Get started

Patterns

ABSORPTION MODELHello everyone! Today I want to share with you a very strong pattern that I use myself and that you can find on any chart. When used correctly, this pattern is able to suggest the best entry point and possible reversal, which potentially promises you good profits. Identification The engulfing pattern looks like two candles, the first of which is small, and the second is large and its body will be larger than that of the first, and the candle is directed in the opposite direction. The logic of this model is simple - there is no more strength left in the market to push the price - the first candle, after which a large one is formed and uses weakness to push the market in the opposite direction. A couple of important conditions: There must be a trend before the pattern. The second candle should be large and have the opposite direction. In addition, the first candle should close almost without a shadow, that is, at its maximum. Trading in a flat can bring a lot of losses, since a lot of false signals appear in such a market. Trade The entry into the market is made after the level of the first candle is broken - that is, the market has swallowed the candle and goes in the opposite direction. The stop loss is placed beyond the high of the first candle. Take profit . There are several ways to set a take profit. You can set it at a ratio of 3:1 or more to your stop loss. Another way is to set a take profit in the area of ​​the next level. This method can bring more profit, while it is worth remembering that the market may not reach the level. Timeframes The choice of timeframe depends on your trading style, as this pattern occurs on all timeframes. But it should be understood that the lower the timeframe, the worse the figure will be worked out. The ideal time frame for trading is 4 hours. You can choose the one that suits you. Conclusions This pattern, like all the others, provides a guide for trading, but this does not mean that the market will definitely go in the direction you need. When analyzing, it is worth analyzing the whole picture, do not rely on only one pattern, use indicators. When trading from the level, this model will be worked out more often. Use patterns correctly. Good luck!
Education
by DeGRAM
5
The Four way stop in front of the crypto market. BTC is driving.Most other established crypto charts reflect the same point of epic decision. Even the neutral path will be groundbreaking. As it will add a new component to the bitcoin pattern development. Outside of the March 2020 reactive crash this would be the most unusual path. For me, it would show the line between those who want to free and those who want to control the currency of the world. Beautiful moment. you can see the power and the calm.
COINBASE:BTCUSD
by mindfree
DID BITCOIN ALREADY FORM A HEAD AND SHOULDER PATTERN???Instead of currently being in a bullish trend at the base of the second shoulder Bitcoin could already have formed that second "shoulder" and now bounced off the support line and undergo a massive correction down the 25k support line. I personally still believe that like explained in my previous post, we are currently like I said at the "base" of the second shoulder in a bullish trend up to the 45k resistance line. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ If you enjoyed this post and agree with me, a like and a sub would be very nice : ) Stay updated for more content Bye! ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Short
by xtekky
2
The power of tension and a inversted hammer candle...As you can see on the SBEV chart, there is a build-up of tension towards the end and an inverted hammer candle. The long upper wick of the candlestick pattern indicates that the buyers drove prices up at some point during the period in which the candle was formed, but encountered selling pressure which drove prices back down to close near to where they opened. When encountering an inverted hammer, traders often check for a higher open and close on the next period to validate it as a bullish signal. After this the price blew up from around 1.05 to 4.35 which is mor than a 4x And now some math, if you had invested 100€ at 1.05, and cashed out at the top (4.35), you would now have 414€ which is 314€ made in only 3 days. Here is the calculation: 100/1.05 = 95.238 95.238x 4.35 = 414,2853 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ If you enjoyed this post and agree with me, a like and a sub would be very nice : ) Stay updated for more content Bye! ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
AMEX:SBEVLong
by xtekky
3
The Kangaroo - An Australian Analytical PatternThis image is of a kangaroo pattern. Just like a kangaroo in the top paddock, you will find many bulls associating with this pattern, as they are both fond of the top paddock. When you see a kangaroo pattern, you can be sure that the price will race up as the kangaroo is ready to take another bound. The paws sometimes rest on the 0.618, but they are known to hang lower. After the head is made, it is common for a dip to the arms or paw height on occasion, as the kangaroo gets a hold of the back of the next kangaroo and works its way up. The kangaroo pattern was first discovered by Speiros in 2019, and put on display in 2021.
BITSTAMP:BTCUSDLong
by Speiros
3
TRIPLE TOPHello everyone Today I want to share with you a figure of technical analysis called the TRIPLE TOP. This figure occurs quite often and brings excellent profit. What does it look like? The figure looks like three maxima, approximately at the same level. These peaks are formed because the buyers' forces are drying up and with each new peak, the bears are getting stronger. Very often, the third peak will be higher than the previous two - this is the last gasp of buyers, before capitulation. How to trade? The main criterion is the formation of three peaks, after a strong uptrend. After that, the price makes the last spurt (the third peak) and breaks through the support. This breakout is the first possible entry point . Often you will observe how the price makes a retest of the level, after which it turns down. The second possible entry point will be this retest of the level. To calculate the potential profit point , you need to measure the height from the minimum to the maximum of the vertices. This value, plotted below the breakout, will be a potential profit point. The stop loss is set above the maximum of the vertices. Conclusion The figure is very profitable and often found. In addition, you can find a triple bottom on the chart, which trades in the same way as a triple top, only in the opposite direction. Very often, after a triple top, a strong downtrend begins and holding a part of the position can bring big profits. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
16
complete analysis on Bitcoin ( Read this carefully )Hello guys, welcome back, I hope you all doing great. I decided to write a complete analysis on bitcoin, recent moves brought so much fear into the market, everybody having different ideas on the price action, some going short some going long, so the question is, what to do now. We are going to take a look at bitcoin on different time frames and check the technical analysis for each one. now this is probably going to be a long article but I believe its worth the time. Lets start with weekly chart to see what is going on here. I drew a trendline by connecting 2020 big crash and 2021 crash ( pointed out on chart ) and it turned out to be a proper trend line ( by checking out the daily chart you will realize price had reactions to this zone many times ) by drawing this line, now I can tell we have a reliable price as bottom, we can kind of expect to bitcoin reverse its move by touching that line once again ( if price ever decides to touch it again ! ) Don't worry, I will summarize all of the content at the end, but please follow the text carefully ;) I also drew an orange trend line which is kinda forming a triangle for us ( and again if you check on lower time frames you will realize its an actual trend line not just a random line ); by break of this orange line, price managed to make a new ATH and we all know you should always expect a pullback to broken levels. So again, we have another level that we can expect a trend reversal from ! now lets take a look at daily time frame and draw some important support and resistances for a better understanding now if price keeps going down from here steady and slowly, 40.8 - 41.0 k is where I expect a trend reversal : Why? Because there is so much support! we have a huge weekly trend from 2020, another support zone and the orange trend line, the support on that level is massive and if price ever goes below that level, we are going to see a huge crash and that shouldn't happen. ( That will probably ruin crypto market ) - So to summarize #First_Scenario would be : but we might also see a trend reversal after an small pullback to 44k Zone, for this you can use candle stick patterns, pin bars , doji bars and ... with a bull candle after them will probably confirm a trend reversal and a pullback. But ! these are all harsh scenarios, lets look at lower time frames to see if we stand a chance for a run from where we are ! as you can see, we have a trend line and also a support zone ( purple one ) on the chart, price broke out of the trend line but the support zone is strong enough to hold it for now, you can also see a trend reversal candle stick pattern here, which is kinda telling us that we are going back up for a bit now ( this might be a pullback of the down trend ). Currently price has a resistance on 52k, if we somehow manage to break this level, we can see another run toward up but I really think the first 2 scenarios are more likely to be accurate. in conclusion I'd like to say, we are most likely facing a downtrend but the whole thing is still bullish, there has never been a bear market in crypto and all the downtrends were just some corrections, there is always ups and downs in financial market. this is not a financial advice, you can hold your money or you can use this analysis to sell on pullback and enter on lower prices ( if ever happened ) or wait for 52k break to enter again. But I repeat " THIS IS NOT A FINANCIAL ADVICE ", please be very careful these days. Hopefully my work will help you guys a bit, wish you all great trades and profitable days. please like and follow me on tradingview and other social medias, your support means the world to me. Im open to your ideas let me know in the comment section below. Good luck
Short
by Algo_Analyst
3
Why am I ignoring the 85% probability that Bitcoin will crash?In this video: * A Head and Shoulders pattern is glaringly obvious on the Bitcoin Daily chart. So, why am I ignoring the 85% probability that it will play out and we will drop to 20k? * I review my top 7 reasons why I do not see bitcoin price dropping much further 1. Bullish Divergence and kiss of the top of our trendline 2. Weak right shoulder 3. Liquidity pools drying up 4. Hedge funds back to work next week Jan 10. Back from vacation 5. Many of the altcoins have already suffered an 80% pullback. Not much room to go lower. 6. BTC.D is low 7. Everybody thinks we will crash in Jan.! Wishing you all the best! - Stew
INDEX:BTCUSDLong
by stewdamus
2
FLAG and PENNANTHello everyone! I want to tell you a little about such figures as Flag and Pennant. These patterns are quite common on the chart, so every trader should know how to trade them. What does the flag look like? After a strong movement (flagpole), the price begins to correct in the form of a rectangle, which corrects against the previous trend (flag). What does a pennant look like? Just like a flag, a pennant appears after a strong trend. After that, the correction begins in the form of a narrowing triangle. How to trade the flag? A bullish flag is a flag that has formed after a strong upward movement. The entry point for a bullish flag will be a breakout and anchoring the resistance of the rectangle (flag). The stop is placed at the low of the flag. To calculate a possible profit target, it is worth measuring the flagpole of the flag - this value superimposed above the breakout will be the target for your profit. How to trade a pennant? A bullish pennant forms after a strong bullish move. To find an entry point, you need to wait until the resistance of the triangle is broken and the price fixes above the level. Stop loss is usually placed below the nearest minimum. To get an approximate profit target, you need to measure the length of the bullish move in front of the triangle - this value will be your target above the break. Conclusion These patterns are very common and give an excellent risk / reward ratio, usually greater than 1: 3. With correct trading, the profit value will be even higher. Do not forget that these shapes are continuation shapes. And don't forget to set your stop loss. Good luck to you! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
14
HEAD AND SHOULDERSThere is probably no more famous figure than the HEAD AND SHOULDERS. Head and shoulders - gives a very profitable signal about the market reversal. Thanks to this figure, you will be able to open a position at the beginning of a new trend. What does it look like? The appearance of the Head and shoulders figure consists of five stages: 1. Uptrend; 2. Left shoulder; 3. Head; 4. Right shoulder; 5. Neck line. First, we need to find an uptrend on which the left shoulder will form. After that, the price makes the last rise, forming a head, after which the fall begins. The right shoulder appears on a downward movement, and the neck line can be drawn after the formation of the right shoulder. How to trade? The entry point is the breaking of the neck line. It is at this moment that the signal of the figure is confirmed. Some traders are in a hurry and open positions at the peak of the right shoulder, which is very dangerous. Always wait for the confirmation of the figure. Don't worry if you missed the first entry point, there is always an opportunity to open a position after the neck line retest. What about setting a stop loss? Stop loss is usually placed above the right shoulder. If the price went above the right shoulder, then the figure did not work, and it's time to exit the deal. Where will the profit target be? To calculate possible targets, the following method is used. It is necessary to measure the distance from the neck line to the maximum of the head, the resulting value is imposed below the penetration of the neck line, after the right shoulder, this will be your goal. Conclusions The Head and shoulders figure can bring you a lot of profit when trading correctly. It is worth noting that there is an inverted head and shoulders figure - and this figure signals a reversal and the imminent beginning of a bullish trend. The rules of trading are the same as when trading Head and shoulders, but only in a different direction. Trade using not only your shoulders, but also your head ! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
18