Daily Wisdom 16 - Track what mattersDaily behaviors leads to results. Too many focus on the results while lacking daily behaviors. No wonder they fail.
W-patterns
Daily Wisdom 13 - Such is the marketO Captain! my Captain! our fearful trip is done,
The ship has weather’d every rack, the prize we sought is won,
The port is near, the bells I hear, the people all exulting,
While follow eyes the steady keel, the vessel grim and daring;
But O heart! heart! heart!
O the bleeding drops of red,
Where on the deck my Captain lies,
Fallen cold and dead.
My Go To Setups/Entries in TradingHi everyone:
Many traders have asked me to give a more in depth look into what a typical setup that I would be looking for, what are some possible entries that I will take.
So I figure I will make an educational video and analysis breakdown on a few trades that fits my trading plan, risk management, and trading strategies/style.
I will go over 3 setups/entries that I usually look for in the market. I will explain what I want to see from price action and structures before considering a possible entry.
Entry #1: Double Top/Bottom
-potential double top/bottom on the higher time frame
-corrective structures forming to push price near the area
-enter the breakout or reversal
Entry #2: Continuation Correction
-break of the higher time frame continuation correction structure
-price formed lower time frame corrections
-enter the reversal, breakout, or correction after breakout
Entry #3: Top/Bottom of structure
-price is at the top/bottom of the higher time frame structure
-price form some sort of correctional structures within the larger structure
-enter the breakout, or correction after breakout
As always, feel free to ask me questions and comments.
Thank you
<<Reversal Patterns of Technical Analysis>> Hello, my lovely and so clever friends! Today we are talking about <> 🧡
💥 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🚀💣
My previous work for You 💋
How to identify valid, high probability price action structuresHello everyone:
In this educational video, I will go over how to identify valid, high probability price action structures/patterns in any market.
I will go through price action structures/patterns from a multi-time frame analysis point of view, and how using a top down approach will help you to understand how to capitalize on higher time frame price action structures and its impulsive moves.
Understand that, within a higher time frame bullish impulsive move, there will be many lower time frame corrections and impulses to bring up the overall price. That is how the market moves, just in different time frames. So the more structures and patterns we identify within the higher time frame price action and structures, the higher probability the entry setup would be.
The key from this lesson is to understand that structures and patterns can and will appear everywhere in the market, in any time frames. However, not all of them will play out the way they should. So how to “filter” out lower probabilities structures to enter, and how to identify higher probabilities structures for entry.
Thank you
Feel free to ask me questions and comments.
Dealing with impatience6.1.20 Dealing with Impulse/impatience; gold silver oil ES Dow NewYork Russel 2-618 reversal patterns ( but with bullish price action )
Price patterns in relation to intraday chartsIntraday data is based on time frames from the 4 hours and below. For these time frames, the short-term trend in the daily charts will be seen as the long-term trend in the intraday time frames.
For those who are keen to trade intraday time frames, they need to know that patterns on these time frames or charts have three principal differences from their long-term counterparts.
1. Their effect is of much shorter duration.
2. Price trends in these time frames or charts are much more influenced by instant reaction to news events than is their longer-term counterparts. Therefore, decisions are not well thought-out when trading these extremely short-term charts but they develop as emotional, knee-jerk reactions.
3. Intraday price action can be easily manipulated. Therefore, their price data are much more erratic and generally less reliable than those that appear in longer-term time frames.
These are the reasons why I have choose not to trade the intraday charts. When I first started out in trading, I tried out the intraday charts, especially the 5 minutes and 15 minutes time frames, but the emotional cost of reacting to every split-second movement of price data was high for me. That does not mean you cannot do it. You just need to understand the costs involved in trading intraday charts.
The chart below, of EURUSD, is an illustrative 5 minutes chart of how volatility could suddenly change on the whim of emotions due to news. This is based on the 169th Non-Farm payroll (NFP) data which were released for the USA on 8th May, 2020.
Interaction of trendsIt is interesting to study trends and how they interact because the price level of any security is influenced simultaneously by different trends.
Hence, why we need to note some application of trend classifications as it applies to trend interactions.
1. When we see any specific price pattern, our first question should be: Which type of trend is being reversed? If it is a short-term trend that is being reversed, then we would not be expecting much price movement when compared to an intermediate or primary trend being reversed.
2. Since intermediate and primary trends dominate price action, traders who deal with short-term trends should pay attention to these trends. They can help them in making good trading decisions.
3. When a trade is positioned in a countercyclical position to the main trend, trading losses usually happen. I do not say that trading with countercyclical positions to the main trend do not succeed, but they have a higher probability of resulting in failures. I trade countercyclical positions sometimes, but I am careful. I usually want to see the patterns having high volatility or being well pronounced. Below is an EURGBP chart showing a two bar reversal that did not move much because it was countercyclical to the main trend which was a downtrend.
Why Price patterns work. Price patterns are patterns that were made by price based on the relationship between time and the movement of price on a price chart. They could be based on a single bar or candlestick, two or more, or even several bars or candlesticks. For now, I would be using just bars. They could be just for one session based on the timeframe or several sessions or days. The charts below illustrate some bars
Single bars
Multiple bars
Some of the reasons why price patterns work are:
1. Prices are determined solely by people’s changing attitudes towards the emerging fundamentals. That means, prices are determined by psychology. Garfield Drew is quoted as saying that: “Stocks don’t sell for what they worth, but for what people think they are worth.” One recent example of people’s changing attitude is the recent selloff in gold that was experienced at the heart of the Covid-19 pandemic. People thought gold being a safe haven could rise rapidly in prices, but for two weeks between March 9 and March 19, the price of gold fell by 14%.
2. Market prices are not random events. People’s changing attitudes towards the value of an asset moves in trends and trends tend to perpetuate. An uptrend is expected to keep going up until the market psychology changes and the same for a downtrend. The shifts in these attitudes are usually captured by price patterns. GBPUSD chart below showing how a shift in trend due to market sentiment is captured by the 123 pattern and trendline very perfectly. A huge rally ensued.
Notes on my observations:
1. Price patterns should not be used in isolation. When I trade price pattern I use confluence of the price pattern with support and resistance levels such as horizontal support and resistance, diagonal support and resistance from trendlines, and Fibonacci levels.
2. Also, you should take note of the underlying psychology that gave rise to the development of the price pattern. I generally trade pullbacks and reversal patterns because these give price actions that conform with the underlying psychology of the market in trends.
Is It The Ghost of Bitcoin Future?
Or, Are those Sunny Skis ahead?
6-Apr-20
With the entire world a bit shaken by everything in it including the Support and Price of Bitcoin is now a good time to see how historically Bitcoin has turned the corner after being “clipped” by a “Black Swan”?
You might say we can’t like Peter Schiff since its history is too young to reference the “2020 Black Swan” or as I like to call it, 2020BS.
But what if we look back, looking back monthly to daily? What I’ve seen is it’s not as much Bitcoin Supporters but rather the Bitcoin M&T, the Marketers and Token Generators who; to hear them tell it have beaten back “Black Swans” Year in and Year out for 10 years and they are right. Fraud, Theft, Scams, Politics, Courts and Competition. But it’s time someone told them that’s not what 2020BS is all about.
It’s about the “Clipping”
The Yellow dashed line is a historical line identifying the center of this current long trend. Following it back to the left tells us it recently was some support and we can expect it to be a Fortress of resistance. Even now it supports both the 200 and 100 EMA’s.
Will the roll back to green any time soon? I would guess not from the width of it. That would be like me trying to roll over on the floor and be just as funny. It’s certainly not getting the support it needs from the 200 and 100 EMA’s
Using the Bars Pattern I selected the pattern that 2020BS cut when the Swan came through.
It begins on 04 Mar 20 and ends on 13 MAR 20.
I cloned and mirrored it into 5 configurations I found feasible and named them in this order
I Probable, Spring Green
II Possible, Moon Yellow
III Maybe, Wine Red
IV Probably Not, Not White
V BINGO On the Kisser Red
I used my polyline skills to make it easier to see.
Thanks once again for letting me share my Bitcoin outlook.
Remember. This is not trading advice. Follow me if you wish, share it if you want and please engage the like button and add your comments below.
The PATTERN series: What happens next?Each price point is to every low from Jan - Dec of that year.
Dec - Jan is missing on purpose, it also is highlighted on the chart with circles.
Using your skills of analysis and prediction, what do you think happens next?
Triangles are awesome: a great exampleHello, I just posted an idea on why I don't like taking breakouts, I mostly do double bottoms on support, but I really loooooove Bit. Connnneeeect. Er I mean triangles.
And as a support and resistance "expert", I know when to buy or not (well sometimes). I got a idea of when they are probably not going to hold much longer, and you see, from one strategy it can open towards another one indirectly. Not good to short at resistance and you got a great pattern right under it? Might as well buy.
If I think shorting at a resistance is a losing strategy, then why not flip it on its head and go the opposite direction?
Looking quickly at some examples, not even S/R or EW, just the pattern, I can eyeball the smelly ones and potentially good:
I probably already made an idea on this, but let's go over it again :)
And guess where it went? Like a fing magnet!!!
Actually this one was really easy to spot, I even remember posting about it.
I don't think I took it and I think it was because I was afraid of being in mid july, I just decided to avoid the mid july to mid august period entirely. Have to take a break at some point anyway.
So unless you are a c**t like me, you have a brain therefore was bullish on gold rather than nonsense like Bitcoin, I really see no reason not to buy this if that's your timeframe and you trade gold (and didn't have other correlated trades going on...).
This is the kind of thing that you have to practice as so to be able to spot more easilly.
I want to look at agri, they're basically what extends most, more than anything else, and they have made so many people rich quick and famous.
This is where people get absolutely massive winners in short periods. Especially when they keep adding to their winner.
Warren Buffet had a massive winner with coca-cola, and people that bought Bitcoin in 2011, but that took a couple of years.
Here we are talking of a few days or weeks to get an absolute insane ripper.
I heard that once a future traded up to limit for 26 days straight, not sure what it was. Lmao I imagine anyone being short there XD RIP.
(trading up to limit means the price goes up the maximum that the CME will allow at which point trading is halted for the day...)
This is ok:
Well anyway, I know there are some nice formations in FX & hard commodities, and also Bitcoin, apart from that I don't really know.
There might be in other markets, but I just stick to what I know.
In any case it is something to look at backtest and if it works add to the list of tools.
Pattern Analysis; incorporating timeframes (USOIL)Understanding trends within a pattern gives analysts the ability to better understand sentiment and directional pressure.
In this example, pattern extremities were highlighted. Then, on a lower timeframe, trends within said pattern drawn.
Overlaying timeframes is a necessary part of a complete analysis, and a complete commodity analysis can help piece together economic factors affecting commodity-sensitive currencies such as CAD and AUD.
Falling and Rising WedgesOne of the first things to know about rising and falling wedge patterns, is that they’re a great indicator of an upcoming reversal. Much the same as other wedge patterns, they’re formed by a consolidation period representing either distribution or accumulation.
While both rising and falling wedges can form over a period of any length, typically the longer the consolidation period, the more explosive the breakout will be when it eventuates
A Falling Wedge is a chart pattern within the context of a downtrend composed of two downward sloping and converging trendlines connecting a series of lower swing/pivot highs and lower swing/pivot lows.
The power of a Falling Wedge can be greater after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed.
Falling Wedges can be stronger when the series of lower swing/pivot highs and lower swing/pivot lows that formed the pattern narrow down into a point/apex as bears become less interested in selling.
2)A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows.
The power of a Rising Wedge can be greater after a moderate upside move due to the possible decrease of underlying support as the pattern is formed.
Rising Wedges can be stronger when the series of higher swing highs and higher swing lows that formed the pattern narrow down into a point/apex as bulls become less interested in buying.
Studying Wave PatternsSmall details inside structures can be great clues which force (buyers or sellers) is more likely to break-out.
Head and shoulders patternA head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
A head and shoulders pattern is comprised of three component parts:
After long bullish trends, the price rises to a peak and subsequently declines to form a trough.
The price rises again to form a second high substantially above the initial peak and declines again.
The price rises a third time, but only to the level of the first peak, before declining once more.
The first and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called the neckline.This neckline also is a support line of this pattern,when will breakdown we will have a short swing trade oportunity
Pullbacks in Tradingin trading you will see this patterns over and over again this is how the market works.
Don’t let pullbacks scare you a pullback needs to happen in order for price to continue its movement.
If you see below on the chart if you have bought all the way down you could have got all that move up without being scared of pullbacks because you know and you are confident in your trading think like that and you will go far in the market.
This is a a very effective way of understanding where the market is going.
Only way a pullback can really damage this chart is if it breaks your buy position which it would have been all the way down from the first pullback.
Good luck in your trading.
Galactic (Stellar) cup & handle pattern (Patterns 1 - 2)Hello my dear followers and newcomers
Today I´ve prepared another educational pattern TA.
XLMBTC chart shows possible Cup & Handle pattern forming as title says.
Full info about C&H pattern with awesome vizualization you can find in the link below
www.investopedia.com
BUY & SELL trigger is based on previous call
