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Ethereum: A clear path ahead for the end of 2021Head & Shoulders Explained The Head & Shoulders Pattern & Inverse Head & Shoulders Patterns are quite common on Bitcoin and have had great results on the higher timeframe charts. Here are the main characteristics: • VOLUME MIMICS PATTERN • 3 PEAKS, LEFT & RIGHT SIMILAR HEIGHT • TRIANGULAR IN APPEARANCE • FOUND AFTER UPTREND • HIGH SUCCESS RATE • CAN BE SLANTED Price forms 3 distinct peaks after a strong uptrend, the left and right peak should have a similar height (shoulders), the middle peak (head) has to be the highest or this can not be a HS pattern . They should seem triangular in appearance but as long as it fits the main characteristics can still be a valid pattern. The right shoulder should form a lower high which is a early sign of trend change, this is entry A, with entry B being the bearish retest of of the “neckline” (marked on chart #2). The idea is to gain an early entry on the pattern at point A to maximise profits and reduce risk. Once price moves above the middle "peak" it is likely that the pattern is not valid anymore so this allows us to get a tight stop loss upon entry. We measure the height of the pattern and add it to the breakout level for a maximum possible price target. Volume should also paint the same pattern with the 3 peaks, strong volume on breakout increases success rate. ----------------------------------------------------------------- What is General Pattern Failure? General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout. Pictured above in the original post on the left (its quite small but zoomed out to get the bigger picture) is a normal breakout on a Head And Shoulders Pattern. Note how it matches the first example (top left, "Normal Breakout"). General pattern failure can also be considered a Liquidity Grab or can be referred to as a “Fake Out” also when it happens more rapidly after the original pattern breakout. In this example (top right as the example, pointing to the live chart at bottom right) it has come back up to the Head & Shoulders pattern after a long extended period of time, this doesn't mean the failure still cannot occur. Once price gets back inside the pattern chances of higher prices are more probable. ----------------------------------------------------------------- Learning to trade patterns such as these can provide great opportunities if you understand price action and how to identify the key areas of the pattern that other traders and investors may be focusing on too, these areas become important psychological levels on the chart. If you found the idea insightful please share, like or comment, Thank you!
FTX:ETHUSDLong
by Worth_The_Ri5k
A case for both Bears & Bulls (Fractal Repetition or Bear Trap?)Noticed that $BTC is potentially repeating a pattern that we've all seen recently... We could be seeing either: - A highly coordinated bear trap.. or - A continuation of the current correction.. Thoughts?? *moved the pattern down a bit to make it easier to see* Now while pattern similarity doesn't necessarily mean guaranteed PA (Price Action) this is still a concern to keep in mind... A side note However, is the US and Asian Stock Markets have been quite undecided as of late, maybe we see a correction on them which causes a drop in crypto (due to the correlation) ? Here are my current thoughts: ^Above is the fractal shown Now taking into account some of my previous charts on the stock indices, We could see a correction from them which causes Bitcoin to finish off this fractal it's been painting? Here is a combined ticker on global stocks: Having a look at SPX we can see a potential bearish setup also as it's currently breaking down: And we have a similar situation for the following 3 indices: Bearish setups and/or bearish breakdowns.. With the potential correction on various stocks, this could complete the fractal for BTC as shown in the chart... or It's just one major and elaborate bear trap before a major bullish continuation... A well thought out bear trap makes sense from a Macro point of view also! However, Only time can tell from here, But it's good to keep in mind this fractal & the information above.. Good luck! Related Ideas below: Some food for thought that's for sure... What are your thoughts?? *Symbol tags below, Ignore these* INDEX:BTCUSD BITSTAMP:BTCUSD COINBASE:BTCUSD BITFINEX:BTCUSD BINANCE:BTCUSD BINANCEUS:BTCUSD FTX:BTCUSD GEMINI:BTCUSD BINANCE:BTCUSDT KUCOIN:BTCUSDT HUOBI:BTCUSDT OKEX:BTCUSDT BITTREX:BTCUSDT POLONIEX:BTCUSDT COINBASE:BTCUSDT BINANCEUS:BTCUSDT FTX:BTCUSDT BITSTAMP:BTCUSDT BINANCE:BTCUSDTPERP BYBIT:BTCUSDT BINANCE:BTCUSDT_PREMIUM SP:SPX TVC:SPX OANDA:SPX500USD DJ:W1DOW NASDAQ:NQGI NASDAQ:NQGM CRYPTOCAP:TOTAL CRYPTOCAP:TOTAL2 CRYPTOCAP:TOTAL3 INDEX:SATSUSD BNC:BLX *Symbol tags above, Ignore these*
INDEX:BTCUSD
by RandomOracle
19
$AAPL Drew this on 10.12 Inverse H&S bottom, needs neck-L break Hello Traders, I drew the attached on 10.12 for a discord group I'm in and the H&S Bottom pattern still stands. If it breaks the neckline we should see a reversal and a continued push higher (although, today I did circle that the closing price is currently at the exact edge of my regression channel). As I mentioned in my previous recent posts, the market has been a bit indecisive as of late so make sure to manage your risk. We did see the VIX drop way down to about 16.80 down from yesterdays high of 20+... So things are cooling off a little bit. Today felt like the markets equivalent of a sigh of relief, gapping up past SPY's resistance overnight and ending the day near the high. Feeling much more bullish going into Friday. Good luck! Cheers, Mike
NASDAQ:AAPL
by UPRIGHTTrading
Is something big coming?If you don't know about the VIX, why are you trading? It's an index of volatility in the S&P500. But.. but.. hold on. What happens in the S&P500 affects loads of other things, like key forex pairs e.g. AUD, NZD, JPY, USD It won't tell you about entry and exit points in your trades. But it could tell you when markets are very volatile. Wait - aren't traders supposed to love volatility? Well, yes and no. There are basically two types of traders: 1 - those who know how to exploit volatility with sound strategies 2 - those who fear volatility and are basically gambling. I'm not saying anything about any trader who reads this. What I am saying is, "Get develop the skills to exploit volatility." So what does the chart show. It's showing that the Vix is wild and that every few months, it goes into a frenzy. I don't expect the Vix to have a regular interval. If that was the case then 'everybody' would wait for the right time and make a killing in the markets. I'm saying that the last long run of lowish volatility may herald a new round, as folk get shaken out or make millions. This is not trading advice. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
CBOE:VIX
by Captain_Walker
6
price action patterns you need to know ( part 3 ) hi my friends , i'll share with you some patterns which can help you in trading and make it easy . we find double bottom in downtrend and this pattern mean that price will change to the opposite direction ( long ) and we can use the line as a confirmation . double top appear in uptrend as signal of price change ( short ) and we can use the line as a confirmation . note : both of them ar reversal patterns please support me with like and follow me for more ideas .
Education
by Diamond_Chart
AAPL Short (PT: $137)- With the current state of the market, AAPL can still see a drop in price. If we look back on the chart, we have a strong support zone of around $137. This zone is also confirmed by a gap up back at the beginning of July. AAPL will have to fill that gap up and it will hold that zone because in the past it was a strong area of resistance. If we don't hold the support then I will be watching 134.40 all the way down to the POC line for the next area of support. - Another indicator I am using to show AAPL will keep heading down is the gap in the volume profile. On the right of the chart, the level we are at is right above the gap, if we don't hold this level on the next trading week we could see it fall through. - A counter perspective we could see playout for the next trading week, is AAPL breakout above the trendline it has been following these past few weeks. A point to support this is the RSI divergence seen this last week of trading.
NASDAQ:AAPLShort
by Canoesurf
Pattern seeking!Is this the Wyckoff Pattern or something else? Whatever i see i saw often in the Bitcoin chart that there is for a specific time a recurring pattern. And it gets smaller and smaller. Than big again... What i am talking about are fractals. I dont know if i see it because it is my trading style and i see other traders trading like me. Or are that the algos?? Idk. But i trade what i see. And when i see a recurring pattern it helps me to position myself and trust in that what i see and trade. Just a crazy idea. But the ratios the pattern repeat are also in a quite interesting ratio. I just can recommend to read more about Mendelbrot and the chaos theory.
BINANCE:BTCUSD.P
by Cashflowjaque
Education excerpt: Classic Chart FormationsIntroduction The part of technical analysis studies chart patterns. Rationale behind this practice is that chart patterns have fractal nature which represents ability of a trend to act similarly over different time periods. Chart patterns are basically configuration of price that is bounded above and below. Boundaries are commonly derived either from a line or a curve. Lines, for example, can be represented by simple horizontal lines or trend lines. Curve, on the other hand, is rather reminiscent of an arc or a bow in its shape. Boundaries in chart patterns can often act as support or resistance. All chart patterns have their development stages. There is first stage which describes the trend preceding the formation and then there is second stage which usually triggers the signal for action. In the first stage of pattern formation analyst merely observes price action and waits for signal to be triggered. This stage can also be called setup. The second stage then begins with signal being triggered. Trigger can, for example, come in a form of a crossover (by indicator, price, etc.) or breakout. In this stage analyst takes action and either enters or exits the market. Entry can be placed from above or from below. Similarly, exit can be downward or upward. The variables of entries and exits are statistically important because some combinations of entries and exits tend to produce better results than other combinations of entries and exits. The chart patterns can be subdivided in two groups: continuation patterns and reversal patterns. Continuation patterns are associated with continuation of trend that was present prior to the formation of a continuation pattern. On the other hand, reversal patterns are associated with reversal of trend that was in place prior to the formation of a reversal pattern. Double Top and Double Bottom Double top and double bottom formation is very simple pattern that is well known to many professional and retail traders. It consists of three reversal points. For double top these reversal points are: two peaks and one trough. Opposite to that, for double bottom formation reversal points are: two troughs and one peak. Price enters double top formation from below and double bottom formation from above. Peaks in double top and troughs in double bottom should not be apart from each other’s price level more than 5%. Double top and double bottom normally forms over two to six weeks. If formation takes longer then it starts becoming less reliable. Double top is valid only when point separating two peaks was penetrated. Similarly, double bottom is valid only when point isolating two troughs was penetrated. Illustration 1.01 Picture above depicts graph of General Motors stock on daily timeframe. It is observable that price touched resistance line twice before reversing to the downside. Rectangle Rectangle is simple pattern that is bound by two horizontal lines that are parallel to each other. These lines acting as boundaries are called: support and resistance. Each boundary must also be a trend line. That means it must touch approximately same price reversal level at least twice. This particular requirement is what separates it from a double bottom or a double top formation. Price tends to oscillate between two bounds in the rectangle pattern. Then trigger comes in a form of breakout above resistance or below support. Illustration 1.02 Picture above depicts graph of Pepsico stock on daily timeframe. It is observable that price action is sideways in this example. Price oscillates between resistance and support lines with occasional false breakouts below support. Triple Top and Triple Bottom The triple top and bottom pattern is bounded by horizontal line similarly like double top and bottom formation. However, this pattern differs from double formation in that it has three touches to the support or resistance line instead of just two touches. Triple top and bottom tends to occur with lower frequency in comparison to the rectangle and double formation. In triple top each peak should be roughly at the same level and each peak should have similar shape. Confirmation for triple top comes once troughs are penetrated to the upside. Triple bottom is basically mirror image of triple top and confirmation comes once breakout above peaks takes place. Pullbacks are very common for this formation and they tend to reduce breakout potential. Standard Triangle Triangle pattern is bounded by two lines that are crossing each other when they are extended to the future. Triangle pattern has its base and apex. Point of collision between two lines is called apex while base is basically a distance between the first high reversal point and the first low reversal point within triangle pattern. This pattern should consist of least two touches to the support line and another two touches to the resistance line. Standard triangle can be either symmetrical or ascending, or descending. Symmetrical triangle is considered to be continuation pattern while ascending and descending triangle is mostly regarded as reversal pattern. In symmetrical triangle both boundaries are at slope. In ascending triangle only lower bound is at slope while upper bound is horizontal. Contrary to that, in descending triangle upper boundary is at slope and lower bound is horizontal. These patterns are validated once breakout above or below boundary takes place. Another form of confirmation comes when breakout from an apex of triangle occurs. Illustration 1.03 Picture above shows daily graph of TSLA stock. Formation of symmetrical triangle is observable. Diamond top Diamond top formation is rare broadening pattern that is very difficult to observe. It combines two triangles and can be imagined as mirror image of triangle pattern followed by triangle pattern. Price range increases and then decreases throughout this formation. Wedge A wedge pattern is simply a triangle pattern with both trend lines being at slope and pointing to the same direction. There are two types of wedges: a rising wedge and a declining wedge. A rising wedge consists of trend lines that point upwards while declining wedge contains trend lines that point downwards. Illustration 1.04 Illustration above shows daily graph of DAL stock. It is visible that confirmation came after breakout above upper bound. After that price continued to rise. This pattern is very bullish once confirmation occurs. Rounding Top and Rounding Bottom Rounding top and bottom patterns are longer term formations that are bounded rather by an arc than horizontal line. Rounding of the pattern usually spans over long time and it tends to contain short term trends within its formation. Another interchangeable name for these formations is: saucer or bowl, or cup. There is also variation of this pattern that develops over shorter period of time and it is called scallop. Volume in rounding top tends to gradually increase as price increases towards the peak of the formation. Then it tends to fall as price decreases from the peak. Similarly, in rounding bottom volume tends to decrease as price is approaching a low. After that volume tends to increase as price starts to rise from a low. Head and shoulders Head and shoulder pattern is one of the most famous chart patterns with statistical significance and very high profitability. It is complex pattern that combines trend lines, support or resistance lines, and rounding. Head and shoulders pattern is normally preceded by uptrend while inverted head and shoulder formation is preceded by downtrend. This pattern is considered to be reversal pattern where head and shoulders is topping formation and inverted head and shoulders is bottoming formation. Pattern's structure consists of head, shoulders and neckline. Head is either high in topping formation or low in the bottoming formation. Neckline in topping pattern is simply trend line which connects two troughs that separate head and shoulders. In bottoming formation neckline connects two peaks that separate head and shoulders. Illustration 1.05 Picture above shows daily graph of Pepsico stock. Inverted head and shoulders pattern is obsrvable bottoming head and shoulder pattern is formed by three troughs. The second trough must belower than the first and the third trough. The first trough is called left shoulder and third trough is called right shoulder. Middle trough is called head. Shoulders do not have to be the same height. Because of that neckline can be at slope in head and shoulder formation. Confirmation in this pattern comes once neckline is penetrated. Disclaimer: This content is just an excerpt from full document that will be available later with full range of illustrations and more detail. Purpose of this content is education.
NYSE:DALEducation
by Tradersweekly
8
BITCOIN Making A Massive Triangle AGAIN? Hello,Traders! BITCOIN has a habit of trading in triangles Small and big ones on different timeframes And Now one can see That the coin might be forming its biggest triangle yet Which implies that it will keep bouncing off the 28k level But each of the rebounds will be less and less powerful Until something happens and we see a breakout Either to the upside or the downside But if the triangle hypothesis is correct Then we are currently entering a bear leg of the market Sell! Like, comment and subscribe to boost your trading! See other ideas below too!
BITSTAMP:BTCUSDShort
by TopTradingSignals
16
NZDJPY LONGING SENTIMENT ..there is a clear break in the resistance brick wall in the downtrend on this pair , what we are looking forward to is the reach of the the retest zone then hop on the lowest entry timeframe for a chance of longing this , there are two levels indicated by the red layers which are our previous lower lows of the down trend , at each we will be looking for a longing chances as the market is still bullish . when the price breaks the lowest low , this analysis could be disregarded .
Long
by DIGITALASSETSINC