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7 Dimension Sell Analysis for EurGBPCore Analysis Method: Smart Money Concepts 😇7 Dimension Analysis Time Frame: H1/M5 1: Swing Structure: Bearish with proper BOS after taking inducement and marking valid low. The price completed its corrective swing move with 4 pullbacks and a proper internal bullish structure, mitigating the extreme POI OB and sweeping swing liquidity in the Premier zone. It also swept external swing liquidity, making this entry more interesting with the Whale scoop entry setup. Resistance: Supply area acts strong with a false breakout. Post-break buildup failed strongly, indicating that the price will go further down to form another low. 2: Pattern 🟢 CHART PATTERNS: Reversal: Rounding bearish patterns and consolidation rectangle bear side breakout. Shakeout reversal also at the same point. 🟢 CANDLE PATTERNS: Multiple long wick candles at the POI area, then breakout the range with a momentum strict engulfing pattern. 3: Volume 🟢 Shows very good volume at the resistance level, but this volume is unable to break the resistance, so we consider it an execution volume at the point. 4: Momentum RSI 🟢 Since the start of July, momentum has been in the bearish zone with multiple bearish range shifts and divergence, everything loudly indicating this is still in the bearish phase. 5: Volatility Bollinger Bands 🟢 Expansion has started just with momentum. Bearish headfake also indicates bearish volatility in this pair for now. 6: Strength: Showing weakness. 7: Sentiment: Everything is in bearish favor. ✔️ Entry Time Frame: M5 ✅ Entry TF Structure: Bearish ☑️ Trend line breakout: Yes 💡 Decision: Sell 🚀 Entry: 0.8441 ✋ Stop Loss: 0.8451 🎯 Take Profit: 0.8400 😊 Risk to Reward Ratio: 5RR 🕛 Expected Duration: 3 Days SUMMARY: Analysis supports a strong sell position based on the Smart Money Concepts methodology, with expected bearish momentum and high potential reward.
Short
by Optimum369
Strong BUY IndicationBullish Trend Confirmation: Higher Highs and Higher Lows: The price action is forming a series of higher highs and higher lows, indicating a strong bullish trend. Trendline Breakout: The price has broken above a long-term descending trendline, signaling a potential shift from a downtrend to an uptrend. Technical Indicators: Moving Averages: The price is trading above key moving averages (e.g., the 50-period and 200-period moving averages), suggesting bullish momentum. A golden cross, where the 50-period moving average crosses above the 200-period moving average, is a particularly strong buy signal. MACD (Moving Average Convergence Divergence): The MACD line crossing above the signal line and moving into positive territory indicates increasing bullish momentum. RSI (Relative Strength Index): The RSI is rising and staying above 50, confirming the strength of the bullish move. However, it's not yet in the overbought territory, indicating room for further upside. Chart Patterns: Bullish Reversal Patterns: Formation of bullish reversal patterns such as a double bottom, inverse head and shoulders, or cup and handle. Breakout from Consolidation: Price breaks out from a consolidation pattern (like a rectangle or symmetrical triangle) on high volume, suggesting the beginning of a new bullish phase. Volume Analysis: Rising Volume on Up Moves: Increased volume during price advances and lower volume during pullbacks indicate strong buying interest. Volume Spikes: Significant volume spikes accompanying upward price movements, confirming the strength of the breakout. Fibonacci Levels: Retracement and Extension Levels: Price retracing to key Fibonacci levels (38.2%, 50%, or 61.8%) and showing strong support can provide a buy indication. Additionally, price targets can be set using Fibonacci extension levels. Fundamental Factors: Economic Indicators: Positive economic data or geopolitical events that favor precious metals as a safe-haven asset. Market Sentiment: Overall market sentiment turning bullish towards commodities and precious metals due to inflation concerns, currency devaluation, or other macroeconomic factors.
FOREXCOM:XAGUSDLong
by GoldenHorizonCapital
7 Dimension Sell Idea For EURGBPCore Analysis Method: Smart Money Concepts 😇7 Dimension Analysis Time Frame: H1/M5 1: Swing Structure: Bearish with proper BOS after taking inducement and marking valid low. The price completed its corrective swing move with 4 pullbacks and a proper internal bullish structure, mitigating the extreme POI OB and sweeping swing liquidity in the Premier zone. It also swept external swing liquidity, making this entry more interesting with the Whale scoop entry setup. Resistance: Supply area acts strong with a false breakout. Post-break buildup failed strongly, indicating that the price will go further down to form another low. 2: Pattern 🟢 CHART PATTERNS: Reversal: Rounding bearish patterns and consolidation rectangle bear side breakout. Shakeout reversal also at the same point. 🟢 CANDLE PATTERNS: Multiple long wick candles at the POI area, then breakout the range with a momentum strict engulfing pattern. 3: Volume 🟢 Shows very good volume at the resistance level, but this volume is unable to break the resistance, so we consider it an execution volume at the point. 4: Momentum RSI 🟢 Since the start of July, momentum has been in the bearish zone with multiple bearish range shifts and divergence, everything loudly indicating this is still in the bearish phase. 5: Volatility Bollinger Bands 🟢 Expansion has started just with momentum. Bearish headfake also indicates bearish volatility in this pair for now. 6: Strength: Showing weakness. 7: Sentiment: Everything is in bearish favor. ✔️ Entry Time Frame: M5 ✅ Entry TF Structure: Bearish ☑️ Trend line breakout: Yes 💡 Decision: Sell 🚀 Entry: 0.8424 ✋ Stop Loss: 0.8436 🎯 Take Profit: 0.8363 😊 Risk to Reward Ratio: 5RR 🕛 Expected Duration: 3 Days SUMMARY: Analysis supports a strong sell position based on the Smart Money Concepts methodology, with expected bearish momentum and high potential reward.
Short
by Optimum369
1:7 Risk To reward Sell setup For ADBE This analysis delves into a potential trade setup on the D1 (Daily) timeframe, using Smart Money Concepts. Below is a detailed breakdown: 😇 7 Dimension Analysis Time Frame: D1 (Daily) Swing Structure: The current swing structure is bullish but shows signs of exhaustion. After a swing liquidity sweep and meeting key parameters like inducement, the impulsive swing move was unable to sustain itself above the previous higher high (hH) level. All Points of Interest (POIs) have been mitigated, and after sweeping the liquidity, the price is likely to close in the Premier zone of the swing, signaling a strong possibility of a sharp sell-off in the coming move. A "Whale Scoop" entry model is preferred here, with resistance and supply zones also located at these levels. The fake breakout further supports the expectation of a deep correction. Pattern: 🟢 Chart Patterns: Reversal pattern: A double top has formed right at the top, alongside a shakeout, indicating a potential reversal. 🟢 Candle Patterns: The record session ended with a long wick hammer right at the swing level, signaling the probable start of another corrective swing move. Volume: 🟢 There was no significant volume during the entire impulsive move, which suggests that the move may have been a trap. This, combined with the fake-out trap, confirms the likelihood of an impending sell-off. Momentum RSI: 🟢 Although the momentum is still in the bullish zone with no range shift yet, a powerful divergence indicates that a substantial amount of bullish momentum is about to be exhausted. Caution is advised before considering any buy positions. Volatility Bollinger Bands: 🟢 The expansion phase of the Bollinger Bands is likely coming to an end, suggesting that the price might enter a sideways or corrective phase for some time. Strength ADX: The ADX still reflects a bullish trend, but given the other indicators, this may be lagging behind the actual price action. Rating: ⭐⭐⭐ (3 Stars) Probability: 60% The trade setup has a moderate probability, indicating a cautious approach with potential for significant reward if the expected correction occurs. ✔️ Entry Time Frame: Daily ✅ Entry TF Structure: Bearish Liquidity Sweep ☑️ POI: Fakeout at swing level 💡 Decision: Initiate a Sell position. 🚀 Entry: 578 ✋ Stop Loss: 589 🎯 Take Profit: 483 😊 Risk to Reward Ratio: 1:7 🕛 Expected Duration: 20 days SUMMARY: This Daily analysis suggests a counter-trend sell opportunity in a bullish structure showing signs of weakening. The presence of a double top, fake breakout, and lack of volume during the impulsive move all point toward an impending bearish correction. The setup is given a 60% probability rating, reflecting a cautious yet potentially lucrative opportunity. The recommended trade involves selling at 578 with a stop loss at 589 and a take profit at 483, yielding a risk-to-reward ratio of 1:7. The expected duration for this trade is 20 days, and it should be monitored closely for signs of the anticipated sell-off.
NShort
by Optimum369
"Deciphering Bitcoin's Descent: A Technical RoadmapTechnical Analysis Overview Chart Patterns: Descending Channel: The price has been trading within a descending channel, indicating a short-term bearish trend. Potential Double Bottom: There is a formation that resembles a double bottom pattern near the support level at 57364.46, which, if confirmed, could signal a trend reversal to bullish. Candlestick Patterns: Long Wick Rejections: Multiple candlesticks with long lower wicks near the support level suggest strong buying pressure and potential for a reversal. Bearish Candles: The recent large bearish candles indicate strong selling pressure, confirming the current downtrend. Indicators: Moving Averages: The price is currently below a downward sloping 50-period moving average, reinforcing the bearish outlook. RSI (Relative Strength Index): RSI is nearing oversold territory, indicating potential for a bounce back if the market considers BTC undervalued. Volume: There's a spike in trading volume at the support level, which may point to a significant interest level and a possible pivot point. Risk Management: Entry Points: The chart suggests two potential entries. Entry 1 at 61995.62 could be considered if there is bullish confirmation, such as a bullish candlestick pattern. Entry 2 at 58297.48 is closer to the strong support level and might offer a better risk-reward ratio. Stop Loss: A prudent stop loss for both entries could be just below the support level at 57364.46, where the chart shows a consolidation of buy orders. Take Profit: Two take profit levels are indicated. Take Profit 1 at 66917.28 represents a conservative target near the top of the descending channel. Take Profit 2 at 70920.99 is more ambitious and assumes a breakout above the channel. Risk-Reward Ratio: Assuming Entry 1, the distance to Stop Loss is approximately 3631 units, while the distance to Take Profit 1 is approximately 4921 units, yielding a risk-reward ratio of approximately 1:1.36. For Entry 2, the risk-reward ratio could be more favorable given the closer proximity to the support level. Trading Plan Entry: Wait for bullish signals near support levels or a breakout above the channel for Entry 1. Entry 2 requires confirmation of support holding with a strong bullish reaction. Exit: Take partial profits at Take Profit 1 and consider trailing stops or further profit taking if momentum continues towards Take Profit 2. Monitoring: Keep an eye on the RSI for divergence that may signal weakening of the current trend and volume spikes that could indicate trend reversals. Conclusion The market is currently in a downtrend within a descending channel, but approaching a strong support level that could catalyze a reversal. Traders should watch for bullish signals and confirmations before entering, and employ strict risk management to protect against further downside movement. #Bitcoin #Crypto #TechnicalAnalysis #TradingView #BTCUSD #Cryptocurrency #Blockchain #DayTrading #Investing #DigitalCurrency
BINANCE:BTCUSDLong
by The_TradingW0LF
7 Dimension Trade Idea for NZDCAD😇 7 Dimension Analysis Time Frame: H4 1️⃣ Swing Structure: Bullish 🟢 Structure Behavior: Breakout of Structure (BoS); Current market is in a sideways mood 🟢 Swing Move: Impulsive to sideways 🟢 Inducement: Done 🟢 Decisional OB: Mitigated, but discount area liquidity is unmitigated yet 🟢 Support: Holds the price for the 4th time, indicating strong demand 🟢 Trendline: Buildup, prebreak, and a potential spike for tapping extreme areas 🟢 Time Frame Confluence: H4, Daily, and Weekly 2️⃣ Pattern 🟢 CHART PATTERNS: Reversal, Rounding Patterns, Cup and Handle at both daily and H4 with strengthening buildup. Consolidation Rectangle makes this area interesting and demanding. 🟢 CANDLE PATTERNS: In this highly consolidated zone, no candlestick pattern is effective. Watch and wait until breakout, then analyze candle behavior at breakout levels. 🟢 Volume: High volume throughout consolidation indicates bull dominance. Watch for volume on breakout or fakeouts for a final decision. 4️⃣ Momentum RSI 🟢 Momentum: Totally sideways 5️⃣ Volatility Bollinger Bands 🟢 Volatility: Highly contracted 6️⃣ Strength According to ROC 🟢 Values: NZD is stronger than CAD 💡 Decision: Wait till breakout or fakeout, but in both scenarios, consider buy positions 🚀 Entry: Breakout at 0.8418 / Fakeout at 8292 ✋ Stop Loss: Breakout at 0.8383 / Fakeout at 8275 🎯 Take Profit: 0.8978 2nd Exit if Internal Structure changes; also Exit on 3rd trendline breakout, FOMO 😊 Risk to Reward Ratio: 20 🕛 Expected Duration: 50 days 📚 SUMMARY: The analysis points to a bullish trend with a strong consolidation zone. Breakout or fakeout opportunities are highlighted, emphasizing a buy strategy. The risk-to-reward ratio is favorable, and a patient approach is recommended until decisive market movements occur.
Long
by Optimum369
7 Diamnesion Analysis for OIL 😇 7 Dimension Analysis Time Frame: H4 1️⃣ Swing Structure: Bearish 🟢 Structure Behavior: Break of Structure (BoS) 🟢 Swing Move: Corrective move is filled POi, now impulsive is starting 🟢 Inducement: Done 🟢 Pull Back: 1st and deep 🟢 Internal Structure: Bearish 🟢 Ext OB: Mitigated 🟢 Supply, Distribution, Rejection: Trendline broke, trend line Breakout/CIP done 🟢 Time Frame Confluence: Daily, H4 2️⃣ Pattern 🟢 CHART PATTERNS: Reversal, Rounding Patterns, Double top 🟢 CANDLE PATTERNS: Record Session count observed in internal leg, Shrinking long wick end, Change in guard engulf, Momentum: strict engulfing with bearish strength, Tower top also observed 3️⃣ Volume 🟢 Fixed Range: In this area, bears are already strong 🟢 No Volume during correction 4️⃣ Momentum RSI 🟢 Zone: Bearish sideways 🟢 Range shift: Bullish to sideways properly 🟢 Overbought rejections count: 2 5️⃣ Volatility Bollinger Bands 🟢 Middle band: Price below the middle band with a ninja candle bearish closing 🟢 Contraction: Fully 🟢 Two Band Punchers: Observed in the upper band 6️⃣ Strength According to ROC 🟢 Values: USD -3.05, OIL is -15 7️⃣ Sentiment According to all sentiments, oil prices are under pressure ✔️ Entry Time Frame: H4 ✅ Entry TF Structure: Bearish ☑️ Current move: Impulsive ✔ Support Resistance Base: Supply area rejection ☑️ Candles Behavior: RSC, bearish Momentum ☑️ FIB Trigger event: Done ☑️ Trendline breakout: Done 💡 Decision: Sell at opening 🚀 Entry: 73.45 ✋ Stop Loss: 76.87 🎯 Take Profit: 62.55 2nd If Internal Structure Changes also Exit 3rd Trendline Breakout, Fomo 😊 Risk to Reward Ratio: 1:3.5 🕛 Expected Duration: 15 days SUMMARY: The analysis suggests a bearish outlook, supported by structural, candlestick, and volume indications. Momentum in RSI and Bollinger Bands also align with the bearish stance. The decision is to sell at the opening with specific entry, stop loss, and take profit levels, considering potential internal structure changes and trendline breakouts.
TVC:USOILShort
by Optimum369
7 Dimensions Bearish Analysis for EURCHF 🕛 TOPDOWN Analysis Yearly: Super bearish Monthly: Just broke the bearish structure Weekly: Also just broke bearish structure 😇 7 Dimension Analysis Time Frame: H4 1️⃣ Swing Structure: Bearish 🟢 Structure Behavior: Break of Structure (BoS) 🟢 Swing Move: Impulsive move is fully intact 🟢 Inducement: Not done yet, but a bearish buildup suggests more bearish momentum may occur. 🟢 Internal Structure: Totally sideways 🟢 Decisional and Ext OB: Both unmitigated. 🟢 Support Breakout: Awaiting; at CIP, a re-entry opportunity may arise. Buildup and prebreak qualities indicate strong bearish momentum. 🟢 Traps: fakeout at the bottom support; in this situation, a rebreakout is expected for continuation. 🟢 Time Frame Confluence: H4 2️⃣ Pattern 🟢 CHART PATTERNS: Continuation - Fall and Base, Symmetric triangle at the base. 🟢 CANDLE PATTERNS: In a sideways market, candlestick patterns might gain importance at the support or triangle breakout. 3️⃣ Volume 🟢 Fixed Range: Very high volume structure breakout. 4️⃣ Momentum RSI 🟢 Zone: Currently in a bearish to correction zone, technically indicating a bearish trend. 🟢 Divergence: Hidden bearish at the last two internal swings. 🟢 Grandfather Father Son Entries: A 7-star setup is present for bearish. 5️⃣ Volatility Bollinger Bands 🟢 Full Tight Contraction: Squeeze breakout awaited. 🟢 Walking on the Band: Highly expected. 6️⃣ Strength According to ROC 🟢 Values: EUR 2.72 vs CHF 6.55 7️⃣ Sentiment ✔️ Entry Time Frame: H4 ✅ Entry TF Structure: Bearish ☑️ Current Move: Sideways ✔ Support Resistance Base: Triangle ☑️ Candles Behavior: Bears appear stronger. 💡 Decision: Sell 🚀 Entry: 0.9261 ✋ Stop Loss: 0.9366 🎯 Take Profit: 0.91060, 2nd Exit if Internal Structure changes, also Exit 3rd Trendline Breakout, FOMO. 😊 Risk to Reward Ratio: 3 🕛 Expected Duration: 15 days SUMMARY: The market is exhibiting a bearish bias, with a clear breakdown of yearly, monthly, and weekly structures. The H4 timeframe reveals a robust bearish setup, awaiting confirmation of a support breakout for potential sell entries. Various indicators, including volume and momentum, support the bearish sentiment. The analysis recommends selling with a defined risk-to-reward ratio and a 15-day expected duration.
Short
by Optimum369
2
AMD Broke Out... Now What??!!... An Earnings Story!!AMD appears to have confirmed a technical breakout on the Daily chart. The stock has experienced a meteoric rise since its last earnings report(10/30/23) moving over +20% in just a few short days. This extremely BULLISH price action has not only been fueled by a great earnings report, but there is also a major news catalyst driving the stock price higher. The catalyst has been strong enough to boost the price despite weak 'Q4 forward guidance. There are talks of a new AI chip that may allow them to compete with the likes of NVDA, the main player in the semiconductor industry. AMD may never surpass NVDA in stature however, AI projects to be the biggest technological innovation since the implementation of the internet making being the second, or even third biggest player in the space not a bad spot to be in. The need for semiconductors in general will most likely dominate the future resulting in plenty of profits to be made. The recent price action of AMD is really a tale of earnings. Zooming out to the Daily chart and this phenomenon can be easily identified. The story really began with an earnings miss on 11/01/22. A few days before the release of this report AMD would set what ultimately turned out to be its 52 wk Low. This was preceded by a precipitous drop from the ATH of $164.46 set on 11/30/21. This rise to a new ATH and subsequent fall to a new 52 wk Low ironically occurred during a streak of nine consecutive earnings beats. Further analysis and one is able to discern that price action broke down over a series of DBL TOP patterns before recovering in a series of a DBL BTM patterns. This behavior may prove to be foreshadowing, but I digress. Fast forward to 11/3/23 AMD has just closed above the neckline of a DBL BTM pattern, after completing a series of DBL TOP patterns, in the midst of four consecutive earnings beats. History may not repeat itself, but it has a tendency to rhyme. The stock has also broken through the top of a Descending Channel(D) that it has been trading in since the start of the series of DBL TOP patterns. The upward momentum has been so strong that the stock broken and closed above the 200MA(D), 100MA(D), and 50MA(D) over just the last three trading sessions, making a new local high in the process. The stock has been on a rocket ship since finding support at levels identified and explained in a previous idea(see AMD Earnings Breakout or Breakdown). As for this idea. The series of DBL TOP patterns is represented by the black curves above the would be tops, with their respective necklines identified by the small black circles seen on the chart. The DBL BTM pattern is represented by the green curves found at the would be bottoms with the neckline also identified with a circle as well. The red curves represent a failed DBL TOP even after a closing confirmation on the Daily chart below what would have been the neckline. Proof that the markets can do anything at any time therefore, you can never let your guard down. However, it should be noted that this failed DBL TOP pattern comes after two successfully executed DBL TOP patterns, and a third that could be considered successful depending on your perspective. The third one just happened to occur near the 200MA(D) which has historically been strong support for any asset. Regardless the diagnosis it still amounts to a series of successful BEARISH patterns that have begun to fail, possibly indicating BULLISH price action moving forward. Bull Case 1. Strength above $111.31. If the DBL BTM pattern is to play out, this area would be the neckline of the formation. 2. Strength above the top of the Descending Channel(D) in which the stock has been trading for the past three months or so. The stock has closed above the top of the channel with momentum. It would not be shocking to see the stock retest the top of the channel. 3. A retest and bounce from the local low, creating a higher low. This would be a BULLISH indication as the stock has already created a higher high signaling the potential start of an uptrend. Bear Case 1. Strong rejection at the stock's current levels. Such price action could imply yet another DBL TOP formation, leading to further downward momentum. 2. BEARISH price action, chart patterns, or strong rejection at the yellow rectangle drawn above the current price level. This area represents the Golden Zone of a BEARISH Fib Retracement from the local high of $132.83 to the local low of $93.12. This area serves as a strong area of resistance and could serve as a logical area of rejection. Especially given how far and fast the stock has run since earnings. 3. A break below the DBL BTM pattern all together. This would be extremely BEARISH and could signal a falling knife situation. Under these circumstances bias should switch to the downside and the stock should be monitored for short opportunities.  *As things currently stand, bias is to the upside, with a guilty until proven innocent approach. The market has been extremely erratic, and rallies have been hard to trust. The stock has only created its first higher high, after trading in a clear downtrend(a series of lower highs and lower lows). *RSI(D) displays a DBL BTM formation that has been confirmed with a break of the neckline. *Watching AVP(52 wk Low)(POC), Moving Averages(D), Descending Channel(D), Key Levels(black rectangles), Ascending Support(red trendline), Bollinger Bands(D), and the AVWAP(52 wk Low) at their respective levels for additional confluence.
NASDAQ:AMDLong
by JimmyNoDice
BITCOIN Analysis & Forecast 11.3.23 (AI Assisted)Watch the video version to see how this was generated ... your mileage may vary !!! . . .   . . .   . . . Key Statistics and Technicals: - Bitcoin Price: $34,474.71 (A drop of $516.32 or -1.48% for the day) - Day's Range: $34,347.89 - $34,997.81 - 52 Week Range: $15,479.25 - $60,324.21 - Volume: 94 - Average Volume (10 days): 370 - Market Cap: $673.041B - FD Market Cap: $723.638B Performance Metrics: - 1 Week: +0.82% - 1 Month: +25.57% - 3 Months: +16.65% - 6 Months: +19.65% - YTD: +108.73% - 1 Year: +70.95% FUNDAMENTAL ANALYSIS: News headlines reveal a mixed sentiment. On one hand, there are articles suggesting potential upside (e.g., "Bitcoin could be getting ready for a strong bull move"), while others indicate possible drawbacks (e.g., "Bitcoin price in risky territory; BTC faces "massively overvalued" stock"). The day's range, which is a difference of 654.92 USD, suggests a relatively moderate intraday volatility. Considering the 52wk range, Bitcoin is trading near its 52-week high, which can be an indicator of bullish momentum, but it also brings an increased risk of a correction or pullback. Another critical aspect to consider is the broader macroeconomic environment.  Several news articles allude to potential regulatory changes, institutional involvement, and specific events that might influence price (e.g., "PayPal freezes Crypto kiosk after brief sell-out boom" or "Argentinian Presidential Candidate's Plan to Mine BTC Stirs Debate"). Positive Sentiment - - "MicroStrategy gains $500 million with Bitcoin rise in Q3 2023." - "Spot ETF 'undoubtedly' launch isn't guaranteed to sink Alts, Analysts say." - "Bitcoin hits new ATH at $36,000 as rally seems unstoppable." - "BTC hitting $34k could spell good news for altcoins." - "Bitcoin's price is mostly flat as Fed holds rates steady, denies macro shift." Negative Sentiment - - "Is Bitcoin due a "significant" correction?" - "ETF launch stokes fears Bitcoin and Ether trading with flash crash risks." - "New BTC price 'breakouts see Bitcoin traders' caution lengthens to six-week." - "Crypto volatility surges; Analysts say be ready for a drop." - "Bitcoin's price volatility hints another increase 'On the Cards'?" Weighting - - Positive Sentiment: 40% - Negative Sentiment: 60% - Technical Indicators: Neutral with a tilt towards Strong Buy Upside Potential - Given the recent all-time high and positive sentiment from various news outlets, there's potential for BTC to retest its recent high at $36,000. Based on current momentum and historical performance, this could happen within the next 2-3 weeks. Probability: 60% Downside Potential - Considering the mixed sentiments and potential for a significant correction, BTC might see a drop towards the $32,000 - $33,000 range in the short term. This pullback might offer a buying opportunity. Probability: 40% Misc. Observations - Bitcoin (BTC): Currently, at $35428.53, it's up by 2.22%. Its dominance stands at 53.98%. The total market cap excluding BTC and ETH is at $368.143B. Highest Gainers: - Alchemy Pay / United States Dollar: +20.64% - CELO / US Dollar: +11.06% - Amp / United States Dollar: +8.70% Highest Losers: - XDC / Dollar: -3.27% - Tezos / United States Dollar: -3.30% - Gods Unchained / United States Dollar: -1.04% High Volume Movers: - Crypto Total Market Cap Exclude BTC and ETH: 88.333B - Bitcoin / U.S. Dollar: 283.834K - Litecoin / U.S. Dollar: 267.107K Bitcoin remains a dominant force with more than half of the total crypto market share. PoW cryptos such as Ethereum Classic and Horizen are seeing positive traction. Amp, under the Currency/Remittance category, has a significant volume, making it one to watch closely. Among investment-grade cryptos, CELO's 11.06% increase is notable, indicating increased interest or potential news driving the spike. Contrarian Perspective: High gains like those seen in ACH and CELO might face corrections. High gains in a short time frame can sometimes indicate overbuying, leading to potential profit-taking shortly after. Bitcoin's dominance, while significant, means that a downturn in its price can significantly influence the entire crypto market. . . .   . . .   . . . INDICATOR SUITE: Tesla Coil: - len: 23.39 - 3xlen: 70.17 - len mirror: 16.61 - 3xlen mirror: -24.3 - average mirror: -5.06 - average: 34.94 Rate-of-Change (RoC): - RoC: 32.74 - RoC + Signal Line Cross Up: 0.00 - RoC + Signal Line Cross Down: 0.00 - Various other sub-indicators including Bull, Hidden Bull, etc. ATR + sma histogram: - Histogram: 367.34 - ATR: 1102.50 - SMA: 735.16 OnBalanceVolume (OBV Cross): - OnBalanceVolume: 7.579M - Smoothing Line: 7.473M Volume Analysis: - Various plots ranging from 0.00 to 57892.77 HVol (dcedcow): - Volume: 10.37K RVol Pro: - Value: 10.37K Range Analysis - By Leviathan: - VWAP: 27830.88 ADP: - Primary ADP: 73 - Secondary ADP: 71 - Primary Signal Line: 71 - Secondary Signal Line: 68 Discretionary Weightings: Given the information and its relevance to Volume Spread Analysis (VSA) and Volatility … - OnBalanceVolume (OBV): High importance. OBV measures the positive and negative flow of volume in a security relative to its price. - ATR: High importance. Captures an asset's volatility. - RoC: Medium importance. Measures the percentage change in price from one period to the next. - Tesla Coil: Low to medium. Provides multiple layers of data related to price action. Technical Analysis of Indicators: - Tesla Coil: The chart seems to be in a consolidation phase, with the coil suggesting a possible breakout soon. - Rate of Change: The ROC is relatively stable. This stability may suggest that the prevailing trend, be it bullish or bearish, is likely to continue. - Average True Range: The ATR has remained consistent, suggesting that the current level of volatility is sustained. A higher ATR suggests increasing volatility, which might mean Bitcoin is experiencing significant price swings. - On-Balance Volume (OBV): OBV indicates net buying/selling pressure. A declining OBV hints at a potential trend reversal, as volume precedes price. The OBV value is quite close to its smoothing line, indicating a balanced sentiment in the market. - Time-Segmented Volume: This appears to be more bullish, suggesting institutional buying. - Volume Spread: We see periods of high volume spread, indicating strong buying and selling forces. - Accumulation/Distribution: The line suggests more distribution than accumulation recently, a potential bearish signal. Price Projection: Given the current trend and indicators … - Upside Potential: BTC could test its recent ATH at $36,000. Based on current momentum and external factors like institutional involvement, there's a 60% probability of reaching $36,500 within the next 2-3 weeks. - Downside Risk: Considering negative news sentiment and potential regulatory challenges, BTC might face support at around $32,000. If this support breaks, we could see a further decline to $30,000 with a 40% probability over the next month. Insights & Actionable Suggestions: - Volatility & Volume: The ATR of 1102.50 indicates a high level of volatility for BTC in its daily price movement. The current volume is below its 10-day average, suggesting lower trading activity. - RoC Indication: A positive RoC of 32.74 suggests the price momentum is currently bullish. - OBV Insight: The OnBalanceVolume is slightly higher than its smoothing line, indicating that volume on up days is generally outpacing volume on down days. This can be a bullish sign. - Performance Metrics: BTC has seen a robust performance YTD with a growth of 108.73%. It's essential to note that despite short-term fluctuations, the long-term trend over the past year has been bullish. Visual Representation: For a visual, consider plotting the mentioned levels on your chart - - Support at $32,000 (red line) - Resistance or next target at $36,500 (green line) - Current price at $34,522.66 (blue line) - Potential zones of interest (in a shaded region) between the support and resistance. Additional Indicator Suggestion: Considering the current market conditions and to get a better understanding of the underlying trend strength, I'd suggest incorporating the Directional Movement Index (DMI). DMI can help ascertain if the trend is strong or weak, and when used with the ADX line, it can further validate the strength of bullish or bearish sentiments. This could be pivotal in the given circumstances where the market appears to be at an inflection point. Lastly, given the data at hand, what are your thoughts on the potential for Market Makers or institutions manipulating the current BTC price, especially considering the evident bullish sentiment? Do you believe there might be an underlying play to hunt for retail liquidity? . . .   . . .   . . . PRICE ACTION ANALYSIS (1D): Initial Observations: - Volume Profile: The chart showcases a fixed range volume profile to the left. The Point of Control (POC) - the price level with the most traded volume - is clearly visible around the 24848.00 mark. - Volume-at-Time Histogram: There’s a significant volume spike around the range of $18000-$21000, indicating a possible support level or accumulation zone. - Accumulation/Distribution & Time-Segmented Volume: The accumulation/distribution line is gradually inclining upwards, suggesting a net inflow of volume or accumulation. The time-segmented volume also points towards a bullish sentiment. - Tesla Coil & Average True Range (ATR): The Tesla Coil's movement seems relatively stable. ATR, representing volatility, is increasing, suggesting possible strong price movements in the near term. - Price Action: The recent price action exhibits a bullish momentum, breaking through a significant resistance level. VSA-Derived Forecast: - The strong accumulation and high traded volume at lower price levels hint at a bullish sentiment among traders. Institutions or market makers seem to have absorbed selling pressure around the $18000-$21000 range. - The upward trend in accumulation/distribution points towards a continued bullish trend. - Given the elevated ATR, expect larger price swings, both up and down, in the coming days. Reconciliation with 1D Price Chart: - The price is currently moving within an upward channel. Its recent breakout indicates a potential continuation of the bullish trend. - While the price is approaching a Fibonacci level, considering the strong volume and accumulation signs, it's likely to test the next Fibonacci level upwards. - The intersection of the VWAP at 24848.00 with the POC can act as a significant support level in the event of a pullback. Improved Forecast: Upside Potential: Given the strong bullish sentiment from both VSA and price action, expect Bitcoin to test the 0.236 Fibonacci level in the near term, which could act as a minor resistance. On breaking this, it could move towards the 0 level. - Entry Point: Current level or on a minor pullback to the recent breakout zone. - Stop Loss: Just below the VWAP at around 24000. - Profit Target: 0.236 Fibonacci level as the first target and 0 level as the next target. - Risk:Reward: Approximately 1:3, given the distance between the current price and the stop loss compared to the potential upside. - Time Horizon: 2-4 weeks. - Probability: 70% for reaching the 0.236 level, 50% for reaching the 0 level. Downside Potential: If there's a reversal, expect Bitcoin to find strong support around the VWAP (24848.00) due to the volume profile. - Entry Point: If the price fails to maintain the breakout level. - Stop Loss: Above the recent high. - Profit Target: 24848.00. - Risk:Reward: Approximately 1:2.5. - Time Horizon: 2-3 weeks. - Probability: 30% given the current bullish sentiment. . . .   . . .   . . . PRICE ACTION ANALYSIS (1W): The 1W (weekly) chart provides a wider perspective and thus offers a broader context to the previous 1D (daily) view. Here's a detailed analysis: 1. Price Action Analysis: - Fibonacci levels: On this broader scale, we observe Bitcoin's price respecting various Fibonacci levels, notably the 0.236 and 0.618. - Structure: The significant pullback after the previous bullish run suggests a possible correction or consolidation phase. 2. Volume Spread Analysis (VSA): - Volume-at-Time histograms: There's a clear Point-of-Control (POC) around the $27,650 level, indicating it's a key price point where a significant amount of trading has taken place. - Accumulation/Distribution: The accumulation phase seems prominent before the surge that occurred around late 2020, suggesting institutional involvement. Post-2020, we see a distribution phase followed by a consolidation pattern. - On Balance Volume: This shows that the volume is moving with the trend. The current trajectory indicates possible accumulation. 3. Volatility: - Tesla Coil: Notably calmer, implying reduced volatility on the longer time frame. - Average True Range (ATR): Volatility seems to be tapering off from previous highs. This reduction in volatility on a weekly chart could imply a significant move is brewing. 4. Trend Exhaustion: - We're witnessing signs of consolidation post the previous rally. The intersecting points of the VWAP and other tools can provide potential points of volatility, which we should monitor closely. Given this wider perspective: Upside Potential: The break above the VWAP around $27,650 and stabilizing above the 0.236 Fibonacci level suggests potential for upside momentum. A break above recent highs could target the next Fibonacci level at 0.618. - Entry: Around the current price level. - Stop Loss: Below the 0.236 Fibonacci level. - Profit Target: Just below the 0.618 Fibonacci. - Risk:Reward: Approximately 1:2.5. - Time Horizon: 3-6 months. - Probability: 60%. Downside Potential: If Bitcoin's price fails to sustain above the VWAP and breaks below the 0.236 Fibonacci level, we could see a further decline towards the lower Fibonacci levels. - Entry: On confirmed break below 0.236 Fibonacci. - Stop Loss: Above recent swing high. - Profit Target: Next Fibonacci level below. - Risk:Reward: Approximately 1:2. - Time Horizon: 2-4 months. - Probability: 40%. Additional Indicator Suggestion: Given the importance of trend direction in this scenario, consider integrating the Parabolic SAR (Stop and Reverse) for this timeframe. The Parabolic SAR can provide dynamic entry and exit points and can be particularly useful in trending markets. . . .   . . .   . . . PRICE ACTION ANALYSIS (1h): Volume Spread Analysis (VSA): - Volume Profile: A prominent high volume node appears around $33,000, indicating a strong support level. The Point-of-Control (POC) is visibly marked and rests just above this. - Time-Segmented Volume: There's a noticeable surge in volume during the rapid price ascent, followed by a decline, suggesting a possible buying exhaustion. Volatility: - Tesla Coil: Relative stability is observed with slight periodic spikes, indicating contained volatility. - Average True Range (ATR): No drastic peaks, which suggests that the price movement remains within a typical range for the time being. Trend Exhaustion: - The price is approaching the upper Fibonacci level (0.236). Should it break, we might expect a rally towards the next Fibonacci level (0.382). However, the consistent touch-points without breakthrough hint at resistance. - The VWAP (Volume Weighted Average Price) sits below the current price, suggesting the asset is trading at a premium. Indicators: - On Balance Volume (OBV): Displays an uptrend, suggesting buying pressure. However, the recent flattening can be a sign of a possible decline in this momentum. - Volume Spread: The lack of prominent bearish bars with increased volume indicates that selling pressure isn't dominant. Forecast & Trading Strategy: -Short-Term Bullish Scenario (60% probability): - Entry: $34,200 - Stop Loss: $33,400 (near the high volume node for support) - Profit Target: $35,500 (approaching the 0.236 Fibonacci level) - Risk:Reward: 1:2.6 - Time Horizon: 24-48 hours. -Short-Term Bearish Scenario (40% probability): - Entry: $33,800 upon breaking below the support. - Stop Loss: $34,200 - Profit Target: $33,000 (next volume node) - Risk:Reward: 1:2 - Time Horizon: 24-48 hours. Session-Based Volatility:Considering typical crypto market behavior, anticipate increased volatility during the overlap of the Asian and European sessions and the opening of the New York session. Trading windows: - Asian-European Overlap: 6:00-9:00 UTC - New York Session Opening: 13:00-15:00 UTC Questions: - Are there any macroeconomic events or news catalysts anticipated which might influence BTC's price action during our forecasted horizon? - Considering your strategy revolves around Market Makers and institutional manipulation, have you noticed any recent patterns or behaviors in other assets that might indicate a larger play in Bitcoin? . . .   . . .   . . . PRICE ACTION ANALYSIS (15m): Price Action: The recent sharp decline indicates a strong bearish momentum, though the price has started consolidating within the $33,800 to $34,600 range. This consolidation is a good sign, showing that the decline might be temporary, or at least, we might experience some sideways movement for a while. Volume Spread Analysis (VSA): - We can spot a series of high volume spikes during price declines, indicating potential buying pressure or accumulation. The high volume during the decline around the 29th and subsequent upward movement confirms a potential bullish outlook. - The Point of Control (POC) shown appears to be a significant support level where most trading has occurred. Prices tend to gravitate towards the POC, so this can be a potential target in retracement scenarios. Indicators: - Tesla Coil: Shows signs of potential volatility with multiple peaks, but currently, it's maintaining stability, hinting that the current volatility is diminishing and suggesting we might be entering a phase of price consolidation. - Rate of Change (ROC): It's fluctuating around the 0 line, signaling a probable shift in momentum. However, the current consolidation means a lack of directional bias. - Average True Range (ATR): Seems to be decreasing, aligning with the Tesla Coil's inference. - On-Balance Volume (OBV): A mild decline is noticed, hinting that selling volume has been slightly overpowering buying volume, but not decisively so. - Time-Segmented Volume: The chart indicates more buying during certain periods, suggesting institutional interest at these levels. - Volume Spread: Shows accumulation rather than distribution, reinforcing the bullish bias. - Accumulation/Distribution: Displays a divergence. Even though the price made a lower low, the A/D made a higher low, suggesting underlying buying pressure. This could suggest potential upside if this trend continues. Harmonic Patterns: There's a completion of a bullish harmonic pattern (potential Gartley or Bat) with the price touching the 0.786 retracement level and bouncing back, reinforcing a potential bullish move. Several harmonics appear to have reached completion, suggesting potential reversal zones. The intersection of these patterns with session-based volatility peaks can give ideal entry and exit points. Session-based Volatility: - It's evident that the price experiences heightened volatility during the overlap of the Asian (Tokyo) and European (London) sessions, and similarly, during the overlap of the European and American (New York) sessions. This suggests two potential windows for scalping opportunities: One shortly after the Tokyo open (when European traders are still active) and another after the London open (when American traders enter the fray). Forecast and Trading Windows: - Short-Term Bullish Bias: The recent bounce from the 0.786 level suggests a move towards the 0.382 and 0.236 levels as immediate targets. For scalping, consider long entries on pullbacks near significant support zones, like the POC or the lower boundary of the pitchfork. Entry Point: Around $34,600 (near POC) Stop Loss: $34,400 (below the recent swing low) Profit Target 1: $34,800 (0.382 level) Profit Target 2: $35,000 (0.236 level) Risk:Reward: Approximately 1:2 and 1:4 for the two targets, respectively. Time Horizon: Given it's a 15m chart, this strategy might play out in the next 12-36 hours. Probability: Medium-High. Multiple indicators and VSA align with this bullish outlook, but always be prepared for unexpected events, especially in the crypto space. Enhancements based on the 15m chart: - The shorter timeframe provides a granular view of price movements and allows for precise identification of entry and exit points. - The session-based volatility observed aligns with typical forex market behaviors and can be used strategically for scalping. Forecast: Given the indicators and chart patterns, there's a probable upside potential in the short term. The price might test the $34,600 resistance before determining its next move. Trade Recommendations: - Long Position: - Entry: Around $34,100 (after confirming the breakout of consolidation) - Stop Loss: $33,700 (below the 0.786 Fibonacci level) - Profit Target: $34,600 - Risk:Reward ratio: Approx. 1:2 - Time Horizon: 24-48 hours (given the 15m timeframe) - Probability: ~60% (based on current indicators and patterns) Contrarian Perspective: While multiple signs point to a short-term bullish move, it's crucial to consider the flip side. The price could reject the upper boundaries of the pitchfork, and a decrease in volume could indicate fading buyer interest. A clear break below the POC might negate the bullish outlook. Remember to adjust positions based on real-time data, especially during high volatility sessions. Your thoughts? . . .   . . .   . . . Trade Ideas: 1D Chart - Swing Trading The fixed range volume profile indicates substantial support in the vicinity of $32,500, making it an optimal region for establishing a position. The VWAP, marked at $24,848.00, acts as a historical average price, and the current price is well above this level, showing bullish sentiment. The intersection of Fibonacci levels with price action is noteworthy, especially around the 0.236 region. Accumulation/Distribution indicates a strong buying pressure, and the Tesla Coil along with Average True Range confirms the present volatility. -Optimal Long Position: - Entry Point: $34,400 (nearest to the day's low with support indicated by the volume profile). - Stop Loss: $33,500 (just below daily ATR value, providing a buffer). - Profit Target: $36,000 (near the 52-week range midpoint). - Risk:Reward Ratio: 1:3. - Time Horizon: 2-3 weeks. - Probability: 65%. Short Position: Though the current trend is bullish, potential trend exhaustion can be anticipated by observing the Price Action with Fibonacci channels and overlapping Pitchforks. The region above $36,000 might act as a strong resistance given the proximity to the 52-week high and the subsequent volume gap. -Optimal Short Position: - Entry Point: If Bitcoin drops below $34,200. - Stop Loss: $34,700 (considering day's high). - Profit Target: $32,500 (slightly above the ATR's lower range). - Risk:Reward Ratio: 1:3.5. - Time Horizon: 1-2 weeks. - Probability: 35%. . . .   . . .   . . . 1h Chart (and below) - Scalping - Long Position: - Entry Point: A buy order slightly above the recent consolidation zone, around $33,200. - Stop Loss: $31,500 (Just below the Point of Control). - Profit Target: The first target is at the next volume void around $34,700. A secondary target, if momentum persists, is at $36,500. - Risk:Reward Ratio: For the first target, the risk:reward is roughly 1:3. For the secondary target, it's approximately 1:6.5. - Time Horizon: Given the 1-hour chart, anticipate this trade to play out in the next 12-48 hours. - Probability: Estimating a 65% chance of reaching the first target and a 40% chance of hitting the secondary target, given current consolidation and volume analysis. . . .   . . .   . . .
INDEX:BTCUSD
by TheLeadingIndicator
1
Signs of a BottomAre we are still too close to the top to be at the bottom? As painful as this year has been, we are still above the .382 of the trend up since the Covid low. This could be a long process due to bear market rallies that have seemed ferocious. Folks who are long are happy, and those who are short are irritated. Bear-market rallies: short lived recoveries of 5% or more that occur during the midst of a bear market before stocks fall to new lows. The overall trend is DOWN. The trend can be your friend. I do not think we are close to a bottom but we all have our own opinion. Some signs a security are bottoming: -Breaking trendlines to the upside. This can change later but can be useful. -Reaching support areas in long term charts like weekly or monthly timeframes. -Bullish candlestick patterns -Oversold status on technical indicators, realizing that a security can stay oversold for extended periods of time and indicators change frequently. I am not a big indicator person but many depend heavily on them. -Bullish chart patterns like double bottom, triple bottom patterns, reverse head and shoulder and cup and handle patterns. Basically, chart patterns that hint of the stock bottoming. -Basing patterns like Rectangles and Triangles that are also known as consolidation patterns. -Inflection point-The inflection point refers to an event that changes the progress of a company, economy or geopolitical situation. It is the turning point after a dramatic change. -The security reclaims it's moving averages. -Relative volume. -Capitulation: When price has become so low that here are few or no sellers left. LOL. How do we know this? We don't but looking at the size of the volume bars and all of the above can help. If you see 10 monster long red candles in a row (exaggeration) then those candles contain a lot of sellers. If fewer sellers exist and are selling at lower prices, people will be looking to sell high and if buyers remain, the prices of the securities will rise. They say the stocks who led the rally up are often the last to hit the bottom. I do not know why for sure, but maybe because there are more buyers inside the leaders than the stocks who did not see the gains that AAPL or MSFT saw? Patience can be a virtue. Ideas are welcome as I am sure I did not hit every method of finding a bottom. Also, I am curious to find out how many are bullish or are you bearish about the market right now? No recommendation
AMEX:SPY
by lauralea
4
Why I Don't Trade Patterns AnymoreHi Purpose Traders. Let's talk chart patterns. As you may know there are dozens of chart patterns out there. I don't know if you're like me, but I get a bit anxious when there are too many things to choose from. It's like being in an ice cream shop. I like ice cream, but I only eat 1 flavor most of the time. Long story short, I used to be a pattern trader and what I realized was like most patterns, I had to wait for the pattern to form before I could trade it. By the time a pattern formed I would have missed a good move because the pattern would change and price moved without providing me an entry. I remember there was a time I thought I saw a bullish wedge formation that turned into a flag that turned into a false break out trade. The more I kept waiting for patterns to form the more I realized I just don't like them because they constantly change. I believe it's the whole break and retest with different timeframe variables that leave a bad taste in my mouth. What do I do instead? I focus on price fluctuations to identify the trend. I figured the more decisions I eliminate the better my trading will be and it has improved tremendously. This wasn't an overnight thing and yes I do still see patterns, but creating my own edge by trading one strategy with simple rules helps me focus on price action alone. I like a cleaner chart with as little detail as possible. No games. No patterns. No lines blocking the flow of price. Just straight price action. Do you prefer to trade this way too or are patterns your thing. There is no right o wrong. You have to trade what works for you.
by ShaquanLopez
2
GBPJPY 1H QUASIMODO STRATEGYQuasimodo Pattern Trading Rules The Quasimodo trading rules for sell signals can be summarized as follow: A prevailing uptrend needs to be visible – series of HH followed by a series of HL. Break in the market structure – price start to make lower lows LL. Entry Option #1 - Place a sell order near the right shoulder. Entry Option #2 - The 50% - 61.8% Fibonacci retracement zone is a better entry technique if price does not reach right shoulder level. Hide the protective stop-loss above the last higher high HH. Take profit near the first valley of the Quasimodo chart pattern. Final Words – Quasimodo Pattern Trading In summary, Quasimodo pattern trading is a new technique used to catch trend reversals. Don’t be afraid to give it a try just because it’s a new chart pattern. When all the elements of this reversal pattern come together, you have a receipt for success. With our Quasimodo trading strategy, you now have a proper framework to tame the high volatile forex market. So, here is a quick summary of what you’ve learned today: Quasimodo chart pattern is a reversal pattern. Quasimodo trading is not similar to Head and Shoulder trading. Quantify the crookedness of Quasimodo by drawing a visual line on the price chart. V-shaped price structure of the Quasimodo pattern produces more profitable signals. The 50% - 61.8% Fibonacci retracement zone is a better entry technique. Quasimodo Trading Strategy – The Crooked Pattern from Notre Dame Learn the Quasimodo trading strategy to find profitable trend reversal opportunities. Throughout this trading guide, you’ll learn what is Quasimodo pattern trading, how to spot this reversal setup, what are the similarities between Quasimodo trading and Head and Shoulder trading, and, last but not least, we’re going to have a deep dive into how to create a winning trading strategy. Trading is not an easy game, but with the Quasimodo trading setup you can gain some valuable insight into that market sentiment, more precisely, you will know in advance when the trend is about to reverse. By being able to stay ahead of the market, you can increase the accuracy of your trading strategy and improve your expected return on investment (ROI). Table of Contents 1 What is Quasimodo? 2 Differences between Quasimodo and Head and Shoulder 3 When to Trade Quasimodo Trading Setup? 4 How Quasimodo Pattern Trading Works? 5 Quasimodo Pattern Trading Rules 6 Quasimodo Trading Strategy 7 Final Words – Quasimodo Pattern Trading What is Quasimodo? Quasimodo is a reversal trading pattern that appears at the end of an uptrend. As a price formation, the Quasimodo pattern is depicted by three peaks and two valleys, where: First, the middle peak is the highest, while the outside two peaks are of the same height. And secondly, the second valley is lower than the first one. Note* Some technicians might call this reversal pattern the “Over and Under” chart pattern. Quasimodo pattern in forex trading predicts a bullish-to-bearish trend reversal. Based on the analogy of market sentiment we can distinguish two types of Quasimodo patterns: Bullish Quasimodo, which appears at the end of a downtrend. Bearish Quasimodo, which appears at the end of an uptrend. Now, you might be inclined to believe that the Quasimodo pattern looks similar to the Head and Shoulder trading pattern. You’re not mistaken as the two trading chart patterns are related but at the same time, they are distinguished price formations. Below, we’re going to expand on the differences between Quasimodo trading vs. Head and Shoulder trading. Differences between Quasimodo and Head and Shoulder There are two major differences between the Quasimodo pattern trading and Head and Shoulder trading: The valleys have different price structures – aka the depth of the valleys have no symmetry with the Quasimodo pattern. And, the two reversal patterns use two different entry techniques. The main difference between the Quasimodo pattern and the Head and Shoulder pattern is the left leg (second valley) of Quasimodo is much lower than the right leg (first valley). With the Head and Shoulder pattern, both valleys are more or less of the same scale. The Quasimodo price structure doesn’t stand out compared to the HS pattern. That’s where the Quasimodo name is derived from – aka the “malformed” second valley, which depicts a crooked Head and Shoulder pattern. In this regard, it’s not going to be that easy to identify with your naked eye the Quasimodo forex chart pattern. Instead, you'll need to use advanced trading indicators. The second major difference between the two reversal patterns is the point of entry. Usually, the point of entry for the HS pattern is the break of the neckline, but with the Quasimodo pattern, we put an entry order near the left shoulder. Basically, Quasimodo is an advanced pattern of Head and Shoulder. A key question that is asked by many traders is how we determine when to trade the Quasimodo chart setup? When to Trade Quasimodo Trading Setup? The best time to trade the Quasimodo pattern is after a significant rally or sell-off no matter the time frame used. All chart patterns are fractal in nature meaning they generally appear in various forms in different time frames from the daily chart down to the 1-minute chart. This is great news for traders who trade across multiple time frames. The existence of the prevailing trend gives us the opportunity to either catch an entirely new trend or at least we get the chance to profit from a temporary retracement. Additionally, the Quasimodo chart pattern allows for better entry points, which is in contrast with trend trading where the entry signals are delayed. But, as you might know, each trading style has its pros and cons. Now, let’s see how Quasimodo pattern trading works. How Quasimodo Pattern Trading Works? The Quasimodo pattern works based on the imbalance between the supply and demand forces. Or, in other words, the Quasimodo chart pattern tracks the shift in the price structure. Market structure is the continuous series of higher highs and higher low producing higher peaks and troughs. When we have a break of structure, meaning a break of the ongoing HH and HL, the price starts first to print a lower low. The Quasimodo trading strategy provides us with a proper framework to interpret the constant ebbs and flows of any asset (currency, cryptocurrency, stocks, commodity, etc.). The bearish Quasimodo pattern is in short concerned with how the market comes from a buying momentum and heads towards the selling momentum. The Quasimodo chart pattern starts to become visible only once the price fails to make another higher low (HL). For some novice traders, this type of information might be enlightening because now you can have a proper framework to analyze the price structure. You have to keep in mind that this is one approach to view the markets and by no means the only one. Now that things are starting to get clearer, we’re good to define the Quasimodo pattern trading rules. Quasimodo Pattern Trading Rules The Quasimodo trading rules for sell signals can be summarized as follow: A prevailing uptrend needs to be visible – series of HH followed by a series of HL. Break in the market structure – price start to make lower lows LL. Place a sell order near the right shoulder. Hide the protective stop-loss above the last higher high HH. Take profit near the first valley of the Quasimodo chart pattern. As a general rule, the Quasimodo pattern carries more weight if the second valley is much lower than the first valley. In other words, the bigger the distance between the two valleys, the more crooked the Quasimodo pattern becomes. Next… Let’s have a look at the bullish Quasimodo reversal pattern. The Quasimodo trading rules for buy signals can be summarized as follow: A prevailing downtrend needs to be visible – series of LL followed by a series of LH. Break in the market structure – price start to make higher high HH. Place a buy order near the right shoulder. Hide the protective stop-loss strategy below the last lower low LL. Take profit near the first peak of the Quasimodo chart pattern. Now let me share with you a simple but effective trading trick. If you want to test how crooked the Quasimodo chart pattern is, simply draw some lines along with the price structure. When you do this, the Quasimodo price structure will pop up on your price chart. When you highlight the price structure we can clearly see the crookedness of Quasimodo. Thus, in this particular trade, the market didn’t give us the chance to enter a buy order. And that’s the thing with the Quasimodo pattern trading, meaning lots of missed opportunities. To go around this pitfall that is common with all chart patterns, we’re going to add some confluence to the Quasimodo pattern and twist the rules. Below, we’re going to outline an advanced Quasimodo trading strategy: Quasimodo Trading Strategy You don’t have to add complicated stuff to make a simple chart pattern give more accurate trade signals. The only extra tool we need to optimize the Quasimodo trading strategy is the Fibonacci retracement indicator. Now, if you’re a fan of the Fibonacci retracement tool, you might want to check this new Fibonacci Trend Line Trading Strategy. The Fibonacci retracement indicator can help us anticipate where the last price swing that is part of the Quasimodo chart pattern might end. If you backtest this pattern, you’ll see a lot of missed trading opportunities because the last swing wave of the Quasimodo pattern doesn’t always stretch near the left shoulder. If you need to learn the best backtest strategy check out our blog! The Fibonacci retracement levels can help us identify reliable price zones of support and resistance. We’re particularly interested in the price zone between the 50% Fibonacci retracement and 61.8%, with the sweet spot being the 61.8% Fibonacci retracement level. By applying the new rules of the Quasimodo trading strategy, we’re able to capture a full-blown reversal. Another key point to take into consideration when you trade the Quasimodo pattern is the quality of the swing highs and lows. We need to find a mechanical approach to quantify the quality of the swing highs and swing low points. As a general rule, we consider a qualified swing high (swing low) only those points that have a V-shaped pattern. These price formations are also known as V tops and V bottoms. A V-shaped swing low can be easily recognized by the price sharply switching from bearish to bullish respectively from bullish to bearish. If we examine the Quasimodo chart pattern, we can notice that every single swing high and swing low part of the Quasimodo pattern is V-shaped.
Short
by Tradingstrategyguides
11
7 Dimension Buy Trade For USDJPY Core Analysis Method: Smart Money Concepts 😇7 Dimension Analysis Time Frame: 15M 1: Swing Structure: Bullish with BOS after taking the inducement. Bullish impulsive swing move starts making a pullback in the internal structure POI liquidity zone. External POI OB FVG already taken from the discounted area. 🟢 Entry Model: Whale scoop Support liquidity demand area might act as a reversal zone. 2: Pattern 🟢 CHART PATTERNS: No chart pattern is formed. Shakeout continuation. 🟢 CANDLE PATTERNS: No significant candle pattern here. 3: Volume: Volume is almost dry during the whole corrective move, but we observed huge volume when the price takes liquidity or forms a false breakout. 4: Momentum RSI 🟢 RSI is still in the bullish zone, taking support on the extreme bullish support 40 level. No range shift yet and not any bullish support divergence. A bearish loud move makes some doubt, but it will confirm when the price gives a proper breakout on any side in this momentum range. 5: Volatility Bollinger Bands 🟢 A strong contraction is forming. This contraction breakout will confirm the proper move. 6: Strength: USD is still weaker. 7: Sentiment: Buy for the short term. ✔️ Entry Time Frame: 15M ✅ Entry TF Structure: Bullish ✔ Entry time liquidity take waiting 💡 Decision: Buy 🚀 Entry: 157.170 ✋ Stop Loss: 156.890 🎯 Take Profit: 158.275 😊 Risk to Reward Ratio: 4RR 🕛 Expected Duration: 1 Day Short SUMMARY: Analysis supports a strong buy position based on the Smart Money Concepts methodology, with expected bullish momentum and high potential reward.
Long
by Optimum369
7 Dimension Sell Setup for Gold Technical Analysis Method SMC ** 7 Dimension Analysis** Time Frame: H1 / 5M (Minute) 1: Swing Structure: Bearish 🟢 Structure Behavior: Choch, now at this extreme POI (Point of Interest) 🟢 🟢 Swing Move: Corrective (about to end) ↪️ 🟢 Lower Time Frame (M1): Inducement is done. It's better to wait for M1 structure shift. ⛔ 🟢 Internal Structure: Bullish yet ⬆️ 🟢 Supply Area: Based on M5 timeframe 🟦 2: Pattern 🟢 CHART PATTERNS: No reversal chart pattern detected yet. ⬜ 🟢 CANDLE PATTERNS: Record Session count 3: Volume 🟢 After a good rally, volume is drying up now. ** 🟢 Volume during correction is less than impulsive volume. ** 4: Momentum RSI Current: Bullish to sideways with proper bearish divergence and range shift. ** 5: Volatility Bollinger Bands 🟢 Middle band is interim support yet. 🟦 🟢 Price is currently in a contraction phase, making a Bollinger Band "W" pattern with the complete leg about to end. ➡️ 🟢 High with a pin bar price also indicates a Band Puncher. ** 6: Strength (ROC - Not Included) 7: Sentiment: Bearish for M5 SMC (Smart Money Concept) timeframe ✔️ Entry Time Frame: M5 ✅ Entry TF Structure: Bearish ☑️ Current Move: Correction at extreme POI ☑️ ☑️ Resistance Area: Gives multiple rejections ❌ ☑️ Candle Behavior: Not clear ⬜ ☑️ Trend Line Breakout: Waiting ⏳ ** Decision:** Sell if price gives a breakout of the trend line ⬇️ ** Entry:** 2381 ✋ Stop Loss: 2387 Take Profit:** 2355 Risk-to-Reward Ratio:** 3.5 Expected Duration:** One day SUMMARY: Based on the multi-timeframe analysis, a potential short selling opportunity exists with a bearish bias. The current corrective move might be nearing its end at the extreme POI. However, waiting for confirmation from a bearish breakout on the M5 timeframe and a clear bearish candle pattern is recommended before entering a trade. Remember, this analysis should not be considered financial advice.
OANDA:XAUUSDShort
by Optimum369
7 Dimension Analysis For GBPNZD Yearly: The market is entrenched in a multi-year downtrend. Despite yearly structure breakouts, rejections from the CIP level have been consistent, indicating strong resistance. The failure to breach upper yearly resistance suggests substantial selling pressure. A post-breakout bearish buildup implies a high likelihood of further downside in the coming years. Monthly: A shift from a bullish to a bearish character is evident. Strong resistance rejections, particularly marked by a classic doji in August 2023 within a blue-box-highlighted area, indicate significant downward potential. The momentum flow in August 2023 adds conviction to the bearish scenario. Weekly: While the weekly chart shows some sideways movement, the current positioning lacks clarity. Further examination is required for a comprehensive view of the market dynamics. 😇7 Dimension Analysis Time Frame: Daily Swing Structure: Bearish Structure Behavior: Choch 50% Swing Move: Impulsive Inducement: Done; high is confirmed Pull Back: 1 Internal Structure: Bearish Ext OB: Unmitigated Resistance: Found at the FVG area, with demand formed and three proper IFC rejections. Time Frame Confluence: Daily Pattern Chart Patterns: A rounding triple top within a green rectangle indicates a bearish breakout, signaling the end of the corrective move. Candle Patterns: Inside, with a Harami on Friday close. Volume Fixed range volume indicates a strong seller presence. Significant bearish volume is observed at the green rectangle. During the cycle, only one bearish candle had a significant impact on price. Momentum RSI Zone: Sideways Range shift: Not clear but oscillating between sideways to bearish. Divergence: A hidden bullish divergence suggests the potential for short-term bullish momentum. Overbought sold rejections count: 1, with a bullish divergence. Volatility Bollinger Bands The middle band is below, indicating a bearish trend. Expansion suggests a short-term sideways zone. Just finished a walking on the band. Strength According to ROC Values: -0.37 GBP vs. 3.5 NZD, indicating NZD's strength. Sentiment High selling sentiment according to all the studies. ✔️Entry Time Frame: H1 ✅Entry TF Structure: Bearish ☑️Current Move: Impulsive is starting. ✔Support Resistance Base: Extreme supply area. ☑️Candles Behavior: Rally-based drop, Momentum. ☑️Trend Line Marked: Waiting for breakout. 💡Decision: Ready for sell 🚀Entry: 2.046 ✋Stop Loss: 2.0602 🎯Take Profit: 1.9750 2nd If Internal Structure change also Exit 3rd trendline breakout, Fomo 😊Risk to Reward Ratio: 1:5 🕛Expected Duration: 15 days SUMMARY: The analysis reveals a strongly bearish sentiment in the market. The yearly and monthly perspectives provide a broader context, while the daily analysis points to an imminent impulsive move. The entry strategy aligns with the overall bearish outlook, with a clear risk-to-reward ratio and an expected duration of 15 days.
Short
by Optimum369
2
GOLD👑 (XAUUSD) KEY LEVEL TO WATCH 👀AND WHYMany skills are required for trading successfully in the financial markets. They include the abilities to evaluate a company's fundamentals and to determine the direction of a market trend. But neither of these technical skills is as important as the trader's mindset. The recognition of patterns and its body of knowledge of how to react and what to expect helps a trader's success. Traders are always analysing Trends and Reversals. Their eternal question for traders is Can the trend continues?. Knowing trends and trend reversals are critical for any trader’s success. Chart patterns classification of 'Continuous' or 'Reversal' patterns helps traders to identify specific patterns and expect their outcome from current price action. Traders move prices between key support and resistance areas (a tug of war) as their perception shifts between optimism and pessimism. This movement of price adhering to key support and resistance areas create chart patterns. Reversal patterns exhibit a total shift of trends from bullish to bearish or bearish to bullish in a single pattern structure. Examples of the reversal patterns are 'Head and Shoulders, Double Tops and Bottoms. A knowledge of reversal patterns helps traders to estimate the 'end of trends' to execute trades in a timely fashion for maximum gains. This knowledge also helps traders to time the trades in the opposite direction and to place smaller stop levels. Here I discuss one of the key reversal patterns Chart Pattern and present examples of them. GOLD has been trading an ABC Bullish Pattern from 1804.76, little I know about ABCS: One of the best ways to confirm symmetry in the markets is to check price and time using two or more cluster confirmations. Another key method to compute these patterns is to use percentage change of price between market highs and market lows. Symmetry is a science by itself, and traders take great advantage of knowing the potential turning points and levels using these methods. Symmetry is visible in all markets and in all time-frames. Symmetric rallies and declines give traders an advantage to determine the key turning points. A cluster of similar extensions and similar retracements at key price ranges, or some important levels provide insights into future significant resistance and support levels. In addition to knowing key turning points, the benefits of trading symmetric price and time cluster levels include low-risk trades. The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. These "Harmonic" patterns help traders to identify buying and selling opportunities in all markets and in all time-frames. The ABC and AB=CD patterns are first described by H.M. Gartley in his book 'Profits in the Stock Market." (1935). The main advantages of trading harmonic patterns are that they allow traders to determine risk vs. reward ratios beforehand as they forecast key market turning points and profit targets for traders. The ABC pattern (can be a continuous or reversal pattern) The key point in identifying an ABC and AB=CD patterns is to correctly detect the A, B, and C key inflection (Pivot) points in a chart while they are forming. These inflection points are determined from key swing highs and lows of various levels, and for its correction waves to determine distinct "swings." The potential C point is usually forecasted by the fib. retracements (0.38 to 0.618) of AB Swing. Once A, B, and C points (and AB, BC legs) are identified, a projection algorithm is applied to compute the Potential Completion Zone (PCZ). This PCZ area is where ABC pattern is expected to complete and may signal continuation of its trend in the first trend direction (AB). Following the completion of BC leg, the projections of AB and BC legs (using fib. ratios) The swing legs (AB and BC) in ABC pattern are generally in symmetrical proportions both in price and time with consistent slopes. The tractable CD leg has a harmonic relation with symmetry for AB and BC swings. The ABC bullish structures are formed after a prolonged prior down trend or consolidation trends. A Pattern Completion Zone (PCZ) is computed using AB swing and Fibonacci ratios (50-88.6% of AB). This PCZ area is where 'C' pivot is formed at the end of BC swing and to signal completion of ABC pattern. Trade Entry: After ABC pattern is completed, it is advisable to wait for the pattern to confirm a reversal signal using any momentum-based indicator or price confirmation mechanisms. I use various confirmation and trade entry methods, but one of the methods is price crossing 2-bar high after 'C' in ABC Bullish pattern or a 2-bar low after 'C' in ABC bearish pattern. Stop: A Stop is placed few ticks below C (in Bullish) or few ticks above C (in Bearish) levels. Targets: The ABC Pattern targets are computed using the AB and BC swings. The height pattern (AB) is used to project target levels from (-level using fib. ratios. The first target zone is (62-79% AB) from 'C' and second target zone is (127-162% AB). A secondary target level is set at 100% AB Level . In resume price has reached the 100% AB: 2040.55. Now what could we expect from price? As mentioned above The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. Gold on the daily chart the price resembles an AB=CD and the price is trading below the entry level 2012.36. Stops: 2068.32 Targets: 38% AD: 1928.00 50% AD: 1890.61 62% AD: 1853.38 79% AD: 1800.41 Let me explain more about AB=CD patterns below
FOREXCOM:XAUUSDShort
by TradeChartPatternsLikeThePros
13
QQQ long - continuation diamondQQQ long - continuation diamond The continuation diamond is a stock chart pattern that typically occurs within an existing uptrend or downtrend. It is a consolidation pattern, indicating a temporary pause in the prevailing trend before it continues in the same direction. The pattern resembles a diamond shape on the price chart, hence its name. Here are the characteristics of a continuation diamond pattern: Existing Trend: The continuation diamond pattern forms within the context of an existing trend, whether it is an uptrend or a downtrend. It signifies a temporary consolidation or indecision before the trend resumes. Contraction: Initially, the price experiences a contraction or narrowing range. This contraction is depicted by converging trendlines, with lower highs and higher lows. Traders can draw trendlines connecting the swing highs and swing lows to identify the diamond shape. Volume: During the formation of the continuation diamond pattern, trading volume tends to decrease. This decrease in volume indicates reduced participation and indecision among market participants. Breakout Direction: The continuation diamond pattern suggests the potential continuation of the existing trend. Once the contraction phase ends, and the price breaks out of the pattern, it is expected to continue moving in the direction of the preceding trend. Breakout Confirmation: Confirmation of the pattern occurs when the price breaks out of the diamond shape with increased volume. Traders often look for a decisive breakout above the upper trendline in an uptrend or below the lower trendline in a downtrend. Price Target: The price target of the continuation diamond pattern can be estimated by measuring the height of the diamond pattern at its widest point and projecting it in the direction of the breakout. It is important to note that not all diamond-shaped patterns on a stock chart are continuation diamonds. Other types of diamond patterns, such as diamond tops and diamond bottoms, have different implications and are reversal patterns rather than continuation patterns. As with any chart pattern, it is crucial to combine the continuation diamond pattern with other technical analysis tools and indicators to increase the accuracy of predictions and make informed trading decisions. Additionally, it's recommended to practice proper risk management and consider other market factors before executing trades based solely on chart patterns.
NASDAQ:QQQLong
by FL0wTrade
2
us 100How Forex Chart Patterns Work Chart patterns form due to the interaction between the buyers and sellers, which generally leads to the various chart patterns that you can see on your chart every single day. Generally speaking, all chart patterns are looking at the interaction of supply and demand. In other words, this constant battle between buyers and sellers so to speak gives birth to the many chart patterns you’re probably trading right now. Let’s move on… And see how to identify chart patterns See below: How to Read Chart Patterns Forex chart patterns are a lot like those unrealistically perfect Instagram models. The Instagram images look great but when you start to see the true reality, you’re not that excited anymore. It’s easy to only see those typical cases where chart patterns worked, but it’s really hard to see when they didn’t work. We’re conditioned to avoid pain so; it’s easy to ignore the instances when a chart pattern didn’t work. So, in order to be able to trade chart patterns like the pros, you need to have a systematic approach to reading chart patterns. Otherwise, you’ll continue chasing the fake Instagram models. But, when reality hits you, it will hit you where it hurts the most aka your wallet. Now… Let’s see how to recognize chart patterns like the pros. There are really 3 major things that can be applied to any chart pattern: The first step is to assess the size and quality of the chart pattern relative to surrounding price action The second step is the location of the chart pattern. Where is the chart pattern located within the trend? Key swing high and swing low, Support and resistance levels, pivot points, etc. The last step is to assess the potential profit margin. If it doesn’t offer a minimum risk:reward ratio of 1:1, it’s not a good
CAPITALCOM:US100Long
by miladekramii
1
dxy How Forex Chart Patterns Work Chart patterns form due to the interaction between the buyers and sellers, which generally leads to the various chart patterns that you can see on your chart every single day. Generally speaking, all chart patterns are looking at the interaction of supply and demand. In other words, this constant battle between buyers and sellers so to speak gives birth to the many chart patterns you’re probably trading right now. Let’s move on… And see how to identify chart patterns See below: How to Read Chart Patterns Forex chart patterns are a lot like those unrealistically perfect Instagram models. The Instagram images look great but when you start to see the true reality, you’re not that excited anymore. It’s easy to only see those typical cases where chart patterns worked, but it’s really hard to see when they didn’t work. We’re conditioned to avoid pain so; it’s easy to ignore the instances when a chart pattern didn’t work. So, in order to be able to trade chart patterns like the pros, you need to have a systematic approach to reading chart patterns. Otherwise, you’ll continue chasing the fake Instagram models. But, when reality hits you, it will hit you where it hurts the most aka your wallet. Now… Let’s see how to recognize chart patterns like the pros. There are really 3 major things that can be applied to any chart pattern: The first step is to assess the size and quality of the chart pattern relative to surrounding price action The second step is the location of the chart pattern. Where is the chart pattern located within the trend? Key swing high and swing low, Support and resistance levels, pivot points, etc. The last step is to assess the potential profit margin. If it doesn’t offer a minimum risk:reward ratio of 1:1, it’s not a good
CAPITALCOM:DXYLong
by miladekramii
RVN Head and Shoulder formationInformation obtained from Investopedia: What Is A Head And Shoulders Pattern? A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. The head and shoulders pattern forms when a stock's price: Rises to a peak and subsequently declines back to the base of the prior up-move. Then, the price rises above the former peak to form the "nose" and then again declines back to the original base. Then finally, the stock price rises again, but to the level of the first, initial peak of the formation before declining back down to the base or neckline of chart patterns one more time. Key Takeaways A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. A head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. The head and shoulders chart pattern is popular and easy to spot pattern once a traders are aware of what they are watching for. The pattern appears on all times frames and can therefore be used by day and swing traders as well as investors. Entry levels, stop levels and price targets make the formation easy to implement, as the chart pattern provides important and easy-to-see levels. Formation of the pattern: Left shoulder: Price rise followed by a left price peak, followed by a decline. Head: Price rise again forming a higher peak. Right shoulder: A decline occurs once again, followed by a rise forming the right peak which is lower than the head. What Does A Head And Shoulders Pattern Tell You? A head and shoulders pattern is comprised of three component parts: After long bullish trends, the price rises to a peak and subsequently declines to form a trough. The price rises again to form a second high substantially above the initial peak and declines again. The price rises a third time, but only to the level of the first peak, before declining once more. The first and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called the neckline. Head and shoulders patterns can also signal that a downward trend is about to reverse into an upward trend. In this case, the stocks price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). The final rally after the third dip signals that the bearish trend has reversed and prices are likely to keep moving up.
by Gyp322
Smells like a fakeout…Looks like a fakeout…Is that the fakeout?Here on the XRPUSD 1day chart we have a pattern of a massive head and shoulders on xrp formed conveniently during a downward trend with a breakdown target of negative 20 cents. The Stoch RSI also bottomed out and is ready to travel upward again so there's not enough bearish momentum available to warrant such a breakdown. The downtrend makes it very unlikely a good head and shoulders because the h&s chart patterns that get validated are usually ones that act as reversal patterns at the top of trends not continuation patterns.Sure there are rare exceptions of when a continuation h&s happens but in reality those are just failed patterns that didnt trigger in my eyes. Still with it looking so obviously like a fakeout it makes one wonder if the whales are trying to fake us out with a fake fakeout...thats the only way I see something like this triggering. On the bitfinex chart this pattern is invalid but It appears to be valid for now on bitstamp,coinbase,and kraken. Its for this fake fakeout fakeout reason that I leave this idea neutral....but with a breakdown target of negative 20 cents, it seems like a ridiculous notion to believe it ever could be anything other than a fakeout.
BITSTAMP:XRPUSD
by DrDovetail
1
EURUSD 7 Dimension Sell Trade Idea Top-Down View (H4 Analysis): The H4 timeframe shows that the price has recently formed a Change of Character (CHoCH) and appears to be making a retracement. Despite this pullback, it hasn’t mitigated the higher-timeframe Points of Interest (POI), particularly the unmitigated Daily Fair Value Gap (FVG). Observing H1, we see considerable volatility and uncertainty, possibly indicating attempts to shake out weak-handed traders before a deeper corrective move toward the H1 internal extreme POI for mitigation. 😇 7 Dimension Analysis 🟢Time Frame: H4 🟢Swing Structure: Bullish with CHoCH: The swing structure is bullish on the H4, with a recent CHoCH indicating a potential shift. An inducement has been observed, and price has just entered the discounted zone, which aligns with the 61% Fibonacci retracement level. POI and Liquidity Levels: The area of interest includes the 61% & 88% Fibonacci level, liquidity sweeps, and support at the demand zone. Waiting for price to reach this zone and observing its reaction will be critical. Pattern: 🟢 Chart Patterns: Double Bottom: Forming as a potential reversal pattern at the discounted zone. 🟢 Candle Patterns: Long Wick & Momentum Candles: Recent candles show long wicks and momentum on the downside, indicating that bears are still in control of the current session, albeit with limited momentum strength for long-term sustainability. Volume: Moderate volume suggests that while sellers are currently dominant, the bearish momentum may not hold for an extended period, reinforcing the expectation of a retracement. Momentum (RSI): 🟢 Range Shift: Momentum has shifted from bearish to sideways with multiple bullish divergences, suggesting a loss of bearish strength and a potential for reversal or retracement. Volatility (Bollinger Bands): 🟢 Middle Band Breach: The price has dropped below the middle band, indicating a slight bearish bias. Expansion Cool-Down: Following a period of expansion, price appears to be consolidating and "cooling down" before the next directional move. 🟢Strength (ROC and Consolidation): Consolidation Phase: ROC reflects consolidation, supporting the idea that the bearish momentum may pause or weaken, aligning with the expectation of a retracement or sideways movement. 🟢Rating: ⭐⭐⭐ Probability: 65% This setup has a moderate confidence level for a short-term sell entry, considering the confluence of factors on both the H4 and refined lower time frames. 🟢Trade Setup: Entry Details: Entry Time Frame: 15-Minute (15M) Entry TF Structure: Bearish (for counter-trend entry in a corrective move) Point of Interest (POI): Extreme Fair Value Gap (FVG) Trade Execution: 💡 Decision: Sell Limit 🚀 Entry: 1.8747 ✋ Stop Loss: 1.0888 🎯 Take Profit: 1.07927 😊 Risk to Reward Ratio: 6.94 RR 🕛 Expected Duration: 1 Day SUMMARY: This H4-based top-down analysis with entry refinement on the 15M timeframe provides a short-term sell opportunity within a bullish higher timeframe structure. Price action, volume, and momentum indicators suggest a potential bearish pullback toward the 15M POI, aligning with the 61% Fibonacci level and significant liquidity areas. The setup targets a short-term retracement with a high reward-to-risk ratio, with the expectation that price may retrace to mitigate lower timeframe liquidity levels before resuming the bullish trend.
Short
by Optimum369
7 Dimension Comprehensive Analysis FOR NVDAThis analysis focuses on a potential trade setup using the 7-Dimension Analysis approach on the Daily (D1) timeframe, with an additional H1 timeframe consideration for a counter-trade. Below is the detailed breakdown: 😇 7 Dimension Analysis Time Frame: Daily (D1) Swing Structure: The overall structure is bullish, with the market having taken inducement and currently moving toward completing its corrective swing move. The corrective move is nearing its extreme levels, with one pullback already completed and a proper bearish internal structure observed. An Extreme Order Block (OB) is marked as the Point of Interest (POI) right at the discounted zone of the swing, around the 80% Fibonacci level. This area also aligns with a prior demand zone where the last impulsive move started, making it a strong area of interest for a potential buy entry. Pattern: 🟢 Chart Patterns: A reversal pattern in the form of a Rounding Pattern is forming, with a higher low (HL) internal leg that could lead this swing further down before it potentially reverses. 🟢 Candle Patterns: After a Tower Top, the candlesticks have broken out to the downside in a narrow range, accompanied by gaps and momentum. The breakout was followed up by an engulfing candle, with a Dark Cloud Cover pattern in play, signaling strong bearish control in the market at this point. Volume: 🟢 Despite the corrective move, there hasn't been a drastic decrease in volume, suggesting that this move is still part of a corrective phase. This implies that a significant buying opportunity may present itself at the POI. Momentum RSI: 🟢 The momentum has shifted into a sideways zone after a long rally, with a range shift having occurred. However, according to Andrew Cardwell’s RSI analysis (Grandfather-Father-Son module), the overall market sentiment remains extremely bullish, indicating that this down move could just be a correction, and buying at the POI would be advisable. Volatility Bollinger Bands: 🟢 After an expansion phase, the market may take some time to cool down, so it's not surprising if the price enters a sideways or corrective range for some time at these levels. Strength ADX: The ADX also suggests that this is merely a corrective move, with a strong potential for continuation of the previous bullish trend after the correction. Rating: ⭐⭐⭐⭐ (4 Stars) Probability: 80% This setup has a high probability, with strong indications that the corrective move will provide a buying opportunity at the identified POI. Planned Entries: Counter Trade Entry (Sell): ✔️ Entry Time Frame: H1 ✅ Entry TF Structure: Bearish ☑️ POI: Counter Trade Gap Down 💡 Decision: Sell Limit 🚀 Entry: 114.41 ✋ Stop Loss: 120.1 🎯 Take Profit: 86.5 😊 Risk to Reward Ratio: 5RR 🕛 Expected Duration: 20 days Main Trade Entry (Buy): ✔️ Entry Time Frame: Daily (D1) ✅ Entry TF Structure: Bullish ☑️ POI: Extreme POI 💡 Decision: Buy Limit 🚀 Entry: 87 ✋ Stop Loss: 74 🎯 Take Profit: 180 😊 Risk to Reward Ratio: 7RR 🕛 Expected Duration: 60 to 180 Days SUMMARY: The analysis suggests a dual approach—first, a short-term counter-trade sell position based on the H1 structure with a favorable risk-to-reward ratio, followed by a long-term buy position in line with the bullish daily structure. The corrective phase in the daily timeframe is expected to present a strong buying opportunity at the identified POI, with a highly probable chance of significant upside thereafter. The two trade setups provide different time horizons and risk profiles, catering to both short-term traders and longer-term investors.
NASDAQ:NVDALong
by Optimum369