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Wave Analysis

📈📉How Market Cycles Work | Bull & Bear Market 🐿 All the financial markets are cyclical : after a sharp and strong bullish trend always comes a severe bearish rally. After panic & massive selloffs, the market tends to recover and awakens optimism closing a vicious circle. Watching carefully how the price acts during these cycles, an observer can identify the recurring stages . #1 Accumulation The accumulation stage starts once the market finds its bottom. Bearish pressure weakens and the market starts trading in sideways. While the crowd remains cautious, smart money like banks and hedge funds start buying the asset considering that to be undervalued. It leads to occasional moderate spikes of a price. Being the best time to buy the market, the accumulation stage is the hardest to spot correctly. Global pessimism and disbelief make the investor scared to buy the asset. #2 - 3 Public Participation & Excess Stage The accumulation stage and the actions of smart money make the crowd buy the asset steadily. Pushing the market to new highs and generating sufficient profits, the crowd brings more and more liquidity into the market. Bullish trend is universally confirmed. The optimism steadily transforms into euphoria and the asset quickly becomes overvalued. Greed starts to dominate the crowd. Record highs are reached and no one doubts further growth. #4 Distribution At some moment the market stops growing. Even though everyone is very confident in a bullish continuation, the market naturally refuses to grow. Moreover, the market starts to slow down and volatility drops steadily. The market starts ranging and trade in sideways. Smart money starts selling their positions steadily to a greedy crowd. #5 Bearish Trend With an absence of growth, more and more market participants start selling the asset. Optimism steadily vanishes and pessimism comes into play. Contemplating negative figures, the crowd starts to panic, making the market fall sharply. The outlook is dark and no one believes in recovery. Then the market suddenly starts slowing down and the cycle repeats. Watch how the price acts, learn the price action & master the market cycles to benefit from any of them. ❤️ Please, if you enjoyed this article, like it and share your feedback in a comment section. Thank you! ❤️
Education
by UnitedSignals
7
Identifying Impulses and correctionsAn impulse describes a strong move in an asset's price coinciding with the main direction of the underlying trend. Impulse waves are trend confirmation waves. The corrective wave is the period move where price is struggling against the trend. e.g. A dead cat bounce (trend continuation pattern) is a short-term recovery in a declining trend that does not indicate a reversal of the downward trend. A flag is a short sloping rectangle bounded by two parallel trend lines. They can be both bullish and bearish.
Education
by thesharkke
70
Gold: How to Combine Technical & Fundamental To Get Best ResultsWhat Does Market Really Follow? We all know that market is normally run by based on Technical Analysis, Fundamental Analysis, and Trading Sentiment. If you want to get a high result on your trade, you must combine these 3 analyses. As USD and Gold both are safe-haven currencies and reserve currencies as well. USD and Gold have a negative co-relation. If the USD rise, Gold will drop. If the USD drops Gold will rise. Which Fundamental Factors Are Responsible for Golds Move? 1. US Economical Reports 2. World Wide Economic Conditions 3. Man-made or Natural Disaster (For the moment Covid Situations) 4. Political or Economic Crisis 5. Central Bank's Rate Decision and some other reasons. What to Do Firstly? You must have a look at US economic reports. US job Market Report, CPI, Manufacturing Reports, and FED economic Overview. If most of the fundamental reports are positive from the USA, that means fundamentally USD is in a good position, which means Gold has a chance to drop. especially CPI / Inflation reports are important for hiking bank rates. So, if you see recent most of the high-impact reports are positive, that means gold has more chance that it will drop and FED is going to deliver the hawkish statement. FED's hawkish statement will give an extra benefit to USD what is negative for Gold. What to Do Secondly Now see your technical chart. A trading view has many awesome tools to draw your Technical Charts. Personally, I do follow pure price action. Based on your chart analysis, find an entry rate, exit rates, and where the stop loss and profit should be put. You can use any kind of technical tools, indicators of what is suitable for you. What To Do Thirdly? To get the trading sentiment, Option expiry and Cot reports will help you a lot. Especially cot reports are free, so check last cot reports. Day Traders usually follow non-Commercial contract positions. if you are a day trader checks a non-commercial contract. if most of the contracts are in a short mode, that means banks, hedge funds, and other financial authorities are selling more. commercial contracts are also very important. because they are big guns and big companies. you should also check their position. Non-Reputable contracts are not really important. How Will I Combine Technical and Fundamental Analysis and implement to my trade? This is the final part. If you see most of the US economic reports are positive in recent months, especially job market reports, manufacturing reports, and Inflation reports. In this case, most of the time FED delivers a hawkish statement. So, you think for Buying USD and Sell Gold. If you see US Economic reports are not supportive, then think about selling USD and buying Gold. This is the first part. I will write details about it in my second part. till then keep reading. If you think this article helped you then, like, comment, and share with your trader's community.
TVC:GOLDEducation
by Gold_Trading_Expert
4
How to approach breakouts - best practiceThis is one of the easiest and simple ways to trade forex pairs. I tried to describe the approach on the chart, both H1 and M15 timeframes. ANALYSIS/ PLANNING THE TRADE: - On the "higher" - H1 - frame we wait for a completion of a sideway move (flag/ consolidation), and note, it took 7 days to complete it, after a strong impulsive move down. - Price makes a local extreme, may we call it a "key" level, followed by two attempts to break it. Usually, the core entry should be located at the third attempt to break the key level. - Breakout attempt: at this time price makes a consolidation at the key level (as opposed to strong prior rejections). This consolidation usually takes a form of a simple ABC correction, that should be monitored at a lower time frame (in our case - M15). - Core target should be at the x2 distance of the width of the H1 consolidation. Therefore the minimum risk to reward is 1:1 with a very high probability of success. - Nevertheless, I would recommend to improve the R:R by locating a better entry with a tight stop loss. INITIATING A TRADE - If you are comfortable with a stop loss above the consolidation as shown on the H1 chart - blue zone - you may trade via a sells stop below the key level. - I prefer to improve market timing (AND THIS CAN BE DONE IN REALITY) and reduce the risk - and enter with a sell stop below the m15 "flag". (Please, switch to M15 chart and check the orange zone marked at the key level). MANAGING THE TRADE Usually, this pattern delivers a strong move and the entry is located easily (NOTE: you have to be very patient - as the consolidation takes a week, and the confirmation is on M15 frame). - I recommend keeping your stop loss intact for a while and track the dynamics of the Bollinger bands 20. - taking profit at x2 distance below the larger consolidation with an entry as described above will give you R:R 4x and this should be quite a good deal. - quite often the potential of such moves is far better then x4, this should be planned and executed within a broader context, I guess. Or by trailing your stop loss and exiting AT OBVIOUS DIVERGENCE (REVERSAL) SIGNALS. - in the case discussed in this post I also showed the exit at the local reversal - that is the best practice of you trade Elliott wave approach - get a reversal impulse up and close the trade at the pullback in the local wave 2 by 50 or 62%. I WOULD ASK TO PUSH A LIKE BUTTON IF YOU FIND THIS POST USEFUL. GOOD LUCK IN YOUR TRADING!
Education
by UnknownUnicorn3382580
Pattern recognition: Ending Diagonal Triangle. The recent price action of the US Dollar Index (DXY) appears to me to be a excellent example of what in EWT is called an Ending Diagonal Triangle. In EWT normally the 5th wave is composed of 5 sub-waves that do not overlap. (Which in this example I have labeled .1,.2,.3,.4,.5). But in this type of ascending triangle formation they do overlap and each sub-wave often has an a-b-c appearance i.e. composed of 3 waves. For more information see the pattern expert Thomas Bulkoski: thepatternsite.com
TVC:DXYEducation
by goodguy
Heikin-Ashi system caught the bitcoin move spot on If you were trading my Heikin-ashi system during this bitcoin accumulation zone, this would’ve been a perfect long opportunity. All signs were directed towards a bull run. Bullish heikin-ashi doji formed after an impulse leg down, a bullish fractal appeared on the bullish hammer candle that started the move. The stochastic was in an oversold range and started to head up on the heikin-ashi doji. With a system, always make sure that all signs are ticked before making a trade, in this trade all signs were ticked and therefore this would be a good trade to make at the time. Discipline is key and do not enter trades if something does not feel right about the price action or your system does not fully follow.
BITSTAMP:BTCUSDEducation
by Major-Heikin-Ashi-Legend
1
💨𝙀𝙒 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝙈𝙪𝙡𝙩𝙞𝙥𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜🌊●●● 𝙈𝙪𝙡𝙩𝙞𝙥𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜 (Mult.Z) Keep in mind that an triple zigzag is rare ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● A Multiple Zigzag comprise two (or three) single zigzags separated by one (or two) corrective pattern(s) in the opposite direction, labeled X . In the first case, it is called «double zigzag», in the second - «triple zigzag» (The first single zigzag is labeled W , the second Y , and the third, if there is one, Z .) ● Waves W , Y and Z are always single zigzags . ● Wave X never goes beyond the beginning of waves W and Y . ● Wave Y always ends past the end of the W , and wave Z , if any, always ends past the end of the Y . ● The first X wave always ends on the territory of the W wave, the second X , if any, on the territory of the Y wave. ● In a triple zigzag, the first X wave is always a zigzag, flat or combination . The second X wave is always a zigzag, flat , triangle or combination . ● In a double zigzag, wave X is always a zigzag, flat , triangle , or combination . ● Double and triple zigzags replace single zigzags , but cannot appear as W , Y , or Z waves. ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ●In a double zigzag, wave Y can equal wave W , .618 wave W , 1.618 wave W , or .terminate at a distance equal to .618 wave W past wave W . In a triple zigzag, there can be equality among waves W , Y and Z , or wave Z can equal .618 wave Y , 1.618 wave Y , or .terminate at a distance equal to .618 wave Y , past wave Y . In a triple zigzag, the Fibonacci relationships between waves W and Y , would be the same as a double zigzag. ● The Fibonacci relationships between waves W and X in a double zigzag, and waves Y and XX in a triple zigzag are analogous to the relationships between waves A and B in a single zigzag . ● In a double zigzag, as a guideline, wave b of wave Y should not break the trendline that connects the beginning of wave W with the end of wave X . ● As a guideline, wave X (second wave X of the triple zigzag) of a double zigzag should break the trend channel formed by the first zigzag in wave W ( Y ) and be greater than 80% of subwave b of wave W ( Y and Z ). ● When a zigzag appears too small to be the entire wave with respect to the preceding wave (or, if it is to be wave 4 , the preceding wave 2 ), the complication of the structure to a multiple zigzag will probably follow. Elliott Wave Principal 2005 and Q&A EWI .
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
5
BTC- 4 TH WAVE CONSOLIDATION DETAILED STUDYEven though i tried my wave count to convince the BTC bulls, it is not possible for me to deviate from NW rules in time cycles. Wave 4 has to to take equal time as wave 3 taken, if you apply this rule ,we have more time left to finish wave 4, So far wave 'A' of wave 4 completed in 5 waves (wxyxz), therefore wave B will resume fastly ,DON'T assume it as 5 th wave Because after wave 'B', BTC bears will start selling to complete the final wave 'C' until 25th OCT,2021. Since wave A is 5 segmet(motive) waves,the retracement of B is limited to 61.8%(47895)(2nd AUG) Wave C must be of 5 wave down after wave B with a minimum target of 25300. Hence 5 th wave will resume from NOV,21
BITSTAMP:BTCUSDEducation
by selvamB
AXS - A Wave Unique To CryptoIn crypto there is wave structure that doesn't exist in standard elliott wave literature and AXS is a chart useful to show this. Crypto volatility is much higher than markets observed by Ralph Elliott, especially in Altcoins that can be much more volatile than Bitcoin. Higher volatility encourages different wave structure. And there is a wave that only exists in the more volatile; Altcoins. It has 3 sub-waves and is much more impulsive than a conventional 5 wave count. Because it is a 3 wave I use "ABC". It often has a ratio of 1:0.618 from A:C where the C wave is a blow off top. With AXS - the higher degree ABC and the penultimate lower degree ABC both have the 1:0.618 ratio. On the chart: The A wave is comprised of two lower degree 5 wave impulses in a pattern called a "1-2,1-2". The B wave is a standard 3 wave retracement. The C wave is a surging impulse comprised from a lower degree motive ABC. It is much more volatile than the A wave. The penultimate lower and higher degree C waves form a giganteum grand-finale $38 impulse. - A motive 3 wave unique to crypto.
BINANCE:AXSUSDEducation
by dRends35
5
EDUCATION - TOP REVERSAL PATTERNS ⚡At the end of a trend, there is a typically a reversal pattern indicating to us that the trend is about to reverse. There are 3 main patterns that you NEED to know. 1. Double Top/Double Bottom A double top/bottom pattern is a chart pattern that consists of 2 consecutive peaks of similar height indicating that there is not enough buying/selling pressure to surpass the extremes of the price. This leads to a reversal in trend. Double top is a bullish to bearish trend reversal. Double bottom is a bearish to bullish trend reversal. For a safe entry, entry would be after the break of the neck line (the last swing point) which is a confirmation that the it is a valid double top/bottom pattern. Double Top: 2. Rising Wedge/Falling Wedge A rising/falling wedge is a chart pattern that occurs when price is making higher highs and higher lows (in an uptrend – rising wedge) and lower lows and lower highs (in a downtrend – falling wedge). As the pattern progresses in the wedge, the range of the price contracts and is confined between 2 lines which get closer. Price eventually breaks out of the wedge and creates a reversal. Rising wedge is a bullish to bearish trend reversal. Falling wedge is a bearish to bullish trend reversal. For a safe entry, wait for a breakout of the wedge to confirm the validity of the wedge pattern. Rising Wedge: 3. Head & Shoulders/Inverse Head & Shoulders A head and shoulders pattern is a chart pattern that appears as a baseline with three peaks. The outside two peaks (shoulders) are close in height and the middle is highest. A normal head and shoulders is a bullish to bearish trend reversal. An INVERSE head and shoulders is a bearish to bullish trend reversal. For a safe entry, it is often advised to enter on the break of the neckline as that would be confirmation of the head and shoulder pattern. Inverse Head & Shoulders: Do your best to find them in your analysis!
Education
by Altsignals
3
EDUCATION - TOP REVERSAL PATTERNS ⚡At the end of a trend, there is a typically a reversal pattern indicating to us that the trend is about to reverse. There are 3 main patterns that you NEED to know. 1. Double Top/Double Bottom A double top/bottom pattern is a chart pattern that consists of 2 consecutive peaks of similar height indicating that there is not enough buying/selling pressure to surpass the extremes of the price. This leads to a reversal in trend. Double top is a bullish to bearish trend reversal. Double bottom is a bearish to bullish trend reversal. For a safe entry, entry would be after the break of the neck line (the last swing point) which is a confirmation that the it is a valid double top/bottom pattern. Double Top: 2. Rising Wedge/Falling Wedge A rising/falling wedge is a chart pattern that occurs when price is making higher highs and higher lows (in an uptrend – rising wedge) and lower lows and lower highs (in a downtrend – falling wedge). As the pattern progresses in the wedge, the range of the price contracts and is confined between 2 lines which get closer. Price eventually breaks out of the wedge and creates a reversal. Rising wedge is a bullish to bearish trend reversal. Falling wedge is a bearish to bullish trend reversal. For a safe entry, wait for a breakout of the wedge to confirm the validity of the wedge pattern. Rising Wedge: 3. Head & Shoulders/Inverse Head & Shoulders A head and shoulders pattern is a chart pattern that appears as a baseline with three peaks. The outside two peaks (shoulders) are close in height and the middle is highest. A normal head and shoulders is a bullish to bearish trend reversal. An INVERSE head and shoulders is a bearish to bullish trend reversal. For a safe entry, it is often advised to enter on the break of the neckline as that would be confirmation of the head and shoulder pattern. Inverse Head & Shoulders: Do your best to find them in your analysis!
Education
by Altsignals
51
Which High is ACTUALLY HIGHER ? Which Low is ACTUALLY LOWER ?Sometimes a series of HIGHS or LOW have virtually the same PRICE, … So what can a TRADER do ??? First a little back ground, In real simplified terms; The prices printed on the Russel Index (or any Index or stock) represents the Russel’s “intrinsic value” multiplied by the “relative value” of the dollar. Therefor the background price action of the dollar actually distorts the price action displayed on the Russel index which is derived from stock dollar values. Most of the time this distortion is negligible but sometime it’s not, .... particularly when the dollar has big swings or the index or stock is trading sideways or near bottoms and tops. A simple trick to resolve this dilemma is to remove the influence of the dollar from the equation. You can do this in TRADING VIEW by dividing the index or stock by DXY. This will then print for you a closer wave pattern resembling the real intrinsic value / momentum behavior of the underlying Index of Stock. For example: Note the subtle changes on the Russel Index chart pattern from LEFT to RIGHT after the influence of the dollars was removed. Hopes this helps.
OANDA:US2000USDEducation
by wolffarchitecture
3
💨𝙀𝙒 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝙎𝙞𝙣𝙜𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜🌊●●● 𝙎𝙞𝙣𝙜𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜 (SZ or ZZ) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● A zigzag always subdivides into three waves. ● Wave A always subdivides into an impulse or leading diagonal . ● Wave C always subdivides into an impulse or ending diagonal . ● Wave B always subdivides into a zigzag, flat , triangle or combination thereof . ● Wave B never moves beyond the start of wave A . ● Wave B always ends within the price territory of wave A . ● Wave C almost always ends beyond the end of wave A . (failure to comply with this requirement is called «truncation» * * Guideline, but should be followed as a rule ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Wave C should not fail to reach the end of wave A by more than 10% of the length of wave A . ● In a zigzag, the length of wave C is usually equal to that of wave A , although it is not uncommonly 1.618 or .618 times the length of wave A (rarely 2.618 ) ● Wave B typically retraces 38 to 79 percent of wave A . ● If wave B is a contracting triangle, it will typically retrace 38 to 50 percent of wave A . ● If wave B is a running contracting triangle , it will typically retrace between 10 and 40 percent of wave A . ● If wave B is a zigzag, it will typically retrace 50 to 79 percent of wave A . ● In a zigzag, if wave A is a leading diagonal , then we would not expect to see an ending diagonal for wave C . ● A line connecting the ends of waves A and C is often parallel to a line connecting the end of wave B and the start of wave A . (Forecasting guideline: Wave C often ends upon reaching a line drawn from the end of wave A that is parallel to a line connecting the start of wave A and the end of wave B .) Elliott Wave Principal 2005 and Q&A EWI.
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
4