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Harmonic Patterns

📊 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.
BITSTAMP:BTCUSDEducation
by pejman_zwin
56
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 ❤️
Education
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
Education
by AzizKhanZamani
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.
Education
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
Education
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 :)
Education
by Trendoscope
5
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
Elena_95 Gold Outlook 2023: The global economy at a crossroadsGold Outlook 2023: The global economy at a crossroads The global economy is at an inflection point after being hit by various shocks over the past year. The biggest was induced by central banks as they stepped up their aggressive fight against inflation. Going forward, this interplay between inflation and central bank intervention will be key in determining the outlook for 2023 and gold’s performance. Economic consensus calls for weaker global growth akin to a short, possibly localized recession; falling – yet elevated – inflation; and the end of rate hikes in most developed markets. In this environment which carries both headwinds and tailwinds for gold, our key takeaways are: ~Mild recession and weaker earnings have historically been gold-positive ~Further weakening of the dollar as inflation recedes could provide support for gold ~Geopolitical flare-ups should continue to make gold a valuable tail-risk hedge ~Chinese economic growth should improve next year, boosting consumer gold demand ~Long-term bond yields are likely to remain high but at levels that have not hampered gold historically ~Pressure on commodities due to a slowing economy is likely to provide headwinds to gold On balance, this mixed set of influences implies a stable but positive performance for gold That said, there is an unusually high level of uncertainty surrounding consensus expectations for 2023. For example, central banks tightening more than is necessary could result in a more severe and widespread downturn. Equally, central banks abruptly reversing course – halting or reversing hikes before inflation is controlled –could leave the global economy teetering close to stagflation. Gold has historically responded positively to these environments. On the flip side, a less likely ‘soft landing’ that avoids recession could be detrimental to gold and benefit-risk assets. Bumpy road ahead Economic growth: short sharp pain There are now many signs of weakening output due to the speed and aggressiveness of hiking moves by central banks. Global purchasing manager indices (PMI), now in contraction territory, indicate a deepening downturn across geographies, and economists are warning of a material recession risk Consensus forecasts now expect global GDP to rise by just 2.1% next year. Excluding the global financial crisis and COVID, this would mark the slowest pace of global growth in four decades and meet the IMF’s previous definition of a global recession – i.e. growth below 2.5%. Policy and inflation: higher for longer It is almost inevitable that inflation will drop next year as further declines in commodity prices and base effects drag down energy and food inflation. Furthermore, leading indicators of inflation tell a consistent story of a moderation. This brings us to the implications for monetary policy. The policy trade-off for nearly every central bank is now particularly challenging as the prospect of slower growth collides with elevated, albeit declining inflation. No central bank will want to lose its grip on inflationary expectations resulting in a strong bias towards inflation fighting over growth preservation. As a result, we expect monetary policy to remain tight until at least mid-year. In the US, markets expect the Fed to start cutting rates in the second half of 2023. Elsewhere, markets expect policy rates to come down more slowly than in the US, but by 2024 most major central banks are expected to be in easing mode. Macroeconomic implications for gold Gold is both a consumer good and an investible asset. As such, our analysis shows that its performance is driven by four key factors and their interactions: 1-Economic expansion – positive for consumption 2-Risk and uncertainty -- positive for investment 3-Opportunity cost – negative for investment 4-Momentum – contingent on price and positioning. These factors, in turn, are influenced by key economic variables such as GDP, inflation, interest rates, the US dollar, and the behavior of competing financial assets. Recession: portfolio ballast A challenging combination of reduced but still elevated inflation and softening growth demands vigilance from investors. The likelihood of recession in major markets threatens to extend the poor performance of equities and corporate bonds seen in 2022. US dollar: trending down After strengthening for nearly two years straight, the US dollar index (DXY) has recently seen a steep drop, despite continued widening of – both actual and expected – rate differentials. It seems that reduced demand for dollar cash was the likely culprit. Next year, we see a more complex dynamic driving the US dollar. First the shoring up of energy needs in Europe will, in the immediate future, continue to reduce pressure on the euro. Second, as central banks in Europe, the UK and Japan continue to take a more hands-on approach to their respective currency and bond markets some of the pressure on domestic exchange rates could ease. All things considered, the dollar is likely to be pressured particularly as falling inflation and slower growth take hold. And a dollar peak has historically been good for gold, yielding positive gold returns 80% of the time (+14% on average, +16% median) 12 months after the peak. Although currently very high in REER terms and likely one of the catalysts for the recent turn, the starting valuation for the DXY has been less important in determining the magnitude of gold returns. Regards: Elena_95 Merry Christmas
TVC:GOLDEducation
by ElenaMayi
2
Illan mask Elon Musk: The Federal Reserve's recent rate hike may go down in history as the most destructive in history News category: negative ⛔️ Summary : ▪️ Tesla CEO and Twitter boss Elon Musk says the Federal Reserve's recent rate hike "may go down as the most damaging date in history." The billionaire has called on the Federal Reserve to cut interest rates immediately, stressing that the US central bank is "drastically increasing the likelihood of a severe recession." ▪️ His warning was in response to a tweet by former investment manager Genevieve Roche-Dektor that "the Federal Reserve has never raised rates faster than this year." At the risk of being repetitive, this Fed rate hike may go down as the most damaging in history, Musk wrote. Roch Decker also included a chart with his tweet showing that the Fed has raised interest rates more and faster this year than at any other time in modern history. Musk also blamed the Federal Reserve for the loss of Tesla's market value. Investment adviser Ross Gerber tweeted last week: “Elon has now wiped $600 billion off Tesla's fortune and has yet to wipe anything from Tesla's BOD . This is completely unacceptable." Musk replied: Tesla is performing better than ever. We do not control the Fed. Here is the real problem. ▪️ This billionaire has warned several times about the dangers of raising interest rates by the Federal Reserve. Earlier this month, he warned that the recession would worsen if the Fed raised interest rates again. Then the Central Bank increased the interest rate by 50 points after four consecutive increases of 75 points. Last month, Musk warned that "the trend is worrisome" and stressed that the Fed "must cut interest rates immediately." He added: "They are strongly strengthening the possibility of a severe recession." The billionaire also previously said that he believes the recession will continue until the spring of 2024.
Education
by dr_bandarchi
Harmonic Pattern with Multiple Confluence for Point X and DThis is an example of regression channel with harmonic pattern. By using Simple OHLC Custom Range Interactive, we able make confluence point (blue) to get Point X of Bullish Butterfly. There are many confluence points (orange flag and teal table), which shows Point D of Butterfly starting to complete. For Point D, best to monitor price changes using RSI or other similar RSI (Cyclic RSI, etc). Indicator used : 1. Regression Channel Alternative MTF 2. HH-LL ZZ 3. XABCD Harmonic Pattern Custom Range Interactive 4. Simple OHLC Custom Range Interactive 5. Cyclic RSI High Low With Noise Filter
MYX:FKLI1!Education
by RozaniGhani-RG