Ranges are defined when price movement is contained between two horizontal lines, a parallel support and resistance. Range breakouts can be interpreted in many ways by traders. A range breakout from the lower support line of the structure could show a downtrend momentum, while a breakout from the upper line could indicate the price moving …
Symmetrical and Broadening Triangles are created by the convergence or divergence of two inclined trendlines, and the movement of price between the trendlines. Symmetrical Triangle The convergence of an upwards trendline and a downwards trendline towards each other creates a Symmetrical Triangle. The upwards trendline forms a support and the downwards trendline is a resistance …
There are many formations of Triangles in the Geometric pattern family; Ascending, Descending, Broadening, Symmetrical. The definition of an Ascending or Descending trendline comes from the structure having one horizontal trendline and one inclined trendline on an uptrend or downtrend. Ascending Triangle In an Ascending Triangle, the peaks of swings in price movement can be …
The Geometric Pattern family contains patterns formed by combinations of price action movement in relation to one or more trendlines. The Channel is a widely-used Geometric pattern. It is formed by two parallel trendlines where the price action is contained within the bounds of the two lines. Ascending Channel In an ascending Channel, the price …
The AB = CD is a pattern based on Fibonacci retracements between only two legs. The AB=CD pattern has significantly fewer conditions but is another powerful price reversal indicator. Bullish AB = CD The Bullish configuration between the two legs follows one of two ratio sequences: Move CD is below move AB BC is a …
Belonging to the Geometric and Trendline pattern family, the Wolfe Wave does see some similarity -but is not strictly a part of – the Harmonic pattern family. The definitions of Wolfe Wave patterns are similar to many members of the Harmonic patterns as it is based on the relation of the price legs to each …
The harmonic 5-0 is a variation on normal harmonic patterns as the initial impulse XA is preceded by a stronger origin move OX. Bullish 5-0 OX is an origination move to create the point X AB is a retracement in the range 1.13 – 1.618 of XA BC then follows as a 1.616 – 2.24 …
The Three Drive Pattern comes with the formation of three successive tops or bottoms. The retracement levels of the tops and bottoms must match the Fibonnaci ratios. Bullish Three – Drives to a Bottom Three successive drives to the bottom which follow Fibonacci levels define the Bullish configuration of this pattern. After the final completion …
Bullish Butterfly The Butterfly has a completion price of D where a potential price movement reversal can be expected. The Bullish Butterfly is defined by the following Fibonacci ratios: Move AB is 0.786 of the upwards impulse XA BC can be either (Case a.) a 0.382 or (Case b.) 0.886 retracement of AB In Case …
Bullish Alt-Bat The Alt-Bat harmonic pattern is a variation on the definition of a traditional Harmonic Bat. The Bullish Alt-Bat pattern is defined by the following strict series of Fibonacci ratios between each leg: Move AB is a 0.382 retracement of the first upwards impulse XA BC can be either (Case a.) a 0.382 or …