GARTLEY Harmonic Pattern: How does it work?!GARTLEY Harmonic Pattern: How does it work?!
The "Gartley", as its name suggests, was introduced by Henry Mackinley Gartley.
All other harmonic patterns are modifications of the Gartley.
Its construction consists of 5 waves:
XA: This could be any violent movement on the chart and there are no specific requirements for this movement in order to be a Gartley start
AB: This is opposite to the XA movement and it should be about 61.8% of the XA movement.
BC: This price movement should be opposite to the AB movement and it should be 38.2% or 88.6% of the AB movement.
CD: The last price movement is opposite to BC and it should be 127.2% (extension) of CD if BC is 38.2% of BC. If BC is 88.6% of BC, then CD should be 161.8% (extension) of BC.
AD: The overall price movement between A and D should be 78.6% of XA
How to use it
Point D is where you come in, man! It's your entry signal.
-If it's an M pattern, you buy.
-If it's a W, you sell2.
Where to put your STOP LOSS??
-Below or "X" if you are a BUYER.
-Above "X" if you are a SELLER.
These percentages are based on the famous Fibonacci ratios, as mysterious as the pyramids of Egypt!
Ultimately, the Gartley pattern is like a good Cuban cigar: it requires patience and experience to be appreciated at its true value. But once you master it, it can become a powerful tool in your trading arsenal, as effective as a punch from Rocky Balboa!
Thewoozacademy
The Symmetrical Triangle: Real Success Rates + Breakout.The Symmetrical Triangle: Real Success Rates + Breakout.
The symmetrical triangle is an important chart pattern in technical analysis, deserving special attention from professional traders.
This formation is characterized by a convergence of prices between two trendlines, one descending and the other ascending, creating a consolidation zone where indecision between buyers and sellers is palpable.
Statistical Analysis
Empirical data reveals that the success rate of the symmetrical triangle for a trend continuation is approximately 54%. This percentage, although higher than 50%, underlines the importance of a cautious approach and rigorous risk management in using this pattern.
Breakout Point
The breakout of the symmetrical triangle usually occurs when the price has traveled approximately 75% of the distance to the apex. This point is crucial for traders, as it often represents the moment when volatility increases and a new trend can be established.
Risks and False Exits
It is essential to note that the symmetrical triangle has a relatively high rate of false exits. Statistics indicate that approximately 13% of cases in a bear market can result in a false exit to the bottom. This phenomenon underlines the need for additional confirmation before entering a position.
Strategy of use
To effectively exploit the symmetrical triangle, professional traders must:
-Identify the formation accurately.
-Wait for the breakout near the point of convergence of the trendlines.
-Confirm the breakout with other technical indicators or an increase in volume.
-Put in place strict risk management to protect against false exits.
In conclusion, the symmetrical triangle, although being a valuable tool in the trader's arsenal, requires a methodical approach and a thorough understanding of its characteristics to be used effectively in a trading strategy.
Actual Success Rates of Ascending and Descending TrianglesActual Success Rates of Ascending and Descending Triangles
Here is an analysis of the actual success rates of ascending and descending triangles in trading, based on the information provided:
Success Rates
Ascending and descending triangles generally have fairly high success rates as continuation patterns:
-The ascending triangle has a success rate of approximately 72.77%.
-The descending triangle has a slightly higher success rate of 72.93%.
These numbers come from a study that tested over 200,000 price patterns over a 10-year period.
Factors Influencing Success
Several factors can influence the success rate of these patterns:
-The trader's ability to execute the strategy correctly
-Market conditions at the time the triangle formed
-Market liquidity
-Overall market sentiment
Important Points to Consider
-Triangles are considered reliable continuation patterns, especially in trending markets.
-The ascending triangle in an uptrend is statistically more reliable than the descending triangle.
-To validate the pattern, the price must touch at least twice each of the upper and lower lines.
-An increase in volume during the breakout is an important confirmation sign.
Strategies to improve the chances of success
-Wait for the triangle to fully form before entering a position1.
-Confirm the breakout with a close above/below the resistance/support level.
-Use additional technical indicators to confirm the signal.
-Pay attention to the volume, which should increase during the breakout.
Conclusion
Although ascending and descending triangles have relatively high success rates, it is important to use them in conjunction with other technical analysis tools and to take into account the overall market context to maximize the chances of success.
The “Fan Principle” is a powerful techniqueThe “Fan Principle” is a powerful technique in trading, using trendlines to predict price movements.
Highlights
📈 Powerful Technique: The Fan Principle is formidable in technical analysis.
📉 Identifying Points: Drawing trendlines from three key points.
🔴 Trading Signals: Buy or sell signals can be identified depending on the pattern.
📊 Practical Examples: Analyzing price movements on charts to illustrate the technique.
💰 Profit Opportunities: Strategies can result in significant gains, up to 22%.
🛑 Risk Management: Importance of placing stop-losses to protect investments.
🔍 Additional Resources: Detailed information and charts will be shared to deepen understanding.
Key Insights
📈 Technique Effectiveness: The Fan Principle helps identify clear trends using reference points, making the strategy both simple and effective.
📉 Importance of Confirmation: Validating trendlines with a third point builds confidence in trading signals, increasing the chances of success.
🔴 Warning Signals: Sell or buy signals, as shown in the video, can lead to strategic decisions based on historical analysis.
📊 Visual Analysis: Visualizing data on charts helps understand market movements, which is essential for technical analysis.
💰 Profit Potential: Trades based on the Fan Principle can provide significant profit opportunities, highlighting its effectiveness.
🛑 Protection Strategies: Placing stop-losses above resistance points is crucial to limit losses in the event of adverse market movements.
🔍 Access to resources: The information shared in the description and on other platforms offers ways to deepen the understanding of the technique and improve trading skills.
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The fan principle in trading is a strategy that consists of opening several positions on the same asset at different price levels. Here are the main aspects of this approach:
How it works
The idea is to open several positions (or "lots") on the same financial asset at different price levels, thus forming a "fan" of positions.
These positions are opened at points considered as potential market reversals.
The objective is to let these positions unfold like a fan or to close them gradually according to the evolution of the market.
Advantages
Risk diversification: By entering the market at different levels, the trader reduces the impact of a single bad entry.
Movement capture: This approach allows to take advantage of different phases of a price movement.
Flexibility: The trader can adjust his strategy by closing some positions while keeping others open.
Complementary Tools
The fan principle can be combined with other technical analysis tools to improve its effectiveness:
Fibonacci Fan: This tool automatically draws trendlines at key levels (38.2%, 50%, 61.8%) that can serve as entry points for fan positions.
Gann Angles: These lines, drawn at different angles (82.5°, 75°, 71.25°, etc.), can also help identify potential levels to open positions.
RSI (Relative Strength Index): Some traders combine the fan principle with the RSI to confirm entry points.
Important Considerations
This strategy requires good risk management, as it involves opening multiple positions.
It is crucial to set stop-loss and take-profit levels for each position in the range.
Using this approach requires a thorough understanding of the market and significant trading experience.
NVIDIA: Bearish: Possible Head and Shoulders: Warning!NVIDIA: Bearish: Possible Head and Shoulders: Warning!
Hello everyone The Wolf of Zurich has detected a possible "head and shoulder" on Nvidia, which would bring the price down to around $42.
I have also drawn a trend line that you absolutely must watch!
The level to watch is around $98-98
Here, watch your Fibonacci levels as well as your exponential mobile means
Have a nice day everyone
Some information to know about Nvidia:
Nvidia, the world leader in graphics chips and AI, is enjoying a flourishing situation despite a recent drop in its stock price.
Here is a summary of its current situation:
-Dominant position in the AI market
Nvidia occupies a quasi-monopolistic position in the field of chips for artificial intelligence. Its GPUs, especially the H100 series, are essential for the development of cutting-edge AI systems and are selling at high prices around the world.
-Stock market performance
Despite a recent 9.53% drop in its share price, Nvidia has posted an impressive 120% increase since the beginning of the year and nearly 400% over 3 years. This one-off drop does not seem to worry analysts, who still see significant growth potential.
-Technological innovations
Nvidia recently presented its new Blackwell GPU architecture, with the B200 and GB200 processors. These chips promise performance multiplied by 5 compared to the previous generation in the field of AI. The company also reassured investors by announcing that it had resolved the production problems initially encountered.
-Future Outlook
With its dominance in AI training chips and its comprehensive software ecosystem, Nvidia appears well positioned for continued growth. The company continues to innovate and strengthen its position in the AI market, which suggests a positive outlook for the future.
LVMH: Bullish: Butterfly detected.LVMH: Bullish: Butterfly detected.
The price could go down to the PRZ zone indicated on the right chart: 512 to start, then 388 if the Double top plays its role.
This will therefore be a very interesting entry point for investors.
Below: Some information about LVMH.
LVMH (Louis Vuitton Moët Hennessy) is today the world leader in luxury and one of the largest French companies. Here’s a look at where LVMH stands today:
Recent Financial Performance
LVMH recently announced its third-quarter 2023 results, which missed analysts’ expectations
This announcement caused a significant drop in the stock price, which is down more than 20% from its record highs
Market Position
Despite these mixed results, LVMH remains the world’s largest luxury company, with a portfolio of iconic brands including Louis Vuitton, Dior, Givenchy, Kenzo, Moët & Chandon and many others
Structure and Values
LVMH is a family-owned group founded in 1987. Its primary mission is to ensure the long-term development of each of its houses, while preserving their identity and autonomy. The group emphasizes creativity, innovation and excellence in all its products and services. Corporate Strategy
LVMH's strategy is based on the vertical integration of its value chain, from raw material sourcing to selective distribution. This approach aims to ensure the excellence and sustainability of its products.
Social and Environmental Responsibility
LVMH is increasingly committed to ethical, social and environmental initiatives. The group places emphasis on adopting and promoting honest behavior in all its actions and relationships.
Future Outlook
Despite recent challenges, LVMH remains a solid company with long-term growth potential. , like any company in the luxury sector, it is sensitive to global economic fluctuations and changes in consumer habits.
BITCOIN: Bearish – Head and Shoulders + Ascending WedgeBITCOIN: Bearish – Head and Shoulders + Ascending Wedge
Two classic Chartist figures were detected by the Wolf of Zurich:
1- An “ascending wedge” which would bring the price down towards $62,632.
2- A “Head and Shoulders” which would subsequently bring the price down to around $52,080.
The EMA.50 and 200 also remain potential targets
caution.
GOLD: Bullish - FLAG detected + Breakout of the range.GOLD: Bullish - FLAG detected + Breakout of the range.
1- A "Head Shoulders" has been detected and we did a perfect Take profit ( TP1) at 2 395$.
2- When we break a range the Take profit should be the Height of the range.
Then the TP2 is expected around 2 518$.
3- Plus we can also consider that the range is like a flag and then the TP3 ( green arrow) is expevted around 3 030$
The red horizontals are retracements regarding ICHIMOKU levels .
However a retracement Fibonacci gives a target lower around 2 100$.
Be careful
ETH: Bearish – BAT Detected + ROC DivergenceETH: Bearish – BAT Detected + ROC Divergence
The Wolf of Zurich detected a bearish “BAT” on Ethereum
We could therefore go up to around 3 270 3560
Then go back down to point C around the polarity zone of 1800-2035
The 50 and 200 exponential moving averages are still potential targets
In addition you will notice a divergence in the ROC between the price which is rising and the ROC which is flat
The ROC (Rate of change) gives you the speed of the asset's momentum.
Stay safe
BTC : 3 wedges to Monitor + Double TopBTC : 3 wedges to Monitor + Double Top
On the rise :
1 Falling wedge has been detected , and it could bring the price to 72 928 $
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On the decline :
We can see on my graph a "Double top" + 2 Falling wedges
Regarding the double top, the bitcoin can reach 48 000 $ minimum!
About the 2 wedges :
The potential targets can reach 56 425 which is a strong support to break
be safe
TESLA : Bullish - Butterfly-Wolfe Wave-Head Shoulders inverseTESLA : Bullish - Butterfly-Wolfe Wave-Head Shoulders inverse
A butterly was detected since several weeks
We have also a Head shoulders inverse
and a Wolf Wave Bullish
then the market can reach 207 and the 233 $
To monitor the EMA.50 and EMA.200 and ICHIMOKU "kijun"
NB : Divergences ROC and RSI , bullish
NATURAL GAS: Bullish- SHARK + WOLFE WAVENATURAL GAS: Bullish- SHARK + WOLFE WAVE
So, regarding gas the Wolf of Zurich detected a "Shark" and a "Wolf Wave" in Daily.
The market could rise violently.
There is a strong divergence on the ROC
Attention!!
The 50 and 200 exponential moving averages are potential targets
There
stay careful
US OIL WTI : Bullish - 2 Falling wedges + Head&ShouldersUS OIL WTI : Bullish - 2 Falling wedges + Head&Shoulders
Wti crude oil can rise higher because of current geopolitical tensions. OPEC countries have reduced their daily production of barrels of oil.
Technically:
The wolf of Zurich has detected 2 "Falling wedges" and an " inverse head & shoulders" .
These chartist patterns could raise the price of WTI oil around 96$-98$ and even up to 106$ ;
However a divergence with their ROC ( Rate fo Change ) has been detected and we could go back down to the levels indicated on the graph 81$- 79$- 73$ ,and then 67$ dollars.
To monitor EMA.50 and EMA.200 on different timesframes
be careful !
have a good day to all
TSM : Bullish - "falling Wedge" and a "BAT" potential.TSMC detection of a "falling Wedge" and a "BAT" potential.
The price could rise and reach the gap upwards towards 147.25 then higher at 156.11
On the downside the market could go down to 135.92 then to 128.76 and finally to 125.27
Additionally, the RSI is divergent with the stock price §
be attentive and monitor the Ichimoku levels
US10Y: Bullish- Ascending triangle US10Y: Bullish- Ascending triangle
Ascending triangle detected on US10Y
The exponential moving averages remain possible targets
Monitor Ichimoku levels
The ROC ( Rate of Change) is in a positif territory.
Bonds can rise to a double top
Stay careful
Good trades to all
AXA: Bearish -DEEP CRAB detected.AXA: Lower-DEEP CRAB detected.
(1)
In Weekly:
A DEEP CRAB -Bearish was detected on AXA and was confirmed. Following this bearish harmonic pattern, a new BEARISH trend can potentially begin.
(2)
ROC and RSI: Note the Bearish divergence building up like dark clouds announcing a potential reversal on the horizon.
(3)
Detection of a SELL signal using ROC and RSI indicators;
Following this, I expect the market to move down to the 33.63 level, then 30.55, and finally towards the 29.49 and 25.84 levels, depending on the 50 and 200 EMAs.
BTC: Bearish - GARTLEY detected in WeeklyBTC: Bearish - GARTLEY detected in Weekly
The Wolf of Zurich has detected a "GARTLEY" and more precisely a "Harold McKinley GARLEY"!
Bitcoin could rise to $49,625 then fall back to $36,600 at the “nearest” level
and at the “lowest” around $18,900
PRZ zone lies between $19,000 and $36,300
The 50 exponential moving average "in Weekly" is around $33,900
The 200 exponential moving average is around $36,815 daily
There is therefore a high probability of going down to $36,800
Then Bitcoin could rebound after the “Halving” to $100,000 in the long term!
Happy trading to all
be careful
SOLANA: Bearish- 2 GARTLEY detectedSOLANA: Bearish- 2 GARTLEY detected
Hello everyone
Today on Solana the wolf of Zurich detected 2 GARTLEY: the first is bearish (the red) hence the current decline!
The 2nd GARTLEY is bullish so we could look for the exponential moving average 200 around 67.33
The PRZ zone is located from 68.50
Stop Loss below “X”, depending on your currency management
EUR/USD: Bullish - BAT + Cup with handleEUR/USD: Bullish - BAT + Cup with handle
According to the harmonic figures (D/W):
Bearish BAT detected!
the price could go down to 1.07033 / 1.05263 / 1.01124
On the Chartist level:
We are Bullish because in fact, the Wolf of Zurich has detected a cup with a handle or a cup of coffee.
The price could break the polarity zone around 1.12 and reach 1.25649.
The ROC is in divergence territory! And if it enters positive territory, the price can explode higher.
Monitor exponential moving means 50 and 200 in Monthly!!
Indeed, the 200 exponential moving average is around €1.16465.
According to ICHIMOKU (Weeekly):
A return to 1.05153 is possible
Be careful.
Happy trading to all
Crude Oil Wti: Bullish -GARTLEY possibleCrude Oil Wti: Bullish -GARTLEY possible
This possible Gartley would raise the price of oil to $85-93-109-116 as shown on my chart!
On the downside - we could go down to 77-70 -67 -61$
To monitor :
-exponential moving averages
-as well as the Ichimoku and Fibonacci levels
Warning: We are currently at 27.2 Fibonacci, and we could go back to 38.2 then 50% Fibonacci
Add to that the geopolitical tensions with Russia, France and Europe...
be careful because the Roc is in positive territory in Weekly
good trade everyone
LVMH: Bearish according ICHIMOKU 714 is possibleLVMH is on a polarity zone
the price could go down to 714
confirmation with “Tenkan” (Weekly) and “Kijun” (Daily) thanks to ICHIMOKU
Then the market could go down to €685 (Doji), then rebound and go back up to find the gaps above
or 2nd scenario:
the market could rise and seek to increase the gap of 854
and complete the harmonic figure “BAT”
and go back down to the 714
an options strategy "purchase of PUT" is possible slightly on this position or wait for the gap of 854
BOEING: Bearish - Possible SHARK detectedBOEING: Bearish - Possible SHARK detected
Boeing shares risk falling following an accident which left 50 people injured Monday in Australia during a flight from Sydney to Auckland, after a technical problem on a Boeing 787.
Technically, a SHARK is possible and the bullish channel breakout has been made.
And a PRZ around $140 may be possible.
monitor the 50 and 200 Moving Averages.
According to ICHIMOKU, a return to $221 is possible