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Continuation

BTC analysis - bearish continuation?Since reaching it's All Time High in November, Bitcoin has seen a descending channel, followed by a small descending triangle. A descending triangle during a larger downtrend is considered a continuation pattern, but can of course break out both sides, usually with a volatile move. We saw a move to the upside to break both the triangle and the descending channel, but found a strong supply zone above 51k. After multiple attempts to break through the price failed to overcome the supply zone and has come crashing back down, close to the bottom of our previously established triangle. I would suggest that the continuation of the bearish trend is still a high probability event, breaking below our lower triangle boundary to test the support in the 40-42k range. We could see some more bouncing around within the current range of 45.5 - 52k - ultimately a break below or above should give indication of the direction we will travel next - but when in doubt, follow the trend and expect Bitcoin to find an easier path down than up for the time being. This is not financial advice, you are responsible for your own trading decisions. ** LIKE AND FOLLOW IF YOU ENJOY THIS IDEA ** I'll be waiting in the comments below if you have any comments or question.
BINANCE:BTCUSD.PShort
by HayeTrading
8
EURUSD still failing at Supply ZoneEURUSD is still failing to break through the supply zone . Price had formed a textbook bearish pennant before attempting a breakout and being pushed back into the pennant after meeting strong resistance at the Supply Zone . This is still a strongly bearish continuation pattern, and the push back up to the Supply Zone has offered us a fantastic risk/reward short possibility, as a break below the pennant and a further break of the 1.118 level would be already be close to a 3 R trade, and then it could really run. This is NOT financial advice. You are responsible for your own trading decisions. ** Please like and follow if you agree ** Any comments or questions I'll be waiting in the comments 👍
Short
by HayeTrading
4
Symmetrical triangle pattern: definition & interpretationWhat is a Symmetrical Triangle? Triangle patterns are probably the most popular chart patterns studied by traders. There are three different types of triangles: The ascending triangle, the descending triangle, and the symmetrical triangle. Symmetrical triangles occur when price is consolidating in a way that generates two converging trend lines with similar slopes. It is called "horizontal" because it forms a holding pattern with around 90 bars in which the price moves sideways. The symmetrical triangle usually forms during a trend as a continuation pattern. They tend to break in the direction of the initial move before the triangle formed. But it can be a powerful reversal pattern, in the event of failure. As the market continues to trade in a sideways pattern, the range of trading narrows and the apex of the triangle is formed. The apex of the triangle is a place where supply and demand intersects. The more price approaches the apex, the bigger the chance of a breakout. The pattern will be completed after the breakout (in either direction) A breakout or failure of a triangle pattern, especially on large volume, can be a strong signal of a resumption, or reversal, of the previous trend. Interpretation of the Symmetrical Triangle Pattern Symmetrical triangles, are thought of as continuation patterns developed in markets that are, for the most part, aimless in direction. This Pattern reveals that the market is very unsure about what is going on. Investors do not know what position to take. The triangle pattern shows losing interest, both from the buy-side as well as the sell-side. During this period of indecision, the highs and the lows seem to come together at the apex of the triangle with virtually no significant volume. The supply and demand seem to be one and the same. A symmetrical triangle pattern is the result of the contraction of volatility in the market. In other words, volatility is constantly decreasing. In essence, the symmetrical triangle represents a period of consolidation where traders find a chance to take a breath before the price is forced to break out. Construction of the Pattern • Support Trendline In technical analysis, support is defined as the price floor where a downtrend can be expected to pause. A trendline that connects a series of lows over a period of time is defined as a support trendline. Think of the lower trendline, as the demand line, which represents support on the chart. At this point, the buyers outpace the sellers, and the price begins to rise. • Resistance Trendline A resistance trendline is a downtrend line that connects a series of highs together. • Triangle’s Height The height is the distance between the initial high and low of the triangle pattern. This parameter is commonly used as a breakout target for the symmetrical triangle pattern. • Apex of the Triangle The apex of a triangle is the intersection point of the support and resistance trendline. Pros & Cons of Trading Symmetrical Triangle Pattern • Pros ▹Symmetrical triangles can form in any time frame. ▹These patterns are a sign of an impending breakout. Once the pattern is completed, we will probably have an explosive price movement. ▹A symmetrical triangle is a reliable continuation pattern, so the direction of the breakout can be guessed, based on the prior trend direction. • Cons ▹False breaks are common with symmetrical triangle patterns and can lead to significant losses. ▹Compared to other chart patterns, triangles take longer to develop and become identifiable. The Bottom Line The triangle pattern is one of the most common and popular chart patterns in technical analysis. A better understanding of this pattern and the reasons why it appears on the chart can help us better understand market behavior and identify trading opportunities.
Education
by BobRivera990
2
EURCAD I Correction and Long Continuation FormingWelcome back! Here's an analysis of this pair! COMMENT BELOW and let us know your thoughts or questions! ** We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support! Brian & Kenya Horton, BK Forex Academy
Long
by BKTradingAcademy
4
Crab Almost Complete 🦀GBP/AUD - Crab Almost complete, D point landing on the .886 of the Daily uptrend pullback (Very nice PRZ here lots of confluence) Price may tap into the imbalance below before the continuation, it just made a fake move to the upside from the .786 i'll be waiting for price to hit my zone and watching for reversals on the LTF Let me know your thoughts! ** Disclaimer *** These ideas I never trade until the end target with my initial lots, I focused on high probable entries with higher lots and use a specific partial taking strategy giving me a very high win rate and take most of my profits very early, I only leave a small % of my capital to run the entire trade. On the flip side im constantly monitoring LTF momentum and will close early if things change, these analysis's are for research purposes only.
Long
by ProFxAI
1
FTM CORRECTION INCOMINGFTM has seen a lot of growth the past few months, however it is due for a correction. Looking at the chart we can see price always retraced back to the .786 fib support after each impulsive wave, should we get that same retracement, FTM will be on a discount price at just below $1 Coupled with the bearish Divergence it seems just about right to me. Did the analysis on a 1D Timeframe originally but uploading the 1W chart to avoid cluster and improve visibility. Hope this helps.
FShort
by RektMyMom
27
What are Supply and Demand Zones and How to Trade with Them?What are Supply and Demand Zones? ▷ Demand Zone (Accumulation Area): Accumulation comes from a Latin word meaning to increase something over time. A strong uptrend can only exist if buyers outnumber sellers. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an accumulation or a demand zone. Demand Zone is where traders are willing to buy aggressively because the balance has shifted to the demand side. Here, buyers are dominant and sellers weak. The demand zone represents a period of implicit buying, typically by institutional buyers, while the price remains fairly stable. This area is characterized by mostly sideways price movement. Before a trend starts, price stays in an demand zone until the “big players” have accumulated their positions and then drive price higher. This can be contrasted with the Supply Zone, where institutional investors start to sell. ▷ Supply Zone (Distribution Area): Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone. At Supply Zone traders are willing to sell aggressively because the balance has shifted to the distribution side. Here, sellers are dominant and buyers are weak. Support and Resistance Levels vs. Zones If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar. You won’t be mistaken; Supply and demand zones are natural support and resistance levels. You’ll often find supply and demand zones just below/above support and resistance levels. Types of Supply And Demand Patterns There are two types of patterns: “Reversal” and “Continuation” patterns. While a pattern is forming, there is no way to tell whether the trend will continue or reverse. As such, careful attention should be paid to whether the price breaks above or below the zone. ▷ Continuation Patterns If price continues on its trend, the pattern is known as a continuation pattern. We have two continuation patterns: “Rally-Base_Rally” and “Drop-Base-Drop” ▷ Reversal Patterns When price reverses after a pause, the pattern is known as a reversal pattern. The established trend will pause and then head in a new direction as new energy emerges from the other side (bull or bear). Reversals that occur at market tops are known as distribution patterns. Conversely, reversals that occur at market bottoms are known as accumulation patterns. We have two reversal patterns: “Rally-Base_Drop” and “Drop-Base-Rally” How to Find Supply and Demand Zones? On a price chart, the demand zone is characterized by sideways price movement on above-average volume. When a stock price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the stock is being accumulated by investors and as a result, will be moving up soon. The demand and supply zones are encompassing the base on the beginning of the move. The most important thing is to first finding a sharp move in either direction, after which you can identify its starting point and roughly define the supply or demand zone: • Look at the chart and try to spot successive large candles. • Find the base from which price started the quick move. Usually, before that you have a small sideways move, that is where your supply / demand zone is. • Draw the zone It is very hard to be precise with those levels and here it is more of an art than science. To make it easier to identify these levels, you can use another tool for confirmation. How to Trade with Them? One way to trade with supply and demand areas is reversal trading. After identifying a previous strong market reversal, wait for the price to return to that area. If a false breakout occurs, the chance of seeing a successful reversal is extremely high. Some candlestick patterns such as "Engulfing", "Pin Bar" and "Tweezer Blades" can help you identify trend reversals. Be careful, trading in the opposite direction of the trend is very risky. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed. Trend reversal trading can be a profitable way to trade the markets. However, like any other trading strategy, there is a correct and a wrong way to do it. Pros and Cons Being able to recognize whether an asset is in the demand zone or the supply zone is helpful to investing success. Demand Zone is the origin of a big rally in price. Identifying this area could help investors spot good entry points into an investment before its price begins to rise. Once the price leaves an demand zone, not all buyers got a fill and open interest still exists at that level. Supply and demand traders can use this knowledge to identify high probability price reaction zones. As with anything else, supply and demand zones have their cons, as well. Understanding chart movements such as those seen in the accumulation area can work well during times of relative stability. Still, prudent investors know to pay attention to larger economic events that can quickly reconfigure charts (like the covid-19 epidemic) Key Points • Accumulation / Re-accumulation zones can becomes distribution/Re-distribution zones over a period in the Stock Market • The narrower a supply/demand zone before a strong breakout is, the better the chances for a good reaction the next time typically. • Good supply and demand zones are quite narrow and do not hold too long, which shows strong imbalance between buyers and sellers. • The stronger the breakout, the better the demand zone and the more open interest will usually still exist. • Always look for extremely strong turning points. They are often high probability price levels. • Each time the price re-tests a supply/demand zone, more and more previously unfilled orders are filled and the level is continually weakened. Conclusions Supply and Demand Zones are a great way to identify areas of buying and selling as well as support and resistance, but they work best when combined with other kinds of technical analysis.
BITSTAMP:BTCUSDEducation
by BobRivera990
8
EURAUD Analysis - Temporary move down and trend continuationWelcome back! Here's an analysis of this pair! COMMENT BELOW and let us know your thoughts or questions! ** We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support! Brian & Kenya Horton, BK Forex Academy
by BKTradingAcademy
2
#TSLA - Price moving within a consolidation triangle!Hi All, my main 3 take-outs from this analysis are the following: 1- Price action is maturing within a symmetrical triangle which looks like being a continuation triangle pattern. I would not be surprised if the price might touch again the up red trendline and break it upwards with volumes by mid-December 2- First target following this possible breakout would be approximately 1490-1500$ 3- The target given by the triangle is also matching with the first extension leg of fibonacci expansion tool Not a financial advice, just personal opinion. Do your own due diligence and good luck!
NASDAQ:TSLALong
by FrancescoMerlettini
CRVUSDT Breakout and moves to TargetYet another example of an asset ready to move and helped by a little BTC push upwards. CRV was in a flagging pattern for awhile now and it was only a matter of time before it started to move towards the target. I think it still has a bit more juice in it before it starts to consolidate again before continuation. Once BTC gets going, its should head to the target without issue. This will likely create a small basing pattern and give us another smaller target. Thanks again everyone!
Long
by mysticalwalrus
13