The beauty of understanding time For instance you did your analysis on the 4H time frame and you placed your instant order. You’ll notice that even with the smallest lot size, you will still be loosing a lot if your trade goes wrongly. But with your knowledge of timeframe analysis you learn to go to your lower time frames to get your entry therefore reducing your risk.
So in conclusion, top down analysis teaches you to analyze on a high time frame (depending on the kind of trader you are) and enter the trade on a lower timeframe to reduce your risk and boost your peace of mind ✌️
What are chart patterns?
Chart patterns are graphical presentation of certain price movements in the market
Chart patterns are graphical presentation of certain price movements in the market
They are categorized into 3;
Continuation patterns
Reversal patterns
Neutral patterns
Continuation patterns
Reversal patterns
Neutral patterns
Continuation patterns includes
1. Pennant
2. Rectangle
3. Flag patterns
As the name implies, we look for these patterns to get entries in to an existing market trend(either up or down trend)
1. Pennant
2. Rectangle
3. Flag patterns
As the name implies, we look for these patterns to get entries in to an existing market trend(either up or down trend)
Reversal patterns includes;
1. Head and shoulders/ reverse head and shoulders
2. Double top/Double bottom
3. Falling/ rising wedge
4. Triple top/ triple bottom
These patterns occur at the end of a trend, indicating possible reversal in the current trend
1. Head and shoulders/ reverse head and shoulders
2. Double top/Double bottom
3. Falling/ rising wedge
4. Triple top/ triple bottom
These patterns occur at the end of a trend, indicating possible reversal in the current trend
Neutral patterns includes
1. Ascending triangle/Descending triangle
2.Rectangle
3. Expanding triangles
4. Symmetrical triangle
These patterns do not necessarily show reversal or continuation rather they are neutral. They can either signify continuation of reversal
1. Ascending triangle/Descending triangle
2.Rectangle
3. Expanding triangles
4. Symmetrical triangle
These patterns do not necessarily show reversal or continuation rather they are neutral. They can either signify continuation of reversal
You would notice that the Rectangle pattern appeared as both neutral and continuation pattern
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
Head and Shoulders
A head and shoulders pattern is a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak
(shoulder). A “neckline” is drawn by connecting the lowest points of the two peaks. The slope of this line
can either be up or down. Typically, when the slope is down, it produces a more reliable signal.
A head and shoulders pattern is a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak
(shoulder). A “neckline” is drawn by connecting the lowest points of the two peaks. The slope of this line
can either be up or down. Typically, when the slope is down, it produces a more reliable signal.
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
Double Top
A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks
which are formed when the price hits a certain level.
After hitting this level, the price will bounce off it slightly, but then return back to test the level again. If the
price bounces off of that level again, then you have a DOUBLE top!
A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks
which are formed when the price hits a certain level.
After hitting this level, the price will bounce off it slightly, but then return back to test the level again. If the
price bounces off of that level again, then you have a DOUBLE top!
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
The double bottom is also a trend reversal formation, but this time we are looking to go long instead of
short. These formations occur after extended downtrends when two valleys or “bottoms” have been formed.
short. These formations occur after extended downtrends when two valleys or “bottoms” have been formed.
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
Rising Wedge
A rising wedge is formed when price consolidates between upward sloping support and resistance lines.
Here, the slope of the support line is steeper than that of the resistance. This indicates that higher lows are
being formed faster than higher highs. This leads to a wedge-like formation, which is exactly where the chart pattern gets its name from!
A rising wedge is formed when price consolidates between upward sloping support and resistance lines.
Here, the slope of the support line is steeper than that of the resistance. This indicates that higher lows are
being formed faster than higher highs. This leads to a wedge-like formation, which is exactly where the chart pattern gets its name from!
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
Falling Wedge
Just like the rising wedge, the falling wedge can either be a reversal or continuation signal.
As a reversal signal, it is formed at a bottom of a downtrend, indicating that an uptrend would come next.
As a continuation signal, it is formed during an uptrend, implying that the upward price action would resume.
Just like the rising wedge, the falling wedge can either be a reversal or continuation signal.
As a reversal signal, it is formed at a bottom of a downtrend, indicating that an uptrend would come next.
As a continuation signal, it is formed during an uptrend, implying that the upward price action would resume.
TriscoTech Fx/Crypto
Reversal patterns includes; 1. Head and shoulders/ reverse head and shoulders 2. Double top/Double bottom 3. Falling/ rising wedge 4. Triple top/ triple bottom These patterns occur at the end of a trend, indicating possible reversal in the current trend
Triple Top
A triple top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks
which are formed when the price hits a certain level.
After hitting this level, the price will bounce off it slightly, but then return back to test the level again. If the
price bounces off of that level again, then you have a Triple top!
A triple top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks
which are formed when the price hits a certain level.
After hitting this level, the price will bounce off it slightly, but then return back to test the level again. If the
price bounces off of that level again, then you have a Triple top!
TriscoTech Fx/Crypto
Continuation patterns includes 1. Pennant 2. Rectangle 3. Flag patterns As the name implies, we look for these patterns to get entries in to an existing market trend(either up or down trend)
Pennant
There are two types of pennant
Bearish Pennant
A bearish pennant is formed during a steep, almost vertical, downtrend. After that sharp drop in price,
some sellers close their positions while other sellers decide to join the trend, making the price consolidate
for a bit.
There are two types of pennant
Bearish Pennant
A bearish pennant is formed during a steep, almost vertical, downtrend. After that sharp drop in price,
some sellers close their positions while other sellers decide to join the trend, making the price consolidate
for a bit.
TriscoTech Fx/Crypto
Continuation patterns includes 1. Pennant 2. Rectangle 3. Flag patterns As the name implies, we look for these patterns to get entries in to an existing market trend(either up or down trend)
Bullish Pennant
Bullish pennants, just like its name suggests, signals that a bullish trend is about to continue. This means that the sharp climb in price would resume after that brief period of consolidation, when bulls gather enough energy to take the price higher again.
Bullish pennants, just like its name suggests, signals that a bullish trend is about to continue. This means that the sharp climb in price would resume after that brief period of consolidation, when bulls gather enough energy to take the price higher again.
TriscoTech Fx/Crypto
Continuation patterns includes 1. Pennant 2. Rectangle 3. Flag patterns As the name implies, we look for these patterns to get entries in to an existing market trend(either up or down trend)
RECTANGLE
They are of two types
Bearish rectangle
Bullish rectangle
A rectangle is a chart pattern formed when price is bounded by parallel support and resistance levels, a rectangle exhibits a period of consolidation or indecision between buyers and sellers as they take turns throwing punches but neither has taken over.
The price will “test” the support and resistance levels several times before eventually breaking out. From there, the price could trend in the direction of the breakout, whether it is to the upside or downside.
They are of two types
Bearish rectangle
Bullish rectangle
A rectangle is a chart pattern formed when price is bounded by parallel support and resistance levels, a rectangle exhibits a period of consolidation or indecision between buyers and sellers as they take turns throwing punches but neither has taken over.
The price will “test” the support and resistance levels several times before eventually breaking out. From there, the price could trend in the direction of the breakout, whether it is to the upside or downside.