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Ascending Triangle or Head & Shoulders?On the RSI there's a H&S patter so visible if I need to draw it I'm not sure you're familiar with a Head & Shoulders pattern. What Is A Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. Key Takeaways A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. A head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. What Does The Death Cross Tell You? The death cross occurs when a short-term moving average (typically 50-day SMA ) crosses over a major long-term moving average (typically 200-day SMA ) to the downside and is interpreted by analysts and traders as signaling a definitive bear turn in a market. The opposite of the death cross occurs with the appearance of the golden cross, when the short-term moving average of a stock or index moves above the long-term moving average. Many investors view this pattern as a bullish indicator. The golden cross pattern typically shows up after a prolonged downtrend has run out of momentum. As is true with the death cross, investors should confirm the trend reversal after several days or weeks of price movement in the new direction. Much of the process of investing by following patterns is self-fulfilling behavior, as trading volumes increase with the attention of more investors who are driven in part by an increase in financial news stories abut a particular stock or the movement of an index. Limitations Of Using The Death Cross All indicators are “lagging,” and no indicator can truly predict the future. Once & while a death cross can produce a false signal, and a trader placing a short at that time would be in some near-term trouble. Despite its apparent predictive power in forecasting prior large bear markets, death crosses also do regularly produce false signals. Therefore, a death cross should always be confirmed with other signals and indicators before putting on a trade.
TSX:CRON
by ScotianBot
The Difference Between A Death Cross And A Golden Cross?What Does The Death Cross Tell You? The death cross occurs when a short-term moving average (typically 50-day SMA) crosses over a major long-term moving average (typically 200-day SMA) to the downside and is interpreted by analysts and traders as signaling a definitive bear turn in a market. The opposite of the death cross occurs with the appearance of the golden cross, when the short-term moving average of a stock or index moves above the long-term moving average. Many investors view this pattern as a bullish indicator. The golden cross pattern typically shows up after a prolonged downtrend has run out of momentum. As is true with the death cross, investors should confirm the trend reversal after several days or weeks of price movement in the new direction. Much of the process of investing by following patterns is self-fulfilling behavior, as trading volumes increase with the attention of more investors who are driven in part by an increase in financial news stories abut a particular stock or the movement of an index. Limitations Of Using The Death Cross All indicators are “lagging,” and no indicator can truly predict the future. Once & while a death cross can produce a false signal, and a trader placing a short at that time would be in some near-term trouble. Despite its apparent predictive power in forecasting prior large bear markets, death crosses also do regularly produce false signals. Therefore, a death cross should always be confirmed with other signals and indicators before putting on a trade.
TSX:WEED
by ScotianBot
Macro Ascending Triangle & Triple Bottom?It appears as though TNY may be trading in a huge ascending triangle on a 4-year chart. Recently the RSI went to all-time lows, and since then we've seen a nice Triple Bottom & some bullish momentum. Notice where I've placed the blue sideways arrows, there are three bottoms that coincide with a price range of roughly 23c in March 2017. Again in late July & Aug 2017 at approximately the same price range. And more recently we found a low of roughly 18.5c, which could potentially represent the third bottom of the Triple Bottom. We can see on this chart that there was a Triple Bottom that happened in late 2016 until late 2017, I have three blue arrows inside of a descending triangle patten that represent what I am refrencing. A triple bottom is a visual pattern that shows the buyers (bulls) taking control of the price action from the sellers (bears). A triple bottom is generally seen as three roughly equal lows bouncing off support followed by the price action breaching resistance. The formation of triple bottom is seen as an opportunity to enter a bullish position. There should be an existing downtrend in place before the pattern occurs. The three lows should be roughly equal in price and spaced out from each other. While the price doesn't have to be exactly equal, it should be reasonably close to the same price, such that a trendline is horizontal. The volume should drop throughout the pattern in a sign that bears are losing strength, while bullish volume should increase as the price breaks through the final resistance.
CSE:TNYLong
by ScotianBot
Triple Bottom on the RSI? Inverse Head & Shoulder?Since Tinley has broken down from a Descending Triangle / Bearish Flag pattern, which outlined in dark red, it appears as though Tinley may have created a Triple Bottom on the RSI. It looks like an Inverted Head & Shoulders where I have the Blue arrow pointing sideways on the RSI, and at the same time could be a Triple Bottom if there's continued bullish momentum. The bottom of the descending triangle pattern is where I expect to see a potential bounce 2, if Tinley can release any substantial news there's merit for bullish price movement back into the pattern or slicing through it like butter. I expect to see rejection or some heavy resistance preventing Tinley from breaking above were the Green arrow ends upward. The RSI is so oversold on a 1 year chart it's hard not to consider this a screaming buy with blood on the streets, especially considering pending news announcements that could be quite significant in terms of shaping the company's direction going forward. On a 1 month chart TNY bounced off the 200 Day MA & is currently trading above it.
CSE:TNYLong
by ScotianBot
Dixie Brands Descending Triangle Pattern#DIXI.U - Dixie Brands closed Friday below a descending triangle support line(lower orange line), which up until Friday had been propping price up as traders had previously been holding above $0.135 which is where the lower triangle line is drawn. A descending triangle is a bearish chart pattern that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that downward momentum is building and a breakdown in price is possible. Descending triangles are a popular chart pattern among traders because they show that the demand for a stock is weakening. When price breaks below lower support, it is an indication that downside momentum is likely to continue. Dixie price is now below the lower triangle line which is a bearish indication, but when trend-trading 2-3 days below a support line is needed before it can be considered confirmation of loss of price support and continuation of the downtrend. While price closed below the lower triangle line on Friday, traders also created a long, lower price candle wick which indicates that as bearish traders attempted to push price lower, bulls stepped in and kept price near the upper end of the daily trading range. Usually when you see long wicks near the top of an uptrend or bottom of a downtrend, it indicates that a top or bottom in price is attempting to be made, respectively. The decline in Dixie price over the past few months can mainly be attributed to overall sector weakness as the entire cannabis sector has been on a decline since mid-2019, and this is a sector that mostly follows the top market cap cannabis stocks, namely Canopy Growth Corp. The recent stock market sell-off hasn't helped the sector either as traders have been reluctant to buy much of anything over Covid19 fears and its affect on global supply chains. If you're a long-term holder of Dixie, the name of the game is to add at these low levels and lower your cost average. If you're a trader, a long entry can be made here in anticipation of a global market reversal early this week due to the oversold nature of most markets right now. Short-term trader stop-losses should be placed just below Fridays wick, or just under the $0.10c level. A breach of that level would likely indicate further downside in price.
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by PrepForProfit
Is Hexo trading in another descending triangle / bear flag?I am dubious as to why Hexo doesn't have cannabis beverages on shelves in Quebec where "only" Hash & Cannabis Beverages are allowed as 2.0 products, or elsewhere in Canada when they have a Alcohol company like Molson backing them & involved in a JV via Truss? I just don't see why this pattern would play out bullishly when the company is diluting shareholders & raising money below the trading price? Does Hexo have a trick up their sleeve that will surprise the market besides overpaying for the Newstrike Brands buyout & growing unlicensed Cannabis, I think so, but it's not a surprise for the Hopium addicts, be prepared for more disappointment as Hexo slowly bleeds into the penny stock range where they started & belong! The 200 Day MA doesn't want to let Hexo break above it, very note worthy as the RSI looks like a H&S & Hexo has created nothing but lower lows since my previous chart linked to this one.
TSX:TLRYShort
by ScotianBot
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Ascending Triangle, is Canopy trading in a hidden pattern?There's also merit for a another Inverse H&S to play out here, after a few more trading days next week we may see the shoulder continue to develop or a retest of the bottom upward sloping line of the Ascending Triangle, which would also negate the inverse H&S narrative, but the bottom of the ascending triangle could still hold & result in a bullish outcome, keep in mind these patterns have a tendency to finish roughly 70% to 80% way through the pattern in either direction frequently. Key Takeaways An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends An inverse head and shoulders pattern, upon completion, signals a bull market Investors typically enter into a long position when the price rises above the resistance of the neckline. An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming. Key Takeaways The trendlines of a triangle need to run along at least two swing highs and two swing lows. Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
TSX:WEED
by ScotianBot
NBEV bounced off the 200 Day MA strong.Does this potentially indicate a bottom for NBEV? There's a nice rounding bottom that may form a cup & handle A cup and handle price pattern on bar charts 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 continuation pattern and is used to identify buying opportunities. Traders should place a stop buy order slightly above the upper trend line of the handle. It is worth considering the following when detecting cup and handle patterns: Length - Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with a sharp "V" bottoms. Depth - Ideally, the cup should not be overly deep. Avoid handles that are overly deep also, 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 base of the bowl; it should then increase when the stock begins to make its move higher, back up to test the previous high. A retest of previous resistance is not required to touch or come within several ticks of the old high; however, the further the top of the handle is away from the highs, the more significant the breakout needs to be. The RSI is high on all time frames except on a 5 year chart attached to this one you can notice the RSI is around a 46 which is kinda neutral, it's approaching an area where there's been some moderate resistance, but the RSI has risen to a 94 on the 5 year chart & it's stayed in the high 70s for the 2016, 2017 & 2018 bull run. It's interesting that they've recently launched a CBD Hemp beverage in Japan.
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by ScotianBot
Descending Triangle.This is the "exact" same chart from the other day but on a 6 month line chart; which only shows the daily "closing price" as opposed to the 1 year time frame candle chart I posted on Feb 6th which shows more trades. Notice where the rejection point came into play on Canopy's parabolic price move on Friday? The downward sloping trendline of the descending triangle seems to be in play, and the sell volume seems incredibly bearish. Every time Canopy's RSI gets this high we see a dump in the share price as well. The neckline area of the Inverse Head & Shoulders pattern which called the temporary bottom seems to be holding as support for the time being, interesting.
TSX:WEED
by ScotianBot