'Verse' of 'Reverse' Candlestick Pattern-> Definition of Reversal patterns :-
Reversal patterns mean the formation of candlesticks which indicate the end of the existing trend (uptrend or downtrend). When such formation appears in a downtrend, it indicates a bullish reversal or end of selling spree and onset of buying spell. Conversely, when a trend reversal pattern forms in an uptrend, it warns traders of a possible end to bullish run and onset of a slump.
Candlestick patterns are visual patterns, helping traders to visualize when market sentiment is shifting, which is why many traders prefer candlestick charts over other trading tools. However, any trend reversal indication must conform with other popular technical trading tools.
-> Engulfing Patterns :-
An engulfing pattern is a two-candle formation that signals trend reversal, and hence, there are bullish engulfing and bearish engulfing.
The bearish engulfing happens in the uptrend. The first candle is a white/green candle that forms in the uptrend. The second candle opens higher than the previous session and then closes below the previous. It indicates that the bullish force made a final thrust before bearish forces took over.
The opposite of bearish engulfing is bullish engulfing, and it appears at the bottom of a downtrend.
->Doji :-
Doji is a unique formation – a candle with no real-body but with shadows. Doji can take many forms like Doji Star, Dragonfly Doji, Gravestone Doji, Long-legged Doji, and more.
It is often associated with market indecision before a trend reversal. Apart from Doji star, Dragonfly Doji and Gravestone Doji also indicate a trend reversal; but to base your trading decisions on them, those must concur with other popular trading tools like moving average, RSI, or moving oscillator.
Doji formations often have no real-body, means that the opening and closing price is almost the same, or the market has reached an equilibrium where neither the buying not the selling strengths are strong enough to give it a direction.
-> Abandoned Baby :-
Apparently, an abandoned baby is a more decisive trend reversal pattern than Doji. It is a rare formation, but when it appears, it is a strong enough indication for traders to alter their position accordingly.
Since it is a trend reversal pattern, an abandoned baby can appear in both uptrend or downtrend. An abandoned baby is a Doji star that appears between two candles – the first one appearing in the direction of the trend and the second confirmation candle appearing in the reversed trend, either bullish or bearish. The shadow of the first candle mustn’t overlap the second candle. The star appears above or below the trend, looking abandoned, hence the moniker.
-> Hammer Pattern :-
Hammer is a single candle pattern that appears in a downtrend implying a trend reversal to bullish. It usually has a small real-body and a long downward shadow. It indicates that the market fished for the bottom but eventually buying forces were strong to push the market up – the result is a bullish or green candle comprising a short real-body. The candle appearing next to the hammer must confirm the trend reversal to form a trading strategy. It must close above the last candle formed before the hammer.
The opposite formation of a hammer, an inverted hammer which appears in an uptrend, is also a trend reversal pattern. In this case, the color of the hammer doesn’t matter, but the upper shadow is twice the size of its real body. An inverted hammer requires stronger confirmation candles to ascertain trend reversal.
Another similar formation that appears in the candlestick chart is called a hanging man. It is a hammer that appears in uptrend. When the hanging man appears after a rally, it indicates a trend reversal. It needs further confirmation from the following candles appearing in the trendline. If those appearing in a downtrend, the hanging man confirms a downward trend reversal.
-> Piercing Line :-
A piercing line is a two-candle formation – a bearish long-bodied candle and another bullish candle which opens at a gap and closes at the midway of the bearish candle. Both candles have robust long bodies. It shows that the market started in bearish impulse, but eventually, buyers gained momentum to pull the market up and reserve their position.
-> Harami Pattern :-
Harami patterns are common and can be both bullish harami and bearish harami. In Japanese, the word translates to pregnant. It is a two-candle formation where the second candle is a small-bodied candle that opens and closes within the body of the first candle, representing a pregnant form. In the case of Harami Cross, the second candle is a Doji star.
A Harami is a reversal pattern, but it isn’t as strong as the hammer and needs confirmation from other technical trading tools like RSI, MACD, and the like.
My OBSERVATION :- These reversal patterns works very well when used with RSI, In case of indices, when RSI is above 65 or below 35 any such pattern visible indicates reversal and In case of stocks, when RSI is above 70 or below 40 any such pattern visible indicates reversal.
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How To Read Neowave Charts by Neowave ForecastHello Traders and Investors
My Name is Manish Singh and i am an expert in Neowave. In this chart i have describe the coding method to read my charts.
In Neowave Charts Degree labels used as intermediate, primary and cycle degree which is hard to understand by new user. Actually they understand 1 to 5 labels but they dont get the quiet idea in one look in which trend is this count is given. Thats why i came up with something simpler. So i am publishing this in the hope they everyone new trader easily understand the chart that it is in corection or in motive wave and for what time frame.
As they follow my charts, than with time they will understand which degree takes how much amount of time approximately to complete its structure and it surely does in learning the neowave.
Anyway friend kindly tell how you like the idea of this kind of coding.
I am also puting some examples of chart here.
1) This is the chart of nifty in which long term wave is in correction and you can judge with the help of medium wave degree that where is long term wave correction can end or actually new trend is going to start now or it become a failure. you can judge the chart pattern with is also as you can see this is an flat structure.
2) This is another chart of USD/JPY
In this chart i have used the old style of coding so that you can compare which one is easier to understand trend. As you can clearly understand with the help of count that it is going up but you were unable to catch that in which degree it is up or how long it will sustain there. Is there much bigger degree from the current one i am seeing.
How to avoid sudden market selling?Using #BTST (Buy today, Sell tomorrow) trades, you can avoid sudden market selling like today.
How?
- When you take BTST trades, you usually ride the momentum and are only in the market for a few minutes.
- For example, I typically buy stocks at 3:25 p.m. and sell them the following morning at 9:15 a.m., so technically I am only in the markets for 5-10 minutes every day, reducing my exposure and, consequently, the risk I face.
- No one can predict the next market downturn, but you can work to reduce your exposure to the risk of a downturn.
- We can adjust the amount of capital we put into BTST trades because we are taking new positions on a daily basis.
Because we take new positions every day with BTST trades, we can adjust the amount of capital we put into the markets based on the current market conditions.
- In comparison to BTST trades, swing trades can turn any profitable trade that you have been holding for many days upside down in a matter of minutes, and you must actively track them every day.
- Because we have specified targets with BTST, we can exit them early and avoid this risk as well.
'Inside' Story of 'Inside' Candle !!!! -> Definition of Inside Candle
As the name suggests, an inside bar chart pattern engulfs the inside of a large candle, some call it a mother bar. It’s a pattern that forms after a large move in the market and represents a period of consolidation.
The inside bar pattern can be a very powerful price action signal if you understand how to trade it properly. Matching lows and highs are acceptable, however, the inside bar’s range must not be outside of the mother candle by even 1 point.
-> Facts about Inside Candle
Inside bar pattern within the trading range (or shadow) of the preceding bar.
It is at least a two candlestick formation.
Mother candlestick can be either bullish(green) or bearish(red).
The inside bar chart pattern can be bullish or bearish.
Inside bar setup.
-> Procedure to trade Inside Candle
Entering: – When the price action completes an inside candlestick chart pattern, you should mark the low and high of the Inside Bar consolidation range. These two levels are used to trigger a potential trade.
Remember, the inside candle clues us into the eventual breakout and likelihood of a continuation outside the range in the direction of the break, however, it doesn’t give us information about the direction of the breakout through the range, prior to the actual move.
In simple terms, if the price action interrupts the range upwards, then you should go long. If the price action breaks the range downwards, then you should trade the short side.
Exiting: – Projecting the potential move with Inside Bar Breakouts can be challenging. Often inside bar trades can lead to a prolonged impulse move after the breakout, so employing a trailing stop loss after the price has moved in your favor is a smart trade management strategy.
Stop Loss: – In either case (If you are Long or short), your stop should be located below the bottom of the range, as stated in the picture below. There can be a buffer of 1% below the range.
-> Inside Candle helps to identify change in trend
The inside bar candlestick pattern is such a valuable tool because it tells us that the market is not as bullish or bearish as it was in the preceding period.
Being able to identify periods of market expansion and contraction will help any trader improve their odds of finding a winning trade because we know from history that expansion and contraction can only last so long.
When either of those market phases ends, the resulting moves can be explosive!
My OBSERVATION -> It is more effective if used with RSI i.e. when RSI is greater then 70 and inside candle is formed , that spot is best for shorting,
and if RSI is less then 30 and inside candle is formed , that spot is best to go long.
How to use "Bollinger Bands" indicatorHey everyone! We have guide to help learn "Bollinger Bands" indicator. This indicator work all type of trade example intraday,swing trade ,BTST trade,weekly trade,Long side trade.
What is a Bollinger Bands?
A Bollinger is techanical analysis tool and you apply this tool price chart three lines that compose .one simple moving average (middle band) and other upper and lower bands typically 2 standard deviations +/- from a 20 day simple moving average
what do Bollinger bands Tell You?
This total highly popular and many people believe this indicator
Price move to the upper band ,the more case 70 to 80 percent overbought and closer price move the lower band this case oversold the market
Upper Bands Bollinger Band ssee chart nifty 50 daily time frame 19 oct 2021 price face resistance and go down side and big fall
Lower Range Bollinger bands see chart nifty 50 daily time frame 29 jan 2021 price go down side lower band and support move upward.(lower band work support zone)
Narrow Range Example bollinger Bands See chart Nifty 50 daily time 28 july 2021 Bollinger band Narrow range this case go upside the breakout upside and price go down side to breakdown chart
How to use macd indicator in daily tradePreface
Macd indicator use to help them to make trading decisions postional trade. Every trader most of the use macd indicator .Because trader favourite indicator and what is your favourite indicator ? Write it in the comment.
Speciality of Macd indicator?
Macd Negative area(zone,cross)
see nifty 50 chart this date 21 jan 2022 macd move down side negative(zone,area)
Macd Postive area(zone,cross)
see nifty 50 chart this date 27 dec 2021 macd move up side postive(zone,area)
Alright, the operation start after creating an high 18604.45 date 19 oct 2021. Macd indicator indicate negative cross 22 oct 2021 and price consolidation three four candle and next candle breakdown. Most of the case macd indicator indicate price direction .This reason most of the people use this indicator .
Case Price move up direction 29 oct 2021 to 15 Nov 2021 this case Macd indicator negative zone move up side and again reverse down side 16 nov 2021 and price go down 18150 to 16855
Elliot wave Truncated ZigZag Real chartIt look like reliance chart daily time frame complete zig zag correction
Wave formation
Wave (A,B,C) Zig Zag patterns
Wave A internal wave count (1,2,3,4,5)
Wave B internal wave count (a,b,c)
Wave C internal wave count (1,2,3,4,5)
Rules and objectives:
The C-Wave is Smaller than 61.8% of the A-Wave
This represents the least frequent situation, when the c-wave exceeds the end of the previous a-wave, but is less than 61.8% of it. Once again, the golden ratio proves to be essential in deciding what kind of a pattern the market will form. Having said that, the logical thing to do is to measure the length of the a-wave, take 61.8% out of it, and project it from the end of the b-wave. Keep in mind that it is mandatory for the c-wave to end beyond the end of the previous a-wave. If the resulting 61.8% measured move is not enough for that, it means that the whole pattern is actually not a zigzag. This type of zigzag is really important, as it calls for a sharp retracement in the opposite direction, so by the time the price moves beyond the end of the a-wave, a powerful countertrend move should be expected. The distance to be covered is a minimum of 80% of the whole zigzag, and more often it goes beyond full retracement. As a result, we can safely say that this type of zigzag is one that should be rather faded by the time the price goes beyond the end of the a-wave.
Learn Elliot wave Zig Zag patternMahindra _Mahindra one hour current chart Zig zag correction
normal Zig zag correction show if wave A low not break see my chart learn Zig Zag correction find live chart
-> Daily chart Zig Zag patterns formation
it look like GABRIEL INDIA CHART Zig Zag correction
WAVE FORMATION
WAVE A ]show yellow colour circle --> in inner wave 5 wave sturture .i am count 1,2,3,4,5 in black colour
WAVE B show yellow colour circle --> in inner wave 3 wave sturture .i am count a,b,c in red colour
WAVE C show yellow colour circle ---> in inner wave 5 wave sturture .i am count 1,2,3,4,5 in black colour
Rules and objectives:
1--> zig correction first rule wave A down 5 wave sturture
2 --> Wave b up side move corrective phase 3 wave sturture
3--> Wave c direction again down side 5 wave sturcture
4--> Wave b upside not be more than 0.618% than wave A
5--> Wave-a should not retrace more than 61.8% of the previous Impulse wave of one larger degree.
6-->Wave-b should retrace at least 1% of wave-a.
7.--> Wave-c must move, even if only slightly, beyond the end of wave-a
see type of Zig Zag correction Line chart
(Elliot Wave ) How to find ZIG ZAG correction in Current chart GABRIEL INDIA
--> Daily chart Zig Zag patterns formation
it look like GABRIEL INDIA CHART Zig Zag correction
WAVE FORMATION
WAVE A ]show yellow colour circle --> in inner wave 5 wave sturture .i am count 1,2,3,4,5 in black colour
WAVE B show yellow colour circle --> in inner wave 3 wave sturture .i am count a,b,c in red colour
WAVE C show yellow colour circle ---> in inner wave 5 wave sturture .i am count 1,2,3,4,5 in black colour
Rules and objectives:
1--> zig correction first rule wave A down 5 wave sturture
2 --> Wave b up side move corrective phase 3 wave sturture
3--> Wave c direction again down side 5 wave sturcture
4--> Wave b upside not be more than 0.618% than wave A
5--> Wave-a should not retrace more than 61.8% of the previous Impulse wave of one larger degree.
6--> Wave-b should retrace at least 1% of wave-a.
7.--> Wave-c must move, even if only slightly, beyond the end of wave-a
see type of Zig Zag correction Line chart
Godrej Consumer Probably we have finished correction ?After making high it seems we are done with the FLAT correction (C) after a last leg 5 Red is finished as long as it doesn't extend much beyond 858.85 level.
AS the connect (B) Blue seems very shallow hence their is possibility of it making a bounce and forming new connector (c) blue which means we can even have one more leg Downside to complete the correction.
We will watch this stock how it performs.
S&P500 at decisive level S&P 500 1D Chart
Observation 1 - S&P 500 is presently at the lower band of the upward channel formed since April 2020.
Observation 2 – Focused view of the last 2 months shows, S&P 500 is seen taking support at 50% retracement level (Oct 4 Low – Nov 22 High).
Conclusion:
S&P 500 taking support at 50% retracement level on two months chart when it is at the lower band of 19 months old upward channel is indicating
a) Even with small down moves during the week, S&P 500 can still maintain its position within upward channel as the lower band is upward moving.
b) Decisive close below 4480 may accelerate the downfall. SP:SPX
Horn top and horn bottom patternHorn tops are formed in an uptrend and are separated by a week on weekly chart. It appears to be in 'H' shape.
Horn top pattern formation indicates bearish reversal. And there will be price spikes while formation, as seen in above chart.
Later, once the pattern is confirmed, short positions can be initiated when the price closes below the low of horn top candles. In above chart, short to be considered below 3850 and target will be 395 points (difference b/w high and low ie., 4245-3850), which is good 10%. SL can be considered as the horn top high, if it favors the RR.
In the same way horn bottom pattern will be formed, where again the pattern appears to be in H shape, during the downtrend.
Horn bottom pattern formation indicates bullish reversal.
In the above main chart, I have placed Tatamotors chart where I could identify horn bottom. After the pattern confirmation, longs position can be considered with same criteria for the target. SL can be considered as horn bottom low, if it favors RR.
Hope the above chart was useful with the information provided.
Happy Investing !
Chart made by the market particularly for Investors !The above weekly chart is of Infosys Ltd.
Here the stock price moves beautifully just in between the parallel channel, making higher highs and higher lows.
If one successfully manages to find the chart as above, he can simply buy at the lower channel trendline and sell at the upper channel trendline.
Yes, everything looks wow and amazing after the chart formation. As I do not have access to post chart image in my post here, I have tried my best to show the chart formation from Mar'20 till May'21, which you can see on the main chart, where the stock price moves in between the upper and lower channel trendline.
After identifying the channel pattern, if one had taken the position even on May'21, where the price touched and later bounced from lower trendline, would have made a good 28% in 3 months (Aug'21), where price touched the upper trendline.
Hope the above chart was useful with the information provided.
Happy Investing !
Agarwal IndAgarwal Industrial C is involved in the business activities of Manufacture of other petroleum (includes manufacture of petroleum jelly, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals). Company’s Total Operating Revenue is Rs. 833.29 Cr. and Equity Capital is Rs. 10.26 Cr. for the Year ended 31/03/2021. Agarwal Industrial Corporation Ltd. is a Public Limited Listed company incorporated on 13/01/1995 and has its registered office in the State of Maharashtra, India.
WaveTalks: Nifty-Can Bulls Bounce Back?- The Irregular Triangle 6th / 7th Oct2021
The index topped at 17882 this morning was a perfect behavior for the last leg downside in an irregular triangle updated in TradingView Author status / Last idea (add on comment).
6th Oct2021 – WaveTalks: Nifty-Irregular Triangle: ( Stops Above 17890 )
Irregular structures are those which is surpassed in the next leg as it happened for Index Nifty starting 17th Sep2021.
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Let us take a flashback tour for Index Nifty starting 17th Sep2021.
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Wave A or 1st Leg / Wave Downside- Starting at highs of 17792 on 17th Sep2021 (17792 to 17326 = 466 Points drop)
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Considering 17792 High on 17th Sep2021, as the start of the structure, slipped to 17326 as 1st leg downside & pushed upside in 2nd leg to new all-time highs of 17948 (From 17326 to 17948).
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Wave B or 2nd Leg / Wave Upside (17326 to 17948 = 622 Points Upside Rally)
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2nd leg crossed 17792 highs & made a new high at 17948 giving us 1st clue that some irregular structure could be unfolding next as all the moves so far from 17th Sep2021 was corrective in nature which was running across my mind at that moment.
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Wave C or 3rd Leg / Wave downside (17948 to 17452 = 496 Points drop)
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The fall from 17948 highs to 17452 was again corrective in nature. This time I became 100% sure that it is a 75-80% chance that Triangle could be unfolding next & I started putting my sleeves up in excitement as I could be getting 2 legs back to back if identified correctly.
This is all I was thinking like a trader.
The market pushed upside right from the zone 17450-17475 buying zone suggested as PRZ (Potential Reversal Zone) in the idea published to the TradingView community on 1st Oct2021 - Bullish Gartley
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Wave D or 4th Leg / Wave Upside (17452 to 17882 = 430 Points Upside Rally)
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This 4th Leg had to stop below 17948 Highs if the structure had to be correct as crossing above 17948 – this whole triangle scenario could have gone for a toss as structure invalidates.
Keeping that in the mind, I quickly updated all the followers in the last idea this morning before the market starts selling below zone 17800-17825 which was an important zone. I agree it was choppy as markets will never give you straight or easy moves & especially when the triangle is unfolding.
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Wave E or 5th Leg / Wave Downside (17882 to 17617 = 269 Points drop)
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This wave was choppy at the start but it was all controlled by the bears till the end of the day when Nifty made low @ 17613 & closed at 17646 @ 6th Oct2021
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Few things to note
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Our Final Target 17550-17575 is not completed so be careful as the Index may slip to these levels & take support of the Trendline rising upside connecting Wave- A(Bottom-17326) & Wave-C (Bottom- 17452) respectively.
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What Next?
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As a trader, we want to know what next. So here it is. When Triangle gets completed which is assumed to be sideways correction in the uptrend suggests that the next wave can be upside in an explosive manner which is seen or observed as a Thrust. In current scenario, thrust is expected upside for new highs or similar highs of 17948
So, Holding Levels 17452 which is Wave C – Bottom & 17326 which is Wave A – Bottom are key & critical level of support.
Till the time key & critical support holds we expect Bulls to come back & take the control or be in the driver’s seat next.
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Target Next
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Upside Nifty Index is open to travel minimum 17948 Highs & crossing above it will easily travel 18000+ A New All Time High.
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Note
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Always be careful at the tops as euphoria or crazy moves may put a trader in complacent zone & we forget all about risk management. Historically, It has been observed that crazy upside moves are followed immediately by opposite downside move which can be even bigger in size if happens.
All About 200MA |How to use it to take trade with example.Part-1NSE:HINDPETRO
All About 200 DMA. How to use it to take Mid/Long term trade.
1)What is 200DMA?
It is simple technical analysis tool that is an average of daily close price of last 200days/candles. It is used to smooth out the price and it will remove the intraday fluctuation noise.
200DMA == 200 Daily Moving Average
2)200DMA is the one of the main critical support/resistance that it will work in downtrend or in uptrend.
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How to use it and how to take trade?
200DMA as support:
If price is above 200DMA then it will work as Support and it is time to buy trade opportunity.
Please refer below chart: 1Day Time Frame
200DMA as resistance:
If price is below 200DMA then it will work as resistance and it is time to short/sell trade opportunity.
Please refer below chart: 1Day Time Frame
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Steps to follow to find and take Trade.
Step: 1
Need to find Chart pattern on Daily Time frame; such as bullish flag, triangle, rounding bottom, cup and handle head and shoulder etc…
Step: 2
If there is no clear pattern then Judge the price action. If it is trading in uptrend/downtrend parallel channel , If it is in accumulation , if it is in distribution etc….
Step : 3
Find Support and Resistance on Chart
Once these 3 steps are clear you have most of all to take mid/long term trade.
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NOW Let’s look at example.
I am taking HINDPETRO for example.
This Part 1 is with buy trade example.
Let’s take Step: 1
So, in below chart we found one pattern which is Cup and Handle Pattern.
So, our entry will be on breakout of it.
Please refer below chart: 1Day Time Frame
Step 2 is not needed as we already found Pattern.
Step 3 : Please refer below chart for Support and resistance level.
We can see that it is having immediate resistance at 190 level and major resistance at 200 Level. Breakout on 190 level will be quick buy till 200
But safe buy will be on breakout of 200 level with SL just below 190 level which will be 185 level for mid/long term trade.
Please refer below chart: 1Day Time Frame
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Now the main point about Target: What can be the Target. As our SL is decided at 185 level.
To decide our Target, we can go a back in history where earlier it had taken support at 200DMA and gave bullish rally.
So, if we see in month from May to Aug it rallied almost 94.65 points after it took last support in near range from 200DMA.
Please refer below chart: 1Day Time Frame
So, let’s take target of max 90 points from the level of 200DMA.
Level 179 was the level at which it took support from 200DMA and now adding 90points we can see 269/270 as our Target.
Let’s consider our buy trade entry at 205 level. And Our Target will be 270 and SL will be 185.
Hence our Risk Reward will be 65 (up move) / 20 (down move till SL) = 3.25 : 1
Please refer below chart: 1Day Time Frame
Even we can see that stock even move higher than our target. But to get higher target we will need to use FIB Retracement tool.
For this article let’s keep it till this.
Hope I made it easy to understand.
Part 2 for 200DMA short trade with example will be posted separately.
Do comment your doubt or suggestions.
**************this is for educational purpose only**************
Bullish Intraday Candlestick Patterns for StudyPatterns in Candlestick Charts
Candlestick charts are an excellent way of understanding the investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
cypher harmonic pattern #Learning #StockMarket #StockIdeas The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a profitable forex trading strategy.
It is not surprising that geometric patterns are used in forex charts. And the cypher harmonic pattern is a very good representation of that. The pattern is part of the harmonic trading patterns and is the most exciting harmonic pattern because it has the highest winning rate.
This is one of the few patterns not identified by Scott Carney. It was discovered by Darren Oglesbee, and though it is technically an advanced pattern formation, it is often linked with and traded together with harmonic patterns. It has particular Fibonacci measurements for every point within its structure.
How To Tweet a Chart Image Fast!We realize that sometimes you just want to get your charts out to people as soon as possible.
With the Tweet Chart Image feature, now you can!
As illustrated above, simply choose "Publish" then "Tweet Chart Image" and you'll be able to tweet the image out directly from your Twitter account to get that critical analysis to your followers fast!
What's that? You'd like to do this on your iPhone as well?
No problem, we got you.
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