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Patterns

What Traders and Detectives Have in Common 📊🕵️‍♀️In this article, I want to talk about the interesting similarities between trading and detective work. Like detectives solve mysteries to find the truth, traders explore the market to understand patterns and make smart decisions. 1️⃣ Gathering Clues: Both trading and detective work rely on the acquisition of timely and relevant information. Traders stay informed about market news, economic indicators, and patterns, just as detectives gather clues from witnesses, documents, and other sources. In both cases, the quality of information directly impacts decision-making. 2️⃣ Risk Assessment: Detectives must carefully assess risks and probabilities to navigate the unknown. Similarly, traders must evaluate market risks, weighing potential rewards against potential losses. Just as a detective gauges the likelihood of various scenarios, a trader assesses market conditions to make calculated decisions that align with their risk tolerance. 3️⃣ Patience and Persistence: Success in both trading and detective work demands patience and persistence. Detectives may spend long hours sifting through evidence, and traders may patiently wait for the right market conditions. Like a detective unraveling a case, a trader must persistently analyze data and adapt strategies to changing market dynamics. 🔎 In essence, trading is a financial investigation, where observation, critical analysis, and connecting the dots play a crucial role. As we navigate the market's complexities, let's embrace the spirit of a detective, ever vigilant and ready to uncover hidden truths that guide our decisions. Wishing you successful trades and discoveries in your financial journey. Did I forget any similarities? What are your thoughts? Also, what would you like me to compare traders to next? 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Richard Nasr
Education
by TheSignalyst
32
Pennant - UCADHere I have USD/CAD on the Daily Chart! Price has been creating Higher Lows into Lower Highs which is outlining a Pennant Pattern! Important factors to mention: The High price created at the First Touch of the Falling Resistance was unable to stay above the Previous Highs made on Oct. 13th '22 and Mar. 10th '23 and seems to be struggling with this Resistance at 1.38621. The USD has been severely falling since last weeks news on CPI BUT could potentially find support at this 103.0 area like it did last time it was here on Aug. 31st! Fundamentally this week: USD - FOMC Meeting (Tues) Unemployment Claims (Wed) Thanksgiving* (Thur) Flash PMI (Fri) CAD - CPI (Tues) My bias on the pair at the moment is neutral due to the Heavy flow of News this week and the impact it all may have. WAIT for price to give a PROPER break of either the Falling Resistance or Rising Support! *Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
by Novi_Fibonacci
Bull Flag - XRPHere I have XRPUSDT on the 4Hr Chart in what looks to be a Bull Flag!! Price was previously in a Strong Uptrend prior to entering the pattern. -Price gave us 3 tests of the Falling Resistance and 2 tests of the Falling Support. If this is in fact a Bull Flag, we should expect a Bullish Break to this continuation pattern where price should continue HIGHER! **Chart patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!! -Pattern Prediction- *If price Breaks and Closes below Falling Support, pattern INVALIDATED! *If price Breaks and Closes above the Falling Resistance, price action will initiate my Trade Action Plan!
Long
by Novi_Fibonacci
2
NVDA: What to expect for earnings next week?This huge semiconductor has plenty of clout in terms of popularity with retail investors. HFTs are likely to gap on its earnings news which arrives on 11/21, next week. Clearly there are many who are confident NASDAQ:NVDA will meet or beat analyst estimates despite setbacks and restrictions. The run hit resistance and became overextended, so some profit taking is occurring for now. The stock is likely to shift to a tighter consolidation near the high of this platforming range.
NASDAQ:NVDALong
by MarthaStokesCMT-TechniTrader
1
Potential Inverted Head & Shoulders - GMEHere I have GameStop stock on the 4Hr Chart exhibiting signs of a potential Head & Shoulders pattern! GME hit its 52-Week Low last Monday so I believe this could be a great area for a potential reversal in the Bullish direction! www.tradingview.com The Neckline @ 14.30 has been tested twice now, once after the creation of the "Left Shoulder" and again after the creation of the "Head". Now what I expect for GME is for price to come down for the creation of the "Right Shoulder" with Pattern Invalidation at 12.90! -Pattern Prediction- *If price Breaks Down and Closes Below 12.90, pattern INVALIDATED! *If price Breaks Up and Closes Above 14.30, price action initiates my Trade Action Plan!
NYSE:GMELong
by Novi_Fibonacci
4
CUP O' THE MORNING! - AJHere is AUD/JPY on the 30 Min Chart in what looks to be a VERY convincing Cup and Handle Pattern starting to form! I expect price will finish the "Cup" @ 97.007 -THEN- Give us our "Handle" (Higher Low) to continue HIGHER being that its a Strong Reversal Pattern! Fundamentally: AUD -> NAB Business Confidence (Mon), Wage Price Index (Tue), Employment Change and Unemployment Rate (Wed) JPY -> "Clear News Week" **Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
Long
by Novi_Fibonacci
Descending Triangle - EUHere I have EUR/USD on the 1Hr Chart which seems to be outlining what looks to be a Descending Triangle pattern!! We had price test the Falling Resistance TWICE with price showing the Support Zone down below. If this Descending Triangle should stand true I would like to see a THIRD test of the Falling Resistance before price falls back down to the support area and BREAKING BEARISH!! -BUT- There is always the chance EUR beats out USD being so light on News this week that if news is bad for USD, we could see a BULLISH BREAK to this Pattern instead! Fundamentally: EUR -> Economic Forecast (Mon), Economic Sentiment (Tue) and Lagarde Speaking (Fri) USD -> CPI (Tue), PPI & Retail Sales (Wed), Unemployment (Thur) and Building Permits (Fri) **Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS! -Pattern Prediction- *If price Breaks and Closes above Falling Resistance, pattern INVALIDATED! *If price Breaks and Closes below Support Area, price action will initiate Trade Action Plan!
Short
by Novi_Fibonacci
1
Mickey Mouse is UPSIDE-DOWN!Here on the Daily Chart we have The Walt Disney Stock. Price has been outlining what looks to be a possible Inverted Head and Shoulders! The "Neckline" @ 86.28 has been tested twice, once on Sept. 15th after the creation of the first "Shoulder" and again on Oct. 17th after the creation of the "Head". Now since we have the creation of the second "Shoulder" or the Low that did not surpass the Low of the "Head", I suspect price will make a trip back up to test the "Neckline" one more time before possibly giving us a Bullish Break to go higher!! As added confirmation, My DSR is flattening and and the second "Shoulder" was terminated by my Fib'd Kill Zone giving this a high chance of reversing! **Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS! -Pattern Prediction- *If price Breaks and Closes below 79.23, pattern is INVALIDATED *If price Breaks and Closes above 86.28, price action will initiate my Trade Action Plan!
NYSE:DISLong
by Novi_Fibonacci
2
Pennant - AJHere on the Daily Chart I have AUD/JPY showing signs of a Pennant pattern! Lower Highs into Higher Lows until a "Pinch Point" where price will need to break Bullish or Bearish. Pennants can break either way but the direction of the Market usually has an influence on where price will go after the break. Price has tested the Falling Resistance and Rising Support twice already, so I am waiting to see what the Third test of either Trendline will bring! Price currently is on its way up so I suspect we will get a third test of the Falling Resistance shortly! *Chart patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!
by Novi_Fibonacci
6
Textbook Consolidation Rectangle -EGHere we have EUR/GBP on the 4Hr Chart in a beautiful textbook example of a Consolidation Rectangle Pattern! Clearly respecting a Resistance @ .87403 and Support @ .86829! Accompanying price on my chart is the 200 EMA with price ABOVE it showing it has been BULLISH with the dirty test prior to the pattern. Along with the Bollinger Bands showing CLEAR signs of sideways trajectory! Fundamentally for today: EUR - Spanish Unemployment Change @ 3am and Unemployment Rate @ 5am GBP - CIPS UK PMI @ 4:30am and MPC Members Pill & Haskei speak @ 7am & 11am As far as directional bias, I will be neutral on this pair until we are given a proper break with added confluence of other factors pointing to solid momentum! *Chart patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
by Novi_Fibonacci
"Beast Mode" to the Rescue?! - TSLASome exciting developments have come to light for Tesla and their CEO Elon Musk! Technically, price has been falling since the beginning of August with its Highs and Lows outlining what looks to be price traveling in a Bull Flag! If we want price to travel higher, we need a solid Break and Close above the Falling Resistance! Fundamentally, Tesla announced its new version of the Cyber Truck with "Beast Mode" with features as impenetrable panels and glass (If opted), 0-60 UNDER 3 seconds, No differential allowing it to be the best bottom clearance vehicle with adjustable ride heights. www.tradingview.com Also Elon announced he is rolling out he's AI tech model, xAI, to select a few and being readily available to X (formely Twitter) Premium Subscribers. www.tradingview.com *Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
NASDAQ:TSLALong
by Novi_Fibonacci
2
Falling Wedge - AAPLHere we have the Apple Stock on the Daily Chart showing signs of a Falling Wedge! Consisting of Lower Highs and Lower Lows into a Pinch Point where typically we should get a BULLISH break! Technically, if we want to see this stock rise again, we need a good break of the Falling Resistance of the Wedge and with current news events and movements the tech giant is doing, we could be seeing it soon!! Fundamentally, Thursday Earnings showed positive results where Q4 results came in less than great for AAPL where it had shared sales have dropped globally for the fourth consecutive quarter, in China dropping -2.5%. www.tradingview.com Today, news was released that rumors of the iPhone 16 features exceeding that of the iPhone 15's Camera and Zoom and with a huge Tech Investor, Gene Munster calls for a reassessment of the Q4 results saying they are "Exaggerated". www.tradingview.com *Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
NASDAQ:AAPLLong
by Novi_Fibonacci
2
Resistance above the next challenger for GOLDGold broke out of a recent uptrend to form a correction through positive US data and peace strategies in Gaza. Price now finds itself hovering around 1990 with a level of resistance above in the region of 1991-1993. Price on the 4hour has also pushed lower to push off the 50/55 moving averages, prompting a possible double top on the cards. BULLS PLAN: - Push through this key level of resistance above and kick off a role reversal (change of character) to test highs int he 2010 region - Watch for entries when this level is broken as currently price is too high currently to enter longs ad price moves into resistance. HIGH RISK BEARS PLAN: - Wait for price to reach the resistance level above around 1991-1993 and look for rejection candles - Lower time frame charts (1m/5m/15m) for price action entry (double tops/lower lows) - Targets medium to long term will be 1950 region
OANDA:XAUUSD
by Youza
Descending Triangle, Hidden Pennant GUGBP/USD has been falling since July 14th and now is looking like its trapped within what looks to be a Descending Triangle or Pennant considering the current Low is higher in the Support zone then the Previous. The Descending Triangle made of Lower Highs into the Support Zone should typically give us a Bearish Break where price continues LOWER! -What makes this a special case to me is the possible presence of a Pennant! The Pennant is made up of Lower Highs into Higher Lows, consolidating into a "Pinch Point" where eventually price will break Bullish OR Bearish. -Typically the break will happen in the direction price was heading prior to entering the pattern BUT there is potential for price to play within the Pinch Point until giving a Proper Break!! **Patterns are known to fail 1/3 of the time SO BEWARE OF FALSE BREAKS!!! -Fundamentally, USD & GBP have: Employment Cost & Consumer Confidence (USD) - Tuesday ADP Non-Farm Employment, JOLT Job Openings, Federal Funds Rate & FOMC Statement and Conference (USD) - Wednesday Monetary Policy Statement, Official Bank Rate Votes, Bailey Speaking (GBP) and Unemployment Claims (USD) - Thursday Average Hourly Earnings, Non-Farm Employment Change & Unemployment Rate (USD) -Friday **With the heavy news week, ANYTHING CAN HAPPEN!! My gut is giving me BEARISH vibes with the analysis of this chart and I believe USD could be finding support after its stunning comeback later in the week last week!!
Short
by Novi_Fibonacci
2
Three White SoldiersGreetings, traders! Today, let’s dive into a powerful candlestick pattern: the Three White Soldiers. This pattern, often regarded as a bullish signal, can provide valuable insights. Understanding the Three White Soldiers Pattern: The Three White Soldiers pattern is identified by three consecutive bullish candles, symbolizing a robust influx of buying pressure. When these candles appear in a sequence, it suggests a shift in market sentiment from bearish to bullish. Key Characteristics: Bullish Momentum: The pattern signifies a strong uptrend, indicating a potential continuation of the existing market trend. Candlestick Size: Pay attention to the size of the candles. In this pattern, large-bodied candles with minimal wicks reflect substantial buying activity. This emphasizes the dominance of buyers in the market. Volume Confirmation: Volume indicators on charting platforms can validate the pattern. An uptick in volume during the formation of the Three White Soldiers further strengthens its significance. Trading Strategies with the Three White Soldiers Pattern: Confirmation with Volume: Ensure the pattern is supported by increased trading volume, affirming the authenticity of the bullish move. Combine with Other Indicators: Enhance your trading strategy by integrating the Three White Soldiers pattern with trend lines, Fibonacci retracement levels, or other technical indicators. This synergy can provide a more comprehensive view of the market. Wait for Confirmation: Patience is key. Wait for the bullish candles to close before considering the pattern confirmed. This approach reduces the risk of false signals. Consider Timeframes: Analyze the pattern across multiple timeframes. A Three White Soldiers formation on higher timeframes (such as daily or weekly charts) often indicates stronger bullish potential. Risk Management and Trade Execution: Set Stop-Loss: Establish stop-loss below first candlestick of the Three White Soldiers. Diversify Your Trades: Avoid over-concentration in a single asset. Diversifying your trades across different instruments can mitigate risks associated with individual market volatility. By combining this pattern with meticulous analysis, strategic planning, and risk management, traders can enhance their overall trading prowess. Happy trading, and may the markets be ever in your favour!
Education
by Vestinda