Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader.
This journey requires years of practicing and training, constant losses, and nervous breakdowns.
If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent...
💱Today, we're talking about the exciting world of technical analysis, specifically the golden cross and death cross patterns.
💱So, what exactly are these patterns? Well, let me break it down for you. The golden cross pattern is a bullish signal in which a shorter-term moving average rises above a longer-term moving average. On the other hand, the death cross is...
Hey traders,
If you are learning price action trading, you definitely must know a double bottom pattern.
Double bottom is a reversal pattern.
It is applied to spot early market reversal clues and catch the initiation of a new bullish trend .
Preconditions for a double bottom:
1️⃣ The market must trade in a bearish trend .
2️⃣ After a formation of the last...
Even if you are new to investing, you may already know some of the most fundamental principles of sound investing. How did you learn them? Through ordinary, real-life experiences that have nothing to do with the stock market.
For example, have you ever noticed that street vendors often sell seemingly unrelated products - such as umbrellas and sunglasses?...
📉What are Reversal Patterns?
In trading, candlestick patterns are used to analyze the behavior of the market and identify potential opportunities to enter or exit a trade. Reversal patterns and continuation patterns are two types of candlestick patterns that traders look for.
Reversal patterns are characterized by a change in the direction of the trend. These...
Reversal Technical Patterns overview: Part One
Reversal patterns are frequently spotted at the end of the bear/bull market cycles. Here are some of the key patterns with higher probabilities. Can be applied to any market, including forex, crypto, stocks, indices and metals.
Double Bottom (Bulls)
Double Top (Bears)
🔸A double bottom pattern is a classic...
Here is a diverse chart approach for trading that includes some tips:
📍 Use multiple timeframes:
Analyzing charts at different timeframes (e.g., daily, weekly, monthly) can provide a broader perspective on market trends and potential trading opportunities.
📍 Combine chart types:
Using different types of charts, such as line, bar, and candlestick charts, can...
📉CUP AND HANDLE PATTERN
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.A cup and handle is considered a bullish signal extending an uptrend, and it is used to spot opportunities to go long. Technical traders using this indicator should place a stop...
Candlestick Patterns
Candlestick charts are a popular type of chart used by traders to analyze price movements. They display the opening and closing prices, as well as the highs and lows, of an asset over a specific time period. Candlestick patterns are formed by the arrangement of multiple candlesticks and can provide insights into market trends and potential...
☑️WHAT IS THE RISING WEDGE PATTERN?
The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish). A rising wedge can be both a continuation and reversal pattern, although the former is more common and more efficient as it follows the...
☸️WHAT ARE FIB RETRACEMENT LEVELS
Fibonacci retracement levels are horizontal lines that indicate the possible support and resistance levels where price could potentially reverse direction. The first thing you should know about the Fibonacci tool is that it works best when the market is trending.
The idea is to go long on a retracement at a Fibonacci support...
Chart 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...
✳️What is the RSI Indicator
What is the RSI Indicator? The relative strength index is a market indicator that signals when the asset is over-bought or over-sold. This is a momentum-following indicator that measures how fast the price is moving and changing. The RSI uses different types of averages, but its primary purpose is to show whether a trend is strong or...
📚The risk-reward ratio (or risk return ratio) measures how much your potential reward (or return) is, for every dollar you risk.
📚For example:
If you have a risk-reward ratio of 1:3, it means you’re risking $1 to potentially make $3. If you have a risk-reward ratio of 1:5, it means you’re risking $1 to potentially make $5. You get my point.
⚠️Now, here’s the...
OBSERVATIONS :-
1) . As we know Pennant Flag ( Bullish ) is a Continuation pattern
2) First we can see the stock in Uptrend
3) Then it forms symmetric triangle with Flagpole
4) Then there was a breakout outside of the ascending triangle , we have to wait till it retest and then enter
5) You can go LONG / BUY the stock if retests and go further up after...
OBSERVATIONS :-
1) . As we know Inverted Head & Shoulders is a Reversal pattern from Bearish to Bullish
2) We can see the stock is in Downtrend for sometime and slowly losing momentum at the downside
3) Then it forms Left and right shoulders with Head forming with much lower price. Having either Hammer or bearish Marubozu candle is also a confirmation of good...
1) . As we know Triple Top is a Reversal pattern from Bullish to Bearish
2) We can see the stock is in uptrend for sometime and slowly losing momentum
3) Then it forms Three tops with all tops containing Shooting star price rejection candle as well
4) After third top touch if breaks below Neckline resistance , we have to wait till it retest and then enter
5)...
🔴Multi-candle patterns are more reliable
The more candles a specific pattern contains, the more reliable it usually is. 3 candle patterns are better than single candle patterns. 30 candle patterns are usually better than 3 candle patterns. Patterns like head and shoulders, double and triple tops are among my favorites, exactly because of this reason. They...
