fibonacci retracement

/Tag: fibonacci retracement

ABCD pattern | #3 tips to get better accuracy with the chart pattern

ABCD chart pattern is yet another gift of Fibonacci ratios to the field of technical analysis. It is a blend of time, price and shape. When all three converge at one point, it forms an electric move. Hence, the pattern also goes by the name Lighting bolt (AB=CD) pattern. What is an ABCD (AB=CD) chart pattern? The AB=CD pattern consists of two legs. The first leg being the AB and the second leg being the CD. When both these leg of movements have the same length (price), shape and the time duration to complete their move, then it completes [...]

ABCD pattern | #3 tips to get better accuracy with the chart pattern2019-05-11T14:52:17+00:00

Harmonic Patterns: The Complete Mini guide

Harmonic Patterns were initially proposed by H.M. Gartley in the year 1932. The trading fraternity, at that point, shrugged it off. However, when Scott Carney provided deep insights into harmonic patterns in his book, “Harmonic Trading”, the trading community welcomed it with both hands. There are several types of harmonic patterns -- AB=CD pattern, Gartley pattern, Butterfly pattern, Bat pattern, Shark pattern, Crab pattern and Cypher pattern. What are Harmonic Patterns? Harmonic patterns are trend reversal patterns. They are based on the Fibonacci retracement and extensions and geometric structures. The harmonic patterns provide traders the potential reversal zone (PRZ), [...]

Harmonic Patterns: The Complete Mini guide2019-05-11T14:55:43+00:00

Elliot Wave: Corrective waves | Zig Zag pattern | Triangle patterns

The most complicated part of Elliott wave is the corrective waves. There are many forms of corrective waves which are difficult to comprehend at the hindsight. There are three classifications of corrective waves- zig zag pattern, flat wave and triangle patterns. Defining the Corrective waves Before delving deeper into the types of corrective waves, let's have a clear understanding about corrective waves. The waves 2 and 4 are corrective waves with respect to waves 1 and 3 respectively. The wave b is a corrective wave since it corrects the wave a. Consequently, the wave ‘abc’ is the corrective wave [...]

Elliot Wave: Corrective waves | Zig Zag pattern | Triangle patterns2018-12-20T10:35:29+00:00

Elliott Wave Theory: Mystery around Elliot wave demystified

Ralph Nelson Elliott discovered the Elliott wave theory in the 1920’s, but it didn’t attract attention at that time. It was brought to limelight by Robert Prechter when he predicted the bull market of the 1980’s (both in stock and gold) with the Elliot wave. The Elliot wave theory comprises three aspects pattern, ratio and time, along with impulse waves and corrective waves. Elliot wave: Pattern The Elliott wave pattern suggests that any market trend (bull or bear) is of the form 5-3 wave. Impulse waves move in the direction of the trend and corrective waves push against the [...]

Elliott Wave Theory: Mystery around Elliot wave demystified2018-11-01T17:38:16+00:00

Support and Resistance: Can the indicators do the trick for you?

The concept of support and resistance is beyond the paradigm of chart patterns, indicators or even the technical analysis. It is the classic case of supply and demand acting at specific price points. But are they bound to remain the same ever, at the exact spot? Let's visit the basics first, before delving deeper into the subject for your answer. Support and Resistance Support is the area in which maximum demand for an asset class exists. The buyers outnumber the sellers in the support areas. On the flip side, the area which has maximum supply is the resistance. Likewise, [...]

Support and Resistance: Can the indicators do the trick for you?2019-04-05T11:13:14+00:00