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Patterntrading

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
NZDJPY - DAILY TECHNICAL BIAS WITH FUNDAMENTAL BIAS#NZDJPY By now, the market risk is off. Also, since NZD RATES are high, we expect NZDJPY to go UP again. We look forward to the future behavior of NZDJPY. The reason is because the interest rate of NZD is higher compared to JPY. NZD CPI DATA is also very high. Either way, NZDJPY should be slightly BUY with JPY WEAKNESS. Anyway, the PRICE can SELL again on the NZDJPY MAIN SUPPORT, if the MARKET RISK ON continues, to the 81.97 LEVEL. Earlier NZDJPY was SELL due to strong JPY and MARKET SENTIMENT is RISK OFF. After that, you can definitely buy at the 87.50 level. For that, MARKET RISK should be ON. STOCK UP, VIX DOWN, JPY WEAK. Besides, the USD should be WEAK.
by benny_marshall
USDCAD LONGSOff the daily, its not a rejecting pb. Its in the middle and hence a reaching pb. The daily candle is bullish after London session. Makes sense to look for longs on ltf. On h4 , look left and a previous swing low was taken out. This shows a strong origin. On m15, a good number of previous lows have been taken out(More than 2). This indicates a strong origin. We notice bullish momentum to a point that has been touched previously taking out the pre existing orders as the market ranged around that area and we expect a RTO. The Buy order is executed with tp at 50% of the origin and sl at the previous lowest low of the current m15 market. An extra order is added on m1 time frame off an order block and the trade is pyramided for maximal returns. Now we wait to see the trades results. Our work is done as as retail trade analysts. Now we wait. See you on the next trade ideas ladies and gents. Share & follow if this was of value.
Long
by Abraham_Tradez
2
EURJPY - FUNDAMENTAL AND TECHNICAL VIEW#EURJPY - EURJPY currently has an UPSIDE BIAS. With JPY WEAKNESS, XXXJPY CURRENCIES are being BUYED very fast right now. MARKET RISK is still being OFF. VIX IS DOWN, XXXJPY CURRENCIES BUY VERY FAST WITH JPY WEAKNESS. Maybe the EURJPY 147.69 LEVEL can be reached and BUY higher.. 147.69 is a very good resistance level.. - Some NEWS coming for the USD will help to weaken or strengthen the EURO. But in the future, if the RATE HIKE SENTIMENT is PRICED by the ECB, EURO may be BUY more. For that, the support of EURO STOCKS and VIX must be received. We have no more confirmation that the EURO is likely to be WEAK. EURJPY can sell at 140.110 level before BUY.
by benny_marshall
NZDUSD - CURRENT SITUATION AND TECHNICAL BIAS#NZDUSD - NZDUSD has been going down very fast in recent days. The reason for that is because of the VIX UP and the strength of the dollar. But because the MARKET RISK was ON in the previous few days, COMMODITIES also went UP very fast. Because of that, every NZD BASED CURRENCY PAIR was BUY. AUD, NZD, CAD, CURRENCIES BUY in these few days due to MARKET RISK ON again this week. For that, the influence of USD was very strong. Fomc update also affected it strongly this time. - Thus, COMMODITIES are being BUY quite fast. It also affects the NZD very strongly. - Anyway, NZDUSD can sell further until it reaches 0.5472 LEVEL.. After that, you can BREAK the TREND LINE and move to the NZDUSD 0.5875 LEVEL. Keep an eye on STOCKS, COMMODITIES, VIX, DXY, MARKET SENTIMENT. Then we can get very good ENTRIES.
by benny_marshall
NIFTY 50, LEVELS!!!this levels are based on the my analysis. when the makret consolidates meaning comes in a range after some big move, a great support and resistance lines can be formed. levels can also be formed, where and which level did market respect based on opening and closing time. market giving respect meaning both buyers and sellers had agreed to that level. i will soon post the patterns, and those trend lines formed by nifty. so stay connected!! i have not drawn levels from 16828 till bottom. BECAUSE I DONT BELIEVE MARKETS WILL GO DOWN, this analysis is been posted and you can check in the link sections
NSE:NIFTYLong
by raghavchoudhary2016
ATOM COSMOS INVERSE HEAD AND SHOULDERS!! 10% PUMP INCOMING!!Looking at QNT and Matic which have found their bottom its seems like we are getting a bit of relief rally in other altcoins. I have noticed a few with an inverse head and shoulders Pattern. Matic also had one and it played out. Possible 10% profit if it plays out with ATOM. No financial advise though :) It will be better confirmed if we get above $13.089 and use it as support. If this plays out I will be taking profit around $14.00.
ALong
by Luckyjimbob111
2
USDJPY - FURTHER JPY WILL STRONG OR NOT ? WHAT'S GOING ON UJ?#USDJPY - USDJPY is currently selling. The reason for this is the intervention of the BANK OF JAPAN for the JPY. With US ECONOMIC DATA being POSITIVE, UJ BUY was very good until last week. And FED UPDATES were very POSITIVE. So JPY went down automatically in previous days. But with the intervention of the BANK OF JAPAN, there is now a very good demand for YEN in the market. - At the moment, the MARKET is taking a bit of RISK OFF, that's why the JPY is going up. According to the USDJPY ANALYSIS we gave earlier, the USDJPY UPSIDE WAVE is going UP around 110 ++ PIPS. I hope you get it. It went down very fast before our TARGET. - There is definitely a high chance that USDJPY will go UP a bit more and move to 145.91 LEVEL. The reason for that is because the MARKETS RISK OFF is already happening, so it can happen. After that, the USDJPY price can break the TREND LINE and go up to 140.71 LEVEL. We focus on MARKET UPDATES and MARKET SENTIMENT. Follow the given MARKET STRUCTURE.
by benny_marshall
EURUSD - CURRENT SENTIMENT ANALYSE , DXY #EURUSD - Currently, the market sentiment for EUR is slightly on the DOWN SIDE. The main reason for that is because of the FOMC MEETING held yesterday. Due to MARKET RISK OFF yesterday, all MARKETS including STOCKS and COMMODITIES were slightly DOWN. If more rate hikes happen, it will definitely affect the US dollar in a big way to strengthen it. - Definitely, according to the market structure, EURUSD can go down to the support level below. There is currently a DOWN SIDE BIAS in the MARKET for EUR. Accordingly, EURUSD can go down to 0.9703 LEVEL. And after that, if the MAIN CHANNEL is BREAKED, the EURUSD PRICE can be BUY to the 1.0340 LEVEL, if the MARKET SENTIMENT changes and STOCKS and COMMODITIES start going UP. So keep an eye on it.
by benny_marshall
GBPJPY - FUNDAMENTALS WITH SECHNICAL BIAS#GBPJPY - According to the GBPJPY analysis we gave the previous day, the GBPJPY DOWN SIDE WAVE went very well. The reason for that was FUNDAMENTALLY STRONG JPY and STRONG MARKET SENTIMENT. XXXJPY has been selling very fast since last week. - JPY has become somewhat STRONG as VIX is slightly UP. Due to this, STOCKS and XXXJPY CURRENCY were slightly SELL. GBPJPY also SELL because of that. But now there is a RISK OFF BIAS. So GJ can still be SELL. - Currently GBPJPY LONG TERM can move up to the LEVEL 164.70. Also, if GBPJPY STRUCTURE BRAKE, it can move up to 149.09 LEVEL. Therefore, attention should be paid to MARKET UPDATES and MARKET SENTIMENT.
by benny_marshall