Parabolic moves breaking Chart PatternsThe rising wedge will continue until a new pattern forms.
Explains on chart
An observation
Chart patterns
GOLD buy trade setup using price action, how far can it go???It has been said ever since people were allowed to trade to "trade with the trend" and "the trend is your friend". Although there is logic to this the market unfortunately doesn't always trend and in fact spends most of its time in ranges and channels.
The market environment changes all the time and it's why so many traders struggle with their trading because they do not understand what market environment they're currently in. Price action traders can have an advantage in this regard because they want to see the structure that the price action has laid out as the leading indicator of where price could potentially go next.
As you can see from the 15 Minute chart on Gold, it has been in roughly a $22.00 range for around the last 2 weeks. Although it has been in a longer term uptrend in general, using ranges can help you a lot to work out a higher potential level to enter, while also managing your downside risk.
What we can see is a bullish head & shoulders pattern complete right at the lows of the range which can be seen on the higher time frames, why we like the position of this specific price pattern is because, not only is it pointing to the right side of the larger trend direction which can enable you to jump in on the move. You also get a location that if you are wrong then your stop loss can be placed just below the pattern which also would also lie under the range floor so you can manage smaller risk on this trade.
If you missed this setup then by being patient, price ends up showing you another opportunity with the same bullish head & shoulder pattern that completes just after the initial drive higher from the lows.
When trading any price pattern you should always wait for it to complete first without jumping in too early, but it's the higher inner trend line that we like to use (in the case of a bullish pattern) as our entry point as this can help show more strength in the pattern while also precisely showing you where to enter on the top side retest marked with green arrows.
Even if price doesn't continue in the longer term trend, you can initially target the top of the range and potentially scale out a percentage of your trade to lock in some profits.
We will be keeping a close eye on Gold and watch for any pullbacks that can allow for another bullish price pattern to form potentially indicating another opportunity for a manageable trade.
The "W" Pattern ExplainedThis pattern is very common when looking at the altcoins trading pairs (cryptocurrency).
It looks like a "W" and works only when a higher low is present.
The "W" Pattern Explained
As prices drop and a low is hit, we get the first push up, followed by a drop that ends it in a higher low which signals that the pattern is complete.
After the second push, we get a final retrace before prices resume up.
Note: Even if you spot this pattern, you still need a plan/strategy before you trade.
You need to have a stop-loss, in case the prices drop and a target to secure/collect profits if the pattern plays.
This is Alan Masters.
Thanks a lot for your continued support.
Namaste.
🔺 TRIANGLES 🔺Hello, my dear friends!💋 Let's get a little developed👩🏻🎓 Today we a talking about 🔺 TRIANGLES 🔺.
These figures 🔺 of technical analysis are distinguished by some “deceit”, therefore they are assigned to a separate category.❗
This is due to the fact, that during their formation it's rather difficult to unambiguously determine in which direction the price impulse will follow - up or down.🤷🏻♀️ Among such figures, symmetrical, ascending and descending triangles are popular among many traders.
Of great importance ❗is the trend preceding the formation of the figure.
So,🔥 if the uscending triangle was preceded by a bullish🐃 trend, then the trend will most likely not change its direction.🔥
On the picture above, the blue 💙 lines - indicate the most probable scenario of the price movement after completion of the formation of the Ascending Triangle.
In green 💚 - a slightly less likely scenario that shouldn't be ruled out.
Thus, in most cases, the “Rising Triangle” is seen by traders as a bullish pattern.🐃 The appearance of this figure usually indicates consolidation before the resumption of the upward movement of prices.❗
💥 Other features of this figure :💥
🔺the upper resistance level passes through two or more local peaks approximately equal in height;
🔺the reliability of the figure increases in proportion to the duration of the previous uptrend;
🔺the lower resistance line consists of at least two consecutive minima, with each subsequent one must be higher than the previous one;
🔺often during the formation of this figure there is a decrease in trading volumes;
🔺the moment of breaking the resistance line should preferably be accompanied by an increase in trading volumes;
🔺after breaking through, the line of resistance of the figure becomes a line of support;
🔺the approximate purpose of further price movement usually corresponds to the width of the triangle formed by the upward movement.
👉🏻The “descending triangle” is often regarded by traders as a bearish🐻 pattern:
This pattern is formed on a downtrend 👇🏻, in most cases indicating its continuation. At the same time, as we can see in the figure near, sometimes when you exit this figure, the price moves in the opposite direction.
In its features, this figure is similar to the “Ascending Triangle” formed on the bull trend and, in fact, is its mirror image.🤲🏻
The "symmetrical 🤲🏻 triangle" is a relatively neutral figure:
However, for example, if the formation of the "Symmetric 🤲🏻Triangle" was preceded by an uptrend, then this pattern will signal a high probability of continued bull dominance in the market. The same for downtrend.
💥 Other features of the figure: 💥
🔺a triangle is considered reliable and indicates a high probability of the continuation of the trend, if the trend lasted for at least several weeks before its formation;
🔺to build this figure, at least four points are needed - two for the resistance line, two more for support (a more reliable triangle is formed by six points - three for the top line, and three for the bottom);
🔺as the triangle forms and the range narrows, the trading volume should decrease;
🔺the approximate purpose of price movement is usually determined by the width of the triangle.
❗❗❗ Traders should be very careful when working with a triangle, especially with a symmetrical one. Each time when forming such a figure, two likely scenarios of price movement should be taken into account at once.
Guys, I try very hard for you💓💓, I carefully select the material, I want to express my thoughts as clearly as possible! 💋💋I like to teach, I get pleasure of it😘 !!!
👍🏻Support my enthusiasm with like!😘😘
✍🏻Write me in the comments if everything is clear to you, maybe you have any questions!🧐
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Always Yours Rocket Bomb🚀💣
My previous works!👇🏻👇🏻👇🏻
INTERESTING BOOKS 2Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
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Inverse Head and Shoulders the accurate chart patternInverse Head & Shoulder Pattern Tutorial -
Invesre Head & Shoulders pattern is similar to Head & Shoulders pattern but reversed. The inverse Head & Shoulders is observable in a downtrend and indicates a reversal of a downtrend.
The formation of a Inverse Head & Shoulders pattern resembles a baseline or neckline with three bottom where the middle bottom is the lowest price between between the two left and risght bottom.
Both the H&S and Inverse H&S patterns are most accurate price action pattern.
Also Checkout previous post about Head & Shoulders pattern for better understanding ()
Stay Tuned, 👍;
Two shapes of Rising Wedge PatternsI have explained about Rising Wedge Patterns on this Tutorial in detail.
Rising Wedges are bearish pattern and it generates bearish signal; Rising Wedge Patterns forms with Higher Highs and Higher Lows.
Rising Wedge pattern basically forms in two shapes ; If rising wedge pattern forms in an uptrend it will make reversal and if rising wedge pattern forms in a downtrend it will make continuation.
The higher highs and the lower lows along makes a trend resistance and trend support. When breakout occurs downside, price breaks the trend support line.
In rising wedge breakout occurs downside 60 to 70% of the time.
To confirm a true breakout, we can take help of Volume indicator. In a true breakout there will be big volume than usual.
We should use other indicators like MACD and RSI also to confirm that it will turn bearish before taking entry in a trade. (We can see MACD divergence, RSI Divergence and where the RSI is...)
Thank You;
Stay Tuned 👍, more tutorials and strategies coming!
Two Shapes of Falling Wedge PatternsIn the previous educational post, i posted about Rising Wedge patterns and in this post i have explained about Falling Wedge Patterns. (Falling Wedge is opposite of Rising Wedge pattern; for every chart patterns there are opposite patterns excluding some.)
Falling Wedges are Bullish Patterns and it generates bullish signal, Falling wedge patterns forms with Lower highs and Lower lows.
Falling Wedge pattern basically forms in two shapes same as Rising Wedge ; If Falling wedge pattern forms in an uptrend it will make continuation and if Falling wedge pattern forms in a downtrend it will make reversal.
The Lower highs and the lower lows along makes a trend resistance and trend support. When breakout occurs upside, price breaks the trend resistance line.
In Falling wedge breakout occurs upside 60 to 70% of the time.
To confirm a true breakout, we can take help of Volume and other indicators. In a true breakout there will be big volume than usual.
We should use other indicators like MACD and RSI also to confirm that it will turn bullish before taking entry in a trade. (We can see MACD convergence, RSI convergence)
Stay Tuned 👍 ;
Thank You;
Check out Rising Wedge if you didn't ()
RISING WEDGE/ENDING DIAGONAL PATTERN. How to Trade it...Rising Wedge
A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows.
Rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature.
HOW TO IDENTIFY A RISING WEDGE PATTERN:
~ Establishing Downtrend.
~ Rising wedge consolidation formation
~ Linking higher highs and lower lows using a trend line assembling towards a narrowing point.
~ Confirm divergence between price and volume may also be used.
~ Look for break below support for short entry.
HOW TO TRADE THE RISING WEDGE PATTERN:
All Details are labelled in the Chart..
DOUBLE BOTTOM PATTERN, How to trade it...DOUBLE BOTTOM
It is a reversal pattern and it forms in a Downtrend
It consists of a lower low followed by a point that is unable to make a lower low, after that price will start
making higher lows instead of lower lows.
This is a sign that the down move is over and price has the potential to reverse to the upside.
HOW TO TRADE IT:
This pattern usually occurs after price form a descending channel, we wait for a breakout of the descending trendline as well as the resistance level that will become future support and then we wait for a bullish corrective structure such as ''Flag/Wedge/Triangle'' to buy on a breakout.
*Thankyou for reading*
Straight From The Horse's Mouth... BTC Is Off To The Races!Here I am, sitting back with a cool bubbly, not a worry in the world.
My BTC trade is 3.2% in profit already, yet the current price is near where I started... How could that be? Maybe BTC will go up, maybe it won't, it's not me worry. I'm likely to make 6%, 7%, 8% or more on this trade regardless, but even if I'm off a bit... I'm 98% sure I'll walk away with a profit.
WHAT'S MY SECRET? I have a horse story you're going to love (read on)...
How do I do this? Meet Ol' Mr. Gridley...
Actually what I'm doing is pretty easy. But I get a little help... I just jump on Ol' Mr. Gridley here and I'm off to the races.
Mr. Gridley is likely NOT the type horse you're familiar with, he ZIGS he ZAGS... he never goes in a straight line. Sure, I pick the race track he runs on (and I have some handy indicators that help me do this) and I point him in the general direction, but once Mr. Gridley heads out of the gate, I just let him do his thing.
Now here's where this horse story gets interesting. BTC , ETH, LTC and quite frankly all the crypto coins out there... well guess what? They pay Mr. Gridley all along the way. He zigs down and buys a little, he zigs up and sells it right back. You know... BUY LOW, SELL HIGH . He's a pretty clever horse! It really adds up... in fact me, my friends and my followers usually make more money riding Ol' Mr. Gridley than betting the bank on a moon shot and sweating out the charts.
In fact, Ol' Mr. Gridley has been doing this so long, most the time I don't even ride him. That's right! I give him his favorite oats, maybe an apple , I point him in the general direction and he goes it alone. Mr. Gridley loves this... I mean, totin' me around all day and night ain't no joy ride! So I let Mr. Gridley run solo and he brings back the money - 100% automated - simple as that.
How long, how much?
Sometimes in a few hours, sometimes in a few days. Just last week he came back after 3 weeks with a 29.44% return! On another occasion, he brought back 9.66% in 14 days -AND- 9.66% in 14 days -AND- 26.98% in 7 days 14 hours -AND- 11.08% in 13 days 8 hours -AND- 18.3% in 3 days. Yada, yada... I'm happy to show you all my screenshots and proof. Just ask!
Now you're thinking...
How many people can ride Ol' Mr. Gridley? What if I want to race him on multiple crypto tracks at the same time. How might we do that?
Here's the good news, there's a whole herd of Gridley's out there: Pappa Gridley's, Momma Gridley's, Baby Gridley's, they're everywhere (if you know what you're looking for) . Yes some are better than others, they don't all make money. Bummer huh? But you can learn how to pick a winner, it's easy... it all comes with a little training and the right tools. It's about knowing WHAT to look for, what to feed them, and how YOU can get "GRID SMART" yourself.
I'm here to teach you the ropes.
YES, you can do this! It's easy, safe, and fun. Plus you can HAVE A LIFE beyond watching charts.
My name is Dan Hollings, I'm a Master Grid Trader. I can teach you what I do and before long (maybe even tomorrow), you could have Ol' Mister Gridley working for you. Follow me, like this and share with others. Mr. Gridley will be very very happy!
OTHER CHART ART YOU MIGHT LIKE:
As always, I appreciate your support. Please LIKE and share with others.
A Horse Is A Horse, Of Course Of Course!
Dan Hollings
Master Crypto Grid Trader
Please Explore My Other Indicators, Scripts, Grids and Educational Ideas.
@ DanHollings on Tradingview.
Channel Analysis (USDCAD)Using proximal and distal lines to mark channel extremities takes emotion and guess-work out of swing trading! Furthermore, using multiple timeframes allows for more accurate timing and thus more control over risk/reward.
As can be seen here, proximal and distal lines were used to highlight reversal areas on both the top and bottom of the channel. Then, using a smaller timeframe, an area of price-interest was highlighted to get a better understanding of direction.
Outlook: Bullish to 1.37~
Void if price <1.31~
How To Trade With Market StructureUnderstanding structure and change in structure and pattern formation.
I hope this educational post is helping...
Education post 1/100 - How to trade pin bars?The Pin Bar Setup
I bet you have seen many pin bars on your Forex charts. Maybe you haven’t been aware that you are looking at a pin bar formation, but you most likely have come across this candle on the chart
Bullish Pin Bar
A valid, tradeable bullish pin bar is located at the end of a bearish trend and its lower candle wick goes below the overall price action. If you spot a bullish pin bar setup on the chart, this will setup a nice opportunity for a long position.
Bearish Pin Bar
The same is true for bearish pin bars but in the opposite direction. The bearish pin bar is located at the end of a bullish trend and its longer candle wick is the upper area. In this manner, the longer wick is sticking out above the price action. The bearish pin bar is usually a good sign of an upcoming price reversal in the bearish direction.
Useful Chart Patterns for Crypto and FXHere an outlook over some patterns that are very common in trading. Some may not be as visible in real time trading, but after some time you will get used to see them right away.
Let me know if you like them or if I should add more
Lesson 6B: Breakout Patterns - Ascending Triangle (Bullish)Hello Friends,
Welcome to the series of Lesson 6. In Lesson 6B, we are going to learn the Ascending Triangle breakout pattern. This is more of a continuation pattern rather than the reversal pattern as oppose to the Falling Wedge pattern that we learned in Lesson 6A.
Lets get straight into the topic. Please be very careful.
We will be referring to the chart above or below to get a better understanding of the topic:
What is Ascending Triangle Pattern?
Ascending Triangle is a bullish continuation pattern, which we quite often see in the crypto world. When a coin is inside the Ascending Triangle, it means it is currently being accumulated, before it breaks out.
Formation:
Lets go back to some Mathematics. We all studied what is a Right Angle Triangle correct? If we look closely at the chart above, we see that it is forming a right angle triangle.
There are two lines to this formation, one is the resistance line, which is horizontal as you can clearly see. The second is the support line which is ascending as you see and it moves up with the price (basically it is inclined moving up as we go from left to right).
The horizontal (resistance) line is formed by 2 or more equal reaction highs touching the horizontal.
The ascending (support) line is formed by 2 or more higher lows touching the ascending support line.
The Rules:
So obviously, you won't just draw an ascending triangle, and think that this is a bullish pattern. There are a few things you need to confirm before making an entry into the coin. Lets look into it.
You must be wondering, how many times the price candle has to touch the resistance line or the support line to consider this pattern valid? Here is the answer:
For the Horizontal (Resistance Line), the price candle has to touch at least TWO or more times to consider a part of this pattern valid. Notice in the chart how the price pull after touching the resistance line FOUR times.
For the Ascending (Support Line), the price candle also has to touch at least TWO or more times to consider this pattern valid. Notice how in the chart the price candle bounces after touching the support line THREE times.
Note (IMPORTANT) :
For the Resistance Line, it is preferred that the candles touching it are equal or doesn't differ in height by too much difference. Usually I only consider the patterns for which the reactions highs are equal for this pattern.
For the Support Line, it is preferred that we have reaction lows as Higher Lows. If we see a reaction low lower than or equal to the previous reaction low, this pattern will be INVALID.
Also note from the chart that there has to be a little distance between the reaction highs, or reaction lows, as you can see in the chart. Just a little is fine.
Since crypto is very volatile, the length of time this pattern occurs doesn't really matter much, but the longer the length the stronger the patter. It's that simple. I stick to 30m or more for this pattern.
I am sure you guys are understanding this really well, as this pattern is very simple to understand or do I make it simple to understand? :P
Lets take a look at the breakout setup.
Continue reading below.....
Trade what you see, not what you hear.In this video I look over a few indices and the VIX.
There is a problem i.e. the news is saying one thing, but the charts are showing something rather different. I look at some trendlines, channels and patterns. After many years in trading I'm no longer obsessed with the names of various patterns. The overall pattern is what interests me more.
The news is about short term reporting. Rarely do popular news reports analyse trends in a robust way. Today I looked at some overview video report on the indices, from a reputable brokerage site. Not surprisingly the commentator was going on about MACD, RSI, Stochastics and support lines. There were other things considered like non-farm payrolls and jobs reports in the US. But even when going over the charts, he missed the obvious channels and other features heading south. This is the danger of listening to these broadcasts. You are at the mercy of the reporter who only has a limited time to assess the markets. Additionally all reporters hold their individual unconscious biases and blind spots.
' Am I biased in this video? ', I'm asking myself. I probably am. But all I know is that I'm seeing certain patterns that everybody else can see. The patterns are relevant to obvious trends, as they present themselves at this time. Note I said 'at this time' because the picture can always change.
This post and video is predictive of nothing. I don't do predictions and likewise I set no targets. I simply follow trends and exploit patterns where I see them. When I enter a trade, the stop-loss truly means that I've lost that money. Although I don't gamble, by analogy when one goes to a casino and puts the chips on the table one knows that is the loss. So that's how I approach the loss in my stop-losses.
As 'the man' once said, " Trade what you see ". I'll also add, "Don't trade what you hear ." (namely the news, blogs and gurus aplenty).
The examples shown in the video is not a recommendation or encouragement to trade. Your losses are your own if you enter a trade based on any position shown.
Trading Strategies on Corrective Patterns There are two trading strategies on above Mentioned corrective patterns.
1. Entry before breakout, this strategy based on bullish divergence and RSI and other Oscillators may help to know when correction period is about to end. Look always for oversold
2. Entry after breakout, this strategy simply based on breakout of corrective pattern
3. Stop Loss, stop loss will be behind the corrective pattern for both
4. Target , target is start of the next correction
Entry before breakout, is called risk taking entry rather than the entry after breakout because tight stop loss is used for entry before breakout but risk reward ratio is good rather than entry after breakout.
Entry after breakout, is called risk averse entry rather than the entry before breakout because wider stop loss is used for entry after breakout and breakout confirms trend continuation. This is the reason why most traders trade on breakout but risk reward ratio is not good enough rather than entry before breakout.
