ABC BullishThe target would be D. This is a correction pattern and is very common. Sometimes it can be an AB=CD in which the AB leg equals the CD leg and you can use the magnet to move the AB leg and project it from C. The targets can also be a bit shorter than the AB leg or an extension of the AB leg. Targets are calculated using fib levels. I use the .382, .618 and .786. For targets 2, I use the 1.272 and the 1.618 but realizing not every security reaches targets 2, some do reach every price level in targets 1. I use my gut on that one. Sometimes I am happy to reach the first target (o: and focus on targets 1 as for many securities targets 2 are down the road and may not ever get here depending on the security and the bullishness or bearishness surrounding the market. There are possibly other ways to calculate targets and we are all different.
When I eyeballed this the BC leg appeared a bit short in comparison to the AB leg. The Auto Fib Retracement tool on here can help nail down C. Retests of C are common. Any pattern can fail and price can go below C. If it goes too far below C, the ABC pattern has failed, so I wait for a double bottom, or another harmonic pattern to form. ABC bullish is a harmonic pattern as it is part of an ABCD pattern, just D is not here yet (o:
Long entry level is a level one chooses that is over immediate resistance, and is also a level where algorithmic/computer trading may kick in as these are programmed to buy at certain levels. Sometimes you will even see a gap up when this happens. Ideally, long entry level or above is where you enter the trade. Long entry level is subjective and you may see another level. I have entered early before, before long entry level and paid the price for doing so. My money was tied up in a security that was not moving and even moving down. Sometimes entering closer to C or near the handle low of a cup pattern can pay off. Sometimes not. It is not fun, and it is not financially lucrative to go in the hole while you wait on price to finally move. Patience can be a virtue.
No recommendation and V is not to long entry level (o:
If a security gets to be too much of a pain and causing me stress, then there are plenty of other securities to choose from (o: I have found that getting too focused on a certain name can screw me sometimes. If price is already out the roof and even arcing, I try to say to myself "Laura, you missed that one" and move on to the next one.
This one is close to support. Any pattern and any level of support can fail.
VISA80 trade ideas
Inside the ascending channel on VisaToday we will analyze the current chart of Visa. Let's start:
a) The main two structures we can see on the chart are: The ascending channel and the dynamic support resistance level (yellow lines)
b) Currently, the price is above the dynamic support resistance level and is supported on the ascending channel
c) At the moment, we have a corrective pattern (green structure), and we say "at the moment" because the pray may keep falling and invalidates the whole idea. Yes, that's trading (what a lonely world)
d) Ok, let's keep going. What we can see here is that if the price breaks above the green horizontal line, we will take that as a confirmation of the bullish view towards the two fibo extensions levels.
e) Invalidation level is always below the structure (assuming that the price reaches the entry-level and then start falling)
f) If everything goes as expected, we can wait for a 90 - 120 days movement towards the target
Thanks for reading! And remember: Protect your Capital!
Strong Bull Signs(Visa)We have initially seen a bullish divergence on the squeeze indicator but needed more to dictate that V will have a significant bull move. We have seen the Weis Wave show that people are more interested in the Bull side as seen by the reduction in bear volume, but we have also seen a confirmed buy signal by the Willy Oscillator. For those that want a greater entry then it may be wise to watch for a dip back to Fibonacci Support(232), but I'm overall long on this stock.
Bullish Signals
-Fibonacci Support
-Willy Oscillator
-Squeeze indicator
-Weis Wave
Price Targets/Resistance
-1st 238.42
-2nd 250
Visa with 5% room to run?Based on historical movement, the trough could occur anywhere in the larger red box. The final targets are in the green boxes. The pending top should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated BUY on August 13, 2021 with a closing price of 232.62.
If this instance is successful, that means the stock should rise to at least 235.82 which is the bottom of the larger green box. Three-quarters of all successful signals have the stock rise 4.355% from the signal closing price. This percentage is the bottom of the smaller green box. Half of all successful signals have the stock rise 4.952% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock rise 7.587% from the signal closing price which is the top of the smaller green box. The maximum rise on record would see a move to the top of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The peak of the rise can occur as soon as the next trading bar after signal close, while the max rise occurs within the limit of study at 40 trading bars after the signal. A 0.5% rise must occur over the next 40 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 14 trading bars; half occur within 27 trading bars, and one-quarter require at least 34 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
BONUS ANALYSIS: All five algorithms have simultaneously signaled a BUY on the two hour chart on four prior occasions. All four instances saw the stock move up a minimum of 4.35%. The median move was 5.557% while the average was 5.89%. The top occurred 12-38 trading bars (24-76 trading hours) after the signal bar with the average around 29 bars, and median at 32.5. The stock did not begin moving upward on three of the four occasions. The stock moved down after the signal for an average of 3 trading bars (6 hours). The target top based on this additional analysis could see the stock move toward 244.37 near the close of trading on August 24, 2021.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).