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Broadening

[Bitcoin] Possible scenarios in future#Bitcoin #Daily #ElliottWave #Scenario #Tommy - These are some of many scenarios that I am personally considering from the Elliott Wave Theory perspective. Numerous technical factors that are observed frequently especially in recent financial market such as widening patterns, stop hunting price action, parallel channels, and master patterns have been taken into account. Let's take a look at each one. - Let’s start with A, my most bearish scenario. This is a wave counting where the whole bullish wave from $32.9K low formed in January, is regarded as a big dead-cat bounce, expecting another bearish wave cycle. I interpreted the sideway structure that came out after January as a green wave B within the 5-3-5 ABC correction. If we see another bullish trend breaking top of the black channel above, possible target prices for wave B are $53.6k~$54.8k and $57.2k~$58.4k. In a bigger picture, red wave C can be targeted at $22.3k~$23.6k and $17.8K~$19.5K which can also be considered as possible resistances. This scenario becomes more likely if bottoms of the black and green channel fail supporting. - Scenario B is my bullish counting that assumes $32.9K low as the end of the corrective wave cycle and regarding the bullish wave after as an impulsive. It seems that support of the red upward trend line is currently being tested and if successfully supported, we cannot exclude the Leading Diagonal wave 1 scenario. If it fails supporting and cause more bearish momentum, I would say $37.8K~$39.5K is a significant zone which is a confluent zone of the black channel bottom and HVP(High volume peak) level. This scenario is to be ignored if Bitcoin makes a swing low, breaking $32.9K and forming LL(Lower Low). If somehow Bitcoin becomes very bullish making a higher high, the target prices for the impulsive wave can be deducted as $72.5k-$74.0k and $77.5k-$79.0k. - The following two scenarios have considered wave structure above $28K as 3-3-5 Flat Correction. Scenario C has taken widening or broadening patterns into account which are commonly observed these days. Considering 3-3-5 Expanded Flat correction, this scenario expects to break the $28.9K bottom, making a V-shaped price action at the stop-hunting level and the bottom of the disjoint channel. If the $53.6k~$54.8k resistance fails rejection, this wave counting becomes invalid. The green wave 5 or red wave C can be targeted at $22.3k~$23.6k and $17.8k~$19.5k below. - Scenario D is similar to C, but has a shorter green wave 5, meaning Truncated wave 5 or C is expected. This very case interprets the wave structure as a running flat corrective and expects to not break the bottom of the black or green channel below. $37.8K~$39.5K would be a decent target range. If bottom of the upward channels fails supporting, $29.1k~$30.8k which is the bottom of the smaller widening pattern formed after $32.9k, can also be considered as a short-term support zone. - (Summary) The most imminent point to pay attention currently is to confirm whether the red bullish trend line can successfully support. The next support levels to keep our eyes on are around the bottom of the black and green channels. However, if this zone breaks, I would become very bearish expecting price to drop and reach $28.9k which is a very important LVP(Low Volume Peak) pivot level. If the market becomes worse making another huge drop, the area where the lower widening pattern and the stop-hunting level overlap around $22.3k~$23.6k and $17.8k~$19.5k, would be one of the most attractive buy zones. If additional bullish rallies are observed, the resistances to consider in between are $53.6k~$54.8k and $57.2k~$58.4k. Lastly, in a much bigger picture, if Bitcoin successfully swings high making a new historical high, I would say $72.5k~$74.0k and $77.5k~$79.0k are areas to expect some rejections.
by Tommy_Trader
1
When will the rising beam of Russia and Ukraine end?#Bitcoin #4 hour #Binance #Tommy - 4 hours of Bitcoin. BTC broke the blue downtrend channel upwards on 3/1, but BTC re-entered the channel again without showing any retest support at the top. - Since then, BTC is moving towards lower highs and lower lows with resistance from the black inward trend line. In the case of a break above this intrinsic trend line, I think the upper part of the widening pattern and the upper part of the blue downtrend channel overlap the resistance zone. - The corresponding resistance section is 40 .5k~41.1k, and it is a section that we are paying attention to as it is located at pre-LVP , 200 EMA of 4 hour, and black rising channel EQ. If BTC reaches it before 3/9 21:00, you can respond with a sell position, but if BTC successfully break through that section, additional buying may occur. - The additional resistance section we are looking at is 42.8k-43.5k, where several LVP, the 0.705-0.786 retracement of the downtrend, and the short-term upside channel retest overlap. - One part of concern is that, like the image above, these days, Expanding triangle patterns often appear. In the current situation, if BTC cannot successfully break through the trend line and go to lower the low once again, there is a high possibility that BTC will flow into a similar state to the 2/20~2/24 down wave. - 34.9k~35.5k, the 1st support section, where the lower triangle (lower widening), green short-term downtrend line retest, pre-LVP, black uptrend channel bottom, and 1.13~1.272 stop-hunting extension level of the uptrend pass at the same time It is under consideration and is valid until 3/12 19:00. - If this support line breaks, it is likely to show that the second support section, 32.2k~32.8k is open. Reaching this far means that the 32.9k, which is the major bottom, has been breached, so if there is no significant rebound, it is better to respond while clearing the volume (split stop loss)
by Tommy_Trader
Broadening Formation & Wedge – Indices – EU50 - Daily - ShortCAPITALCOM:EU50 Looking at the upward trend from March 2020, we can see that you will get various readings depending on where you place your trend line. Due to this and not specifically knowing if the stock is in a downtrend, I placed my trendline to match the newest low. This is because, in an uptrend, this could be the retracement followed by a move higher, and this has been known to happen in indices. Remember that indices are a collection of top-performing companies, so the price typically goes up. Based on this, now I make my analysis. I can comfortably say that if it is pushed past this new low, the uptrend is probably over. You can see the ascending broadening formation that begins in April 2021 and move, creating new higher highs till January 2022, where the price starts to lose its momentum. It subsequently creates a wedge with a series of lower highs but is still supported by the bottom support level, which is proving difficult to push past. If you take note of the volume for each valley that hits this support level, you will see that it is above average. This happens every time the price moves there. This means that the support level in this area is a potent one. Not to mention if we look at the price here, you will find it sitting at a tidy round number (4000 EUR). From this, we can assume that buys have bought in here and are determined not to let price breakthrough. However, if we look at the tightening wedge, along with the series of lower highs, the partial decline, and the volume just days prior signaling all the selling pressure, we can perhaps be inclined to think that a decline in price is on the way. Moreover, the wedge has formed what looks like a double top, but we will have to wait for the price to break the 4000 (Euro) mark in order for it to be confirmed. I would suspect that if the price drops and closes below 4000, then there would be a potential short position. You might think that the previous valleys with their large volume would be a barrier to the short move if it does break, but I think they are too close within the price reach to be of any significance. You could perhaps look at the first valley as your profit target. That would be approximately at a price 3853. If you jump in at 4000 or just below as I suggest, you are looking at a target of 5 to 1. Remember that your stop would be just above 4000. This is because in the event that this is just a retracement, you would want to be out of the position immediately. You could even tighten up your stop to increase your risk to reward, but I would wait to see what the indices does before taking this strategy.
CAPITALCOM:EU50Short
by DevlonJarrodHorne
AAPL - Sign and ConfirmationThe long upper wick of the candle is a sign of price rejection. The first bearish pin bar on November 22, followed by another higher high long upper wick candle on December 1, is a sign that the trend is about to bend. Confirming the two sign is followed by another higher high with Bearish Engulfing Candle, this candle pattern could be the confirmation that the upward trend is done. And also, if you draw a line, you can see that there is a Bearish Broadening Wedge forming.
NASDAQ:AAPLShort
by Damako
SNAP Broadening Formation BreakoutHere we see a right angle broadening formation, with the accumulation line on the bottom. What appears to be an island reversal pattern appeared in the daily chart, marked by the yellow rectangle, which is typical of congestion patterns like this. Broadening formations are typical of late stage bull markets and are accompanied by irregular volume throughout. A majority of broadening formations carry bearish implications, and a breakout occured today in SNAP, although not by the generally "safe" 3% margin. I would expect a throwback, but the pattern implies a -65% move to the downside to 17.5, although not necessarily soon.
NYSE:SNAPShort
by BarnardR
2
Broadening TopWhat Is a Broadening Formation? A broadening formation is a price chart pattern identified by technical analysts. It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling. It usually occurs after a significant rise, or fall, in the action of security prices. It is identified on a chart by a series of higher pivot highs and lower pivot lows. Understanding Broadening Formations Broadening formations occur when a market is experiencing heightened disagreement among investors over the appropriate price of a security over a short period of time. Buyers become increasingly willing to buy at higher prices, while sellers find ever more motivation to take profits. This creates a series of higher interim peaks in price and lower interim lows. When connecting these highs and lows, the trend lines form a widening pattern that looks like a megaphone or reverse symmetrical triangle. The price may reflect the random disagreement between investors, or it may reflect a more fundamental factor. For example, many countries experience broadening formations due to heightened political risk ahead of an upcoming election. Different polling results or candidate policies may cause a market to become very bullish at some points and very bearish at other points. Broadening Tops: Important Bull Market Results Overall performance rank for up/down breakouts (1 is best): 22 out of 39/28 out of 36 Break even failure rate for up/down breakouts: 18%/27% Average rise/decline for up/down breakouts: 42%/13% Throwback/pullback rate: 67%/67% Percentage meeting price target for up/down breakouts: 66%/42% The above numbers are based on 1,215 samples for upward breakouts and 804 for downward breakouts.
Long
by Crypt0_Ninja
1
Reason why I am bearish on 10Y T-Note#ZN1! #10YearTNote #Weekly #CBOT - I took a deep look into the 10-year Treasury Note, futures commodity. The chart above is weekly. - In Elliott Wave Theory perspective, an assumption has been made that the bullish wave starting from the swing low at 117’13’5 to the swing high at 140’20’0 as am impulsive 5-3-5-3-5 zig zag wave structure. - With that said, I am weighing more on the possibility that the bullish wave from 130’25’0 to 135’15’0 is an 5-3-5 ABC corrective phase and this scenario becomes a bit more solid if bottom of the blue channel fails supporting. - While expecting another corrective wave, a major confluent zone to keep an eye on is the red circle on the chart. This is where an inner downward trendline, a neckline (green trendline), and 0.382 retracement level overlaps. - However, entering long here seems quite risky considering the RR ratio. Also, if the potential neckline (green trendline) breaks below, I am way more bearish expecting widening/broadening pattern. - Those aggressive traders willing to take the risk here (buying at red circle), make sure to set a tight stoploss. I would rather be patient and wait until the price action gets confirmed and enter short if the trendline fails supporting. - Here are some of the decent areas to enter long position if the H&S case is likely after observing failure of support at the neckline: 128’5~129’5 and 124’9~125’9.
CBOT:ZN1!Short
by Tommy_Trader
SPY Crash - Prediction and explanation.This is my analysis of the market, specifically the S&P 500. Indicators and fundamentals that point to a massive drop. The formation identified is called a Broadening Formation (aka Megaphone Formation) Here's the link to better explain the formation in detail - www.investopedia.com As stated in the video, if you have a difference of a opinion, I would love to hear it and learn how you got there. I'm always willing to learn something new.
AMEX:SPYShort
0
by ReadyFor401k
13