Reasons behind Pattern formations, Actions & Reactions
Hello Traders!
Welcome Back to another episode with Analyst Aadil1000x.
Today I am going to talk about all of the pattern formations that started from the first drop and after moving stepwise you will understand the next moves.
100% information cannot be given in a single post but at the same time I will not waste your time and I will give you the important knowledge that nobody knows or nobody talks about.
There is always some kind of situation that forces the market to form a pattern and after every pattern, there is an action as well as a reaction. We are going to go deep about Action and reaction. Once it's clear you can play with any market anytime in any timeframe. Always remember Patterns and time are illusions. The market only moves and does not form patterns on purpose but it appears because of human's natural behavior or because of the same steps that traders take again and again and the same types of moves form again and again and we name them with known shapes. After some time these are going to disappear because of changes in traders' intelligence.
In some cases, Action and reaction directions are the same but 70% of the time action and reaction directions are not the same.
What is Action and what is Reaction?
The first step after the pattern is completed is called an action. This is the time when a pattern or trendline or key area is broken. 90% of the time Action is in the direction of the trader's expectation.
The reaction is a move that happens after the minor action and it is the real play of the broker or it's the reaction to a sudden change in supply and demand. This is the time when the majority of the traders make mistakes and trade them wrong. Some reports say traders are 95% wrong and it's because of this tricky move. I am posting my most recent post as an example of BTC where i already predicted the action will be a breakout and as a reaction market will rise.
Now we are going to talk about the chart.
The chart starts with the J pattern and I must tell you one thing every pattern has some kind of motive and strength. Its understanding is deeper than action and reaction and today I will give a touch on this topic.
The Motive of 'J' pattern is a little more push after breaking the previous High. At the same time, J also has a motive to crash the market and it happened. There was a triangle pattern after the 'J' pattern and it's the reaction pattern of 'J'. The motive of both patterns was to dump the market.
The next pattern is a pullback pattern. This pattern is called 'Hope of pullback" and luckily the reaction pattern was in support of the bull and the motive of both patterns was to break the trendline. Once it broke the trendline the strength of these patterns faded away.
Suddenly when the market was supposed to drop another 'J' pattern appeared. Again the motive of the 'J' pattern was one more final push.
Now I am about to reveal the most important point of this important post.
"Every trendline is formed to be broken and after every breakout, there is a reaction pattern that pushes the market back into the trendline"~ Aadil1000x :)
You can see the Market formed a J pattern which let the market go back inside the broken trendline and the M pattern is exactly above the broken trendline . Once the 'M' pattern is formed you know the crash is incoming and it crashed and broke the trendline as well as strong support. Here is the clue of the NEXT MOVE after the bottom.
You can see the trendline is broken but never came back to re-enter. So it's very clear that BTC will touch that trendline whether it takes 1 year or 5 years. The longer it takes the higher the target will be and most probably we will again see the 'M' pattern above that line and a crash after that.
If we look at the current situation there is a breakout of the rising channel same as the example above there will be a breakout of the resistive trendline and If there is 'M' pattern after the breakout then you already know what's going to happen. But there is a possibility that there can be the 'J' pattern and a crash after that. Let's see what market will form.
Important advice that I can give you is that wait for a reaction after the action to catch the trade with perfection.
Don't forget to hit the like button and follow to stay connected.
Welcome Back to another episode with Analyst Aadil1000x.
Today I am going to talk about all of the pattern formations that started from the first drop and after moving stepwise you will understand the next moves.
100% information cannot be given in a single post but at the same time I will not waste your time and I will give you the important knowledge that nobody knows or nobody talks about.
There is always some kind of situation that forces the market to form a pattern and after every pattern, there is an action as well as a reaction. We are going to go deep about Action and reaction. Once it's clear you can play with any market anytime in any timeframe. Always remember Patterns and time are illusions. The market only moves and does not form patterns on purpose but it appears because of human's natural behavior or because of the same steps that traders take again and again and the same types of moves form again and again and we name them with known shapes. After some time these are going to disappear because of changes in traders' intelligence.
In some cases, Action and reaction directions are the same but 70% of the time action and reaction directions are not the same.
What is Action and what is Reaction?
The first step after the pattern is completed is called an action. This is the time when a pattern or trendline or key area is broken. 90% of the time Action is in the direction of the trader's expectation.
The reaction is a move that happens after the minor action and it is the real play of the broker or it's the reaction to a sudden change in supply and demand. This is the time when the majority of the traders make mistakes and trade them wrong. Some reports say traders are 95% wrong and it's because of this tricky move. I am posting my most recent post as an example of BTC where i already predicted the action will be a breakout and as a reaction market will rise.
Now we are going to talk about the chart.
The chart starts with the J pattern and I must tell you one thing every pattern has some kind of motive and strength. Its understanding is deeper than action and reaction and today I will give a touch on this topic.
The Motive of 'J' pattern is a little more push after breaking the previous High. At the same time, J also has a motive to crash the market and it happened. There was a triangle pattern after the 'J' pattern and it's the reaction pattern of 'J'. The motive of both patterns was to dump the market.
The next pattern is a pullback pattern. This pattern is called 'Hope of pullback" and luckily the reaction pattern was in support of the bull and the motive of both patterns was to break the trendline. Once it broke the trendline the strength of these patterns faded away.
Suddenly when the market was supposed to drop another 'J' pattern appeared. Again the motive of the 'J' pattern was one more final push.
Now I am about to reveal the most important point of this important post.
"Every trendline is formed to be broken and after every breakout, there is a reaction pattern that pushes the market back into the trendline"~ Aadil1000x :)
You can see the Market formed a J pattern which let the market go back inside the broken trendline and the M pattern is exactly above the broken trendline . Once the 'M' pattern is formed you know the crash is incoming and it crashed and broke the trendline as well as strong support. Here is the clue of the NEXT MOVE after the bottom.
You can see the trendline is broken but never came back to re-enter. So it's very clear that BTC will touch that trendline whether it takes 1 year or 5 years. The longer it takes the higher the target will be and most probably we will again see the 'M' pattern above that line and a crash after that.
If we look at the current situation there is a breakout of the rising channel same as the example above there will be a breakout of the resistive trendline and If there is 'M' pattern after the breakout then you already know what's going to happen. But there is a possibility that there can be the 'J' pattern and a crash after that. Let's see what market will form.
Important advice that I can give you is that wait for a reaction after the action to catch the trade with perfection.
Don't forget to hit the like button and follow to stay connected.
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