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Islandreversal

GE: Some patterns you should be aware of!Hello traders and investors! Let’s talk about GE again! As we discussed in our last study, GE reacted quickly and denied the bearish pattern seen in the hourly chart of an Island Reversal , and it filled its gap. As usual, we have some congestion now, but only after it stressed the 21 ema in the daily chart. Also, if you missed my previous analysis on GE, the link to it is below this post, as usual. Now, in the daily chart, we have an idea of a H&S chart pattern, but it wasn’t triggered yet. In fact, if GE denies this pattern and defeats the last “shoulder” by trading above its high, probably we’ll see a continuation of the bullish momentum. Today, we had a classic Bullish Engulfing candlestick pattern, which has a good chance of working as a reversal in the next few days. Now, to the weekly chart: It is natural to see some exhaustion signs, after all, GE just hit an important resistance level at the green line (the high before the Covid’s crash), and it is far from the 21 ema. We had a Bearish Engulfing 2 weeks ago, which wasn’t triggered as well, so, GE is just moving sideways, and this is a nice sign, as crazy as this sounds . When a stock goes up too fast, it must rest a little bit, but when the stock rests while moving sideways, it means the buy force is still present, then we have a sideways correction – or as I like to call, Time Correction . So, let’s not be frustrated or surprised if GE keeps trading sideways until the 21 ema hits the price. Meanwhile, let’s keep studying it, and if you liked this analysis, remember to follow me to keep in touch with my daily studies, and support this idea with your like if you’ve read this far! Thank you!
NYSE:GE
by Nathan_The_Finance_Hydra
GE: The single most important price level for GE!Hello traders and investors! Let’s talk about GE today! It is my first analysis about it, and I hope it helps! First, in the 1h chart we see that it is trading slightly under the black line at $ 13.27 , which is a Key Point, as it worked as support and resistance alike, in the recent past. If GE loses this point for good, we can expect a sharper pullback in the daily or even the weekly charts. If this chart pattern confirms to be an Island Reversal , then it is almost certain that it’ll seek lower levels. In order to avoid this scenario, GE must react quickly, and fill the most recent gap in the next upside movement. Now, let’s see the daily chart: Today’s candlestick is quite intense, but the day is not over yet, so, we still might see a reaction. But it seems GE is going to seek the 21 ema in the daily chart at least. The trend is still clearly bullish, and pullbacks shouldn’t be scary at all. The 21 ema is an interesting support level, and any bullish reaction around here could be an opportunity to buy. The problem is that the pullback might be more intense than we expect. See, the black line at $ 13.27 is still visible here, and it seems it is older than it looks, despite the fact it is still working wonders in the 1h chart. The weekly chart will give us an answer: Yep, the black line is the top level prior to last year's crash. It is amazing how the market still remembers this price level, and how it works very well in the 1h chart more than one year later. The problem is, if it closes under this black line in the weekly chart, the market will see this as a Dark Cloud Cover candlestick pattern, and the technical target will be the 21 ema in the weekly chart. This could lead to a pullback that would last for some weeks, but still, won’t be enough to change the bullish bias seen since Sep 2020. In fact, it could be an amazing opportunity to buy, at a cheaper price. Let’s be prepared for this scenario and wait calmly for more clues. If you liked this analysis, remember to follow me to keep in touch with my daily studies, and if this idea helped you, please, support it with your like! Thank you very much!
NYSE:GE
by Nathan_The_Finance_Hydra
7
PLTR: Giving us a Technical Analysis class!Hello traders and investors! Let’s talk about PTR today! We have multiple technical points to discuss here. First, in the 1h chart we have a classic Inverted Head and Shoulders chart pattern, which is usually a reversal sign. The Pivot Point is at $ 30.18. Now, it is doing a pullback to the 21 ema, and we’ll see how it’ll behave from now on. What’s more, we had another classic chart pattern called Island Reversal , which is usually a strong sign, as long as it is not frustrated. Now, let’s see the daily chart: In the daily chart we have a classic candlestick pattern called Morning Star, which is interesting. Every Morning Star is at the same time an Island Reversal pattern in smaller time frames. The volume increased a lot in the past few days, but the problem is that right now the stock just found a resistance at the 21 ema, which can make things difficult for PLTR. In fact, in the daily chart, it barely hit the 21 ema and now it is doing this Dark Cloud Cover candlestick pattern. Let’s proceed carefully on PLTR, as we have bullish and bearish patterns, the question is, which side do you think will prevail? The bulls or the bears? Remember to follow me to keep in touch with my daily analyses on stocks and indices. And if this idea helped you, please, support it ! Thank you very much!
P
by Nathan_The_Finance_Hydra
10
Bullish Island Reversal Pattern & Exhaustion GapA: What type of gap is A1? Possibly a continuation gap or exhaustion gap. This gap is questionable because it is unconfirmed. A2: This is confirmation that A1 is an exhaustion gap. This gap is now at least a temporary exhaustion gap. An exhaustion gap breaks out in the direction of the current trend, and then it will reverse direction and break the previous major support price. When it breaks the previous major support, then it is a confirmation. B: What type of chart pattern is this? This is a bullish island reversal pattern. It involves two gaps. I gap downward and a gap higher that will close the previous gap. A bullish island reversal pattern is an indication that the price will go higher. C: How to interpret volume with price gap? I heard before that high volume is associated with a continuation gap, and low volume is associated with an exhaustion gap. I don't know. I am going to answer this question with a maybe. Volume was high with gap A1 in the chart, but the price quickly reversed direction. Thank you for reading! Greenfield Remember to click "Like" and "Follow" to see more articles. Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
NYSE:FEducation
by GreenfieldAnalysis
WKHS Possible ReversalAppears to be in an island reversal. Watching for a breakaway gap from the box. Additionally, it appears the top of the box is a key level of previous support and resistance ($22.90 ish), with swing lows getting higher. My entry will be a gap up from this level with significant volume or after the break of resistance with a pullback to the $22.90 level confirming support. Beware: WKHS is burning through cash and needs to raise again. Any bullish run will be a quick trade for me. A pump leading to an offering sounds realistic.
NASDAQ:WKHSLong
by NetWorthFocused
PLTR: Several bullish signs triggered. What's next?Hello traders and investors! Let’s study PLTR today! Ok, PLTR resumed the bull trend, as we expected it would in my last analysis, but today is doing another pullback . This is a natural movement, and PLTR could hit the 21 ema and this wouldn’t ruin the bull trend. In my last analysis (the link to it is below, if you missed) we discussed the several patterns that made PLTR rise this week. First, we had an Island Reversal pattern, second, PLTR defeated the purple trendline . This made the bear momentum weaker, but it wasn’t enough. The last catalyst was the pink line being defeated. These technical movements made PLTR engage in a bullish momentum again, at least for the short-term. Now, let’s look at the daily chart: The Island Reversal pattern in the hourly chart was a Morning Star candlestick pattern in the daily chart. This is curious. Also, remember that I said the volume wasn’t convincing me that we were going to see a sharper pullback? The black candlestick seen on Friday had a volume way lower than the white ones. This tells me that pullbacks aren’t real selloffs, but opportunities to buy, as you’ll take advantage of the market’s tiredness. Regardless if we’ll see any other pullback here, since PLTR engaged in a bull trend again, I think we can set out our next target at the ATH now. And if you liked this analysis, remember to f ollow me to keep in touch with my daily updates! And please, support this idea if it helped you in some way! Thank you very much for your attention.
P
by Nathan_The_Finance_Hydra
6
PLTR: Next challenges and TARGETS! Complete Analysis.Hello traders and investors! Let’s do a complete Multi Time Frame Analysis on Palantir today! Yes, PLTR defeated its first challenge in order to reverse the bearish momentum seen in the hourly chart: It defeated the purple trendline we discussed yesterday. Now, there are still some challenges, and we’ll talk about them here. And if you missed my previous analysis on PLTR, the link to it is below. The next challenge PLTR has to face is this pink line . If PLTR closes above this level, it’ll be another good sign that the trend is ready to resume. The other challenge is the 21 ema , which is flat right now (two days ago it was pointing down, so this is a good sign). If PLTR engages in a bull trend again, the next target would be the All Time High (ATH) again. Let’s see the daily chart: I find it good that the white candlesticks have higher volume than the average. This tells me that there is no real reason to panic here. And as long as this Morning Star keeps valid, PLTR will keep climbing, maybe slowly, but it will. The only thing that could get in PLTR’s way here would be if next week the gap of this Morning Star in the daily chart ( Island Reversal in the hourly chart) gets filled. This would be a sign of weakness of the buyers. So, we would have the bulls and the bears tired, and this would make the stock move erratically for some time. Now, you may be asking what the worst-case scenario for PLTR would be. I rarely use Fibonacci , but I would use it I the weekly chart to see how far it could drop: The $ 18 region is the 61.8% retracement. If we see a real sell-off here, that would be my target for PLTR, using Fibonacci. It looks like we have a Dark Cloud Cover candlestick pattern in the weekly chart as well, but it wasn’t triggered yet. Even if PLTR drops to the $ 18 again, I would see it as an opportunity to buy, because the trend is clearly bullish in the mid-term. Of course, this would be the worst-case scenario, and PLTR must trigger some patterns to make this happen, just like it has some challenges before it can resume the bull trend. The situation is quite complex, but looking at the technical points, I still see no reason to worry about PLTR. And remember to follow me to keep in touch with my daily analyses! And please, support this idea if you find it helpful. Have a great weekend. Thank you very much.
P
by Nathan_The_Finance_Hydra
2
PLTR: Two Bullish signs that you must keep in mind!Hello traders and investors! Let’s study PLTR again today, as we have some interesting movements going on. First, it lost the pink line that we discussed in my last analysis, so the short-term bear trend persists, but I wasn’t convinced that this would reverse the bull trend seen in the daily chart. Palantir still must defeat the purple trendline and the 21 ema, which are offering some resistance to the price right now, but we have some good signs around. We have what looks like an Island Reversal chart pattern, which is a reversal pattern, and it could be what PLTR needs to resume the bull trend in the daily chart. Speaking of daily chart: If you are familiar with my trading approach, you know that I always do a Multi Time Frame Analysis , never looking at just one timeframe. Sometimes, an Island Reversal pattern can be another pattern in bigger timeframes, and in this particular case, what we have here is a candlestick pattern called Morning Star , which is also a reversal pattern. Since the trend is bullish in the daily chart, and we have two bullish patterns, it seems that we just had a pullback on PLTR, as we were already expecting. If PLTR closes above the pink line it’ll be a good sign. Of course, in my opinion, it is a little too soon to say that PLTR will engage again in the furious bull trend seen in the daily chart, but at least it is stopping falling, and this is a good start. What’s more, look at the volume of this Morning Star. This could be what PLTR needs to defeat the trend line in the hourly chart. And if this idea helped you, remember to follow me to keep in touch with my daily analyses, and please, support this idea! Thank you very much.
P
by Nathan_The_Finance_Hydra
11
BTCUSDT: "ISN'T IT AN ISLAND REVERSAL?" Hi Everybody, I hope you have not lost a lot due to BITMEX and Donald Trump COVID contraction. We will review briefly what is known as Island Reversal pattern on BTCUSDT 1D chart. 1. We can easily identify an Island Reversal at the end of maybe one-year BTCUSDT trendline. 2. The pattern occurs when two different gaps isolate a cluster of trading days or even weeks. 3. Also we can see a pattern of increased volume during the island which support the existence of the pattern. 4. The appearances of island reversal can be a big change in the market trend (turn BTCUSDT to bearish market) according to Fibonacci retracements. 5. BUT, keep in mind that the Island Reversal is constructed on the idea that the two gaps will often not be filled soon and here part of the gaps has filled. So we'd better pend the island until a week or two ahead to see where prices will head to. 6. BUT, remember that there are many debates around the island reversal and its strength. some believe that this pattern occurs infrequently and gives poor performances. What do you think? do you agree or disagree? I would be very pleased to have your idea in comments below. => DO NOT TRAD ON THE IDEA UNLESS YOU HAVE YOUR OWN CONFIRMATON. <=
Short
by BavanTrader
TSLA: Is the bull trend back?Hello traders and investors! Let’s see what’s going on with Tesla now! As we discussed last week, Tesla is now in bull territory, as it is trading above the $ 408 again (red line). The false breakout didn’t occur, and the idea of a Dead Cat Bounce is off the table, at least in the short-term. Now, the momentum is bullish, and as long it keeps doing higher highs/lows , the situation is fine in the hourly chart, and the $ 461 is the natural target for this movement. Also, it is important to stress that the $ 408, along with the 21 ema, are now supports for Tesla. Let’s look at the daily chart: Today’s movement is not exclusive to Tesla, as Nasdaq Composite, S&P500 and DJIA are all going up nicely today. And it seems Tesla is following the NDX, since it lacks other drivers to move the stock’s price. The bulls lost a lot of their strength if we aim for the mid-term, and this could make things complicate for Tesla’s stocks. Therefore, the hourly chart is a better guide right now. Either way, Tesla is trading above the 21 ema again, and it seems we have an Island Reversal chart pattern here. Also, if you liked this idea, please, support it! And follow me to keep in touch with my daily analyses. Let’s keep monitoring Tesla! It seems the market is moving erratically, and we must be careful in such complex situation. Have a great Monday.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
27
TSLA: Important points to keep in mind!Hello traders and investors! Let’s do our complete Multi Time Frame Analysis (MTFA) on Tesla today and try to figure out what to expect next. First, Tesla is trading near a support level, which is the blue line, but it seems we have another bottom at the black line. There’s a trendline connecting the tops, that works as a resistance, and if Tesla defeats it, we will have a target around $ 398 (pink line, previous top). Also, if Tesla trades above the pink line again, it will trigger a pivot point that could change the bearish bias in the short-term. So far, the trend is still bearish, and we have a busted Island Reversal chart pattern, which is quite frustrating for the bulls. Now let’s see the daily chart for more clues: Tesla filled its gap around $ 372, and now it is trading under this level again, showing that the stock lacks strength to do a proper movement. The 21 ema is working as a strong resistance, but we have the purple line at $ 359, which was a previous resistance, and now is working as a support. So, Tesla is in the middle of this trap zone , between its resistance and support. Who’s going to win? Only time will tell. Either way, be aware of the pink line at $ 329, because if Tesla loses it, it will trigger a pivot point that could lead the price down to the red line at $ 273, which is the previous support. The gap near this support at $ 284 will help to drag Tesla down, as gaps work as magnets for the price. Now, since it’s Friday, let’s finish our study by looking at the weekly chart: The good news is that we are still above the purple line, and at least the candlestick is positive. The bad news is that we dropped 12% since last week and we are still too far from the 21 ema. The red line at $ 273 is close to the 21 ema in the weekly chart, which reinforces my view that this region is a strong support in case of a pullback. These are the most important points to keep in mind on Tesla, and if you liked this analysis, please, support it! And follow me to keep in touch with my analyses! Every day, I’ll share a few thoughts with you, and I’m sure you’ll find something useful. Have a great weekend.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
28
TSLA: Dead Cat Bounce?Hello traders and investors! Would this be a Dead Cat Bounce? Or will Tesla fly again? There are some key points to keep in mind. First, if we look at the hourly chart, Tesla is just doing a pullback to the 21 ema, which is normal and expected. The problem is that the pullback is too intense, and this spoils the bullish momentum. Since the stock gapped up today, it could’ve left us with an Island Reversal chart pattern, but since today’s gap was quickly closed, this indicates that the bulls lack the strength they need to continue the trend. On the bright side, Tesla is in a support zone, made of the 21 ema, the gap and the blue line at $ 372. Now let’s see the daily chart: Tesla filled the gap (yellow area) as we thought, and it is going up today. Despite of this, today’s candlestick is quite bearish, and Tesla is still trading under the 21 ema, so, the trend is still bearish. If Tesla trades under today’s candle low, of if it loses the purple line at $ 359, it will enter in a clear bear territory, and it will just seek for further supports. The gap around $ 284 and the red line at $ 273 are important points to keep in mind. Yesterday Tesla did a good reaction, it was not great, but not bad. Only good. The problem is that yesterday’s volume was low, and this could indicate that this reaction is just a Dead Cat Bounce. I would be more convinced that the bull trend will resume if Tesla does a bullish pivot in the hourly chart, meaning, it must trade above $ 398.96. This would be a good start, and the reversal sign the bulls need. And if you read this far, please, support this idea! And follow me to keep in touch with my daily analyses! I’m sure you’ll find something interesting around here. Stay safe.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
33
SPY Island Reversal SetupLast week saw the largest decline in markets since the rally of the March low and in doing so created an Island Reversal Pattern which is a bearish type of chart pattern. Island Reversals form when price creates a gap up during an uptrend, holds above the gap level for a few days, and then reverses back to the downside while creating another gap on the move down thus creating an “island” consisting of a few price candles that are suspended above the bulk of recent trend. This Island Reversal occurred during a trend of yellow price candles which indicates that the market was experiencing bullish momentum volatility which can either be a signal of continuation or sign of a reversal. In general, after a period of bullish momentum volatility the trend will continue upward as long as price remains above the low of the first yellow candle(dashed yellow line) while a reversal tends to occur if price breaches below the first yellow candle. Price held just above the dashed yellow line on Thursday’s decline as well as on Friday’s attempted rally. Going into the new week of trading there are two things we want to watch for as a signal of what to expect next: 1) Should price make a move below the dashed yellow line it will likely be an indication that the two-month rally off of the March low has ended and a new short-term bear trend is forming. 2) Should price hold above the dashed yellow line and move higher while filling the gap it will likely indicate that the recent uptrend is still in play while keeping momentum in favor of the bulls. The Relative Strength Index(RSI) shows the green RSI has crossed below the purple signal line which indicates that the short-term momentum in price has shifted bearish. The green RSI is holding above the 50 level which is the midpoint of the total RSI range. In general, an RSI reading above the 50 level indicates overall bullish momentum behind price while a reading below 50 indicates overall bearish momentum behind price. Should the green RSI line cross below the 50 level it could be an indication that overall momentum is turning bearish, while a bounce up and off of the 50 level would indicate that overall momentum is remaining bullish. The Price Percent Oscillator(PPO) shows the green PPO in a fresh cross below the purple signal line which indicates short-term bearish momentum in price. The PPO and signal line both remain above the 0 level though which indicates that overall price momentum remains bullish. In general, a PPO reading above 0 indicates intermediate-term bullish momentum while a reading below 0 indicates intermediate-term bearish momentum. The Average Directional Movement Indicator(ADX) shows the green directional line(+DI) has crossed below the purple directional line(-DI) which indicates that the short-term trend in price is bearish. When the green +DI line is trending above the purple -DI line it indicates a bullish price trend, while the purple -DI line trending above the green +DI line indicates a bearish price trend. The histogram in the background shows trend strength and since we have the purple line above the green line it is showing us the strength of the bearish trend. When the histogram is rising it indicates a strong trend and when the histogram is declining it represents a weak trend, and for now the histogram is declining which indcicate that the current bearish trend is weak. The Volume indicator shows a two-day spike in volume as price gapped down after a period of relatively low volume in April and May. The volume on Thursday and Friday was at its highest levels since the March selloff which indicates that more traders were active on the late-week selloff. Overall the dominant trend in price remains bullish, but could turn bearish based on the island reversal setup as well as weakening lower trend and momentum indicators. Watch for support above the dashed yellow line as a signal that price may move higher; watch for a move below the dashed yellow line as a signal that the uptrend has ended. Current view is neutral, but I opened a short-trade on Friday due to the possibility that the island reversal pattern was a sign that the two-month rally has lost steam and is at risk of reversing to the downside.
AMEX:SPY
by PrepForProfit
1