Wave-Trader

Trend continuation VS Trend reversal pattern

OANDA:USDJPY   USD/JPY
4122 61 127
Although both patterns formation is quite same.

1. Ascending broadening wedge ( Trend reversal pattern )
2. Expanding triangle ( Trend continuation pattern )

Ascending broadening wedge forms with the divergence. If 1st impulse is sharp then it gives signal that trend is going to reverse.

Expanding triangle forms most of the time against the divergence. If expanding triangle forms corrective wave at top then it gives signal that price is going to continue with the previous trend.
Comment: I hope this example will help much better. Expanding triangle. (Trend continuation pattern )
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Comment: I hope this example will help much better. Ascending broadening wedge. ( Trend reversal pattern )

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Comment: ascending broadening wedge with divergence.
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Comment: This idea is based on my understanding of markets and you can agree or disagree with it you have full right to agree or disagree mate.
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Very helpful, thanks!
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@AntonBilan, You are most welcome mate. I hope this will help the community to identify these patterns correctly.
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I think the us will up to 122.77 and i will buy pending order from 107.48
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Wave-Trader TOP SafwatMohamed
@SafwatMohamed, price do not move in straight candles mate. it always move impulse and correction. so impulse is there now wait for correction if you are looking to the upside and if you are a counter trend trader then you an sell for this short therm correction and if you are trend trader then wait for correction to complete and then join the up side move.
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SafwatMohamed Wave-Trader
@Wave-Trader, thank u, i will wait for the correction
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It think it heads down 50% chance lol
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@Michelok, one or two candles do not give a clean picture of the market where it is heading for if you are looking for short then wait for proper top then look for short on possible corrective wave.
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Ascending Broadening Wedge.. An indication of trend reversal Like in EURCAD for example.
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@Ajoy12345, if you will share you picture then it will be easy to understand
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Ajoy12345 Wave-Trader
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@Ajoy12345, nice chart mate.
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OAKS PRO Wave-Trader
@Wave-Trader, so totally euro may gathering strength to a lot of pairs??
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mhs503 Wave-Trader
@Wave-Trader, lol technical analysis at its best hahha
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@mhs503, it seems to me you are new on this platform mate.
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thanks
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Wave-Trader TOP ahmedraslan29
@ahmedraslan29, my pleasure mate.
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What is the unique identifier for ascending broadening wedge and Expanding triangle?
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@forexyoga, divergence.
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Wave-Trader TOP Wave-Trader
@Wave-Trader, impulse and correction identification correctly.
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forexyoga Wave-Trader
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@forexyoga, My pleasure mate.
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forexyoga Wave-Trader
@Wave-Trader, can you share a chart on divergence ?
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@forexyoga, I will try my best my friend.
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forexyoga Wave-Trader
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@forexyoga, I hope the above updated pictures will help you much better my friend.
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forexyoga Wave-Trader
@Wave-Trader, Yep Boss , Thx
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@forexyoga, My pleasures mate.
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thank you ,homie
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Wave-Trader TOP Guillermo87
@Guillermo87, My pleasure mate
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Guillermo87 Wave-Trader
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Actually, all charts are missing divergences part =)
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Wave-Trader TOP captain_smollett
@captain_smollett, I thought you are a professional trader mate but if still you are new then this picture will help you a lot.
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@Wave-Trader, Thank you! Just have a sample of mine if you don´t mind? In the chart above, there is a divergence on daily but the price still went above the top limit of the wedge. Is it normal or I just built the wedge wrongly?
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Wave-Trader TOP captain_smollett
@captain_smollett, this is not a wedge mate it is a flat channel ya and price broken up now it can channel pattern and may form an other pattern.
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Thanks for your contributions to the community @Wave-Trader. But please write something about your source for the educational posts you are posting to make them more reliable, and avoid https://en.wikipedia.org/wiki/Plagiarism

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@Trader382, This idea is based on my understanding of markets and you can agree or disagree with it you have full right to agree or disagree mate.
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Trader382 Wave-Trader
@Wave-Trader, don't get me wrong, your contributions are mostly welcome and appreciated, -not only to the new trader, but to people like me as well that are quite well educated in trading. I couldn't recall seeing this price behavior explained like this earlier, and that was the reason for asking, out of curiosity and if you indeed in fact have discovered something new(!). I know you spend a lot of time behind the charts, the markets do evolve as well over time, and you seem like a bright fellow. So a new discovery would not really surprise me;)

Whatever new price behavior you do discover, you should take credit for as well. You should just state your sources in your educational posts to make it clearer if it is your own discoveries or someone else's, this to avoid any unnecessary misunderstandings. I will give Tradingview a suggestion to include a subject about sources in education posts, to the better for us all:)

Keep up the good work man.
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@Trader382, ( I couldn't recall seeing this price behavior explained like this earlier,) Thats why i said these are my thoughts and you can agree or disagree with it.
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Trader382 Wave-Trader
@Wave-Trader, yes indeed, and that is totally fine, but that was after I asked. Just include a statement about the source in the original idea text then no one needs to ask, or the same problem will most likely occur again:)
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@Trader382, By the way i am not taking any thing offensive ya all credit goes to tradingview where we can share our thoughts and can maximise our knowledge and profit as well so nothing offensive there my friend i love to see critic on my charts.
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I'm still short on GBPJPY and EURJPY.
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@BeFX, Good Luck mate.
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So the plan would be to buy in the "best to buy zone", then wait when the price touch the top of the pattern, then head a bit down, if we see the correction and impulse down then we exit long and open short (ascending wage), otherwise we just hold our position in case if it's a expanding triangle... Seems to be easy, but takes a lot of practice and experience to timely identify moves and get into trade. Thank you for the educational post.
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Trader382 ukrapidexchange
@ukrapidexchange, the best (and safest) is to wait for price to break out of the geometric formation. Even better would be to wait for it make a correction after the breakout. Trading a correction inside the geometric object is less safer.

Flags are by default viewed as continuation patterns. Still though I have yet to find any strategy or patter besting a statistical average of around 60-65% accuracy. So keep that in mind next time you trade any pattern, and learn that trading is for most people most about money management, not finding the best price chart strategy.

Have a look into Elliott wave theory if you would like to take everything from geometric formations a step further. Look into Dow theory as well. Elliot was actually contacting Dow about his findings many years ago, and it should be noted that Elliott was indeed evolving his theory with the Dow theory being the most accepted technical view back in those days around early 1900s.
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@Trader382, agree mate.
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@Trader382, Many thanks for your answer!
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If somebody is trying to sell you educational courses or monthly subscription make sure to check their annual returns as majority of them don't make money trading.

Some are good but make sure to perform your due diligence before investing your hard earned money!
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@zeku, I think you are new in this industry mate and have no idea how huge this industry is. Some people provides only trading signals. Some people share their knowledge by providing training courses. some people earn money by providing forecast only. some people earning money by doing trading and making money from market. some people making money by speaking only in this industry like on financial TVs. So all are making money in this industry some people has all the above expertise and some has only one. So you should focus on your knowledge so that you may become one of them rather than criticising some one negatively.
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Wave-Trader TOP Wave-Trader
@Wave-Trader, And no one earns money in this industry without losing money either they are paying for signal or for course or getting losses in the market.
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Trader382 Wave-Trader
@Wave-Trader, agreed. But you forgot to mention perhaps the biggest money makers in the retail trading business; the scammers. Betting like a bucket shop that their customer will actually loose against the market. And if your lucky enough to beat it, they will make an effort to have you still loose. They will not make any money if your profitable as your trade never was used to buy anything on a stock exchange, they we're put straight into the brokers "dark pool" or more correctly their pocket.

So for the retail trader (as most of traders on Tradingview) the priority list to actually be profitable as a trader would be

1. Find an honest broker (this is hard and will take some time, in an industry full of scammers)

2. Money management and a personality that can handle the natural wave fluctuation in stock prices.

...I don't even use stop losses anymore. Never. Why? Because everyone else is, and your broker can take advantage of hunting it.

3. A sound actual trading strategy. And there a dozen to choose from. The most important would be that it has strict rules for when to enter and when to exit.


So there you go newbies, good luck:p -not to take away your expectations, just understand that beating the average (the market) will as with everything else, require something extraordinary not defined by and strategy written in a book.

So buy low, sell high. Sounds easy doesn't it?;)
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@Trader382, absolutely you are right mate.
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zeku Wave-Trader
@Wave-Trader, You spewed out a load of crap for newbies, you are not even aware of how naive/simpleton you are ... LOL

I can rip your entire statement one by one however lets take one or two of them

>>Some people provides only trading signals

Why only provide and not trade them and make money? Its obvious, isn't it.. It doesn't work, that is why they are selling, ask them for their annual returns and see the fun - its called eating your own dog food.

Oh another example of your talking head on TV - The great trader Dennis Gartman.. Do a google search on how his real fund/return performed, and be amazed...many more examples like these of fooling innocent people.

As the saying goes "Those who can't trade, teach; those who can't teach, publish newsletter or sell subscriptions"

I am not criticizing the good ones, all I am saying is be cautious of the so many fake so called "experts" "gurus" in this industry which you are failing to instruct your followers.

This maybe little off topic but I highly doubt you are from UK as per your profile (or maybe you moved there recently from Pakistan or India perhaps) as your English says otherwise.

+3 Reply
welldone imran bhai
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@amerhabib, Thanks amir and you are most welcome mate.
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hey mate thanks for educational material its really good n useful. I learned alot from you

can you check my chart and give some thoughts on it thnx


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@theodor87, that is really possible and look at your third wave it is against the indicator your indicator pointing that price is overbought and may be oversold in next couple or hours but you are expecting that price gonna rise so there is conflict with your count and with your structure and counting ya. so always try to count your waves with the indication dont go against the indication and your structure and patterns must also be with the indications. here price can come down and retest your lower trend line and then may rise as your indicator showing and if you buy from current price level then your stop loss no gonna be reasonable you will use stop loss out side the lower trend line which is safe but huge and no gonna be good enough for your risk reward ratio ya. so use combination of all of these things for better understanding of the chart and price movement. i hope this small tip will change your style of trading mate.
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theodor87 Wave-Trader
@Wave-Trader, ok, thanks mate once again for advice and for free information I really appreciate.
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@theodor87, My pleasure mate.
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Great informative post. Thank you bro.
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Can someone explain, why wedges lead to revearsals and triangles lead to continuation? What is the psycholgical background, that traders don´t trust in continuation when wedge occurs and believe in contuation though price reverses to support several times. To me it seems more logic that a wedge, which has rising lows and highs looks like continuation. I know the fact, but I don´ understand, why it works.
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thanks a lot for your sharing. I am a new trader, is my understanding right, that the corrective wave will lead to reversal trend and impulsive wave to countinuation? another question, how to identify the asending wave is corrective or impulsive, do 3 waves means corrective wave, 5 waves means impulsive wave?
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