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Harmonic Patterns

How To Use Bearish Wolfe Wave SetupThe key to recognizing the Wolfe Wave setups is symmetry. Ideally, waves 1-3-5 are established with very regular timing intervals between moves. The other key ingredient is that the wave 4 should revisit the price range established by waves 1-2 for the best results. Another way to describe the pattern is that it comes as a rising wedge / channel in an uptrend, or falling wedge / channel in a downtrend. Wave 5 is often a false breakout move beyond the bounds of the pattern. Unlike either bull or bear flags, the movement is in the same direction as the overall trend, with the overlapping waves giving signals that an impending reversal is taking shape. This pattern has different names, depending on the source - Larry Pesavento describes the pattern as "3 pushes to a top/bottom" and uses Fibonacci relationships to confirm the setup (waves 3 and 5 are 127% or 162% extensions of the previous pullback.) Jeff Cooper uses "Cooper 1-2-3 swing" nomenclature, and Linda Raschke likes to call this setup "3 Indians". The unique quality about wolfe waves, however, is the objective target projection from waves 1 -> 4
Education
by Anbat
1
The Evolution Of A Profitable Trader (Educational Idea)Hello traders , make sure to read this post . This is probably something that everyone need to read if he or she want to jump into the next level. Please Like to make this post reach as much as possible traders in order to Help the community. With that being said let's jump into the explanation. The average human is not wired to properly trade the financial markets. We are wired in the worst way to be a good profitable trader. We are emotional human being by nature. As a trader you are 100% responsible of your results. You cannot blame your mentor the market or any other person because you are the one behind the ''click'''. No one can manage external parameters more than you ( you can manage when to open close how much to risk etc...) This should be a very transformative post , and you should take advantage of that and use it to begin your cycle of positive momentum. Just like we are able to exponentially grow an account we can also use this opportunity to trade properly and compound your own results 1 stage : Self destructive Trader In this stage , you do not have rules , you do not respect the money Management and you believe in the holy grail. You are here to make money because you think in that get rich quick solution. Most of traders in this stage believe that there is a magic solution that it's going to make them money. Most of these traders tend to blame the market the mentor etc... They have so many back-up bridges available for retreat. They have a backup plan if it doesn’t work out and their attention is scattered  across different areas that won't help to improve. They are already preparing mentally for failure. These are the part-timers GAMBLERS. They have a Plan B and C and on and on to the last letter of the alphabet. They doubt their decisions and jump from one thing to the next. How many traders have you seen changing form one strategy to another? from one class of assets to another? , from one course to another technical course? In order to become profitable you should know that the outcome does not come from the market . You are the Problem and good news you are also the solution. In the related section you will find post that is going to change your trading. just follow us for more content. 2 stage Booms and Bust Trader. In this stage you have probably lost your first account ( like me at the beginning) , you realized that all they have been told you about the markets it's real. you can make a lot of money and you can lose a lot of money. Most of traders stay in this Stage sometimes for years. You already have a trading system , but most of your problems come from your perspective and your actions. Between the perception and the action there is a space and it's up to you to chose the response . You must learn that this is not a get rich scheme. You need to understand that you need to build subconscient proper trading habits to PROTECT YOUR ACCOUNT. 3 Profitable trader In this stage you probable have overcome the worst moments in your trading carrer and you realized that you should play with probabilities . In this stage profitable traders have a probabilistic approach that a few minority of the traders use. This approach is not based on predicting anything; rather is a precise pre-defined system of pulling the trigger when your system or edge presents itself, and the outcome of the trade is irrelevant Win lose , Breakeven , who cares. You don't focus or you don't expect anything from one single trade rather you focus on the outcome of a series of trades. You effortlessly pull the trigger no matter what when your charts meet the criteria of your system or edge. We take a series of trades, and we are entirely focused on the outcome of the series, and NOT the outcome of each individual trade. The outcome of each trade and attempting to predict the outcome of each and every trade is an non sense battle because humans are designed to expect what they predict. It is difficult to implement your system or edge in the markets flawlessly if we become attached to any one single prediction. Like most of those retail gamblers that expect everything believing that their life depends on one single trade. we do not know what will happen next; we don't need to know what is going to happen as mark Douglas say : the only certainty is the markets uncertainty. Hope this post was helpful , make sure to follow and support this idea to impact more traders. What advise would you give to someone in order to become Profitable? Comment your thought Please do Follow and Like this post in order to support this work. AFX1
Education
by AIRFOREXONE_
21
How To Trade Cradle PatternThe Cradle Pattern Normally it should be a signal of reversal of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The Pattern starts with a long and black Candle, during a downtrend (Due to the Traders that are selling because they are worried by the downtrend). – Then there is a phase of indecision in the Prices (There are Doji Candles, Spinning Tops, Hammer, Inverted Hammer), so the Prices remain in a precarious balance. – At the end of the Pattern, starts a rise in the Prices with a long and white Candle (That shows the strength of the rise).
Education
by Anbat
How To Trade "W" Pattern5 Tips to trade W reversal patterns: 1) Only trade W’s off the lows 2)Only trade W formations London & NY Session 3)Wait for the second leg stop hunt to the high/low of the day to confirm entry 4) Asian consolidation range should be very well defined 5) Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking Each day there is a new high and low that is created.Trade the “W” formation reversal pattern at the lows. This is a universal guide to trading W formations on any pair in Forex. This works on all time frames under the daily time frame. We recommend back testing everything we have highlighted in this post for greater clarity of the power you are tapping into! The concept of trading M and W patterns The retail trader masses may be dumb, but they are not that dumb. They will always continue to look for confirmation in order to validate their trades. So, we must understand the reverse psychology behind why the M and W pattern is such an effective reversal strategy. The confirmation the masses use to determine a trend is the creation of higher highs and higher lows in the case of an uptrend.
Education
by Anbat
How To Trade "M" pattern (part 1)5 Tips to trade M reversal patterns: 1) Only trade M’s off the highs or overbought/supply areas. 2) Only trade M & W formations London & NY Session 3) Wait for the second leg stop hunt to the high/low of the day to confirm entry 4) Asian consolidation range should be very well defined 5. Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking. These patterns occur on all scales and on all time frames. The time frame above is on the 4 hr, here we can clearly see the structure of the different sessions that occur on a daily basis. The best sessions to trade are London Session and New York Session. These sessions will present the best reversal setups. Asian session should be avoided as there is very little movement.
Education
by Anbat
BTCUSD: 2 simplest strategies to buy & sell in any time frame1. Buy: 1.1. In any time frame we buy when price is seemingly plunging & RSI is gaining strength. Here we "MUST" watch only. 1.2. Then, a consolidation starts during which we can be almost sure that there will be no more descending move. 1.3. Being familiar with Harmonic Patterns during growth, consolidation & downturn cycles would of utmost help. 1.4. Next is a rhyming of HHs & HLs and RSI (14) is implicating the end of a previous cycle & the new coming one. 1.5. With RSI (2) you can see at least 2 very low figures less than 10 rising and falling followed by the 3rd HL which can be a trigger. 1.6. The latter is true in daily & weekly time frames when Elliot wave counting has been done. 2nd & 4th Elliot's Corrective waves out of 5 impulsive waves reacting to the most important corrective fib levels while price is so close to the "dynamic logarithmic support" of weekly time frame price channel. 2. Sell: 2.1. In any time frame, we sell when price is seemingly going higher while RSI (14) is getting weaker. 2.2. In weekly time frame price can touch or cannot touch the "dynamic logarithmic resistance" in the first nearest distance or a complete touch with price channel. 2.3. While in daily it is showing weakness specially in the second touch with channel. 2.4. This is most true when the latter is accompanied by price getting closer or touching "dynamic logarithmic resistance" of weekly price channel while in Elliots wave counting either 1st impulsive wave, or the 3rd & the 5th ones are formed. 2.5. This (RSI Weakness coinciding with the 1st, 3rd & 5th Elliots) can be rechecked by setting fib projection levels. Volume & the total market index for weekly and daily time frames need to be checked as well. What has been said is very easy & obvious in a way while very complicated in another way. One needs to find its own trading/investing style which best suits his personal needs & capabilities. Any strategy has to be addressed only if there is a plan in advance. A plan has a natural deviance from reality all the time & might not yield best returns on investment, but it guarantees survival & resiliency of the business. This is for learning purposes only and is not a financial advice.
Education
by Morteza-Emzajerdi
1
(How To Trade) Diamond Pattern or ABCD PatternYes, possible 4 obvious trades on hourly chart of GBPNZD on Thursday (two sells and two buys), you need to ask yourself HOW could you have entered these trades with right risk management related to- lot size, entry price, stop loss and target? Diamond Pattern is a harmonic pattern. What do you always need to be aware of is bigger picture, like the following: You should use support and resistance and Fib ret. tool in trading. - What is GBPNZD doing on higher time frames, earlier this week, etc... - What is GBPNZD current ADR? - What pair are you trading? - Any news events that have or will be happening? Noted: on chart two new events that actually were part of revering short term trends. - What is current price? any psychological numbers around current price? triple 000 or 500 numbers on charts? - What are sessions currently open? With GBPNZD on left part of chart is when Sydney is open, so AUD and NZD are being traded - what is price action doing? - What is time in session? you would need to know exact time where currency is being traded: Convert Sydney time to your time, Convert Tokyo time to your time, Convert London time to your time and Convert New York time to your time. Trading Forex is really not difficult, but you need to always with with big banks and not trade against them. You need to be able to understand candlestick language and what each one is telling you in the bigger context of price action. This is all about probabilities and if you employ a certain strategy or edge- how many times out of 100 trades would you win? not gambling!!! Really, look at hourly charts and higher ones of any pair- put in the homework, take notes and be one with Forex- then you will succeed.
Education
by Anbat
japanese candlestick patterns (engulfingbar bar)the engulfing bar: an engulfing pattern signals a reversal, and can be bullish or bearish. It comprises two candles. the body of the second one must engulf the body of the first one. There are two type of engulfing bars The bullish engulfing bar that cosists of two candles. the bosy of the second candle is greater in size than the previous candle. This pattern is considered to be reversal, because when it appears in a downtrend, it signals a revesal. The bearish engulfing candle consists also two candles, but it is the opposite version of the bullish engulfing bar . Be cause when it occurs in the end of an uptrend, it signals a future price reverse.
OANDA:XAUUSDEducation
by tradeplanprofit
2
japanese candlestick patterns (pin bar)The pin bar: It is candlestick pattern that consists of just one candle, it has a long lower wick and short body and little or no upper wick. Strictly speaking, the lower wick should be at least two times longer than the body, the longer, the better. There are two types of pin bar , the bullish pin bar which is a reversal candle that occurs at the end of downtrend and reverse the trend. A bearish pin bar which is also a reversal candle that happens at the end of an uptrend and revers it As you can see this chart, almost pin bar appear the trend will change reversal. This is one of the best in price action.
Education
by tradeplanprofit
japanese candlesstick pattern (doji)The Doji is a candlestick where the opening and closing prices are the same (or almost the same). It can take many forms; as shown here; depending of what the trading activity was in that period. The Doji candlestick indicates that neither sellers or buyers have gained control, and that price has ended where it began. It is a sign of indecision in the market. Let me show you an example below : In the chart above, you can see different types of the Doji candlestick pattern. This candlestick gives us a clear image about what happened in the market during the specific time period. In this hourly chart above, the formation of the Doji means that buyers and sellers are equal, no one is in control of the market during one hour, which is the time of the Doji candlestick formation. You can't use the Doji alone to make your trading decision, my goal in this first lesson is to help you read charts by being able to identify and understand candlestick patterns formation, so when you see the Doji candlestick pattern for example, you know that during that period of time the market was in an indecision phase and sellers and buyers are equal. This is the most important information that the Doji gives us when it forms in the market.
OANDA:XAUUSDEducation
by tradeplanprofit
How to REALLY Become Profitable ? 🔥 (Education)Hello traders , today we are going to talk about a very delicate subject. Yes Tradingview is a place to share technical analysis with the community , however we should also share from our experience , what we believe it can bring value to the table and help other traders worldwide to become profitable. Before continuing do us a favor. Make sure to GIVE a like in order to help this post become an editor pick and reach worlwide traders. How To really become profitable? The average human is not wired to properly trade the financial markets..We are wired in the worst way to be a consistently profitable trader. trading goes against the human psychology. To all those learning to trade the financial markets, this game is not what you think it is. Most books and courses simply do not paint an accurate picture of the reality Most of traders think the only way to become profitable is by working hard and focus in the technical strategy. The truth is that all of that is absolutely wrong. Here's a list of 6 elements that from my experience are game changers to slowly extract consistent profits from the market. Do us a favor and share another in the comment section that you believe is important. Our goal is to make from this post a place to help us each other from our experience. Risk Management That is the number one killer and doer. for most traders; they open a position size much larger than they can handle or much larger than what is appropriate for their account size. They want to make miracles with small accounts. Do not chase the money , chase the skill. In that way money will eventually come. There are investors ready to trust you 6 figures if you prove them you can handle it like a pro. The problem is that by not really managing your risk you will let emotions run your perception. When emotions increase , accuracy decrease. Trading is a Game of probabilities you can do everything right and end up wrong and you can do everything wrong and end up winning. Make sure to have a proper position size and manage your exposure or you will have nothing left to manage. Proper Psychology After all these years, I would say that the majority of trading the financial markets is primarily a psychological painfull skill. It is not an advanced holy grail system or strategy. For most traders trying to chase consistency, they believe their system always needs changing, and they focus more on the "analysis" side by reading more books and taking more courses, hoping to find that secret system. The system can be based on a coin toss, and with the proper psychology, this trader can outperform a psychologically-flawed trader but is using one of the best analytical methods. There are many psychological aspects you should focus. We can talk years about it. I advise you to read Mark Douglas for that. One of the most important things is to Dissolve all your fears. You must understand how it runs your trading. Understand and have a deep talk with yourself to see the way fear control your mind. Fight against Fear of being wrong , losing money , distribute profit, missing out . By other side you must understand the neuro associative conditioning that created good trading habits and self destructive habits. Discipline in healthy external habits. Poverty is a habit / wealthy is a habit / life is a habit. As Paul Sartre said, we are our choices. What we do with our 24 hours will define the kind of person we are. This is all about changing and adopting proper habits in your pro and personal life. If you do have side issues like bad habits or (girlfriend / parents /friend / work etc.. ) they will make it difficult to execute a proper system in your trading. All those bad vibes will send resistive energy and when you get this energy you can either shut down or step through and doo exactly what you are supposed to do regardless. take care of your personal habits and problems. Avoid bad habits that drain your energy and focus here are some: Wake up late vs. 5 am morning Partying 24/7 vs. Learning Being lazy vs. being a doer. Social media vs/ productivity. Etc.… Before getting serious with trading, I I used to have a lot of bad habits that honestly, I’m not proud of it. But everything can change. The more I fall in love with the process and taking care of my habits and more my trading improve and happier I become. Think in term of probabilities Mismanaging risk is a bad habit most of traders have the worst trading habits because they asume the outcome. They assume they know what the outcome will be, so they bail out of trades. They think it will make them more money, so they risk more equity because they believe this trade is a high probability one that it will make them money. They have a trade by trade approach. They assume that after a few wins the next trade is likely to be a winner, so they are double up. They assume that after a few losses the next trade is likely to be a loss, so they do not execute By adopting simple proper ''SERIES OF TRADE APPROACH'' your outcome will change and you will become profitable. t it is the approach that a few minority of the traders use. This approach is not based on predicting anything; rather this is a precise pre-defined system of pulling the trigger when your system or edge presents itself, and the outcome of the trade is irrelevant. We take a series of trades, and we are entirely focused on the outcome of the series, and NOT the outcome of each individual trade. The outcome of each trade and attempting to predict the outcome of each and every trade is an uphill battle because humans are designed to expect what they predict. It is difficult to implement your system or edge in the markets flawlessly if we become attached to any one single prediction. The truth of the matter is that we do not know what will happen next; the only certainty is the markets uncertainty. Having your own personal predefined edge In fact. you need a plan , you need a strategy and you need a flawless execution. there is no doubt either it works or no. make sure to set rules to find good trades execute those good trades and let those good trades play out. Laser Focus learning curve Those who make it in this business were laser-focused; they made a decision to either be right or wrong. A laser shines a coherent beam of light and is powerfully focused on a single point. That point will undergo immense heat or pressure. Same applies to learning to trade. It requires all your energy to be put forth on a single objective. Compare this with a light bulb or the sun, which shines its rays outwardly with its energy distributed in all directions. You will barely feel the heat as the energy is unfocused and dissipates accordingly. This applies to those traders who have issues They doubt their decisions and jump from one strategy to another they chase the holy grail they change from system etc..... Focus in one pair or few pairs, one session , a clear defined profit system a clearly defined type of trading. Make a decision, and instead become focused like the laser beam on what it is that you desire to develop, and you are more likely to achieve your target. Please make sure to follow this profile if you found it interesting. Now let me know in the comment section about an element you find important
Education
by AIRFOREXONE_
27
Hollow Candles Explained and Examples! Graphic Guide Part 2What is Hollow Candles? Many traders day by day enter the platform without knowing the other types of existing candles, believing themselves "Professionals" and decide to stop learning because they believe that candles is everything, well if you like to learn, you are welcome to this guide in which we will explain how all types of candlestick chart work. Hollow Candles Hollow candles is made up of 2 types of candles. Bears and bulls, of course. And these at the same time have 2 divisions. Hollow Candle and Full Candle. The Hollow candle is usually empty. And the full candle is usually totally full. There is a lot of confusion when people ask the difference between a solid candle and a hollow one, as the question itself makes you think that you are comparing a hollow or solid candle to a traditional candle chart where all candles are solid. Traditional candlestick charts (which are well covered in our technical analysis guide) are all solid and behave completely differently than a solid candlestick on a hollow candlestick chart. Let's take a look at the new hollow candlestick chart language to understand how it works: Green Candle Rules in Hollow Candle Chart: 1- Regardless of whether it is hollow or not. It is greater than the previous candle. Full Candle Green in Hollow Candle Example: Hollow Candle Chart / Candle Chart - Example in Par Crypto, Jan 18, 2021, Kraken, Hollow Candle chart type, Time 1d: Hollow Candle: Change Candle: 2- Regardless of whether it is hollow or not. It is greater than the previous candle. Hollow Candle Green in Hollow Candle Example: Hollow Candle Chart / Candle Chart - Example on LTC exchange Coinbase crypto pair, May 5, 2021, Graph 1d. We can see that the green candle in the hollow candle graph is greater than the previous candle, fulfilling rule 2. Hollow Candle: Candle: Red Candle Rules in Hollow Candle Chart: 1- Regardless of whether it is hollow or not. It is lower than the previous candle. Hollow Candle Red in Hollow Candle Example: Hollow Candle Chart / Candle Chart - Example on Nasdaq, April 21 of this year. Period 1d. Hollow chart type then we change to Candles. Hollow Candles: Candles: 2- Regardless of whether it is Full or not. It is lower than the previous candle. Full Candle Red in Hollow Candle Example Hollow Candle Chart / Candle Chart - Example Nasdaq October 21, 2020. As we can see regardless of whether it is full or not, the price closes below the previous candle. Hollow Candle: Candles: Conclution Hollow candles give you a new way to see more information on a trading chart and to perceive when an uptrend or downtrend is forming based on a combination of hollow or filled candles and as you know, the more information we get when we trade , then the better we are! The most important thing is not to confuse them with traditional candlestick charts, as we now understand that they behave differently. Also, it is quite useful to identify Candle Patterns. That we will see later. Remember the rules are based on the opening and closing price, do not rely on the body.
COINBASE:BTCUSDEducation
by UnknownUnicorn18500526
13