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Reversal

Bearish Reversal Candlesticks PatternsHanging man The hanging man is the bearish equivalent of a hammer (bullish pattern). It typically forms at the end of an uptrend with a tiny body and a long lower wick. The lower wick designates that there was a large sell-off, but bulls headed to take back control and drive the price up. Holding that in mind, after a lengthened uptrend, the sell-off may act as a warning that the bulls might soon be losing control of the market. Shooting star The shooting star is a comparable pattern as the inverted hammer (bullish pattern) but is formed at the end of an uptrend. The shooting star is composed of a candlestick with a long upper wick, little or no lower wick, and a small body, ideally near the low. It indicates that the market reached a high, but then sellers took control and drove the price back down. Three black crows The bearish equivalent of three white soldiers (bullish pattern). The three black crows are made of three sequential red candlesticks that open within the previous candle’s body, and close at a level below the previous candle’s low. Ideally, these candlesticks shouldn’t have long higher wicks, betokening continuous selling pressure pushing the price down. The dimension of the candles and the length of the wicks can be used to estimate the chances of continuation. Bearish harami The bearish harami is a long green candle followed by a small red candle with a body that’s completely contained within the body of the previous candle. The bearish harami can unfold over two or more days, marks at the end of a downtrend, and may symbolize that buying pressure is decreasing. Dark cloud cover The dark cloud cover pattern consists of a red candle that opens above the close of the previous green candle but then closes below the midpoint of that candle. It can often be co-occurred by high volume, indicating that momentum might be shifting from the upside to the downside. Traders might wait for a third red candle for confirmation of the pattern. Best regards EXCAVO
Education
by EXCAVO
10
In Depth Look at Continuation & Reversal Structures/Patterns Hi everyone: In this educational video, I will explain how I determine reversal and continuation structures/patterns in the market. Many have asked me to break this topic down more in depth and in live, so I hope I can address all the questions I get on this. So, in my opinion there is only 2 main type of structures/patterns: Continuation Structures Reversal Structures The key to find consistency in price action trading is to identify what kind of correction the structure is forming. Is it a reversal, or is it a continuation? Since after a correction is finished, we are likely to see an impulse move from that structure, and it's good to understand when and how likely that structure will either continue or reverse the current price. Below I will list out some of the most commonly identified reversal and continuation corrections. To me, it's not too important what people call these structures/patterns, but what you need to determine is, is it a reversal or continuation structure? Because, the market is ever evolving, and price action structures/patterns are also evolving. Sure we can learn a lot from the typical “Textbook” structure and patterns, but they often or not won't be picture perfect, and we need to utilize what else the market is telling us to determine the structures. Continuation Structure -flag -channel -triangle -pennant Reversal Structure -wedge -ascending/descending channel -Double Tops/Bottoms (M and W pattern) -Head and Shoulder Understanding how the price has been moving thus far, will give you a more clear understanding of what the structure is going to form. For example: -When we see price at the top of a HTF structure, slowing down and correcting itself up, you will be looking for reversal structure from the top, and looking for the sell. -When we see prices broken out of the HTF structure, you will be looking for a continuation structure to form and continue the buy. As always ,feel free to ask me questions or comments. Thank you
Education
by jojofang0901
26
<<Reversal Patterns of Technical Analysis>> Hello, my lovely and so clever friends! Today we are talking about <> 🧡 💥 Head & Shoulders Pattern 💥 After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point. 💥Inverted Head & Shoulders Pattern 💥 An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones. It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful! 💥 Double Bottom Pattern 💥 After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 💥 Double Top Pattern 💥 A double top is similar to a double bottom. The only difference is that this pattern is reversed and occurs on uptrends. The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution. 💥 Diamond 💥 We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point. 💥Cup & Handle💥 Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure. Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣 My previous work for You 💋
BITSTAMP:BTCUSDEducation
by RocketBomb
17
GOLD - Using price patterns to time reversals of trends.With the market watching out for Gold to hit the $2000 level, once this occurred and broke higher you have to always be cautious and take a step back before jumping into any longer term trend continuation plays. When new record highs or lows get established in any market that is highly liquid, its good to keep your options open and try and look at the market with also a contrarian point of view as well. To many new and novice traders will just expect prices to keep climbing and jump into the move with no account for strategy, analysis or more importantly a study of price. Looking at Gold, we wanted to keep an open mind and read the price action especially when your looking for counter trend moves as this will lower the probability of a trade but when you are patient and follow the structure of price you can get some good nuggets of information that can really help you time your trade. As you can see on the 1 Hour chart, price was moving up nicely until it formed a bearish 3 drive pattern in the process. This pattern can be a good indicator of price exhaustion especially when you can see these being formed on no less then a 1 Hour time frame. Once we saw the pattern complete, that alone is not enough, we need to be patient and find a lower trend line, preferably with multiple hits registered on the line for if this breaks to the down side as well, this not only gives us good reason to enter the trade short but it allows for greater timing and accuracy of the trade. We would look to place our stop just above the 3rd and final drive high to start with, as we are trading the pattern so there is no need to place it very far away.
OANDA:XAUUSDEducation
by DavidVillagra
Bollinger Band and T-Line TimingHere is a method to track current trends and spot reversals. This technique combines two separate indicators, the Bollinger Bands (BB) and the T-Line . Bollinger Bands contain three parts. First is a 20-period simple moving average, the middle band ( purple line ). Second is the upper band and third is the lower band ( blue lines ). Both of the upper and lower bands are two standard deviations away from the middle band. This sets up a powerful and visual summary of historical volatility. Thus, price is unlikely to trade above the upper band or below the lower band. When price does move outside of these ranges, it retreats back into range very quickly. So, Bollinger Bands are a great “probability matrix” to time and control both entry and exit. Rick Saddler coined the term “ T-Line ”. The T-Line ( red line ) is an 8-day exponential moving average of price that yields surprisingly reliable signals for changes in price direction. The general rule is that when price is above the T-Line, it remains bullish until it crosses below and closes for at least two sessions. This sets up a bearish reversal. When price is below the T-Line, the prevailing bearish trend continues until price crosses above and closes above for at least two consecutive sessions. Taken apart, Bollinger Bands and the T-Line are powerful on their own. However, when used in combination, you set up a dynamic trading range, making it easy to spot when a trend begins and ends. As price advances, the BB upper band represents resistance and the T-Line is support. When prices are moving lower, the T-Line is resistance and the BB lower band is support. The chart for the S&P 500 (SPX) demonstrates the trend and exit signals this combination provides. The first crossover in early February was bullish, marked by the move of price above the T-Line. Price moved up over 45 points to the high before the crossover reversal. In late February, price was trending lower with considerable strength and many gaps. The retracements occurring in the second week could have been viewed as reversals, except for one important signal: Close price remained below the T-Line from February 24th entry at 3226 all the way down to End-March when it traded at a low of 2192. Price did close above the T-Line toward the beginning of March, but immediately crossed back and closed below the T-Line the next day. Since price did not close above the T-Line resistance for two consecutive sessions, this bearish trend continued. This was further supported by the BB lower band, marking dynamic support. On February 27th, price broke the Bollinger Band Support and created a Bollinger Band Snap. This could be used as an exit, since price had moved down almost 250 points from the open, resulting in a profit, and price is unlikely to stay trading below the lower Bollinger Band for long. If one exited based on the strong Bollinger Band Snap on February 27th, a re-entry can be taken on March 6th, with a confirmed close price below the T-Line at the 2973 price level and continuing down to about $2192. How would you know when this bearish trend would end? Resistance was marked by the T-Line and support by the lower Bollinger Band. This did not end until March 25th when price closed above the T-Line for the second session in a row, indicating an end to the bearish trend, and a total move of over 750 points. The third crossover took price back into bullish territory, this time marking the end to a four-week bearish trend and the start of a new bullish move. Price crossed above and closed for two consecutive sessions on March 25th. The S&P 500 moved up over 150 points, before it reversed and closed below the T-Line on April 1st. However, even though most of the price activity took place below the T-Line on April 2nd, it did not close below the T-Line. This type of price activity may warrant a protective stop since the close of the bar was just barely above the T-Line. Price moved back above the T-Line and continued its move higher with another one day close below the T-Line on April 21st. When did the actual trend exit appear? May 4th, when price closed below the T-Line for the second session in a row. This combined Bollinger Band and T-Line dynamic trend tracking is reliable and it can be used effectively in many ways. First, as shown at the beginning of the chart, it shows a long entry and provides profit opportunity as the index rises. Second, a crossover, with a confirmed second session close, is the exit point for leaving a current trend, taking profits, or for entering a new trend based on the newly revised price direction. Third, as shown in the February 24th trend, using a Bollinger Band Snap to signal a time to take profits and exit the position as price generally will retrace back inside the Bollinger Bands. Fourth, using a desired profit target based on historical research on the selected underlying and exiting once that profit target is reached. This solves the most disturbing aspect of short-term options trading. When do you exit a trade? Even with the lack of price-specific reversal signals, the combined use of the Bollinger Bands and the T-Line are a powerful and reliable system to improve timing.
SP:SPXEducation
by NewCycleTrading
39
Identifying supply & demand zone for swing tradingIn this video, I am going to how you how to identify supply and demand zone as support and resistance levels for swing trading, as a continuation of my previous video - identifying support and resistance for swing trading video. Feel free to watch below if you haven't done so: There is one key factor that I pay attention to, which is the price spread. I would like to see big spread bar where the price accelerates to the upside or to the downside. If we have access to the volume, we will generally see high volume for those supply or demand bars. Those big spread bars will form the supply or demand zone.
DJ:DJIEducation
by mingjong
Identifying support and resistance levels for swing tradingSupport and resistance are essential levels for all traders in swing trading. Before one can start placing orders on the buy/sell side, these key levels will form the battlefield for buying or selling. In the video above, I will show you how to identify the support and resistance levels for swing trading so that you can buy near the support and sell near the resistance to maximize our profit while keeping risk exposure low, to have a better reward to risk ratio.  Depending on your strategy, preference and personality, you always have a choice to participate the swing within the range or in a trend. Swing trader always aim to catch the swing low as early as possible and sell when the swing is ended.  Resistance becomes support level once it was broken up. Always extend the support level to the right and pay attention if the price respect the support level. Do treat support as a zone/area instead of single line/level.
DJ:DJIEducation
by mingjong
12
ES price action analysis for 2 Apr 2020 trading plan 1 Apr 2020 recap - Major movement of ES happened during non-RTH. Level 2450 was tested from the last 4 H1 bars and defended eventually. The last hour bar did spring the prior swing low and form a demand tail. The magnitude of the down move might be significant but without aggressive supply. Daily volume is slightly lower than the previous day (31 Mar 2020). Result - did not commit below level 2550 and the swing low formed on 30 Mar 2020, suggests a bounce up from here. A trading range between 2450-2630 is expected. The down-sloping accumulation structure since 12 Mar 2020 is still valid. ES could have gone through a sign of strength (SOS) rally from 24-26 Mar 2020 and currently on a backup action before marking-up higher. Bias - Break above 2500 to challenge levels 2550, 2600 and the swing high (2630). Potential intraday setup - look for possible continuation of the rally if committed above 2500. Else, short into an up thrust of level 2500. Pay close attention on how ES interacts with the key levels for reversal trades. It is possible to switch to swing trade should the close is favorable. Key levels - Resistance: 2500, 2550 Support: 2450 ; Prior day high 2509 and day low 2434; Swing high and swing low from lower time frame. Note: bullish bias is maintained until emergence of aggressive supply. During the unwinding of the volatility, expects relatively normal session without huge swing (up or down).
CME_MINI:ES1!Education
by mingjong
ETHUSD 1H INSIDE CANDLE BREAKOUT SHORT TRADEWHAT IS AN INSIDE CANDLE 1. Previous candle engulfs next candle 2. 2nd candle high is lower than 1st candle 3. 2nd candle low is higher than 1st candle INSIDE CANDLE METHOD 1. Incoming Trend 2. Inside candle - Opposite color 3. Enter Break of Engulfing Candle Inside Candle method is a great short term consolidation indicator. If your trade plan contains breakouts and consolidation then this method is for you. This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look. On a daily chart it may take weeks for a consolidation pattern to form. Inside candle represents a pause, consolidation or compression in the market after a big move. Often you will also see reduced volume on the inside candle. Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend. Enter a break of the larger engulfing candle in the direction of the break. Enter with a Stop Order a few pips above or below breakout level. Which trades you take is a matter of preference. Some like reversal trades or trend-following trades. Scalping in doesn't matter what direction you may go. Trend following you will want to see this in the context of a larger trend. Take all the trade setups and just shut down the ones that don't perform. Trade Management: Enter 2 trades Stop Loss is 1.5 x ATR for both trades First Take Profit is 1 x ATR for 1st trade 2nd trade there is no take profit. When 1st TP is hit move 2nd trades SL to breakeven. Let profit run on 2nd trade by following/trailing SL. If a candle closes back inside the larger engulfing candle close down trade. Watch for a setup for the next breakout.
COINBASE:ETHUSDEducation
by Tradingstrategyguides
Nuls (and most altcoins) stuck in downward trend vs. BTC.Using Nuls as an example: since I was considering if I should buy some now, due to my personal interest in its fundamentals. However its chart, like with most other altcoins, look horrible at the moment. Here, the chart shows NULs finding support on top of the thick-green LVDT line on the 3hr chart (note, for BTC, the 3hr, as well as 4hr, and especially the 1D chart works better). However, LVDT guide bands are in an overall downward trend vs. BTC. I will wait till the overall LVDT bands to plateau before I am confident of investing into altcoins again. My indicators used: LIVIDITIUM + 2STDEV-AEONDRIFT {EMA} LVDT guide-bands + 2 level Standard Deviation bands + with a set of detection algorithms implemented. FUSIONGAPS {EMA} ( color fills removed here) Net market Bullish/Bearish state oscillator, with DFG and D2FG indicators implemented. also check out the following accompanying oscillators. DIFFERENTIAL FUSIONGAPS {DFG} = Momentum oscillator DOUBLE-DIFFERENTIAL FUSIONGAPS {D2FG} = Accelerator oscillator Also the FUSIONGAPS{EMA} 50/15-Series = that shows the FG, DFG, and D2FG lines for 50/15 {EMA} {SMA} version also available.
NEducation
by cybernetwork
How to use my FG oscillator in conjunction with DFG oscillatorLooks like BTCUSD still have a little bit further down to go, but is winding up for a next significant pump. DEMO of the use of my FUSIONGAPS (FG) and DIFFERENTIAL FUSIONGAPS (DFG) scripts, with my LIVIDITIUM indicators set. Not a financial/trading/investment advice. Exercise your own judgement and take responsibility for your own trades. ;) See also: If you like this set of indicators, and it has benefited you in some ways, please consider tipping a little to my HRT fund. =D cybernetwork @ EOS 37DzRVwodp5UZBYjCKvVoZ5bDdDqhr7798 @ BTC MPr8Zhmpsx2uh3F5R4WD98MRJJpwuLBhA3 @ LTC 1Je6c1vvSCW7V2vA6RYDt6CEvqGYgT44F4 @ BCH AS259bXGthuj4VZ1QPzD39W3ut4fQV5giC @ NEO rDonew8fRDkZFv7dZYe5w3L1vJSE51zFAx @ Ripple XRP 0xc0161d27201914FC0bAe5e350a193c8658fc4742 @ ETH GAX6UDAJ52OGZW4FVVG3WLGIOJLGG2C7CTO5ZDUK2P6M6QMYBJMSJTDL @ Stellar XLM xrb_16s8cj8eoangfa96shsnkir3wctdzy76ajui4zexek6xmqssweu85rdjxrt4 @ Nano ~JuniAiko (=^~^=)v~
BITSTAMP:BTCUSDEducation
by cybernetwork
AUDUSD - How i traded it into the FED Rate and managed my risk.Hello All I thought i would post a video of how i completed my analysis and entered 6 trades in total for AUDUSD. All with different lot sizes dependant on approach and also how I managed my risk going into the FED news, and how with 6 trades triggering at different times (risking 1% of my capital for each trade) - I only had 3% at risk at anyone time which I have now reduced to just 1.5%. Thanks for your time in watching my video, i hope you find it interesting. Duncanforex.com is coming in the next 10 days. If you want to, you can go to the website now and register your interest and also be eligible to obtain discount vouchers for the training course once the site is live. Thanks Duncan
Education
by UnknownUnicorn483829
CAN MOVING AVERAGE GIVE CONTEXT TO PRICE MOVEMENTConsider the common situation in Forex when price makes a move for 50 or more pips in one direction. It could be a sudden move covering a large distance in just one or two bars, or it could move steadily over many days. Whether the move surprises you or steadily makes tracks in one direction, it happens that you notice this market might be trending. Will it continue? Or, should you expect it to suddenly reverse? How do you know? Trading is a speculative venture without absolute assurance of timing or direction for the market’s next move, but there is something you can do to stack the odds in your favor. Plotting a moving average gives context to changes in price, and provides a template for planning trades with expectations about what the market will do next. Look at these 2 charts. The first one, without any technical indicators, is a picture of rapid change in price. It would be impossible to know if it’s random, if it’s expected to continue going down, or if it might swing back in the opposite direction. In the second picture, two moving averages give context to that same price action. In the midst of a choppy market where price is jumping up and down over a period of time, the moving averages show me that price is holding to one side, giving me the information I need to know this market is in a down-trend and will be looking for lower lows. Going short is a good bet in spite of the volatility. Moving averages are guides, providing context and making the world of price action look a lot less random.
Education
by Tradingstrategyguides
GOLD - Monthly - Multi-Timeframe Analysis Series 1GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself. Comments The Monthly timeframe has a clear to identify trading zone from 1330 - 1180 region. Alone this isn't enough to form a thesis for the direction of GOLD in my opinion due to the level of acceleration into the resistance zone of 1330's. Looking left you can see a clean sell-off followed by a decisive buyers rally. This tells me there's interest in buying GOLD which could see prices near the highs before a fall back down to the bottom of the range. Looking at the candlestick formation at the top of the zone, we have a nice high test candle which stands out from the rest of the price action looking left. I would like to see more deceleration though before trading GOLD to the downside. The current month hasn't come to an end yet, so the most recent Monthly candle cannot be considered complete. Key Note During a ranging market, the EMA's will trade sideways and cannot be used with the same set of rules as during a trending market. If a range is formed on the Monthly timeframe however, a trend can exist on the lower timeframes. You need to be aware of your time horizons when considering confluences. Price always rules over indicators.
FX_IDC:XAUUSDEducation
by robdee4x
NZDCAD Potential ShortWeekly - as we can see NZD has been on a downtrend since November 2016 and has been respecting the descending trendline on separate occasions and on every-time it has reversed heavily. NZDCAD is approaching a key level and double top region, the last price has broken through this area was 11 months ago in march, since then it has been rejected 6 times and we are approaching the 7th attempt Daily - on the daily price has been ranging since the start of the year then price broke out last week and has been very bullish for 3 consecutive days. we now see price hitting our descending weekly trend line and the weekly price zone in red What We Are Looking For - we want to price to enter and reject this red zone and yellow circle to show that sellers are active. and then we want to see sellers take full control. by reject I would expect multiple candles with very large wicks and small body's Fundamentals - NZD PMI and CAD new house pricing on Thursdays which is only medium volitility so it should not effect our charts to much
Education
by nryan92