3 Patterns Every Trader and Investor Should Know Flashcards
Price Action
Price Action
TRADE ALL MARKETS THE SAME ! Look for Patterns (Price Action)
TRADE ALL MARKETS THE SAME ! Look for Patterns (Price Action)
What are 3 common Pattens?
BO, PB, Reversal
Small PB Bull Trend - Many Bull Bars Closing on Their Highs
Small PB Bull Trend means PBs are shallow & usually on last a few bars
Strong Bull BO on Higher TF
ONLY BUY
Unusual so unsustainable and a Buy Climax, Bulls will keep Buying until Reversal
Many see strong Rally & cannot figure out how to get long, they are afraid to have a WIDE Stop far below, it is better to Buy on a Stop above H of previous Bar
Trade Small and use correct Stop OR, Buy option Calls(lower risk trade)
RAISE STOP AFTER EACH STRONG BO
Small PB Bull Trend - Many Bull Bars Closing on Their Highs
Small PB Bull Trend means PBs are shallow & usually on last a few bars
Strong Bull BO on Higher TF
ONLY BUY
Unusual so unsustainable and a Buy Climax, Bulls will keep Buying until Reversal
Many see strong Rally & cannot figure out how to get long, they are afraid to have a WIDE Stop far below, it is better to Buy on a Stop above H of previous Bar
Trade Small and use correct Stop OR, Buy option Calls(lower risk trade)
RAISE STOP AFTER EACH STRONG BO
Small PB Bull Trend: Many Small Bodies & Prominent Tails
Bars are small and tails are prominent but PBs are shallow & only lasting 1-3 bars
Looks like will soon convert to TR but never does
MANY GAPS, Sign of EAGER BULLS
ALL Bull Trends constantly form wedge Tops, they usually fail and create small PBs
Better to ONLY BUY!
Small PB Bull Trend: Many Small Bodies & Prominent Tails
Bars are small and tails are prominent but PBs are shallow & only lasting 1-3 bars
Looks like will soon convert to TR but never does
MANY GAPS, Sign of EAGER BULLS
ALL Bull Trends constantly form wedge Tops, they usually fail and create small PBs
Better to ONLY BUY!
Small PB Bull Trend = Buy for ANY reason
Buy above Bull Bars in a PB
Buy Close of Bull Bar Closing Near its Highs
Buy Bear Closes
Buy @ EMA
Buy Below Prior Bar, especially if Bull Bar
*After each BO to a new High, raise stop to below bottom of that leg up!
Small PB Bull Trend = Buy for ANY reason
Buy above Bull Bars in a PB
Buy Close of Bull Bar Closing Near its Highs
Buy Bear Closes
Buy @ EMA
Buy Below Prior Bar, especially if Bull Bar
*After each BO to a new High, raise stop to below bottom of that leg up!
High 1 Bull Flag: One Small Leg Down in Bull Trend or TR
High 1 Bull Flag: One Small Leg Down in Bull Trend or TR
High 2 @ TR Top - 2 Legs Down in Bull Trend/TR
High 2 @ TR Top - 2 Legs Down in Bull Trend/TR
Wedge Bull Flag - 3 Legs Down in Bull Trend/TR
*In a High 1/2/3 Trade Buys above a Bull Bar increases the probability of the Trade
Wedge Bull Flag - 3 Legs Down in Bull Trend/TR
*In a High 1/2/3 Trade Buys above a Bull Bar increases the probability of the Trade
H1 & H2 & H3 Buy Setups - PB in Bull Trend/TR
H1, H2, and H3 are PBs in a Bull Trend or TR
Beginners should look for STRONG BULL TREND
*Higher probability of profit when buying above bull bar that closes near its high
*Once Bar goes above prior bar in PB, PB is a High 1 Buy Signal Setup(H1 Bull Flag)
H1 & H2 & H3 Buy Setups - PB in Bull Trend/TR
H1, H2, and H3 are PBs in a Bull Trend or TR
Beginners should look for STRONG BULL TREND
*Higher probability of profit when buying above bull bar that closes near its high
*Once Bar goes above prior bar in PB, PB is a High 1 Buy Signal Setup(H1 Bull Flag)
Is every DB a H1 or a H2?
Every DB is a H2
H1 Bull Flag - *Once Bar goes above prior bar in PB, PB is a High 1 Buy Signal Setup (H1 Bull Flag)
H1 Bull Flag - *Once Bar goes above prior bar in PB, PB is a High 1 Buy Signal Setup (H1 Bull Flag)
If Bears Twice try to selloff and fail, they will give up, it creates a High 2 Bull Flag (H2)
Buy above Bull Bar since bears will Exit with a LOSS
If Bears Twice try to selloff and fail, they will give up, it creates a High 2 Bull Flag (H2)
Buy above Bull Bar since bears will Exit with a LOSS
Big High 2 Bull Flag - Opening Reversal Up from EMA
Big High 2 Bull Flag - Opening Reversal Up from EMA
a Wedge Bottom = a Sell Climax; it usually ATTRACTS Profit Taking and Bulls will Buy for a Swing Up
a Wedge Bottom = a Sell Climax; it usually ATTRACTS Profit Taking and Bulls will Buy for a Swing Up
Wedge Bottom - 3 Legs Down in Bear Channel; Wedge Bottom = Sell Climax
Having at least one OVERSHOOT in the Wedge is GREAT for the Wedge Context
Bears who Buy Back shorts typically wait for 2 Legs up before selling again, they give bulls a chance to create a Trend Reversal
Wedge Bottom - 3 Legs Down in Bear Channel; Wedge Bottom = Sell Climax
Having at least one OVERSHOOT in the Wedge is GREAT for the Wedge Context
Bears who Buy Back shorts typically wait for 2 Legs up before selling again, they give bulls a chance to create a Trend Reversal