Pattern recognition is a vast field and can have many innovative ideas or unexplored techniques. This article sheds some light on a type of pattern that can be applied in a different way. What is a Pattern? A market pattern refers to recurring and recognizable formations or trends in financial markets, such as stock markets, commodity…
Fair Value Gaps are, besides stop runs and Orderblocks, one of the most known concepts in Retail Trading. Many fail to use them correctly by putting too much focus on each individual Candle or Gap that looks like a Fair Value Gap. By doing that, they often ignore the context of the general chart and the Higher Time Frame. I personally make use of them daily, but only in context with other patterns and price levels, the HTF bias. Since there’s no “right” way to trade and to use them effectively it’s a bit of an art to learn how and when to use them, but if you know what to look for and how other traders are using them in a way that helps them maximize their wins and minimize their losses, you’ll get a grasp of how you can use them yourself in your trading and your individual trading setup much quicker. Definition & Concept What are Fair Value Gaps? Fair Value Gaps are imbalances in price where one side…
What are Stop Runs? Stop Runs are price levels where price likes to return after creating relatively equal highs. In this post, I’ll show you how to apply this concept and go into detail about why I think of this concept to be superior to many other retail trader patterns like the Double Tops/Bottoms. Especially…
Hello Tradebuddies, in this article I’ll show you how to work with the classic ABCD. Basically, the ABCD pattern is the basis of the harmonic pattern and is referred to as a Fibonacci trading strategy. Such a pattern arises from price movements and corrections and places these in a Fibonacci relationship with each other. If…
Updates Salesforce: Let’s start with the last stock analysis I posted on TakeProfit, Salesforce. This trade resulted in a 26.56% drop or $76.67 move per share at the lowpoint. As outlined beforehand, we were expecting lower prices in Salesforce with an ideal entry, as almost always, at the 50% level. Educational Note: You also gotta…
Following up with the trade and chart drawings from yesterday, we can see that we did in fact go above the BSL outlines in yesterday’s edition, which would be a move of $1059 or 1.6% within 12 hours per Bitcoin. After taking that buyside liquidity and Target 2 of the ZigZag pattern, we broke down,…
In this blog I’ll go over recent market updates, crypto, stocks and whatever I find interesting from a chart technical perspective. In #3 you can find a Bitcoin Live Trade, showcasing Risk Management, Entry techniques and much more. I believe it to be important for the beginner to get a broad understanding of how to…
When entering a trade, it is important not to go in blindly, but to plan the trade based on a strategy, with a trading plan and appropriate risk management: In today’s post, I will go into more detail about the Stop Loss (part of any efficient risk management), how it works, what types of Stops…
As Elliott Wave theory is often quite abstract for the beginner, we have decided to work a lot with pictures rather than writing huge novels, which there are more than enough of already. By following this principle, your understanding of the subject will be much better. You will soon realize that only the visualization of…
Applying Simple Pattern Recognition on the RSI The ABCD pattern is a well known configuration with many variations. This article presents the simple version and applies it on the RSI in order to generate trading signals. The Simplified ABCD Pattern and the RSI An ABCD formation is a 4-point structure where the last point signals…