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Wedge

BTCUSD D1/M1 charts (2/4/2019)Good morning, traders. Bitcoin continues to trade sideways with no significant increase in visible supply or demand on the order books. While Bitmex has continued to show stronger supply, spot exchanges are showing stronger demand. Traders should consider both but give more credence to spot exchanges as Bitmex's swap system and 100x leverage draw to it the gamblers (those with a stronger "casino" mindset) which means they are generally short-profit driven which leads to constantly jumping between buying and selling. Spot exchange traders tend to have a more definitive outlook and as such aren't prone to as much flip-flopping. Again, this is speaking in generalities. At this point, price has printed a perfect descending channel on the daily. The daily RSI has printed a descending wedge whose apex it is nearing, and volume has continued to drop as price has consolidated, which means that we should see a strong push by price in either direction sooner rather than later. Price is also treading along, just under, the steeper red resistance. I have outlined the horizontal resistance levels in blue as well. Currently, my expectation is for price to target the supply EQ around $4500 as noted once it moves through the channel's resistance. Traders must watch for price to target the channel's EQ and then its resistance before thinking of the supply EQ, however. These more local levels give shorter-term traders ideas of where to watch if going long or short in the near term. Yesterday's candle was very low in terms of volume and today's candle is already almost even, yet the candle spread is very small so far. This is something traders should watch through the end of the day. Based on the steep red resistance line, a successful move beyond it should have price targeting the January 19th swing high around $3760/80. We would need to see the candle closing above that swing high to protect price from a bearish SFP and signal further advancement. A successful close below the January 29th swing low at $3322 would have price likely targeting the $3200 area and failure for that level to hold puts $3000 on guard. The monthly chart is interesting. We can note the large drop from the $6000s in November, however we saw even greater volume in December but a very small candle spread and good lower wick. January saw volume comparable to this past summer, but again small candle spread. This appears to be suggesting that demand continues to show up and while it hasn't been enough to send price higher just yet, if it holds then supply will continue to get eaten up and we could see price moving higher and catching most traders off guard. The wedge is the dominant pattern at this time and based on prior movement suggests that price should be moving sideways/up to challenge the pattern's resistance. This would give price another alternating touch of support and resistance thereby confirming the pattern. If that were to happen, then my expectation continues to be what it has been in that we would see price test that resistance, retrace a bit, and then push through the resistance. Looking at the daily chart, the move toward resistance isn't unthinkable. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
1
Falling and Rising WedgesOne of the first things to know about rising and falling wedge patterns, is that they’re a great indicator of an upcoming reversal. Much the same as other wedge patterns, they’re formed by a consolidation period representing either distribution or accumulation. While both rising and falling wedges can form over a period of any length, typically the longer the consolidation period, the more explosive the breakout will be when it eventuates A Falling Wedge is a chart pattern within the context of a downtrend composed of two downward sloping and converging trendlines connecting a series of lower swing/pivot highs and lower swing/pivot lows. The power of a Falling Wedge can be greater after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed. Falling Wedges can be stronger when the series of lower swing/pivot highs and lower swing/pivot lows that formed the pattern narrow down into a point/apex as bears become less interested in selling. 2)A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows. The power of a Rising Wedge can be greater after a moderate upside move due to the possible decrease of underlying support as the pattern is formed. Rising Wedges can be stronger when the series of higher swing highs and higher swing lows that formed the pattern narrow down into a point/apex as bulls become less interested in buying.
COINBASE:BTCUSDEducation
by CryptoC77
The Simple Trick Making ME Money and Losing YOU MoneyToday's post is going to be a quick one but it is important. I think that understanding support and resistance levels is one of the most important things you can do as an investor. They are key indicators of market movement and they can be used in so many different scenarios. The biggest issue is that people use them incorrectly! I posted the other day talking about a support level for COINBASE:BTCUSD . I said that there was a support at $6000 USDT. Then the craziest thing happened...it dropped below it and actually bounced near 5858. Then I received a comment saying that my support level was wrong..... Guys! Support and resistance levels are ranges. They ARE NOT singular numbers. There is no magical book that says that the price has to bounce at a specific level! They are buying and selling ranges that form from people trying to break even. Understand this, there were people that wanted to buy COINBASE:BTCUSD when it went down to 6000 the last time but they were not able to. So they did what most people would do. Wait. They left there buy orders there so that they could get in on the action. Then when the price fell all those people that wanted to get in the last time were now able to get in. This is why support levels form over and over again and this is why they eventually break. When there are no longer buyers that want to get in near that level, the price ends up breaking through. So with that in mind, things are never going to be perfect. I can't really blame you for thinking that it is a specific number because almost every technical analyst uses very thin lines to describe these levels. This is not "wrong" but it also teaches some bad habits. An easy way to fix this is to start using rectangular ranges instead of thin lines. For example, you can see these ranges for COINBASE:BTCUSD that I have drawn above. Anything in the green is a buying range (or a support) and anything in red is a selling range (or a resistance). I draw these ranges by picking the extreme resistance as the top and then finding the next resistance underneath that for the bottom. I really hopes this helps you understand where market turns are most likely going to happen. These zone are key and I hate when people don't sell because they are so caught up on a specific number ranther than a range. Go out there and make some money. I am not going to lie, the market is tough right now. Be smart and always make a plan.
BITFINEX:BTCUSDEducation
by UnknownUnicorn1542001
2
Lesson 6A - Breakout Patterns - Falling Wedge (Bullish)Welcome back to Lesson 6 traders. I have something interesting for y'all in this lesson. This lesson is going to be a series on Breakout Patterns. I will be posting one breakout pattern at a time, so it is easy to understand, and clean enough to follow. The following lessons are going to be posted in lesser time. So in the Lesson 6 series, since there will be multiple topics for breakout patterns, I will be splitting them into Lesson 6A, 6B, 6C and so on.... In Lesson 6A, we will be going over the Falling Wedge breakout pattern. We will be looking over the criteria to qualify for this pattern, and what to look for in order to get a breakout confirmation. Falling Wedge is usually a bullish pattern most of the time. It usually is wide from the top and contracts as it moves down to the lower price levels. There are certain criteria for a falling wedge to qualify to be a reversal or a breakout pattern. Lets follow the chart above in order to get a good understanding of what I am taking about here. Actually I will post the above chart right here for you so it can be easier for you: So in the chart above we can clearly see TWO falling wedges, they both are for the same breakout that happened in TRX, so you can refer to any of them. We will go over the step again as a summary, but let us first go over the detail so you get a clear view on this. Whenever I am looking for a falling wedge patterns, I make sure the resistance line, which is the upper line of the falling wedge connects minimum of 3 candle sticks. Sometimes we can get away with 2 candle sticks, but when we have 3 connected candle sticks, meaning the price has pulled back after touching the resistance line at least 3 times, we can check off one of the criteria for a falling wedge. Now for the support line, which is the lower line of the falling wedge should at least have a minimum of 2 candle sticks touching the line, meaning the price has bounce at least 2 times after touching the support (lower) line of the falling wedge. This is considered the second criteria for the falling wedge. This just means that you have a close to accurate enough data to consider this as a reversal pattern for the selected time frame you are into. If we look closely at the chart, for the resistance line, the price has pulled back after touching it about 4 times, and 3 times for the blue support line. Notice how the price candles have not closed outside of the resistance or the support line. This is really important for a valid pattern. Since we have BTC movement effecting the altcoin prices, we can ignore the candles closing just a little outside the resistance/support lines, but mostly the price should be moving inside the wedge. Another criteria for a falling wedge is that, it starts out wide, and the wedge contracts as seen in the chart, as the price moves lower. Once we have these three criteria lined up, we have a confirmation that the price pattern is currently moving in a falling wedge. So now, all we need to do is wait for the breakout. Remember, this is very very important. In order to confirm this reversal, the price must breakout from the falling wedge to the upwards. If it breaks towards the bottom (support line), this pattern gets invalid. As we see in the chart above, the candle breaks out of the falling wedge, and the price start moving rapidly upwards. Thus, we can say that the falling wedge on the chart above is a valid falling wedge pattern. You must have understood this pattern by now. Make sure you do by reading what I have written above, and looking at the chart at the same time. Continue reading below......
Education
by MoneyChartz
7
Education: The ascending wedge. BNBBTC ExampleThe ascending wedge is a pattern in price action that has an uptrend with higher lows and higher highs, however the lines that connect the lows and the highs are tightening. This usually suggests that bull strength is running out, as every rally running toward the resistance is shorter lasting and moves less in terms of price action. Ascending wedges can break to the upside as continuation, or to the downside as reversal. However they don't usually reverse the underlying, longer term trend. The standard target on a bearish entry on the break of the ascending wedge is the starting point. You can see in the BNBBTC example that the price reversed up very close to the same level that marked the start of the wedge. Sometimes the ascending wedge will break bullish, to the upside, but the chances of that are lower as the support line is rising faster - what this means is that if the price traded sideways, it would eventually break the support line and thus the bears need less strength to break that support line than what the bulls need to break resistance. In this example the ascending wedge is going with the trend, as BNBBTC is very bullish on the daily and weekly, as such the expected outcome of the ascending wedge is not a trend reversal, rather it is a retracement back down to the starting level and likely continuation to the upside in the medium term. An ascending wedge during a downtrend is much more likely to be a continuation pattern, and short term bulls that played this wedge should make their exit as soon as there is a close below the support line.
Education
by pablo.lo.rivadeneyra
Every major chart pattern between 3/18 and 3/28!Chart patterns are great ways to anticipate reversals of trends. Other indicators like MACD and RSI can help you figure out more exactly when but identifying chart patterns are a great way to see a reversal coming. The first step is knowing how to draw trend lines. With these you can more easily see how the range of a certain move is changing. If the range is either tightening or widening, the likelihood is that a reversal is coming. Typically, volume will also steadily decrease throughout the pattern, ending in a climax in which the trend reverses. On the chart you can see several types of common chart patterns labeled, bearish in red and bullish in purple. I always consult Thomas Bulkowski's guide on chart patterns if I am ever in doubt. His observations were for stocks but work really well for cyrptocurrency trading as well. Especially because patterns tend to form a lot more quickly than traditional securities. Resources: (1) Rising (ascending) wedge (2) Bullish pennant (3) Falling (descending) wedge (4) Descending broadening wedge Peace and love, crypt0guy
BITFINEX:BTCUSDEducation
by crypt0guy
Perfect education for a breakout setup!This is a breakout out of the book! look how nicely it formed! we see a highest high to start from. And then it all goes according to what the textbook says: "Price will form higher lows and lower highs, until it all collapses and just breaks out." This is a pattern you should always keep in mind! It is sooo likely to happen, and more important, if you trade 10 of them, and 7 go wrong, but 3 will breakout like this one, you can still make money! Just make sure you have the SL positioned right, your loss will be small, and your win will be extraordinary! So, this is mainly what I am looking for, unfortunately we have billions of stocks around, and you just cant scan them all... ROCK ON! Comment if you like Give me some thumbs up!
XETR:HDDEducation
by Evan_Moe_Money
1
Educational post - Difference between a wedge and a triangle Hey guys this is a very short educational post on two of the most commonly found chart patterns in the market. These are often mistaken and confused even by experienced traders. Here we have a rising wedge and a bearish triangle both are bearish in nature. However one is a reversal pattern and the other is a trend continuation pattern Example of a wedge Example of a bearish trianlge I hope you guys found this beneficial. Next time we shall talk about bullish variations of these two patterns with examples. Cheers
Education
by AkashGaur
Reversal Chart Patterns - Part 1Double Top: The double top is a reversal pattern of an upward trend in a stock's price. The double top marks an uptrend in the process of becoming a downtrend. Sometimes called an "M" formation because of the pattern it creates on the chart, the double top is one of the most frequently seen and common of the patterns. Because they seem to be so easy to identify, the double top should be approached with caution by the investor. Head and Shoulders: The classic Head and Shoulders Top looks like a human head with shoulders on either side of the head. A perfect example of the pattern has three sharp high points, created by three successive rallies in the price of the financial instrument. Volume is extremely important for this pattern!! Rising Wedge: A Continuation Wedge (Bearish) consists of two converging trend lines. The trend lines are slanted upward. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted upwards at an angle. This is because prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows. A bearish signal occurs when prices break below the lower trendline. Over the weeks or months that this pattern forms the trend appears upwards but the long-term range is still downward.
Education
by Natalie.Gin
19