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Harmonic Patterns

Break support/Resistance , give confirmation?Break support/Resistance , give confirmation? - We usually trade base on S/R to find the entry point, exit or to predict the trend. - One of an effective and simple way in trading is to trade when price breakout from a S/R level - However, to identify an area or a point of good S/R in trading is mostly based on trading style, knowledge and trading experiences from each individual. Today I would like to talk about Breakout in trading. When it is breakout, when it is failed breakout. Before talking about breakout, we need to identify price closes above a S/R level or below a S/R level . Examine the below chart: However, in the chart we also find the situations that market didn't follow the mentioned rule. In the above case, if we carefully examine, we would see a pair of candle close below a resistance zone and make price go down. And price is still following rule of breakout and give confirmation as usual. There are a lot of S/R appear in trading market. So, we have to choose by our own which is the S/R zone to play in each situation depending on our own experiences. No situation is exactly the same with each other! In the same above situation, at the same S/R level that we identified and used before, prices move differently (at that points, mostly our stoploss is hunted) Here, experienced traders would easily recognize failed breakout based on trend analysis, or the way prices breaks, or at least don't follow the breakout. We can analyze in a simple way as follow: And then price continues its trend I have presented some simple cases of successful breakout, failed breakout or fake breakout in the above chart. I would like to receive the contributions from the community to learn from each other. Noone is right or wrong all the time. Every wrong or right cases have its own price. Hope that people would not keep silence instread of telling what you know or learned. Nothing has its own value unless it spent some prices. I hope that people would give a way their knowledge, don't try to hide for your own if not we are all failed to this market. More information www.investopedia.com
Education
by DatTong
14
Break support/Resistance , give confirmation?Break support/Resistance , give confirmation? - We usually trade base on S/R to find the entry point, exit or to predict the trend. - One of an effective and simple way in trading is to trade when price breakout from a S/R level - However, to identify an area or a point of good S/R in trading is mostly based on trading style, knowledge and trading experiences from each individual. Today I would like to talk about Breakout in trading. When it is breakout, when it is failed breakout. Before talking about breakout, we need to identify price closes above a S/R level or below a S/R level . Examine the below chart: However, in the chart we also find the situations that market didn't follow the mentioned rule. In the above case, if we carefully examine, we would see a pair of candle close below a resistance zone and make price go down. And price is still following rule of breakout and give confirmation as usual. There are a lot of S/R appear in trading market. So, we have to choose by our own which is the S/R zone to play in each situation depending on our own experiences. No situation is exactly the same with each other! In the same above situation, at the same S/R level that we identified and used before, prices move differently (at that points, mostly our stoploss is hunted) Here, experienced traders would easily recognize failed breakout based on trend analysis, or the way prices breaks, or at least don't follow the breakout. We can analyze in a simple way as follow: And then price continues its trend I have presented some simple cases of successful breakout, failed breakout or fake breakout in the above chart. I would like to receive the contributions from the community to learn from each other. Noone is right or wrong all the time. Every wrong or right cases have its own price. Hope that people would not keep silence instread of telling what you know or learned. Nothing has its own value unless it spent some prices. I hope that people would give a way their knowledge, don't try to hide for your own if not we are all failed to this market. More information www.investopedia.com
Education
by DatTong
11
Support and Resistance, A way to draw a horizontal line !Support and Resistance, A way to draw a horizontal line ! Support, S and Resistance, R 1. Definition 1.1. Support is a zone where price moves up. 1.2. Resistance is a zone where price moves down. - Support and Resistance can interchange when that zone is overcome by price 2. Support and Resistance levels 2.1. Horizontal line 2.2. Trendline 2.3. Moving averages 2.4. A Fibonancci level that you often use (Fibo 61.8) 2.5. A ratio of pattern AB=CD , or a Fibo derived from Harmonic pattern …. Support and Resistance level are mostly depending on the trading skills and experiences of individuals You and me would discuss a way to draw a horizinteal line - S1: Change the chart to Line chart (because I prefer Closed price) - S2: Choose zones where price is mostly reacting to that zone, then draw a horizontal line at those zones - S3: Change back chart to candle chart of bar chart and adjust the horizontal line to make it look approriate Just only 3 steps for us to draw a support/resistance line o Attention: - I emphasis that Support/Resistance is a zone, not a line. We usually based on historical data to plot the horizontal support/resistance zone. There fore, the close of candle or the shadow of it getting over that zone are quite common - Because we base on historical data to plot it, so it doesn't have significant value in some specific cases. Not every time that price approaches that zone and bounce back. And not all the bouncing back case meet our expectation. - All should depend on the surrounding theme of market, we have to look careful on specific cases to consider applying the Support/Resistance zone logically. - All market are freely traded so there is always a chance to form a brand new Support/Resistance . Good luck !
OANDA:XAUUSDEducation
by DatTong
23
Support and Resistance, A way to draw a horizontal line !Support and Resistance, A way to draw a horizontal line ! Support, S and Resistance, R 1. Definition 1.1. Support is a zone where price moves up. 1.2. Resistance is a zone where price moves down. - Support and Resistance can interchange when that zone is overcome by price 2. Support and Resistance levels 2.1. Horizontal line 2.2. Trendline 2.3. Moving averages 2.4. A Fibonancci level that you often use (Fibo 61.8) 2.5. A ratio of pattern AB=CD , or a Fibo derived from Harmonic pattern …. Support and Resistance level are mostly depending on the trading skills and experiences of individuals You and me would discuss a way to draw a horizinteal line - S1: Change the chart to Line chart (because I prefer Closed price) - S2: Choose zones where price is mostly reacting to that zone, then draw a horizontal line at those zones - S3: Change back chart to candle chart of bar chart and adjust the horizontal line to make it look approriate Just only 3 steps for us to draw a support/resistance line o Attention: - I emphasis that Support/Resistance is a zone, not a line. We usually based on historical data to plot the horizontal support/resistance zone. There fore, the close of candle or the shadow of it getting over that zone are quite common - Because we base on historical data to plot it, so it doesn't have significant value in some specific cases. Not every time that price approaches that zone and bounce back. And not all the bouncing back case meet our expectation. - All should depend on the surrounding theme of market, we have to look careful on specific cases to consider applying the Support/Resistance zone logically. - All market are freely traded so there is always a chance to form a brand new Support/Resistance . Good luck !
OANDA:XAUUSDEducation
by DatTong
31
How to Trade a Scythe Pattern (SPY used as example)I see these all the time on 5-m charts. I attribute them to algos trading shares with each other. The way price action advances and declines (and the speed), leads me to believe computers performing high speed day trading with one another. That aside, be on the look out for them! They can sometimes be a wonderful tool to predict a large price movement in short time. I've included a 5-m chart of this pattern below. Refer to it after reading: To trade the Scythe Pattern: SHORT when you see this pattern after an uptrend or high (like the example illustrated below - SPY 2.17.2021), go LONG when you see the inverted scythe at the bottom of a downtrend or low. I treat it as a modified cup & handle. I use the measurement from the base of the scythe beard (lower left edge) to the top of the blade (see rulers in image below) I regularly see this pattern break out above the tip (fake out) before ripping in a cascade fashion lower. Look for this pattern where you see price cascade on lower time frames (1-10m). The tighter the price action in the scythe blade, the more accurate the results. I have not tested this pattern on higher time frames, but I am currently doing so with some hourly/daily/monthly charts I've identified. More often than not , I spot this at a high and realize that I should either avoid going long or open a short. This pattern wrapped up the trading session on 2/16/21, predicting the gap down to follow. Again, the dynamics of the scythe are much more clear on lower time frames. So add the scythe pattern to your tool chest and let me know how you like it. Enjoy!
AMEX:SPYEducation
by SLOPolarBear
29
Important for any new futures traders!Going to keep this simple here. The price of bitcoin has sky rocketed these past few months. During the spring & summer time a few hundred dollar move in price would be crucial! Now the price of BTC is lingering around 50,000. Those small movements that where only a few hundred dollars are now thousands. 👉 My point here is that anyone using anything above 5x Leverage is critically risking there portfolio. 💀These shake outs & wicks are future traders death call. 📈 Lets took a look just recently when BTC had closed above its critical resistance level at around 49,400. Many individuals had purchased or over leveraged thinking price will move up after confirmation. (Bull trap) On average the price shifted down about 3%. Anyone more then 20x leverage would have for sure gotten a margin call or suffered liquidation. 👇👇👇 My point is price is too high for individuals to think that over leveraging will yield them higher returns. Trade futures with risk management and the correct way. The reasons exchanges offer up to 100x leverage is so they can make money.
BITSTAMP:BTCUSDEducation
by BigLava
8
Bitcoin (Gann Fan) Tutorial BasicsGann fans are a form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of lines called Gann angles. These angles are superimposed over a price chart to show potential support and resistance levels. 🌀 The Gann Fan was developed by W.D. Gann. 🌀The Gann Fan is a series of angled lines. The user selects the starting point and the lines extend out into the future. 🌀Gann believed the 45-degree angle to be most important, but the Gann Fan also draws angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. 🌀The Fan is started at a low or high point. The resulting lines show areas of potential future support and resistance. The Difference Between a Gann Fan and Trendlines The Gann Fan is a series of lines drawn at specific angles. The 45-degree line should extend out 45-degrees from the starting point. A hand-drawn trendline connects a swing low to a swing low, or a swing high to swing high, and then extends out the right. The trendline is matched to recent price action and is not drawn at a specific angle. Step By Step - Application; Gann is a popular tool & has many resources available online - This breakdown was just a quick look into how to apply them. Please feel free to send questions below. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
149
Using Harmonic Pattern Completions to Set Direction of TradeIn this short Tutorial I discuss using Harmonic Pattern Completions on Higher timeframes to give you direction of a trade. Then moving down to a day trading timeframe and using the xbratalgo to give signals in the direction dictated by the Harmonic Pattern. And then using the Divergence Cloud to confirm trade. I used Silver Futures as an example in this video, but the strategy is the same for stocks, forex and cryptocurrency. I hope this helps
COMEX:SI1!Education
by PBratbyOfficial
Bearish Gartley Pattern - The Warning SignHello, dear subscribers! Let's consider the most common bearish sign which can be founded on the market - the bearish Gartley formation. This pattern takes place when there was a huge dump like from point X to point A. After that we have the small bounce from A to B, but the decline continue from B to C. There is a massive growth almost to the the X point level (see point D) at the end of this price action. It seems that the downtrend is over and bulls dominate again. We can see two signs of the new uptrend beginning: the higher lows (point C is higher than A) and highs (point D is higher than B). Here is a big danger now. Until the price is not reached the X point level, the bearish Gartley pattern formation can play. If the Gartley pattern have approximately the same characteristics as numbers on the chart there is the high probability of price dump to the price level between points A and C. Be very careful when you analyze the trend reverse opportunity, this bearish sign can take place. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
Volume Profile and Losing Trades (A Cool Trick Explained) 💪Hello guys, trading it not just about taking winners. Losing trades are also part of the business and there is no point denying it. In my trading career, I took hundreds of losers (maybe even thousands) and I feel no shame in that. Today, I would like to talk about a recent losing trade which I had on USD/JPY. Let me first talk about the logic behind this trade – the reason why I took it. The logic behind the trade In the last week of 2020, there was a zone where heavy volumes got traded. It was at 103.53. This was the Point Of Control (POC) of the whole week – this means the heaviest volumes throughout that week got traded there. From this place, the price went sharply downwards which indicated that there were strong sellers present and that they entered most of their Short positions at that POC (103.53). The idea behind my trade was to wait until the price reaches this Weekly POC again and enter a Short trade. I expected the sellers that entered their Shorts at the POC would defend this area and to push the price downwards from there again (this setup is called the “Volume Accumulation Setup“. That didn’t happen tough… How the trade went? I went Short fro 103.53, but there was no selling reaction whatsoever and the price just shot past the level. I took a loss there. After that it was time for me to shoot a Daily video for members of my trading course. In that video I talked about this losing trade and I said that if there was a pullback to the same level (103.53) it would be a nice place to open a Long position. Why I said that? Reversal Trade There were two reasons why I wanted to take a Long from there. The 1st reason was that there was a very strong, volume-based trading level (Weekly POC) breached. This is quite unusual, because such a strong level as Weekly POC should trigger a reaction! The 2nd reason was that the price just shot through the Weekly POC without ANY sort of reaction. This is important, because it indicates that the Buyers were so strong and aggressive, that the Sellers didn’t stand a chance. You usually discover the strength too late (after you had taken a Stop Loss) – like in this case, but you can still emerge a winner from this, if you switch sides and join the winning party. The best way to do it is to wait for a pullback to the same level you entered your previous trade. Don’t chase the market. Wait for it to come to you. Then enter a new trade, but this time in the opposite direction. In this case, the first trade was a Short which failed, and the second trade was a Long (from the same level) after a pullback, which was a winner. I call this a “Reversal Trade“. Those work best if a very strong level based on a Volume Profile setup fails, and when there is no reaction to it whatsoever. Those are two main conditions to remember. I hope you guys found this helpful. Let me know what you think in the comments below. Happy trading! -Dale
Education
by Trader_Dale
3