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Bullish Pennant

Bitcoin : The Godmode fractal is in playHello traders! We hope you have been enjoying the end of year time, personally I cant wait for 2020 to be over, but considering Bitcoin has been absolutely dominating this year, I am feeling content that it is ending in the best way possible. So let me give you some hope here for a great start to the new year with this potential fractal I have spotted on Bitcoin... but first, what is a fractal? From the TradingView page on Fractals itself: " Fractals are not only abundant in nature, they are also the building blocks of trends. They are simple yet important, repetitive formations, self-similar across different time frames and used by traders to identify or conform a trend (markets trend about 30% of the time) in order to trade it profitably. When broken apart, they exhibit the same characteristics as greater patterns or price movements. Fractals lag the market, because it takes time for them to form. " So a fractal is a repetitive formation that can be identical or have almost identical characteristics, playing out repeatedly over time. In this current fractal on Bitcoin i can spot 6 key similarities in the Price Action now and on December the 18th: ( Price Action is the term used to describe the way the Candlesticks react to certain areas marked on the chart ) -Each consecutive move, measured from the swing low, is around 25% total increase -A Orderblock support area is formed towards the end of the thrust -After the thrust, a Bull Pennant forms -The Bull Pennant breaks out downwards, with a small Head & Shoulders formation heading under the Orderblock -The downwards move generates liquidity for large buy orders, reversing the trend and failing the downwards breakout of both the Head & Shoulders and Bull Pennant patterns -We see the price reclaim the Orderblock support before the real Bull Penannt breakout (upwards) Dont understand any of that? No stress, i have you covered. From start to finish I will explain each individual formation I have spotted, and give a basic comparison of the similarities so you can understand the meaning of each. 1. Orderblocks Click the below image for further education. Order blocks are a form of Supply & Demand Zones and price can commonly find Resistance or Support on them. For those who are new to Technical Analysis ; "Support" is a area on the chart price and demand (buying pressure) increases from, with "Resistance" being the opposite, with price decreasing and sellers increasing from the latter. This makes them a great tool for finding exit or entry points for trades. Click the above image to understand how Orderblocks are drawn on the Cryptocurrency markets. To draw and identify Order blocks first we must find important areas in the chart where price has reversed or broken market structure or and we are looking for small candle bodies in between these large movements to find our order blocks. A zone is drawn across them using the Rectangle tool. When price revisits these areas it tends to react to it; giving traders a opportunity to capitalize on these movement's. They also are a useful tool for gouging Risk & Price targets as when one Order block is "claimed" price tends to head towards the next like a magnet; so they become ideal take profit & SL (Stop Loss) areas. 2. Bull Pennant Click the below image for further education. Bull Pennants are a little different to Bull Flags but are almost identical in appearance and are traded basically the same. The most important factor in identifying any flag or pennant pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern. After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards. Bull Flags and Bull Pennants have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas such as Orderblocks. Enter at the invalidation point of the pattern which is usually the 5th touch (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target. Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on this current example. The liquidity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long once the price confirms support back inside the pennant. Some key points: • PRICE MUST MOVE STRAIGHT UPBEFOREHAND • MIN 2 Touches each side on almost symmetrical looking wedge • HIGH SUCCESS RATE • BEST ENTRY IS often when price fakes out under support • Pattern height is measured and added to swing low before breakout for possible target 3. Head & Shoulders Click the below image for further education. The Head & Shoulders Pattern is quite common on Bitcoin and have had great results on the higher timeframe charts. Price forms 3 distinct peaks usually after a strong uptrend, the left and right peak should have a similar height (shoulders), the middle peak (head) has to be the highest or this can not be a HS pattern . They should seem triangular in appearance but as long as it fits the main characteristics can still be a valid pattern. Volume usually paints the same pattern with the 3 peaks, strong volume on breakout increases success rate. Here are the main characteristics: • VOLUME MIMICS PATTERN • 3 PEAKS, LEFT & RIGHT SIMILAR HEIGHT • TRIANGULAR IN APPEARANCE • FOUND AFTER UPTREND • HIGH SUCCESS RATE • CAN BE SLANTED 4. Pattern Failure / Fakeout Click the same idea below and press PLAY to see a Head & Shoulders pattern failing. Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout. Pictured in the infographics in the post is a normal breakout on a Head And Shoulders Pattern while the right example shows Pattern Failure on the same pattern. Note how in the second example markedi n green the price actually comes back inside the "neckline" of the Head and Shoulders - signifying the potential of the pattern to fail the downwards breakout and head upwards instead. If you revisit my Head & Shoulders idea, and press the Play button, you will see that the Head & Shoulders actually bounced off the 11200$ level before Bitcoins approach to $25,000, this was a great example of pattern failure. Pattern failure can also be considered a Liquidity Grab or can be referred to as a “Fake Out”. Traders & Institutions with extremely large order sizes cannot just enter the market like the retail traders. Liquidity needs to be found and that is why it is quite common for the market to “stop hunt” before major moves. That is why sometimes it can be considered the best option to "Enter where your invalidation point is". So now that you understand the key characteristics of this fractal, lets compare the similarities: 1. We have the creation of the Orderblock support area described above, followed by a formation of the Bull Pennant pattern. 2. Overview chart, here on the chart each respective similarity is marked on the chart. Note the Head and Shoulders marked, i will now show two further charts zoomed in showing the similarities. 3. The first fractal, zoomed in. You can clearly see the Orderblock support, the fakeout downwards out of the Bull Pennant and the Failure of the Head and Shoulders pattern before Bitcoin moved from $24,000 to $28,000. 4. The second potential fractal, zoomed in. You can clearly see the Orderblock support, the fakeout downwards out of the Bull Penannt and the Failure of the Head and Shoulders pattern, this could be a potential sign that the trend is going to repeat itself. 5. In this image we will compare the Bull Pennant itself and you can see how we can measure the pattern to get a potential price target. 6. This image shows the bull pennant hitting target 7. In this image you can see the newly formed Bull Pennant, the similarities in Price Action and how i have used this pattern to get a potential measurement. So lets see where this takes us. Pretty interesting right? But we have to remember one important thing: This fractal or any form of Technical Analysis is not a guarantee that something has a 100% certainty of happening - it is simply a way for us to measure risk, targets and spot the ideal entry and exit points of the market, So it is best to use risk management & have a basic plan or area where you consider your trade wrong, and place stop losses beneath this area or manually close the trade. So noting that, these two last charts are showing the price action I am looking for currently. So we are looking for Bitcoin to respect the range support located at 26750-26420 before another upwards thrust. Just like we did on the first fractal. 1. This is my ideal situation, where we continue up trending then have one last "shakeout" at the last stand support area which would make an amazing entry (marked in green) to catch the potential continued bullish momentum of Bitcoin. We will need to break out of resistance at 28400 and also confirm support above this area, watch out for potential fake outs above this area.. many people can easily be trapped when buying resistance breakouts which is we are looking to enter after the SHAKEOUT and take profit earlier. 2. This is the worst case scenario, where we see Bitcoin CONFIRM its downtrend by rejecting off the key support area, marked in red. Key Support Areas - 26750-26420 | 25930-25612 (If we lose 26512 and reject off this area then we could see the Shakeout, or potentially a larger downtrend) I hope you enjoyed the analysis. Learning to trade patterns such as these can provide great opportunities if you understand price action and how to identify the key areas of the pattern that other traders and investors may be focusing on too, these areas become important psychological levels on the chart and you can see price react to these areas. I hope you have found this idea insightful, if you did you can show your appreciation by Liking & Commenting, thank you traders!
Long
by Worth_The_Ri5k
4
ICICIGI - Bull Flag/Pennant - Short Term SwingThe above analysis is based purely on price action & chart patterns. The analysis is done on 60 min TF, hence it may take price to reach the targets in few days to few weeks. Trade setup along with Entry levels + SL & Targets are given in image itself. Traders must do their own study before entering into any trade. They must trade with their own money & risk management. Feel Free to comment for any suggestion or query regarding price action analysis. Checkout my other ideas/charts to understand how chart pattern & price action works.
NSE:ICICIGILong
by AdityaKarn90
Bullish Pennant or an Ascending Triangle for Bitcoin?It appears as though the consolidation at ATH's is forming a Bullish Pennant, or, potentially an Ascending Triangle. I am leaning towards an Ascending Triangle because the horizontal blue resistance has rejected BTC numerous times during this consolidation period, but the price keeps testing that resistance, and the more a trend-line is tested the more likely the price is going to break in that direction, whether that's to the upside or downside, it works both ways from my experience! We could be seeing a rather large bear flag after a blow-off top, the RSI is trading in a multi-month descending triangle displaying lower high after lower high, meanwhile, the price has increased with several deviations on the RSI regarding lower highs. KST is showing a bullish cross where I have the blue finger, you will need to zoom in for better visualization.
COINBASE:BTCUSD
by ScotianBot
DHANUKA - Rounding bottom + Bull Flag/Pennant - SwingThis analysis is done purely on basis of price action and chart patterns. The analysis is done on Daily TF hence it can take couple of days to couple of weeks to reach the target. Logic, Entry range, SL and Target is shown in image itself. Reasons for stock selection & going long in this stock - Debt free company, Good performance, posted highest revenue/profit in Sept Quarter and Q3 is also expected to be good. (Buy on rumors & sell on news strategy) This analysis is for study purpose. Traders must do their own study before entering into any trade. Traders should trade with their own risk capacity and money management. Feel Free to comment for any query or suggestion regarding this stock or Price Action Analysis Check below another idea of BALMLAWRIE for another example of Rounding Bottom Pattern
NSE:DHANUKALong
by AdityaKarn90
NEA - Bullish Pennant in Formation I believe that there is a great buying opportunity in NEA, as it has been forming a clear Bullish Pennant since the end of August. It is clearly a continuation pattern and has been consolidating within this pennant. If Price Breaks this pennant with High Volume, this may be a sign that Price may continue pumping up with force and reach the (Resistance 2 - Zone) nearly $3.10 with a potential gain of nearly 32%. Price may even hit the Strong Resistance Zone of nearly $3.90, which may provide a gain of 62%. I believe this is a great medium term buying buying opportunity. Please note these are my own notes, by no means trading advice. Please do your own research before entering into any trade.
NLong
by AsimMirzaTrader
2
LONG ETHEREUM WHILE YOU CAN$ETH being one of the large caps cryptocurrencies is approaching a new high as it breaks daily diagonal resistance (white) at $570, after which it accumulated ( rectangle) below pulling a leg up to $620, and presently in another accumulation phase. There is a bullish pennant forming $620 and $680 range which if broken should give room for another leg up to $750. N.B The latter part of this analysis will only be possible if BITCOIN settles above $21,000 for the next few weeks.
Long
by Cryptocribhq
Time to enter AMZN?For the last 3 months we've been watching AMZN coiling. Day traders have found ways to buy puts and calls at major resistance and support lines. However, most of us have found it frustrating trying to find direction. The pattern that I currently see forming is the bullish pennant. AMZN has constantly found it hard to move past the $3200 the past few weeks and if it has, dropping again intraday unable to hold that level. The bright side is that it has found strong support at $3065 which has held the channel that it seems to have formed. Going forward two things could happen: (Bear in mind, vaccine and stimulus news are directing the winds and anything is possible) 1. AMZN could retest the $3200 wall. Watch for a breakout as it is very likely possible, most probably taking us back to the 52-week high. 2. Another drop to the $3065 level (and I do think this will happen). This time, we need to see if this holds. If it breaks, we could spiral down. If it holds, it is time to buy, for a breakout is imminent, confirming the bullish pennant pattern. Trade responsibly!
NASDAQ:AMZNLong
by UnknownUnicorn10016235
XRPUSD - POSSIBLE SCENARIO'S - LONG XRPUSD(UPDATE)Hello traders, I am extremely bullish at the moment. My previous idea's were followed perfectly, now I have 2 possible scenario's that I see. The bullish divergence on the RSI give me extra confirmation for a possible next bull run. Scenario 1: Bullish Pennant, XRPUSD has been making lower highs and higher lows, this indicates a bullish pennant pattern in which XRPUSD will break out to the upside and retest the .67-.70 resistance level. If it breaks this, I expect to hit 1.80-2.00 dollars soon. Again, bullish divergence on the RSI gives extra confirmation. Scenario 2: Wyckoff accumulation, this is in my opinion the most likely scenario, I still see a gap that could be closed by retesting the 0.45 support line. After this support level is tested and the market has shaken off panic sellers, I expect a run to 1.80-2.00 dollars soon. And it will not break 0.45 support line in my opinion. Fundamental confirmations: BTC is around it's ATH, back in 2017, the news was hyping the bull run, everyone wanted to buy at the top, that makes it a top, when your average Joe starts buying crypto, you know it's time to sell. There is no media hype like back in 2017 at the moment, this means that institutions and whales are buying cryptocurrencies, which indicate we have a much higher way to go. PS: DO NOT look at the time frames to base your expectations on, I can not predict time frames, I only indicate the patterns en possibilities I see. Most importantly, I do NOT have a glass ball, I could be completely wrong so do your own due diligence before entering a trade and do not trade based on my expectations. I do not trade, I just hold. GOOD LUCK!
BITSTAMP:XRPUSDLong
by Patralis
1