【Ultimate Guide to Harmonic Patterns】——Msn Community
Is the market hard to trade? Is the capital evaporating? Is the mindset exploding? Learn (harmonic trading) head-on!!! ------------------------------------ In technical analysis of financial markets, harmonic patterns are a price structure analysis method based on the Fibonacci sequence. These patterns help traders predict future price movements by identifying specific points and proportional relationships on market price charts. Harmonic patterns emphasize the periodicity and symmetry of market prices and provide relatively accurate buy and sell signals. This article will detail four common harmonic patterns: Butterfly Pattern, Bat Pattern, Crab Pattern, and Shark (Gartley) Pattern. Each pattern has its unique structure and Fibonacci retracement and extension ratios. We will focus on analyzing the key points (X, A, B, C, D) of each pattern and the related Fibonacci ratios, especially the values of AC, XD, XB, and BD. These values are key to identifying and confirming harmonic patterns, and understanding them can help traders better grasp market dynamics and make more informed trading decisions.
When performing technical analysis, trend lines are a common technical tool used to depict the direction of price movement and potential support and resistance levels. In an uptrend, prices will continue to make higher highs and lower lows; while in a downtrend, prices will continue to make lower highs and lower lows. When the trend line breaks out, the easiest way to use it is to trade at the trend line. For example, in a downward trend, the price-performance ratio of high positions must be greater than that of low positions. Since it is always suppressed by the downward trend line, the price-performance ratio is the highest when the downward trend line is the shortest, and a breakthrough is a stop loss. On the contrary, in an upward trend, the price is constantly supported by the upward trend line, so the price-performance ratio of going long at the trend line is the highest, and if it falls below the stop loss.
--- Figure 1, Box Fluctuation + Daily EMA 144/169 Perspective, the price is gradually approaching the lower boundary around 2410, and one can start to layout spot positions.
--- The beginning of a life-saving escape starts only when the lower boundary of the mentioned range breaks. There is a large FVD gap on the left side, making it easy to experience a high hanging restoration. Once it breaks, long positions must stop loss, and after quickly recovering, a plan for upward movement will be devised (2B formation).
--- In the short term, 2655 serves as a key watershed; if the price is below this level, corrections can be made.
--- Low long positions can be chosen at 2445/2380.
--- Previously, it was said that 2545 is the support-resistance exchange level; why did it fail over the weekend? The main reason is the insufficient liquidity over the weekend; it is recommended to wait for liquidity to return before trading!
The weekend has shifted from its original downward trend to a consolidation phase, liquidity is about to return, it’s better to patiently wait for the direction to arrive.
--- The area around 106100-106800 need not be mentioned much, as long as the price has not recovered, there is still a risk of continued pullback!
--- Chart two shows the liquidation chart, there is a large amount of short liquidations around 106900, resonating with the aforementioned pressure, attention must be paid to the breakout situation.
--- Long positions at 103100/101500, the latter is crucial for survival.
The profit from the short position for Ethereum hedging has almost reached 500 dollars; most of it was sold off yesterday. A short-term long position incurred a loss, but overall it was a small profit.
--- I am very sorry to meet 2445 in this way. A few days ago, I shouted several times that 2445 could be traded, but it ended up flying away. When the price comes back, the order has been canceled.
--- Since it is a rebound, let's talk about targets.
2545 left-side support and resistance exchange position; 2655 support and resistance exchange position. Both are take-profit points for long positions.
--- For short positions, choose 2655/2720.
--- For low long positions, choose 2445/2380.
--- Looking at the daily EMA 144/169, this pullback basically stopped at the 'floor'.
#BTC has already been promoting the W-bottom for the 101st time.
Let's change our mindset during lunchtime; it has fallen to the right level, and the W-bottom has emerged. Is there still a need to short? Still the same saying: how can we define "low" without a drop, and how can we go "long"?
--- Since a rebound has occurred, let's first discuss the targets.
105300 on the left is a phase support; 106800 is a critical resistance point; 108400 is the point to initiate a decline. Any of these can serve as your take-profit level for long positions.
--- Can we short? For those who can, I tend to go for 106800/108400.
--- Two low-long entries, 103100/101500, the latter is particularly important, pay close attention!
👉 The 15-minute EMA 144/169 can be used to assess the strength of this round of correction.
When I opened my eyes in the morning, I found that gold $PAXG had risen by 1.7% and topped the gainers list. I immediately sensed something big was happening...
However, Bitcoin 103100/101500 and Ethereum 2445/2380 both have relatively key support levels, so I will observe during the day for any opportunities to enter long positions with a W bottom formation.
If it has dropped significantly, then it's time to prepare to change my thinking.
#ETH Obviously just want to hedge, but you take me to make money~
Yesterday's plan, a short hedging plan was set at 2850-2900, currently with a minimum profit of 130 dollars. Can't bear to sell the spot? Then just hedge!
---2720 is a target point for this round of correction, can reduce some short positions here.
---I think 2720/2655 are two places where we can bet on a new rise; if the latter breaks, we have to run.
---If 2655 breaks, then we basically have to go to 2590-2545 to look for demand; there should be a rebound opportunity here.
---2850-2900 was explained very clearly yesterday; this can be seen as the dividing line between bulls and bears above. In such an important place, it's just about breaking out to go long or being pressured to go short, very straightforward.
Yesterday there were two trades, whether it was shorting on the left side at 110400 or shorting after breaking below 108400 on the right side, both had good profits.
--- 106800 is an important support and resistance exchange level, when the price reaches here, shorts should take most of the profits first.
--- Two places for low longs, 106800/105300. (106800 seems to show signs of breaking down, watch two more candlesticks before proceeding)
--- After breaking down but quickly recovering above 106800, one can look to go long on the right side for a while.
My favorite structured trading is here, with references for opening and closing positions, as well as profit-taking and stop-loss references. Why not enjoy it~?
--- In a volatile market, trade within the range! Range (108400-108600) - 110400.
--- If it breaks through the top, the target is 112000, and it might even reach a new high; if it breaks the bottom, don’t panic.
--- If the lower bound is broken, look for opportunities on the right side, with targets at 106800/105300; both could serve as new starting points for an uptrend.
--- If a new high appears but the price cannot hold for long and falls back below 110400, I believe it’s time to look for short positions on the right side.
U.S. stocks are less than 2% away from a new high, and Bitcoin's synchronization rate is very high. Looking forward to it~
It would be great to leave the opportunity for the younger ones and enjoy a peaceful life myself.
--- Yesterday's opinion, after breaking 106500, I will temporarily give up all bearish thoughts, do you understand my good intentions~?
--- 110400 arrived as expected, this is also the big target after breaking 106500, since the target has been reached, let's quickly part ways with the long positions!
--- After breaking 110400, it basically has to go to a new high.
--- 106500-106800 used to be resistance, now it might become support. Look for a rebound here.
--- 105300 is a phase starting point and also a small-level bullish structure breaking point, pay attention to the support here. As long as the price is above this level, there is still an opportunity for upward movement!
Ethereum rose nearly $300 today. Although the short positions were stopped out, the altcoins have become much stronger under its influence. Overall, I'm still in a good mood.
---2720 Breakup Ridge has already broken through! I guess someone will ask me today if they can chase long on the right side. Personally, I want to wait for a stable position.
---2545/2590, no need to say much, the cost-effectiveness of going long at these two points is quite good.
---Short term, 2655, there should be a rebound opportunity here.
---Although I didn't plan to chase after the 2720 breakout, it doesn't mean the bullish trend is over; I'm just seeking stability.
A position that has been suppressed for a long time breaking through can be expected to have new targets. I will make a short position to hedge my spot at 2850-2900 above.
Wait until it gets there, and don’t trade otherwise.
#ETH In Cantonese, there is a term called 'ma ma dei', which means so-so.
---2545 has experienced a pullback again, whether it is important or not, is visible to the naked eye. If the price is below this level, it indicates a 'so-so' trend.
---2545/2590 I am still short, the former needs to reduce the position this time, while the latter can be directly placed as an order.
---Only when the downward trend line in Figure 1 is broken, will there be a future rise; otherwise, this round of market is just a 'so-so' rebound.
The last four-hour candle was just too full! Moreover, the long-pressing 106500 has already broken through. At this moment, I want to temporarily set aside the bearish viewpoint.
--- Continuation of strength, pay attention to whether 106500 can complete the support and resistance exchange. If it tests and holds, continue to look upward.
--- Continuation of weakness, wait for the test of 105300. This is the opening price of the strong demand pillar and a phase support, important!
--- After breaking below 105300, then consider opening a short position plan.
--- The maximum target for this round of increase is 110400, with a small target of 108800.
#ETH is still relatively easy to trade, with volatility better than Bitcoin.
Previously, I provided target levels of 2545/2580, and at that time, my exact words were, "There must be selling pressure here, and it is normal to see a pullback." Now that it has reached these levels, we will act accordingly.
--- 2545 remains valid, and this level can serve as the dividing line for the strength and weakness of this market trend.
--- After breaking the rising trend line (channel), it is highly likely to retest 2445, providing an opportunity for a rebound.
--- Daily EMA 144/169 is opened for observation, and 2380 may form a support level.
--- 2100 is the boundary line between bulls and bears. 2670 is the point that breaks the bearish structure.
#BTC remains unchanged, while everything else changes.
Waiting for liquidity to return.
--- Is the rebound over? It's actually easy to judge. You should be familiar with the point 106500; I previously referred to this as "Separation Ridge." The price is getting very close to this point, so remember to break up with your long positions in time.
--- At 106500, you can lightly short on the left side, with a stop loss for the breakout, targeting 105300/103900/101500 in batches. If 106500 is strongly reclaimed, it is necessary to temporarily abandon all bearish views.
--- Plan for long positions at 101500.
--- The second chart shows a liquidation chart; there was a strong liquidation of long positions around 103700, which almost resonates with support. Perhaps there will be a chance for a rebound today?
Still the same saying, if it doesn’t drop, how can we call it 'low', how can we do 'long'?
--- Near the current price, I have no trading plans, I prefer to slowly formulate a take-profit plan for long positions.
--- 101500 is still the most worthwhile position to go long in this round of market. Although the spike went a bit deep, it hasn’t effectively broken down on the four-hour or higher levels, so I am still willing to go long at low prices.
--- The breakthrough of the descending trend line in the first chart gives your long position a chance for structure; I suggest taking partial profits first and waiting for the breakout.
--- Will there be a second test of 101500 forming a W bottom? I don’t know, but when it gets here, I must go long.
--- Strengthening is not difficult, just break through 106500, otherwise this round of rebound is just a rebound. I even want to short again at 106500~
--- On the short term, 104300 is a structural breakdown point; the closer the price gets here, the more you can plan rebound orders. After breaking down, you need to wait for opportunities.
--- 101500 can formulate a long position plan; this is very important!
106666 is a position to judge market strength. It has nearly reached this level today. Upon reaching the watershed, remember to part ways with your orders in a timely manner!
--- Near the current price, I have no trading desire. Since it's a breakup, I'll patiently wait for the next one.
--- If it can't break through 106500, the market won't stop falling, and the best scenario would be just oscillation.
--- 103800 is a position for potential rebounds given yesterday's suggestion; I will participate again. If it touches again, I will only participate with a light position.
--- 101500 is very important; place a light long position on the left side, and if it breaks, it will incur losses. After breaking, it is necessary to find a new starting point for the rise, with potential levels at 97800/93666.