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Bottoms

How to trade Double Tops to the Short Side using 1 hour barsI always ask myself: What's my favorite chart pattern for finding high probability entries? I look at my stats, I look at my various strategies, and I always find I like one type of trade best: Trend Continuation trades using double tops for shorts and double bottoms for longs. The strategy is simple: Using 1 hour wickless bars, (I'll show you how in the video), identify a trending stock by seeing where price is clearly up or down, then identify a double top or double bottom occurring along the trend. When you have two confirmed tops or bottoms, get short or long, as the case may be. The patterns really do come in all shapes and sizes, but they are best when they occur along a resistance line, be it VWAP, a 20 EMA, or some other. They also can be confirmed by looking at your RSI chart which will indicate clearly two v bottoms for a long entry or two peaks for a shorty entry. Seeing where on the RSI chart these double patterns are forming is also instructive. Longs should show up on the RSI chart as a pair of v bottoms occuring at the bottom of the upper half of the chart, above the 50% line. Shorts should show up on the RSI chart as a pair of peaks at the top of lower half of the chart, just below the 50% line. Because you're using 1 hour bars to find entries, it naturally stands to reason that your setups will trigger at the top of the hour, when there is typically a burst of volume. If your analysis is correct, that volume burst will push your trade in the proper direction within seconds, so if you like instant gratificatrion like I do, you'll enjoy that aspect of trading this way.
CAPITALCOM:US100Education
by BlackCar
Horn Tops & Bottoms Pattern - How To Find and Trade ThemHorn patterns are reversal patterns introduced by Bulkowski in his book "Encyclopedia of Chart Patterns". These reversal patterns are not the most commonly used by traders but have very interesting characteristics. In this post, we will cover details about these interesting patterns, such as identification rules and measure rules. 1. Origin Bulkowski discovered horn patterns by studying double tops/bottoms patterns. In his study, he noticed that narrower double bottoms performed better than widely spaced ones, and as such wondered how would perform double bottoms spaced by a single week on a weekly chart. The usage of the weekly timeframe is based on ease of selection and performance considerations, but horn patterns are also visible on the daily timeframe. 2. Identification Horn patterns are relatively easy to identify. The identification of both horns' tops/bottoms should be done on the weekly timeframe. 2.1 Horn Tops The horn tops pattern is characterized by two price highs situated at a similar level, both separated by a candle whose price high is lower than the two adjacent. These can occur in an uptrend but also on the top of downtrend retracements. In an uptrend, this pattern should be clearly visible with prior highest highs inferior to the pattern high. 2.2 Horn Bottoms The horn bottoms, also referred to as "inverted horns" pattern is characterized by two price lows situated at a similar level, both separated by a candle whose price low is higher than the two adjacent. These can occur in a downtrend but also on the bottom of uptrend retracements. In a downtrend this pattern should be clearly visible with prior lowest lows superior to the pattern low. 3. Trading Because of the usage of the weekly timeframe, we can see that trading horn patterns can be more suited to longer term investors. Two approaches can be used when trading horn patterns, trading on identification, that is when the pattern is clearly identified, or trading on confirmation, the latter is the one covered by Bulkowski. A horn top pattern is confirmed when the price breaks below the minimum of the pattern formation, while a horn bottom pattern is confirmed when the price breaks above the maximum of the pattern formation. 3.1 Measure Rule The measure rule for horn patterns allows traders to set stop losses and take profit according to the pattern. For horn bottoms patterns the target price is found by adding the formation height (maximum - minimum) to the formation maximum. For horn top patterns the target price is found by subtracting the formation height (maximum - minimum) to the formation minimum.
Education
by LuxAlgo
19
Position & Swing Trading: Weekly ChartsIf you're position or swing trading, it is a MUST to study weekly charts to confirm: 1. IF a bottom is developing 2. WHERE the bottom will complete ...to plan trades with strong reward/risk ratios. For example, let's take a look at EGLX, which had a gap up at open on its earnings release: 1. Note that today's gap up is from a lower low in the downtrend. This particular bottom is not confirmed just yet. When it makes a higher low is when there will be lower risk for an entry. 2. The first resistance is at 3.27, but there's stronger resistance at 4.44--once the stock's price sustains that level, then the bottom will be complete, which is the best time to consider position trade entries. Both resistance levels should be considered for swing trading potential... First ask: "Are there enough points to gain from your entry point to warrant the risk of the trade?" If no, then move on to the next opportunity; maybe put an alert at the next resistance level to revisit. If yes, then which resistance levels are likely to cause profit-taking? A step-by-step checklist that looks further than the entry is important for not giving back profits just as soon as you make them. Learn more at my website.
EEducation
by MarthaStokesCMT-TechniTrader
Dark Pool Buy Zones in Bottom FormationsIt may be difficult to be optimistic about the future at this time, but it's the BEST time to be on the lookout for Dark Pool Buy Zones in bottom formations. When it's all doom and gloom is when the largest buy-side institutions are accumulating bargain-priced stocks, acquiring their huge lots of shares as the last of the small-lot sellers capitulate. Therefore, divergences are important to think about for identifying where the Dark Pools are accumulating. For example, FIZZ was still moving down when the Accumulation/Distribution indicator started rising. This is a very likely Dark Pool buy zone. Entry requires confirmation that the bottom is likely to complete soon, but this early divergence pattern gives both traders and investors lead time on a good entry at some point down the road. I'm teaching more about how to identify Dark Pool Buy Zones TODAY at the MetaStock Traders Conference. It's a FREE event with many other trainers. I'll be on at 3 pm ET. Hope to see you there!
NASDAQ:FIZZEducation
by MarthaStokesCMT-TechniTrader
An overlooked rule: Wait for the gamblers to have their funMarkets in general sort of always manage to find the nobs breaking point. After big rallies, some may say bubbles, what is known as "dumb money" is attracted, and you might hear that "oh they don't mean dumb in that sense" if you believe this bs you know you are one of them. Where does this experession come from then? They used the word dumb but without meaning it? "They meant you didn't take the time to think" ye that's right, dumb money didn't take the time to think before buying, or before doing anything, which is also known as "being dumb period". Serious investors know these creatures, these "emotionals", are morons. They don't want to get all unpopular so they don't just say the truth directly. The market is not a separate entity, it moves because its participants move it. Those nobs that get all excited, the gamblers and the breakeven idiots, they prevent the price from going up for 2 reasons: - Gamblers buy & sell randomly, 1 because they are gamblers, 2 because they are stupid enough to be gamblers therefore are unable to make any correct prediction, if they try they'll be the kind to get excited twice a day and change their mind based on the latest fractal or magical secret indicator they saw (often accompanied by "I am a legend"). - Breakeven idiots love to breakeven. They buy randomly the latest hyped thing, might be a ponzi, might not, they are full random, if they only bought scams there would be some value to them obviously, but nope, full random. They are bad, they look to get rich quick, and hold bags. They hold to zero on the way down, and to nothing at all on the way up. After bagholding they get desperate to breakeven (see the GME clowns that bought at $350 and above), same with dotcoms. How many idiots were relieved they could finally sell their Amazon shares at $30? Congrats man you got me you get last word well done you were right to hold your bag. You got your $30 a share back. Now Amazon is $3000. So it's obvious what I'm getting at. Once these clowns get wiped out by a scary red candle after bagholding for years (Bitcoin first half of 2020) there basically is no more resistance, the few bagholders left will breakeven at key levels but it won't stop the uptrend, the majority of the breakeven bagholder herd got ripped to pieces by crocs when they crossed the river. Nasdaq, Bitcoin, etc. The more gamblers and breakeven bagholders get attracted to something, the more vertically it goes up after they get wiped out. And until they get wiped out the market never bottoms. They will never win. They are the ultimate illustration of what being BAD at something is. Fun fact you will always hear from the 1% of this herd that got lucky, the ones with survivor bias "ye sure this river is safe to cross for wildebeests just look at me". Wildebeests are the dumbest creatures I have ever seen, after weekend "investors" of course. The behavior, not sarcasm I am serious, the behavior is the same. Do you want to be on the side of wildebeests or the side of crocodiles? The survivor bias ones celebrate their "gains" showing their extreme ignorance, they act like the herd made money, but data says otherwise. We used to have robintrack for example, also the UK regulator which banned BTC in the UK but even in Europe because too many people were losing too much money. We could see visually the data directly. GME, Tesla... (GME from Citadel among others). With Tesla when they buy "the dip" and the price bounces they ALL end up selling on the way up, "breakeven", oh gosh myfxbook is mindblowing for this it's absolutely insane, the 95% on the wrong side of a trend, the average winner size and loser, the awful entries and exits etc. And while TSLA goes up no retailer buys UNTIL THE TOP, and you know exactly what happens: THIS TIME THEY HOLD. Get rid of winners, hold losers. Brilliant. They have this ability to buy at the very top, absolute genius. Hear some news then "sidelines" like they aren't late enough, then crack "OK NOW IS THE RIGHT TIME TO BUY"! The vast majority of crypto bagholders and "dip" buyers that were desperate to catch the bottom ended up missing out. Isn't that amazing? > Do not trade corrections in general > When the gambling bagholding herd joins, get ready to exit and then stay away > Let the gamblers have their fun, and get back into a market after they leave It has always worked this way and it will keep working this way. Gamblers will ALWAYS lose. Bottoms will ALWAYS happen once they get wiped out and never before that, no matter how hard they try to "HODL". If it's not clear enough, if a Tesla or GME or BTC baggy is reading, it's not just about value investors: TREND FOLLOWERS FOLLOW TRENDS. TREND FOLLOWERS CREATE TRENDS. THE PRICEY NO GOY UP IF NO TREND HAPPEN BECAUSE BREAKEVEN TRADERS ARE SELLING. TREND START AFTER BREAKEVENERS AND RANDOM GAMBLERS GET OUT AND SELLING PRESSURE GO GO HOME. THEN PRICE GO GO UP NATURALLY THEN TREND FOLLOWERS FOLLOW TREND AND PRICEY GO GO UP MORE. IF NO TREND THEN TREND FOLLOWERS NO SEE TREND AND NO BUY AND NO PUSH PRICEY UP. I'll make another idea where I get into this, more clean, and without using the word idiot every sentence :D Funny how bagholders try so hard to get everyone else to hold when this is precisely what is holding them back, ignorance and stupidity are cruel jokes.
NASDAQ:TSLAEducation
by MrRenev
14
Adani Power - Don't Miss Power in the Cup- Portfolio Stock at 40Disclaimer ----------------------------- All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (Last Price - 42.10 - 11:52 Hrs / 11th March 2020) Doing it from the vacation spot. Another portfolio stock which one should not miss. Stay classy until next update. Adani Power forming a traditional cup & handle pattern whose handle is running or almost completed at recent low @ 40's - Don't miss the power if you get it specially in the cup. Kindly consult your financial advisor before considering this stock as part of your portfolio. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 2nd July 2019 -Waiting for handle to complete close to 40-45 zone from the tops of 70's ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Is the handle completed at 40's ? Ask the question to your self ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ What Is A Cup And Handle? A cup and handle price pattern on charts is a old school pattern (traditional chart patterns) that resembles a cup and handle where the cup is in the shape of a "U" and the handle has a slight downward drift.
BSE:ADANIPOWEREducation
by WaveTalks
22
Trading styles. Part 4/5. Countertrend trading.There are 2 types of people that do countertrend: - Those at the very bottom - Those at the very top (For those that did not learn maths post high school or is it in high school and didn't learn by themselves either: this does not mean that ALL people at the bottom or at the top do this... I think the majority of bottom feeders go for this, but for those at the top it is the minority like people that play noob champions in video games, bottom 10% perma pick them but they are rare at top 1% level - rare but not non existant). I have a correction to make on this series, I messed up. Trading styles. Part 1/5. The 4 different kinds of bottoms. ==> This does not fit in the list. It should be: 1/4 Pullbacks 2/4 Continuation 3/4 Countertrend 4/4 Ranging Bonus - Exotic strategies Bottom buying and top selling is an element of pullbacks and countertrend but should not get its separate thing. Countertrend can be going against the short term trend with the higher TF trend but this is rather buying pullbacks. Here I am talking about going against the high TF trend and getting out on a lower TF. As I have shown clearly on BTC this works. But as alot of bears that got decimated on the way up have clearly shown this is not that easy. You had to be really picky, enter as close to the top as possible based on many factors (and risk missing out obviously), and then babysit that trade closely. Most noobs still have not figured out how anyone that kept shorting could possibly have made money so... Clearly this is advanced. The problem here is that the bottom 10 or maybe even 33% really think they are at the top. They are completely delusional. Ego takes over or something. Just look at Robinhood casual investors... All going against trends. The OGs/pros keep repeating to go with the trend but they think they can outsmart everyone. Jesse Lauriston Livermore said around 100 years ago "I never buy on reactions... I never go short on rallies..." and "In my method of trading... I BUY after a stock makes a new HIGH". There have been people consistently profitable picking tops and bottoms (both pullbacks and countertrend) so it is not impossible, still, there are a microscopic minority and most people should not try going for this. The thing is, this is what I do ... Pullbacks and Countertrend. tried continuation and ranging too but it is too much I just do not want to lose my focus go do too much. I did not choose this it chose me. I have always been nitty picky and careful and "seeing things". Since I started, at the very start, I saw crypto alts pullback and give huge RR and high probability bottoms. Also going for breaks and such is annoying to me, have to be close to the PC, never goes how I want etc... Most people have clearly shown that they hate missing out! They keep repeating it they made it really clear! So why even consider going agaisnt trends? How stupid! You have to miss out all the time for it to work. If you follow the trend like most people and easiest way to make money, you get rewarded the more you FOMO, the faster you FOMO (as long as you know when to get out). More examples of predictable countertrend things: At the very first few times it happens ignore but after a certain amounts of times the patterns repeat itself the exact same way... Got to take risks to get gains. At some point probably stops working... With BTC there was also a period where someone dumped every day at the same exact time last year. Was easy to hop on and short just before it happened regardless of the trend, as long as the whale kept dumping. I think it lasted a good 2 weeks. I have a rule it is usually do not short anything at all time high (or buy all time low) unless you have very solid reasons for it... This sounds subjective. This is why only the best can go for it. The not best will find anything and count it as a very solid reason. Price can go up 150% before going down. So precision is necessary too. Actually my countertrend strategy is not even pure countertrend it is a mix somewhere between countertrend ranging and pullback. My other main strategy (got 2 main ones) is really going with the trend on a pullback. Do not trade corrections. And looking for the end of a trend sucks too but resistance + extension + momentum can probably work. Entering at the end of an ABC is cool it is what I do all the time, and and ABC might be a 12345 cannot always tell. This is a pullback trade not countertrade, even thought I think the new dominant trend is a bear one: Ah yes, most noobs buy something when it is "overbought", it is truly the most idiotic thing. Had to be somethign started as a prank there is no way. Unless you have insider info or saw a pattern repeat over and over going agaisnt strong momentum is idiotic. I do not even understand how those that do this are able to survive. They have help... No way they survive on their own. Mum perhaps? I also think people look at chart patterns that are only for continuation and apply them to go against the trend. There are those that incorrectly identify the trend thought... somehow... So I guess biggest dificulties:
BITSTAMP:BTCUSDEducation
by MrRenev
3
Educational Piece: How To Find Tops And Bottoms w/ NO IndicatorsA While back I did a post on EURUSD Showing probability of the big move down we’ve seen. Here is the Link: www.tradingview.com About 3/4 of the page down I posted another chart with support levels. I received a few questions where I could tell other traders were looking to buy at the first major support levels. I asked this Question: IF Price does start to Rally…How will you know if it’s a good time to buy? And How would you know if it’s a short lived rally giving you a good place to short at better price Levels. I went in to detail on what patterns to look for based on Institutional Order Flow. You can read my answers near the bottom of that page. I posted this chart for TWO Reasons: #1 it’s Soy Bean Oil so it’s easier to just observe theh chart without having a Biased Opinion since very few people on TradingView trade this instrument. #2 ***This chart shows perfectly two examples I discussed on a How to know it’s a good time to Buy, and the second example shows how you would know it’s a False Rally giving you a better Price to Add to Shorting the symbol. ***Draw the Major Support and Resistance levels I discussed and showed on a chart 3/4 of the way down on the link at the top of this page. ***This Chart looks VERY Similar to the EURUSD I posted in that link. *******One of the best Quotes I’ve ever heard that Dramatically impacted my Trading is this, “When your Looking at a Chart ask yourself this, What would have to Happen for the MOST Retail Traders to Get HURT”! When you get good at answering that question…And when you get good at recognizing Institutional Buying and Selling Accumulation, and Institutional Stop runs. You will be able to trade any chart with a HIGH Probability of Success…WITH NO Indicators!!!! Institutions MOVE Markets…PERIOD. By evaluating Institutional Price Action along with Major Support and Resistance levels. (Without a BIASED Opinion of what You Think Price Will Do)…You’ll be able to “Print Money” out of the market.
CBOT:ZL1!Education
by ChrisMoody
40