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Harmonic Patterns

The Butterfly Pattern, Tutorial (Basic)The Butterfly pattern, is a harmonic pattern discovered by Bryce Gilmore using his Wave trader software program. The pattern structure was further refined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998. The Butterfly pattern must include an AB=CD pattern to be a valid signal. In general, the AB=CD Pattern will possess an extended CD leg that is 127.2% or 161.8% of the AB leg.
Education
by Cryptsyxalt
1
The difference - Double Top & Head and ShouldersHello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** What Is Double Top and Bottom? Double top and bottom patterns are chart patterns that occur when the underlying investment moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used in technical analysis to explain movements in a security or other investment, and can be used as part of a trading strategy to exploit recurring patterns. $$$ What Is a Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.
BITSTAMP:BTCUSDEducation
by Saeed966
8
Risk management in trading €$¥Hello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** What is market risk? Market risk is the capacity for your trades to result in losses due to unfavourable price movements that affect the market as a whole. There are several factors that can cause market risk, but movement in any of the following can exert major pressure: Stock prices Interest rates Foreign exchange rates Commodity prices What is liquidity risk? Liquidity risk is the possibility that you may be forced to trade an asset at a worse price than you anticipated. For example, when trying to sell an illiquid stock you may struggle to find a buyer, meaning that you have to sell your stock for less than its current market value. In some markets, liquidity risk can even mean that your trade negatively affects the price of the asset you are buying or selling. This is generally more of an issue in emerging or low-volume markets, where there may not be enough people in the market to trade with. How to manage your risk Risk management is the process of identifying, analysing and reducing risk in your trading decisions. Usually, it involves developing a trading plan that helps you decide what to trade, when to trade and where to place your stop losses. Here are three tips on how to manage risk: 1. Assess risk vs return In general, trading strategies focus on weighing up a trade’s potential risk against its potential return. If a trade has greater risk, it should carry the chance of a greater return to make that risk worthwhile. For example, government bonds are considered a safe, low-risk investment – but when compared to corporate bonds, they offer lower rates of return. This is because the risk of investing in a corporate bond is higher, so to compensate for the added risk investors are offered a higher rate of return. 2. Understand each market’s risks It’s important to ensure you understand the factors that influence different markets, so you can base your dealing strategies on relevant information. Improve your success rate by learning more about the markets you’re dealing on and exploring new strategies. Our trading skills section is a great place to learn about all the markets we offer. 3. Keep learning Learning to trade successfully while managing your risk is a continual process – and one of the best ways of ensuring that you are always improving is by starting a trading diary. By keeping track of which trades and strategies have worked in the past, you can build on your successes and learn from your failures.
OANDA:XAUUSDEducation
by Saeed966
6
Head and shoulders typesHello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** The head and shoulders chart pattern is a popular and easy to spot pattern in technical analysis that shows a baseline with three peaks, the middle peak being the highest. The head and shoulders chart depicts a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end. The pattern appears on all time frames and can, therefore, be used by all types of traders and investors. Entry levels, stop levels and price targets make the formation easy to implement, as the chart pattern provides important and easy to see levels.
Education
by Saeed966
8
Ascending Channel & Descending ChannelHello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** One of the best methods of technical analysis at the beginning is to know the direction where it is heading Including the ascending channel and the descending channel pattern When drawing an ascending or descending channel, the tops of the bottoms are greater than the peaks and bottoms behind them, and usually there are three peaks or troughs, and then the break comes after To properly draw the pattern, link the tops and bottoms of each other so that the pattern is formed This in a nutshell
BITSTAMP:BTCUSDEducation
by Saeed966
10
Classic graphicsHello Please support this idea with LIKE if you find it useful. Classic technical analysis is one of the best analyzes for finding a buy or sell opportunity So I drew some of the most common technical drawings used in the analysis. ***** 1 ) What Is a Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. * A head and shoulders pattern is a technical indicator with a chart pattern described by three peaks, the outside two are close in height and the middle is highest. * A head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. * The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. 2 ) What is Inverse Head And Shoulders? An inverse head and shoulders, also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. 3-4 ) What is a Sideways Trend? A sideways trend is the horizontal price movement that occurs when the forces of supply and demand are nearly equal. This typically occurs during a period of consolidation before the price continues a prior trend or reverses into a new trend. A sideways price trend is also commonly known as a "horizontal trend." * A sideways trend is the horizontal price movement of a stock between resistance and support levels that occurs when the forces of supply and demand are balanced. * Traders can profit from sideways trends in several ways, from looking for confirmations of a breakout or breakdown to using stock options to placing stop-loss orders when the price nears resistance levels. 4 ) What is a Descending Triangle? A descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that the downward momentum is building and a breakdown is imminent. Once the breakdown occurs, traders enter into short positions and aggressively help push the price of the asset even lower. 4-5 ) What is an Ascending Triangle? An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming. 7 ) What is a Descending Channel? A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend. Officially, the space between the trendlines is the descending channel, which falls under the broad category of trend channels. 8 ) What Is Rising (Or) Ascending Channel Chart Pattern? As you can notice the rising channel pattern moves upwards, it is also called as Bullish Channel pattern. It comprises of two lines parallel to each other with points shaping higher highs and higher lows therefore consequential in bullish channel or upside channel. The price is limited between the two trend lines. 9 ) Support and resistance role reversal A key concept of technical analysis is that when a resistance or support level is broken, its role is reversed. If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role.
Editors' picks
Education
by Saeed966
44
Three Drives Harmonic Chart PatternThe three drivers chart pattern is a well known harmonic chart pattern that acts as a trend reversal. The pattern consists of either three higher highs or lower lows which is an indication of a potential trend reversal. There are two different types of three drives pattern: Bullish Bearish Bullish Three Drives Pattern There are three different waves in the pattern as the name suggests, three drives. With the subsequent drives, there are lower lows that are being formulated in the pattern with three different bottoms. Once the third wave is completed and the low point has been observed, a buy signal can be created with formulating the Fibonacci levels and generating the buy signal with a Fibonacci extension of 1.27 or 1.628. For the stop-loss and take profit levels, you can formulate a new Fibonacci level with the start and end of the pattern and keep 161.8% as the stop-loss level and 61.8% as the take profit level. The important point that confirms the drives is a similar time period between the uptrend after the 1st wave and 2nd wave also a similar time period between the 2nd wane and 3rd wave for the downtrend. The bearish three drives pattern is completely opposite of the bullish three dives pattern and can be spotted in a similar manner. The three drives pattern belongs to the family of harmonic patterns and thus makes use of not just chart patterns but also technical retracement levels to validate the pattern. A three-drive pattern that does not meet the retracement criteria can be discarded. The pattern is therefore qualitative as well as quantitative in nature. ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
5
📖 Japanese candlestick charts. Part 1We are beginning a new theme “Trading strategy’s most important technical analysis tools”. Today we are going to tell you about the most important things in trading, candlesticks! 📌Japanese candlestick charts were developed in the 17th-18th centuries by the Japanese rice traders. They were introduced to trading by Steve Nison in the 20th century. It's a simple, but very important tool for technical analysis, as these candlesticks contain different information about the market. I guess that everyone in this channel already knows how to read candlesticks, so we are going to talk about their usage. ⚡️First — its form, this shows market participants’ state and mood. It could show their doubts/balance (doji) or trend exhaustion (graph looks like a hammer or a falling star). There are only a few main models, and we are going to talk about them in the future. However, you can start learning about them yourself by saving the screenshot below. ⚡️Candlesticks show reversals and it is what we need in trading. By trading reversals you are catching the trend, it could be short or long. However, you will be able to understand when the trend is exhausting and you will be able to leave trade when there is a reversal. In addition to the presence of the reversal pattern itself, the preceding trend is important, you have to have at least 3 candles. If there isn’t a clear trend, then there is no trade. Additionally, we are looking at the candlesticks’ volumes and how trading continues after the last reversal pattern. We are entering position not on the reversal candlesticks, but on the following ones after the trade (or candlestick above/below fixation, depending on a situation)! Reversal setup is a needed factor, but it's not enough to enter a trade. 📌 And these are not all of the necessary conditions for implementation! You have to understand that you are getting rid of risky positions that not only will give you headache but could also result in losses. You should only trade in situations where you are confident in, the confidence is achieved by fulfilling very certain conditions, of which only few people in the market know about. Continued in part 2.
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Education
by I.T.Analytics
24
The Cup and Handle Chart PatternCup and Handle Chart Pattern The cup and handle chart pattern is a bullish continuation pattern that marks a consolidation period followed by a breakout. It can help to predict future price movements. A cup and handle chart pattern is comprised of three main components: -A prior trend, as to qualify as a continuation pattern it has to have a prior trend -The cup, "U" shaped resembling a bowl or rounding bottom with almost equal heights on the either side -The handle, as the cup formation is completed, a trading range develops on the right-hand side forming the handle, usually 1/3rd of the size of the prior advance In this chart pattern, there is a prior trend followed by a cup forming with almost of the equal heights on either side with a low in observed nearly in the middle. After the low, the rice consolidates to reach near the high of the start of the cup, followed by a pullback forming a handle, similar in shape to a flag or pennant. Once the handle reaches back to the same level of the cup highs, a breakout is expected, confirming with spikes in the volume observed. Traders can use the cup and handle to buy when the breakout is observed i.e. at the candle when price breaks the highs formed by the cup. For confirmation, traders can use the sudden increase in volume as the cup and handle completes and the breakout is observed. Traders can put stop loss at the low of the handle in order to minimize the losses if the pattern fails, There are few limitations as well to the Cup and Handle Pattern: -Can be difficult to be observed for novice traders -Often might require assistance from other technical indicators -The cup and handle might take extensive periods to play out and complete the formation ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:ETHUSDEducation
by Mudrex
7
The Gartley Pattern, Tutorial (Basic)The Gartley Pattern , is a harmonic pattern discovered by H M Gartley and outlined in his book 'Profits in the Stock market', published in 1935. The pattern was further defined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998. The pattern incorporates the 78.6% retracement of XA, as the defining element in the Potential Reversal Zone (PRZ). The B point must be at the 61.8% retracement of XA. The Gartley utilizes a minimum 127.2% projection of BC. In addition, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 78.6% retracement of XA and the BC projection.
Education
by Cryptsyxalt
3
The Bat Pattern, Tutorial (Basic)The Bat Pattern, is a precise harmonic pattern discovered by Scott Carney in 2001 The pattern incorporates the 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ). The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The Bat utilizes a minimum 1.618BC projection. In addition, the AB=CD pattern within the Bat pattern is extended and usually requires a 1.27 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.
Education
by Cryptsyxalt
22
MathFX for dummies | Integrals | FREE CLASS | Basis This is basic to my strategy. You will think: Is this guy a witch? Guys, this was formulated centuries ago, I just came to give you a more accurate interpretation. I will be teaching from linear geometry, to quantum physics applied to trading. This is child's play for me. I'll give you some advice: "Money comes and goes, KNOWLEDGE DOES NOT." So, unwrap your math books, and learn, DON'T BE FOOLS LIKE MOST. Be different. I hope to meet you in my classes, see you! ----------------------------------------- Like I said, I'm the best in the MULTIVERSE BY FAR. But at least it is entertaining to see so many lose money by NOT STUDYING. Please, without study you will reach 3000% of the fibonacci, but in a downtrend. ROFL! I do these analyzes in two seconds mentally, I think I will be the Tesla of this generation, I remember when I said: "I would like to be like him ( Tesla , DaVinci, etc.)". Now I have the design of one, and the wave knowledge of the other. This is intelligent design, in the world there is no such thing as free will, we all have the same behavior over time, and it is determined by the fibonacci / golden ratio, which for me is the brush of God in the universe. Please stop reading fairy tales. #SmartDesign "Little science takes you away from God, but a lot takes you to Him" ​​—Louis Pasteur When you understand all these things, and notice how the universe is totally in PERFECT HARMONY, you will only say one thing: "THERE MUST BE A CREATOR". This was already written: "For the invisible things of him from the creation of the world are CLEARLY seen, being understood by the things that ARE MADE, even his eternal power and Godhead; so that they are WITHOUT EXCUSE". — Ro . 1:20 My inspiration was Tesla , he makes me cry as I read him as despite everything, he did wonders, he does not need anything more than his OWN MIND, he was THE GREATEST in history, I come to relive his work. This is quantum knowledge, the clearest explanation of the universe, matter, energy ... I had a bit more luck to be born at this time, JUST THAT. PD: Theories of Elliot, Gann, Relativity ... are child's play for me. I just want those who see my analysis to study, knowledge DOES NOT WEIGH. Thanks for making my analysis fun, you don't know how much I enjoy the comments without knowledge.
Education
by JBPip
2
🦶 If you want to be successful and rich-start with the book! 💰 "The richest man in Babylon" is one of my favorite and best books on Finance that I have ever read! 👉 First, it is simple and small. Stories from it can even be told to children in the form of fairy tales, and you can read the book for a couple of hours. 👉 Secondly, it is wise and practical. Everything is clear and simple-if you want to be rich, start with the first step and follow the advice from the book. 👉 third, it helped me personally and my environment. I can't remember many books that have influenced me and my way of thinking so much! 🌞 Briefly about the book itself. It helps us explore aspects of personal success for each of us. Recipes for escape from poverty and lack of money can become the basis for understanding financial laws. Like the laws of nature, the laws of money have been around for a long time. And if your goal is to accumulate money, then the author, Samuel George Clayson, is ready to offer to penetrate the mystery of money in order to accumulate capital, save it and make it work for profit. The pages of the book will take you to Ancient Babylon — the cradle of basic financial laws that remain relevant to this day. Author George Clayson was born in 1874. He was always concerned about the financial literacy of the population, so in 1926 he published a series of pamphlets written in the style of Babylonian parables. These pamphlets were distributed to banks and insurance companies, and then combined into the book "the richest man in Babylon", which was published in the same year. To date, more than 2 million copies have been sold worldwide. ✍ This is briefly about the history of books and what they teach. 1) the history of the arcade and its wealth mentor Aglamis. Wisdom - part of the money in the first place belongs to you. 2) King Sargon, and a request to teach Arkada residents the laws of money. Wisdom-start making simple rules of wealth, there are only 7 of them. 3) Temple of Knowledge and history arcade about luck and luck. Wisdom-luck favors people of business. 4) the Story of Nomazir, son of Arkad, 5 laws of wealth. Wisdom - your goals and desires have a powerful force, combine this energy with knowledge of the 5 laws of wealth - and huge treasures will become yours. 5) Rodan, 10 gold coins and the wisdom of the usurer Maton. Wisdom - a little caution is better than a big disappointment. 6) Banzar and the walls of great Babylon. Wisdom - without protection, we can't afford to stay. 7) a Cautionary tale of Dabazir's slavery for Tharkad. Wisdom - if you have determination, you will always achieve the goal. The clay tablets in the book contain the records of dabazir, in which He shares his notes, such as 5 pieces published in the book. They contain many interesting wise tips on how to pay off your debts. 8) Sharru Nada, a merchant from Babylon, and a grandson of Arad Gula named hadan Gula. Wisdom-love to work and do your job with your soul. 💎 Briefly about the laws of wealth from the book: Law 1. Start filling your wallet. Save at least a tithe of your income. If you can save more, it's great. You may say that you are already poor, but you will be surprised that saving this 10% will not affect your standard of living in any way. Law 2. Track your expenses. The more you earn, the more you want to spend. But don't confuse immediate expenses with whims. Make a budget and write down a list of necessary expenses. When you have a desire to spend, think about whether this desire really needs to be quenched. And in no case do not spend more than 90% of your earnings. "Save more next month" is a road to nowhere. Law 3. Multiply your fortune. Money should not be a dead weight in your wallet. Wealth is not an accumulated fortune, but an income that is constantly growing. Put money at least on Deposit. Law 4. Protect your fortune so that you don't lose it. When you invest money, the principal amount should not be affected. Avoid too risky trades and promises of quick earnings. Be sure to consult with experts and think of ways to leave the "sinking ship". Law 5. Housing can be a profitable investment. The rental fee is sometimes the same as the loan payment for it. With the only difference that in 10 years you will not own the housing. And although Klayson did not live in modern Ukraine with constant financial crises, dreams of their own homes still warm the soul of most people. The law 6. Provide income for the future. Once there were no pensions at all, but now they do not guarantee a comfortable old age. Think about yourself and your family in advance, what will happen to you in 10, 20, 30 years. Insurance and deposits in land and real estate will be useful here. The law 7. Learn to earn more. Develop your abilities, learn new skills, and gain wisdom. Look for new markets, ask for advice, and invest in your training. Advice if you are in debt. If you not only live in zero, but also owe other people, in this case, too, there is a Babylonian story. On behalf of Dabasir, the camel trader, Clayson offers the following solution to the problem: first, make a list of all who you owe money to and exactly what amount. Divide your income into ten equal parts, spend seven out of ten on urgent needs and small joys, so that you can still enjoy life, and not sink into depression. Distribute another 20% monthly to pay off the debt. And tithe, as in rule # 1, save to increase your income later. 🧲The same Board with the "Golden rules" of attracting money: 1) Gold is drawn to those who save a tenth of their earnings, ensuring the future of themselves and their family. 2) Gold works in full force for the wise owner, who puts it profitably into the business. 3) Gold needs protection, and therefore prefers caution and advice from wise people. 4) Gold does not like to be forced to work in a field where a person is not knowledgeable. 5) Gold eludes those who invest it in adventurous or ill-conceived projects, embodying romantic dreams of wealth. Be sure to read this book. You won't regret it! PS: in 2010, when I first read this book, I was so impressed with its wisdom and prostate that I decided to buy 10 copies and give them to my friends and family. And what was my surprise when 10 years later I saw that their life had not only not changed, but also became harder and poorer! Now, if someone tells me that they want money or to be rich, I offer them the first step - to save for themselves for 45 days, first of all, 100 rubles! It's so easy! And when a person doesn't respond to me after 45 days, or says that they didn't learn from it, or comes up with any excuses why they didn't do it, I understand the power of the action and what they really want. 💸 I wish you health, wisdom, wealth and prosperity! Question to those who have read this book. And what would you choose-a bag of gold (ten million rubles) or a clay tablet with wise and proven laws of money (the book "the richest man in Babylon")?
GEducation
by ivan_gold_star_
7