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Patterns

REVERSAL AND CONTINUATION PATTERNS ⚡️Chart patterns are visual representations of price action. Chart patterns can show trading ranges, swings, trends, and reversals in price action. The signal for buying and selling a chart pattern is usually a trend line breakout in one direction showing support or resistance is overcome at a key level. Stop losses are usually set on retracement back inside the previous range and profit targets are usually set based on the magnitude of the previous move leading into the pattern. Many people think of chart patterns as bullish or bearish but there are really three main types of chart pattern groups: reversal chart patterns, continuation chart patterns, and bilateral chart patterns. Understanding the differences is important for traders to understand the path of least resistance on a specific chart based on the primary sentiment of the buyers and sellers price action. Well in this article we will discuss the Reversal chart patterns and the Continuation chart patterns. Reversal chart patterns Reversal patterns happen when a chart has a strong break from its current trend and its momentum reverses course. These patterns show that a trend is coming to an end and the price action is moving in a new direction away from the previous range or direction. These patterns go from bullish to bearish or bearish to bullish. They can take longer to develop than other types of chart patterns. Now I'll show you how the 3 Bullish and Bearish patterns shown in the picture in this Education post. Double TOP and BOTTOM: Well for this first pair of patterns, I have already made a very nice and detailed explanation here in Tradingview, follow the link :) Click Below in the picture. Head & Shoulder and Reversal H&S A head and shoulders pattern used in technical analysis is a specific chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height, and the middle is the highest. The head and shoulders pattern forms when a stock's price rises to a peak and then declines back to the base of the prior up-move. Then, the price rises above the previous peak to form the "head" and then declines back to the original base. Finally, the stock price peaks again at about the level of the first peak of the formation before falling back down. The head and shoulders pattern is considered 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 and vice versa. and Viceversa the reversal will look like this Reversal Rising Wedge and Falling Wedge A wedge pattern can signal either bullish or bearish price reversals. In either case, this pattern holds three common characteristics: first, the converging trend lines; second, a pattern of declining volume as the price progresses through the pattern; third, a breakout from one of the trend lines. The two forms of the wedge pattern are a rising wedge (which signals a bearish reversal) and a falling wedge (which signals a bullish reversal). Rising Wedge This usually occurs when a security’s price has been rising over time, but it can also occur in the midst of a downward trend as well. Falling Wedge Continuation chart patterns Continuation patterns signal that the current trend is still in place and it’s about to resume going in the same direction after a trading range has formed. These types of patterns usually form consolidations in price action to let buyers and sellers work through supply and demand before moving higher or lower like the previous trend leading into the range. These are the most popular classic bearish and bullish chart patterns. Continuation Falling Wedge The falling wedge pattern is a continuation pattern formed when the price bounces between two downward-sloping, converging trendlines. It will follow the impulse trend, so a Bullish trend will continue in the uptrend and Vice-versa for il downtrend. And Vice versa the Rising Wedge The Bullish and the Bearish Rectangle A rectangle is a pattern that occurs on price charts. A rectangle is formed when the price reaches the same horizontal support and resistance levels multiple times. The price is confined to moving between the two horizontal levels, creating a rectangle. Bullish Rectangle Bearish Rectangle: Bullish and Bearish Pennant In technical analysis, a pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines "the pennant" followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole. Some examples: Hope this post will help you to understand the difference between some examples of the most common reversal and continuation patterns.
Education
by FOREXN1
22
Custom Cycle Patterns Update - Christmas Rally Setup 2022It appears I'm getting a few people that are following my Cycle Pattern research - love it. For those of you that have not been following my research, here is a short history. Many years ago I started researching cycles, Fibonacci, Gann, and other advanced techniques. I try to deliver all of my advanced research to those that are interested in what I'm doing. Ultimately, I hope to unlock a few secrets related to how I see price action and attempt to better understand how cycles, patterns, frequency, amplitude, and shifting cycle phases really work in price cycles. If I'm able to do this, I should be able to accurately predict when and how markets will shift into different phases and how to trade them more efficiently. Much of my research is now dedicated to understanding global market dynamics (the world market trends and what comes next). I have to say I've been quite accurate in my predictions over the past few years - but predicting the future is now something I can do accurately or easily. Yet, I continue to try to provide valuable information for everyone interested. I warned of a market top setting up in July/Aug 2021 and warned everyone to start protecting trades and pulling profits as the US markets continued to peak. I warned of a 3 to 5 wave correction taking place (a wave 4 downtrend) before a new Wave 5 (uptrend) was likely to potentially setup a Christmas Rally in 2022. I've been actively suggesting the US markets were bottoming over the past 60+ days as long as certain support levels held up. I believe Gold and Silver will start a very strong price rally once the US Dollar shifts into a sideways/downward slide (which may be happening right now). I also believe foreign market ETFs & Technology shares will be the HOT TRIGGERS over the next 6+ months as investors attempt to buy deeply undervalued stocks. What this means is we are going to go through a bit of a SHIFT in how capital is deployed and where to find opportunities over the next 6~12+ months. But it also means traders/investors still need to be cautious. This is not an easy market to trade - and you should not start loading up on ETFs/Tech until we know the bottom is set. Here is the complete Cycle Pattern for all of October and early November: 10-1: Consolidation 10-2: Temporary Bottom 10-3: Gap Reversal 10-4: Breakdown 10-5: BreakAway 10-6: Rally 10-7: Carryover 10-8: Bottom 10-9: N/A 10-10: N/A 10-11: Inside/Breakaway 10-12: Harami/Inside 10-13: CRUSH 10-14: Gap Potential 10-15: Gap Reversal 10-16: Breakdown 10-17: BreakAway 10-18: Carryover 10-19: Temporary Bottom 10-20: Top/Reisistance 10-21: Consolidation 10-22: CRUSH 10-23: Gap Potential 10-24: Gap22 Potential 10-25: N/A 10-26: Breakdown 10-27: Harami/Inside 10-28: CRUSH 10-29: GAP Potential 10-30: Top/Resistance 10-31: Consolidation 11-1: Bottom 11-2: UP/Down/Up 11-3: Base/Rally 11-4: BreakAway 11-5: Carryover Remember, CRUSH patterns are BIG TRENDING BARS. They can be UP or DOWN, but generally, they tend to be downward bars (about 65% of the time). Take a look at the end of October and early November.. It looks like a BOTTOM/BASE is going to setup in early November. Can you say "Christmas Rally"? It looks like we may see a shift in the US Fed attempting to make sure they don't break assets over the next few months. Follow my research. This is going to be a great opportunity for the right trades/investments. Watch GOLD & SILVER. I believe these assets will move strongly higher over the next 12+ months.
AMEX:SPYLong
by BradMatheny
15
Tripple top pattern on METAExplaining and showing how tripple top pattern can help in finding excellent trades I cover various stocks which can be profitable based on the stock charts and technical indicators. I try my best to explain as detailed as possible but your feedback is also appreciated Before you enter a trade , one must learn how to master the charts as Stock charts play a big role in deciding when to buy or when not to buy. Technical Trading help in predicting price movements and have a risk management. Stock trading is like any other business and must be taken seriously. Lot of people lose money because they don't educate themselves and end up placing trades blindly which results in big losses Stock charts is the major component day traders, swing traders, core traders use. Times and technology has changed and if you cannot adapt to the new methods , there is a high chance you will be left behind Millions of shares are traded now using desktop , laptop or gadgets and stock charts is what majority of traders look at. So , if you want to be a daytrader , swingtrader or coretrader learn how to read and interpret charts. There are lot of great books out there like Thomas Bulkowski's Encyclopedia of chart patterns and Steve Nison Japanese Candlesticks interpretation Having someone experienced can also cut the learning curve time for a new trader. Trading does take time and with discipline , hardwork , dedication and most importantly Passion for this needs to be there
NASDAQ:META
by Composed_Trader
Swin trade on ORCL 1 hour chartDiscalimer: I do not give solicitation to buy or short. ======================= I cover various stocks which can be profitable based on the stock charts and technical indicators. I try my best to explain as detailed as possible but your feedback is also appreciated Before you enter a trade , one must learn how to master the charts as Stock charts play a big role in deciding when to buy or when not to buy. Technical Trading help in predicting price movements and have a risk management. Stock trading is like any other business and must be taken seriously. Lot of people lose money because they don't educate themselves and end up placing trades blindly which results in big losses Stock charts is the major component day traders, swing traders, core traders use. Times and technology has changed and if you cannot adapt to the new methods , there is a high chance you will be left behind Millions of shares are traded now using desktop , laptop or gadgets and stock charts is what majority of traders look at. So , if you want to be a daytrader , swingtrader or coretrader learn how to read and interpret charts. There are lot of great books out there like Thomas Bulkowski's Encyclopedia of chart patterns and Steve Nison Japanese Candlesticks interpretation Having someone experienced can also cut the learning curve time for a new trader. Trading does take time and with discipline , hardwork , dedication and most importantly Passion for this needs to be there.
NYSE:ORCLLong
by Composed_Trader
What is the Triple Top Pattern❓ 🟢What is the Triple Top Pattern? A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with three peaks above a support level/neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. The formation of this pattern is completed when the prices move back to the neckline after forming the third peak. When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed. 🟢Trading the Triple Top There are some rules when trading the Triple Top chart pattern. ✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend. ✔️Traders should spot if three rounding tops are forming. ✔️Traders should only enter the short position when the price breaks out from the support level or the neckline. 🟢Stop Loss In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern. 🟢Price Target The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below. Thank you for reading! Please give a Thumbs UP and Leave Comment👍🏻
BITSTAMP:BTCUSDEducation
by SignalProvider
8
AUDJPY - FUNDAMENTAL + TECHNICAL BIAS#AUDJPY AUDJPY is going down a bit due to MARKET RISK OFF in the previous days. But even now we see that the MARKET is somewhat MARKET RISK ON. We expect AUDJPY to RETRACE to higher resistance. Anyway, if AUDJPY goes DOWNSIDE again, VIX should go up, JPY should go up, and STOCKS should go down. The dollar should continue to strengthen in this way. If MARKET RISK is ON, you can definitely BUY at 96.63 LEVEL. Currently, the market risk is off. But somehow it may go down to 91.543 LEVEL before going UP. After that, AUDJPY may go up to 96.63 LEVEL. To buy AUDJPY, VIX must be DOWN and SNP500 must be UP. Further, the TREND LINE should be BREAK. And COMMODITIES should definitely be UP. We are waiting for the change in the above mentioned MARKETS. If the dollar is strengthened by the FED, MARKETS RISK should be off. Then AUDJPY may become LONG TERM SELL after JPY STRONG.
by benny_marshall
Bitcoin Ultimatum - It Must Breakout Or It Will Surely BreakdownHello Traders, Here is my analysis for Bitcoin. Let me start by saying that BTC is in a very precarious position. Heres why... 1) It's just barely above major support at $17.6K - If (most likely when) it breaks, there is no doubt that we will see massive capitulation. Potentially seeing a double digit % move down the day it breaks. 2) The descending trendline connecting the November highs to now will act as major resistance. - BTC needs to break this trendline to have any hopes of a large rally anytime soon. The reason that this puts Bitcoin in a precarious position is because it is trading in a larger wedge where both the descending trendline and $17.6K major support will soon converge. *There can only be one of two outcomes in this situation: 1) Either we breakout 2) Or we breakdown What do I think will happen? - First off, I think regardless of whether we breakout or breakdown, BTC has not bottomed and will hit at a minimum $12K, but probably more like $8K. - I think we could see a short term rally this week, potentially taking BTC up to the trendline to test it. - Given the strong Bearish climate and weaker relative strength in BTC, I think it's unlikely that BTC breaks out of the trendline and will most likely get rejected from it. What happens if BTC breaks the trendline? Won't that be Bullish? - Yes, it would be bullish but for the short term. - BTC would likely rally after breaking the trendline, probably back up to about $24K. - But being as we're in a bear market, eventually the bears would take back control of BTC and short it into oblivion, back below support at $17.6K and lower. ***If BTC breaks out of the trendline, don't get fooled into thinking that the Bear market is over and BTC has put in a bottom. Smart money will be looking to trap traders in a scenario like this. Why is this important? - Essentially, no matter what, I'm bearish on BTC. - This means that I believe there is a very high probability that ultimately BTC will trend much much lower. - I'm preparing my shorts, I'm planning my trades, and I'm looking for the ideal entry for a short position which I will ride out below the $17.6K support. Be Beary cautious in this type of market environment! Thats it for this BTC post, thanks everyone and best of luck trading!
BITSTAMP:BTCUSD
by natef1
1
AMD + The Power Of Confluence - Measured Move & Target LevelsHello Traders, here is my analysis for AMD. - I apologize for the crammed chart, I did the best I could to keep the chart as simple yet detailed as possible. - Onto the analysis... First off, if you're a new trader, this chart is an example of what the planning process for a swing trade could look like. Of course there are many different strategies, but for me this is the process I go through when planning a trade. ***Before I start with the breakdown, I want to point out how amazing TA can be: If you look at the chart, at the ("4)Bounce/Rally Target Level") at $85.50. That target was taken from finding the average % gain of the prior 3 bounces (36.76%) and projected it from $62 (Probable bottom). Whats so amazing is that the $85.50 level is also key resistance and directly at the descending trendline. - This amount of confluence tells me that there is a high probability that this move could play out in a similar fashion. Like many other charts, AMD is overdue for a bounce... The questions that need to be answered are: 1) What level do I think it will bounce from? 2) What is the potential profit target? 3) Where do I enter positions? 1) "Where do I think it will bounce from?" - To answer this, I used technical analysis to come up with the most probable level for a bottom. - $62 is where I believe AMD is most likely to bounce from. *As you can see AMD is oversold, this tells me that the sellers are likely becoming exhausted and will eventually stop selling. *It looks as though AMD may make a measured move (measure the prior high to swing low = 25.63% - Project 25.63% from the swing high at $85.5 = $62) *The measured move to $62 also happens to be a Gap Fill level which adds confluence to this potential target and adds confidence to this level being a bottom. 2) "What is the potential profit target?" - The potential profit target for a bounce is $85.50 (This is from being projected off $62) *I took the averages of the prior three bounces (36.76%) and projected it from the "probable bounce level" 3) "Where do I enter positions?" - First off, you never want to try and time the bottom for one entry. It's rare that anyone consistently can time bottoms. - More often than not you'll miss entries this way. *What you want to do is figure out where you think price will likely bounce from, in this case $62 and enter multiple positions at key support levels on the way down. *As you can see I've labeled Entries 1-3 on the chart. *Enter small positions (start with 1% - 2% of your portfolio) *You never want to be in a position where one trade can wipe you out. *Entering large positions is not trading, it's gambling. You increase the risk to a point where the probabilities are no longer in your favor. *Entering small positions ensures stability and longevity as a trader. That's it, I know it was long but I hope that this was informative. Thanks everyone and best of luck trading!
NASDAQ:AMDLong
by natef1
8
ASX Trades - AVL Long IdeaDisclaimer: I am a new trader, practicing my analysis and methodology and using these ideas to document and review my progress. All feedback is welcome! Price has been in a tight consolidation for several weeks now, but has remained above the 200EMA since breaking above it in late July. A clear base has formed at the 0.041 level during this consolidation period. Trade idea will be validated by an increase in buying volume, causing a breakout above the consolidation pattern. If price retests and confirms the 0.050 level as support, and RSI is above 50, then I will enter the trade. Initial stop loss will be below the pattern, and targets will be the previous monthly open prices (the dotted blue lines). The 9EMA will act as a trailing stop when/if the trade is active. This is a swing trade, which I will hold for 1-3 weeks depending on the market's movements.
ASX:AVLLong
by Amjoinery
QQQ- Bullish & Bearish Signals / Potential Trade SetupsHello Trader, here is my analysis for the QQQ. This week is a big week with the FED meeting on Wednesday. Pay close attention to price action leading up to that event. - If price comes into a key level the prior day, there is the potential for another large sell-off if institutions don't like what they hear. - It's also possible that we don't see much action until Wednesday as trades may want to wait and hear what the FED has to say. Onto the analysis... I've labeled the key factors that the Bulls will have to overcome if they want to have a shot at taking back control. - Right now the Bears have full control, especially considering that we have 2 lower highs in this current trend and have yet to see the bulls make a higher low. KEY LEVEL TO WATCH $293 is currently the most important level. If the Bulls can't take price above that level, they are in big trouble. - Think of it like this... Above $293 = Bullish. Below $293 = Bearish Potential Trade Setups To Watch For Shorts - If the Bulls can take price above $293, I will be scouting for short positions at key levels. - It's to early to say what that is because there are a lot of factors that come into play when planning trades, however the descending trendline, ,moving averages, and prior pivot high at $310 are all levels I'm keeping an eye on for a short. Longs - $269 is the main level I'm keeping an eye on for a potential long at the moment. There are several things that would have to happen first for me to take a trade at that level, primarily the speed at which price comes into that level. I will keep everyone update on this chart if a good trade entry arises. Remember, the QQQ is currently in a downtrend and the Bears have control. If the Bulls are going to take control there are many things that must happen first. As a trader looking at this chart, we know that there is a higher probability of trend continuation to the downside until the Bulls take back key levels. Thanks everyone and best of luck trading!
NASDAQ:QQQ
by natef1
5