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Reversalpattern

NAS100USD: SMT Divergence Hints at Potential ReversalGreetings Traders, In today’s analysis of NAS100USD, although the current market structure reflects bearish institutional order flow, there are growing signs that a potential reversal may be forming. Key Observations: 1. Smart Money Technique (SMT) Divergence: We are currently observing SMT divergence—a strategy where the underlying asset (NAS100) is compared against its benchmark (US500). These indices typically maintain a 90–100% correlation. However, when this correlation breaks down, it often signals that a reversal may be imminent. In this case, while NAS100 continues to show bearish momentum, the divergence from US500 suggests the possibility of bullish interest building. 2. Institutional Support at the Rejection Block: Further confluence for a potential reversal lies in the presence of a rejection block acting as a strong institutional support level. This is a zone where smart money previously defended price, and if confirmed, it could provide an optimal entry for long positions. Trading Plan: We will monitor the rejection block for confirmation of bullish intent before entering any trades. If confirmed, the idea is to target the buy-side liquidity residing in premium pricing zones. Invalidation Level : This reversal idea will be invalidated if NAS500 breaks below its most recent swing low. Stay alert for confirmation, and always ensure the idea fits within your broader trading framework. Kind regards, The Architect
OANDA:NAS100USDLong
by The_Archi-tect
Netflix - The bulls just never stop!Netflix - NASDAQ:NFLX - is insanely bullish now: (click chart above to see the in depth analysis👆🏻) The entire stock market basically collapsed during April. Meanwhile, Netflix is creating new all time highs with a +20% parabolic bullish candle. Looking at the chart, this strength is very likely to continue even more until Netflix will (again) retest the upper resistance trendline. Levels to watch: $1.400 Keep your long term vision! Philip (BasicTrading)
NASDAQ:NFLXLong
by basictradingtv
10
Alibaba - This Chart Speaks In Money!Alibaba ( NYSE:BABA ) prepares for a significant pump: Click chart above to see the detailed analysis👆🏻 Basically since Alibaba was listed on the NYSE, it always perfectly respected market structure. With the recent rejection away from the key neckline, Alibaba is now creating a bullish break and retest. After bullish confirmation, this forms a bottom and we might see new all time highs. Levels to watch: $110, $140 Keep your long term vision, Philip (BasicTrading)
NYSE:BABALong
by basictradingtv
21
Solana - Here Comes The Bullish Reversal!Solana ( CRYPTO:SOLUSD ) might head for new all time highs: Click chart above to see the detailed analysis👆🏻 Just a couple of months ago, Solana perfectly retested the previous all time high and created an expected short term rejection. However, with the current major support area and a potential bullish reversal, Solana remains in a strong market, potentially heading for new all time highs. Levels to watch: $120, $250 Keep your long term vision, Philip (BasicTrading)
CRYPTO:SOLUSDLong
by basictradingtv
13
Tesla - This Is Actually Not Gambling!Tesla ( NASDAQ:TSLA ) still looks quite bullish: Click chart above to see the detailed analysis👆🏻 Just a couple of weeks ago I published a bunch of analysis, explaining all the reasons for a potential -40% drop on Tesla. However on the higher timeframe, Tesla still looks quite strong and with the bullish break and retest playing out so far, we could even see new all time highs soon. Levels to watch: $260, $400 Keep your long term vision, Philip (BasicTrading)
NASDAQ:TSLALong
by basictradingtv
50
Head and Shoulders Pattern: Advanced Analysis for Beginners█ Head and Shoulders Pattern: Advanced Analysis for Beginners The Head and Shoulders pattern is one of the most widely recognized and reliable patterns in technical analysis. And today, I am going to teach you how to use it as efficiently as an experienced trader would. Learning to spot and trade this pattern can be a great asset in your tool belt —whether you’re trading stocks, forex, or cryptocurrencies. The Head and Shoulders is a well-known reversal pattern in technical analysis that signals a potential trend change. ⚪ It consists of three peaks: The Left Shoulder: A peak followed by a decline. The Head: A higher peak formed after the left shoulder, followed by a decline. The Right Shoulder: A smaller peak resembling the left shoulder, followed by another decline. When these peaks form in a specific order and the price breaks below the neckline (the line connecting the two troughs between the shoulders), it indicates a bearish reversal from an uptrend to a downtrend. █ What about Bullish reversals? Don’t worry — there's good news! Conversely, the Inverse Head and Shoulders pattern forms at the bottom of a downtrend and signals a potential reversal to the upside. By recognizing the pattern early, you can position yourself for a high-probability trade with a clear entry and exit strategy. █ How to Identify a Head and Shoulders Pattern? I truly believe the best way to learn any trading strategy is to keep it simple, away from the “technical” jargon unless absolutely necessary. We’ll do the same with this strategy. Despite its varied usage, you can break it down into four simple steps: 1. Look for the Left Shoulder The first part of the pattern forms when the price rises , creating a peak. Then, it declines back down to form the trough . This creates the Left Shoulder of the pattern. Example: If the price of Bitcoin (BTC) rises from $85,000 to $90,000, and then declines to $87,500. This is your Left Shoulder. 2. Spot the Head The second part of the pattern is the Head . After the Left Shoulder, the price rises again , but this time, it forms a higher peak than the Left Shoulder. The price then declines again, creating a second trough . Example: Continuing with Bitcoin, after the price dropped to $87,500, it rises to a new high of $95,000 before dropping back to around $90,000. This $95,000 peak is the Head, which is higher than the Left Shoulder. 3. Find the Right Shoulder After the decline from the Head, the price rises again, but this time, the peak should be smaller than the Head, forming the Right Shoulder . The price then starts declining again, and this is where the neckline is formed (connecting the two troughs). Example: Bitcoin then rises from $90,000 to $92,000 (lower than the $95,000 peak). This forms the Right Shoulder, and the price starts to decline from there. 4. Draw the Neckline The neckline is drawn by connecting the lows (troughs) between the Left Shoulder and the Head, and between the Head and the Right Shoulder. This is your key reference level. █ How to Trade the Head and Shoulders Pattern Once you've spotted the Head and Shoulders pattern on your chart, it’s time to trade it. And yes, it did need a separate section of its own. This is where most amateur traders mess up - the finish line. 1. Wait for the Neckline Breakout The most crucial part of the Head and Shoulders pattern is the neckline breakout . This is when the price breaks below the neckline, signaling the start of the trend reversal. Example: After the price rises to form the Right Shoulder at $92,000, Bitcoin then drops below the neckline (around $90,000). This is the confirmation that the pattern is complete. The price of BTCUSD is likely to continue downward past the 90k mark. 2. Enter the Trade Once the price breaks below the neckline, enter a short position (for a bearish Head and Shoulders pattern). This is your signal that the market is reversing from an uptrend to a downtrend. 3. Set Your Stop Loss Your stop loss should be placed just above the right shoulder for a bearish Head and Shoulders pattern . This makes sure you are protected in case the pattern fails and the price reverses back upward. Example: Place your stop loss at around $93,000 (just above the Right Shoulder at $92,000) on BTCUSD. You can also try one of these strategies I have used in the past: ⚪ Conservative Stop: Place the stop above the head (for bearish H&S) or below the head (for bullish iH&S) for maximum safety. ⚪ Aggressive Stop: Place the stop above the right shoulder (for bearish H&S) or below the right shoulder (for bullish iH&S) to reduce your stop size. ⚪ Neckline Reclaim Invalidation: Exit the trade if the price reclaims the neckline after breaking it. This could be an indication of a false positive/invalid pattern. 4. Set Your Profit Target To calculate your profit target, measure the distance from the top of the Head to the neckline and project that distance downward from the breakout point. Example: The distance from the Head at $95,000 to the neckline at $90,000 is $5,000. So, after the price breaks the neckline, project that $5,000 downward from the breakout point ($89,800), which gives you a target of $84,800. 5. Monitor the Trade We’re in the home stretch now, people. This is the 9th inning. There’s only one job left: keeping an eye on any retests or contrarian moves. As the price moves in your favor, you can scale out or move your stop loss to break even to lock in profits. █ What makes H&S strategy an all-time classic? It’s simple. It works. This pattern works because it reflects a shift in market sentiment: In a Head and Shoulders pattern , the uptrend slows down as the market struggles to make new highs, and then the price ultimately breaks down, signaling that the bulls have lost control. In an Inverse Head and Shoulders pattern , the downtrend weakens as the market fails to make new lows, and the price breaks upwards, signaling a bullish reversal. ⚪ Here are a few points to remember as a cheatsheet for Head and Shoulders patterns: Wait for the neckline breakout to confirm the pattern. Set a stop loss above the right shoulder for protection. Project the price target using the height of the head for a realistic profit goal. Always monitor the trade for any signs of reversal or false breakouts. Mastering this pattern can be a game-changer for any trader, but like any tool, it’s only effective when combined with other indicators, strategies, and a solid risk management plan. ----------------- Disclaimer The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Education
by Zeiierman
4
Google - Fantastic Bullish Break And Retest!Google ( NASDAQ:GOOGL ) just looks amazing: Click chart above to see the detailed analysis👆🏻 For more than a decade, Google has been trading in a rising channel formation, perfectly respecting all market structure. Now, Google is about to retest the previous all time high once again and with a sharp correction of about -25%, this offers a significant bullish reversal setup. Levels to watch: $150 Keep your long term vision, Philip (BasicTrading)
NASDAQ:GOOGLLong
by basictradingtv
23
Dow Jones - Value Is The King Of 2025!Dow Jones ( TVC:DJI ) withstands all bearish struggles: Click chart above to see the detailed analysis👆🏻 All major U.S. indices have been weakening lately but the Dow Jones is clearly the strongest of all. It seems like big institutions are shifting back to value stocks and therefore the Dow Jones remains very strong. Looking at technicals, this trend is rather likely to continue during 2025. Levels to watch: $40.000, $50.000 Keep your long term vision, Philip (BasicTrading)
TVC:DJILong
by basictradingtv
8
Amd - The One And Only Setup For 2025!Amd ( NASDAQ:AMD ) shifts to a very bullish market: Click chart above to see the detailed analysis👆🏻 Perfectly following previous cycles, Amd corrected about -60% over the past couple of months. However now we are seeing some first bullish signs at a major confluence of support. If we actually also witness bullish confirmation, an incredible rally of about +200% could follow. Levels to watch: $100, $300 Keep your long term vision, Philip (BasicTrading)
NASDAQ:AMDLong
by basictradingtv
27
Intel - This Stock Is A Goldmine!Intel ( NASDAQ:INTC ) perfectly respects all structure: Click chart above to see the detailed analysis👆🏻 Over the past couple of years Intel clearly established a significant downtrend, dropping about -70% after we saw the previous all time high. This bearish pressure is now ending though and if Intel manages to create a bullish reversal break and retest, a new uptrend is starting to form. Levels to watch: $25 Keep your long term vision, Philip (BasicTrading)
NASDAQ:INTCLong
by basictradingtv
30
"Gold Approaching Key Support – Will Bulls Take Control?"🔹 Market Structure: Gold is currently in a corrective phase after a strong bullish run, facing a pullback from recent highs around $3,160. The price has now approached a key horizontal support zone near $2,980 - $3,020. 🔹 Key Levels: ✅ Resistance: ~$3,160 (previous high) ✅ Horizontal Support: ~$2,980 - $3,020 (marked in blue) ✅ Target Level: ~$3,099 (potential bounce area) 🔹 Potential Scenarios: 1️⃣ Bullish Reversal: If the price finds support in the marked zone and forms bullish confirmation (e.g., hammer candle, bullish engulfing), we could see a retest of $3,099 and potentially higher levels. 2️⃣ Breakdown Scenario: If support fails, gold may see further downside towards $2,950 or lower. 🔹 Trading Plan: 📈 Buy Setup: Look for bullish confirmation near support (~$3,020) with a target of $3,099 - $3,120. 📉 Sell Setup: If support breaks, short positions could target $2,950 - $2,920. 🔸 Bias: Bullish above support, bearish below it. 🔸 Risk Management: Use a stop-loss below support (~$2,980) to manage risk. Would you like me to refine this further or add any indicators like RSI, Moving Averages, etc.? 🚀
OANDA:XAUUSDLong
by PIPsOptimizer
1
USDCAD Trade Idea (1H Chart Analysis)**USDCAD Trade Idea (1H Chart Analysis)** **Market Structure:** - The price is in a **downtrend** on the 1H chart, with lower highs and lower lows forming. - It is currently testing a **key support level** around **1.4350**. - The **50 EMA (black line) is above the price**, confirming bearish momentum. - The recent candles show **decreasing volume**, indicating possible consolidation before the next move. **Trade Plan** **Scenario 1: Bearish Breakdown (Sell Trade)** 📉 **Entry:** Below **1.4350**, after a strong bearish candle closes. 🎯 **Target 1:** **1.4320** (previous minor support) 🎯 **Target 2:** **1.4280** (stronger support zone) 🛑 **Stop Loss:** **1.4375** (above recent lower high) 📊 **Risk-to-Reward Ratio:** 1:2 or better **Confirmation:** If price breaks 1.4350 with strong volume, it signals continuation of the downtrend. **Scenario 2: Bullish Reversal (Buy Trade)** 📈 **Entry:** If price **bounces from 1.4350** and forms a strong bullish engulfing candle. 🎯 **Target 1:** **1.4395** (previous resistance) 🎯 **Target 2:** **1.4415-1.4420** (major resistance zone) 🛑 **Stop Loss:** **1.4335** (below recent low) 📊 **Risk-to-Reward Ratio:** 1:2 **Confirmation:** A strong rejection from 1.4350 with bullish volume indicates potential reversal. **Final Thoughts** - **Bias:** Bearish unless we see a clear reversal signal at 1.4350. - **Watch for a breakout or bounce at key levels before entering.** - **Always use risk management** – never risk more than 1-2% per trade!
by elitetrader9090
Diamond Pattern Trading: How to Spot and Trade This SignalSome patterns scream for attention, while others sneak up on traders who aren’t looking closely. The diamond pattern is one of those sneaky ones—a formation that hints at a brewing reversal but requires a sharp eye to catch. Let’s dive into what this pattern looks like, how it forms, and the best strategies for effectively trading diamond top patterns and diamond bottom patterns. What Is a Diamond Pattern? The diamond pattern is a reversal chart pattern that occurs after a strong trend, indicating a potential shift in market direction. It forms when price action expands and then contracts, creating a shape that resembles a diamond. This pattern is rare compared to triangles or head and shoulders formations, but it often signals significant price moves when it appears. There are two types of diamond patterns: Diamond Top Pattern – A 🐻 Reversal Pattern That Appears After an Uptrend. Diamond Bottom Pattern – A 🐂 Reversal Pattern That Forms After a Downtrend. These patterns can help traders identify potential turning points and prepare for a change in trend. How to Identify a Diamond Pattern in Trading? To spot a diamond pattern trading setup, look for the following characteristics: Broadening Formation: The price action initially expands, creating higher highs and lower lows. Narrowing Structure: After the expansion, the price contracts, forming lower highs and higher lows. Symmetrical Shape: When trendlines are drawn connecting the highs and lows, they create a diamond shape. Breakout Point: The pattern is confirmed when the price breaks out of the structure, either to the upside or downside. While it might resemble a diamond quilt pattern or diamond tile pattern on the chart, the key difference is its role as a market reversal signal. Diamond Top Pattern: Bearish Reversal A diamond top pattern forms at the peak of an uptrend and signals that bullish momentum is weakening. Traders often look for a downside breakout to confirm the reversal. How to Trade a Diamond Top Pattern: Identify the diamond formation after a strong uptrend. Wait for a breakout below the lower trendline with increased volume. Enter a short position once the breakout is confirmed. Set a stop-loss above the recent high. Target price: Measure the height of the pattern and project it downward. This pattern suggests buyers are losing control, and a downtrend will likely follow. Diamond Bottom Pattern: Bullish Reversal A diamond bottom pattern appears at the end of a downtrend, indicating a potential shift to bullish momentum. How to Trade a Diamond Bottom Pattern: Identify the diamond shape forming after a downtrend. Wait for an upside breakout above the upper trendline with strong volume. Enter a long position once the breakout is confirmed. Set a stop-loss below the recent low. Target price: Measure the pattern’s height and project it upward. This pattern signals that selling pressure decreases, and buyers may take control. Why the Diamond Pattern Is Important for Traders Reliable Reversal Signal. The diamond pattern trading setup strongly indicates trend reversals. Clear Entry and Exit Points. Well-defined breakout levels make risk management easier. Works in Different Markets. Whether trading stocks, forex, or crypto, the diamond pattern remains effective. Final Thoughts The diamond pattern is a rare but powerful tool that can help traders confidently spot trend reversals. Whether you’re trading a diamond top pattern for bearish setups or a diamond bottom pattern for bullish breakouts, understanding this formation can give you an edge in the market. So, traders, have you spotted a diamond pattern trading setup recently? Share your experiences and strategies in the comments!
WHITEBIT:BTCUSDEducation
by WhiteBIT