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Harmonic Patterns

When I take my trades Good evening gold gang, I hope you’re having a good weekend. I thought I’d hop on to share with you the times of day i like to be at the charts. I like to make sure I’m sat down around the most volume, which is normally an hour before opens and the actual opens. I use the sessions indicator to help identify the sessions for backtesting .. just search its name. I’m back Monday for some more gold action .. hope to see you then. Hit the like and follow along! Tommy
OANDA:XAUUSDEducation
by tommyXAU
1
Harmonic Bat Pattern for traders can apply on any time frameThe Bat is defined by the .886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities: Move AB should be the .382 or .500 retracement of move XA. Move BC can be either .382 or .886 retracement of move AB. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consequently, if move BC is .886 of move AB, then CD should be 2.618 extension of move BC. CD should be .886 retracement of move XA.
Education
by BasharatAliMaher
4
Why Technical Analysis is a Valuable Tool for TradersTechnical analysis is a popular method used by traders and investors to value securities and make informed decisions based on historical price and volume data. The approach involves using charts, graphs and other technical tools to analyze price movement and identify potential trends and patterns. While there are different schools of thought on the effectiveness of technical analysis, there are several reasons to consider using this methodology as a tool for investing in financial markets. 1. It provides insight into market sentiment and trends. Technical analysis provides investors with insight into market sentiment and trends. By analyzing historical prices and volumes, technical analysts can identify patterns and trends that can signal whether a security is overbought or oversold. This information can be useful for making informed decisions about market entry or exit. For example, technical analysts can use moving averages, trend lines or other technical indicators to determine the overall trend of a security. If a security is in an uptrend, technical analysts may look for buying opportunities on dips or declines. Conversely, if a security is in a downtrend, they may look for opportunities to sell or short sell the security. 2. Helps identify key support and resistance levels. Technical analysis helps investors identify key support and resistance levels in the market. Support and resistance levels are price points where the price of a security may experience buying or selling pressure. Identifying these levels can help investors make informed buying or selling decisions. For example, if the price of a security is approaching a key resistance level, technical analysts can look for signs of an outbreak, where the price breaks through the resistance level and continues its upward movement. Conversely, if the price of a security is approaching a key support level, technical analysts may look for signs of a breakout as the price breaks through the support level and continues its downward movement. 3. It can be used in conjunction with other forms of analysis. Technical analysis can be used in conjunction with other forms of analysis, such as fundamental analysis. Fundamental analysis involves analyzing a company's financial statements, industry trends and other economic indicators to determine its intrinsic value. Technical analysis can complement this approach by providing insight into securities' price movements and potential trends. For example, if a fundamental analyst determines that a company's earnings are expected to increase significantly over the next year, a technical analyst can use charts and other technical tools to identify potential support and resistance levels, as well as key trend lines that can indicate whether the securities are in an upward or downward trend. 4. It helps manage risk. Technical analysis can also help investors manage risk. By identifying key support and resistance levels, investors can set stop-loss orders to limit their potential losses if the price of a security moves against them. Technical analysis can also be used to identify potential trends and patterns that may indicate a change in market sentiment, allowing investors to adjust their positions accordingly. For example, if a technical analyst identifies a potential double peak formation, where the price of a security reaches a high level twice and fails to break through it, he or she may look to sell, as this indicates a change in market sentiment from bullish to bearish. 5. Provides a common language for traders and investors. Technical analysis provides a common language for traders and investors. By using charts, graphs and other technical tools, traders can communicate their ideas and strategies more effectively. This can be particularly useful in a fast-paced trading environment, where quick decision-making is crucial. For example, if a trader identifies a potential breakout on a chart, he can communicate this to other traders using technical terms such as resistance, support and trendline. This allows traders to quickly understand the trader's strategy and potentially act on it if they agree with the analysis. 6. It offers a flexible approach to investing. Technical analysis offers a flexible approach to investing. While fundamental analysis requires a deep understanding of a company's finances and industry trends, technical analysis can be used to analyze any security, including stocks, bonds, commodities and currencies. This makes it a valuable tool for traders and investors who want to diversify their portfolios and take advantage of market opportunities across asset classes. Technical analysis also allows traders to adjust their strategies based on changing market conditions. For example, if the price of a security is volatile, technical analysts can adjust their stop-loss orders to limit potential losses if the price of the security moves against them. They can also adjust position sizes to take advantage of potential price fluctuations while managing their risk. 7. It can be used to trade short-term or long-term trends. Technical analysis can be used to trade short-term or long-term trends. Short-term traders can use technical analysis to identify intraday trends and patterns, while long-term traders can use it to identify potential trends over several months or even years. This versatility allows investors to tailor their strategies to their investment goals and risk tolerance. For example, a short-term trader may use technical analysis to identify potential investment opportunities within a day or a few hours. He or she may use indicators such as moving averages, oscillators and trendlines to identify potential entry and exit points based on the movement of securities prices. On the other hand, a long-term trader may use technical analysis to identify potential trends over several months or years. He or she can use charts and other technical tools to identify key support and resistance levels and potential trend lines that can indicate whether a security is in an uptrend or downtrend. This information can prove useful in making informed decisions about market entry or exit. In conclusion, technical analysis is a valuable tool for traders and investors who want to make informed decisions based on historical price and volume data. By providing insights into market sentiment and trends, identifying key support and resistance levels, and taking a flexible approach to investing, technical analysis can help traders manage risk, diversify their portfolios and take advantage of market opportunities across asset classes. 🚀 If you appreciate my work and effort put into this post, I encourage you to leave a like and follow on my profile. 🚀
OANDA:XAUUSDEducation
by InvestMate
12
This is my ideal entry model for XAUUSDGood afternoon gold gang! hope you're having a good weekend. I thought id share with you my favourite entry set up for gold which is proven to be over 80 percent accurate according to my data. Im looking for a strong close outside a major level .. by strong i meant 30 pips there abouts .. then the candle to close .. the next candle to wick down to retest the level .. then enter on the break of the previous candles high. Its as simple as that! .. there are other things involved but ill go through them with you in time, so make sure to follow along!! Ill be back this evening with an outlook for tonights asian and tomorrows london and ny sessions Tommy
OANDA:XAUUSDEducation
by tommyXAU
3
Trading Divergence Divergence is one of the well-known and widely used methods for determining price reversal areas, whether positive or negative and thus helps to determine entry or exit areas 📉📈 Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction. There is positive and negative divergence. Positive divergence indicates a move higher in the price of the asset is possible. Negative divergence signals that a move lower in the asset is possible. Divergence is one of the many trading methods that we use to build an integrated strategy, and of course, we can use it in any time frame we want ✍️
BITSTAMP:BTCUSDEducation
by Mr_HaMza_
📊 Harmonic Patterns Cheat SheetHarmonic Patterns use the identification of quantified chart price action structures that have specific and consecutive Fibonacci ratio alignments that form the visual structures. Harmonic patterns calculate the Fibonacci levels of the price patterns to identify high probability reversal points on the charts. This method believes that harmonic patterns or cycles repeat on charts in cycles repeatedly. The key to using this strategy is to identify these patterns and to use them for creating good risk/reward ratio entries and to exit when a profit target is reached. Positions are taken based upon the odds that the same historic patterns will repeat after entry. 🔹 Butterfly The structure of the Butterfly pattern requires a specific alignment of Fibonacci measurements at each point within the structure. Most important, a mandatory 0.786 retracement of the XA leg as the B point is the defining element of an Ideal Butterfly Pattern and it acts as the primary measuring point to define a specific Potential Reversal Zone. In many ways, the Ideal Butterfly Pattern is like the Gartley Pattern because it requires a specific B point retracement and possesses a tighter array of Fibonacci ratios within the structure. Specifically, the Butterfly incorporates a 1.27 XA projection with a “tame” BC projection, which is usually only a 1.618. In addition, the Butterfly usually possesses an equivalent AB=CD pattern or an alternate 1.27AB=CD pattern. Although the equivalent AB=CD is a minimum requirement, valid Butterfly structures rarely exceed the alternate 1.27 AB=CD completion point. 🔹 Shark The Shark Pattern is dependent upon the powerful 88.6% retracement and the 113% Reciprocal Ratio, works extremely well retesting prior support/resistance points (0.886/1.13) as a strong counter-trend reaction. Represents a temporary extreme structure that seeks to capitalize on the extended nature of the Extreme Harmonic Impulse Wave. Demands immediate change in price action character immediately following pattern completion. Extreme Harmonic Impulse Wave utilized depends upon location of 88.6% level – these are minimum requirements. Requires an active management strategy to capture high probability profit segments. 🔹 Gartley The important features of the Gartley are the specific location of the various points: X,A,B,C and D. The X-A leg is the largest price move in the pattern. It is followed by a counter move of A to B. The first leg, A to B, sets up the potential AB=CD, which is crucial to the completion of the pattern and to the indication of the reversal zone. After a brief and smaller B to C retracement, the C to D leg is established. A precise calculation of the AB=CD will provide a significant potential reversal point. Ideal Gartley The ideal Gartley set-up will be defined by specific Fibonacci retracements. One of the most important numbers in the pattern is the completion of point D at the 0.786 of XA. Although the price action might exceed this number slightly, it should not exceed point X. The pattern is a nice set-up, especially with the convergence of an AB=CD. 🔹 Bat The Bat pattern is probably the most accurate pattern in the entire Harmonic Trading arsenal. The pattern possesses many distinct elements that define an excellent Potential Reversal Zone. The pattern typically represents a deep retest of support or resistance that can frequently be quite sharp. Quick reversals from Bat pattern PRZs are quite common. In fact, valid reversals from Bat patterns frequently possess price action that is quite extreme. The pattern incorporates the powerful 0.886XA retracement, as the defining element in the Potential Reversal Zone. The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The most ideal B point alignment is the 50% retracement of the XA leg. The B point is one of the primary ways to differentiate a Bat from a Gartley pattern. If a pattern is forming and the B point aligns at a 0.50 of the XA leg, it is likely to be a Bat. 🔹 Three Drive The three drives pattern consists of a series of higher highs or higher lows. It is similar to the ABCD pattern. The difference is that a Three drives pattern is made of 5 legs, while an ABCD pattern has only 4. Three-Drives is a reversal pattern, so it signals an upcoming change in a trend. Point A is at the 61.8% retracement of the drive 1. Point B is at the 61.8% retracement of the drive 2. Drive 2 is at the 127.2%-161.8% extension of A. Drive 3 is at the 127.2%-161.8% extension of B. You can enter the market when you are sure that the market has formed the point B (buy in a bearish Three-Drive and sell in a bullish Three Drive). Take Profit should be around the 127.2%-161.8% extension of B. 🔹 Cypher The Cypher pattern, which can be either bullish or bearish, has five points (X, A, B, C, and D) and four legs (XA, AB, BC, and CD). Like any other harmonic pattern, the theory behind the Cypher chart pattern is that there is a strong correlation between Fibonacci ratios and price movements. Eventually, the market is expected to reverse from point D after the four market swing wave movements – X to A, A to B, B to C, and C to D. B point retracement of the primary XA leg ranges between 38.2% to 61.8% Fibonacci levels. C point is an extension leg with a Fibonacci ratio that should be between 127.2% to 141.4% of the primary XA leg. D point should break the 78.6 retracement level of XC. 🔹 AB=CD In this pattern, the A to B leg is the first price move. After a brief retracement from point B to point C, the pattern will complete the C to D leg, which is the same length as AB. Simply, after the AB and BC legs have been established, you project the AB length from point C… Although the price action will not always be exactly equivalent, the AB=CD legs usually will be close enough to determine the reversal points. Sometimes, this pattern will be exact but I usually wait for the CD leg to at least equal the AB leg. The Fibonacci numbers in the pattern must occur at specific points. In an ideal AB=CD Pattern, the C point must retrace to either a 38.2% at a minimum to validate the structure. The maximum retracement of the AB leg is an 88.6% level that defines a less extreme AB=CD pattern formation but still valid. 🔹 Crab The Crab is a distinct 5-point extension structure that utilizes a 1.618 projection of the XA leg exclusively. This is the most critical aspect of the pattern and the defining level in the Potential Reversal Zone (PRZ). The extreme (2.618, 3.14, 3.618) projection of the BC compliments the 1.618 XA extension. In addition, the Crab primarily utilizes an alternate AB=CD to compliment the PRZ. Although a minimum AB=CD completion is necessary for a valid structure, the alternate 1.27 or 1.618 calculation are the most frequent cases. The 1.618 AB=CD pattern is the most common alternate calculation utilized in the structure. It is important to note that the alternate AB=CD pattern within the Crab is the least important number in the PRZ. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
Fibonacci Retracement Levels In Forex TradingBoth novice and seasoned traders use Fibonacci levels as one of the most common and universal strategies when trading forex and other markets. It is a well-known fact that market prices incline toward levels where the bulk of market orders are gathered. Such levels can be found and predicted using a variety of ways. Systems for trading are built on a variety of levels. Since traders first realized that the price fluctuations of some assets frequently followed the Fibonacci number sequence, the Fibonacci levels have been employed in trading. The standard Tradingview trading platform, which is currently the most well-known and in demand, includes the tool because of how useful it is. Leonardo Fibonacci, who was born in ancient Italy, discovered a straightforward numerical sequence that is utilized globally and is consistent with a wide range of natural occurrences. The order is as follows: 0 followed by 1, then 1 (0+1), then 2 (1+1), then 3 (1+2), followed by 5, then 8 (3+5), etc. It appears that the Fibonacci sequence is the sum of the two numbers before it. An intriguing ratio may be calculated using these numbers: 0.618 is the result of dividing the first by the second (regardless of which of the numbers in the sequence are taken). And you get 0.382 when you split the numbers by one. The "golden ratio" is this set of fractions, and it appears frequently in nature, a striking example is a spiral like the seeds in a sunflower. The following are the trading-related Fibonacci correction levels: 0.236, 0.382, 0.500, 0.618, and 0.764. Levels of expansion are 0; 0.382; 0.618; 1.000; 1.382; and 1.618. It makes no sense for traders to manually calculate any of these figures, which are all calculated from the sequence. The key is to comprehend how they operate, what they are used for, what data they offer, and how to make effective use of them when trading. Special indicators that automatically draw lines on the chart or symbols in the trading platform are used while trading with Fibonacci levels. Retracement levels can be utilized for a number of purposes, such as support and resistance, to start trades, and to set stop orders. The usage of extension levels by traders for take-profit placement. Based on swings, or candles with at least two upper highs or upper lows on the left and right, Fibonacci levels can be applied to a chart. Additionally, bear in mind that Fibonacci levels for forex are a trending technique and are not applied during periods of consolidation. When the trend is upward, the price tends to retreat from Fibonacci-based resistance levels; the opposite is true for downtrends and support. Fibonacci Levels in Forex: How to Use Them Almost all charting applications contain Fibonacci retracement levels. Fibonacci lines are regarded as the most flexible and understandable option, however others also use fan lines, arcs, and time periods as typical tools. What do you need to know about Fibonacci numbers in order to trade? Values are calculated as 23.6, 38.2, 50.0, 61.8, and 76.4% on a scale of 0 to 100. The primary signal for foreseeing likely future price fluctuations is these ratios (prices often bounce back from levels). The indicator shows levels on the price chart and allows forecasting of future price changes.If you want to manually trade using the price chart or the software, you can select to display correction levels. To do this, drag the cursor from the bottom point of the trend to the top point. There will be five horizontal lines that display 0, 38.2, 50, 61.8, and 100% (an additional line showing 23.6% can be added). Depending on whether Fibonacci is trading above or below the lines, the lines can be utilized as support or resistance levels. The levels activate more frequently as the time span becomes longer. Finding a downward trend, appropriately stretching the Fibonacci lines, waiting for confirmation, and placing an order are the essential duties of a trader. Numerous strategies for using numerical series in trading exist. How Fibonacci Levels Work And How To Use Them In Trading Trading professionals can examine the changes in asset values by using Fibonacci numbers that are displayed as lines on the chart. As a result, resistance/support levels are established, and the degree of a trend movement's already-started corrective is examined. The price typically follows the guidelines of key levels on the Fibonacci lines. Therefore, there is a strong likelihood of a price reversal at the level, for instance, if the price crosses the line. Fibonacci retracement levels are particularly helpful for discovering pullback levels, for establishing the conclusion of a pullback, and for the continuation of price movement along with the trend because pullbacks are a natural part of every trend. The key correction levels are created by the interrelations between a trend and a correction shown by Fibonacci levels, which have recovery probabilities of 38%, 50%, and 62%. It only takes placing a grid over critical spots to see that pivotal price levels frequently cross Fibonacci percentage lines. Fibonacci levels and graphical patterns can be used to coincidentally determine market entrance and exit points. Opening profitable trading positions after a collapse or rebound from a level is beneficial. Trading professionals frequently employ Fibonacci lines to place Stop-Loss and Take-Profit orders. To avoid being caught by an unintentional pullback, it is preferable to position the Stop-Loss order above the levels (for the recovery from which the trader is counting). Take-Profit levels are based on Fibonacci extension.Remember that on a price chart, the support/resistance areas that coincide with the Fibonacci net levels are viewed as further support for the lines' significance. This instrument is the foundation of many trading techniques. Beginners should be aware that there is no definitive interpretation of the Fibonacci technique; it is merely a point of reference. Trading systems frequently incorporate Fibonacci levels with other technical analysis tools because this technique can occasionally fail to corroborate the signals. Importance Of Different Fibonacci Levels Expert traders claim that not every Fibonacci level behaves the same way on a price chart. Before using the instrument for trading, some regularities should be studied. Fibonacci levels and their importance in trading: 23.6 - weak, a clear confirmation is required to use it in trading. 38.2 - an important level, the price of the asset bounces from it for further consolidation. 50 is intermediate in importance between the two previous levels and gives a high probability of trigger. 61.8 - strong, like 38.2. 76.4 - 80.9 is a strong level as well. The likelihood of a profitable trade is quite high if we consider the strength of the levels, trade in line with the trend, weed out erroneous signals using a straightforward extra indicator, and avoid using low time frames. Additionally, it's critical to remember risk management and trading psychology's fundamental principles. Advice for using 38%, 50%, and 62% levels effectively Stretched between the trend's minimum and maximum, a grid is drawn on the graph. On the charts, three to four separate time frames with longer value movements can be displayed in various colors. Numerous Fibonacci levels will be displayed on the graph, allowing for analysis. Usually several of them exactly coincide on various time scales, therefore they are regarded as significant support/resistance levels. These three can be utilized to enter positions and exit open ones because fibonacci numbers have potentially important levels. These price retreat levels by themselves are not what drives price movement; if this line doesn't have the appropriate support, it will simply go to the next. More accurate signals are produced by combining Fibonacci with other tools (such as Moving Averages, trading channels, reversal patterns, etc.). A significant resistance/support level is 62%. When it is attained, the price frequently starts to vary erratically. When the price surges past the 62% level and moves on to the 70–75% retracement level (before returning to the 62% level), you can place an order. When two to three further crossover signals are received, trades can be initiated from deep retracement levels. It is preferable to avoid entering if there are no cross confirmations. It's also a good idea to keep in mind that once the correctional movement reaches the 62% pullback level, it may go on to reach 100% in the chosen time frame and stop the trend. Fibonacci Levels: How to Use Them in Forex Trading Fibonacci levels can be used relatively easily. The most crucial levels in forex trading are 23.6% and 38.2%, 61.8% and 76.4%. They are used to identify price pullbacks; when one appears on the chart, one should wait for a favorable price before joining the impulse (enter the movement at the moment of a pullback). When there is a significant market movement, the asset's price can drop by up to 23.6%, 38.2%, or even 50%. These ranges are regarded as ideal. Price increases of 61.8% or more may signal the beginning of a trend reversal. The Fibonacci levels should be drawn correctly: -Finding the price impulse. -Plotting the grid on the chart. -The expectation of a pullback to 23.6% or 38.2% or 50% to enter the market. -When there is no pullback, the price keeps moving, updating the lows/maximums, it is worth pulling over the grid based on new local extrema. -In this case, it is important not so much to determine the levels as to understand whether the current price movement is a correction concerning the previous one or the beginning of a new trend. When Fibonacci Correction Levels Do Not Work Fibonacci levels are not 100% reliable signals; they are more like rough guidelines that give information about the movement that is likely to occur. Fibonacci levels can also be broken occasionally, just like support/resistance levels can. There are many exceptions to the rules, therefore it is advisable to check the signals with additional tools and to take the maximum precautions when opening any position. The levels need to be carefully worked, refined, and filtered on a regular basis. Sometimes levels might be crossed, and the bounce occurs at 61.8 instead of 50%; other times, the price skips levels and views essential ones as weak and unimportant ones as important. Because of all these features, it is important to be able to combine different tools in a strategy and constantly gain experience trading with the selected tools. Conclusion The suggested strategy broadens the potential uses for trading with Fibonacci levels. You can use it to your advantage so that practically any corrective movement—not just ones that conclude at 38.2% or 61.8%—will be beneficial. You must be able to accept what the market offers you since it doesn't always move that well.
Education
by FOREXN1
15
📊 Chart Patterns Cheat SheetPatterns are the distinctive formations created by the movements of security prices on a chart and are the foundation of technical analysis. A pattern is identified by a line connecting common price points, such as closing prices or highs or lows, during a specific period. Technical analysts seek to identify patterns to anticipate the future direction of a security’s price. These patterns can be as simple as trendlines and as complex as double head-and-shoulders formations. 🔹 Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during a downtrend, it suggests that the price will move up later on. 🔹 Continuation chart patterns are those chart formations that signal that the ongoing trend will resume. Usually, these are also known as consolidation patterns because they show how buyers or sellers take a quick break before moving further in the same direction as the prior trend. Trends don’t usually move in a straight line higher or lower. They pause and move sideways, “correct” lower or higher, and then regain momentum to continue the overall trend. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
7
Harmonic Patterns of Technical Analysis !!!👨‍🏫In this post, I tried to show you the most important Harmonic Patterns of Technical Analysis . These patterns are more valid at higher timeframes. Please do not forget the ✅ ' like' ✅ button 🙏😊 & Share it with your friends, Thanks, and Trade safe. What is Harmonic Pattern ❗️❓ Harmonic patterns are chart patterns that form part of a trading strategy, and they can help traders to spot pricing trends by predicting future market movements. They create geometric price patterns by using Fibonacci numbers to identify potential price changes or trend reversals Harmonic Patterns of Technical Analysis: 🦇 Bat 🦇 Harmonic Pattern: The Bat pattern is a retracement and continuation pattern that occurs when a trend temporarily reverses its direction but then continues on its original course. It gives you the opportunity to enter the market at a good price, just as the pattern ends and the trend resumes and has a bullish and bearish version. It is similar to the Gartley pattern but completes at an 88.6% Fibonacci retracement of the X-A leg. A true Bat pattern will include each of the following: the AB=CD pattern or an extension of this pattern; a 161.8% to 261.8% Fibonacci extension of the B-C leg; an 88.6% Fibonacci retracement of the X-A leg. One way of trading a bullish Bat pattern is to place your buy order at point D (the 88.6% retracement of the X-A leg) Place your stop loss just below point X. Draw a new Fibonacci retracement from point A-D of the completed pattern and take profit at the point where the price will have retraced 61.8% of the distance between A-D. To trade a bearish Bat pattern (a short/sell trade), simply invert the pattern and your orders. 🦇 ALT Bat 🦇 Harmonic Pattern: The Alternate Bat Pattern is a precise harmonic pattern™ discovered by Scott Carney in 2003. The pattern incorporates the 1.13XA retracement, as the defining element in the Potential Reversal Zone (PRZ). The B point retracement must be a 0.382 retracement or less of the XA leg. The Alternate Bat pattern™ utilizes a minimum 2.0 BC projection. In addition, the AB=CD pattern within the Alternate Bat is always extended and usually requires a 1.618 AB=CD calculation. The Alternate Bat pattern™ is an incredibly accurate pattern that works exceptionally well in the RSI BAMM divergence setup. 🦋 Butterfly 🦋 Harmonic Pattern: The Butterfly is a reversal pattern that allows you to enter the market at extreme highs or lows. It is similar to the Gartley and Bat patterns but the final C-D leg makes a 127% extension of the initial X-A leg, rather than a retracement of it. To trade the Butterfly, enter the market with a long or short trade at point D of the pattern – the price should reverse direction here. Place your stop loss just below (bullish trade) or above (bearish trade) the 161.8% Fibonacci extension of the X-A leg. For an aggressive profit target, place your take profit order at point A. For a more conservative profit target, place your take profit order at point B. 🥇 Gartley 🥇 Harmonic Pattern: The Gartley pattern is a retracement pattern that occurs when a trend temporarily reverses direction before continuing on its course. It includes the AB=CD pattern in its structure and gives you the chance to go long (bullish Gartley) or short (bearish Gartley) at the point where the pattern completes and the trend resumes. It relies on Fibonacci levels, which determine how far price retraces or extends during the formation of the patterns – MetaTrader 4 can automatically add these levels to your chart. To trade using the Gartley pattern, place your buy order at the point where the C-D leg achieves a 78.6% retracement of the X-A leg. Place your stop loss just under point X. Draw a new Fibonacci retracement from point A-D of the completed pattern and take profit at the point where the price will have retraced 61.8% of the distance between A-D. 🦀 Crab 🦀 Harmonic Pattern: The Crab is a reversal pattern that allows you to enter the market at extreme highs and lows. It is similar to the Butterfly pattern but the final C-D leg makes a deeper 161.8% extension of the initial X-A leg. To trade the Crab, enter the market with a long or short trade at point D of the pattern – the price should reverse direction here. Place your stop loss just below (bullish trade) or above (bearish trade) point D. For an aggressive profit target, place your take profit order at point A. For a more conservative profit target, place your take profit order at point B. 🦈Shark🦈 Harmonic Pattern: The structure of a shark pattern has an impulse leg (X-A) and a retracement leg (B). In this case, the retracement has no particular value. The continuation leg (C) has to get to a Fibonacci extension of 113 percent of the B-A leg, but shouldn’t go beyond the 161.8 percent mark, a retracement for X-C follows afterward. The shark pattern so obtained has to get to an extension of 88.6 percent of this retracement, but should not be more than 113 percent. The next Fibonacci extension will be B-C, which is an extension of the A-X leg, within the 161.8 to 224 percent range. But as far as entering a trade goes, it is different from other harmonic patterns, for example: The entry point should be at an extension of 88.6 percent of the O-X leg, and the stops will follow up at point C Targets can be at 61.8 percent of the B-C leg It is not difficult finding the zone to enter trades. This is the area where the X-C Fibonacci retracement and the B-C Fibonacci extension overlap The main factor that differentiates between the harmonic shark and other patterns is that it depends on the 88.6 percent and the 113 percent reciprocal ratios. Once the price point at D is created, prices decline or rally very quickly. Therefore it needs active management of the trade. In other words, you simply cannot set up the harmonic shark pattern and come back a while later to trade it. By that time price would have gone a major distance. 3️⃣ Three 3️⃣ Drives Harmonic Pattern: The three drives pattern is a reversal pattern designed to highlight times when the market is exhausted in its current move. The pattern has a bullish version and a bearish version. The pattern is composed of three waves or drives that complete at a 127% or 161.8% Fibonacci extension. The trade is entered in the opposite direction to the overall move when the third drive is completed at a 127% or 161.8% Fibonacci extension. The stop loss goes below the 161.8% Fibonacci extension for a buy and above the 161.8% Fibonacci extension for a sell. Draw a new Fibonacci retracement from the start of the pattern to the completion point of the pattern and take profit at the point where the price will have retraced 61.8% of that distance. 🔁 AB=CD 🔁 Harmonic Pattern: The AB=CD pattern helps you identify when a price is about to change direction so that you can buy when prices are low and sell when they are high. The pattern consists of three legs, with two equal legs labeled AB and CD, together they form a zig-zag shape – hence its nickname, the 'lightning bolt'. It can be used in any financial market and in any time frame. When a market is trending upwards, the first leg (A-B) is formed as the price rises from A to B. At point B, the price switches direction and retraces down sharply to form the B-C leg – ideally a 61.8% or 78.6% retracement of the price increase between points A and B. The price then continues its original uptrend, forming a C-D leg that should be the same length as the A-B leg. Once you have decided where you think the pattern will complete (point D), you should place a sell order at this point and look to profit from a price reversal. Place your stop loss a few pips above point D. Drawing a new Fibonacci retracement from point A to D of the completed pattern and a take profit at the point where the price will have retraced 61.8% of the distance between A and D. You would approach a downtrending market with a bullish (buy) trade at point D in exactly the same way – the pattern and your trading orders will simply be reversed.
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BITSTAMP:BTCUSDEducation
by pejman_zwin
57
How to trade high impact newsIn this video, I explain a strategy for trading high-impact news that can be used on all asset classes, rinse and repeat. Find the best setups. for shorting, you want to be up high for the best probabilities of higher asymmetrical risk to reward opportunities. If you are in the middle of the day's range or even towards the lows, you still want to be up high in the session you are trading but be mindful that you may not have a runner so your targets will be shorter.
PEPPERSTONE:XAUUSDEducation
by Ross-J-Burland
🔠 The ABCD PatternThe ABCD is a basic harmonic pattern. All other patterns derive from it. The pattern consists of 3 price swings. The lines AB and CD are called “legs”, while the line BC is referred to as a correction or a retracement. AB and CD tend to have approximately the same size. A bullish ABCD pattern follows a downtrend and means that a reversal to the upside is likely. A bearish ABCD pattern is formed after an uptrend and signals a potential bearish reversal at a certain level. The rules for trading bullish and bearish ABCD patterns are the same, you will just need to take into account the direction of the pattern you trade and the movement of the market it predicts. 🔷Classic ABCD The point C should be at 61.8%-78.6% of AB. The point D, in its turn, should be at the 127.2%-161.8% Fibonacci expansion of BC. Notice that a 61.8% retracement at the point C tends to result in the 161.8% projection of BC, while a 78.6% retracement at the C point will lead to the 127% projection. 🔷AB = CD Here CD has exactly the same length as AB. In addition, it takes the market the equal time to travel from A to B as from C to D. As a Result, AB and CD have the same angle. This type of ABCD pattern is seen quite often and is popular among traders. 🔷ABCD Extension ABCD extension refers to when CD is the 127.2%-161.8% extension of AB. CD can be even 2 times (or more) bigger than AB. There actually are some signs that can hint that CD will be much longer than AB. They are a gap after point C or big candlesticks near point C. 📊Trading with ABCD pattern The key thing you should remember is that you can enter the trade only after the price reached the point D. Study the chart looking at the price’s highs and lows. It may be helpful to use ZigZag indicator (Insert – Indicators – Custom – ZigZag) that marks the chart’s swings. Watch the price as it forms AB and BC. In a bullish ABCD, C must be lower than A and should be the intermediate high after the low at B. Point D must be a new low below B. When the market arrives at a point, where D may be situated, don’t rush into a trade. Use some techniques to make sure that the price reversed up (or down if it’s a bearish ABCD). The best scenario is a reversal candlestick pattern. A buy order may be set at or above the high of the candle at point D. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
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by QuantVue
2
HARMONICS TRADING Hi trader happy new year, Using the BTC chart I like to explain harmonics trading. Has been a while since i started to write a book and I just want to put together the best information out there in one to share with u. The BTC chart shows a gartley bearish pattern formed from Dec 2021 to Mar 2022. The price has reached all targets the way down, remaining the 200% XA: 13725.95. Is price hitting 200% XA: 13725.95? I don't know based on the Gartley pattern the trade is done, however could be a probability. I will post the PDFs below the idea so u can have a look.
COINBASE:BTCUSDEducation
by TradeChartPatternsLikeThePros
2
The Doube Bottom Pattern - Bullish PatternThe **Double Bottom** is a price action pattern that is indicative of a trend change once activated. Price needs to establish a bearish expansion towards the lows before reversing with an impulse. The impulse then needs to get sold into; this will create a retest of the previous low that must hold. Price action will establish a “W” structure which become a sign of demand that leads to a bullish expansion. Key Characteristics of the **Double Bottom** - Price Action must first establish a bearish expansion - The retest of the previous low most hold - A ‘W’ like formation will confirm demand at the lows
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1
HOW-TO: Auto Harmonic Pattern - BacktesterHi All, Here is a short video on how to use Auto-Harmonic-Pattern-Backtester-Trendoscope for building strategies using harmonic patterns. CAUTION: THIS IS NOT A STRATEGY AND SHOULD NOT BE FOLLOWED BLINDLY. WE ENCOURAGE USERS TO UTILISE THIS AS BACKTESTING TOOL FOR BUILDING THEIR STRATEGY BASED ON HARMONIC PATTERNS Notes about Strategy Properties Qty is percentage based and non leveraged. Since pattern size is not uniform, risk per trade is not uniform per trade as well. Default pyramiding is set to 4 - which means not all patterns will have trade if number of open trades is already 4 Key Settings Can be either long or short mode but not not both. This is due to pine limitations. Entry, Stop and Target settings along with Base are important in defining your strategy. External filters plays a major role in adding external elements to the strategy. This also enables users to build their own filters. More details in this video Strategy based alerts are different than custom alerts defined in settings. Custom alerts will fire for every pattern whereas strategy alerts will only fire upon generated trade signals. More details about Alert customisation is explained here . When setting alerts, please turn off displays - pattern drawing and tables. And also limit backtest to minimal bars. Please let me know if you have further questions.
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by Trendoscope
3
HEAD & SHOULDERS PATTERN AND A LIVE EXAMPLE IN AUDJPYHead & Shoulders pattern is popularized amount traders, the H&S is one of the first patterns traders come in contact with. H&S are formed in all time frames and in all markets. Here is an example of AUDJPY trading H&S in a Daily Chart. H&S are reversals patterns, they can be trade in all times frames but i like to use the H&S in smallest time frames as Price action reversal patterns, If I were trading other pattern than H&S the H&S in M30 for example would be a signal for me telling me it worth to take a trade amounts others trading methods.
OANDA:XAUUSDEducation
by TradeChartPatternsLikeThePros
Using Harmonic Pattern with Trend Following SystemHarmonic Pattern as system is known for finding possible reversal zones and hence assist in swing trading. But, most effective way of using harmonic patterns is in trend following. This can yield really amazing results when played with proper risk management. Conditions In trending market Established trend followed by pattern Trade Settings Enter on breaking out of pattern with 100% recovery Exit can be placed at farther distance or can also use trailing stop after certain profit. Need to be cautious on short trades as expectation of high risk reward may end up in negative territory. (Lowest price can be 0) Advantages Very high risk reward. Even with less number of wins, can get very high reward. Less slippage and commission Simple to trade and takes less human effort. Disadvantages Lower win ratio. (Does not impact profit) Longer trades need more patience
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by Trendoscope
3
HOW-TO: Wolfe Strategy [Trendoscope]Just made this short video to explain the concepts of Wolfe Strategy which I recently published. Wolfe wave is popular concept among option traders. However, I have made some tweaks in this strategy to standard wolfe pattern trade rules. Entry price based on breakout No moving target - using flat target. Entry is done based on risk reward Not time bound Intelligently decides whether to place stop order or limit order Few possible future improvements Make bidirectional trades possible Better filters to chose long and short trades or when to trade Lot can be improved on Wolfe scanner to identify more patterns Exit strategy - can introduce optional trailing Thanks for listening. Hope you enjoyed and learnt something from this :)
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by Trendoscope
4
Trading with Candlesticks Harmony - Above 80% Win RateIn this video I discuss how to use simple wave-analysis and how to use candlesticks harmony in 5 or 15 minutes time-frames to trade with success. This sterategy even works on 1 minute time-frames for some forms of countable harmonies... --- Gerald Mann was born Mr. Peiman Ghasemi on February 16, 1988. He got deported from Turkey to Iran where he is exit banned now. Alongside trading, he is also wishing to gain the freedom to leave the country. On the other side the silence of the related governmental departments of the U.S. is obvious. There is no answer.
SP:SPXEducation
by GeraldMann