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Corrective pattern after Corrective pattern BA keeps going upToday we have a great chart to share: "BOEING." Since the bottom of the pandemic bearish movement (MARCH 2020), we have observed a sequence of corrective patterns and breakouts that makes a series of higher highs and higher lows (what defines a bullish trend). In the previous 3 patterns every time we had a breakout, a bullish movement continued. So, what can we say about the current one? The current corrective pattern is very interesting because it is formed on the edge of the broken descending trendline (main bearish structure since March 2019). From a technical perspective is a great pattern to look for (Clear corrective movement on the edge of a Higher degree structure) Another important detail is that we have a well-defined Bullish Structure. In this case is the yellow ascending channel, which provides us with a good take profit level. On the chart, we have provided a Green horizontal line (which is an activation level) and a red horizontal line (which is an invalidation or stop level). The idea here is to develop a setup with a risk rewards ratio of 2 and an expected duration in the case goes as planed between 40 to 50 days. Thanks for reading!
NYSE:BALong
by ThinkingAntsOk
Stocks Facing ResistanceStocks have returned to 4178, exactly the level to which we alerted you yesterday. This and 4188 will provide resistance and the S&P is likely to range for a bit in a sideways correction after last month's rally. The range appears to be bounded from above by the levels just mentioned, and from below by 4068. Watch for it to form a consolidation pattern like a bull wedge before attempting another breakout, which would take us back to 4214, or if we are feeling ambitious, to highs at 4245. The Kovach OBV is picking up strength, but we will see at open if this is enough to break current levels. If momentum does not come through at the open, or its paltry, we are highly likely to reject those upper levels and retrace to 4144 at least. This would make a great short trade.
FX:SPX500Short
by quantguy
My experience as a breaokut trader on stocksFirst of all, what is a breakout trader? It's a type of style in which we look for a clear consolidation period, and we aim to trade after the pattern is broken. Check the main chart on TSLA to get the concept. The main idea of this comes from the Elliott Wave principle, in which consolidations tend to be the beginning of a new motive wave or impulsive wave. Why are we saying "Tend"? Because it's a probabilistic scenario, we do not have certainty about any given trade outcome. (We will speak about this later) Let speak about the main idea of this There are 4 types of corrective patterns that you can use to wait for a breakout. We have seen that the best structures to trade are Flat, Zig-Zags and Triangles. Irregulars tend to be confusing situations. now we will check some key ideas that we have learned Always trade above B and set your stop loss below the structure By doing this, you will be able to avoid many fake-outs, which will increment your Win Rate. Also, you must look for situations where you have a risk-reward ratio above 1.7 Here you can check an image where trading above B would have saved you from a fake-out. Context is Everything Never trade a structure because looks nice. You need to find a beautiful context for every structure you are planning to trade. Take this situation as an idea of a great place to develop a setup. What can you expect from this type of trading? You can expect to have a win rate between 45% to 60% depending on your level of accuracy looking for structures. And you can expect an average risk rewards ratio of 1.7 / 2 Thanks for reading!
NASDAQ:TSLAEducation
by ThinkingAntsOk
Stocks Struggle for SupportStocks found support at 4068. The S&P made an attempt at a breakout but this was quickly thwarted by resistance at 4122. It looks like we finally found some stability around current levels and may be ranging or consolidating as we gear up for another attempt at a breakout. There is still a lot of down side risk, and the Kovach OBV is still pretty bearish. Another tumble could easily take us to 4009, which is the last level of support in the 4000 handle. If we can muster some momentum we will next find resistance at 4178 and 4188.
FX:SPX500Long
by quantguy
Key Patterns Of Price ActionKey patterns of price action. Below I will describe several key patterns, but on the diagrams you can see the analysis from a technical point of view. And also please pay attention to the rules, which I do not advise to ignore. The Cup with a handle pattern is formed according to the following logic: - On an upward movement, the bulls cannot push through the next resistance level , a correction begins. It is undesirable that there were impulses during a rollback, a moderate downward movement should be observed; -By basic rules, the bottom of the cup should be formed in the area of correction levels. A deeper rollback is allowed in modified models. In case of a deep correction after entering the market, the position is transferred to breakeven as soon as possible, the probability of the trend continuation is lower, it is better to insure; Double bottom It all starts with the formation of a new low on a downtrend, after which a rollback against the trend occurs. Then, the price goes down again and rests against the previous low. And finally, after pushing off from this level, an upward movement begins, which breaks through the level of the previous local maximum. It is after the breakout of this level (confirmation line) that the final formation of the 'Double Bottom' occurs and you can start buying. The same is with a reversal in an upward market. After the first high, the price should fall by at least 10%. Otherwise, it will mean that the bears are not strong enough. Saucer Let's start with the shape of the figure. Contrary to its name, the correct shape of the 'Saucer' figure rather resembles a bowl. As you can see, the figure is formed by a smooth price movement along a parabolic trajectory. The first half of the figure (the left side of the saucer) is a smooth descent from the edge of the saucer to its bottom. The second half of the figure (the right side of the saucer) is the same smooth rise from the bottom to the edge. Ideally, the second half should be a mirror image of the first. And the bottom should in no case be sharp . The classic 'Saucer' is formed, as a rule, on large timeframes from D1. But you can also find him on H1. Flat base In trading, the term flat means an area on the chart, without a clearly defined direction of price movement, that is, a trend. In other words, flat is the opposite of a trend. Misc Rules -all BP = 10 pips -ideal prior uptrend >30% -for wks abv avg vol: #up>#down -up 20% for new base - undercut base resets base count - 66% or 3rd stage base fails - 80% of 4th stage base fails - in base bottom look for - shakeout - tight closes - volume dryout - accumulation
Editors' picks
Education
by DeGRAM
18
On verge of major breakout (continued..)Bullish harmonic. Pattern in combination of low float stock such as KMPH is very bullish setup especially since the stock has been hovering around previous highest volume day of 1M shares traded. the stock has been hovering around 900k and reluctant to break 1M but the tutes are getting anxious as investor Samuel Braun decided to add to his position and steal shares from tutes attempting to manipulate stock price so they could add more. With KMPH’s new big blockbuster treatment for ADHD and main ingredient SDX which was recently announced to have received a Schedule IV narcotic (all other Stimulant based ADHD such as adderrall and Ritalin are schedule 2) the company looks to soon initiate KP879 which is comprised of SDX and will be first of kind treatment for stimulant use disorder (there are currently no treatments for SUD). Also Corium has told KMPH CEO Travis Mickle they would like to see kmph get Azstarys label expansion for treatment of ADHD in pre-schoolers! Exciting times ahead for Kempharm team. Disclosure: i am long KMPH. I am not a licensed financial analyst and this information is to be used for educational purposes only.
KLong
by follow_the_money
Daily Analysis on VISA / Inside an ascending channelToday, we will take a look at Visa. - The main aspect we can see is the ascending channel as the main bullish structure - The second item we see on the chart is the dynamic support resistance zone that has been tested several times from above and below - Currently, we observe a corrective structure that tends to behave as a continuation pattern after the breakout. - Based on all the previous items. If the price reaches the green line, we will consider it an activation level for this view. Final Target the higher trendline of the ascending channel - The expected duration for this movement if the price reaches the green line is between 30 and 50 days.
NYSE:V
by ThinkingAntsOk
2
Stocks Struggling To Break OutStocks found support at 4144, as we anticipated they would. They are currently testing 4178 and 4188, perhaps in the process of forming a bull wedge pattern before potentially breaking out to higher levels. Momentum at open will be critical to achieve higher levels. The Kovach OBV is still struggling to recover from the massive selloff, suggesting that we aren't seeing enough momentum just yet, at least with respect to that. There is a vacuum zone above our current levels to 4214. If we break out, this will be the next target. If not, there will be support at 4122.
FX:SPX500Long
by quantguy
Our Full Analysis on NIO explained This is a complete review of the current situation on NIO lets starts: 1) The price made a new local low since the previous ATH at 67,00. The current Draw Down is -53%, with a time duration of 123 days. 2) Currently, the price is a little bit below a clear support zone at 33,00. From here, we can start working on some possible situations 3) BEARISH SITUATION: If the price keeps falling from current levels, we do not have close support zones; the next level we can observe is 16,56, and finally, the cloned descending channel. We are not interested in shorting the stock; this is an idea of possible demands zone if the bearish trend continues. 4) Let's assume the price is not able to break the support zone, and we have a breakout of the FIRST yellow trendline. If that happens, we will avoid trading in the area between 33 and 46. The reason is that we don't have a clear direction defined in that area. So we want to see a breakout above the previous resistance zone at 46 to start thinking about possible setups. 5) If the price can reach 46 and we observe a small corrective pattern above the resistance zone, we will look for short-term setups between 46 and 57. ONLY if the risk-reward ratio we can observe is higher than 1.7. Otherwise, we will not execute any setup 6) Now we will speak about the perfect trading zone for swing traders or position traders. The best level is above the 2 descending yellow trendlines and the resistance zone at 57. Why there? Because we will be above all the bearish structures with a high probability of a new bullish trend starting. The idea here will be to look for a corrective movement once the breakout happens (like the green circle) The main goal of this post is to provide relevant information in terms of structures, zones, and trading possibilities to anybody interested in NIO. Remember: Protect your capital, do your own research, and always plan what you want to trade in advance. Thanks for reading!
NYSE:NIO
by ThinkingAntsOk
Stocks Pare Back LossesStocks have recovered much of their losses from the selloff last week. We found support at 4040, over 200 points below highs. The S&P has retraced back to what appears to be a POC at 4188. We appear to be ranging just under this, and will find support from 4144. The Kovach OBV is gradually drifting up but the momentum here is paltry with respect to the selloff. It will take a great deal of momentum to bring us back to highs at 4245. A further selloff could take us back to lows at 4144.
FX:SPX500Long
by quantguy
Stocks Pare LossesStocks have rebounded from lows at 4040 or so, retracing about half of the massive selloff from earlier this week. We are currently testing resistance at 4144. The Kovach OBV is still pretty flat which suggests that this buy back was paltry with respect to the momentum of the selloff. Therefore, we are less likely to break current levels unless we have a significant wave of momentum come through at open, which could take us back to 4178 or 4188. Another selloff could take us back through the vacuum zone to 4073.
FX:SPX500
by quantguy
1
Stocks Continue to Dump!!The S&P has tumbled further to lower levels. We have broken a key level at 4073, and is currently in the middle of a vacuum zone that was created by the huge rally in stocks in April. We do appear to be finding some support at 4045, as suggested by the green triangle in the KRI. If so, this will constitute a new technical level. The next level of support is 4009, which is quite further. The Kovach OBV is extremely bearish, and the Kovach Chande has also dipped, suggesting we are in oversold territory and a short position might be FOMO at this point. However, it may not be a good time right now for a long position either, as we could easily test 4009.
FX:SPX500
by quantguy
Stocks Find Support!!Stocks have sold off for two days in a row. However we appear to have a double bottom at 4122. This was a significant technical level to which we alerted you many times, so hopefully you were prepared. This level might be a great point to add to a long position, and the risk management is pretty clear. Below 4122, we have a vacuum zone to 4073, so it would be advisable to keep a narrow stop loss. From above, 4178 and 4188 will provide resistance. We have a little bit to go before highs at 4245, so it is unrealistic to expect to see this level again today.
FX:SPX500Long
by quantguy
Short Squeeze Breakout Alert: Ambow Educaion (NYSE: $AMBO) 👀Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 15 out of the 34 provinces and autonomous regions within China.
AMEX:AMBOLong
by Bullishcharts
3
Fresh Local High for KO. What's next?Fresh Local High for KO. What's next? -Today, we will speak about KO. Since the bottom of March 2020, the price has been moving on a bullish trend. It's not the most beautiful bullish trend you have ever seen, of course. BUT the sequence of Higher Highs and Higher Lows provides us with a clear idea of the major trend. -Using Trendlines (White lines), we can define the higher and lower boundaries of the bullish trend we observe. These lines are beneficial to establish which are the limits of the ascending situation. In general terms: IF the price is above the Bullish Major Trend, we should keep thinking in long situations. -Yesterday (10/05/2021), the price made a new local high above the previous one at 54.96. We can see that at the current level, we have a significant resistance zone since September 2019 -So, what can we expect here?. The ideal scenario would be to wait for a correction that fits the size of the circle and presents similar proportions in time as the one that we observed before on DEC 19 - JAN 2020 -If that scenario happens, the breakout of that structure would be a great confirmation to look for Bullish setups or situations towards the next resistance zone at 59 - 60. Please consider these two things -1)Waiting for Corrective patterns before trading provides you with a better trigger in terms of safety than trading with a market order. However, the disadvantage is that if the correction you are waiting for does not happen, you miss the movement. -2) The corrective patterns may happen at the edge or above a support resistance zone; it's important to keep in mind that you are looking for a retracement and adapting that idea to the infinite variations the market makes. Thanks for reading!
NYSE:KOLong
by ThinkingAntsOk
Stocks Take a Nosedive!!!We warned you that stocks were at highs yesterday, and would take significant momentum to push higher. Indeed, stocks took nose dive and are finding support just above our technical level of 4144 after slicing through several technical levels. We are likely to see the S&P range at current levels and maintain 4144 to 4178. Further retracement could take us back to 4122. The Kovach OBV has dipped substantially, registering the selloff. We have several technical levels to in our way before we can consider highs again, including 4178, 4188, 4214 and 4228.
FX:SPX500
by quantguy
1
Beautiful Chart on ATVI lets breaks it downThe main aspect we can see on this chart is a huge Cup and Handle Pattern. The idea of this movement is a round bottom. The price reaching the previous ATH and finally making a Corrective movement there (ABC pattern) or the handle. The target of the cup and handle pattern is the distance from the bottom to the previous ATH. Currently, we are observing a new Corrective pattern (ABC) inside the ascending channel and aligned with the target of the cup and handle. The arrows and the green and red lines we are using are the levels to say, "The analysis is active, or the analysis is invalid" We think it will be pretty intuitive for everybody to understand the meaning of them... Final Conclusion: We think there is a new accumulation process right now, and if the price reaches the green line, we can have a continuation movement towards the end of the green arrow. The expected distance of the whole bullish movement is between 125.00 and 128.00 Have a great trading week and remember: PROTECT YOUR CAPITAL!
NASDAQ:ATVILong
by ThinkingAntsOk
2
New Highs for Stocks!!Stocks have made new highs again in the overnight session, finally meeting resistance at 4245, which we have identified as a new technical level. We will see how they react toward today's open. If we see more momentum coming through we could see new highs again, however if not, we could see ranging or a retracement. It is likely that the S&P will feel out the current price territory between 4214 and 4245 before breaking out higher. Our next profit target is 4272. A significant retracement could take us back to 4188. The Kovach OBV has been lagging lately, but has picked up registering this rally. It appears to be rounding off however, which suggests we are due for ranging or a retracement.
FX:SPX500Long
by quantguy
ETH/BTC Mother of bullish formations - towards ATHThe first cup and handle almost reached the measured target and is forming the last part of the bigger rounding bottom. 3-years old falling wedge target in still play. Given how BTC.D dropped, the actual use cases behind ETH, bullish sentiment around it, value locked in DeFi and institutions starting to adopt it we might very possibly see ETH/BTC run to all time highs again. We should face resistance and have proper consolidation between the 0.5 and the 0.382 fib level. Putting things in perspective to USD prices, while BTC tripled the previous ATH, ETH still has room to further explode towards the upside. Keep in mind that the chart is on the weekly timeframe and does not take into account minor price swings. Good luck :)
Long
by MattiaPaccamiccio