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CADJPY Analysis: Potential Shorting Oppoturnity! Gartley PatternCADJPY is currently rebounding from a significant weekly resistance level. Upon closer examination of the daily timeframe, a Break of Structure to the downside is evident. Additionally, a well-defined Harmonic Gartley pattern is taking shape, with the completion of the D leg aligning with the 4-hour Order Block. Anticipate a potential downward movement from the identified 4-hour Order Block, as highlighted on the chart. Exercise patience and wait for a change of character in lower timeframes, such as the 15-minute or 30-minute intervals, as the lower timeframes still exhibit a bullish sentiment. Wishing you success in your trades!
Short
by Koolermactrez
1
AB ⚡️ CD — Harmonic Patterns 🟣The AB⚡️CD pattern is a highly effective tool utilized in trading to identify potential opportunities across diverse markets, including forex, stocks, cryptocurrencies, and futures. 💜 If you appreciate our guides, support us with boost button 💜 This pattern takes the form of a visual and geometric arrangement, characterized by three consecutive price swings or trends. When observed on a price chart, the ABCD pattern exhibits a striking resemblance to a lightning bolt ⚡️ or a distinctive zig-zag pattern. Importance of the ABCD Pattern The significance of the ABCD pattern lies in its ability to identify trading opportunities across different markets, timeframes, and market conditions. Whether the market is bullish, bearish, or range-bound, the ABCD pattern remains a reliable tool. By recognizing the completion of the pattern at point D, you can get a perspective trade entries. Furthermore, the ABCD pattern helps you determine the risk-to-reward ratio before initiating a trade. When multiple patterns converge within the same timeframe or across different timeframes, it strengthens the trade signal and increases the likelihood of a profitable outcome. Finding an ABCD Pattern The ABCD pattern has both a bullish and bearish version. Bullish patterns indicate higher probability opportunities to buy or go long, while bearish patterns suggest opportunities to sell or go short. To identify an ABCD pattern, it is essential to locate significant highs or lows on a price chart, represented by points A, B, C, and D. These points define the three consecutive price swings or legs of the pattern: the AB leg, the BC leg, and the CD leg. Trading is not an exact science, so traders often employ Fibonacci ratios to determine the relationship between the AB and CD legs in terms of both time and price. This approximation assists in locating the potential completion of the ABCD pattern. When patterns converge, it increases the probability of successful trades and enables you to make more accurate decisions regarding entries and exits. Types of ABCD Patterns There are three types of ABCD patterns, each having both a bullish and bearish version. To validate an ABCD pattern, specific criteria and characteristics must be met. Here are the characteristics of the bullish and bearish ABCD patterns: 📈 Bullish ABCD Pattern Characteristics (buy at point D): To effectively trade the bullish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant high and point B as a significant low. During the move from A to B, ensure that there are no highs above point A and no lows below point B. 2. After AB, then find BC: Point C should be lower than point A. In the move from B up to C, there should be no lows below point B and no highs above point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be lower than point B, indicating that the market has successfully achieved a new low. During the move from C down to D, there should be no highs above point C. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 📉 Bearish ABCD Pattern Characteristics (sell at point D): To effectively trade the bearish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant low and point B as a significant high. During the move from A up to B, ensure that there are no lows below point A and no highs above point B. 2. After AB, then find BC: Point C should be higher than point A. In the move from B down to C, there should be no highs above point B and no lows below point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be higher than point B, indicating that the market has successfully achieved a new high. During the move from C up to D, there should be no lows below point C and no highs above point D. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging bars/candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging bars/candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 💜 We're eager to hear from you! ⚡️Did the ABCD pattern article hit the mark for you? We're all about delivering content that's useful and easy for traders like yourself. Your feedback means a lot—it guides us in enhancing our articles to better serve you. Take a moment to let us know what you think. Did we cover the topic thoroughly? Were our explanations crystal clear? Is there something you wish we'd delve into more? Your time and thoughts are truly appreciated. Thanks for being a cherished reader, and we can't wait to hear your feedback!
Education
by Vestinda
6
Gold Short SuggestionFor those that know me, you know I love a harmonic pattern. Here is a potential set up for gold shorting. If it turns round from here then I will trade to D, and then trade the pattern as per this picture. If it breaks the price on the close of day candle then I will delete this bat I understand that this is a scary picture. But if you go and look at the DXY you will see that it is at the bottom of a bullish trend. What could cause such drastic moves? well, I'm not a psychic, sadly. All I do is show analysis. Hope you all have a lovely weekend. Stay safe.
FXOPEN:XAUUSDShort
by BATZ-RULE
Crypto101 - Trading Harmonic Bats 🦇Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 A quick masterclass video today on bullish and bearish Harmonic Bat Patterns. How to use them, how to determine the entry point, where to place stop loss and also setting up 3 take profits points for shorts and longs. Interested in altcoins that could go parabolic during the next bullish cycle? Please scroll through our page, I've been focusing on Altcoins that are trading in their macro accumulation phase - this is when the Fibonacci Retracement is pulled up from the FIRST ATH to the lowest LOW afterwards, and extended to the right. All of these alts are trading between 0 and 0.236 , which make them excellent choices for low risk high reward setups. Have a great weekend, the charts will be here on Monday 🥂 _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
by CryptoCheck-
40
Technical Analysis of GBP/USD - Bearish Crab PatternHello traders, I would like to do detailed technical analysis of GBP/USD currency pair and the potential presence of a bearish crab pattern. The bearish crab pattern is a harmonic chart pattern used by traders to identify potential reversal (correction) points in the market. Let's examine the key aspects of this pattern in GBP/USD, including the retracement levels and extension ratios. Bearish Crab Pattern Overview: The bearish crab pattern is a reversal pattern that typically forms after a strong bullish trend. It consists of four key points: XA, AB, BC, and CD. In the context of GBP/USD, the pattern has the following characteristics: 1. AB retraced XA by 0.598: The first part of the crab pattern is the AB leg, which retraced the XA leg by 0.598. This retracement level indicates a moderate pullback after a strong initial move. 2. BC retraced AB by 0.799: The BC leg of the pattern retraced the AB leg by 0.799. This level of retracement is deeper than the typical Fibonacci retracements, suggesting a more substantial correction. 3. CD is an extension of BC by 3.172: The CD leg is an extension of the BC leg by a ratio of 3.172. This means that the final leg of the pattern extends significantly beyond the BC leg. A 3.172 extension is a common feature of the bearish crab pattern and signals that the reversal is likely to be strong. 4. CD terminates at 1.24285: The CD leg terminates at the price level of 1.24285. This is a crucial point for traders, as it is where the pattern suggests a potential reversal in the GBP/USD pair. Technical Analysis and Implications: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics is a bearish signal. I will be considering the following implications: 1. Reversal Signal : The bearish crab pattern is a reversal/correction pattern, suggesting that the bullish trend in GBP/USD may be losing momentum, and a bearish trend could develop. 2. Resistance Level : The termination point of the CD leg at 1.24285 serves as a significant resistance level which emanated from the rejection of price on the 11th and 12th of October. Having seen a bearish engulfing candlestick pattern at this zone, we anticipate reversal around this price. 3. Stop-Loss and Take-Profit Levels : We are setting 1.24550 as our invalidation zone, while our potential profit areas are 1.22990 and 1.22400 respectively. 4. Confirmation : This pattern is further confirmed by our elliott wave count. The reversal point seems to coincide with the end of impulsive wave 3, confirming that the drop may be a wave 4 correction. And if wave 4, our target should not be big (maybe 1.23006) as the trend is bullish. Conclusion: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics suggests a potential reversal (correction) in the bullish trend. We have seen further confirmation using Elliott wave and price action analysis, but remember no trading idea is foolproof hence the need to manage risk properly. Cheers!!! Chart to EW Analysis:
Short
by Samuel124