The Trump & Biden win Cryptocurrency tokens on the FTX exchange is giving us a great gouge of the Crypto community sentiment towards the two candidates. We are also see a perfect example here of the Bull & Bear Flag patterns with Trump showing the bullish version & Biden the bearish.
Some key points about BULL & BEAR FLAGS:
• BEST ENTRY IS often when price fakes out under support or above resistance
• MIN 2 Touches each side
• PRICE MUST MOVE STRAIGHT UPor DOWN BEFOREHAND (or it is not a true flag pattern)
• HIGHEST SUCCESS RATE of any chart pattern
To identify a Bull or Bear flag pattern the first key characteristic is the FLAGPOLE. The flagpole is usually a staight upwards or downwards move, if the flagpole is not abnormally straight upwards/downwards then it is probably a poor example of the pattern.
Price should then consolidate in a parallel channel (it can be sloped), this is the “flag”. The flag is a pause in the market before a up-move or down-move and we measure the flag pole for a possible price target. Bull & Bear Flags according to backtesting have the highest success rates out of any chart pattern - success rate being when they hit the potential measured move (the original flag pole height is measured, and added to the swing before BREAKOUT for a possible price target as shown in the diagrams).
The first entry is on the 4th touch of the pattern. It is also common for these patterns to have a THROWBACK (also known as bullish/bearish retest) before continuing in the direction of the breakout, this is marked as point (B) on the chart and the second entry point.
Look for bull flags forming on top of long term resistances (not below) and the opposite with long term supports on bear flags to increase probability of success also.
More information on the TRUMP & BIDEN tokens:
help.ftx.com/hc/en-u...ident-2020-Contracts
More information on Bull & Bear Flags from the legendary Thomas Bulkowski:
thepatternsite.com/flags.html
A example of another Bull Flag Pattern for comparison:
If you enjoyed the insight dont forget to leave your comments and hit like thank you!
Some key points about BULL & BEAR FLAGS:
• BEST ENTRY IS often when price fakes out under support or above resistance
• MIN 2 Touches each side
• PRICE MUST MOVE STRAIGHT UPor DOWN BEFOREHAND (or it is not a true flag pattern)
• HIGHEST SUCCESS RATE of any chart pattern
To identify a Bull or Bear flag pattern the first key characteristic is the FLAGPOLE. The flagpole is usually a staight upwards or downwards move, if the flagpole is not abnormally straight upwards/downwards then it is probably a poor example of the pattern.
Price should then consolidate in a parallel channel (it can be sloped), this is the “flag”. The flag is a pause in the market before a up-move or down-move and we measure the flag pole for a possible price target. Bull & Bear Flags according to backtesting have the highest success rates out of any chart pattern - success rate being when they hit the potential measured move (the original flag pole height is measured, and added to the swing before BREAKOUT for a possible price target as shown in the diagrams).
The first entry is on the 4th touch of the pattern. It is also common for these patterns to have a THROWBACK (also known as bullish/bearish retest) before continuing in the direction of the breakout, this is marked as point (B) on the chart and the second entry point.
Look for bull flags forming on top of long term resistances (not below) and the opposite with long term supports on bear flags to increase probability of success also.
More information on the TRUMP & BIDEN tokens:
help.ftx.com/hc/en-u...ident-2020-Contracts
More information on Bull & Bear Flags from the legendary Thomas Bulkowski:
thepatternsite.com/flags.html
A example of another Bull Flag Pattern for comparison:
If you enjoyed the insight dont forget to leave your comments and hit like thank you!
