilant for false breakouts where the price briefly breaches the pattern's neckline (the level between the two peaks or troughs) before reversing. False breakouts can occur, so closely monitor price action. 🧐Practice and Analysis: Backtest the double top and double bottom patterns on historical data to build confidence in your trading strategy. Continuously analyze your trades and adjust your strategy as necessary. 🤓Combine with Other Indicators: Consider integrating other technical indicators like moving averages, Bollinger Bands, or Fibonacci retracements with double tops and double bottoms to enhance your trading approach. Remember, no trading strategy guarantees success, and there are inherent risks in trading financial markets. It's crucial to have a well-defined trading plan, manage risk effectively, and maintain discipline to achieve success. Additionally, seek advice from experienced traders or financial professionals before implementing any trading strategy. Do You often encounter double bottom or double top patterns on charts? Write in the comments!🫶 I'll be glad to see Your feedback! If You have any questions, feel free to write them in the comments. Thanks for Your attention, subscribe to stay connected!💙💛 Sincerely yours, Kateryna💋
BITSTAMP:BTCUSDEducation
by RocketBomb
3
Learning Post : Risk to Reward Ratio IndicatorThe Risk to Reward Position tool allows Traders to set the Entry/Exit points and Caclculate a long position from the Specific Point. Adjusting above and below the price level will be two boxes; Green box is for the profit zone and Red Box is for the Loss zone. The zones are manually adjusted as the Traders to change the Risk/Reward Ratio. This is an Important Tool to Practice your Risk / Reward Ratio for the Particular Strategy 👍
NSE:MARUTIEducation
by Himanu_HATradeTalk1
How to win a PROP FIRM? Some life-changing trickSome people asked me a system to win prop-firm challenge and be funded. I decided to share some mind blowing trick that can really let you win your first prop firm and became really, really profitable. Lot of people ask lot of money for this, i am just asking a like, a follow and your support. So, let's start with some trick: - If you have a $10.000 account, what lot size will you use? - Most traders use 0.50/1.0 Lots a trades. Let me say, especially if you are a beginner, that this is wrong and you will fail 100%. Why? Because it will be really hard for you to manage emotions and be accurate. I know, some systems use 1:3, 1:6 or above R:R and you can also have a 30% win rate to be still profitable. I know that, i know how to increse accuracy, i know the best level to enter, the inducement entry, the high accuracy setup and most of the shit you can find online. But let's be honest, most of the traders that start a challenge account, sucks with system and will fail. And, most important, traders that start a challenge are not professionals that can spent 8/10 hrs a day waiting for the best entry. - So what system should i use to win a challenge? - Swing. Probably, if you start a challenge, you will fail in the first week. Go swing, wait for the profits, manage the entries, and using my money management system, you can chill and don't be worried during the challenge. - What about the money management so? - I will explain you better in a new thread, if this ideas will reach at least 15 likes. - This shit is not helpful, i there is nothing new that can help me. - So, i will show you something so simple that will change your trading style in a second. I suggest you to use cTrader. In cTrader, when you open a pair, you can see market sentiment. this will show you a ratio about long/short. When you see that the sentiment is imbalanced (More than 60% are long or short) you know that you should wait and not open a trades. You will see the sentiment increasing in long or short (it will be 80/20, and probably more in the next days). I am pretty sure your analysis are agree with the market sentiment. So, if 97% of the traders loose money and, for example, 85% of traders are short, what do you think the price will do? There are high chances will go in the opposite direction. So wait, and don't be worried to miss a profitable trades. Every trader is thinking exactly like you. Sentiment is telling you that. They will loose money at 97%, do you? I have lot of trick more that will really help you win a prop firm, and be profitable. Support and follow me and i will reveal more
Education
by SaliJournal
Stock Market Logic Series #9Two Daggers Buy Pattern EXPLAINED This is a super powerful pattern for a buy. Especially if you are a value investor. What do you want to look for? 1. You must see TWO daggers to the downside. A dagger is an extremely abnormal drop in price with a HUGE volume. You want to see the first dagger, and then pray for the price to continue falling at a normal rate. Normal rate = people are trying to pick the bottom (without success). Then you want to look for (wait = put alerts) for the SECOND DAGGER. Then after the second dagger arrives and you get a second sharp drop in price, then you want to expect a rejection up and a new strong trend up should emerge. 2. Exterme volume on the daggers! Ideally, you want the volume of the second dagger to be bigger than the first one. This means that someone is loading all he can get since he KNOWS KNOWS KNOWS that the price is going to get higher for sure. I bet you would have done the same... if you KNOW KNOW KNOW its going UP! This pattern does not happen all the time, and it is more likely to happen near the end of a bear market. But prices get so unreasonably cheap, that its obviously for fundamental reasons that they are wrong! so someone who KNOWS will take all the money he can get to load into this stock at this price.
NASDAQ:METAEducation
by ZoharCho
Falling wedge aka continued patternThe formation of any triangle is a direction indication relevant to where you find it as some can be a warning if reversal. The market moves in grids(zones). Relevant to sentiment of traders and news. It always moves in wave 🌊 and in those waves we have patterns like ABCD resumption. Failure swings💰👃, 🐂 bullish breakouts, traps ECT. The thing is impulsive moves is where you want to be even though it may be a correction. The thing with that is only with rising wedge patterns that are confirmed by long wicked 🔨 that indicate a move to the downside and this is like I said the day being under pressure from all the wicks formed by sellers and buyers showing no strength or news keeping it suppressed. This is your classic break and retest strategy. Like I said the money is in the trend and the impulses is always where you want to be mostly breakouts from levels continuing with the direction of the day - down to MN if you that good. The SL of the pattern invalidates the idea and if any near term trails can be hit we get even better low entries. Remember your idea is only invalid when it doesn't hold weekly and MN TF key levels. This can also be seen by the RSI as it shows the strength of candlesticks relevant to highs and lows of the sessions. Risk management is key especially if you have an account from 2$-100$. We only increase size when the accounts over 250-500$ which will give you a chance at playing 0.05 not saying it isn't possible at 70$ but you risk blowing it faster than a single 0.01 that just loses 1-5$ depending how the setup looks. If you feel like it won't work the SL should be 100 pips of not 10-50 pips which is 0.30cents to 0.72c$ Entry will be a breakout. And anything playing and rejected in that area can be waited for a signal to go long. Obviously if you don't have money to blow on risk like a 0.01 and lose 20$ in one go than don't. You risk smaller that's why we wait for lows or zone to enter example 0.01 and a lose of 2-4$. You can always trade gold with a small amount and turn it to a lot thing is it will kick you out if you dont take profits or secure them in positive SL of 1_5$ The TP is usually the inside of the pattern or the impulse before. Remember wave move in 5-1-2-3-4 and five. 2-correction can't be a triangle so it's usually rectangle 4- correction Triangle 📐 and it moves up 3-the largest impulse bigger than wave1-&5, but never small than 1 1impulse can be an extension (1-2-3-4-5 wave in wave one ), 5 can be the same as ones length Now the thing about waves is the counting that gets difficult especially if the complex corrections. Therefore for m30, you play the day and if it doesn't hit one target or the second you positive SL and wait for better entries. Gold can make you bank if you play it right, I mean risk manage your account to small losses and close large ones you can always enter again another place a ladder positions. Please like if this education is helpful 🙏
FX_IDC:XAUUSDEducation
by GCGoldenCircle
2