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Reversalpattern

EURNZD 15M 3 LITTLE MOUNTAIN 3 LITTLE RIVER STRATEGYThree Little Mountains Rivers Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Mountains Rivers trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer , a Hanged man, a Morning or Evening Star , Bullish or Bearish Engulfing , or another pattern. Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Read more about swing trading in forex here. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Indians trading strategy on the 5-minute chart.
Education
by Tradingstrategyguides
1
EURNZD 15M 3 LITTLE INDIAN REVERSAL STRATEGYThree Little Indians Trading Strategy Again, this strategy doesn’t require any professional trading indicators. The Three Little Indians trading strategy is a pure price action trading strategy that has the potential to reward us instantly. The rules for this setup are pretty simple (sell signals): First, you need three consecutive symmetrical peaks (swing highs). The time that passes between the development of each swing high is more or less the same. Enter a short position once the market turns below the 20% range of the second peak. Place your protective stop loss above the newly formed swing high. * It is required that at the top of the last high or low, a candlestick reversal pattern is formed. Whether it's a Hammer, a Hanged man, a Morning or Evening Star, Bullish or Bearish Engulfing, or another pattern.   Basically, we’re trying to anticipate when the third swing high will get formed. If we wait too long, our profit margins will shrink. Read more about swing trading in forex here. Note* this chart pattern works on the daily chart as much as it works on the lower time frame. We like to trade the Three Little Indians trading strategy on the 5-minute chart.
Education
by Tradingstrategyguides
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
Gold - Trade setups to avoidWe have been posting potential bullish trading signals on Gold and the ways in which to enter this trending market of late, as the probability for these has been very high. Now, the market doesn't trend in a straight line, so when we saw the price in Gold make its way to the $1900.00 level we looked to see if we could get any confirmation selling signals for a potential profit taking opportunity. Its easy for anyone to show profitable trades but we believe that showing examples of why you wouldn't take a trade or what to look for to avoid a potential losing trade is just as important. As you can see from the 15 Minute chart, price started to form a bearish selling 3 drive pattern at the highs just above the 1900 level. When we saw the 3rd and final drive high reject a little lower this sparked our interest. With any price pattern we look to trade we don't want to enter right at the 3rd drive because we have no proof that price will stop there and do what you want it to do. Instead we drew a lower trend line in the hope that price could continue lower and break this to the downside. Until this happens, we are sitting on the fence and staying away. What happened in the end was that the momentum in Gold was still very strong and price actually used the higher 3 drive trend line to retest this on the topside to propel price higher. No break of the lower trend line, no trade. Sometimes its better to walk away and live to trade another day then to let ego get the better of you.
OANDA:XAUUSDEducation
by DavidVillagra
RISING AND FALLING WEDGES Good afternoon. Today we are looking at another chart pattern RISING AND FALLING WEDGES . Let’s get on it. Wedges can either be continuation or reversal patterns. Just to refresh your memory, continuation patterns are formations that show side way price action, signalling a temporary pause in the trend; whereas reversal patterns indicate a change in the trend. Whether wedges are continuation or reversal, it’s not really significant, what matters is spotting the pattern, and knowing how to make money out of it. Wedge patterns are classified as either RISING WEDGES OR FALLING WEDGES. Rising wedges, as the name implies, slopes upwards, and they eventually break to the downside Graphically, rising wedges look like the above sketch chart(Sketch 1) notice how the slope of the support line is steeper than that of the resistance. This indicates that higher lows are being formed faster than higher highs. That is precisely how the wedge pattern get to be formed. The inverse of the rising wedge is the FALLING WEDGE , which usually breaks to the upside.(Sketch 2) Just like on the rising wedge pattern, the falling trend line connecting the highs (resistance) is steeper than the trend line connecting the lows (support). As mentioned earlier, rising and falling wedges can either be continuation or reversal patterns. But whether they be continuation or reversal patterns is not our focus, our focus is on making money when these patterns ‘BREAKOUT’ . If you case you are wondering what we mean by ‘breakout’; consider the chart above(Sketch 3) of a falling wedge and a rising wedge, and how they typically break to the upside and downside, respectively Now let’s look at how we can make money out of a RISING WEDGE PATTERN. Let’s start by considering the chart (Sketch 4) Now, when entering a Short trade based on a rising wedge, it’s important to wait for a break and close below the support line. After this close, aggressive traders can ‘pull the trigger’. But a more conservative way to enter the trade, is to wait for a retest of the previous support (now resistance) before pulling the trigger. In this case the sequence will be something like this: 1. Wait for a close below support 2. Wait for a retest of the previous support 3. If the previous support act as resistance, then enter short trade A Long trade based on a falling wedge is entered on the same principle (but in reverse), that is, 1. Wait for a price close above resistance 2. Enter Long trade at that close (for aggressive traders) 3. For conservative traders, wait for a retest of the previous resistance (now support) before pulling the trigger That’s ENTRY, now let’s look at placing stop loss and take profit levels when trading wedge patterns. Take profit target should ideally be the height of the wedge formation. Consider the chart above(Sketch 4) Stop loss orders should always be placed at a level that if hit, it will invalidate the trading set up. In the case of rising wedges, this level will be the area just above resistance. The opposite is true for falling wedges, place stop loss just below support. Thanks for your Likes and Support.... Until next time, let’s keep if Profitable!
COINBASE:BTCUSDEducation
by TaherJalili
9
How to Trade Stocks in a Recession – Survive the CODVID-19Where to put Money During a Recession? #1 Recession-proof Stocks: Discount Store Industry. Here is a list of retail stocks to keep an eye on during the 2020 recession: Dollar General (NYSE: DG ) – during the 2008 crash DG rose more than 60% and since the middle of March 2020, it’s up the stock is up more than 38%. Walmart (NYSE: WMT ) – since the COVID – 19 outbreak, Walmart stock is up more than 19% from its March’s low. Dollar Tree (NYSE: DLTR ) – With a gain of over 60% return in 2008, Dollar Tree is another recession-proof stock that can withstand today’s coronavirus bear market. These types of businesses do well during a recession. The retail discount industry will typically see a boost in sales, which typically means bigger profits for the companies and subsequently these stocks can beat all other S&P 500 stocks. #2 Recession-proof Stocks: Health Care Industry. Biotech company Amgen (NYSE: AMGN ) was among the best-performing stocks in 2008, gaining as much as 24.3% by the end of that year. During the COVID-19 stock market crash, Amgen has gained roughly 24% since its March low. #3 Recession-proof Stocks: Delivery Services Industry. The biggest courier companies in the USA are UPS Inc. closely followed by FedEx Corp . With over 3 billion of the global population in lockdown due to coronavirus quarantine, the home delivery services industry has become an essential component of our society. The foundation of making money when the stock market crashes or in any other type of investing is to study the past. Here is a stock trading tip: Compare which stocks have performed well during previous recessions. For this exercise, we’re going to have a look at the stocks that soared during the financial crisis of 2008. During the subprime mortgage crisis of 2008, the US stock market lost almost 40% of its value. But even in those dire times, where the majority of stocks plunged, there were some healthy stocks that survived the crash. Given the coronavirus stock market crash, we’re going to have a look at 5 recession-proof stocks that can survive this bear market. When we can learn something from the stock market history, it’s best to pay attention. Stock investors looking to pick healthy stocks can start first by including the above-mentioned names in their portfolios. How to Trade Stock In a Recession? A study has been conducted to assess the past six recessions and revealed that if you invested in the Dow stocks during those recessions only during the 1980 recession the portfolio value would have made profits by the end of the recession. Now, you might be wondering… “How you can profit from a recession?” The straightforward method to trade stock in a recession is by short selling. You can make money when stock prices go down by short selling. Actually, stock day traders can make money both ways, when the stock price goes down and when the stock price goes up. Finding good stocks to hold and make profits during a recession is pretty hard. Alternatively, buying dividend stocks can become another profitable method to invest during a recession. Dividend stocks can provide a good source of passive income during times of a recession. You can also use Google Trends for stock picking. However, by far the best stock trading strategy in a recession is day trading. In a typical recession, stock investors will experience more volatility , which is the perfect paradise for day traders. Stock day traders will continue to see volatility as the uncertainty around the coronavirus persists. One major characteristic of a bear market is high volatility compared to bull stock markets. And, the 2020 bear market holds the record as the fastest bear market in history. Bull and bear market volatility look very different. So, as you may imagine, stock volatility is through the roof during the 2020 recession. We’re going to teach you how to make money during a recession with a day trading strategy inspired from Trading Guru Larry Williams . See below: Day Trading with the Best Stock Trading Strategy in a Recession Day trading during a recession can be the fastest way to grow your account. With day trading you can trade both ways: You can take advantage of both the bearish trend as well as from the sharp rallies. Our stock day trading method is based on the same method that Larry Williams used to generate more than $1 million in profits in the world futures championship Robbins World Cup. But, there is a twist. Our team of experts took Larry’s Smash day reversal pattern and twisted the rules to fit our recession strategy. Now, you may be asking yourself: What’s a Smash day reversal pattern? According to Larry Williams , a Smash bar is a bar of increased volatility with long wicks. The Smash bar trading pattern indicates a potential reversal of the preceding impulsive movement. Let me explain… If on the intraday level, the stock price starts all of a sudden to experience a high level of volatility , this should leave behind candle bars with long wicks. Now, it’s important to make the difference between the Smash bar trading setup and the typical Pin Bar chart setup. While these two stock chart patterns might look similar, the pin bar has a small body candle, while the Smash bar has a typical larger body. The stock reversal pattern is completed once the next candle breaks above the smash candle, which will subsequently trigger a buy signal. Note* obviously the protective stop loss can be placed at the other end of the Smash bar. This stock chart pattern works because the increased volatility will attract more traders to take an interest in the stock. However, if the next bars go in the opposite direction it will signal a reversal in the current stock price direction. Subsequently, this will lead to further liquidation along the road and exacerbate the stock price reversal. Now, the coronavirus crisis has unleashed unprecedented levels of stock volatility . This is good news because it means the Smash bar pattern will tend to reoccur more often. You can buy and sell stock in a recession due to the elevated stock volatility . We have learned how to buy stocks, but what about how to sell stocks during a recession? We use the same principles but in reverse. There is also a slight variation of the Smash bar reversal pattern that we can use. Larry Williams calls it a hidden Smash bar. Let me explain it to you: When a highly volatile bar emerges out of the blue that can be a signal of reversal. This bar must have its closing price in the lower third of the stock price range. And, it must be bigger than the bars close to its proximity. Note* this time we don’t count on the long wicks. Note* this day trading pattern works best when we trade it in a context of an established intraday trend as a continuation pattern. Final Words – Best Stock Trading Strategy in a Recession Use our best stock trading strategy in a recession if you want your account to go up even when the market crashes. Learning how to trade stocks in a recession can help you survive while keeping you risk adjusted. The average recessions last 18 months, so it’s important to find different methods to protect yourself. Alternatively, you can also learn where to put money during a recession a safe way. Stock investors can put their money in high –quality stocks (recession-proof stocks) like: Consumer staple stocks Discount store stocks Pharmaceutical stocks Delivery service stocks or food delivery stocks If you’re more of a stock risk-taker, the best way to make money during a recession is by day trading the stock market. Larry Williams’ Smash day pattern is a simple but very effective way to trade stocks in a recession.
NASDAQ:AMZNEducation
by Tradingstrategyguides
DIAMOND BOTTOM REVERSAL PATTERNDiamond Bottom is considered a bullish signal indicating a possible reversal of the current downtrend to a new uptrend. Diamond patterns usually form over several months in very active markets. Volume remains high during the formation of this pattern. The Diamond Bottom pattern occurs because prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. The Technical Event occurs when prices break upward out of the diamond formation. The inbound trend is an important characteristic of the pattern. A shallow inbound trend may indicate a period of consolidation before the price move indicated by the pattern begins. Look for an inbound trend that is longer than the duration of the pattern. A good rule of thumb is that the inbound trend should be at least 2 times the duration of the pattern. Target: measure the distance between B and C point,if the distance is 73% after breakout from D point the target will be +73% potentially profit Hit the LIKE button if you want more educative charts,
BITFINEX:BTCUSDEducation
by CryptoC77
1
Triple TOP/BOTTOM Reversal PatternTriple Top is a Bearish Reversal Pattern which means the long term uptrend will be switched into long term bearish trend Triple Top chart Pattern means the price with base candles or wicks must touch 3 times in row same level in form of peaks Peak, correction/re-fuel,peak and so on for three times in row These TOPS will become a strong strong resistance line, if after third peak the resistance line can t broke we will have a nice short oportunity First, we need a confirmation about this Triple Top Pattern so we can entry ONLY when we broke the neckline and the target will be the distance of the neckline and TOP Triple Bottom is a Bullish Reversal Pattern which means after a long downtrend the coin will change their trend to LONG TERM BULLISH We can see in this picture 3 times tried to break the huge support but they can t and after this we can say that was the BOTTOM The price of coin will increase but we can enter into this trade ONLY when we are about the neckline which is a strong resistance If we are closing above neckline(resistance will be transformed into support) and also we can continue to grow Target is the distance from BOTTOM(support) and Neckline
Education
by CryptoRomaniaTD
Trend Reversal Alerts Strategy in DepthThis idea based on one of the simplest trading strategies in the world Trend-Reversal-Alerts-Strategy that I shared recently. Now I want to spread few words about how you should make it perform better with help of buy and sell resistance and I will show you the exact methods. But first, if you still not sure how this strategy tester is actually work you should definitely read this: TradingView Blog: EN/new-features-improvements-strategy-backtesting RU/new-features-improvements-strategy-backtesting Also I want to recommend an article that I googled. It examine in depth and gives a perfomance summary on every single subject: tradingview-strategy-tester-performance-summary According to Buy/Sell Resistance. When new candle created with assigned Open value, Resistance = 0. In the second Close start moving it changes so called Resistance of that candle. It could be negative or positive. So by setting resistance you can tell this script to enter/close your trades only when Buy/Sell Resistance values are greater or equal than your settings values. * You should tweak it only after all strategy tester options are ready. Very important! I do it in a simple way : open settings -> Buy Resistance = 1 -> Sell Resistance = -1 -> then if nothing change -> Buy Resistance = 1.5 -> Sell Resistance = -1.5; otherwise -> Buy Resistance = 0.5 -> Sell Resistance = -0.5 and so on... * This is very important to do to eliminate in the future "resitance issues" - when you can't enter/close trades because of your resistance settings. That is all for now. Take care and bye bye!
SP:SPXEducation
by sequentialvision