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Continuationpatterns

BEAR FLAG CHART PATTERN STRATEGYBTCUSD 1H - Bear flag pattern trading strategy is one of the most reliable continuation patterns. One of the first experiences most traders learn when they start trading is price action trading and one of the most popular price action pattern that you probably have heard is the bear flag pattern. The bearish flag is a very simple continuation pattern that develops after a strong bearish trend. It doesn’t really matter if your preferred time frame is the 5-minute chart or if you prefer long-term chart because the bear flag pattern shows up with the same frequency on all time frames. A continuation pattern, like the bearish flag, brings some good news because it tells you that after the market has gone down it will continue to go down more. In addition to that if you missed the initial sell off and the market has gone without you, if you spot the bear flag pattern on that chart, then this is a sign and a safe place to sell so you can enjoy the rest of the bearish trend. What is a Bear Flag Pattern? A bear flag pattern is constructed by a descending trend or bearish trend followed by a pause in the trend or consolidation zone. The strong down move is also called the flagpole while the consolidation is also known as the flag. The bear flag pattern will always come after a strong move downwards and the stronger the move the bigger the profit potential can be. The bear flag pattern highlights a trading environment where the supply and demand balance has shifted badly in one direction of the market (supply > demand). This in turn will produce very little upside retracement which allows the flag structure to take shape. After the initial sell off, people who missed the train will panic and begin selling and more people selling it during the flagpole stage. During the pause or the narrow consolidation people will now wait to get higher price so they can sell but since the supply demand equation is so imbalanced this won’t happen and we get another smash that will make many people to chase again the move to the downside. Step #1: Look for evidences of a prior bearish trend. For a valid bearish flag you need to see a sharp decline. Just because you can spot the bear flag pattern it doesn’t mean you have to jump straight into the market and trade it. Remember, we need the right context and the right price structure needs to line up for a tradable bearish flag. A valid bearish flag first needs a sharp decline which is a strong evidence of a bearish trend and the fact that the supply and demand are out of balance. Note* The sharp move is also the Flagpole – the first element of the bearish flag structure. Step #2: Identify the Flag price formation. The price action needs to move in a narrow range between two parallel lines. The flag price formation is the second element of the bear flag pattern. Basically, all you need to do is to spot one support and one resistance level that must contain the price action in a very narrow range. The narrow range is key for the bear flag pattern success rate. Step #3: Sell at the closing candle that generates the Flag Breakout. There are two basic approaches to enter the market with the bear flag pattern. Aggressive traders will enter at the top of the bearish flag as this will secure a little bit of bigger profits. If you’re a conservative trader you can wait for confirmation provided by the flag breakout. Step #4: Place the protective stop loss slightly above the Flag. We’re accomplishing two things with our tight stop loss: Small losses. Higher risk to reward ratio. With such a tight stop loss you’ll have the comfort of losing many trades in a row because with the amazing RR the bearish flag can potentially wipe out all your losses in a single trade and still come profitable. Step #5: Take Profit target equals the same price distance of the Flag pole measured down from the top of the bearish flag. The text book profit target is the height of the flag pole measured down from the top of the flag.
BITFINEX:BTCUSDShort
by Tradingstrategyguides
[LTCUSD] SYMMETRICAL TRIANGLE -POSSIBLE BREAKOUT- DIRECTION ?Folks, we don't really know which direction will take place! If I knew I would be a millionaire. LTC is in consolidation with a potential to continue in the same bullish trend direction..But its not 100%... Their is a 75% chance it will continue bullish. Two different price targets were set , we need a few candles over this weekend to confirm which direction it may take. Give me a like and some comments if you enjoyed my video. Thanks CrytpoBuzzAnalyst
COINBASE:LTCUSD
by CryptoBuzzAnalyst
1
Oh My Golly Gee! OMG going up?!?!(OMGBTC)Helllllllo again! Browsing through the charts and this caught my eye: OMG may be forming a symmetrical triangle!(Continuation pattern). It is important to note that just before this, OMG was on a positive trend, despite the majority of the crypto market. Since the symmetrical triangle is a continuation pattern, it would be expected that the positive trend will continue! Usually symmetrical triangles DO NOT complete to their entirety and usually break out of the pattern anywhere from 60-80%(broadly marked by the up arrow). Other positive indicators important to take into consideration: RSI. As you can see by the blue lines, there is Positive Divergence. Positive Divergence is when the Candle stick closes on a lower low than before, but the RSI actually increases. This can be an early sign of positive forces moving back into the picture. The MACD also is showing a sharp turn of the short term EMA(blue) upwards getting ready to cross the long term EMA(orange) and the .5 line. We will have to watch this pattern closely because if it breaks to the downside of the triangle, it could mean a tank into the negative trend, which wouldn't be completely surprising in this current market environment. I will update as I see new developments emerge. Please comment, good or bad. Remember, I told you not to watch ;) -Dr. Dont Watch
OLong
by DontWatchDoc
3
Flag + Double Bottom EURUSD Continuation PatternHi guys, Here some analysis on the EUR/USD pair: We are still in a strong bullish trend and currently a nice correction has been formed lying on a major, historical and daily support. Therefore we might see a bounce from this support (middle black line). Trade setup: - Consolidation has been formed right on the major support - Double bottom (with 2 long wicks) has been formed - Flag pattern has been formed - Put a BUY LIMIT order on the breakout of the small consolidation area (which is also the flag pattern breakout) -Stop loss 5 pips below the lows of the double bottom candles - Take profit is on the next major resistance line - Risk reward 2:1 Hope you enjoyed my analysis. Feel free to leave a comment or a like. Cheers, Sebastiano
Long
by Sebatrader1
1
Monero All I wanted for christmas was you!Since the announcement that you can buy some Mariah Carrey with monero, it rushed a little bit. But after each rush you have to come back to the reality but this reality is still sweat. In the last week was rapidly falling between the line of a flag. Monero seems to find it self again on the old trendline. Effectively it bounced from the trendline breaking the resistance formed by the higher part of the flag. That mean that it could be a good long buy occasion. Alternatively it could touch again the trendline before to go higher. Watch attentively it should give us more satisfactions
KRAKEN:XMRUSDLong
by FerdiHodler
1
ETHUSD: The Quiet Before The 760+ High.ETHUSD update: Higher low established at the 610 level while price works its way into the next resistance zone. There are countless scenarios that can unfold from this point, but in this report I am going to evaluate two that we are more likely to see in light of the most recent price action. At the moment, price is hesitating just under the .618 resistance area relevant to the most recent minor bearish swing. In a more balanced market, this lower high would be more of a bearish sign, but in light of the current euphoria and clear 4 leg impulse wave, this price action will most likely lead to more of a consolidation followed by a new high. The level I am watching for a reversal to go long is the 648 to 631 support zone which is the .618 of the recent bullish swing. A bullish reversal here, OR a retest of the 610 low can offer attractive short term buying opportunities IF the risk is justified by the structure. IF price happens to correct further (remember ANYTHING is possible), the 568 level would be the next area to look for reversals because it is the 1.0 extension projected from the 712 high. This level would be the completion point of a zig zag formation where price is more likely to begin its next leg up to retest the 760 high. As far as highs go, IF price breaks above the 730 area, it is then more likely to retest the 760 high and beyond. 796 is the upper boundary of the reversal zone which means price can push to a new high and fail to follow through BUT since euphoria still rules these markets, it is likely to test the 815 level which is a 1.618 extension measured from a low on the weekly chart (explained in previous report). This is a good price to lock in SOME profit if the market offers the opportunity. These are not levels to go short. This is a short term swing trading strategy which has clearly defined rules, criteria and procedures that govern every aspect of the decision making process. The predetermined targets compensate you for the proportionate risk you had to take, and offer clear opportunities to lock in SOME profit. Short term trading and investing are two separate mindsets and each have their own subset of techniques, strengths and weaknesses. The market environment and your own unique financial situation further determine which mindset is a better choice. Your effort in any market should begin with one of these mindsets. Some markets are investing markets, while others are better for trading all while the environment is shifting between the two. Strongly trending markets like the coins at the moment are showing better results for longer term holders, but when they correct (eventually they will) investors will stagnate while traders capitalize on the movements. Learn to separate the mindsets. That is what trading around a core position is all about. In summary, market conditions are always changing. Right now everyone is expecting dramatic new highs because the market is rewarding such unrealistic views. Reality does not mean "sell off", it means that prices will spend more time in ranges rather than moving 30%+ per day or week. While BTC makes new all time highs, the alts take a breather and vice versa as money is flowing in and out of these coins. This market is likely to trade in a range between the 650 and 730 areas until the next attempt for the highs. Remember anyone can call a straight up market, learn to separate yourself from the impulse and hype surrounding these coins because when the weak hands get shaken out, that is when skill pays off the most. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
23
EMC2 LongEMC2 is making a A bullish continuation Pennant and I am expecting a breakout which will complete the 5th Elliot wave . Beside that, the price sustained itself for a good time above the ichimoku cloud, the 0.5 Fib level (1430), and the 200 moving average which is a good bullish indication as I see it. Unless Bitcoin does something Crazy (go to the moon) I think we are good to go. A good buy range : 1450-1500 Stop loss below the Pennant: 1380-1400 A good Sell target is at the previous major resistance between: 2100-2200 Trade at your own risk and good luck.
ELong
by Nirvana7
3
XLM - Possible Falling Wedge BreakoutIt's been a rough 24 hours for XLM. BTC shot through the roof again and XLM took a huge hit to its momentum. We've reached convergence on the support/resistance lines and XLM is trying to break out of this falling wedge. This should signal Bullish continuation. That being said, we've seen a history of XLM going sideways instead of up during "breakouts," forming pennants for a matter of days. Watching for pennant formation 460-490. Need to break soft resistance at 530, and solid resistance at 570. With BTC as strong as it is the last 24 hours, it's gonna be tough. Stop loss at 430.
Long
by epaka
1
OMG At Decision Making Point - What's Next?Hi guys, OmiseGO managed to stabilise itself in a sideways movement. Retracement was stopped after Thai minister of finnance gave it its support. What' gonna happend next ? We can see that the sideways movement is coming to an end. It created a roughly Simmetrical triangle whose sides are made of an uptrend line and a falling resistance line. It is considered to be a continuation pattern . Once hitting the apex (top of the triangle) we could expect a break through in the dirrection of the previous trend. RSI is more or less in an overbought area currently falling down which is not expressed in terms of price - a possible divergence . Set Stop - Loses under the support line and wait for the break through out of the triangle. Your feedback is greatly appreciated. Good luck and peace! Disclaimer : Due to its extremely high volatility Trading Cryptocurrency is very challenging. Potentially it can be a profitable opportunity for investors. However, before deciding to participate in the cryptocurrency market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly invest only money you can afford to lose.
BITFINEX:OMGUSDLong
by AwesomeTrade
9
GBPUSD- The Next Trend Trading Opportunity last week we fired off a long opportunity here on the GBPUSD at the 1.3060's level looking to capture initial profits at a retest of the previous structure highs. Now that we've reached those highs, the market is going to offer us another "decision point" A break above close above at this decision point would tell me to expect another extension higher where pullbacks can be used to hop on the bullish move, while a failure to break this level would lead me to expect a deeper pullback. IF we get the deeper pullback the next buying opportunity will be at a retest of previous structure support where I initially got involved in the trade at. An even deeper pullback and violation of that level would provide pattern traders with the opportunity to buy at the completion of a bullish Gartley Formation. Akil
by Akil_Stokes
10
$ADSK trend continuationhigher time frame is in defined uptrend with healthy pullback mid time frame is showing a rising ma after minor accumulation and weakening downtrend breaking out of downtrend line with positive momentum and volume pressure lower time frame is showing positive strength after price was overextended and pullback to intermediate moving average and working it way back up looking for price to break through the 106.1x resistance area and first target to 106.7x for a break of that resistance higher
NASDAQ:ADSKLong
by inco1