Charts And Patterns Flashcards
Technical indicators
EMA
BOLLINGER BANDS
VOLUME
MACD
RSI
ICHIMOKU CLOUD
FIBONACCI RETRACEMENT INDICATOR
BITCOIN DOMINANCE
Bullish chart patterns
Symmetrical triangle Ascending triangle Inverse head and shoulders Cup and handle Falling wedge
Rectangle Flag Pennant Double bottom Triple bottom
Bearish chart patterns
Symmetrical triangle Descending triangle Head and shoulders Inverse cup and handle Rising wedge
Rectangle Flag Pennant Double top Triple top
The golden cross
When the 50 day or 20 day MA moves crosses the 200 MA
The death cross
When the 50 day or 20 day MA moves below the 200 day MA
Bullish candle stick patterns
Bull
Bearish candlestick patterns
Bear
Sentiment analysis
Trending
The hammer
Price closes at top 1/4 of range
Lower shadow or wick is 2 or 3 times the length of the body
Shows the market opened sellers took control and pushed price lower.
At the selling climax huge buying pressure stepped in and pushed the price higher
The buying pressure is so strong it closed above the opening price.
Bullish reversal candlestick shows rejection of lower prices
Bullish engulfing
Strong buying pressure stepped in and closed above the previous candles high
Hammer is usually a bullish engulfing pattern on the lower timeframe
The piercing pattern
Closes within the body of the previous candle. Half way
Not as strong and bullish engulfing
Tweezer bottom
Occurs after a decline in price
First candle shows rejection of a lower price. Red
Second candle retests the low of the previous but closes higher.
Sellers tried twice to push price lower but both times met resistance
Difficulty trading lower after two attempts and likely to heat higher
Morning start 3 candle
First candle bearish close
Second candle has a small range
Third candle closes aggressively higher (more than 50 % of the first candle
First candle shows sellers are in control and price closes higher
Second candle there is indecision. Markets both selling and buying. Equal pressure
Third candle buyers won the battle
In short the morning start tells you sellers are exhausted and the buyers are momentarily in control
Trading using candle stick patterns
Don’t trade in isolation
If the market is rendering higher wait for a pullback to support
When it’s at support then wait for a bullish reversal pattern
Shooting star
Bearish candle opposite of the hammer
Bearish engulfing
Big red dildo
Dark cloud cover
Bearish version of the piercing pattern
Tweezer top
Bearish version of the tweezer top
Difficulty trading higher after two attempts and likely to trade lower
Evening start
Bearish version of the shooting star
First candle bullish close
Second candle small range
Theirs candle closes aggressively lower
Buyers are exhausted and sellers momentarily in control
Trading with the bearish candles
Wait for a test of resistance and then look for bearish candlesticks
Candlesticks
The length of the wick shows the price rejection
Ratio of the wick and body shows the whole story
Indecision candles
Spinning top- small body in the middle of wick
Doji - both buying and selling
Dragonfly doji - bullish looks like a long T
Gravestone doji - bearish - Looks like an upside down T
Support and resistance
Dynamic
Market behaviour
Accumulation
Advancing
Distribution
Declining
Trend lines
3 touches constitute a valid trend line
Should be spread out
Longer lines more powerful price will react more forcefully to breaching them
The MACD
moving average convergence divergence
MACD line - upward or downward momentum- market trend.
Calculated by closing price subtracting the 12 from the 26 ema
Signal line - 9 day EMA of the macd line.
Histogram - graphical representation of the macd and signal line.
VWAP
volume weighted average price
Bullish when prices above
Bearish when prices below
Sum of price x volume divided by total volume
Average price = high x low x closing price divided by 3
Multiply that price by volume
