Get started

W-patterns

Trend Continuation Patterns & Reversal Patterns🚀💣Hi, friends! Let's keep learning?😉 Today we are talking about <> and <> of Technical Analysis 😊 - this girls try to tell You more details😉 Hope, It would be helpful for You♥️ 🐂Bull flag🐂 The principle of bullish flag trading, like all technical analysis figures, is the same - a breakout of the control point is required. As soon as a breakdown has occurred, you can immediately post the target. The target in a bull flag will be the height of the pole. There is one more feature of this figure - the canvas of the flag should be tilted against the main trend. 🐻Bear flag🐻 For the most profitable entry, it is better to enter into a deal with a pending order. As soon as the trade is entered, the take profit is placed at the height of the pole from the breakout point of the pattern. 🐂Bullish pennant🐂 The pattern trading rules are identical to the bull flag trading rules. 🐻Bearish pennant🐻 The trading rules are the same as for the bear flag . 💥Head & Shoulders Pattern💥 After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume . Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point. 💥Inverted Head & Shoulders Pattern💥 An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones. It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful! 💥 Double Bottom Pattern 💥 After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 💥Double Top Pattern 💥 A double top is similar to a double bottom . The only difference is that this pattern is reversed and occurs on uptrends. The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution. 💥Diamond💥 We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point. 💥Cup & Handle💥 Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure. Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
10
Documenting Your Trades (For Fun and Profit)How do you document your trades? In a spreadsheet? In a trading journal? Directly on the chart? How much is too much? How little is not enough? I say you need to document enough to tell the story properly. Every trade tells a story. As with all good stories you have a protagonist and an antagonist. Good guys and bad guys. The hero and the villain. And then, there's the journey. In the markets you are the hero and the market is the villain. One way I make trading "fun" and what helps me "tell the story of the trade" is to "Trade Like a Pirate" and use the vocabulary of Jack Sparrow. I have already written on this topic when it comes to analyzing profit targets (seizing treasure and plunder) but let's look at how we learn what we did on a trade by trade basis. When you do an after-the-trade analysis (what I call a postmortem) you should be able to see what you did right, what you could have done better, but most importantly, what you may have done wrong; not to beat yourself up, but to make sure that you *never* make that mistake or repeat that behavior again. (Fool me once, shame on you... fool me twice, shame on me!) For instance, I once lost three trades in a row and asked "How the heck did that happen?" and later when I looked at the actual trade screenshots I realized that both my trading timeframe and trend timeframe was the same! Somehow instead of having my charts on the 60-15 minute charts they were *both* 15 and I realized if I had my chart timeframes right I would have never entered those particular trades, saving me from experiencing those losing positions. Thanks to those trades, though, and thanks to my post-mortem analysis, the first item on my "pre-flight checklist" is now "Verify Trade Timeframes." Thanks to journaling and the postmortem process I'm *never* going to make *that* mistake again. But what about the *psychology* of the trade? *Why* did you enter it, *what* were you thinking once you were in it, *why* did you adjust your stop, *why* did you choose your target, *what* might you have done out of fear that got you out of the trade early or prevented you from realizing as much profit as you could have? Journaling your trade, or documenting the trade *properly* will help you with that. In the example above you can see a recent trade that presented itself to me and my pirate "Crew" in the Gasoline Futures market. I talk about the "weather conditions" before getting into the trade (the wind and the tide), other environmental factors like the "shark feeding frenzy area" helping me decide where I will target my profit (there be treasure *here*), what was going on when the trade actually entered, and finally, managing the trade to my target. In addition, during the postmortem I found an opportunity where if I had used a trailing stop, I could have gotten an additional 42% profit, or 'treasure'. As I mentioned in my Backtesting series, one of the reasons you backtest is that through repetition, you can often find patterns in your system that will prompt you to tweak it to either *improve* results or *eliminate* inefficiencies. In this same manner, through repetition in documenting your trades you may very well find a pattern of behavior that is holding you back from your full potential. For example, In the trade above, after securing 3R, (the minimum I am willing to take in a trade), if I followed price using my trailing stop strategy instead of a target, I found that I could have made an additional 2-3R profit. What if after documenting 20, 30, 40+ trades I find a similar pattern, that I am often "leaving money on the table"? I can then test several exit strategies to see which ones would give me the biggest bang for my buck and increase my R per trade. The other big benefit of having your trade journal "tell a story" rather than "state facts" is you begin to *personify* the market and see it as someone who exhibits certain behavior patterns, and that is what the markets present to us every day: PATTERNS. And if you can determine someone's patterns, you can predict their behavior. If I know that whenever my wife is browsing through a jewelry catalog and consistently goes "ooh" or "aah" over earrings with blue stones in them, I can guess with a high degree of accuracy that if I buy her a set of sapphire earrings she (and consequently*I*) will be a happy person. Likewise, if I can predict with a high degree what "Mister Market" is going to do based on certain patterns, I can keep setting sail, with confidence, day after day and see gains in my trading account (which makes me, my crew, and most importantly the missus, HAPPY! (Because when momma's happy, everybody's happy!). Trade well! (And Journal Well!) PS: Let me know how your journaling journey goes in the comments! I'd love to know how it "upped your trading game!" You can only improve what you analyze! -Anthony
NYMEX:RBF2021Education
by ocaptain
8
How to use Corrective Structures to develop a SetupGreat day to learn something, today; we will understand how to use corrective structures to develop a setup on any chart. a) There are 3 types of Corrective Structures, Zig-Zag (first example), Flat (Second Example), Triangles (third example). Use them as an archetype to spot them on a chart. b) Now that you understand the types of corrective structures is time to look at one on the chart ( you can see a Flag Pattern on the real chart) c) Should I trade all the corrective structures I see? NO, YOU DONT! You need Context. Your corrective structure must be well-positioned on the chart, it can be a Trendline, or it can be a Support. Never trade isolated patterns. d) Then you need a clear path in the direction you are expecting. In this case, we are at All-time Highs, so we don't have any Resistance e) How can I calculate my target? Use Fibonacci Extensions. Draw it from the base of the impulse towards its top (where the corrective structure starts) and then take it back to the impulse's bottom. Pay attention to 2 levels only 1.27 for Break Even, and 1.618 for Target f) Only take setups with a risk-reward ratio higher than 1.5 Have a Great Day!!!
NYSE:CRMEducation
by ThinkingAntsOk
28
How PATTERNS help us MAKE MONEY| EducationWe have many people who are just learning to trade, so I want to help you with this. For professionals - Reminder. THE IMPORTANCE OF PATTERNS 1) How to use Forex Patterns Patterns are often found on the PICTURE chart, which are formed due to price movements. They are not easy for beginners to notice, but for professionals they are GOOD helpers in predicting prices. The patterns can be roughly divided into "Bullish" and "BEARS". "BULLISH" patterns are those patterns that tell us about the likely future price growth and allow us to determine the position to open a buy trade. Rising "Triangle" Trend continuation pattern. It is formed by a rising support line and a horizontal resistance line. It is worth opening a deal with this figure after the price breaks through the resistance and rolls back, fixing on the line. Inverted "Head and Shoulders" It is formed at the local lows of the chart during a downtrend. After the figure is fully formed, the price growth can be expected. The minimum amount of growth is determined by the height of the figure: the line from its base - "neck" - to the central top. Double bottom The pattern is very similar to the one described above. It is also a figure that changes the direction of the trend. This pattern predicts subsequent price increases. Minimum expected height: figure height. The ideal buy point is when the bottom line is broken. Those who do not want to take risks can wait for the price to fix on this line. Flag The entry point and trend direction are important for this pattern. In general, this pattern is similar to a channel, but its complete formation can be said only after the trend line is broken. "Bullish" Flag is formed in the course of breaking the uptrend line - where you should look for a purchase - and as a result continues it. Pennant Also called Symmetrical Triangle. Within this figure, the price movement "fades" - the oscillation frequency decreases. At the same time, the pattern is preceded by a strong price movement - in the “bullish” variant - growth. After the complete formation of the figure, the growth continues. Wedge The pattern forms at the highs of the uptrend and continues it. The boundaries are the support and resistance lines. The moment when the price breaks the resistance line can serve as a signal to open a trade. The amount of mining in this case is determined by the "height" of the base of the figure. “BEARS” patterns are patterns that precede a price drop and indicate the possibility of opening a sell trade. Descending "Triangle" Such a triangle is formed by a descending resistance line and a horizontal - support. "Getting" into this figure, the price as a result changes the trend from upward to downward. Selling in this case is worth waiting for the price to fall behind the support line. Head and shoulders It is formed at the local highs of the chart when the price moves in an uptrend. After complete formation, the price can be expected to fall by the size of the pattern height. In this case, it is better to sell immediately after breaking through the base line or after fixing the price on the line. Double top As in the case of the previous example, this pattern indicates a probable change in the downtrend and opens up an opportunity to open a sell trade. For this it is worth watching when the price reaches the bottom line. After that, the price is expected to fall at least by the size of the pattern height. Flag In case of formation of the “Bearish” flag, the price is in a downtrend. We can say that it falls into a channel, which can be perceived as a correction to a fall. Then the price drops below the support line - which is the entry point for selling. Pennant As in the “bullish” variant in an uptrend, the Pennant is characterized by the presence of a “shaft” - a strong impulse. In this case, the price has fallen. After which the trading volumes decrease and the price fluctuations become less. The complete formation of the pattern can be considered completed after the price breaks the resistance line and continues the downtrend. Wedge The “bearish” wedge literally reflects its “bullish” variant - it forms at the highs of the chart in a downtrend. The deal is opened when the price breaks the support line. We talked about the BASIC patterns in the Forex market. But, of course, not all of the existing ones are listed here. It is important to understand that patterns are not 100% guaranteed to rise or fall in price. There are many non-standard options for forming patterns and reading the chart. However, knowledge of the patterns can help in the technical analysis of FOREX charts. What patterns would you like to know about? Write your suggestions in the comments, and I will take your opinion into account when I prepare the next article.
Education
by Lingrid
43