Get started

Continuation

Introducing the Bars Since EMA Touch IndicatorHey there traders, Stock Justice here! Are you ready to elevate your trading game? Today, we're going to delve into an exciting indicator I call 'Bars since EMA touch', or 'BSET' for short. Buckle up, because we're about to kick your technical analysis up a notch! The BSET, at its heart, revolves around the Exponential Moving Average, or EMA. When setting up BSET, you'll be prompted for the length of the EMA, with the default being 9. This number represents the number of bars that will be averaged to create your EMA line. A higher value smooths out the line, reducing noise but potentially delaying important signals. A lower value makes the EMA more responsive, but at the risk of responding to market noise. BSET calculates how many bars it's been since the price last touched the EMA. A positive number indicates the number of bars since the price was last above the EMA, and a negative number shows how long it's been since the price was below the EMA. BSET also uses the MACD and signal line to color-code these bars. Blue and red bars indicate price is above the EMA, with blue signaling an upward trend and red signaling a possible downturn if the bar number is above 3. White and green bars indicate price is below the EMA, with white signaling a downward trend and green indicating a possible upturn if the bar number is above 3. This color-coding can be a useful tool to quickly determine whether a potential reversal is in the making or if the current trend is likely to continue. But that's not all! BSET takes it a step further by keeping track of how often price trends extend beyond certain thresholds, updating these thresholds if necessary. These thresholds, shown as red and green lines on the histogram, indicate the 15% percentile for bull and bear trends, respectively. If more than 20% of trends exceed the current threshold, it's adjusted upwards. This gives you a historical context for how long trends usually last and can help you spot when a trend is overextended and might be due for a reversal. BSET is an innovative tool that combines trend tracking with volatility in a unique way, helping you better understand market dynamics and make informed trading decisions. Just remember, every indicator, BSET included, is just a tool. Always use them in conjunction with other analysis methods and never risk more than you're willing to lose. That's it for now, traders. Keep your eyes on the charts and remember: Trade safe, trade smart! This is Stock Justice, signing off!
NASDAQ:QQQEducation
by StockJustice
Introducing the Dual Dynamic Fibonacci Retracement IndicatorHey there, Stock Justice here. Today, I walked you through using the Dual Dynamic Fibonacci Retracement Levels Indicator on TradingView. This powerful tool calculates pivot points and determines Fibonacci retracement levels based on your position in the market. I explored every input, from lookback periods to toggling extra levels, to shifting and extending lines. We also delved into the use of two sets of Fibonacci levels to identify areas of confluence for more robust trading decisions. With vivid colors marking each retracement level and the flexibility to modify the lookback period, this indicator is a game-changer for pinpointing support, resistance, potential reversals, and continuations. Remember, the magic is in the details. Happy trading!
NASDAQ:QQQEducation
by StockJustice
1
📊 Chart Pattern CheatsheetChart patterns are visual representations of a stock's price movement over time. These patterns can provide traders with information about the stock's trend, momentum, and potential future direction. Continuation and reversal patterns are two types of chart patterns that traders use to identify potential entry points. When considering entry points for both continuation and reversal patterns, traders often use a combination of technical indicators and price action analysis. They may use tools such as moving averages, oscillators, and trendlines to confirm a pattern's validity and identify potential entry points. Additionally, traders may set stop-loss orders to manage risk and limit potential losses. 🔹 Continuation patterns Continuation patterns are chart patterns that suggest that the current trend will continue. They occur when the stock price consolidates in a certain range, showing a temporary pause in the trend. Some common continuation patterns include triangles, flags, and pennants. Traders may look to enter a long position when the stock price breaks out of the pattern, typically on higher than average trading volume. 🔹 Reversal patterns Reversal patterns, on the other hand, suggest that the current trend is likely to reverse. These patterns occur when the stock price has reached a high or low point and is likely to move in the opposite direction. Some common reversal patterns include head and shoulders, double tops and bottoms, and the "V" pattern. Traders may look to enter a short position when the stock price breaks below a support level or the neckline of a pattern. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
7
📚 The Difference Between a Reversal and a Continuation!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today I want to share an interesting pattern that I always use to speculate (to an extent) the next move of an asset after an impulse movement. First , locate an impulse movement, bullish or bearish. Second , wait for the correction movement to start. 📌In case of a bullish impulse: 1- if the correction movement is bearish , then expect a continuation bullish impulse to follow. 2- if the correction movement is bullish , then expect a reversal bearish movement to follow. And vice versa... 📌In case of a bearish impulse: 3- if the correction movement is bullish , then expect a continuation bearish impulse to follow. 4- if the correction movement is bearish , then expect a reversal bullish movement to follow. 📉 We can clearly see this pattern is playing out nicely on BTC weekly chart . I have highlighted many example with its pattern number respectively. And you can always refer to the cheat sheet on the left inside the two circles. If we apply the same logic to the current price action. Is BTC currently in a bearish correction as per our case #4? 🗒What do you think? Always follow your trading plan regarding entry, risk management, and trade management. Good luck! And always remember: All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
49
Sell Entry example - Supply and DemandHere is a sell entry example i have put together to show you what i look for in the market when looking for a continuation entry After an impulsive move in either direction we would expect to see a correction, then another impulsive move. The initial impulse move shows us that a lot of volume has entered the market and for this example that the sellers are in control. When this happens we want to capitalise on the next move down and the best way to do this is to be patient and wait on a correction forming so we can get a good high probability entry. This can be applied to all time frames as well as buy or sell
Education
by TradingElements_
Symmetrical triangle pattern: definition & interpretationWhat is a Symmetrical Triangle? Triangle patterns are probably the most popular chart patterns studied by traders. There are three different types of triangles: The ascending triangle, the descending triangle, and the symmetrical triangle. Symmetrical triangles occur when price is consolidating in a way that generates two converging trend lines with similar slopes. It is called "horizontal" because it forms a holding pattern with around 90 bars in which the price moves sideways. The symmetrical triangle usually forms during a trend as a continuation pattern. They tend to break in the direction of the initial move before the triangle formed. But it can be a powerful reversal pattern, in the event of failure. As the market continues to trade in a sideways pattern, the range of trading narrows and the apex of the triangle is formed. The apex of the triangle is a place where supply and demand intersects. The more price approaches the apex, the bigger the chance of a breakout. The pattern will be completed after the breakout (in either direction) A breakout or failure of a triangle pattern, especially on large volume, can be a strong signal of a resumption, or reversal, of the previous trend. Interpretation of the Symmetrical Triangle Pattern Symmetrical triangles, are thought of as continuation patterns developed in markets that are, for the most part, aimless in direction. This Pattern reveals that the market is very unsure about what is going on. Investors do not know what position to take. The triangle pattern shows losing interest, both from the buy-side as well as the sell-side. During this period of indecision, the highs and the lows seem to come together at the apex of the triangle with virtually no significant volume. The supply and demand seem to be one and the same. A symmetrical triangle pattern is the result of the contraction of volatility in the market. In other words, volatility is constantly decreasing. In essence, the symmetrical triangle represents a period of consolidation where traders find a chance to take a breath before the price is forced to break out. Construction of the Pattern • Support Trendline In technical analysis, support is defined as the price floor where a downtrend can be expected to pause. A trendline that connects a series of lows over a period of time is defined as a support trendline. Think of the lower trendline, as the demand line, which represents support on the chart. At this point, the buyers outpace the sellers, and the price begins to rise. • Resistance Trendline A resistance trendline is a downtrend line that connects a series of highs together. • Triangle’s Height The height is the distance between the initial high and low of the triangle pattern. This parameter is commonly used as a breakout target for the symmetrical triangle pattern. • Apex of the Triangle The apex of a triangle is the intersection point of the support and resistance trendline. Pros & Cons of Trading Symmetrical Triangle Pattern • Pros ▹Symmetrical triangles can form in any time frame. ▹These patterns are a sign of an impending breakout. Once the pattern is completed, we will probably have an explosive price movement. ▹A symmetrical triangle is a reliable continuation pattern, so the direction of the breakout can be guessed, based on the prior trend direction. • Cons ▹False breaks are common with symmetrical triangle patterns and can lead to significant losses. ▹Compared to other chart patterns, triangles take longer to develop and become identifiable. The Bottom Line The triangle pattern is one of the most common and popular chart patterns in technical analysis. A better understanding of this pattern and the reasons why it appears on the chart can help us better understand market behavior and identify trading opportunities.
Education
by BobRivera990
2
What are Supply and Demand Zones and How to Trade with Them?What are Supply and Demand Zones? ▷ Demand Zone (Accumulation Area): Accumulation comes from a Latin word meaning to increase something over time. A strong uptrend can only exist if buyers outnumber sellers. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an accumulation or a demand zone. Demand Zone is where traders are willing to buy aggressively because the balance has shifted to the demand side. Here, buyers are dominant and sellers weak. The demand zone represents a period of implicit buying, typically by institutional buyers, while the price remains fairly stable. This area is characterized by mostly sideways price movement. Before a trend starts, price stays in an demand zone until the “big players” have accumulated their positions and then drive price higher. This can be contrasted with the Supply Zone, where institutional investors start to sell. ▷ Supply Zone (Distribution Area): Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone. At Supply Zone traders are willing to sell aggressively because the balance has shifted to the distribution side. Here, sellers are dominant and buyers are weak. Support and Resistance Levels vs. Zones If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar. You won’t be mistaken; Supply and demand zones are natural support and resistance levels. You’ll often find supply and demand zones just below/above support and resistance levels. Types of Supply And Demand Patterns There are two types of patterns: “Reversal” and “Continuation” patterns. While a pattern is forming, there is no way to tell whether the trend will continue or reverse. As such, careful attention should be paid to whether the price breaks above or below the zone. ▷ Continuation Patterns If price continues on its trend, the pattern is known as a continuation pattern. We have two continuation patterns: “Rally-Base_Rally” and “Drop-Base-Drop” ▷ Reversal Patterns When price reverses after a pause, the pattern is known as a reversal pattern. The established trend will pause and then head in a new direction as new energy emerges from the other side (bull or bear). Reversals that occur at market tops are known as distribution patterns. Conversely, reversals that occur at market bottoms are known as accumulation patterns. We have two reversal patterns: “Rally-Base_Drop” and “Drop-Base-Rally” How to Find Supply and Demand Zones? On a price chart, the demand zone is characterized by sideways price movement on above-average volume. When a stock price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the stock is being accumulated by investors and as a result, will be moving up soon. The demand and supply zones are encompassing the base on the beginning of the move. The most important thing is to first finding a sharp move in either direction, after which you can identify its starting point and roughly define the supply or demand zone: • Look at the chart and try to spot successive large candles. • Find the base from which price started the quick move. Usually, before that you have a small sideways move, that is where your supply / demand zone is. • Draw the zone It is very hard to be precise with those levels and here it is more of an art than science. To make it easier to identify these levels, you can use another tool for confirmation. How to Trade with Them? One way to trade with supply and demand areas is reversal trading. After identifying a previous strong market reversal, wait for the price to return to that area. If a false breakout occurs, the chance of seeing a successful reversal is extremely high. Some candlestick patterns such as "Engulfing", "Pin Bar" and "Tweezer Blades" can help you identify trend reversals. Be careful, trading in the opposite direction of the trend is very risky. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed. Trend reversal trading can be a profitable way to trade the markets. However, like any other trading strategy, there is a correct and a wrong way to do it. Pros and Cons Being able to recognize whether an asset is in the demand zone or the supply zone is helpful to investing success. Demand Zone is the origin of a big rally in price. Identifying this area could help investors spot good entry points into an investment before its price begins to rise. Once the price leaves an demand zone, not all buyers got a fill and open interest still exists at that level. Supply and demand traders can use this knowledge to identify high probability price reaction zones. As with anything else, supply and demand zones have their cons, as well. Understanding chart movements such as those seen in the accumulation area can work well during times of relative stability. Still, prudent investors know to pay attention to larger economic events that can quickly reconfigure charts (like the covid-19 epidemic) Key Points • Accumulation / Re-accumulation zones can becomes distribution/Re-distribution zones over a period in the Stock Market • The narrower a supply/demand zone before a strong breakout is, the better the chances for a good reaction the next time typically. • Good supply and demand zones are quite narrow and do not hold too long, which shows strong imbalance between buyers and sellers. • The stronger the breakout, the better the demand zone and the more open interest will usually still exist. • Always look for extremely strong turning points. They are often high probability price levels. • Each time the price re-tests a supply/demand zone, more and more previously unfilled orders are filled and the level is continually weakened. Conclusions Supply and Demand Zones are a great way to identify areas of buying and selling as well as support and resistance, but they work best when combined with other kinds of technical analysis.
BITSTAMP:BTCUSDEducation
by BobRivera990
8
Candlestick Charts Part 3: ContinuationHello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ NOTE: some pattern could be reversal and continuation patterns depending if its in an uptrend or downtrend. Today's video will be about the Candlestick Chart : Continuation Patterns. Continuation Patterns are candlestick patterns that tend to resolve in the same direction as the prevailing trend. So lets start by talking about the different types of Patterns : Bullish Continuation Patterns Bearish Continuation Patterns And they are divided into 3 groups : Weak Patterns Reliable Patterns Strong Patterns We Start with the Strong Continuation Patterns : 1) Rising Three Methods : is a five candlestick bullish continuation pattern. The first candlestick is a large bullish candlestick that takes place during an uptrend. Then a group of two to four small body candlesticks (either bullish or bearish) retreat within the price range established by the first day’s real body bullish candlestick. The final candlestick of the pattern is another large bullish candlestick that closes above the first day’s closing price. 2) Falling Three Methods : is a five candlestick bearish continuation pattern. The first candlestick is a large bearish candlestick that takes place during a downtrend. Then a group of two to four small body candlesticks (either bullish or bearish) slowly ascend within the price range established by the first day’s real body bearish candlestick. The final candlestick of the pattern is another large bearish candlestick that closes below the first day’s closing price. 3) Deliberation in an uptrend : A deliberation structure is comprised of three Japanese candlesticks. All three are bullish (green). The first is a candlestick with a small body followed by a large full candlestick. Finally, the last candlestick also has a small body and forms a star. 4) Concealing Baby Swallow in an uptrend : The Concealing Baby Swallow is a four-line candlestick pattern, which appears so rarely. Two Black Marubozu candles appearing one after the other are very uncommon situation on the candlestick charts what limits the appearance of this pattern. Now Lets Talk about the Reliable Continuation Patterns : 1) Bullish Separating Lines : Bullish separating lines pattern is a two-candle bullish continuation candlestick pattern that comes up in the middle of a bullish trend. It indicates that the current bullish trend is about to continue after a temporary pullback. 2) Bearish Separating Lines : The bearish separating line is known as a bearish continuation pattern. The first line is a white candle that comes up as a long line in a downtrend. The second line is made up of a black candle that comes up as a long line. Both bars will open at the same price, and then the prices are separating. 3) Bullish Matching High : This pattern involves two or more matching highs. On a lower timeframe chart this pattern will look like a support or resistance being broken. Breakouts are used by traders a trigger to enter the market with the momentum of the breakout signaling a new leg of a trend. 4) Bearish Matching Low : This pattern involves two or more matching lows which if broken is a signal that there will be a resumption of the current trend. 5) Upside Tasuki Gap : It is a bullish continuation candlestick pattern which is formed in an ongoing uptrend. This candlestick pattern consists of three candles, the first candlestick is a long-bodied bullish candlestick, and the second candlestick is also a bullish candlestick formed after a gap up. The third candlestick is a bearish candle that closes in the gap formed between these first two bullish candles. 6) Downside Tasuki Gap : Downside Tasuki Gap is a bearish continuation pattern that forms in the middle of a downtrend. The first candle is bearish, and is followed by a negative gap and another bearish candle. The third candle is bullish and closes right in the gap between the first two bars. And Last but not least The Weak Continuation Patterns : 1) Advance Block : The advance block is a three bar pattern. The pattern appears as a block of three white, rising candlesticks, each with a shorter body than the last. The candles should not have overly long shadows as these can sometimes develop into other pattern types such shooting stars and hanging men. 2) Stick Sandwich : The stick sandwich candlestick pattern can occur in both bull and bear markets. The stick sandwich candlestick pattern consists of three candlesticks, where one candlestick has an opposite colored candlestick on both sides. The closing prices of the two candlesticks that surround the opposite colored candlestick must be same. 3) Bullish Side by Side White Lines : – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is white. – Then there is a Gap Up between the First and Second Candle. – The Second and Third Candle are white, their Real Bodies have the same length; moreover they have the Open at the same level (More or less) and is above the Real Body of the First Candle. 4) Bearish Side by Side White Lines : – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is black. – Then there is a Gap Down between the First and Second Candle. – The Second and Third Candle are white, their Real Bodies have the same length; moreover they have the Open at the same level (More or less) and is below the Real Body of the First Candle. 5) Bullish On Neck Line: The on neck candlestick is a continuation pattern. In an on neck pattern, the first candle is Bullish and the second one is Bearish. The first candle’s body is long while the second one is shorter. The second candle closes near the first one or close to the first candle. The pattern gets its name because at the point where the closing prices of the two are nearly the same or same, it forms a horizontal line which looks like a neck or a neckline. 6) Bearish On Neck line : The on neck candlestick is a continuation pattern. In an on neck pattern, the first candle is bearish and the second one is bullish. The first candle’s body is long while the second one is shorter. The second candle closes near the first one or close to the first candle. The pattern gets its name because at the point where the closing prices of the two are nearly the same or same, it forms a horizontal line which looks like a neck or a neckline. I hope that I was able to help you understand Continuation Patterns in Candlestick Charts better and if you have any more questions don't hesitate to ask. Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands , The Different Types Of Trading Strategies, Candlestick Charts Part 1 & 2 links will be bellow
Editors' picks
COINBASE:BTCUSDEducation
by GabiDahduh
36
Continuation & Reversal Correction in price action structures In-depth look at Continuation & Reversal Correction in price action structures/patterns Hi everyone: Today I want to revisit the fundamental aspect of trading impulsive and corrective phases in Price Action Analysis. As you all know I focus on multi-time frame analysis and forecasting/anticipating the next impulsive move in the market. To me, the most important part of identifying the next impulsive phase of the market, is to understand how correction works. An impulse phase usually happens after a correction has finished correcting, so the key is to identify and understand how a corrections structure will complete so we anticipate the next impulsive move. You may have seen my videos on this topic, but today I will go more in detail on this, and explain the 2 types of correctional structure the market can create. The market can only be in 2 phases, impulsive phrase or corrective phrase. In addition, the corrective phrase can only be continuation, or reversal. So to fully have an edge in the market, is to understand what the correctional structure the price is currently making, whether a continuation/reversal, then forecast the possible price outlook, and go down to the lower time frames for possible entries. Now, it's important to understand that different traders/strategies/styles will call these patterns/structures in varies names. What they are called or identify isn't important, but the important aspect is to understand whether they are continuation, or they are reversal. In addition, simply seeing price action structures/patterns by itself, is not a good enough entry criteria for me. You want to combine multi- time frame analysis, top-down approach, and with multiples of these price actions all happening so it adds extra confluence for you to enter a particular trade. Seeing a H and S pattern, on a 5 minute chart, without considering the overall HTF and other factors, will not be a consistent move in the long run. Continuation Correctional Structure/Pattern Bullish/Bearish Flag Bullish/Bearish Pennant Parallel Channel Reversal Correctional Structure/Pattern Ascending/Descending Channel Rising/Falling Wedge Double Top/Bottom Head & Shoulder Pattern/Inverse H and S “M” and “W” style pattern Reversal Impulse Price Action I will forward all the price action structures/patterns videos I have made in the past to help you understand each of the structures more. Impulse VS Correction Multi-time frame analysis Identify a correction for the next impulse move in price action analysis Continuation Bull/Bear Flag Parallel Channel (Horizontal, Ascending, Descending) Reversal Ascending/Descending Channel Reversal Double Top/Bottom Reversal Head & Shoulder Pattern Reversal “M” and “W” style pattern Reversal Impulse Price Action Continuation/Reversal Expanding Structure/Pattern Any questions, comments or feedback please let me know. :) Thank you Jojo
Education
by jojofang0901
40
What is a Cup and Handle Pattern? GBP/USD Real ExampleGood morning, traders! Today we will make an educational post about a specific behavior in the market in certain circumstances, and we wanted to take advantage of the situation in GBP/USD that is currently happening. The pattern we are talking about is the CUP AND HANDLE PATTERN . This pattern is widely used in stocks or indices since they are trend instruments by their essence, and it serves to catch a potential rise in price after a correction. The premise for this pattern to be valid is that the asset is in a CLEAR trend, either bullish or bearish, and has initiated a corrective process. A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u," and the handle has a slight downward drift. There are three key things to consider when forming these patterns: 🔸Length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal (this case). Avoid cups with sharp "V" bottoms. 🔸Depth: Ideally, the cup should not be overly deep. Avoid overly deep handles, as handles should form in the top half of the cup pattern. 🔸Volume: Volume should decrease as prices decline and remain lower than average in the bowl base; it should then increase when the stock begins to make its move higher, back up to test the previous high. 🔸In addition, it is also an important factor that the handle is a clear corrective pattern and has some point of support or support. In this situation, we see that in the daily chart, the price is touching the uptrend line, and also in the published chart, we see how it is also testing the broken zone of the range. The current reversal point is solid.
Education
by ThinkingAntsOk
2
Detail Look into Parallel Channel In Price Action Analysis Hello everyone: Let's take another detailed look into some parallel channels structures/patterns in price action analysis. Recall my previous educational video on Ascending/descending channel correction, they are higher probability reversal price action structures/patterns. Today I want to go over the horizontal parallel channel structures/patterns as well where they are more neutral, more advanced to analyze and forecast the potential direction of the impulse phase following after. Let's take a look into some of these horizontal parallel channel corrections, and break them down more. In my opinion, the longer, deeper these types of parallel channels go, the stronger the next impulsive phase will be. Although they can be tricky depending on whether they are continuation or reversal correction. I will go over for examples in different markets to pinpoint some of these price action structures/patterns. Below are some of the important topics that I mentioned in the video. Reversal Ascending/Descending Channel Risk Management: 3 different entries on how to enter the impulsive phrase of price action Multi-time frame analysis Identify a correction in price action analysis Continuation and Reversal Correction Any questions, comments, or feedback welcome to let me know thx :) Jojo
OANDA:XAUUSDEducation
by jojofang0901
39
Trend Continuation Patterns & Reversal Patterns🚀💣Hi, friends! Let's keep learning?😉 Today we are talking about <> and <> of Technical Analysis 😊 - this girls try to tell You more details😉 Hope, It would be helpful for You♥️ 🐂Bull flag🐂 The principle of bullish flag trading, like all technical analysis figures, is the same - a breakout of the control point is required. As soon as a breakdown has occurred, you can immediately post the target. The target in a bull flag will be the height of the pole. There is one more feature of this figure - the canvas of the flag should be tilted against the main trend. 🐻Bear flag🐻 For the most profitable entry, it is better to enter into a deal with a pending order. As soon as the trade is entered, the take profit is placed at the height of the pole from the breakout point of the pattern. 🐂Bullish pennant🐂 The pattern trading rules are identical to the bull flag trading rules. 🐻Bearish pennant🐻 The trading rules are the same as for the bear flag . 💥Head & Shoulders Pattern💥 After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume . Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point. 💥Inverted Head & Shoulders Pattern💥 An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones. It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful! 💥 Double Bottom Pattern 💥 After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 💥Double Top Pattern 💥 A double top is similar to a double bottom . The only difference is that this pattern is reversed and occurs on uptrends. The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution. 💥Diamond💥 We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point. 💥Cup & Handle💥 Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure. Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
10
In depth look at continuation bull/bear flag structures/patterns Hello everyone: Welcome back to another quick educational video on price action structures/patterns. Today let's go deeper into the continuation correctional structure. Specifically, the continuation bull/bear flag structure. First it's important to understand that a bullish/bearish flag is a continuation correction. They are representing a correctional phrase of the price action, before resuming the previous impulse phrase. As price action traders, we must be able to identify what correction we are seeing. This will allow you to get ahead and make your forecasting so you are prepare to any potential entries Second, bullish/bearish flag correction will appear in any time frames, any markets, and in different sizes. Typically a flag correction will have at least 2 swing highs and 2 swing lows and relatively even and proportion in angle or length. They can be slightly slanted or very parallel to each other. Remember the market is not perfect, it wont always present us picture perfect, textbook structures. Thirds, So its important to understand multi-time frame analysis, top down approach. A LTF bullish/bearish flag may or may not have the potential to start taking off massively due to the higher time frame showing us a conflicting bias. So its important to add as much confluence to your trade as possible. As always, any questions, feedback or comments please let me know :) See you all in my next weekly outlook stream. Thank you
BINANCE:XLMUSDEducation
by jojofang0901
18
Money Heist Binary StrategyOverview: This is a strategy for binary traders to help with finding strong entry points that go with the trend and market sentiment. It can be used on any broker that options turbo trading (not recommending nor am I affiliated with any specific broker). The purpose of using this strategy with these indicators is to help traders with finding entry points going with the trend each and every trade. In order to maximize efficiency with this strategy, I have developed a guideline on how I personally use it to find entry points. NOTE - This strategy works on any time frame. Trade length will be the time frame used for analysis. Eg; Analysis on M5 = 5 minute trades. If you are using a broker with the rollover feature, use a maximum of 2 rollovers only. If you are taking 5 minute trades, 2 rollovers will provide you a 20 minute trade which is more than enough. How Traders Can Benefit From Using This Strategy: As traders, we all know the basic fundamental of trading is to always trade with the trend. However, with binary options, it seems traders can be enticed to focus on reversals against the trend. This can lead to developing bad habits in the market which I personally believe can easily be prevented. Traders can use this strategy to trade with the trend by using a combination of indicators that are shown on the chart. Indicators Used on the Chart: As you can see, I am using 3 different exponential moving averages on the chart. Complimenting my EMA's are a Call or a Put arrow that appear with each candle. On the bottom panel, we can see that the RSI is being used alongside a currency strength meter to help identify which currency is stronger. How the Strategy Works: We begin by first looking at the 3 EMA's on the chart. They serve the purpose of identifying which trend the market is in. In a downtrend, we can see that the EMA's are facing downward while in a uptrend, they are facing upward. A simple technique to identifying the trend using the EMA's is to color code them. In a down trend, the purple EMA will be the highest followed by the red and then the green. In an uptrend, the purple EMA will be the lowest with the red on top and the green at the highest. You can use this technique to identify which general trend the market is flowing in. Not only do EMA's serve the purpose of helping traders identify which trend we are in, they can also act as a moving support or resistance area. When we are in an up trend, the EMA's can act as a moving support - meaning traders can use their price points to take CALL setups. When we are in a downtrend, the EMA's can act as a moving resistance. Next up, we have the RSI located on the bottom panel. As you can see, my use of the RSI is very different than the traditional overbought/oversold style of use. I use the RSI to identify whether there is more bullish or bearish strength. To do this, the RSI has been divided into two zones using a dashed line. If the RSI is within the top zone, consider the buying pressure of the market stronger and look for call setups. If the RSI is within the bottom zone, consider put setups since there is a stronger sellers pressure. The closer the RSI is to the dashed line, the greater the probability of a consolidation or ranging market. You can also see that there is a currency strength meter located within the labels on right axis. I use the currency strength meter to identify which currency pair has more strength. For example, suppose we are looking at USDJPY. If USD is greater than JPY, its a possibility that the currency pair as a whole is going on an uptrend. If JPY is greater than USD, it is a possibility that the currency pair as a whole is going on a down trend. The call/put arrows that appear on the chart are not necessary for you to use but it is recommended. I personally coded the arrow to appear with each candle based on the OHLC values. A substitute indicator for the arrow is a script called "Binary_Blast_v3" coded by author Pipizer! (We thank you for coding this!) My variation of the arrow also provides me a suggested entry price for calls and puts based on previous candle close and depending on which arrow has appeared. How to Apply This Strategy: When the EMA's are lined up and indicate a downtrend, look for a Put arrow (optional but highly recommended), look for the RSI in bottom zone, ensure second currency is stronger than first in the currency meter. You may also use EMA's as extra entry points. When the EMA's are lined up and indicate a uptrend, look for a Call arrow (optional but highly recommended), look for the RSI in top zone, ensure first currency is stronger than second in the currency meter. You may also use EMA's as extra entry points. I personally have developed a points system for traders to use incase the strategy becomes confusing. Points System: 2 points = Not Enough to Enter 3 points = Acceptable trade setup 4 points = Good trade setup 5 points = Great trade setup 6 points = Excellent trade setup To find a setup for a Call: Call arrow = 1 point RSI in top zone = +/- 1 point Currency meter showing first stronger than second = +/- 1 point Price at green EMA = +1 point Price at red EMA = +1 point Price at Purple EMA = +1 point To find a setup for a Put: Put arrow = 1 point RSI in bottom zone = +/- 1 point Currency meter showing second stronger than first = +/- 1 point Price at green EMA = +1 point Price at red EMA = +1 point Price at Purple EMA = +1 point *NOTE* The RSI and Currency Strength Meter are indicators which you must add or remove a point depending on if they favor your setup or not. Remember, indicators work after price action. Use Price action to identify your support and resistance zones then use the indicators as extra confirmations to help you. For any questions, please feel free to message me for help.
Education
by shahzaibbbbb