On the chart itself, I showed potential movements depending on the retention / breakout of local levels.
1 work option.
The price has almost reached point D, which could become a potential in this local movement.
is nothing more than part of the movement in the channel. Channel width 100%. Therefore, in case of confirmation of point D and a price reversal, the potential first profit is + 100%. If this happens, then the ABCD pattern is reorganized into a harmonious pattern of "Three movements." I have shown the areas of potential reversal and observation on this chart.
2 option work.
A variant of work if the is not confirmed and point D does not become a price reversal zone. The formation of a triple bottom. Pivoting shape.
The downward stopping zone I showed on the chart. I doubt that it will be pierced, how this will ruin the canvas for the work of the "artist" in the future.
To an important zone of resistance and confirmation of this figure + 100%
Full working out of the figure triple bottom + 300%.
Option 3 (unlikely)
If the price breaks through the (green area) and is fixed in a downward movement below it. Then you should forget about trading this cryptocurrency and "turn gray on the fence" until a good entry point appears. But even in such a situation, when they will do a "trick", you can partially take the movement + 40%.
Note that in any movement options with the correct entry points (reversal zones), the risk is minimal, the profit is maximum, both locally in movements, and is possible when the trend develops and in the global one.
The previous trading idea for this coin in this pair, which gave + 40%.
Actually now, as in the global price forms a symmetrical triangle, this downward movement is nothing more than a pullback after breaking the triangle up.
The result after a while + 40%.
The same coin is only a trade for bitcoin .
BAT / BTC 2019. History repeats itself. Potential + 180%
And the result is + 40% and now rollback.
Notice, everything goes according to the plan.
LEARNING MATERIAL on the theme of harmonious patterns and "Three movements".
This is the simplest version of a harmonious pattern. Nevertheless, the figure is an important brick on the way to understanding the principles of constructing figures and, moreover, is part of most of them.
is a reversal pattern foreshadowing a change in market trends. That is, the figure helps to predict when the price ends the growth and prepares to fall, or vice versa, completes the fall and prepares for growth. A key feature of the pattern is the symmetry of the AB and CD knees.
The figure begins with a rise or fall in price on the segment AB. The BC segment is usually a sharp correction, the size of which should fit in 38.2% - 88.6% of AB. Ideally, the size of the correction should be from 61.8% to 78.6%.
At point C, the price reverses and continues to move parallel to segment AB. In this case, point D should be in the range of 113% - 261.8% of the knee BC .
The main rule is to observe the symmetry of the pattern. Ideally, the length of the elbow CD should be fully consistent with the length AB. That is, it means matching both in time and in price.
Rules for trading a pattern:
1) The length AB should correspond to the length of the CD.
2) The time it took for the price to go from point A to B should be similar to the time from C to D.
This harmonious has two varieties:
pattern gives a sell signal.
gives a buy signal.
TNT / USD 1 day. Harmonious .
ETH / USD 1 day. Harmonious pattern.
In real trading on the market, there are a variety of variations of this pattern. But, it’s a good rule to observe the corresponding sizes of AB and CD corrections, since it is much more difficult to trade an asymmetric pattern. Asymmetric, incomprehensible patterns are better to skip.
If I trade such formations, then without a Fibonacci grid, I do not need it. I already see what she has to show. In most cases, this is a working analysis tool and at the beginning of your analysis you should use a Fibonacci grid.
In trading these formations, I use strong levels, the symmetry of this formation and healthy logic in the calculations. Tradingview has a template for this harmonious and the "three movements" pattern. This simplifies the work and makes it possible to quickly search for this formation on the chart.
2) Model of the pattern "Three movements".
The Three Movement model is a fairly well-known pattern. Its analogues can be found in wave analysis (diagonal triangle) and the book of Linda Raschke (three Indians). It is very reminiscent of , as if a continuation of this formation. This is a price movement in an upward or . In the framework of harmonious trading, we consider this model taking into account the Fibonacci ratios.
In the classic version of the "Three Movements" pattern, it is provided that movements 2 and 3 complete on projections 1.27 or 1.618. Correction of movements 1 and 2 - at the levels of 0.618 or 0.786. In the real market, models with ideal proportions are quite rare. Therefore, if you want to really earn money, get used to the fact that book "idealized" patterns in the real market are very rare. You need to be able to trade what is, and not what you want.
This model has a greater predictive property if it is in the expected end of the trend. Typically, the formation of the “Three Movements” is a signal that the market already does not have enough strength to continue the trend and perhaps the beginning of at least a correction.
This harmonious Three Movement pattern has two varieties:
LTC / USD 1 day. Harmonious "Three movements" ( ).
In the example, we see that the upward trend price has broken, which triggered a trend reversal.
ETH / USD 1 day. Harmonious "Three movements" ( ).
As we see, the next correction wave reached the resistance line of the . The target is taken.
Learn to “predict” a more likely future. Always have different options for your work in a given situation. Work according to the basic plan, based on the situation that is being implemented.
In order to trade in a market in which the deposits of most traders are destroyed, you must have vast experience, and be a whole head taller for the rest.
The downward movement continued, but the support was not confirmed, but made its way. Therefore, there was no entry point.