How to trade Double Tops to the Short Side using 1 hour barsI always ask myself: What's my favorite chart pattern for finding high probability entries? I look at my stats, I look at my various strategies, and I always find I like one type of trade best: Trend Continuation trades using double tops for shorts and double bottoms for longs.
The strategy is simple: Using 1 hour wickless bars, (I'll show you how in the video), identify a trending stock by seeing where price is clearly up or down, then identify a double top or double bottom occurring along the trend. When you have two confirmed tops or bottoms, get short or long, as the case may be. The patterns really do come in all shapes and sizes, but they are best when they occur along a resistance line, be it VWAP, a 20 EMA, or some other. They also can be confirmed by looking at your RSI chart which will indicate clearly two v bottoms for a long entry or two peaks for a shorty entry. Seeing where on the RSI chart these double patterns are forming is also instructive. Longs should show up on the RSI chart as a pair of v bottoms occuring at the bottom of the upper half of the chart, above the 50% line. Shorts should show up on the RSI chart as a pair of peaks at the top of lower half of the chart, just below the 50% line. Because you're using 1 hour bars to find entries, it naturally stands to reason that your setups will trigger at the top of the hour, when there is typically a burst of volume. If your analysis is correct, that volume burst will push your trade in the proper direction within seconds, so if you like instant gratificatrion like I do, you'll enjoy that aspect of trading this way.
TOPS
j.Hejazi | EURCAD waiting for breakoutThe EURCAD currency pair has formed a triangle pattern with a divergence on the MACD indicator. This pattern also appears to show triple tops with another divergence. These patterns are located at a strong resistance area, as the price is touching the 200-week moving average and testing the key level of 1.46350. To consider a sell signal, the price must break the neckline of the triple tops and triangle.
However, if the price moves up and breaks the moving average, it must also break the 2 yearly resistance trend lines at 1.47313 to be considered a buy signal.
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ETCUSD Potential BottomThis is my 2nd publishment, so hopefully this is helpful.
My tops/bottoms indicator had given a bottom signal a few bars ago for ETCUSD on the 30 minute chart indicating a potential increase may be coming. I don't suspect this is inherently the lowest the price may go, or perhaps it could be? I suppose we'll see.
LTCUSDT compressionA breakout opportunity is forming on LTCUSDT.
The pair is currently consolidating after the recent downtrend that formed several tops and offered multiple selling opportunities. Price movements are increasingly compressed and will eventually break. The same compression is building in the RSI Exhaustion indicator at the bottom.
As of now, the breakout could be either to the upside (trend reversal) or to the downside (trend continuation) so let's just wait and see when the breakout comes.
Remember to do your analysis, be patient and always look for confirmation from the indicators.
Horn Tops & Bottoms Pattern - How To Find and Trade ThemHorn patterns are reversal patterns introduced by Bulkowski in his book "Encyclopedia of Chart Patterns". These reversal patterns are not the most commonly used by traders but have very interesting characteristics.
In this post, we will cover details about these interesting patterns, such as identification rules and measure rules.
1. Origin
Bulkowski discovered horn patterns by studying double tops/bottoms patterns. In his study, he noticed that narrower double bottoms performed better than widely spaced ones, and as such wondered how would perform double bottoms spaced by a single week on a weekly chart.
The usage of the weekly timeframe is based on ease of selection and performance considerations, but horn patterns are also visible on the daily timeframe.
2. Identification
Horn patterns are relatively easy to identify. The identification of both horns' tops/bottoms should be done on the weekly timeframe.
2.1 Horn Tops
The horn tops pattern is characterized by two price highs situated at a similar level, both separated by a candle whose price high is lower than the two adjacent. These can occur in an uptrend but also on the top of downtrend retracements.
In an uptrend, this pattern should be clearly visible with prior highest highs inferior to the pattern high.
2.2 Horn Bottoms
The horn bottoms, also referred to as "inverted horns" pattern is characterized by two price lows situated at a similar level, both separated by a candle whose price low is higher than the two adjacent. These can occur in a downtrend but also on the bottom of uptrend retracements.
In a downtrend this pattern should be clearly visible with prior lowest lows superior to the pattern low.
3. Trading
Because of the usage of the weekly timeframe, we can see that trading horn patterns can be more suited to longer term investors.
Two approaches can be used when trading horn patterns, trading on identification, that is when the pattern is clearly identified, or trading on confirmation, the latter is the one covered by Bulkowski.
A horn top pattern is confirmed when the price breaks below the minimum of the pattern formation, while a horn bottom pattern is confirmed when the price breaks above the maximum of the pattern formation.
3.1 Measure Rule
The measure rule for horn patterns allows traders to set stop losses and take profit according to the pattern.
For horn bottoms patterns the target price is found by adding the formation height (maximum - minimum) to the formation maximum.
For horn top patterns the target price is found by subtracting the formation height (maximum - minimum) to the formation minimum.
$FB Top/BottomUsing KioseffTrading's Tops/Bottoms indicator and it looks like it is setting up nicely with a 78.57% correct ratio. The data tables there show the % correct, which backs the data tested & provided. Due to bad earnings back in Feb. we saw a huge sell off and a bouncing range of 169-237 with an average of 217.
Does Chainlink Have enough Momentum to Push Through this Wave?Projection of Links Wave Movent and its consistent significantl loss of momentum after every wave. Only at the beginning did it throttle through. Is this the next major push?. Possible collapse after $34 yet again. But looks like we may have the cloud in our favor. We'll see.
Has Bitcoin made it to the top yet??Hi!
In this analysis, I present the arguments to show what many renowned traders already claim:
Bitcoin is only at the beginning of an uptrend.
Why do we have a strong uptrend?
In the red lines of the Bitcoin graph, we have the historical tops.
Below, I configured the CGO (Center of Gravity Oscillator) with a period of 200 days, using a Fibonnaci retraction that goes from 100 to -0.382.
In this indicator, we can see that we still have a lot of room to rise.
Why haven't we made it to the top yet?
We have a very interesting indicator developed by David Puell called "The Puell Multiple".
Basically in a nutshell, it identifies when miners are taking an abrupt and very unusual profit taking.
When we have a peak on this indicator above the red dotted line, we clearly have a top.
In the marked rectangles we can consider a possible exit point.
In the fall we had a few months ago, we can see that it didn't happen, so we still have a new top to discover.
Extra Long Cycle with a Triple Top? Log chart for total market cap showing how an extra long cycle could play out. Careful hodling when prices are along the top resistance levels. Unless a breakout and confirmation happens, remember it's nice to trade for some stablecoins when you're in lots of profits. Personally, I think the old "boom and bust" rhythm will begin to mellow out and cycles won't be so extreme anymore, but still plenty of opportunity to do well.
Amd triple topper-----> Big stock momentThis next few week will be crucial on Determine the
AMD trend!
If the top will reject amd, a big down movement touch trendline.
If amd break the Supressesion resistance, a VERY VERY BIG movement upside.
did i say big? yes.
Be on the entry of leap if AMD can sustain and hold 100~105~110, etc!
Very potential Power-play If amd can pump.
Can also be a Very big dumper. AMD market makers love to kill noobies. Fun trading!
/////Trend and Wave anaylist
(i have no idea what these mean, just memeing)
Tony Vays, and no double tops, where are we now?I don't know what Tony Vays exactly meant in his last video when explaining that BTC rarely, if ever, double tops. Does he mean a candle that closes at the top?
In any case we have clear indications that a double top can happen from another perspective. Namely wick related tops. We had it at 20k, and pretty much as 7k. Look for yourself. And look at the volatility we encounter during this period. Compa
Compare it to the volatility now... Seems like we have a way to go, things aren't nearly as heated as before. Or was it as heating during the 2nd wick top at 20k?
Any way, interested in this indicator? Let me know. I'll hook you up. Thanks kitty.
Stock Play: TOPSAmazing potential with this one... easily set up levels (white lines) above with a red cloud to work its way through on the right. What are the common factors in most of my charts? Volume accumulation and one or two support levels (purple lines) beneath showing a bottom has been formed. See that here? Then join me!! Good luck if you play.
TOPS rally underwaychop index and ADX line point to a much higher price from here. trade patiently. $SHIP might be worth a try as well.
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.
TOPS at 100 EMA Lets see how it would react to this level of resistance of 100 EMA. Also monthly R1 is where it is.
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.
TOPS 3 Day chart enters Ichimoku cloud 1st time since 2019The Ichi cloud seems to be thinning as well which could mean that the resistance is getting weaker.
Looking for this one to break above the Ichi cloud soon in the next couple of weeks.
OBV is super strong. CMF is still a little weak but is approaching the 0 line.
BB breakout of the Dev2 upper bound with BB Bandwidth creeping up from low. Price is touching the Dev 3 upper line.
Monthly Pivot R1 $2.80 R2 at $3.6. Pivot monthly is at $2.00.
Stop loss at 50% retrace of $2.4 currently.
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.
TOPS looks attractive technicallyweekly chart strong upward momentum with potential weekly Pin bar.
short interest is huge on this worst NASDAQ stock in 2020.
SETTLEMENT DATE SHORT INTEREST AVG. DAILY SHARE VOLUME DAYS TO COVER
01/15/2021 2,128,199 5,444,345 1
12/31/2020 2,569,607 1,925,017 1.334849
12/15/2020 2,086,305 6,122,246 1
11/30/2020 1,676,599 2,414,442
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.
USD/JPY BEARISH D1-Bearish Signs
-Well consolidated channel, with respectives tops and bottoms as seen on the chart
-On the last Top we could see a well formed candle pattern BEARISH ENGULFING
- It's possible to see that the pair is on fight zone, where is possible to watch a lot of new support and resistance zones , so, i hope the pair to go down, but it's possible that buyers would give some fight signs.