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Ending Diagonal

BTCUSDT Correction development scenario of bear market terminusBTC just made a pullback to neckline of the major Head and Shoulders formation on macro. Now, the price action is abandoning the distributive structure with weak volume, due to a micro H&S. Points of interest We can see on this chart levels to be watch in a potential swing downward. BTC has been trading in a choppy structure, consolidating within a ending diagonal. The potential drawdown till FEB close tends to be form a monthly bearish Harami candlestick pattern, which is highly reliable on higher timeframes. This pattern can be consider highly reliable. A Harami bearish just play out on the last weekly close (1W) and tends to be form on 1M, in which is a rare case. In bear markets, this pattern is an important reversal signal after a rally of relief, indicating an intermediary point for an 2nd and final swing leg-down. On this chart, you can see that the potential throw-over of actual consolidation (choppy structure / breakout of Harami) is in confluence w/ a expected final swing leg-down of an expanding ending diagonal.
Short
by firmestudio
3
AUDUSD Remains Bearish Despite Hawkish RBAMarkets are slow, they did not change much for the last sessions. Well, the only mover of the Asian session is AUD which found support at rallied after RBA hiked from 3.10% to 3.35% as expected. More important RBA mentioned that further hikes will be needed to bring down inflation, which is not a surprise after a latest jump in CPI figures. But despite the hawkish policy, AUDUSD did not gain that much, so I still think that further potential weakness on the pair can show up, but mostly because of USD domination after reversals last week. From an Elliott wave perspective, we see nice and clear five waves down, so more weakness will be expected after A-B-C. Nice resistance can be at 0.7-0.705.  We talked about aussie yesterday in LIVE WEBINAR here on tradingview. For recording CLICK HERE www.tradingview.com
Short
by ew-forecast
1
DAO Is Searching For The Strong SupportCryptocurrency DAO Maker is trading bearish for the last year, but the wave structure looks like an A-B-C corrective decline that can be slowly coming to an end, ideally at the end of 2022 or beginning of 2023. From Elliott wave perspective we are already tracking a motive wave C, which should be completed by a five-wave cycle of the lower degree. In this case as an ending diagonal (wedge) formation, where final wave (5) of C can be now in play. Technically speaking, we believe that strong support may not be far away, probably here at the yearly lows, here around 1.0 level or maybe slightly lower. There's also a chance for a spike down before we will see a bullish reversal, just keep in mind that first bullish evidence is only in case if we see sharp or impulsive rebound back above 2.55 region. All the best!
Long
by ew-forecast
2
LINKUSDT Exiting Ending Diagonal from the last impulsive wavePrice action, based on Elliot Waves principles, is falling from peak after complete an Ending Diagonal from the last extended impulsive wave to a potential target at local demand in hourly timeframe in a possible 78,6% retrace as shown on AB=CD pattern, below volume POC and after reject Anchored VWAP from May '22 bottom. Consolidating in a parallel channel as shown within a modified Schiff Pitchfork. Potential swing-downward in a corrective wave target to Dec '22 low re-test. Monthly Inside Bar zone.
Short
by firmestudio
1
bullish and bearish cup and handle pattern hello dear traders, Here are some educational chart patterns that you must know in 2022 and 2025. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. What are the Cup and Handle chart patterns? A cup and handle pattern is a pattern of price movement on a trading chart that resembles a cup with a handle, from which it derives its name. The cup section of the pattern is formed from a U-shaped price movement, while the handle is a short price channel from the edge of the cup. The handle is actually a pullback after the right Swing of the cup. As is the case with other chart patterns, the cup and handle pattern shows you how the price has moved in the immediate past, which can help you predict future price movements. The time it takes for pattern formation varies: pattern formation can be as short as seven weeks or as long as 65 weeks or more. There are two types of patterns: the more popular bullish cup and handle pattern that you can see in bull markets and the inverted cup and handle pattern, also known as the bearish cup and handle pattern, that you can see in bear markets. In the bullish variant, which occurs in an uptrend, the pattern is formed by a downswing (pullback) that gradually turns into an upswing (in the trend direction) followed by a small pullback (a slight downward drift that creates a handle ) The reversal/bearish type, which appears in a downtrend, is formed by an upswing (pullback) that gradually turns into a downswing to continue the downtrend, but then pulls back (handle) a bit. Understanding the structure and inversion of the cup and handle pattern The cup and handle pattern can form in any time frame, but as a swing trader, you should focus on the daily time frame. To identify the cup and handle pattern or reversal type, you need to understand the price movements that form its structure. For example, to be a continuation pattern, there must be a prior trend before a cup and handle pattern can form. Let us look at both patterns one by one. The bullish Cup and Handle pattern:- An uptrend: For a bullish cup and handle pattern to form, there must be an established uptrend, but the trend must not be too mature because the more mature the trend, the less likely it is to continue. A trend on the daily time frame that is a few months old is fine. Cup: The cup is formed from a normal bust that gradually curves upward, creating a "U" shape. It should have a bowl or round bottom and not a sharp "V" shaped bottom. The round bottom ensures that there is a consolidation pattern with valid support at the bottom of the "U" cup. In addition, the pattern on both sides of the cup should be of equal height, but this may not always be the case. Cup depth: The cup should not be too deep. Generally, the cup depth should be around the 38.2% Fibonacci retracement of the previous advance. However, with overreaction in more volatile markets, retracements can range from 38.3% to 50% Fibonacci. In extreme cases, the retracement can reach 61.8% Fibonacci, which is in line with Dow Theory. Handle: This is a pullback that forms after the higher forms on the right side of the cup. This is a minor pullback or consolidation that sometimes resembles a downward-sloping flag or pennant. This is just a small, final consolidation/pullback before a bigger breakout, but could lead to a retracement to the 38.2% Fibonacci retracement of the swing high of the cup. The smaller the retracement, the more bullish the formation and the more significant the breakout. Duration: While the cup can last from 1 to 6 months (or several years on a weekly chart), the handle can take about 1-4 weeks to form. The bearish/inverse Cup and Handle pattern:- A downtrend (bear market): There must be an established downtrend for the inverted Cup and Handle pattern to be meaningful. However, the trend should be relatively young as downtrends don’t last that much. On the daily timeframe, the trend should be from a few weeks to a few months. The dome (inverted cup): The dome of this pattern is formed by a normal price rally in a downtrend (pullback), which gradually turns to a downward swing, thereby forming a dome shape. It should have a rounding top and not a sharp pyramid top. A rounding top ensures that the inverted cup is a consolidation pattern with valid resistance at the top of the structure. Both sides of the dome may or may not have equal lows. Dome height: The dome should not be too high. Usually, the height should be about 38.2% Fibonacci retracement of the preceding downswing, but the retracement could range from 38.3% to 50% Fibonacci in more volatile markets with over-reactions. In extreme situations, it could be up to 61.8% Fibonacci. The handle: This is a slight pullback that follows the downswing that forms the right side of the dome. It is a small consolidation that often looks like a bearish flag or pennant that slopes upward. The handle can retrace up to 38.2% Fibonacci of the dome’s swing down, but the smaller the retracement, the more bearish the formation and the more significant the breakout. Duration: The dome may take about 4 to 6 weeks or more to form, while the handle may take about a week or two. How to trade the Cup and Handle chart pattern:- The Cup and Handle pattern and the inverse type are potent trend continuation signals. When you see any of them, you have to trade in the direction of the trend. While you can trade these price action chart patterns on their own, it may be wise to confirm the trend with some tools, like trend lines and moving averages. Trading the bullish Cup and Handle pattern:- The bullish Cup and Handle pattern forms an uptrend and gives a bullish breakout signal. You might have to fix an uptrend line or a moving average to confirm the trend. Here is how you trade the pattern: Entry:- With this pattern, a buy signal occurs when the price breaks out of the upper trend line of the price channel that forms the handle. There should be a substantial increase in volume on the breakout above the handle’s resistance. Go long at the close of the breakout candlestick. Alternatively, you place a stop-buy order slightly above that upper trend line. Sometimes, it is prudent to wait for a breakout above the resistance line established by the highs of the cup. Stop loss:- You need a stop-loss order to get you out of the trade if after buying the breakout, the price drops, instead of rising. Your stop loss should be at a level that invalidates the pattern’s signal, and that level is below the lowest point of the handle. Profit target:- There are two potential profit target levels for this pattern. The first profit target is estimated by measuring a distance equivalent to the size of the handle, starting from the breakout point. The second profit target is estimated by measuring a distance equal to the depth of the cup, again, starting from the point of the breakout. Trading the bearish Cup and Handle pattern:- The bearish Cup and Handle pattern forms a downtrend and is traded as a bearish breakdown signal. So, you can use it to go short on the market if you want. This is how you trade the pattern: Entry:- You have a sell signal when the price breaks below the lower trend line of the price channel that forms the handle. There should be a spike in volume when this breakdown happens. You may go short at the close of the breakdown candlestick, or you place a stop-sell order slightly below that lower trend line. It might be wise to wait for a break below the support line established by the lows of the inverted cup. Stop loss:- When you are trading the inverse Cup and Handle pattern, you should place your stop loss order above the highest point of the handle. Profit target:- Two potential levels are good for your profit target: the first profit level is estimated by measuring a distance equal to the size of the handle, starting from the breakdown point, while the second profit level is estimated by measuring a distance equal to the height of the dome (inverted cup), starting from the point of the breakdown. Trade with care If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
Education
by CryptoSanders9563
2
B | Wave Projection | TFW Bullish Divergence | Ending Diagonal?Price action and chart pattern - descending triangle with a bullish divergence pattern in weekly timeframe is considered a strong reversal trading signal. Wave projection: A possible 5 wave of major A-wave correction coming forming an ending diagonal wave targeting 0.5 - 0.618 fibonanci extension of previous 3-wave downtrend. Entry: Descending triangle breakout / SMA200W zone Stop: Lower triangle support -12%-15% Target: 0.382 - 0.5 retracement of current downtrend A-wave +40% - 50% Risk reward ratio: 3:1 Always trading with affordable risk and respect your stoploss Good Luck
BLong
by dukeposh
Bitcoin Making A Wedge Pattern: Elliott Wave AnalysisBTCUSD is trading at strong monthly support zone, but on a daily basis, it can still be pointing lower within the final 5th wave that can be forming an ending diagonal (wedge) pattern. We see it currently trading in subwave 4 correction, testing that June lows as a resistance from where we can see another and final decline for wave 5 of (5) with room towards 14k-12k area. Any earlier rebound and rally back above 21500 level might be signal for a completed 5th wave. It appears that bitcoin can see some nice turn up in 2023. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
COINBASE:BTCUSD
by ew-forecast
8
ADAUSD | Wave Analysis | Giant Bull Flag Ending Diagonal +60%Price action and chart pattern trading > A possible ending diagonal minor 5-wave with a bull flag pattern as well as RSI bullish divergence > An upcoming reversal supported by a strong harmonic pattern - bullish deep crab squeezed below EMA20D - Entry point zone > Target TP1 @ Upper bull flag resistance zone +30% and TP2 @ X2 of Bull Flag EMA200D zone +60% > Stop Zone @ lower support of bull flag -10-15% > Risk reward ratio: 2:1 and 3:1 for short-medium term trade Always trade with affordable risk and respect your stoploss, nothing 100%
COINBASE:ADAUSDLong
by dukeposh
4
EURJPY- Wedge Resistance At 150EURJPY is back a the highs as expected, as we talked about in our past updates when recognizing a wave (B) retracement which belongs to a higher degree wave 5 of an ending diagonal. An ending diagonal is a special type of reversal pattern that occurs at the end of the trend. It has a wedge shape which suggests that despite higher prices bulls are not that strong anymore. As such, we should be aware of a limited upside here at the upper line. If it holds, and the price turns back to 140 in weeks ahead, then we think that an important bearish reversal will unfold.
by ew-forecast
Crude Oil Remains BullishHello traders, today we want to update our Crude oil chart compared to USDMXN currency pair from October 06. As you can see, Crude oil remains nicely bullish after we spotted a bullish reversal out of the wedge pattern. At the same time USDMXN pair is breaking out of bigger bearish wave B triangle pattern. Well, Crude oil is now trying to continue higher within wave C/3 at least up to 97-98 area for wave C if not even higher above 100 for wave 3. In the meantime USDMXN could easily stay in the downtrend within wave C with room even down to 18-17 area. What we want to say is that Crude oil can easily stay up, while USDMXN pair can face even more weakness, just be aware of short-term pullbacks. Trade well!
TVC:USOIL
by ew-forecast
Bitcoin Breaking The Channel SupportBTCUSD is coming sharply down in the 4-hour chart and seems like it's going to retest June lows within 5th wave after the recent complex corrective structure in wave 4. So, watch out for more weakness towards 17k-12k area, but maybe within a slower price action as part of the ending diagonal pattern for wave 5, unless it alternatively stays sideways within wave 4 bearish triangle formation. On the hourly chart, we can also see five waves down from 20.600 resistance area, which suggests more downside in the near future, after any short-term rally.
BITSTAMP:BTCUSD
by ew-forecast
9
Crude Oil Can Be Turning Back To Bullish ModeCrude oil has been trading south for the last couple of months, but the price action is not so strongly bearish anymore and the wave structure is getting overlapped. It means that Crude oil is running out of steam within an ending diagonal (wedge) shape. Well, with current break out of that wedge pattern and with recovery above the upper ending diagonal line, seems like Crude oil found the support. However, from technical point of view keep in mind that bulls can be confirmed only above 97.50 region. One of the main reasons why Crude oil can be supportive is bearish USDMXN as they are in negative correlation. Looking at the USDMXN daily chart we can see it clearly bearish, currently finishing a big bearish triangle formation within wave B. So, it can send the price even lower within wave C towards February 2020 pandemic lows. Respecting the price action from technical point of view and wave structure from Elliott wave perspective, seems like USDMXN will face more weakness, while Crude oil may start recovering in an impulsive fashion. Happy trading!
TVC:USOILLong
by ew-forecast
4