Chart patterns are the foundational building blocks of technical analysis. They repeat themselves in the market time and time again and are relatively easy to spot. These basic patterns appear on every timeframe and can, therefore, be used by scalpers, day traders, swing traders, position traders and investors. There are 3 types of patterns, depending on how price is likely to behave after completion: reversal patterns, where price is likely to reverse, continuation patterns, where price is likely to continue its course and bilateral patterns, where price can go either way, depending on whether it breaks to the upside or to the downside.
The measurements of the chart pattern can be used to project the next price movement and what target to aim for. These patterns can either be traded aggressively (with less conformation) or conservatively (with more conformation) so the rules of entry and exit can vary. It's easy to calculate the reward / risk for them, which is important to know before entering a trade.
Today we will take a look at the Renko Chart, this chart can show us trend reversal zones, it is very helpful in making Trend Analysis. Currently, we can see an Eliott Waves pattern, cycle 1-5 began at the $11000 and finished at the $3500. After the 1-5 wave, we usually see a correctional wave ABC, or a reversal wave 1-5. Both cycles have two trend waves at the...
Recently I started mentioning that there are a lot of traders who draw a "Cup with Handle" pattern on Bitcoin. I hate to see it. In this idea, I will try to explain WHY there is NO Cup with Handle on Bitcoin chart, in details.
Straight out the gate, I want to remember you that a Cup with Handle is one of the most difficult and rarest patterns from all existing...
Woody Dorsey just sent out an essay on some of the patterns he has developed over his 40 years of trading. It is very interesting and will enlighten you on some of the terminology used here. The entire piece is in the link below.
What is a Black Hole?
A Black Hole is a defined time period when extreme market events may take place in a very short period of...
$Bitcoin has just formed an almost horizontal flat channel. Both, a support and a resistance are ascending which makes this channel - BEARISH. However, we have two triggers, one for SHORT position, another for LONG, let me explain you.
If the price of $BTC break through the resistance at $8200 and takes hold above one, you can open short-term LONG position. In...
HELLO TRADERS, IN THIS VIDEO I GUIDE YOU IN THE CORRECT WAY TO IDENTIFY IF YOU ARE IN A BULLISH OR BEARISH ENVIRONMENT AND I PROVIDE A REAL MARKET GUIDE ON HOW TO DO IT.
PREVIOUS EDUCATIONAL IDEAS PUBLISHED LINKED...
In every technical analysis book you read, they mention that an uptrend is a series of higher tops and higher bottoms. But in no book that I have read do they explain how to precisely identify a top or a bottom leaving the answer to realm of subjectivity. Identifying the correct tops and bottoms is an essential part of any method that uses price action pattern...
Hello Crypto lovers!
Today we will talk about Bitcoin BITSTAMP:BTCUSD !!
Bitcoin is in a strong uptrend since the beginning of 2019, but current intraday rise seems to be out of a triangle. What do you know about triangles?! Yes, triangles are corrective and continuation patterns, but they usually occur in wave "iv", so after a break out into a wave "v", we...
Introduction
A trading chart is a two dimensional coordinate system, therefore it is possible to use different curves/figures in order to provide predictive insights, at the end this is what most technical analyst rely on (support resistances, squares/circles...etc), so geometry play a key role on technical analysis and the number of methods is only limited by...
hey traders in this video I show you what is the difference between a trendline and a counter-trendline and how to use them in any market to your advantage
here is a look at a golden cross and a death cross on the same chart. Look at the effect on the price slightly before the event as traders were anticipating the arrival of the golden cross and the death cross. Pretty simple, but good to know
In this tutorial, I give a brief description on how to determine high probability orderblocks using the knowledge of liquidity voids.
By the end of this video, you should be able to pin point a bullish or a bearish orderblock which has a very high probability of holding support or resistance respectively.
You will also be able to mark out inefficiencies in the...
Yellow highlights shows examples where it broke the line and then reversed.
Green checks identify breaking the line and continuing to the next line.
Current price is at a level where it can either fall below the trend-line to the next anticipated support line
or continue up to the top line.
If it breaks the top-line and holds above it, all those horizontal lines...
To long term success is this business you have to avoid using too much leverage! I recently did a challenge to see if I can actually make money with $20. The result of that was not so great ,and the main reason was because I went in too big.The fact is that making money with a small capital is very hard.For one you won't make much an any given trade. Second, you...
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