Get started

Wave Analysis

HARMONIC PATTERNS TRADING | ABCD PATTERN & HOW TO TRADE IT Harmonic ABCD pattern is a classic reversal pattern. In this article, I will teach you how to recognize that pattern and trade it properly. This pattern is composed of 3 main elements (based on wicks of the candles): 1️⃣ AB leg 2️⃣ BC leg 3️⃣ CD leg The pattern is considered to be bullish if AB leg is bearish. The pattern is considered to be bearish if AB leg is bullish. AB leg must be a strong movement without corrections within. A is its initial point and B is its completion point. BC leg is a correctional movement from B point after a completion of AB leg. The price may fluctuate within that. B is its initial point and C is its completion point. CD leg must be a strong movement without corrections within. C is its initial point and D is its completion point. ❗️ABCD movement is harmonic if the length and the time horizon of AB and CD legs are equal. By the length, I mean a price change from A to B point and from C to D point. By the time, I mean a time ranges of AB leg and CD leg. If the time and length of AB and CD legs are equal, the pattern is considered to be harmonic, and a reversal will be expected from D point at least to B point. 🛑If the pattern is bullish, stop loss must be placed below D point. 🛑If the pattern is bearish, stop loss is placed above D point. Initial target level is B point. Usually, after reaching a B point the market returns to a global trend. What pattern do you want to learn in the next post?
OANDA:XAUUSDEducation
by VasilyTrader
1
Trend Trading Strategy for the Heiken Ashi Algo v6Knowing when the RSI and price are in a ranging phase even in the short term can be a difficult process. You are either #Ranging #bullish or #bearish. At least in the Algo v6 you can get a clear vision of exactly whats happening. In this video im going to give you a VERY simple strategy on: 1. How to know if the RSI and price are ranging 2. When do i break away from Ranges 3. Am I trending 4. Im trending but whats my confluence to take a long or short 5. Is my range getting bigger or smaller Enjoy this quick vid and ask questions below. Thanks everyone.
Education
by CoffeeshopCrypto
4
📍Part #2, Elliott Waves: "Motive Waves - Impulse".👩🏻‍💻 Welcome to the 2nd lecture on Elliott Waves. So, Elliott Wave Theory suggests that price behavior follows a wave structure, with three waves being impulse waves and 2 being corrective waves. It can be said that these 5 waves look like the image above. ➡️For example, let's take an upward impulse, where the impulse refers to all these five waves. We observe the first wave of growth, then the second wave is corrective to the first, meaning the second wave is specifically a correction for the first wave. Next, the third wave is a growth wave, the fourth is corrective for the third, and the fifth wave concludes the impulse. Following the completion of the impulse or the five-wave sequence, a correction occurs in the form of A, B, C. ➡️This entire structure is fractal, meaning that if our upward impulse has three waves, and they are also impulse waves, such as the first, third, and fifth, and as impulse waves, as we already know, consist of five waves, then each impulse within this larger five-wave sequence has the same structure of five waves. Furthermore, in the correction A, B, C, waves A and C also have a five-wave structure, but more on that in the next lessons. ➡️If you ask about the timeframes to work with waves, I would say that the 1-hour timeframe is the threshold below which it is not recommended to consider the structure! Next, I will describe the basic rules and regulations concerning impulses in the form of pictures, which are convenient to save and use as a hint when analyzing charts. ➡️Now let's consider some rules that are mandatory for all impulse movements. Rules An impulse always subdivides into five waves. Strong guidelines 📍Wave A almost always will alternate with wave B. Alternation can be expressed in two ways: 1) In the type of correction: sharp/sideways or vice versa 2) In the presence of extension: in waves 2 and 4 of the impulse, two sideways patterns are possible, but only one of them will have an extreme beyond the peak of the previous wave. 📍Wave 4, as a rule, significantly violates the channel formed by the subwaves of wave 3. 📍As a strong norm, no part of wave 4 should enter the price territory of wave 1 or 2. 📍As a strong norm, the peak of wave 4 should not extend beyond the doubled channel constructed from the peaks of waves 1, 2, and 3, while the midline of the channel will serve as the minimum achievable target. 📍Second waves of impulses tend to go beyond the previous fourth wave. When using this norm, the previous fourth wave serves as the minimum target. 📍Sometimes wave 5 does not move beyond the end of wave 3 (in which case it is called a truncation). 📍Often, waves 1 and 5 of the impulse form impulses, but more often they alternate in the type of motive waves: if wave 1 is an impulse, expect wave 5 in the form of a diagonal, and vice versa. Less commonly, waves 1 and 5 form diagonals, but in this case, alternation will be expressed in the form of a pattern: contracting/expanding. So there are also many other lesser indications, but they are too numerous and less frequent. Therefore, I recommend that we focus on the main ones for the time being. 📣This concludes the lecture on impulse waves. Save the images and practice. Next week I'll start talking about the Leading and Ending diagonals. 🔔 Links to other lessons in related ideas. 🔔
Education
by Hellena_Trade
11
Bitcoin - Probabilistic MapSince traders are literally made of particles, it's vital to know the principles of their behavior in micro scale. Some people even use planetary cycles to implement into charting. But I believe the answer is deep in quantum world of probabilities - the fabric of reality itself. Reference to Quantum Mechanics The universe itself prohibits 100% prediction accuracy. This is called Heisenberg Uncertainty Principle, and it's the fundamental building blocks of Quantum Mechanics. In order to predict particles behavior, all you need are just 2 quantities/data/features: 1) Position of the particle 2) Momentum of the particles. If you know it's position and it's momentum, you can easily predict it's trajectory. So if you have position and momentum data of all particles in the universe, and you have unlimited computational power, you can predict their behavior (interaction, movement, etc.), and basically predict the future (stock market, weather, natural disaster, etc). However, the Heisenberg Uncertainty Principle states that it is impossible to collect information of particles's position and momentum with 100% certainty. The more certain you know about particle's position, the less certain it's momentum" and vice versa. So if somehow with the unlimited computational power you can predict particle's position at time with 100% accuracy, then your prediction error for its velocity will be infinity, which prevent you for making accurate further predictions, rendering your model useless. Hence, it's theoretically impossible to make 100% accurate prediction even with unlimited data and unlimited computational power. So Is The Universe deterministic or probabilistic? 100% prediction accuracy also means the universe is deterministic - there's only one possible outcome of the future. Einstein was on this side, citing "God doesn't play with dice". On the other hand, folks like Heisenberg, Max Born, Schrodinger, Oppenheimer, etc.., the founding fathers of Quantum Mechanics, viewed the future as set of possible outcomes each having it's own probability. Since market couldn't care less about anyone's subjective forecasts, I do predictions solely based on historic price dynamics in macro scale to stay objective and true with the market pulse rather than be bared with my endless interpretations of patterns. I don't need my consciousness to interpret because we already have a data derived from collective consciousnesses to work with. Chart is already a reflection of reality that captures the emotions of participants. In other words, it's a time fractal that exposes the essence of the market across timeframes. In turn the market itself is a function of trading time . These basis justify linking systematic fragments of cycles to work out the capacity of price action. Basically in Fractal Analysis, the question is how can direct metrics of the historic waves geometrically explain current and future price levels. The Fibonacci sequence is a mathematical concept that appears in various aspects of nature. This connection between mathematics and the natural world is a fascinating example of how patterns and structures found in abstract concepts like numbers can manifest in physical reality . Particularly, using Golden Ratio as a key rule that governs order in chaos. In TradingView, the "Fibonacci Channels" is a great tool to capture the waves (domestic certainty) and turn them into a probabilistic interconnected structure that captures the uncertainty of the market - the entanglement of price action. To start with it's vital to use log scale where percentages are equally captured in distances. So a 100% a growth, say a vertical distance from $40 to $80 measures the same distance as from $1000 to $2000. Besides, percentages are what drives people to feel emotions which affect market behavior (collective executions). Finding geometric relationship between waves, the use of log scale is a must. As I've done this before I want to show how market deviates near fibs. A Direction of 2013 HIGH ⇨ 2017 HIGH with bottom of 2011 gives next bottom 2015 at 0.618 after -86% drop. And also predicts the COVID bottom in 2019 after -72% drop as well as current level where price has cooled down locally. We can note that previous ATHs are explained with logarithmic curve. That's why we'd need another fib channel to connect 2017 HIGH ⇨ 2021 HIGH direction with previous bottom of -86% drop in 2015. FC of that direction predicts bottoms of 2018 (-84%) and covid 2019 (-72%) at 0.618 again. Together they produce an interference pattern covers significant historic price changes. To further interpret current levels though the chart itself, we can use line with angle of direction connecting 2021 double tops: This shows the capacity of how high the market might still grow before next significant correction, if the local fib to the price hasn't yet dimmed the bullish incentive. Another straight line can be used to connect 2019 COVID LOW (-72%) with 2022 LOW, because we might probably never see such price levels in the nearest future as price has broken out with high rate of change. Now it needs more time and bearish capacity to go there. This line can indicate the bottom of hypothetical correction, if it happens now. Other than that it's a clear trendline with almost 4Y wavelength. Since straight lines doesn't exist in nature, I didn't extend them to the right. Now we need a more adaptive version of it to connect recent local bottoms of the trend. That would be a logarithmic trendline, in other words curves to mimic the function of exponential growth. Therefore falling below it, might indicate a possibility of correction and even reversal. Each day if it fails to grow with the curve, the bears will get depleted. A cross below the logarithmic curve of spreading information would be a confirmation of new bearish incentive. This is simply done to work out boundaries as limits of the function that explains the market. Corrective wave has a timing of 15 days in respect to its domestic volatility properties, before it becomes bearish impulsive or continues the impulsive bullish wave. Curves as a function of trading time explain pretty much all historic bullrun growths. As if there is some kind of gravity that governs the trend or it's the PriceTime that curves with the emerging trend. Individual cycles can be too curved accordingly. So the more the price fails to break out that function, the more predictive curve becomes.
BITSTAMP:BTCUSDEducation
by fract
3
Tow-Legged, ABCD, Elliott WavesFigure 1.1 has two extreme trends and one extreme trading range. This day began with a strong bear trend down to bar 1, then entered an unusually tight trading range until it broke out to the upside by one tick at bar 2, and then reversed to a downside breakout into an exceptionally strong trend down to bar 3. Two-legged moves are common, but unfortunately the traditional nomenclature is confusing. When one occurs as a pullback in a trend, it is often called an ABC move. When the two legs are the first two legs of a trend, Elliott Wave technicians instead refer to the legs as waves 1 and 3, with the pullback between them as wave 2. Some traders who are looking for a measured move will look for a reversal back up after the second leg reaches about the same size as the first leg. These technicians often call the pattern an AB = CD move. The first leg down begins with point A and ends with point B (bar 1 in Figure 1.1, which is also A in the ABC move), and the second leg begins with point C (bar 2 in Figure 1.1, which is also B in the ABC move) and ends with point D (bar 3 in Figure 1.1, which is also C in the ABC move).
FOREXCOM:XAUUSDEducation
by RezaBayat
Market Structure For Beginners 2024 By PapaFinanceTalkMarket Structure For Beginners 2024 By PapaFinanceTalk ________________________________ What is Market Structure? Market Structure is a fundamental concept in the SMC trading system. It refers to the arrangement of past price movements, which can provide insights into future price trends. _____________________________ Key Elements of Market Structure: Trend: - Uptrend: Higher lows and higher highs. - Downtrend: Lower lows and lower highs. - Sideways: Price moves within a narrow range, with no clear direction. Highs and Lows: - Swing Highs and Lows: The highest and lowest points within a trend. - Major Highs and Lows: Significant turning points in the market. Support and Resistance: - Support: A price level where the market tends to bounce back upwards. - Resistance: A price level where the market tends to reverse and fall. _____________________________ Types of Market Structure in SMC: - Impulse: Shows strong price movement. - Corrective: Shows a slowdown in price movement. - Neutral: Shows market indecision with no clear direction. This is a brief overview of Market Structure. For a more in-depth analysis, traders are encouraged to study additional resources and seek professional coaching if necessary. _____________________________ Conclusion: Market Structure is a powerful tool that helps traders understand price behavior. Analyzing Market Structure alongside Volume Analysis and Market Liquidity can enhance the accuracy of market analysis and lead to better trading decisions. _____________________________ Additional Coaching Tips: Practice identifying Market Structure patterns on historical charts. Look for confluences between different Market Structure elements to increase confidence in your analysis. Use Market Structure to identify potential trading opportunities and set up high-probability trades. Remember that Market Structure is a dynamic concept and can change over time. Be flexible and adapt your trading strategies accordingly. By PapaFinanceTalk March 10, 2024
OANDA:XAUUSDEducation
by Papa_Trader
The combination of gcov5 and TCD osc = high precision & win5m chart, overall condition analysis. The combination of gcov5 and TCD osc will give more strength to a decision whether to buy or sell. In turn, it can increase accuracy and win. how to get a win in all positions? 1. refers to bull/bear trend ( TCD osc) 2. find a gcov5 signals based on SnD zone and early TCD trend 3. buy price 3 ticks below the close of the signal candle, and sell price 3 ticks above the close of signal candle, so that we can get a tick advantage. If a high candle formed, so enter half candle price. What to do if we miss the signals? sometimes, we miss a buy signal after several candles. We can still enter the market by referring to the nearest support as a buy area and resistance as a sell area. For attention, do not proceed into market if 1. the price breakdown a support or 2. if we have missed the signal too far DISCLAIMER; This post is not meant to be a buy/sell call, just ideas and research analysis based on measurement tools.
MYX:FCPO1!Education
by TraderAsist
3
Diagonals in ElliottwaveSome old and new rules when it comes to diagonals. Further notice can be added that diagonals actionary waves can be composed either by zig zags or impulses so Waves 1/3/5 can be Impulse or 1/3/5 zig zags We cant have hybrids where we mix zig zags and impulses. Actionary waves in ending diagonals can only be formed by zig zags and never Impulses. Every reactionary wave (or corrective wave) in a diagonal must be a zig zag (or a zig zag family, meaning double or tripple sharp zig zag)
NASDAQ:PEPEducation
by PK_SEND_IT
2
"Introducing the 'FasterThanthePriceShadow' Principle: A Unique In the world of technical analysis, the Elliott Wave Principle has long been revered for its ability to identify market trends and predict price movements. However, in volatile markets, deviations from the traditional five-wave pattern can occur, often attributed to the powerful forces of fear and greed driving investor behavior. One such deviation that I've personally noticed is the occurrence of three-wave movements instead of the expected five within correction patterns, such as ascending triangles. This phenomenon challenges conventional Elliott Wave theory, where corrections are typically composed of three waves, while impulse waves consist of five. In volatile market conditions, the "FasterThanthePriceShadow" principle comes into play, reflecting the rapid and sometimes erratic behavior of market participants. Fear and greed can override the usual wave structures, causing corrections to be truncated or extended beyond what Elliott originally observed. When fear and greed dominate the market sentiment, investors may exhibit impulsive and irrational behavior, leading to incomplete or exaggerated wave formations. In the context of ascending triangles, this could manifest as a shorter consolidation phase or a more pronounced breakout, deviating from the traditional Elliott Wave guidelines. By acknowledging the influence of fear and greed on market dynamics, traders can adapt their strategies to account for these unpredictable movements. While Elliott Wave theory provides valuable insights, the "FasterThanthePriceShadow" principle reminds us to remain flexible and open-minded in our analysis, especially in volatile market conditions. As we continue to navigate the complexities of financial markets, incorporating alternative perspectives like the "FasterThanthePriceShadow" principle can enhance our understanding and decision-making processes, ultimately leading to more informed trading outcomes.
Education
by DataSeer_TB
A simple guide to creating a solid portfolio.Hello, Creating a solid portfolio can be a tough task for most investors. Understanding easy ways of beginning that journey can greatly improve your performance as an investor & greatly amplify your results. The times of just buying the S&P and waiting for your money to keep growing is long gone & active investing can widen the gap between yourself and the normal investor. Below we will be guiding on how you can future proof your stock picks using the NAS100 as an example & point of beginning. 1: Understand the index Understanding the index you want to begin with is the 1st point to look at. This will help you choose the correct index for your journey. In our case The Nasdaq 100 is an index of the hundred largest non-financial stocks listed on the NASDAQ stock exchange. The companies included in this index are often technology or biotechnology firms. 2: Do an analysis of where the index is trading at A simple analysis of where the index is trading at guides you on where most of its components would be trading at. In our case the index is correcting giving as hope that we will easily find companies that are in great points for future buys. The health of the companies will be key in our choices. The chart below shows that we are in correction 3: Know the components of your index All the components of the NAS 100 can be easily found on the www.tradingview.com website via link www.tradingview.com A simple google search will also list all this companies for you. The NAS 100 has 100 components meaning that you have 100 companies to look at. For the purpose of this educational post we will be looking at the biggest 3 companies in the index. We shall evaluate the 3 companies using both fundamental analysis & technical analysis. From fundamental analysis we shall look at key metrics in the balance sheet (does the company have debt), From the income statement (Are revenues steadily increasing over time) & Cashflow statement (Does the company have positive free cashflow). Please note that you can always get deeper with understanding the companies more. Companies that you can access their products are even better for retail investors. Next, we shall evaluate the 3 companies from a technical view using wave analysis. We shall then make calls on whether we are looking for buys or sells or wait recommendations. The 3 companies we shall evaluate are Microsoft, Apple & Alphabet. Company 1: Microsoft Microsoft Corp engages in the development and support of software, services, devices, and solutions. It operates through the following business segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. Key metrics 1: Does the company have debt: (Yes) 2023: Total debt 79.44 billion : Total Debt represents all the interest-bearing obligations of the company, regardless of when these obligations are due for payments. 2:Are revenues steadily increasing over time? Yes ( 2021: USD 168 billion, 2022: USD 198.27 billion, 2023: USD 211.92 billion) 3: Does the company have positive free cashflow Yes (2023: USD 59.48) Technical analysis Company 2: Apple Apple, Inc engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. Key metrics 1: Does the company have debt: Total debt: Total debt USD 123.93 billion : Total Debt represents all the interest-bearing obligations of the company, regardless of when these obligations are due for payments. 2:Are revenues steadily increasing over time? YES 2021: ‪USD 365.82 B‬ 2022: USD 394.33 B‬ 2023: USD ‪383.29 B‬ 3: Does the company have positive free cashflow: YES; USD 99.58 billion Technical analysis We have an alert for buy from USD 170.8 areas Company 3: Alphabet Alphabet, Inc is a holding company. It operates through the Google segment which includes its main Internet products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube. Key Metrics 1: Does the company have debt: YES ‪USD 29.87 B‬ 2: Are revenues steadily increasing over time? YES. 2022: USD 280.88 B‬, 2023: USD 307.16B 3: Does the company have positive free cashflow: YES. USD 69.50 Billion Technical analysis Buying at current place not good. Look for sell if price breaks trendline aggressively. Below are our recommendations for the 3 stocks. Microsoft: No trade setup Apple: Look for buy from USD 170.8 areas Alphabet: Buying at current place not good. Look for sell if price breaks trendline aggressively. We will then look at all the other stocks that make the components of the index using the above metrics & choose the best stocks to invest in. Good luck in your journey. We shall be sharing more educational content.
FX:NAS100Education
by thesharkke
10
Pivot Point 101This is 6 months of every day's Pivot Points. One point I want to make is that buying an S5 or S6 and selling at R5 or R6 is very doable trade, and you really don't need to worry about going outside the S6 ot R6 range, it's a revelation when you accept that fact. Going long here at S6 is literally the safest long there. Selling and Shorting at R6, same thing. plus your stop is just outside the Pivot Range. Unless you are using a trailing stop on a daytrade, you should use ATR stops. The other point I want to make is about daytrading in chop, vs Buying an S6 like on October 23rd, and holding for R6 till Tuesday 19th of December for 3000 NQ points. is swing trading a little boring, sure and it takes patience to hold for that long, and not trade in and out like most day traders do. But are we in this for a thrill or to make a profit?
CME_MINI:NQ1!Education
by dryanhawley
How to Analyze Daily Time Frame on Gold. 5 Important Things There are 5 important things that you should analyze on Gold on a daily time frame to accurately predict long term, midterm and short term movements. In this article, I will share with you a step-by-step guide for daily time frame analysis that you can apply on Gold or any other financial instrument. 1 - Identify the market trend When you analyze a daily time frame, you should identify long term, midterm and short term market trends. Long-term trend is based on the analysis of one year long price action. In the example above, Gold is trading in a long term bullish trend because the price keeps setting new higher high and new higher lows during the year. Midterm trend is based on the analysis of a price action for the last 4–5 months. Above, we can clearly see that a mid-term trend is bullish because again, the price sets new higher highs and higher lows over time. Short-term trend is based on the analysis of price movements for the last 2 months. Short-term price action is also bullish on Gold, with a clear sequence of higher highs and higher lows. According to the trend analysis, long-term, mid-term and short-term trends are bullish. 2 - Identify the directional bias The directional bias defines a highly probable future direction on the market. In our example, we can anticipate that Gold will keep growing among all the dimensions: long-term, mid-term and short-term. 3 - Execute structure analysis Identify important historic horizontal and vertical structures. That will be the points from where you should look for trading opportunities. When you analyze key levels, identify the structures that are lying close to the current price levels. Make sure that all the structures that you spotted were respected by the market in the past. 4 - Look for price action patterns Price action patterns are the language of the market. Proper identification of the patters will help you correctly understand the intentions of the market participants. You can see that a bearish breakout of a rising channel triggered a correctional movement on the market. Gold started to fall steadily within a bullish flag pattern and after it tested a key support, the price violated the resistance of the flag. 5 - Analyze candlesticks Candlestick patterns can provide extra clues and confirmations. You can see that the market formed multiple rejections from key support, an inside bar formation and bullish engulfing candle. Violation of the inside bar to the upside with a strong bullish candle is an important bullish signal. Combining trend analysis, structure analysis, price action and candlestick analysis, and you can make predictions and look for trading opportunities. You can also make your analysis even more sophisticated, for example, analyzing fundamental analysis or applying technical indicators. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
4
Using Multi-timeframe analysis to make better trading decisionsTrading on multiple timeframes can significantly improve your risk-reward ratio, regardless of what TA technique, you are using. Let’s look at the recent example (SPY ETF) Third week of February started with a strong sell-off (Monday-Tuesday 13th). Price retraced >50% of the previous move, signaling potential trend reversal. At this point market Bears started scouting for daily low high to enter short trade. They received signal on Friday 16th when price broke previous day low. A short trader, who trades only daily chart, would enter this trade at Friday close with stop-loss slightly above daily high and 1st profit target near Tuesday low. This setup provides a decent risk-reward ration >2. There is also a chance that previous low will be broken and price will fall even further, adding to profit. So taking this trade makes a lot of sense. On the main graph to this post you can see how it developed. Price has not reached our profit target, reversed and made new high. Trade got stopped-out. Even if trader was using trailing stop (stop moved slightly above each new day high) this would not have saved him from huge overnight price jump Could have the trader done better? Yes, if he had zoomed into lower timeframe and monitored price action there. Here is what we can see on the 15m chart. (boxes show hourly candles, color coding matches hourly wave direction, you can read about how waves are constructed here ) Bearish reversal pattern shaped on Thursday- Friday. It is not an ideal triple top but there was a clear weakening of upthrust. Also, on Friday morning price broke previous day low, a sign of an increased bearish strength. Basically, at 21.30 (UTC+1) short trader already had enough evidence to enter trade. He could have done it w/o waiting for day closure. This would have already been a better entrance than in the first scenario. After entering the trade, trader could start monitoring for continuation. Tuesday was clearly bearish but on Wednesday there were multiple signs of shift of control. Firstly, price was able to set hourly higher low. Secondly, bearish wave was progressing very slowly. Finally, there was a 15 m equilibrium (end of Wednesday RTH) that resolved convincingly bullish. At this point a reasonable trader should have closed his trade without hesitation. This would not be a great trade still, but it will be a profitable one, with risk-reward 1.7 . It is nearly impossible to achieve same results looking just on the daily chart. Disclaimer I don't give trading or investing advices, just sharing my thoughts
AMEX:SPYEducation
by hermes_trisme
Education: Riding the UNI wave to completionIn the world of crypto, altcoins like UNI offer amazing opportunities and lessons in market dynamics. For novice investors, understanding these dynamics can be a stepping stone to successful investing. Let’s look into the case of UNI and what its recent market movements can teach us. Understanding UNI and Its Market Significance UNI is the native token of Uniswap, a leading decentralized exchange platform that facilitates the trading of cryptocurrencies without the need for a central authority. This feature makes UNI not just a cryptocurrency but also a part of the evolving decentralized finance ecosystem. The Breakout from a Downtrend In November 2023, UNI broke out from a downtrend line that had been in place since around July/August 2022. This was a significant event for several reasons. A downtrend line is drawn by connecting the high points of an asset's price chart, showing a downward trajectory. When a breakout occurs, it indicates that the asset’s price has managed to surpass this line, suggesting a potential reversal in trend from bearish to bullish. Why This Breakout Mattered For traders and investors, a breakout from a long-established downtrend is a bullish signal. It suggests a change in market sentiment and possibly the start of an upward movement. In the case of UNI, this breakout was particularly noteworthy because the trendline had been respected and retested multiple times over several months, proving its significance. The Strategy Behind the Investment Based on this breakout, the decision to purchase UNI targeted a price of $12, a figure inspired by the prior resistance level from April 2022. In trading, resistance levels are where the price tends to find opposition as it rises. Once surpassed, such levels can boost confidence among investors. The Importance of Strategy and Discipline The UNI scenario underscores a few key principles in trading: Breakouts Are Bullish : A breakout from a downtrend signals a potential reversal to a bullish market. Retests Are Common : After breaking out, it's common for the price to retest the trendline, but not always. Set Clear Targets : Using Fibonacci targets or horizontal resistance levels helps in setting realistic exit points. In volatile markets, identifying a "war zone" of Fibonacci levels can be an effective strategy to scale out or close positions. Respect Your Exit Strategy : Especially after a significant price spike, adhering to your predetermined exit plan is crucial to capitalize on gains and minimize losses. Final Thoughts For novice investors, the UNI case is a good lesson in the principles of market analysis and trading discipline. It teaches the importance of recognizing trend reversals, setting clear goals, and adhering to a strategy despite market volatility. As you go on your trading journey, remember that knowledge, strategy, and discipline are your best tools for navigating the crypto markets. Whether it's UNI or any other asset, informed decisions and a clear plan will guide your path to success.
Education
by bitdoctor
How to Trade Broadening Formations. ________________________________________________________________________________________________________________________________________ Hello traders investors and community. Today I show some important trading formations which can help to identify a profitable trading entry in the markets. These types are when confirmed highly probable trading set-ups to open whether a LONG or SHORT position. In volatile markets, these formations can develop quite often. ________________________________________________________________________________________________________________________________________ 1.) Ascending Broadening Wedge 2.) Descending Broadening Wedge 3.) Broadening Wedge Bottoms 4.) Broadening Wedge Tops 5.) Ascending Right-Angled Broadening Formations 6.) Descending Right-Angled Broadening Formations ________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________ 1.) Ascending Broadening Wedge These wedges most often break-out in the direction where they came from. So it is a wise idea to trade the break-out in the direction, otherwise, swing-trades can be traded from trend-line to trend-line in the broadening wedge. The target is the full height of the pattern, from the lowest low to the highest high forming the trendlines. Identifying tradable ascending broadening wedges can provide good risk and reward trades with high profit. 2.) Descending Broadening Wedge This Wedge is similar to the Ascending Broadening Wedge. We are looking for two touches for each trendline before a reversal and breakout happen as shown in my chart. The Breakout can be traded with a minimum target of the percentage distance from the full height of the pattern, from the lowest low to the lowest high. 3.) Broadening Wedge Bottoms Broadening Wedge Bottoms are as you can see in the picture provided in my chart. Reversals marking a significant reversal after a downtrend. The bottom is formed with three touches of the lower trendline and three touches of the higher trendline. The target is the highest high in the pattern minus the lowest low in the pattern. 4.) Broadening Wedge Tops Broadeing Wedge Tops are similar to Bottoms. They develop in a rising trend forming higher highs and lower lows in a broadening scale-like seen in the picture. Three higher highs marking the upper boundary of the formation and two lower lows marking the lower boundary of the formation. The target projection is the same as with broadening bottoms. 5.) Ascending Right-Angled Broadening Formations They develop with a horizontal trendline and a sloping trendline. The price broadens over time in the formation forming three lows and two highs as you can see in the chart. The wedge breaks in the direction where it came from and can be traded either with swing trades in the wedge or with a breakout entry to trade the breakout. The target is the height of the complete wedge at the breakout point and is projected from the breakout in the breakout direction to determine the minimum target. 6.) Descending Right-Angled Broadening Formations These are the same as Ascending Right-Angled Broadening Formation just with a little different structure. Here we have a horizontal lower trendline and a sloping higher trendline which are forming the overall formation. We see two touches of the lower trendline and three touches of the higher trend-line just as with the Ascending Right-Angled Broadening Formation. The price projection is also the same and the formation can be wisely traded in the breakout direction. ________________________________________________________________________________________________________________________________________ If you like this tutorial feel free to support my work. Thank you. ________________________________________________________________________________________________________________________________________ “The eye sees only what the mind is prepared to comprehend.” ________________________________________________________________________________________________________________________________________
BITSTAMP:BTCUSDEducation
by VincePrince
14
My view after two years (Sharp correction pattern)Hi there, I wanted to share my thoughts on Sharp's corrective pattern with you. I have been studying this pattern for about two years now and it follows three basic rules. The pattern consists of five waves that are similar to the impulse pattern. Based on my personal experience, this pattern can also be labeled as a triple zigzag (W-X-Y-X-Z). While analyzing different markets, I found a similar number of this pattern and often labeled it as an impulse pattern by following the rules. As per the wave principle, after the completion of five waves, we look for three corrective waves which may also become more complicated. However, we then look for five more waves to complete a good zigzag pattern. But the market often surprises an analyst at this point. I hope my explanation helps you understand Sharp's corrective pattern a little better. Good luck!
FOREXCOM:XAUUSDEducation
by Mehdi_Abbasi_EWP
Elliott Waves: Natural Gas case study Overview: Since the significant bottom in June 2020, Natural Gas embarked on a compelling journey, forming a fresh impulse that concluded around the highs of August 2022 as Wave I in the Cycle Degree. The subsequent phase witnessed a corrective move, labeled as Wave II on the weekly timeframe, comprising three subdivisions: ((A)), ((B)), and ((C)). The current focus is on the ongoing Wave ((C)) on the Daily timeframe, expected to unfold in five subdivisions: (1), (2), (3), (4), and (5). Within this framework, Wave (1) to (4) are complete, and attention now turns to the unfolding of Wave (5) on the Four-Hourly timeframe. Current Structure: On the Four-Hourly timeframe, Natural Gas is in the process of forming Wave (5), consisting of Wave 1, 2, and the ongoing development of Wave 3. The details of Wave 3 are further observed on the Hourly timeframe as finished wave ((i)) & ((ii)) and now possibly we are unfolding Wave ((iii)) of 3 of (5) of ((C)) of II. Elliott Wave Principles: Corrective Structure: Wave II is corrective, manifesting as a complex correction with three subdivisions, labeled ((A)), ((B)), and ((C)). Impulse Formation: The primary upward movement from June 2020 to August 2022 represents an impulse, characterized by a sequence of five waves. Subdivision Details: Each wave and subdivision unfolds according to Elliott Wave principles, maintaining the structural integrity of the overall pattern. Learning Points: Analyzing Market Cycles: Elliott Wave Analysis serves as a valuable tool for understanding the cyclical nature of markets, providing insights into the psychology of both buyers and sellers. Trend Anticipation: Corrective waves within the Elliott Wave framework offer a strategic opportunity to foresee potential trends—whether they signify a resumption or reversal of the existing trend. Elliott Wave Analysis is a tool to decipher market cycles, offering insights into the psychological dynamics of buyers and sellers. Corrective waves provide an opportunity to anticipate trend resumption or reversal. The principle of non-overlapping waves helps identify the structure of the market move. Validation and Risk Management: The integrity of this Elliott Wave structure is contingent on Wave II not surpassing the low of Wave I, identified at $1.440. A breach of this level would invalidate the current wave count. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NYMEX:NG1!Education
by RK_Chaarts
20
The truth about Buy at the bottom & sell at the topHello, If you're here, you've likely encountered the timeless advice of "buying at the bottom and selling at the top " is an advice you must have heard by now. However, executing this is one of the most difficult things for most people to do. This is majorly because most people cannot tell where the stock is at during any particular point in time. Fundamentals will tell you the estimated valuation of a stock, what the company does as a core business activity, where it derives its revenues, where it burns most of its cash and all other metrics including the cashflow situations. However, the stock market chart is very key in your valuation and price entry journey. The historical price chart would tell you the lowest and highest points a stock reached during a certain time period. Noting these key points can greatly amplify your results and giving you an edge against other traders. Notice how the current price of our chart IBM is nearing its highest point in a decade, suggesting it's not an opportune time for purchases. This is because structure can change once we get to the top and room for making a proper reward against risk is much limited. Investors who bought at the bottom in 2020 will begin liquidating their position which might result in stock prices coming down. For the chart I will be keeping a keen eye at the top to see how price would react. This can be shown over & over in many other charts to help investors with entry points. Goodluck & please feel free to share your comments.
NYSE:IBMEducation
by thesharkke
3
A B C WAVE BULL RUNI am looking at this unfolding. An A,B,C wave up. Most of the people commenting we are going down are trolls or uneducated. Just look at where we came from not to long ago at 13k so how is 40k a bear run, LOL. It is important to understand that reading different time charts is required to understand where we are going with price action. to find out where we are going for the hour, I look at the 4 hour , 6 hour and last 3 days. You have to zoom out to see and read the day and hours to understand the micro supports and resistance. I also hunt liquidity because thats a MM move. MM will always make money, so why not follow the MM along with reading maps and charts. we are definitely in a bull run. The ocean high and low tides have different up and down size waves, trading is like watching the ocean waves and predicting the behavior patterns of it, now translate that action in to human emotions, witch no one should trade with, but 80% do, so use it with MM. You have to follow the crowd to get in to the show, only a few selected can use the back stage doors. Cheers all. This is all just my observation and Opinion.
COINBASE:BTCUSDEducation
by BitCoinYetti
Trading a Symmetrical Triangle with Traffic Light SystemTrading a Symmetrical Triangle with Traffic Light System: Identifying, Trading Fakeouts, and Ensuring a consistent profitable Positive Expectancy Identify the Symmetrical Triangle: Locate the symmetrical triangle pattern on the chart, formed by converging trendlines with symmetry. Implemention of TLS: Green Light (Action): Observe consolidation above or below and outside of the triangle. Amber Light (Consolidation): As the price nears key levels and the apex, signaling potential volatility and future retest areas. Red Light (Action): Beyond the triangles upper or lower border/trendline, prepare for a significant price movement in the other direction or a strong continuation of the trend prior. Identifying a Fakeout: Look for sudden and sharp price movements that seem to break the trend but lack confirmation through increased volume or strong technical signals. Trading a Fakeout: Stay cautious during the amber light phase. If a potential fakeout is suspected, avoid entering trades until there's clear confirmation. Creating Positive Expectancy: Utilize the TLS to filter out false signals and improve trade accuracy. Focus on high-probability setups, and use a favorable risk-reward ratio for each trade. Recovering from a Trap: If caught in a fakeout, implement the "Test and Break" theory. Wait for a retest of the original breakout/breakdown point. If the price fails to break past this point, consider it a false move and adjust your trade accordingly. Positive Recovery Approach: Rather than accepting the loss, adapt your strategy based on the TLS signals and the retest theory. Use this as an opportunity to learn and refine your approach for future trades. Monitor and Adjust: Continuously monitor the trade, adjusting stop-loss and take-profit levels based on TLS signals and retest observations. This active management helps to maximize gains and minimize losses. Remember to apply risk management strategies and conduct thorough analysis before making any trading decisions. Stay adaptable and leverage the TLS to enhance the reliability of your trading strategy, turning potential setbacks into learning opportunities. Navigating Breakouts and Retests: Strategies with the Traffic Light System (TLS) Discover effective trading strategies for breakouts and retests, enhanced with the clarity of the Traffic Light System (TLS). Breakouts and Retests: Understand the dynamics of breakouts and subsequent retests, crucial for seizing market momentum. The TLS provides a clear signal for favorable entry points. Identifying Fakeouts: Sharpen your skills in recognizing false breakouts by evaluating volume, market sentiment, and multiple indicators through the TLS. Trading Strategy: Wait for confirmed breakouts, use retests as entry points, and execute with confidence and risk management, guided by the TLS signals. TLS in Action: Integrate the TLS into your analysis, enhancing precision in decision-making during breakouts and retests. Mastering breakout and retest trading involves technical analysis, market awareness, and the strategic use of the TLS, leading to confident and precise decision-making.
EIGHTCAP:BTCUSDEducation
by SmartMoneyDayTrading
3
DON't USE TRENDLINE FOR TRADESHello guys. I want to tell sm about trendlines and their lacks. As you know every trader has a personal thoughts about markets and strategies. So also about drawing TRENDLINES. This varietion Causes false signals for trading + smart money knows that retail traders what doing in charts. Based on this you can see various false signal when using trendlines. I suggest you do not use trendline for trades and replace it by finding best orderblocks It's big title for explaining only i want to tell briefly about it I would like to trade with BIG BOYS NOT A retails. THINK WISELY NOT SILLY
Education
by pichilotrades
2