Get started

Patterntrading

📈 4 Common Bullish Patterns🟢 RISING THREE "Rising three methods" is a bullish continuation candlestick pattern that occurs in an uptrend and whose conclusion sees a resumption of that trend. This can be contrasted with a falling three method. The first bar of the pattern is a bullish candlestick with a large real body within a well-defined uptrend. 🟢 FALLING WEDGE The falling wedge pattern occurs when the asset’s price is moving in an overall bullish trend before the price action corrects lower. Within this pull back, two converging trend lines are drawn. The consolidation part ends when the price action bursts through the upper trend line, or wedge’s resistance. 🟢 BULL PENNANT A pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend line. Pennants, which are similar to flags in terms of structure, have converging trend lines during their consolidation period and last from one to three weeks. 🟢 ASCENDING TRIANGLE An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
30
HEAD AND SHOULDERS PATTERN - TRADING GUIDE Head and Shoulders pattern This lesson will cover the following What is a “Head and Shoulders” formation? How can it be confirmed? How can it be traded? The Head and Shoulders pattern forms after an uptrend, and if confirmed, marks a trend reversal. The opposite pattern, the Inverse Head and Shoulders, therefore forms after a downtrend and marks the end of the downward price movement. As you can guess by its name, the Head and Shoulders pattern consists of three peaks – a left shoulder, a head, and a right shoulder. The head should be the highest and the two shoulders should be at least relatively of equal height. As the price corrects from each peak, the lows retreat to form the so-called neckline, which is later used for confirming the pattern. Here is what an H&S pattern looks like. Other key elements of this pattern and its trade process are the breakouts, protective stops, profit target, and volume, which is used as an additional tool to confirm the trend reversal. So here is how you identify the Head and Shoulders pattern and how its individual components are characterized. Formation and confirmation In order to have a trend reversal pattern, you definitely need a trending market. Let's talk about the first model of H&S, the Inverse or Reversal will have the same methodology but exactly in the opposite way. While prices are trending up, our future patterns left shoulder forms as a peak, which marks the high of the current trend. For the shoulder to be formed, the price then needs to correct down, retreating to a low, which is usually above or at the trend line, thus, keeping the uptrend still in force. This low marks the first point used to determine where the neckline stands. Afterward, a new higher peak begins to form, stemming from the left shoulder low, which is our pattern head. As the market makes a higher high (the head), it then corrects back and usually, this is the point where the upward trend is penetrated, thus signaling a shift in momentum and a possible Head and Shoulders pattern. The second low that is touched after the retreat from the heads peak is the other point used to build the neckline, which is basically a line drawn through the two lows. The subsequent rebound from the second low forms the third peak – the right shoulder. It should be lower than the head and overall match the height of the left shoulder (keep in mind that exact matches rarely occur). It is also preferable that the two shoulders have required relatively the same amount of time to form as this would make the pattern stronger. In order for the Head and Shoulders pattern to be confirmed, the retreat from the third peak (the right shoulder) should penetrate the neckline and a candle should close below it. The neckline itself should be horizontal in the perfect case scenario, but that rarely happens. Instead, most often it is sloping up or down and that is of significance as well – a downward-sloping neckline is more bearish than an upward-sloping one. Volume As mentioned above, volume plays a key role as a confirmation tool and can be measured via indicators or by just analyzing its levels. Presumably, volume during the left shoulder advance should be higher than during the subsequent one, because as the head hits a higher high on the base of declining volume, this serves as an early signal for a possible reverse. This, however, does not happen every time. The next step of confirmation comes when volume increases during the decline from the head's peak and the last nail in the coffin are when volume gains further during the right shoulder's decline. Trading the pattern, stops and profit targets We said earlier that the Head and Shoulders pattern is deemed confirmed if the right shoulder's decline penetrates through the neckline and a candle closes below it. As soon as that happens and you are reassured that it is not a false breakout, you can enter into a short position. However, as you already know, no trading decisions should be made on the go, i.e. you need to have predetermined where your protective stop is going to stand and what your profit target is. Protective stop There are two common places where you can place your stop loss. The first one, which is more conservative, is right above the peak of the head, while a more standard position is right beyond the right shoulder. You can see those visualized in the following screenshot. The second option makes more sense because if the breakout through the neckline actually fails and the price rebounds back with such momentum that it rises beyond the right shoulder, then the whole pattern is flawed and you definitely do not need to wait for it to exceed the head as well. Besides, such a loose stop significantly increases the risk and reduces the risk/reward ratio, thus, reducing this pattern's trading appeal. Profit target The most common and often advised profit target is the distance (number of pips) between the head's peak and the neckline. Having estimated that distance, you then need to subtract it from the neckline, just like in the screenshot below. And how does that translate in terms of risk/reward ratio? If the breakout confirmation (the close beyond the neckline) appears very close to the neckline itself, and we enter into a short position there, we generally have a 1:1 risk-to-reward proportion, if we use a conservative protective stop. Why? Since our profit target is the distance between the heads peak and the neckline, if we decide to use the conservative option for a protective stop, then we will have the same distance as a loss limit, thus, reducing our risk-to-reward ratio to 1:1. This is why, in order to improve that ratio, most experienced traders place their protective stops more often above the right shoulders peak, given that they use the head-to-neckline profit target. However, keep in mind that this price distance should serve as a rough target, because things are usually not that straightforward and other factors such as previous support levels, crossing mid-term and long-term moving averages, etc. must be taken into consideration as well. Two ways to trade the Head and Shoulders Pattern There are generally two ways to trade this pattern, depending on how it plays out. The first one we've already mentioned. As soon as a candle closes below the neckline as a sign of confirmation, you enter into a short position with the respective profit target and protective stop described above. Now for the second way to trade the H&S formation. In this case, we have a pullback after the neckline penetration, which, once support, now acts as a resistance level. This time we need to go short once the price pulls back and tests the neckline as resistance. As soon as it rebounds from the neckline, we enter into a short position, using the same principle for placing the protective stop and aiming for the same profit as in the first scenario. Here is what this would look like.
Education
by FOREXN1
1
DGSTACC: VIX PREDICTION!!!!DESCRIPTION: The chart above is an analysis of the VIX and it current pattern formation of a SYMMETRICAL TRIANGLE FORMATION . POINTS: 1. Strong Support for VIX at 19.50 with current Demand Pocket Ceiling for FIB is at 25. 2. Move should occur by the 9th of January as price action would have to compress a lot more by then. 3. Current overall trend is a down trend that we have been seeing for VIX since early October. SCENARIO #1: If break of Symmetrical Triangle occurs towards the downside expect a bounce at 19.50 . SCENARIO #2: If break of Symmetrical Triangle occurs towards the upside expect resistance at 25 . *NOTE: NO RECESSION HAS EVER ENDED WITHOUT A VIX SPIKE TO 45 AT LEAST. TVC:VIX
TVC:VIX
by DGSTBROKERACC
AUDCAD LONGThis pair has been sitting within it's range for a few weeks, following a longer term bearish channel prior to this. We have seen a small breakout to the upside from this channel and are looking to see how this reacts now. We could expect to see a small pullback to the previous resistance of that channel, now acting as support and a bullish bounce off of that. As this is (at the moment) is only a small breakout there could be uncertainty and indecisiveness from the market on this move. Wait for confirmation of a potential bounce before any decision is made. Follow for more.
Long
by BDPO_Trading
2
Acending bottom formation scenario ''IF'' the BTC bottom is inHi @everyone, Like mentioned in previous published ideas we showed you to always be prepared for multiple scenario's In our previous trade plan we showed an possible 'SHORT' swing trade setup for BTC with targets below previous low. In this chart we show (incase of an invalidation on the short swing setup) how we could approuch the market ''IF'' BTC already bottemed out. And will see an Acending bottom formation showing up like in this example. This is aswell an possible trade plan based on a potential scenario where we still have 0 conformation on that it will play out, But.... ''IF'' this scenario could play out, we are well prepared for it. A scenario is a guide with rules for conformations, and invalidations. No mather wich scenario will play out ( becease there to are many of them ) aslong you are prepared on the most of them you are able to make better and saver decisions in your trading. Just Always have a plan and trade based on a position out of strenght, but also having a plan B,C,D etc.. just think like an piece of code --> if this...--> then that--> if this not--> then this.. Enjoy this possible scenario thread, Quantistic
by Quantistic
BNB/USDHello friends Today we will see BNB/USD We don't seem to have much traffic at the moment the price is stuck at the specific point of 282-284. Price should break 286-287 and go ahead to break 293 and hold 300 to be able to make a higher high otherwise it will make 279-273 easy and we might see 270 as well and if he can't keep it we will see 260 or even lower low. I suggest that we do nothing for now until we see some trend-volume on the charts . . . Lower low : If the price of a security closes at a lower price than it did at the close of the previous day, which was also a low, then it is referred to as a lower low. If you liked this idea or if you have your own opinion about it, write in the comments. Thanks for reading!
BINANCE:BNBUSD
by GP101
Learn Cup & Handle Pattern | Profitable Trading Strategy For Beg A Cup and Handle is a bullish continuation chart pattern that marks a consolidation period followed by a breakout. Chart patterns form when the price of an asset moves in a way that resembles a common shape, like a rectangle, flag, pennant, head and shoulders, or, like in this example, a cup and handle. There are two parts to this chart pattern: The cup The handle The cup forms after a downtrend and is followed by an uptrend and looks like a bowl or rounding bottom. As the cup is completed, the price trades sideways, and a trading range is established on the right-hand side and the handle is formed. A breakout from the handle’s trading range signals a continuation of the previous uptrend. The cup should resemble a bowl or rounding bottom. The perfect pattern would have equal highs on both sides of the cup, but in the real world, just like when finding someone to marry, perfect doesn’t exist. After the high forms on the right side of the cup, there is a pullback that forms the handle. The handle is the consolidation before the breakout. The handle needs to be smaller than the cup. The handle should not drop into the lower half of the cup, and ideally, it should stay in the upper third. If the Cup and Handle pattern completes successfully, the price should break above the trend established by the “handle” and go on to reach new highs. The buy point occurs when the asset breaks out or moves upward through the old point of resistance (right side of the cup). Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
Counter TradeHow to take counter trade ? in this video we try to make it easy to took a counter trade (Against the trend) and to make quick money from market #nifty #priceaction #priceactiontrading #optionanalysis #banknifty #bankniftyprediction #nifty50 #niftytomorrow #niftyprediction #niftyanalysis #niftyfifty #niftytoday #niftybank #banknifty #bankniftytomorrow #bankniftyprediction #bnkniftytrading #charts #technicalanalysis #crypto #sensex #nse #nseindia #bse #optionsellingstrategy #optionstrading #optionsellingstrategy #optionstrategy #optiontrading #optionsellingstrategy
NSE:NIFTYEducation
by gurubhai
SP500 CASH - Another Bear market Rally??SP:SPX is in the process of another Bear market rally after yesterdays CPI data gave us one of the biggest one day rallies of all time. But if we look at the previous rally with time and price that gives us an upside target area of between 4150-4200 for around early December. If we get there earlier and go through 4200 then a major low could be in and we head to new ATHs again. The FED is in there again giving us the higher interest rate story but helping the market at the same time. This is also a seasonly bullish time for the market so it will be an interesting few weeks going into the end of the year. I hope this helps.. Enjoy the day.
TVC:SPXLong
by L_F