TRADINGTRADER22222

TRADINGTRADER22222

Using trend breaks in patterns to confirm trend reversals gives analysts reassurance in pattern trading. In this example; extremities of the pattern were highlighted, and the most current trend within said pattern was drawn and will be used to confirm a reversal if/once broken.

TRADINGTRADER22222

Understanding trends within a pattern gives analysts the ability to better understand sentiment and directional pressure. In this example, pattern extremities were highlighted. Then, on a lower timeframe, trends within said pattern drawn. Overlaying timeframes is a necessary part of a complete analysis, and a complete commodity analysis can help piece together...

TRADINGTRADER22222

Overlaying fundamental factors on technical information (known as hybrid analysis) allows for analysts to understand what moves the market. Hybrid analysis is useful in particular when it comes to stocks and options (as opposed to currencies and futures) as direct links can be more easily drawn between stock price and fundamental factors. When used in...

TRADINGTRADER22222

Proximal and distal lines used here to highlight a type of consolidation pattern known as a triangle pattern. Consolidation patterns are commonly understood to represent the redistribution of an asset due to shifts in sentiment, profit taking and/or revaluation. In this particular case, due to recent break of an area of price-interest (5,800-6,200), I would...

TRADINGTRADER22222

Using proximal and distal lines to mark channel extremities takes emotion and guess-work out of swing trading! Furthermore, using multiple timeframes allows for more accurate timing and thus more control over risk/reward. As can be seen here, proximal and distal lines were used to highlight reversal areas on both the top and bottom of the channel. Then, using a...