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Continuationpattern

BTC: Possibility of a Bearish Ascending Triangle?- The most recent pump has painted a bearish divergence on the 1h, 2h, and 4h RSI. - If Bitcoin dumps from here, or even from a little higher, this could indicate the possibility of the formation of a Bearish Ascending Triangle if the price retests the ascending support line. Ascending Triangles are characterized by a series of higher lows but the same highs. The horizontal upper trendline will experience multiple efforts as price resistance. The shape of the Ascending Triangle is altered by the slope of the ascending support line which ‘converges’ or; is inclined toward, the upper resistance line. Ascending Triangles vary in their duration, but will have at least two swing highs and two swing lows in price. This bearish continuation pattern has 3 phases: 1) Background: A Strong impulsive, thrusting action with a surge in volume & price establishes a clear picture of the controlling bearish trend direction. In our ascending triangle price pattern it is represented visually by a Pole. Deeper and more drama the better as the Pole is the Key to recognizing the potential for the continuation of the pattern. The Pole represents trend direction as well as its strength & often this pattern is initiated as a new breakdown in price from an established area & sellers are in control. 2) The second phase is a pause for consolidation of the action both in volume & price and is represented by the ascending triangle. 3) The pattern confirms as a bearish continuation pattern if the action creates a new bearish breakdown with a surge again from the bears in both volume & price.
COINBASE:BTCUSD
by MRudy
BTC: Possibility of a Bearish Ascending Triangle?- The most recent pump has painted a bearish divergence on the 1h, 2h, and 4h RSI. - If Bitcoin dumps from here, or even from a little higher, this could indicate the possibility of the formation of a Bearish Ascending Triangle if the price retests the ascending support line. Ascending Triangles are characterized by a series of higher lows but the same highs. The horizontal upper trendline will experience multiple efforts as price resistance. The shape of the Ascending Triangle is altered by the slope of the ascending support line which ‘converges’ or; is inclined toward, the upper resistance line. Ascending Triangles vary in their duration, but will have at least two swing highs and two swing lows in price. This bearish continuation pattern has 3 phases: 1) Background: A Strong impulsive, thrusting action with a surge in volume & price establishes a clear picture of the controlling bearish trend direction. In our ascending triangle price pattern it is represented visually by a Pole. Deeper and more drama the better as the Pole is the Key to recognizing the potential for the continuation of the pattern. The Pole represents trend direction as well as its strength & often this pattern is initiated as a new breakdown in price from an established area & sellers are in control. 2) The second phase is a pause for consolidation of the action both in volume & price and is represented by the ascending triangle. 3) The pattern confirms as a bearish continuation pattern if the action creates a new bearish breakdown with a surge again from the bears in both volume & price.
COINBASE:BTCUSD
by MRudy
BTC: Possible Bearish Continuation PatternBasic Trading 101 - Bearish pennants are continuation patterns that mark a pause in the movement of a price halfway through a strong downtrend. - They occur just after a sharp drop in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. - The downtrend then continues with another fall in price. BTC seems to be forming a bearish pennant. If Bitcoin breaks upwards from this pennant, we could expect the price to retest the 200 Exponential Moving Average. If not, it could drop down the the blue area of the chart. Looking at the 1 hour time-frame, we can see a bearish divergence on the RSI, indicating the possibility of a price drop to the lower line of the pennant, which would further indicate the validity of a Bearish Pennant.
COINBASE:BTCUSD
by MRudy
2
GBPUSD: Bearish Momentum Can Lead To Test Of 1.3300 Area?GBPUSD update: After a significant decline, price has settled around the 1.3551 level which is a reversal zone boundary. The type of price formation that is present would usually call for a long, BUT usually this is followed by a short squeeze which is not happening here. And for this reason, I am anticipating a bearish continuation pattern. The EUR and AUD had decent bullish retraces that may lead to a quality signal, but not this pair. When price reaches a reversal zone boundary, and produces a double bottom type formation, typically the next move is a squeeze. So when the market does not squeeze, that is telling us something. It is telling us that the bearish momentum is still firmly in control. There is an inside bar/bearish pin bar with a low of 1.3502. This can act as an aggressive short trigger for those who are monitoring shorter time frames. It is aggressive because the trigger is occurring at a low, rather than a lower high. This is the nature of trend continuation patterns and this one can lead price into the next support near the 1.3300 area. If this market can gather the strength for a bullish retrace, the resistance level to watch for is the 1.3821 area (.382 of recent bearish swing). This would serve as the more conservative area to look for a swing trade short as well. Keep in mind, the long term wave count for this market is bearish which lends more potential to the short side. Aggressive break out trades such as the break of the 1.3502 low are within reason in such a context. Just make sure your plan is very well defined. This means you should know before you enter what type of trade it is: day trade? swing trade? And you should know your stop and your targets as well. I will be covering the broader time horizons on S.C. so make sure to keep an eye out.
by MarcPMarkets
BTCUSD: Continuation Pattern Forming. Is The Trigger Worth It?BTCUSD update: Price is poised to make a higher high and possibly break the 9225 old support/new resistance level which can lead price up to the 9861 reversal zone boundary. Along with this possibility, an aggressive swing trade setup is developing as I write this. Is the trigger worth entering? In recent reports, I have been writing about how not all signals are equal and how buying supports is more effective than buying highs in strong markets. There are exceptions, and usually they are based on how well defined the setup is, what kind of obstacles the trade is facing, and how clear the momentum is. In other words, context strongly defines whether or not it is worth taking the risk, in conjunction with how aggressive you choose to be. In this case, there is an inside bar that has appeared, supported by a previous higher low formation and clearly positive sloping trend line. Chances are a break out from this inside bar will lead price to the 9225 level which is a historical level that has affected price previously (see chart). Since buyers are in control, it is not unreasonable to expect an attempt toward the 9861 level which is the reversal zone boundary relative to the 9225 high. If the bullish trend line stays intact, and price breaks the 9048 trigger, you can risk about 300 points to potentially make 600 to 700 points based on a conservative target. The reward/risk is attractive and the current price structure (mini consolidation) is typically a trend continuation pattern. What makes this trade setup riskier is the fact that price has not retraced to a reasonable support (which doesn't always happen in strong markets). That is the aggressive trade idea while the more conservative idea is to wait for a retrace back to the 8108 level which is the .382 of the current bullish structure. The immediate trend line would be compromised, but as long as price maintains this level and establishes a reversal pattern off of it, often the next move is at least a retest of the previous high. It is more conservative because you are buying at a more attractive price along with a higher probability of retesting a predetermined level (previous peak). In summary. buying near resistance levels is often a bad idea but occasionally there are exceptions. Experience and understanding context along with your capacity to undertake the associated risk determine if this type of setup fits into your trading plan. A shallow retrace such as this are common in strong market environments and can offer a structured way to participate even at less attractive levels. Make sure to check out our regular updates on S.C. about this potential swing trade and how we decide to participate if it triggers a long. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
13
GEO - Descending Triange, Decision soon Geo making another move in my opinion in the next few days. With bitcoin stabilising people will explore cheap altcoins again, Geo has unlimited potential with their use case. Lots of geoinformation based dApps can be created easily on this app --> Example PokemonGO on Blockchain! Now lets take a closer look to the Chart. We see a descending chart pattern which is in my opinion a continuational pattern. We have 2 resistance levels, Geo will be around strong support line a bit and then take a direction. If downtrend line of triangle breaks, we have 2 options, if no volumes comes in it will test the first resistance, if we have increasing volume we will see the last high high be tested. RSI confirms since you see it went low before the last spikes which will be the fact now again. In between it never went down like now. Now is the best time to buy. Low risk, high reward. UPdate tomorrow.
Long
by crypto_heroes1
EUR/USD 04-04-2017 (AP)Hello Dear Traders, 1.The pair is forming a descending triangle & a break below 1.0649 would open doors for 1.0620 & later 1.0580. 2.the pair's outlook is still negative & break above 1.0700 would trigger 1.0750. 3. News to follow today is Speech by the President on the occasion of the launching of the new €50 banknote at the E.C.B in Frankfurt, Germany. with no supportive news From the US Dockets today. 4.Enter the trade on the breakout of 1.0649 & target at the 1.0620 or 1.0580. Note: Everything works with Best money management. Note: Please leave comments for any query. Disclaimer: Trade at your own risk. Good Luck...!! Regards, Growing Forex Team
Short
by GrowingForex